The Indiana General Assembly worked through last week and held committee hearings on a variety of topics. Committee chairs have until the middle of April to hear and move any bills from their respective committees. The IMBA has been engaged in a handful of bills that have yet to receive committee hearings for the second half of session, and the IMBA continues to be active in discussions surrounding those bills.
BILLS TO WATCH
SB 28 – Tax Sales
Sen. Rick Niemeyer (R-Lowell)
Why it matters
Prohibits a person who is delinquent in the payment of personal property taxes or is subject to an existing personal property tax judgment from bidding on or purchasing a tract at a tax sale. Prohibits a business entity from bidding on or purchasing a tract at a tax sale when a person who is prohibited from bidding on or purchasing a tract at a tax sale: (1) formed the business entity; (2) joined with another person or party to form the business entity; (3) joined the business entity as a proprietor, incorporator, partner, shareholder, director, employee, or member; (4) becomes an agent, employee, or board member of the business entity; or (5) represents the business entity in a legal matter. Requires a person to acknowledge that providing false information relating to a prohibited bid or purchase is perjury. Requires a county treasurer to pay all taxes and assessments that accrue on the tract of real estate through the time the record owner is divested of title from the tax sale surplus fund for the tract. Permits a county legislative body to adopt an ordinance prohibiting the assignment of a certificate of sale prior to the issuance of a tax title deed. Adds requirements that must be met within 150 days of the date a court grants a petition to issue a tax deed before a county auditor can issue or record a tax deed. The IMBA is monitoring this bill for potential impact.
SB 28 is scheduled to be heard in the House Committee on Local Government on March 17.
Learn more about SB 28
SB 236 – Land Banks
Sen. Tim Lanane (D-Anderson)
Why it matters
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 requires the county executive to transfer its interest in a tract on the list to a land bank if requested by the land bank not later than 90 days after it receives the list. The IMBA is monitoring this bill for potential impact.
SB 236 is scheduled to be heard in the House Committee on Local Government on March 17.
Learn more about SB 236
SB 383 – Various Tax Matters
Sen. Travis Holdman (R-Markle)
Why it matters
The bill requires a corporation with gross income of more than $1 million to file its corporate income tax return in an electronic manner specified by the Department of State Revenue (DOR). The bill provides 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. It removes certain unnecessary information requirements for employers withholding tax reporting forms. It specifies that the penalty provisions in current law for failure to make a payment by electronic funds transfer also apply to a failure to make a payment by any other electronic means.
It clarifies the penalty calculation for failure to make estimated tax payments, including estimated Utility Receipts Tax and Financial Institutions Tax payments. The bill provides that a taxpayer may elect to claim a tax credit against the taxpayer’s Indiana Adjusted Gross Income Tax liability for the amount of tax that is imposed in a foreign country, but not due from the taxpayer under the laws of that foreign country until a tax year after the tax year in which the income subject to the foreign country’s tax is included in the taxpayer’s Indiana adjusted gross income (with retroactive application to tax years beginning after Dec. 31, 2016). It provides that the provision in current law requiring an out-of-state merchant to collect sales tax on retail transactions made in Indiana if certain threshold conditions are met extends to the following: (1) the Tobacco Products Tax; (2) the Waste Tire Management Fee; (3) the Fireworks Public Safety Fee; and(4) the Prepaid Wireless Service Charge.
The bill also makes other changes to Indiana tax code.
The bill was heard in the House Committee on Ways and Means on March 10 and held for further discussion.
Learn more about SB 383
HB 1123 – State of Emergency; General Assembly Sessions
Rep. Matt Lehman (R-Berne)
Why it matters
HB 1123 establishes a structure for the General Assembly to convene under special sessions following a proclamation by the governor. The bill also allows the General Assembly to convene in an emergency session if the governor declares a state of emergency that affects the entire state. Additionally, the bill outlines whether local orders can be less or more stringent than the governor’s orders. Makes additional changes. HB 1123 was authored as a direct response to the governor’s executive order powers that came under scrutiny by some during the pandemic. The IMBA is monitoring the bill for potential relevant impact.
The bill was heard in the Senate Committee on Rules and Legislative Procedure on March 11. After hours of testimony, the bill was held for amendments at a later hearing.
Learn more about HB 1123
HB 1255 – Probate and Property Matters
Rep. John Young (R-Franklin)
Why it matters
This bill comes from the Indiana Bar Association and makes various changes to wills, powers of attorney, trust, conveyances and county recorders. Notably, the bill also attempts to fix the second-witness issue created from the passage of SEA 340 from last session. The bill also places requirements on county government to accept and record electronic documents.
The bill was scheduled again to be heard in the Senate Judiciary Committee on March 10, but was held for amendments at a subsequent meeting.
Learn more about HB 1255