House Bills

HB 1019: Common construction wage
Summary: Repeals the common construction wage statute. Repeals related statutes superseded by the repeal of the common construction wage statute. Makes conforming amendments.
AFP Position: Support
Reason: AFP Indiana supports efforts to make taxpayer-funded infrastructure projects more affordable and eliminate market-distorting wage laws that increase labor costs beyond market-based levels. This bill will save significant taxpayer dollars, allowing that money to be invested more directly into projects from which they stand to benefit.
Bill Status: Passed House; Referred to Senate
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HB 1044: Rockville food and beverage tax
Summary: Authorizes the town of Rockville to adopt a town food and beverage tax. Provides that the tax rate may not exceed 1%. Specifies the purposes for which the food and beverage tax may be used.
AFP Position: Oppose
Reason: AFP Indiana opposes efforts to increase the burden of government on our state’s families. Rockville residents already pay enough in taxes to fund the essential services of local government. Instead of asking taxpayers for more, Rockville should seek to reform and cut spending. Food and beverage taxes are unnecessary and regressive, and the legislature should not permit them in Rockville.
Bill Status: Passed House; Referred to Senate
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HB 1109: Payment of monthly pension benefits
Summary: Provides that members and beneficiaries of any public pension fund administered by the Indiana public retirement system may receive monthly benefits only by direct deposit or another method approved by the board of trustees of the Indiana public retirement system. Repeals a similar but more narrowly applicable section concerning methods of paying monthly benefits to members and beneficiaries of the public employees’ retirement fund and the teachers’ retirement fund.
AFP Position: Support
Reason: AFP Indiana supports measures to make government simpler and more cost-effective. This bill creates a uniform system that will save money and simplify the process, benefitting taxpayers and workers alike.
Bill Status: Passed House; Referred to Senate

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HB 1142: Tax issues
Summary: Specifies that the legislative services agency (rather than the commission on state tax and financing policy or its successor committee, under current law) shall before October 1 of each year conduct the review, analysis, and evaluation of all tax incentives under House Enrolled Act 1020-2014, according to a schedule developed by the legislative services agency. Requires the legislative services agency to submit the results of the review, analysis, and evaluation to the legislative council and the interim study committee on fiscal policy. Requires the interim study committee on fiscal policy to hold an annual public hearing after September 30 and before November 1 of each year at which: (1) the legislative services agency presents its review, analysis, and evaluation of tax incentives; and (2) the interim study committee receives information concerning tax incentives. Requires the interim study committee on fiscal policy to submit to the legislative council any recommendations made by the interim study committee that are related to the legislative services agency’s review, analysis, and evaluation of tax incentives prepared under this section. Requires the legislative services agency to provide information to be used by the general assembly to make certain determinations regarding tax incentives. (Current law requires the legislative services agency to make these determinations.) Requires the legislative services agency to prepare and publish a tax expenditure report before November 1 of each even numbered year. Specifies the required elements of the tax expenditure report. Repeals the home insulation deduction and the solar powered roof vent and fan deduction.
AFP Position: Support
Reason: AFP Indiana opposes all market-distorting tax incentives. They represent corporate welfare that allows government, not consumers, to pick winners and losers. This bill adds badly-needed transparency and accountability to the process, a necessary step toward eliminating crony incentives entirely.
Bill Status: Passed House; Referred to Senate

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HB 1264: Local government internal controls
Summary:
Requires the legislative body of a local government to ensure appropriate training of personnel concerning the internal control system. Requires the attorney representing a local government to annually certify that certain internal controls of the local government are in place. Specifies certain reporting and followup related to a report of misappropriation of local government funds. Prohibits the department of local government finance approval of a local government budget until receipt of certification that applicable training has been completed.
AFP Position: Support
Reason: Providing greater transparency and financial controls on local governments is a prudent move to protect taxpayers.
Bill Status: Passed House; Referred to Senate

