PROTECTING TAXPAYERS
Internet Sales Tax
HB 1007
Summary: Provides that for purposes of the Indiana sales and use tax law, a “retail merchant engaged in business in Indiana” includes any retail merchant who: (1) makes retail transactions in which a person acquires personal property or taxable services for use, storage, or consumption in Indiana; and (2) enters into an arrangement with any person, other than a common carrier, to facilitate the retail merchant’s delivery of property to customers in Indiana by allowing customers to pick up property sold by the retail merchant at a place of business maintained by the person in Indiana. Specifies that a retail merchant may be required to collect and remit sales or use taxes if the retail merchant conducts activities in Indiana on behalf of the retail merchant that are significantly associated with the retail merchant’s ability to establish and maintain a market in Indiana. Provides that a retail merchant is presumed to be engaged in business in Indiana if an affiliate of the retail merchant has substantial nexus in Indiana and certain additional conditions are satisfied. Provides that a retail merchant is presumed to be engaged in business in Indiana if the retail merchant enters into an agreement with one or more residents of Indiana under which the resident directly or indirectly refers potential customers to the retail merchant, if the cumulative gross receipts from the sales by the retail merchant to customers in Indiana who are referred to the retail merchant by all residents is greater than $10,000 during the preceding 12 months.
AFP Position: Oppose
Reason: Americans for Prosperity opposes tax increases. HB 1007 would place unnecessary burden on business, job creators, and consumers.
Status:Passed the House, Moves to the Senate 2/4/13
Public Mass Transportation
HB 1011
Summary: Specifies that a county or city council (other than the city-county council of Marion County) may elect by ordinance to provide revenue to a public transportation corporation from the city’s or the county’s distributive share of county adjusted gross income taxes, county option income taxes, or county economic development income taxes. Authorizes the establishment of a metropolitan transit district by specified eligible counties through local public questions. Authorizes the metropolitan transit district to: (1) construct or acquire any public transportation facility; (2) provide public transportation service by operating public transportation facilities; and (3) issue bonds and otherwise incur indebtedness. Authorizes the Indiana finance authority to issue bonds and use the proceeds to acquire any obligations issued by a metropolitan transit district. Provides that in a county that has approved the local public question, an additional county economic development income tax (CEDIT) rate of not more than 0.3% may be imposed to pay the county’s contribution to the funding of the metropolitan transit district. Specifies that the CEDIT rate may not exceed the recommended tax.
AFP Position: Oppose
Reason: Repeated studies have shown that mass transit projects are unsustainable. These projects require multiple tax increases, and continued government spending to continue operating. As a result, the burden of maintaining mass transit operations is carried by increased user fees and tax hikes.
Status: Public hearing held 1/23/13- View AFP testimony, Passed Ways and Means Committee 2/13/13
Individual Out of State Health Insurance
HB 1013
Summary: Allows an accident and sickness insurer that is licensed in certain other states, and is not licensed in Indiana, to issue or deliver an individual policy of accident and sickness insurance to an individual resident of Indiana without complying with other Indiana insurance law.
AFP Position: Support
Reason: Opening up the health insurance market place across state lines spurs competition, and will result in more choices along with competitive pricing of insurance plans.
Status: In Committee
Financial Institutions Tax Rate Reduction
HB 1018
Summary: Reduces the financial institutions franchise tax rate over four years, from 8.5% for taxable years beginning before January 1, 2014, to 6.5% for taxable years beginning on or after January 1, 2017.
AFP Position: Support
Reason: Cutting taxes on job creators encourages economic growth. In addition, financial institutions should not be required to pay a higher rate than most other corporations in Indiana whose tax rates are near 6.5%.
Status: Passed the House, Moves to the Senate 2/21/13
Partial Unemployment Benefit
HB 1023
Summary: Establishes a partial unemployment benefit for an individual who accepts work that pays less than the individual’s unemployment benefit
AFP Position: Support
Reason: With so many Hoosiers already out of work, it is important that government programs are in place to inhibit job growth, not prevent it by offering benefits that outweigh the advantages of finding a job. This bill would allow unemployed the Hoosiers the opportunity to freely search for work without the worry that obtaining a job would ultimately be detrimental to their financial situation.
