Bill Text: IN HB1373 | 2013 | Regular Session | Introduced
Bill Title: Business rapid response to disaster emergencies.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2013-01-22 - First reading: referred to Committee on Ways and Means [HB1373 Detail]
Download: Indiana-2013-HB1373-Introduced.html
Citations Affected: IC 6-8-13; IC 22-3-2-9; IC 22-4; IC 23-1-49-2.
Synopsis: Business rapid response to disaster emergencies. Requires
the department of state revenue to establish a procedure by which
out-of-state businesses and employees may apply for exemptions from
taxation and other requirements for disaster-related work performed
during a disaster period. Requires the department of state revenue to
consult and coordinate with the various state and local agencies in
establishing certain procedures.
Effective: July 1, 2013.
January 22, 2013, read first time and referred to Committee on Ways and Means.
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
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A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
Chapter 13. Business Rapid Response; Exemption from Taxation and Other Requirements
Sec. 1. As used in this chapter, "affiliate" has the meaning set forth in IC 23-1-43-1.
Sec. 2. As used in this chapter, "department" refers to the department of state revenue.
Sec. 3. As used in this chapter, "disaster emergency" means the following:
(1) A disaster emergency declared under IC 10-14-3-12.
(2) A state of energy emergency declared under IC 10-14-3-13.
(3) A local disaster emergency declared under IC 10-14-3-29.
Sec. 4. As used in this chapter, "disaster period" means the period:
(1) beginning on the date ten (10) days before the day on
which a disaster emergency is declared; and
(2) ending sixty (60) days after the date on which the disaster
emergency declaration ends.
Sec. 5. As used in this chapter, "disaster emergency related
work" means:
(1) repairing, renovating, installing, or building; or
(2) rendering services or transacting other business activities
related to;
infrastructure that is damaged, impaired, or destroyed by an event
that caused a disaster emergency to be declared.
Sec. 6. As used in this chapter, "eligible business" means an
out-of-state business that the department determines is eligible for
an exemption under section 12 of this chapter.
Sec. 7. As used in this chapter, "eligible employee" means an
out-of-state employee employed by an eligible business.
Sec. 8. As used in this chapter, "entity" has the meaning set
forth in IC 23-1-20-10.
Sec. 9. As used in this chapter, "infrastructure" means the
following:
(1) Real or personal property or equipment owned or used by:
(A) a public utility (as defined in IC 8-1-2-1(a));
(B) a municipally owned utility (as defined in
IC 8-1-2-1(h)); or
(C) a communications service provider (as defined in
IC 8-1-32.6-3).
(2) Public roads and bridges and related support facilities.
Sec. 10. (a) As used in this chapter, "out-of-state business"
means an entity that:
(1) is not incorporated or authorized to do business in Indiana
on the date on which a disaster period begins; and
(2) does not maintain a business presence in Indiana during
the taxable year in which the disaster emergency is declared.
(b) The term includes the following:
(1) An affiliate of an out-of-state business.
(2) An affiliate that is an out-of-state business, if the person
that controls the affiliate is not an out-of-state business.
Sec. 11. As used in this chapter, "out-of-state employee" means
an individual who is:
(1) employed by an out-of-state business at any time during a
disaster period; and
(2) for purposes of section 14 of this chapter, not a resident of
Indiana.
Sec. 12. (a) To facilitate the performance of disaster emergency
related work during a disaster period by out-of-state businesses
and out-of-state employees, the department may determine that an
out-of-state business or out-of-state employee is eligible to receive
one (1) or more of the exemptions set forth in sections 13, 14, 15,
and 16 of this chapter.
(b) The department shall prescribe the form of an application
to determine eligibility under subsection (a). An application must
contain the following information:
(1) A statement of purpose that the out-of-state business is in
Indiana to respond to a disaster emergency.
(2) Contact information for the out-of-state business,
including the following:
(A) Principal business address.
(B) Names and addresses of directors, partners, or
members, as applicable.
(C) Federal tax identification number.