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HB 1270: Horse racing matters
Summary:
Provides that the minimum salary per diem for a member of the Indiana horse racing commission equals the maximum per diem amount that an employee of the executive branch of the federal government receives. Removes the prohibition that certain funds distributed to the horsemen’s association cannot be used for lobbying purposes. Changes the appointment process for members of breed development advisory committees and the process to appoint new members. Changes the distribution of funds to promote horses and horse racing.
AFP Position: Oppose
Reason: The state of Indiana should not be in the business of subsidizing the horse racing industry. Moreover, dollars collected for the promotion of horse racing should never be used for lobbying purposes.
Bill Status: Passed House; Referred to Senate
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House Bill 1273: Indianapolis Soccer Stadium
Summary: Marion County economic development. Establishes an additional professional sports development area (APSDA) in Marion County. Requires the metropolitan development commission to establish a tax area before July 1, 2017, according to the procedures for the establishment of an economic development area. Authorizes capital improvements to be made. Provides that the APSDA may include the site or future site of a facility or complex of facilities that includes a hotel, a multipurpose stadium, and a facility used to manage and operate the professional team that would use the stadium. Requires participation in contracts for all capital improvements by minority, women and
veteran owned business enterprises. Permits the adoption of a 10% Marion County admissions tax rate for any event held in the APSDA. Provides that, if adopted, the 10% admissions tax also applies until 2020 to any event held in a facility that hosts professional soccer events and that is not located in the existing professional sports development area. Allows up to $5,000,000 of state revenue to be captured each year, for 32 years, from the APSDA. Requires the owner of a professional soccer franchise that would be the primary tenant of the facility or complex of facilities constructed in the tax area, the professional soccer franchise, or the professional soccer league in which the professional soccer franchise competes (or any combination of these) to guarantee at least 50% of the amount that is financed for the facility or complex of facilities that includes a soccer stadium. Provides that if the capital improvement board, the county convention and recreational facilities authority, and one more sublessees have entered into an agreement concerning a capital improvement in the APSDA: (1) the metropolitan development commission shall expand a tax increment financing allocation area in Marion County; and (2) subject to the policies and guidelines governing the metropolitan development commission, deposit at least $10,000,000 from property taxes allocated to the commission into a neighborhood stabilization fund during the 20 years after the parties enter into the agreement. Specifies the purposes for which these revenues may be used and the area in which these revenues may be used. Provides that upon approval by the legislative body of a county containing a consolidated city, the county executive may submit an application to the budget committee for review and recommendation to the budget agency, requesting the designation by the budget agency of the White River revitalization district (district). Provides that: (1) the income tax increment and the sales tax increment for a district shall be deposited during each state fiscal year into a state incremental tax financing fund established for the district; and (2) this incremental tax revenue shall be distributed to the county for use within the district for specified purposes. Provides that not more than $5,000,000 in tax revenues may be captured by the district over the life of the district.
AFP Position: Oppose
Reason:Without any independent study or analysis, supporters of an Indianapolis soccer stadium are seeking to retain tax dollars generated at their place of business for the purposes of financing the construction of a new stadium. Without any guarantee of future revenue, taxpayers are the ones who seem to ultimately hold the risk of this venture. In a free market, consumers (taxpayers) should be the ones making the decision on what is essential to their community.
Status: Passed House; Referred to Senate

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HB 1349: Various Tax Matters
Summary: Eliminates the double direct test for the gross retail tax exemption for various transactions involving various types of tangible personal property. Specifies that the exemption applies if the tangible personal property is acquired for direct use or consumption in the production of tangible personal property when the person acquiring the property is occupationally engaged in the business of producing tangible personal property. Eliminates various adjustments to income for purposes of determining Indiana adjusted gross income. Eliminates various income tax exemptions, deductions, and credits.
AFP Position: Support
Reason:
Reduces the complexity in the tax code by removing tax credits which ultimately benefit a small number of people at the cost of others. AFP-IN supports a simpler tax code with lower rates for a broader base of taxpayers.
Status: Passed House; Referred to Senate
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HB 1351: Restrictions on rulemaking
Summary:
Voids state administrative rules, guidelines, and other policies or standards that are not specifically authorized by state statue or do not implement a federal requirement. Establishes the office of regulatory accountability in the legislative services agency to review administrative rules for compliance with regulatory goals specified by the general assembly.
AFP Position: Support
Reason: This is an important measure to protect Indiana taxpayers from excessive regulatory rulemaking.
Bill Status: Passed House; Referred to Senate

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HB 1425: Court fees
Summary:
Increases the automated record keeping fee collected after June 30, 2015, from $5 to $9. Provides that 100% of the automated record keeping fee is distributed to the auditor of state for deposit in the state user fee fund. Increases the document storage fee from $2 to $4. Makes technical corrections and conforming amendments.
AFP Position: Oppose- monitoring 
Reason:
The increase in court fees outlined in this legislation are projected to total almost $5 million annually. This increase is without any explanation or details on how the additional dollars will ultimately be spent in a way that benefits taxpayers.
Status: Passed House; Referred to Senate