Status: In Committee
Referenda for Projects and School Levies
HB 1032
Summary: Provides that a referendum on a controlled project may be held only at a general election, if the preliminary determination to issue bonds or enter into a lease for the controlled project is made after June 30, 2013. Provides that a referendum for a referendum tax levy of a school corporation may be held only at a general election, if the resolution to hold the referendum is adopted after June 30, 2013.
AFP Position: Support
Reason: Moving ballot questions to the General Election will allow more voters to become informed and take part in the process.
Status: In Committee
Cloverdale Food and Beverage Tax
HB 1070
Summary: Cloverdale food and beverage tax. Authorizes the Cloverdale town council to impose a 1% food and beverage tax on taxable food and beverage transactions in the town. Specifies the uses to which receipts from the food and beverage tax may be applied.
AFP Position: Oppose
Reason: This opens the door for other cities and towns to request the same taxing authority over taxpayers.
Status: Passed the House, Moves to the Senate 2/21/13
Motor Fuels
HB 1324
Summary: Increases from 10% to 20% the amount by which the price of a clean energy vehicle may surpass the price of a similarly equipped vehicle that is not a clean energy vehicle for the purpose of determining whether a state agency must purchase or lease the clean energy vehicle. Provides an income tax credit for placing into service a natural gas powered vehicle that has a gross vehicle weight rating of more than 33,000 pounds. Provides for the collection and remittance of the state gross retail tax (by changing the definition of “special fuel”) and the special fuel tax on natural gas, butane, and propane used as a motor fuel. Provides that a transaction involving alternative fuel acquired: (1) after December 31, 2013, and before January 1, 2017; and (2) to fuel a motor vehicle used in providing public transportation for persons or property; is not exempt from the state gross retail tax. Provides for the imposition of the motor carrier fuel tax upon alternative fuels by imposing the existing rates on the gasoline gallon equivalents of natural gas sold. Excludes certain alternative fueled vehicles from the alternative fuel decal law. Increases the maximum weight limitation for a vehicle that uses natural gas as a motor fuel by 2,000 pounds.
AFP Position: Oppose
Reason: Americans for Prosperity opposes subsidies to promote specific energy sources whether traditional or alternative. We believe the free market is best at determining which energy options will meet the needs of consumers.
Status:Passed the House, Moves to the Senate 2/21/13
Jackson County Adjusted Gross Income Tax
HB 1472
Summary: Extends the period during which Jackson County may impose the county adjusted gross income tax (CAGIT) at a rate of 1.1% to obtain additional revenue for the operation and maintenance of a jail and juvenile detention center until December 31, 2023. (Current law terminates the period during which the 1.1% CAGIT rate may be imposed in Jackson County on July 1, 2011.)
AFP Position: Oppose
Reason: House Bill 1472 extends a tax increase onto the residents of Jackson County. If county officials would like additional local revenue, they should proceed with the normal process of requesting these funds via public referendum.
Status: Heard in House Ways and Means Committee 2/5/13
Public Transportation Corporate Tax Levies
SB 21
Summary: Specifies that the maximum permissible property tax levy of a public transportation corporation increases when the municipality in which it is located annexes additional territory.
AFP Position: Oppose
Reason: Americans for Prosperity in general opposes tax increases. SB 21 would possibly encourage municipalities to annex additional territory simply to increase property tax levies for public transportation purposes.
Status: In Committee
Deputy Attorney Generals in Washington, D.C.
SB 36
Summary: Permits the Indiana attorney general to employ deputies or assistants to review and monitor federal regulations and other actions that may affect Indiana’s legal interests, and to review legislation and take other actions to protect the legal interests of the state pursuant to the attorney general’s statutory duties. Specifies that the deputies or assistants serve at the pleasure of the attorney general. Provides that the attorney general shall coordinate its study of legislation with other states, and report to the legislative council, the governors, and certain persons concerning the attorney general’s opinion with respect to this legislation. Repeals an obsolete provision.
AFP Position: Support
Reason: Strengthens Indiana’s ability to monitor and follow pending federal legislation and regulations which may harmfully affect Hoosier taxpayers and small businesses.
Status: Passed the Senate, Moves to the House 2/12/13
Marion County Auto Rental and Admission Taxes
SB 90
Summary: Provides that any increase after January 1, 2013, and before March 1, 2013, in the Marion County supplemental auto rental excise tax rate or the Marion County admissions tax rate may not continue in effect after February 28, 2023.
