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IN HB1311
Bill
Status
1/10/2017
Primary Sponsor
Daniel Leonard
Click for details
AI Summary
HB 1311 Summary
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Reduces the minimum valuation floor for depreciable personal property from 30% to 20% incrementally over 10 years, beginning January 1, 2018, with annual 1% reductions through January 1, 2027.
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Creates an optional "Pool No. 5" depreciation method for integrated steel mills, oil refinery/petrochemical companies, and their affiliated entities in northern Indiana, allowing accelerated depreciation schedules ranging from 40% (year 1) to 10% (year 8 and older).
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Eliminates the addback requirement for federal domestic production activities deduction under Section 199 of the Internal Revenue Code in calculating adjusted gross income for state individual income tax and financial institutions tax purposes, effective January 1, 2018.
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Establishes new personal property tax assessment rules by voiding certain outdated administrative code provisions and directing the Department of Local Government Finance to adopt conforming rules.
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Effective dates: July 1, 2017 for most provisions; January 1, 2018 for minimum valuation percentage reductions and tax law amendments regarding domestic production deductions.
Legislative Description
State and local taxation. Provides that the minimum valuation applicable to the total amount of a taxpayer's assessable depreciable personal property in a taxing district is reduced incrementally from 30% of the assessed value of the depreciable personal property in the taxing district to 20% over 10 years beginning with the January 1, 2018, assessment date. Eliminates the addbacks of a taxpayer's federal income tax deduction for income attributable to domestic production activities in the definitions of "adjusted gross income" under the adjusted gross income tax law and the financial institutions tax law.
Last Action
First reading: referred to Committee on Ways and Means
1/10/2017