SB 292 – Property Taxes
Authored by Sen. Jack Sandlin (R-Indianapolis)
Authorizes a county fiscal body to adopt an ordinance to establish a senior homestead assessed value deduction. Defines a “qualified senior homestead” for purposes of the deduction as homestead property that is owned by one or more owner-occupants who is at least 50 years of age. Provides that the deduction is equal to: (1) the difference of the percentage increase in the assessed value of the property that is due to the annual adjustment (or trending) minus the assessed value growth quotient percentage, multiplied by; (2) the gross assessed value. …
Chamber position: Oppose in part
The latest: Held by the Senate Tax and Fiscal Policy Committee.
There was considerable testimony that this bill is needed to address the effects of gentrification occurring in particular areas and is impacting fixed income, longtime resident homeowners.
Indiana Chamber action/commentary: The Chamber did not oppose the stated objective of this bill. However, we did point out that the breath of the proposed deduction is excessive and unnecessary. As drafted, the bill would be far too encompassing in scope than is required to achieve the stated purposes of the author and many proponents who testified. It is intended to address the scenario where longtime residents on a fixed or limited income are being forced to move out of their neighborhood because gentrification is driving up the property values and, consequently, their property assessment to the point they cannot afford their property taxes.
However, in its present form, the bill would apply comprehensively to all homeowners regardless of their neighborhood or ability to pay. The Chamber explained that the bill provisions are not currently tailored to match the purposes and objectives described by the proponents and it would cause unnecessary and unwarranted shifts to other taxpayers. We are working with the author and committee members to accomplish the objectives of the bill without substantial shifts to other taxpayers. We propose the bill be amended to allow for a more targeted application and that qualification requirements include an income threshold to assure the deduction is only available to those who need it and suffer from the described gentrification.
Time to Pass RV Sales Bill to Boost Industry
HB 1059 – Sales Tax on Recreational Vehicles
Authored by Rep. Doug Miller (R- Elkhart)
Provides that for certain transactions involving a cargo trailer or recreational vehicle (RV) that occur after June 30, 2025, the state gross retail tax rate is the rate of the nonreciprocal state or foreign country (excluding any locally imposed tax rates) in which the cargo trailer or recreational vehicle will be titled or registered, as certified by the seller and purchaser in an affidavit prescribed by the state Department of Revenue. Provides that for certain transactions involving a cargo trailer or recreational vehicle that occur after June 30, 2020, and before July 1, 2025, the transaction is exempt from the state gross retail tax regardless of whether the state or foreign country has a reciprocal agreement with Indiana. Full details.
Chamber position: Support
The latest: Passed by the House Ways and Means Committee 17-5.
Essentially the same bill passed both the House and Senate last year but died in conference committee when negotiations failed. There is a long legislative history going back to 2004 that has disrupted the sales of recreational vehicles by Indiana dealers due to the tax policy on sales tax collection. Various attempts have been proposed (and adopted) over the intervening years to address the situation that has caused Indiana RV dealerships much consternation. This bill is focused on the disadvantages that Indiana dealers experience when working with purchasers from states that do not have reciprocity agreements with Indiana.
Indiana Chamber action/commentary: The Chamber testified in support of this bill primarily due to the indirect benefit it can ultimately have on the recreational vehicle industry in Indiana. By putting Indiana dealers on par with out-of-state dealerships, this will spur more sales and stem the decline of Indiana dealerships. Buyers often travel to visit Indiana manufacturers to see the RVs in production. Thus, there is a real advantage to more Indiana dealers being available as convenient outlets to showcase their finished products.
The present sales tax scheme discourages these out-of-state residents from buying the products they like from nearby Indiana dealers. This situation has contributed to reduced sales by Indiana dealers and caused some to relocate out-of-state or, worse, close their doors. While the changes in this bill are minor in direct impact, they will likely serve to enhance both the retail sales of RVs by Indiana dealers and, in time, benefit the manufacturers indirectly by creating a better market in their home state.
Resource: Bill Waltz at (317) 264-6887 or email: bwaltz@indianachamber.com