AFP Position: Support
Reason: Sunsets local tax increases recently imposed by Marion County.
Status: Passed the Senate, Moves to the House 2/12/13
Motorsports Investment District
SB91
Summary: Motorsports investment district. Provides that the Indiana finance authority (authority) may adopt a resolution establishing a motorsports investment district. Specifies that the budget committee shall review and make a recommendation to the budget agency regarding a resolution establishing a motorsports investment district. Provides that if a resolution establishing a motorsports investment district is approved by the budget agency, state sales tax and state individual income tax generated in the district shall be allocated to the authority. Specifies that the maximum amount of covered taxes that may be captured from the motorsports investment district and allocated to the authority in a state fiscal year may not exceed $5,000,000. Provides that covered taxes may be captured from the motorsports investment district only for 20 years. Provides that the authority may issue bonds for the purpose of obtaining money to pay the cost of improving, constructing, reconstructing, renovating, acquiring, or equipping structures and capital improvements within a qualified motorsports facility.
AFP Position: Oppose
Reason: Special deals between government and private businesses only encourages others to seek the same offers from government at the cost to taxpayers. This bill amounts to a taxpayer funded subsidy for a private enterprise.
Status: Passed the Senate, Moves to the House 2/19/13
Indiana Economic Development Transparency
SB 162
Summary: Specifies for purposes of the public records law that information provided to receive an economic development incentive from the Indiana economic development corporation (IEDC), the ports of Indiana, the Indiana state department of agriculture, the Indiana finance authority, an economic development commission, a local economic development organization, or a governing body of a political subdivision with industrial, research, or commercial prospects (an “economic development incentive provider”) must be available for inspection and copying, if the information is provided after the incentive recipient executes the financial incentive agreement. Specifies that negotiations with an economic development incentive provider terminate on the date the incentive recipient executes the financial incentive agreement. Prohibits the IEDC from granting any incentive that is measured by any activity that occurred before the date the incentive recipient executes the financial incentive agreement. Requires a person that applies for an economic development incentive with the IEDC to include a representation of the applicant’s expected financial investment in Indiana. Requires an IEDC incentive recipient to annually provide job and financial investment information that corresponds to the recipient’s representations as an applicant. Specifies that the information that an applicant and incentive recipient files with the IEDC compliance officer to detail the applicant’s compliance with the incentive agreement must be available for inspection and copying under the public records law.
AFP Position: Support
Reason: As citizens of Indiana, it is important that we be able to monitor government stewardship of our tax dollars. SB 162 would allow economic development incentive negotiations, receipts, and results to become public record.
Status: Passed out of Committee 1/24/13
Homestead Assessed Value Cap
SB 201
Summary: Limits the annual increase in assessed value of a homestead to 5% unless: (1) ownership of the homestead changes during the year; or (2) the increase results from physical changes to the homestead.
AFP Position: Support
Reason: Protects homeowners from unfair assessments and skyrocketing property taxes.
