To: Terre Haute Chamber Members
From: Kristin Craig, Executive Director
Date: February 9, 2022
Re: State Legislative Update
Chamber Members –
As the second half of the 2022 Indiana Legislative Session begins, the House and Senate continue to work diligently on several pieces of legislation. Below are a few that we are currently monitoring and would like to share with you via this weekly update. This list will continue to grow and change over the course of the session.
HB1001 – ADMINISTRATIVE AUTHORITY; COVID-19 IMMUNIZATIONS
- This bill currently covers a wide range of activities related to COVID-19. It is now making its way through the Senate where changes are expected. We will continue to follow it closely.
- Below are a few key excerpts from the bill that we are tracking:
- Provides that an individual is not disqualified from unemployment benefits if the individual has complied with the requirements for seeking an exemption from an employer’s COVID-19 immunization requirement and was discharged from employment for failing or refusing to receive an immunization against COVID-19.
- Provides that an employer may not impose a requirement that employees receive an immunization against COVID-19 unless the employer provides individual exemptions that allow an employee to opt out of the requirement on the basis of medical reasons, religious reasons, an agreement to submit to testing for the presence of COVID-19, or immunity from COVID-19 acquired from a prior infection with COVID-19.
- Provides that an employer may not take an adverse employment action against an employee because the employee has requested or used an exemption from an employer’s COVID-19 immunization requirement.
- Recent Actions: Senate – 02/01/2022 First reading: referred to Committee on Health and Provider Services
HB1002 – VARIOUS TAX MATTERS
- We are tracking this bill specifically for the implications around the reduction of business personal property tax rates.
- Repeals a provision that would require the budget agency to transfer the amount of combined excess reserves that exceed $2,500,000,000 in the calendar year 2022 to the pre-1996 account of the Indiana state teachers’ retirement fund. Amends provisions that provide for an automatic taxpayer refund if sufficient excess reserves are available to: (1) clarify the tax return filing requirement for a refund; (2) require that refunds be distributed before May 1 of the calendar year immediately following the year in which a determination is made that the state has excess reserves; (3) remove provisions that require a taxpayer to have adjusted gross income tax liability in order to qualify for the refund; and (4) remove provisions that require the refund to be made in the form of a refundable tax credit. Provides that the minimum valuation limitation applicable to the total amount of a taxpayer’s assessable depreciable personal property in a taxing district is 30% of the adjusted cost of the depreciable personal property purchased before January 2, 2022. Provides an exemption from the 30% minimum valuation limitation for new depreciable personal property purchased after January 1, 2022. Requires the department of local government finance to develop or amend forms for property taxation of assessable depreciable personal property. Repeals the utility receipts and utility services use taxes. Provides a state income tax credit for property taxes paid on certain business personal property. Specifies a formula for determining the amount of the credit. Removes the double direct test currently applied in production sales tax exemptions. Phases down the individual adjusted gross income tax rate from 3.23% in 2022 to 3% in 2026 and thereafter. Allows a taxpayer to elect a special property tax valuation method for mini-mill equipment. Requires a utility that is subject to the jurisdiction of the Indiana utility regulatory commission (IURC) for the approval of rates and charges to file a rate adjustment with the IURC that adjusts the utility’s rates and charges to reflect the repeal of the utility receipts tax. Requires a utility that is: (1) subject to the utility receipts tax; and (2) not under the jurisdiction of the IURC; to adjust the utility’s rates and charges to reflect the repeal of the utility receipts tax. Requires each utility to provide notice to the utility’s customers that the adjustment in rates and charges reflects the repeal of the utility receipts tax. Specifies definitions for the income tax credit for property taxes paid on certain business personal property. Specifies how certain taxpayers claim the tax credit. Specifies taxpayer procedure for the repeal of the utility receipts and utility services use tax. Makes conforming changes.
- Recent Actions: Senate – 02/01/2022 – First reading: referred to Committee on Tax and Fiscal Policy
SB4 – LOCAL WORKFORCE RECRUITING AND RETENTION
- We have been following this bill closely as it has implications to benefit local units as they fight to attract and retain workforce. We are following closely regarding the specific parameters of how the funding can be used.
- Authorizes a local unit (county, municipality, town, township, or school corporation) to establish a workforce retention and recruitment program (program) and fund (fund) for the purposes of recruiting and retaining individuals who will satisfy the current and future workforce needs of the unit’s employers or provide substantial economic impact to the unit, including providing incentives in the form of grants or loans to qualified workers. Defines “qualified worker” for purposes of the program. Requires a qualified worker who receives a grant or loan from the fund to enter into an incentive agreement. Authorizes the unit to transfer money into the fund from other sources. Provides that the executive of the unit shall administer the fund in coordination with a workforce fund board of managers (workforce fund managers) appointed by the executive of the unit. Requires the workforce fund managers to annually submit a report setting out their activities during the preceding calendar year to the executive of the unit, the fiscal body of the unit, and the department of local government finance.
- Recent Actions: House – 01/31/2022 – First reading: referred to Committee on Ways and Means
SB 245 – STATEWIDE SPORTS AND TOURISM BID FUND
- With the growth of tourism in our area, we have identified this bill as a potential source of funding to promote our assets. Will continue to follow along closely, especially as it pertains to funds being allocated outside of Marion County.
- Establishes the statewide sports and tourism bid fund (fund) to provide funding for the purpose of organizing and holding sports and tourism events in Indiana. Provides that the Indiana destination development corporation (IDDC) shall administer the fund. Requires the IDDC to annually distribute to the Indiana Sports Corporation a grant amount equal to the amount appropriated by the general assembly to the fund for the state fiscal year. Provides that the Indiana Sports Corporation shall manage the funds in accordance with the general laws of the state relating to the handling of public funds. Requires that the Indiana Sports Corporation ensure that not less than 25% of the money received by the Indiana Sports Corporation each year is used for events that are conducted outside of Marion County. Authorizes the Indiana Sports Corporation to award grants to other eligible entities for the purpose of organizing and holding an event in Indiana. Requires the Indiana Sports Corporation to annually report to the budget committee on the use of the money received from the fund.
- Recent Actions: House – 02/01/2022 – First reading: referred to Committee on Ways and Means
The following bills we were previously tracking appear not to be moving forward at this time. We will continue to watch for similar language to appear as the second half of the session continues forward.
- HB1259 – REMOTE WORKER GRANTS AND REMOTE WORK SITES
- SB338- GRADUATE RETENTION INCENTIVES
- SB378- ASSESSMENT OF BUSINESS PERSONAL PROPERTY
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- Note: Although this bill does not appear to moving forward, HB1002 which also deals with business personal property tax is still moving ahead.
If you are looking for information about the 2022 Legislative Session, including specific bills, committee meeting information and even a listing of all legislators with a list of the bills they are authoring. http://iga.in.gov/
