Tax Update: Indiana House Enrolled Act 1001
Published:
by Abbey Lakin and Marie Jett, CPA | Team Members of the Tax Services Group
On May 8, 2013 Governor Mike Pence signed Indiana House Enrolled Act 1001 which included numerous Indiana tax changes. Among these changes are the reduction of the adjusted gross income tax rate for non-corporate taxpayers and the repeal of the Indiana inheritance tax.
The bill reduces the state income tax rate on non-corporate taxpayers from 3.4% to 3.23% over three years beginning January 1, 2015. The adjusted gross income tax rates for non-corporate taxpayers for years beginning after December 31, 2014 are as follows: (1) 3.4% for taxable years beginning before January 1, 2015. (2) 3.3% for taxable years beginning after December 31, 2014, and before January 1, 2017. (3) 3.23% for taxable years beginning after December 31, 2016.
The legislature also repealed the Indiana inheritance tax effective retroactively to January 1, 2013. Because the repeal is retroactive to January 1, 2013, estates of decedents whose death occurred in 2013 that have already paid Indiana inheritance tax may apply for a refund.
If you have any questions regarding the Indiana tax changes please call the Tax Services Group at 317.241.2999.
Contact Information:
Abbey Lakin, Member of the Tax Service Group | 317-260-4480 | alakin@greenwaltcpas.com
Marie Jett, CPA, Manager, Tax Services Group | 317-260-4472 | mjett@greenwaltcpas.com