Status: In Committee
Redevelopment Commissions and Authorities
SB 325
Summary: Provides that a redevelopment commission may not enter into any obligation payable from public funds without first obtaining the approval of the legislative or fiscal body of the unit that established the commission. Specifies that the approving ordinance or resolution must include certain items. Provides that any agreement by a redevelopment commission to: (1) make payments for real property for a term exceeding three years; or (2) pay a purchase price for real property that exceeds $5,000,000; is subject to prior review (instead of approval) by the legislative body of the unit. Specifies that any sale, exchange, transfer, grant, donation, lease, or other disposal of real property by a redevelopment commission is subject to prior review (instead of approval) by the legislative body of the unit if the value of the real property exceeds $5,000,000. Provides that if a redevelopment commission acquires or sells real property, the redevelopment commission shall include in its annual report a description of the real property and the terms under which the real property was acquired or sold. Specifies that a redevelopment commission may hold an executive session for a discussion of strategy with respect to the acquisition, lease, or sale of real property by the redevelopment commission. Provides that a redevelopment commission and a department of redevelopment are subject to oversight by the legislative body of the unit, including review by the legislative body of annual budgets. Specifies that a redevelopment commission and a department of redevelopment are subject to the same laws, rules, and ordinances of a general nature that apply to all other commissions or departments of the unit. Specifies that a redevelopment commission, a department of redevelopment, and a redevelopment authority are subject to audit by the state board of accounts and covered by the public meeting and public records laws. Requires a redevelopment commission to provide to the legislative body of the unit at a public meeting all the information supporting the action the redevelopment commission proposes to take regarding the sale, transfer, or other disposition of property. Provides that if the amount of excess assessed value determined by the commission is expected to generate more than 200% of the amount of allocated tax proceeds necessary to carry out the commission’s plan, a determination of the amount of the excess available to other taxing units by the commission must be approved by the legislative body of the unit. Permits the legislative body of the unit to modify the commission’s determination with respect to the amount of excess assessed value. Requires the treasurer of a redevelopment commission outside Indianapolis and the secretary-treasurer of a redevelopment authority outside Indianapolis to report quarterly to the fiscal officer of the unit that established the commission or authority. Provides that the Indianapolis controller is the fiscal officer of the redevelopment commission and redevelopment authority in Indianapolis. Authorizes the Indianapolis controller to obtain financial services on a contractual basis.
AFP Position: Support
Reason: Provides greater accountability for redevelopment commissions and strengthens a county’s elected fiscal body, giving Hoosier taxpayers a voice in the activities of redevelopment commissions.
Status: Passed the Senate, Moves to the House 2/12/13
Excise and Wheel Tax
SB 389 / HB 1117
Summary: Permits a county income tax council to impose a motor vehicle excise surtax and a wheel tax for a county. (Current law permits the county council to impose these taxes.) Specifies that the body that initially imposes the excise surtax and wheel tax is the body that is empowered to increase, decrease, or rescind the excise surtax and wheel tax. Increases the maximum wheel tax rate that may be imposed from $40 to $100 (This part of the bill was removed in committee).
AFP Position: Oppose
Reason: SB 389 opens the door to new tax increases for Hoosier taxpayers. This bill allows a new county body to impose additional tax increases.
Status: Passed the Senate, Moves to the House 1/29/13
PROTECTING TAXPAYERS
Internet Sales Tax
HB 1007
Summary: Provides that for purposes of the Indiana sales and use tax law, a “retail merchant engaged in business in Indiana” includes any retail merchant who: (1) makes retail transactions in which a person acquires personal property or taxable services for use, storage, or consumption in Indiana; and (2) enters into an arrangement with any person, other than a common carrier, to facilitate the retail merchant’s delivery of property to customers in Indiana by allowing customers to pick up property sold by the retail merchant at a place of business maintained by the person in Indiana. Specifies that a retail merchant may be required to collect and remit sales or use taxes if the retail merchant conducts activities in Indiana on behalf of the retail merchant that are significantly associated with the retail merchant’s ability to establish and maintain a market in Indiana. Provides that a retail merchant is presumed to be engaged in business in Indiana if an affiliate of the retail merchant has substantial nexus in Indiana and certain additional conditions are satisfied. Provides that a retail merchant is presumed to be engaged in business in Indiana if the retail merchant enters into an agreement with one or more residents of Indiana under which the resident directly or indirectly refers potential customers to the retail merchant, if the cumulative gross receipts from the sales by the retail merchant to customers in Indiana who are referred to the retail merchant by all residents is greater than $10,000 during the preceding 12 months.
AFP Position: Oppose
Reason: Americans for Prosperity opposes tax increases. HB 1007 would place unnecessary burden on business, job creators, and consumers.
Status:Passed the House, Moves to the Senate 2/4/13
Public Mass Transportation
HB 1011
Summary: Specifies that a county or city council (other than the city-county council of Marion County) may elect by ordinance to provide revenue to a public transportation corporation from the city’s or the county’s distributive share of county adjusted gross income taxes, county option income taxes, or county economic development income taxes. Authorizes the establishment of a metropolitan transit district by specified eligible counties through local public questions. Authorizes the metropolitan transit district to: (1) construct or acquire any public transportation facility; (2) provide public transportation service by operating public transportation facilities; and (3) issue bonds and otherwise incur indebtedness. Authorizes the Indiana finance authority to issue bonds and use the proceeds to acquire any obligations issued by a metropolitan transit district. Provides that in a county that has approved the local public question, an additional county economic development income tax (CEDIT) rate of not more than 0.3% may be imposed to pay the county’s contribution to the funding of the metropolitan transit district. Specifies that the CEDIT rate may not exceed the recommended tax.
