IN HB1156

Eliminates all ad valorem property taxes effective for assessment dates after January 15, 2011, and replaces lost revenue with four new local and state taxes: local residential income tax (IC 6-1.6), fire and safety benefit tax (IC 6-1.7), state commercial activity tax (IC 6-1.8), and state employer payroll expense tax (IC 6-1.9).

Increases state gross retail and use tax from 7% to 7.5% effective January 1, 2012, and reduces state adjusted gross income tax rate from 3.4% to 3%.

Establishes local residential income tax imposed on individual residents' adjusted gross income at rates set by political subdivisions within tax limits, with distributions based on taxpayer residency.

Creates fire and safety benefit tax on property owners based on acreage, crime/fire risk, or service delivery costs to fund police, fire, emergency services, and related operations.

Implements commercial activity tax at 0.25% on gross receipts of businesses with substantial Indiana nexus and employer payroll expense tax at 0.25% on compensation paid to Indiana employees or residents.