Rep. Jeff Thompson

Reinstates a property tax deduction for the rehabilitation of residential property that occurs after December 31, 2020. (Current law limits this deduction to residential rehabilitation occurring before January 2, 2017.) Provides that after December 31, 2020, the deduction applies only to homesteads. Increases the maximum assessed value of the improvements for purposes of the deduction. Amends the definition of "rehabilitation". Removes the scheduled expiration of the deduction. Makes conforming changes.

Prohibits a professional appraiser or a professional appraisal firm that conducts real property assessments under contract on behalf of the county or township assessor from also being employed under contract as a tax representative of the county or township assessor with regard to a review of an assessment before the county property tax assessment board of appeals (county board) with jurisdiction in that county or the Indiana board of tax review (Indiana board). Prohibits a tax representative, attorney, or law firm from representing a taxpayer in a review of an assessment before the county board or the Indiana board if a conflict of interest exists between the tax representative, attorney, or law firm and the professional appraiser that conducted the property tax assessment that is the subject of review. Provides certain limitations for representing a taxpayer in a review of an assessment beginning after June 30, 2021.

Authorizes the town of Clarksville to adopt a town food and beverage tax. Provides that the tax rate may not exceed 1%. Provides that money received from the tax shall be distributed by the treasurer of state to the town of Clarksville. Specifies the uses to which receipts from the food and beverage tax may be applied.

Requires that the February count of a school corporation's average daily membership (ADM) must be increased by the number of students who, during the students' expected graduation year: (1) were enrolled in the school corporation on the September ADM count day; (2) completed graduation requirements before the February ADM count day; and (3) were not enrolled in the school corporation on the February ADM count day. Removes the cap on the amount of career and technical education enrollment grants that may be distributed per state fiscal year. Requires, not later than November 1, 2020, the department of education (department) to establish standards concerning the following: (1) The minimum amount of time that a student of a virtual charter school must participate in educational activities provided by the virtual charter school each semester of the school year. (2) Requirements that a student of a virtual charter school participate in the statewide assessment or an alternate assessment, as applicable. Provides that, if a student of a virtual charter school fails, in a semester, to meet the standards, the student must be withdrawn from enrollment in the virtual charter school and may not reenroll or enroll in another virtual charter school. Requires, beginning January 1, 2021, the department to reduce state tuition support distribution to a virtual charter school if students of the virtual charter school fail to meet the standards.

Provides, with certain exceptions, that the following apply to annexations for which an annexation ordinance is adopted after March 31, 2020: (1) A municipality initiating an annexation must file a petition with the court signed by at least: (A) 51% of the owners of land that is not exempt from property taxes in the annexation territory; or (B) the owners of more than 75% in assessed valuation of land that is not exempt from property taxes in the annexation territory. (2) If the petition filed by the municipality has enough signatures, the court must hold a hearing to review the annexation. (3) Adds provisions regarding the validity of a signature on an annexation petition. (4) Eliminates the remonstrance procedure for annexations and reimbursement of remonstrator's attorney's fees and costs. (5) Provides that remonstrance waivers are void for annexations for which the annexation ordinance is adopted after March 31, 2020. (6) Provides that a settlement agreement in lieu of annexation that is executed after March 31, 2020, is void. (7) Eliminates provisions regarding the contiguity of a public highway. Eliminates provisions that prohibit an annexation from taking effect in the year preceding the year that a federal decennial census is conducted.

A CONCURRENT RESOLUTION honoring Indiana University in recognition of its Bicentennial Anniversary on January 20, 2020.

Adds back the following deductions in calculating the basis for taxation of property for purposes of a referendum tax levy that is approved after June 30, 2020: (1) The homestead standard deduction. (2) The supplemental homestead deduction. (3) The mortgage deduction. Modifies the threshold amounts used for determining whether a political subdivision's project is a controlled project and whether the petition and remonstrance process or the referendum process applies. Bases these threshold amounts on gross assessed value. Provides that for a road, street, or designated bridge project, only the costs paid from property taxes are considered when applying these threshold amounts. Provides that, for purposes of the petition and remonstrance process, a controlled project includes any project: (1) that is not otherwise a controlled project; but (2) the cost of which, when added to the outstanding principal balance of all other projects adopted by the political subdivision in the preceding five years: (A) exceeds 1.5% of the political subdivision's gross assessed value but does not exceed 3% of the political subdivision's gross assessed value, in the case of a political subdivision whose total gross assessed value is not more than $1,000,000,000; or (B) in the case of a political subdivision whose total gross assessed value is more than $1,000,000,000, exceeds $15,000,000 plus 0.1% of the political subdivision's gross assessed value that exceeds $1,000,000,000 but does not exceed $30,000,000 plus 0.1% of the political subdivision's gross assessed value that exceeds $1,000,000,000. Provides that, for purposes of the referendum process, a controlled project includes any project: (1) that is not otherwise a controlled project; but (2) the cost of which, when added to the outstanding principal balance of all other projects adopted by the political subdivision in the preceding five years: (A) exceeds 3% of the political subdivision's gross assessed value, in the case of a political subdivision whose total gross assessed value is not more than $1,000,000,000; or (B) in the case of a political subdivision whose total gross assessed value is more than $1,000,000,000, exceeds $30,000,000 plus 0.1% of the political subdivision's gross assessed value that exceeds $1,000,000,000. Provides that the public question for a controlled project referendum or a school referendum levy must include a statement that if approved, the tax rate approved by referendum would represent a stated percentage increase (calculated by the department of local government finance) of the political subdivision's or school corporation's total tax rate as of the time of the referendum. Provides that if the estimated increase in a political subdivision's property tax levy for debt service for a proposed controlled project will be offset in whole or in part because of the retirement of existing debt of the political subdivision, the proper officers of the political subdivision may adopt a resolution that includes certain information and statements. Provides that if a political subdivision experiences a decrease in net assessed value it may be stated as an exception to a political subdivision's statement about maintaining its property tax rate to fund a new controlled project because of the retirement of debt. Specifies the ballot language for the referendum on such a proposed controlled project. Provides that the restrictions on supporting a position on a controlled project apply to any political subdivision that has assessed value within the same taxing district as the political subdivision proposing the project.

