11 HќќѠіђџȱ юћјђџ ѝџіљ 2014 GR SPOTLIGHT The 2014 Indiana General ¢ȱȱȱ¢Ȃȱ legislative business on March 13, a full day earlier than the originally scheduled completion date. Legislators tackled several issues during this short session, including business tax, pre-kindergarten programs and moratoriums on new nursing home construction. Of the 882 bills introduced at the start of the year, more than one quarter survived to become enrolled acts. The General Assembly had Ĵȱȱȱ ȱȱȱ ȱ ȱȱǰȱĚȱȱ heavy work load completed during a short period of time. From a banking perspective, it was another successful legislative session. A broad tax reduction bill, supported by the Indiana Bankers Association, was passed that includes a further reduction of the Financial Institutions Tax to 4.9 percent by 2023. The IBA also continued to address the inequities in the Indiana tax sale statute. Moving forward as a result of the passage of SB 422, the redemption period that gives the lender the opportunity to pay the taxes will now occur before, not after, the tax sale. Additionally our industry will not ěȱȱ¢ȱȱȱ initiatives passing this year, as all problematic legislation was either altered to address concerns or killed. The following material £ȱȱ¢Ȃȱȱȱ interest to the banking industry. The ęȱȱȱȱȱ passed the 2014 General Assembly, followed by an outline of bills of concern that did not pass. Almost all of the bills following were worked on by the IBA Government Relations Team. It should be noted that many of the authors of IBA-opposed bills worked with our GR Team to address concerns or to remove the bills from consideration. It is also worth noting that we owe much of our success to the many members of the Indiana General Assembly who recognize the impact of banks on the communities they serve. One example is the passage of SB 1, which further reduces the ęȱȱȱȱȱȱŚǯşȱ percent, following a phase-in period ending in 2023. %LOOV 3DVVHG E\ WKH ,QGLDQD *HQHUDO $VVHPEO\ SB 1 – State and Local Taxation – Sen. Brandt Hershman, R-Buck Creek, and Rep. Tim Brown, R-Crawfordsville What the bill does: This bill provides that a county income tax council may adopt an ordinance to exempt from property taxation any new business personal property with an acquisition cost under $20,000 (other than mobile homes and utility personal property) that is located in the county. The bill provides that a designating body may establish an enhanced abatement schedule for personal property that may not exceed 20 years. This bill provides that if a county or municipality receives a reimbursement, repayment or penalty from a taxpayer on account ȱȱ¡¢Ȃȱȱȱ¢ȱ ȱȱȱȱęȱ provided by the taxpayer as part of a property tax abatement or on ȱȱȱ¡¢Ȃȱȱȱ comply with any other requirement to receive a property tax abatement, ȱ¢ȱȱȱęȱ Ĝȱȱȱȱȱ of the reimbursement, repayment or penalty on a pro rata basis to each taxing unit that contains the property ȱ ȱȱȱȱȱ deduction. The bill phases down the corporate income tax rate from 6.5 percent in 2015 to 4.9 percent in 2021. ȱ ȱȱȱ ȱȱęȱ institutions tax rate to 4.9 percent in 2023. Another Successful Legislative Year for the Indiana Banking Community яќѢѡȱѡѕђȱ Ѣѡѕќџ Dax Denton is vice president-government relations of the Indiana Bankers Association. He can be reached at 317-917-8047, email: ddenton@indianabankers.org. &RQWLQXHG RQ SDJH
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