24 Hoosier Banker May 2016 Continued from page 23. representative to access the digital assets of the decedent. It makes conforming amendments. It provides that a custodian is immune from liability for an act done or omission made in good faith in compliance with the Revised Uniform Fiduciary Access to Digital Assets Act. Details: This bill is the 2016 uniform law on how digital assets (social media accounts, email, passwords, etc.) are handled upon an individual’s death. The law, otherwise known as UFADA, sets a legal framework to follow for the digital assets of the deceased. SB 300 – Appraisement and Real Estate Brokers Sen. Phil Boots, R-Crawfordsville Rep. Kevin Mahan, R-Hartford City Bill summary: The bill removes the requirement that property sold at sheriff’s sale be appraised. The bill adds to the existing list of acts that are exempt from the statute governing the licensure of real estate brokers for the performance of an evaluation of real property by a financial institution in connection with a transaction for which the financial institution would not be required to use the services of a state-licensed appraiser under regulations adopted under Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA). Details: This bill includes language that clarifies Indiana state law to permit evaluations to be performed by lenders, rather than by licensed appraisers, in accordance with FIRREA. FIRREA allows evaluations to be done on residential real estate with a transaction amount of under $250,000 and for commercial real estate with a transaction amount under $1 million. Currently state law clearly prohibits this practice. This clarifying language was sought by the IBA to ensure that state law is not in conflict with federal law. SB 309 – State and Local Taxation Sen. Brandt Hershman, R-Buck Creek Rep. Tim Brown, R-Crawfordsville Bill summary: This bill is an omnibus tax bill addressing issues related to income tax credits, dependent exemption, sales tax on accommodations and time and material contracts, inheritance tax, innkeepers tax, demand notice and withholding penalties in trusts. The bill also eliminates the exemption for property taxes during the planning and construction of a residence that is conveyed upon completion to a low-income individual by a nonprofit organization. The bill restricts, but does not eliminate, the exemption for property taxes for improvements on real property that are constructed, rehabilitated or acquired for the purpose of providing low-income housing. It specifies that the payments in lieu of taxes (PILOTs) that may be required from a property owner claiming such an exemption may not be imposed for an assessment date occurring after Jan. 1, 2017. The bill eliminates the property tax deduction for residential rehabilitation of a dwelling and the property tax deduction for rehabilitation of a structure over 50 years old. Withholding Penalties: It provides that if a partnership, trust or estate fails to withhold and pay any amount of tax required to be withheld, and thereafter the tax is paid by the partners of the partnership (or the beneficiaries in the case of a trust or estate), the amount of tax paid by partners (or the beneficiaries in the case of a trust or estate) may not be collected from the partnership, trust or estate. It specifies that the partnership, trust or estate remains liable for interest or penalty based on the failure to withhold the tax. Public-Private Agreements: It provides that a public-private agreement for communications systems infrastructure may be entered into using the procedures that apply to requests for proposals by the Indiana Finance Authority (IFA) or using a request for information and entering into negotiations with a single offeror. It provides that the IFA may set user fees as part of the public-private agreement. It specifies that any improvements on any real property interests may be owned by the IFA, a governmental entity, an operator or a private entity, instead of having to be owned in the name of the state or by a governmental entity. The bill provides that local planning and zoning laws do not restrict or regulate the exercise of the power of eminent domain by the IFA or the use of property owned or occupied by the IFA. 529 Contribution Tax Credit: It sets forth criteria for determining the date on which a taxpayer has made a contribution to a 529 plan. Study Topic: It urges the Legislative Council to assign to a study committee the topic of the eligibility of low-income housing for a property tax exemption. The bill also reconciles a conflict with SEA 23-2016 and HEA 1036-2016 Details: The original omnibus tax bill eliminated the state property tax exemption for low-income housing development and the PILOTs related to property tax liability of the developed properties, including existing developments currently utilizing a PILOT agreement. SB 309 was also amended in the House Ways and Means Committee to include language at the request of the state auditor asking the office to study the issue of state-run retirement program and report the findings to the General Assembly. The IBA was opposed to this approach and worked to remove the study request. This attempt uses the same approach that AARP has promoted to create a state-run retirement plan marketed by the state to private employers. SB 310 – Lake County Pilot Program and Other Local Governmental Matters Sen. Earline Rogers, D-Gary Rep. Hal Slager, R-Schererville Bill summary: Serial Tax Delinquencies: This bill makes changes to the statute concerning determination of serial tax delinquencies to provide that: (1) a petitioner is required to serve notice of a petition only on a person with a substantial property interest of public record, eliminating the need to serve notice on other appropriate parties; (2) a hearing date on a petition for a determination of serial tax delinquencies may be set not earlier than 30 days and not later than 60 days after the petition is filed (current law specifies that the hearing date may be set not earlier than 15 days and not later than 25 days after the petition is filed); and (3) property taxes and special assessments are removed from the tax duplicate as soon as an order is issued finding that serial tax delinquencies exist with respect to the subject properties, regardless of whether the petitioner acquires a tax deed for the properties. Documentation: The bill provides that a petitioner for a tax deed under the normal tax sale statute may (instead of must) include various items of documentation with the petition. New Opportunity Area: This bill establishes a three-year pilot program, applicable only in Lake County, that authorizes a redevelopment commission to: (1) establish an area known as a new opportunity area; and (2) sell any property that is held by the redevelopment commission and located
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