[r73] New Indiana laws part 4 (7/23/2012)

Monday, July 23, 2012

Start Date: 7/23/2012 Start Time: 8:00 AM
End Date: 7/23/2012 End Time: 8:00 AM
This past legislative session, I supported legislation that protects the wallets of Hoosiers. Several of those legislation pieces were signed into law and took effect on July 1. It is important that we are all aware of the changes Indiana is making for taxpayers, so I’ve highlighted two of those new Indiana laws.

Unfortunately, it is often difficult for retirees to deal with inflation. I supported legislation that will help those individuals by developing trust funds to provide contributions to their retirement funds. Additionally, it will provide a thirteenth check to certain members of the (1) Indiana State Teachers' Retirement Fund (TRF); (2) Public Employees' Retirement Fund (PERF); (3) State Excise Police, Gaming Agent, Gaming Control Officer and Conservation Officers' Retirement Fund (C&E Fund) and (4) ISP 1987 Benefit System.

Additionally, Indiana took a step in the right direction by creating a law that will phase out Hoosiers’ inheritance tax over a period of nine years. Every parent and grandparent wants to be able to pass assets down to their children and grandchildren without passing down a financial burden. This law prevents that from happening; beneficiaries will no longer be burdened with paying taxes on the small businesses, farms or homes they inherit that have already been taxed once.

The law imposes a complete phase-out of the tax over a nine-year span, which will begin in 2013. In addition, the law more than doubled the amount of inheritance exempt from taxation for Class A transferees (i.e., parents, grandparents, children and their spouses or widows, stepchildren and their spouses or widows and grandchildren) from $100,000 to $250,000. This provision applies to any Class A transferee who receives an inheritance from an individual who passed away after December 31, 2011. This legislation will allow the descendants of small businesses and farms and individuals who have managed to acquire savings and assets to avoid double taxation.

This new law was the right move for Indiana. The combination of a long-term phase-out and immediate relief on exemptions will yield both instant and lasting benefits for taxpayers.

For more information on either of these new laws, or for a complete list of new Indiana laws, please visit http://www.in.gov/legislative/reports/2012/2012GOV.PDF. As always, feel free to contact me with any questions, concerns or input by calling 317-232-9509 or by emailing H73@in.gov.

Davisson GC - new laws part four.docx