Provides that a certificate of authority is valid for two years after the date the certificate of authority is approved by the bureau of motor vehicles (BMV). Provides that the BMV shall establish a system that allows applicants to electronically amend information contained on a certificate of authority.

Provides that when a taxpayer is owed $100,000 or more as the result of a real property tax assessment appeal, the county auditor may, in installments and over a period of not more than five years: (1) apply credits to future property tax installments for the property; or (2) issue a refund.

Expires the existing local income tax law on December 31, 2021, and adds a new local income tax law effective in 2022 and thereafter. Does the following under the new local income tax law: (1) Authorizes counties, municipalities, and school corporations to each enact a property tax relief rate of not more than 0.5% in the case of counties and municipalities and not more than 0.25% in the case of school corporations. Provides that in Marion County, municipalities may not enact a property tax relief rate, but the Marion County city-county council may adopt a 1% property tax relief rate. (2) Authorizes counties, municipalities (other than municipalities in Marion County), and school corporations to each enact an expenditure rate. (3) Provides that an expenditure rate may not exceed: (A) 1.25% in the case of counties other than Marion County or 2% in the case of Marion County; (B) 1.25% in the case of municipalities (other than municipalities in Marion County); and (C) 0.25% in the case of school corporations. (4) Provides that, if an expenditure rate is imposed by a municipality, the municipality shall receive the revenue from the tax, and specifies that the revenue may be used for any legal purpose of the municipality (including providing additional property tax credits). (5) Specifies that a school corporation may not adopt an expenditure rate unless: (A) the expenditure rate is approved by the voters of the school corporation in a local public question; or (B) the revenue from the expenditure rate is used to provide additional property tax credits. Provides that, if a school corporation's expenditure rate is approved by the voters, the revenue may be used for any legal purpose of the school corporation (including providing additional property tax credits). Provides that the maximum period for an expenditure rate approved by the voters of a school corporation is eight years, but that the expenditure rate may be reimposed by the school corporation if approved by the voters. (6) Provides for a distribution formula for certified shares using a weighted combination of property tax levies and residential assessed value for qualified civil taxing units. Phases in the weights over five years beginning in 2022. Provides that, if an expenditure rate is imposed by a county other than Marion County, the revenue shall be distributed as certified shares to civil taxing units in the county (other than municipalities and school corporations) based on the allocation factor. Specifies that, in counties other than Marion County, the revenue from the county's expenditure rate may be allocated to a public safety answering point or used to provide additional property tax credits before the remaining revenue is distributed as certified shares. (7) Provides that the 2% maximum expenditure rate in Marion County consists of: (A) an expenditure rate of not more than 1%, to be distributed as certified shares to the county and to excluded cities in the county based on the allocation factor; and (B) an expenditure rate of not more than 1%, to be distributed as certified shares to the county and to townships in the county based on the allocation factor. (8) Specifies that in Marion County: (A) the revenue from the county's expenditure rate may be allocated to a public communications systems and computer facilities district, a public library, or a public transportation corporation, or for additional property tax credits before the remaining revenue is distributed as certified shares; and (B) revenue distributed as certified shares may be used for any legal purpose of the unit receiving the certified shares. (9) Provides that, after May 31, 2020, a political subdivision may not pledge for the payment of bonds, leases, or other obligations any tax revenue received under the current local income tax law (other than a special purpose rate). (10) Maintains the existing special purpose rates. (11) Provides that, after December 31, 2021, a local income tax rate imposed for transit purposes after approval in a local public question: (A) is a separate special purpose rate; and (B) is not part of the county's expenditure rate or considered in determining whether the county is imposing its maximum expenditure rate. (12) For property taxes due and payable in 2022 and thereafter, requires the department of local government finance to adjust each maximum property tax levy for which a levy freeze amount was applied under the existing local income tax law in 2021. (13) Authorizes a political subdivision to appeal to the department of local government finance for the authority to impose an additional local income tax rate if the political subdivision's expected local income tax distributions will be insufficient to pay obligations for which a pledge of revenue was made under the prior local income tax laws. (14) Specifies that the legislative council shall provide for the preparation and introduction of legislation in the 2021 session of the general assembly to correct cross references and make other changes to the Indiana Code, as necessary, to bring other provisions of the Indiana Code into conformity with this act.