(3) An estimate of the length of time the out-of-state business
will remain in Indiana.
(4) The number and job descriptions of out-of-state employees
employed by the out-of-state business who will perform
disaster emergency related work in Indiana during the
disaster period.
(5) Any other information necessary for the department to
determine whether the out-of-state business is eligible to
receive an exemption.
(c) The department may make a determination of eligibility
under subsection (a) retroactive to the later of the following dates:
(1) The date on which the disaster period begins.
(2) The date on which the eligible business or eligible
employee enters the state to respond to the disaster
emergency.
(d) The department shall consult with:
(1) the Indiana professional licensing agency in making a
determination under section 15 of this chapter;
(2) the worker's compensation board in making a
determination under section 13(3) of this chapter;
(3) the unemployment insurance board in making a
determination under section 13(4) of this chapter; and
(4) other state and local agencies as needed.
(e) The department may issue a means of indicating eligibility
under subsection (a) to an eligible business or eligible employee.
Sec. 13. An eligible business that performs disaster emergency
related work in Indiana during a disaster period is exempt from
paying the following during the disaster period:
(1) Any state or local taxes, including ad valorem and payroll
taxes, regardless of the manner in which the eligible business
reports, files, or remits the taxes.
(2) Any state or local fees, including fees associated with
licensing or registration requirements.
(3) Worker's compensation insurance under IC 22-3-5.
(4) Employer contributions to the unemployment
compensation system under IC 22-4-10.
Sec. 14. The adjusted gross income of an eligible employee that
is attributable to disaster emergency related work performed
during a disaster period is exempt from the following state or local
taxes:
(1) Adjusted gross income taxes imposed under IC 6-3 and
IC 6-3.5.
(2) Other withholding or remittance obligations determined
by the department.
Sec. 15. An eligible employee is exempt from state and local
licensing and registration requirements with respect to disaster
emergency related work performed during a disaster period.
Sec. 16. (a) An eligible business or eligible employee is exempt
from paying:
(1) state gross retail and use taxes imposed under IC 6-2.5;
(2) motor fuel and vehicle excise taxes imposed under IC 6-6;
or
(3) taxes imposed under IC 6-9;
with respect to transactions directly related to disaster emergency
related work performed by or on behalf of the eligible business or
eligible employee during a disaster period.
(b) A vendor is not required to collect or remit taxes described
in subsection (a) from an eligible business or eligible employee that
displays a means of indicating eligibility issued under section 12(e)
of this chapter.
Sec. 17. An eligible business or eligible employee that performs
work or services or otherwise transacts business:
(1) unrelated to a disaster emergency during a disaster
period; or
(2) after the expiration of a disaster period;
establishes nexus with Indiana for purposes of all taxes, fees, and
other requirements or obligations attributable to the work,
services, or transactions.
(1) casual laborers (as defined in IC 22-3-6-1);
(2) farm or agricultural employees;
(3) household employees;
(4) a person who enters into an independent contractor agreement with a nonprofit corporation that is recognized as tax exempt under Section 501(c)(3) of the Internal Revenue Code (as defined in IC 6-3-1-11(a)) to perform youth coaching services on a part-time basis; or
(5) an eligible employee (as defined in IC 6-8-13-7).
IC 22-3-2 through IC 22-3-6 do not apply to the employers or contractors of the persons listed in this subsection, including an eligible business (as defined in IC 6-8-13-6).
(b) An employer who is exempt under this section from the operation of the compensation provisions of this chapter may at any time waive such exemption and thereby accept the provisions of this chapter by giving notice as provided in subsection (c).
(c) The notice of acceptance referred to in subsection (b) shall be given thirty (30) days prior to any accident resulting in injury or death, provided that if any such injury occurred less than thirty (30) days after the date of employment, notice of acceptance given at the time of employment shall be sufficient notice thereof. The notice shall be in writing or print in a substantial form prescribed by the worker's compensation board and shall be given by the employer by posting the same in a conspicuous place in the plant, shop, office, room, or place where the employee is employed, or by serving it personally upon the employee; and shall be given by the employee by sending the same in registered letter addressed to the employer at the employer's last known residence or place of business, or by giving it personally to the employer, or any of the employer's agents upon whom a summons in civil actions may be served under the laws of the state.
