Indiana State Legislative Update April 19, 2021

April 19, 2021 1:38 PM | Wendy Bayley (Administrator)

STATEHOUSE SUMMARY

Just a few working days remain for the regular 2021 Indiana legislative session. The planned target date for conclusion of work of the general assembly is Wednesday, April 21. However, due to a delay in census data, lawmakers will have to return to session later this year to enact redistricting legislation, a process that occurs every 10 years.

The final days of session will be reserved solely for conference committee work, a process of reconciliation between changes that the House and Senate made to the respective chamber’s bills and final votes on bills after the conference committee process. Noteworthy legislation that still requires work before passage includes HB 1001 (State Budget) and SB 5 (Local Health Departments; Public Health Emergencies), among others.

Specific to the industry, SB 332 (Publication of Notice by Political Subdivisions) will be eligible for final votes before both the Senate and House after additional changes were made to the bills in conference committee.


BILLS TO WATCH

SB 275 – Property Tax Matters (Bill Includes SB 236 Land Banks)

Sen. Eddie Melton (D-Gary)

Rep. Tim Brown (R-Crawfordsville)

Why it matters

The conference committee report on this bill included SB 236, the land bank bill that has been moving through session. The land bank bill provides that a county fiscal body may adopt an ordinance requiring that, for the five years after a tract is purchased from a land bank, 50% of the amount of property taxes paid on the tract must be transferred to the land bank. It requires a county executive to provide a land bank in the county with a list of tracts located in the territory of the land bank that: (1) are delinquent on property taxes; and (2) have been offered for public sale at least two times and remain unsold; on an annual basis, and permits the county executive to transfer its interest in a tract on the list to a land bank if requested by the land bank no later than 30 days after it receives the list. The IMBA Legislative Team has been monitoring the legislation.

Latest Action

A conference committee was held last week in which the report on SB 275 included the language in SB 236. A conference committee report has not been adopted.

Learn more about SB 275

Learn more about SB 236


SB 332 – Publication of Notice by Political Subdivisions

Sen. Jim Buck (R-Kokomo)

Rep. Doug Miller (R-Elkhart)

Why it matters

Among other publication changes, the bill originally provided that if, with regard to a sheriff's sale of real property to execute a judgment, the sheriff is not able to procure publication of the notice in a newspaper of general circulation within the county, the sheriff may publish the notice on the website of each county where the real estate is located (instead of dispensing with the publication of notice entirely). The bill also sets up an optional procedure for the sheriff to post the publication once in a local newspaper and twice on a county-run website, instead of three times in the newspaper as under current law. This stated requirement was amended out of the bill, leaving all other notices except sheriff’s sale with the ability to utilize the new provision. The IMBA generally supports legislation that identifies more cost-effective ways for the consumer and the lender regarding publication costs and advocated that the provision be placed back into the bill. The provision was amended back into the bill in conference committee.

Latest action

The bill received a hearing in conference committee and will now be eligible for votes by the entire House and Senate this week.

Learn more about SB 332


SB 383 – Various Tax Matters

Sen. Travis Holdman (R-Markle)

Rep. Tim Brown (R-Crawfordsville)

Why it matters

This bill is the annual Department of Revenue tax bill. It contains a number of changes to Indiana’s tax code related to both the corporate and financial institutions tax. This includes certain procedures for reporting federal partnership audit adjustments for purposes of the state Adjusted Gross Income Tax and Financial Institutions Tax in order to conform with changes in federal law. The bill also provides that the DOR may prescribe procedures: (1) by which a pass through entity remits tax; (2) for persons or entities that are otherwise subject to withholding but that may have circumstances such that standard tax computation may result in excess withholding; (3) for individuals and trusts that are residents for part of the taxable year and nonresidents for part of the taxable year; and (4) by which an entity may request alternative withholding arrangements. The IMBA is monitoring the legislation.

Latest action

A conference committee was held on the bill last week. The bill is now awaiting final approval by both the House and Senate.

Learn more about SB 383


HB 1001 – State Budget

Rep. Tim Brown (R-Crawfordsville)

Sen. Ryan Mishler (R-Bremen)

Why it matters

The bill establishes Indiana’s operating budget for the coming two years. It also makes a number of other changes that fall outside of the budget drafting process, including an enhancement of the Venture Capital Investment Tax Credit, the creation of the Next Level Regional Recovery Fund to support economic development and regional recovery, and language that brings the Indiana tax code up to date with federal tax code changes made in 2020. The bill may also incorporate federal tax provisions that are decoupled from state tax code for purposes of liability. The IMBA Legislative Team is monitoring the budget as it is amended through the final stage of the process.

Latest action

The bill was heard in conference committee last week. A final report is expected to be released this week.

Learn more about HB 1001

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