AFP Position: Oppose
Reason: Repeated studies have shown that mass transit projects are unsustainable. These projects require multiple tax increases, and continued government spending to continue operating. As a result, the burden of maintaining mass transit operations is carried by increased user fees and tax hikes.
Status: Public hearing held 1/23/13- View AFP testimony, Passed Ways and Means Committee 2/13/13
Individual Out of State Health Insurance
HB 1013
Summary: Allows an accident and sickness insurer that is licensed in certain other states, and is not licensed in Indiana, to issue or deliver an individual policy of accident and sickness insurance to an individual resident of Indiana without complying with other Indiana insurance law.
AFP Position: Support
Reason: Opening up the health insurance market place across state lines spurs competition, and will result in more choices along with competitive pricing of insurance plans.
Status: In Committee
Financial Institutions Tax Rate Reduction
HB 1018
Summary: Reduces the financial institutions franchise tax rate over four years, from 8.5% for taxable years beginning before January 1, 2014, to 6.5% for taxable years beginning on or after January 1, 2017.
AFP Position: Support
Reason: Cutting taxes on job creators encourages economic growth. In addition, financial institutions should not be required to pay a higher rate than most other corporations in Indiana whose tax rates are near 6.5%.
Status: Passed the House, Moves to the Senate 2/21/13
Partial Unemployment Benefit
HB 1023
Summary: Establishes a partial unemployment benefit for an individual who accepts work that pays less than the individual’s unemployment benefit
AFP Position: Support
Reason: With so many Hoosiers already out of work, it is important that government programs are in place to inhibit job growth, not prevent it by offering benefits that outweigh the advantages of finding a job. This bill would allow unemployed the Hoosiers the opportunity to freely search for work without the worry that obtaining a job would ultimately be detrimental to their financial situation.
Status: In Committee
Referenda for Projects and School Levies
HB 1032
Summary: Provides that a referendum on a controlled project may be held only at a general election, if the preliminary determination to issue bonds or enter into a lease for the controlled project is made after June 30, 2013. Provides that a referendum for a referendum tax levy of a school corporation may be held only at a general election, if the resolution to hold the referendum is adopted after June 30, 2013.
AFP Position: Support
Reason: Moving ballot questions to the General Election will allow more voters to become informed and take part in the process.
Status: In Committee
Cloverdale Food and Beverage Tax
HB 1070
Summary: Cloverdale food and beverage tax. Authorizes the Cloverdale town council to impose a 1% food and beverage tax on taxable food and beverage transactions in the town. Specifies the uses to which receipts from the food and beverage tax may be applied.
AFP Position: Oppose
Reason: This opens the door for other cities and towns to request the same taxing authority over taxpayers.
Status: Passed the House, Moves to the Senate 2/21/13
Motor Fuels
HB 1324
Summary: Increases from 10% to 20% the amount by which the price of a clean energy vehicle may surpass the price of a similarly equipped vehicle that is not a clean energy vehicle for the purpose of determining whether a state agency must purchase or lease the clean energy vehicle. Provides an income tax credit for placing into service a natural gas powered vehicle that has a gross vehicle weight rating of more than 33,000 pounds. Provides for the collection and remittance of the state gross retail tax (by changing the definition of “special fuel”) and the special fuel tax on natural gas, butane, and propane used as a motor fuel. Provides that a transaction involving alternative fuel acquired: (1) after December 31, 2013, and before January 1, 2017; and (2) to fuel a motor vehicle used in providing public transportation for persons or property; is not exempt from the state gross retail tax. Provides for the imposition of the motor carrier fuel tax upon alternative fuels by imposing the existing rates on the gasoline gallon equivalents of natural gas sold. Excludes certain alternative fueled vehicles from the alternative fuel decal law. Increases the maximum weight limitation for a vehicle that uses natural gas as a motor fuel by 2,000 pounds.
AFP Position: Oppose
Reason: Americans for Prosperity opposes subsidies to promote specific energy sources whether traditional or alternative. We believe the free market is best at determining which energy options will meet the needs of consumers.