(d) A copy of the notice in prescribed form shall also be filed with the worker's compensation board, within five (5) days after its service in such manner upon the employee or employer.
weeks, whether or not such weeks are or were consecutive within either
the current or preceding calendar year, has or had in employment,
and/or has incurred liability for wages payable to one (1) or more
individuals (irrespective of whether the same individuals are or were
employed in each such day), or any employing unit which in any
calendar quarter in either the current or preceding calendar year paid
for service in employment wages of one thousand five hundred dollars
($1,500) or more, except as provided in IC 22-4-7-2(h). Subsequent to
December 31, 1977, "employer" means any employing unit which for
some portion of a day, but not necessarily simultaneously, in each of
twenty (20) different weeks, whether or not such weeks are or were
consecutive within either the current or the preceding year, has or had
in employment, and/or has incurred liability for wages payable to, one
(1) or more individuals (irrespective of whether the same individual or
individuals are or were employed in each such day) or any employing
unit which in any calendar quarter in either the current or preceding
calendar year paid for service in employment wages of one thousand
five hundred dollars ($1,500) or more, except as provided in
IC 22-4-7-2(h), (e), and (i). For the purpose of this definition, if any
week includes both December 31, and January 1, the days up to
January 1 shall be deemed one (1) calendar week and the days
beginning January 1 another such week. For purposes of this section,
"employment" shall include services which would constitute
employment but for the fact that such services are deemed to be
performed entirely within another state pursuant to an election under
an arrangement entered into by the board (pursuant to IC 22-4-22) and
an agency charged with the administration of any other state or federal
unemployment compensation law. The term "employer" does not
include an eligible business (as defined in IC 6-8-13-6).
(b) A person who:
(1) accepts a layoff under an inverse seniority clause of a validly negotiated contract; and
(2) otherwise meets the eligibility requirements established by this article;
is entitled to receive benefits in the same amounts, under the same
terms, and subject to the same conditions as any other unemployed
person.
(c) This subsection applies to initial claims for unemployment filed
for a week that begins after March 14, 2008, and before October 1,
2011. This subsection does not apply to a person who elects to retire in
connection with a layoff or plant closure and receive pension,
retirement, or annuity payments. Except as provided in IC 22-4-5-1, a
person who:
(1) accepts an offer of payment or other compensation offered by
an employer to avert or lessen the effect of a layoff or plant
closure; and
(2) otherwise meets the eligibility requirements established by
this article;
is entitled to receive benefits in the same amounts, under the same
terms, and subject to the same conditions as any other unemployed
person.
(d) An individual who is an eligible employee (as defined in
IC 6-8-13-7) is not entitled to receive benefits with respect to any
week during a disaster period (as defined in IC 6-8-13-4) during
which the individual is unemployed from an eligible business (as
defined in IC 6-8-13-6).
(b) The successor to a foreign corporation that transacted business in Indiana without a certificate of authority and the assignee of a cause of action arising out of that business may not maintain a proceeding based on that cause of action in any court in Indiana until the foreign corporation or its successor obtains a certificate of authority.
(c) A court may stay a proceeding commenced by a foreign corporation, its successor, or assignee until it determines whether the foreign corporation or its successor requires a certificate of authority. If it so determines, the court may further stay the proceeding until the foreign corporation or its successor obtains the certificate.
(d) A foreign corporation is liable for a civil penalty of not more than ten thousand dollars ($10,000) if it transacts business in Indiana without a certificate of authority. The attorney general may collect all penalties due under this subsection.
(e) Notwithstanding subsections (a) and (b), the failure of a foreign corporation to obtain a certificate of authority does not impair the validity of its corporate acts or prevent it from defending any proceeding in Indiana.