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HB 1481: Public retirement plans
Summary:
Provides that after December 31, 2015, an eligible employee of the state becomes a member of the public employees’ defined contribution plan (plan). Provides that an eligible employee of a political subdivision that participates in the plan becomes a member of the plan. Provides that after December 31, 2015, a political subdivision may not begin or expand participation in the public employees’ retirement fund. Provides that the employer of an individual who is a member of the plan shall match the individual’s contribution to the plan to a limit of 7.5% of the individual’s compensation. Grants cost of living adjustments in 2015 and 2016 for certain members of the: (1) public employees’ retirement fund; (2) Indiana state teachers’ retirement fund; (3) state police pre-1987 benefit system; and (4) state police 1987 benefit system.
AFP Position: Support
Reason: State pensions are a huge liability for taxpayers. HB 1481 makes reforms that will reduce the burden for Hoosier taxpayers.
Bill Status: Passed House; Referred to Senate

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HB 1485: Local option income taxes
Summary:
Replaces the county adjusted gross income tax, the county option income tax, and the county economic development income tax with a local income tax. Provides for the introduction of legislation in the 2016 legislative session to make related amendments to implement the local income tax.
AFP Position: Support
Reason: This is a common sense measure to bring some transparency and clarity to local income taxes. Streamlining these as much as possible is in the service of taxpayers.
Bill Status: Passed House; Referred to Senate
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 Senate Bills

SB 25: Aircraft license excise tax
Summary: Eliminates the provision in current law that automatically reclassifies an aircraft in an aircraft dealer’s inventory from the status of “aircraft inventory” to the status of “property of a nondealer” after the aircraft dealer has held the aircraft in inventory for 18 months.
AFP Position: Support
Reason: Removes a burdensome and unnecessary tax for aircraft dealers.
Status: Passed Senate; Referred to House

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SB 26: Coverage of prescription eye drops
Summary: Requires that certain state employee health plans, policies of accident and sickness insurance, and health maintenance organization contracts must cover refills and additional units of prescription eye drops under specified conditions.
AFP Position: Oppose
Reason:
 Creates an additional cost of the taxpayers when state employees should be bearing these costs.
Status: Passed Senate; Referred to House

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SB 118: Property tax appeals
Summary: Provides that affected taxing units are entitled to notice of a property tax assessment appeal.
AFP Position: Support
Reason:  Provides additional information to taxpayers.
Status: Passed Senate; Referred to House

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SB 252: Use of breed development funds to promote horse racing
Summary: Requires the Indiana horse racing commission (IHRC) to promote the horse racing industry in Indiana. Provides that promotional costs may be paid from the breed development funds. Increases the amount of money in the breed development funds that may be used for IHRC expenses from 2% to 4%. Provides that not more than 50% of that amount may be used to pay costs incurred to promote the Indiana horse racing industry. Requires the IHRC to annually report and account for its promotional actions and expenditures.
AFP Position: Oppose
Reason:  Taxpayers should not be subsidizing the horse racing industry in Indiana.  Funds should not be going to special interests such as this but rather general projects and education.
Status: Passed Senate; Referred to House

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SB 316: Clark County tax increment financing study
Summary: Establishes the Clark County tax increment financing study commission (commission). Requires the commission to: (1) study the structure and operation of each existing tax increment financing district in Clark County; (2) make recommendations for best practices concerning tax increment financing methods that ensure that all units of local government that are affected by the establishment of a tax increment financing district have meaningful input in the approval process; and (3) make recommendations for the development of a comprehensive land use and thoroughfare plan for Clark County that is transparent and practical. Provides that the commission consists of the following members: (1) One member from each authorizing body that has authorized at least one existing tax increment financing district in Clark County, as selected by the authorizing body for the tax increment financing district. (2) Three members selected by the Clark County fiscal body. (3) One member selected by the Clark County auditor. (4) One individual selected by the One Southern Indiana Chamber of Commerce. Requires the commission to prepare a final report and present the report at a public meeting.
AFP Position: Support
Reason:  Provides transparency and potential savings for the taxpayers and citizens of Clark County. Status: Passed Senate; Referred to House

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SB 378: Renewable energy standards
Summary: Requires an electricity supplier to supply a certain percentage of its total electricity supply from renewable energy resources. Establishes the renewable energy resources fund to receive penalties paid by electricity suppliers that fail to supply electricity from renewable energy resources. Continuously appropriates money in the fund. Requires the utility regulatory commission to adopt guidelines to assist electricity suppliers that participated in the CEPS program in complying with the new renewable energy standards. Repeals IC 8-1-37 (voluntary clean energy portfolio standard (CEPS) program).
AFP Position: Oppose
Reason:  Renewable energy standards increase costs for all consumers. By mandating switching from cheaper traditional energy sources to more expensive renewable sources prices will undoubtedly increase.  This will hurt struggling Indiana families the most since they spend the greatest percentage of their income on energy.
Status: Introduced and assigned to committee.