Status:Passed the House, Moves to the Senate 2/21/13
Jackson County Adjusted Gross Income Tax
HB 1472
Summary: Extends the period during which Jackson County may impose the county adjusted gross income tax (CAGIT) at a rate of 1.1% to obtain additional revenue for the operation and maintenance of a jail and juvenile detention center until December 31, 2023. (Current law terminates the period during which the 1.1% CAGIT rate may be imposed in Jackson County on July 1, 2011.)
AFP Position: Oppose
Reason: House Bill 1472 extends a tax increase onto the residents of Jackson County. If county officials would like additional local revenue, they should proceed with the normal process of requesting these funds via public referendum.
Status: Heard in House Ways and Means Committee 2/5/13
Public Transportation Corporate Tax Levies
SB 21
Summary: Specifies that the maximum permissible property tax levy of a public transportation corporation increases when the municipality in which it is located annexes additional territory.
AFP Position: Oppose
Reason: Americans for Prosperity in general opposes tax increases. SB 21 would possibly encourage municipalities to annex additional territory simply to increase property tax levies for public transportation purposes.
Status: In Committee
Deputy Attorney Generals in Washington, D.C.
SB 36
Summary: Permits the Indiana attorney general to employ deputies or assistants to review and monitor federal regulations and other actions that may affect Indiana’s legal interests, and to review legislation and take other actions to protect the legal interests of the state pursuant to the attorney general’s statutory duties. Specifies that the deputies or assistants serve at the pleasure of the attorney general. Provides that the attorney general shall coordinate its study of legislation with other states, and report to the legislative council, the governors, and certain persons concerning the attorney general’s opinion with respect to this legislation. Repeals an obsolete provision.
AFP Position: Support
Reason: Strengthens Indiana’s ability to monitor and follow pending federal legislation and regulations which may harmfully affect Hoosier taxpayers and small businesses.
Status: Passed the Senate, Moves to the House 2/12/13
Marion County Auto Rental and Admission Taxes
SB 90
Summary: Provides that any increase after January 1, 2013, and before March 1, 2013, in the Marion County supplemental auto rental excise tax rate or the Marion County admissions tax rate may not continue in effect after February 28, 2023.
AFP Position: Support
Reason: Sunsets local tax increases recently imposed by Marion County.
Status: Passed the Senate, Moves to the House 2/12/13
Motorsports Investment District
SB91
Summary: Motorsports investment district. Provides that the Indiana finance authority (authority) may adopt a resolution establishing a motorsports investment district. Specifies that the budget committee shall review and make a recommendation to the budget agency regarding a resolution establishing a motorsports investment district. Provides that if a resolution establishing a motorsports investment district is approved by the budget agency, state sales tax and state individual income tax generated in the district shall be allocated to the authority. Specifies that the maximum amount of covered taxes that may be captured from the motorsports investment district and allocated to the authority in a state fiscal year may not exceed $5,000,000. Provides that covered taxes may be captured from the motorsports investment district only for 20 years. Provides that the authority may issue bonds for the purpose of obtaining money to pay the cost of improving, constructing, reconstructing, renovating, acquiring, or equipping structures and capital improvements within a qualified motorsports facility.
AFP Position: Oppose
Reason: Special deals between government and private businesses only encourages others to seek the same offers from government at the cost to taxpayers. This bill amounts to a taxpayer funded subsidy for a private enterprise.
Status: Passed the Senate, Moves to the House 2/19/13
Indiana Economic Development Transparency
SB 162
Summary: Specifies for purposes of the public records law that information provided to receive an economic development incentive from the Indiana economic development corporation (IEDC), the ports of Indiana, the Indiana state department of agriculture, the Indiana finance authority, an economic development commission, a local economic development organization, or a governing body of a political subdivision with industrial, research, or commercial prospects (an “economic development incentive provider”) must be available for inspection and copying, if the information is provided after the incentive recipient executes the financial incentive agreement. Specifies that negotiations with an economic development incentive provider terminate on the date the incentive recipient executes the financial incentive agreement. Prohibits the IEDC from granting any incentive that is measured by any activity that occurred before the date the incentive recipient executes the financial incentive agreement. Requires a person that applies for an economic development incentive with the IEDC to include a representation of the applicant’s expected financial investment in Indiana. Requires an IEDC incentive recipient to annually provide job and financial investment information that corresponds to the recipient’s representations as an applicant. Specifies that the information that an applicant and incentive recipient files with the IEDC compliance officer to detail the applicant’s compliance with the incentive agreement must be available for inspection and copying under the public records law.
AFP Position: Support
Reason: As citizens of Indiana, it is important that we be able to monitor government stewardship of our tax dollars. SB 162 would allow economic development incentive negotiations, receipts, and results to become public record.
Status: Passed out of Committee 1/24/13
Homestead Assessed Value Cap
SB 201
Summary: Limits the annual increase in assessed value of a homestead to 5% unless: (1) ownership of the homestead changes during the year; or (2) the increase results from physical changes to the homestead.
AFP Position: Support
Reason: Protects homeowners from unfair assessments and skyrocketing property taxes.
Status: In Committee
Redevelopment Commissions and Authorities
SB 325
Summary: Provides that a redevelopment commission may not enter into any obligation payable from public funds without first obtaining the approval of the legislative or fiscal body of the unit that established the commission. Specifies that the approving ordinance or resolution must include certain items. Provides that any agreement by a redevelopment commission to: (1) make payments for real property for a term exceeding three years; or (2) pay a purchase price for real property that exceeds $5,000,000; is subject to prior review (instead of approval) by the legislative body of the unit. Specifies that any sale, exchange, transfer, grant, donation, lease, or other disposal of real property by a redevelopment commission is subject to prior review (instead of approval) by the legislative body of the unit if the value of the real property exceeds $5,000,000. Provides that if a redevelopment commission acquires or sells real property, the redevelopment commission shall include in its annual report a description of the real property and the terms under which the real property was acquired or sold. Specifies that a redevelopment commission may hold an executive session for a discussion of strategy with respect to the acquisition, lease, or sale of real property by the redevelopment commission. Provides that a redevelopment commission and a department of redevelopment are subject to oversight by the legislative body of the unit, including review by the legislative body of annual budgets. Specifies that a redevelopment commission and a department of redevelopment are subject to the same laws, rules, and ordinances of a general nature that apply to all other commissions or departments of the unit. Specifies that a redevelopment commission, a department of redevelopment, and a redevelopment authority are subject to audit by the state board of accounts and covered by the public meeting and public records laws. Requires a redevelopment commission to provide to the legislative body of the unit at a public meeting all the information supporting the action the redevelopment commission proposes to take regarding the sale, transfer, or other disposition of property. Provides that if the amount of excess assessed value determined by the commission is expected to generate more than 200% of the amount of allocated tax proceeds necessary to carry out the commission’s plan, a determination of the amount of the excess available to other taxing units by the commission must be approved by the legislative body of the unit. Permits the legislative body of the unit to modify the commission’s determination with respect to the amount of excess assessed value. Requires the treasurer of a redevelopment commission outside Indianapolis and the secretary-treasurer of a redevelopment authority outside Indianapolis to report quarterly to the fiscal officer of the unit that established the commission or authority. Provides that the Indianapolis controller is the fiscal officer of the redevelopment commission and redevelopment authority in Indianapolis. Authorizes the Indianapolis controller to obtain financial services on a contractual basis.
AFP Position: Support
Reason: Provides greater accountability for redevelopment commissions and strengthens a county’s elected fiscal body, giving Hoosier taxpayers a voice in the activities of redevelopment commissions.
Status: Passed the Senate, Moves to the House 2/12/13
Excise and Wheel Tax
SB 389 / HB 1117
Summary: Permits a county income tax council to impose a motor vehicle excise surtax and a wheel tax for a county. (Current law permits the county council to impose these taxes.) Specifies that the body that initially imposes the excise surtax and wheel tax is the body that is empowered to increase, decrease, or rescind the excise surtax and wheel tax. Increases the maximum wheel tax rate that may be imposed from $40 to $100 (This part of the bill was removed in committee).
AFP Position: Oppose
Reason: SB 389 opens the door to new tax increases for Hoosier taxpayers. This bill allows a new county body to impose additional tax increases.
Status: Passed the Senate, Moves to the House 1/29/13