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SB 379: Public transportation corporations
Summary: Allows the legislative body of Monroe County and the Bloomington public transportation corporation (corporation) to expand the corporation’s service area to include the entire county by adopting substantially identical ordinances. Allows the fiscal body of Monroe County to adopt an ordinance to impose a county economic development income tax rate to fund the expansion. Provides that the rate must be at least 0.1% but not more than 0.25%.
AFP Position: Oppose
Reason:  This bill would increase taxes on hard working families who are still struggling to recover from the economic recession.
Status: Introduced and assigned to committee.

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SB 384: Taxation of electronic cigarettes
Summary: Imposes a tax on electronic cigarettes at a rate of $0.0083 per milligram of nicotine per one milliliter of consumable product. Deposits the revenue from the tax in the state general fund.
AFP Position: Oppose
Reason:  E Cigarettes have proved to be an effective measure to help those attempting to quit smoking. Rather than discouraging their use in an attempt to grow the coffers; the state government should let the free market work to help those quit smoking.
Status: Introduced and assigned to committee.

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SB 436: State and local taxation
Summary: Provides that if a taxpayer has personal property subject to assessment in more than one township in a county or has personal property that is subject to assessment and that is located in two or more taxing districts within the same township, the taxpayer shall file a single tax return with the county assessor. Provides a property tax exemption for taxpayers with less than $20,000 of total business personal property in a county. Removes the requirement in current law that such an exemption is effective in a county only if adopted by the county income tax council. Provides that the 30% valuation floor does not apply to Pool 3 equipment and Pool 4 equipment for property tax assessment purposes.
AFP Position: Support
Reason:  Simplifies the tax system for personal property decreasing compliance costs for taxpayers. Furthermore, it essentially eliminates the personal property tax for those with less than $20,000 of total business personal property.
Status: Passed Senate; Referred to House

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SB 441: Eliminates certain tax deductions and credits
Summary: Eliminates the World War I veteran property tax deduction for property taxes imposed for an assessment date after 2015. Eliminates the enterprise zone investment deduction for qualified investments made after May 1, 2016. Eliminates the double direct test for the gross retail tax exemption for various transactions involving various types of tangible personal property. Specifies that the exemption applies if the tangible personal property is acquired for direct use or consumption in the production of tangible personal property when the person acquiring the property is occupationally engaged in the business of producing tangible personal property. Eliminates various add backs for purposes of determining Indiana adjusted gross income. Provides that business income is all income apportionable to the state under the Constitution of the United States. Eliminates various income tax deductions and exemptions. Broadens the add back to Indiana adjusted gross income related to intercompany interest expenses. Eliminates various income tax credits. Provides for a tax amnesty program. Makes technical corrections and conforming amendments.
AFP Position: Support
Reason:  Eliminates a number of unneeded and costly tax credits. This will save taxpayers money and see that funds are spent on projects for the general good as opposed to special interests.
Status: Passed Senate; Referred to House

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SB 478: Public Transportation Corporation Fund
Summary: Transportation funding. Provides that a redevelopment commission of a municipality may provide revenue to a public transportation corporation from property tax proceeds allocated to the redevelopment commission in a tax increment financing area.
AFP Position: Oppose

Reason: Would allow property tax proceeds may be provided to “a public transportation corporation fund” as opposed to funding the fund through transportation related revenue.
Status: Passed Senate; Referred to House

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SB 492: Various pension matters
Summary: Provides that an individual who is a first time full-time employee of the state or a participating political subdivision after June 30, 2015, becomes a member of the public employees’ defined contribution plan unless the individual makes an explicit election to become a member of the public employees’ retirement fund (PERF). (This reverses the presumption under current law.) Provides that a political subdivision may participate in the public employees’ defined contribution plan.
AFP Position: Support
Reason: Correctly places first-time public employees into a defined contribution plan unless they express otherwise. This practice will save taxpayer dollars.
Status: Passed Senate; Referred to House

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SB 567: Redevelopment commissions and authorities
Summary: Requires a redevelopment commission or redevelopment authority to hold an organizational meeting on a day in January that is not a Saturday, a Sunday, or a legal holiday and that is their first meeting day of the year. Requires the treasurer of a redevelopment commission to report annually to the redevelopment commission before March 1 (rather than reporting to the fiscal body of the unit before July 1, under current law).
AFP Position: Support
Reason: Provides greater transparency and information for taxpayers concerning redevelopment commissions.
Status: Passed Senate; Referred to House