2014 Indiana Code TITLE 4. STATE OFFICES AND ADMINISTRATION ARTICLE 10. STATE FUNDS GENERALLY CHAPTER 22. USE OF EXCESS RESERVES
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IC 4-10-22
Chapter 22. Use of Excess Reserves
IC 4-10-22-1
Calculation of state reserves
Sec. 1. (a) After the end of each odd-numbered state fiscal year,
the office of management and budget shall calculate in the customary
manner the total amount of state reserves as of the end of the state
fiscal year. The office of management and budget shall make the
calculation not later than July 31 of each odd-numbered year.
(b) The office of management and budget may not consider a
balance in the state tuition reserve fund established by IC 4-12-1-15.7
when making the calculation required by subsection (a).
As added by P.L.229-2011, SEC.44. Amended by P.L.160-2012,
SEC.2; P.L.205-2013, SEC.60.
IC 4-10-22-2
Determination of excess reserves; presentation to budget
committee
Sec. 2. If:
(1) the total amount of state reserves calculated by the office of
management and budget exceeds twelve and five-tenths percent
(12.5%) of the general revenue appropriations for the current
state fiscal year; and
(2) the accounts payable by the state at the end of the preceding
state fiscal year are not unusually large as a percentage of the
total amount of state reserves (as compared to recent history);
the governor shall make a presentation to the state budget committee
regarding the disposition of excess state reserves under section 3 of
this chapter. The presentation must be made not later than September
30 of each odd-numbered year.
As added by P.L.229-2011, SEC.44. Amended by P.L.160-2012,
SEC.3.
IC 4-10-22-3
Transfer of excess reserves
Sec. 3. If, after completing the presentation to the state budget
committee described in section 2 of this chapter, the amount of the
excess reserves is fifty million dollars ($50,000,000) or more, the
governor shall do the following:
(1) If the year is calendar year 2013, transfer one hundred
percent (100%) of the excess reserves to the pension
stabilization fund established by IC 5-10.4-2-5 for the purposes
of the pension stabilization fund. If the year is calendar year
2014 or thereafter, transfer fifty percent (50%) of any excess
reserves to the pension stabilization fund established by
IC 5-10.4-2-5 for the purposes of the pension stabilization fund.
(2) If the year is calendar year 2014 or thereafter, use fifty
percent (50%) of any excess reserves for the purposes of
providing an automatic taxpayer refund under section 4 of this
chapter.
As added by P.L.229-2011, SEC.44. Amended by P.L.160-2012,
SEC.4; P.L.205-2013, SEC.61; P.L.91-2014, SEC.1.
IC 4-10-22-4
Refund of excess reserves to taxpayers
Sec. 4. The following apply if sufficient excess state reserves are
available to provide an automatic taxpayer refund to each taxpayer
eligible for a refund:
(1) To qualify for a refund, a taxpayer:
(A) must have filed an Indiana resident individual adjusted
gross income tax return for the taxpayer's taxable year
ending in the calendar year immediately preceding the
calendar year in which a determination is made under
section 1 of this chapter that the state has excess reserves;
and
(B) must have adjusted gross income tax liability for the
taxpayer's taxable year ending in the calendar year in which
a determination is made under section 1 of this chapter that
the state has excess reserves.
(2) The amount of the refund is determined for each qualifying
taxpayer as follows:
STEP ONE: Determine the total amount of excess state
reserves that under section 3 of this chapter are available to
provide automatic taxpayer refunds.
STEP TWO: Determine the total number of taxpayers that
qualify for a refund under subdivision (1).
STEP THREE: Determine the result of:
(A) the STEP ONE result; divided by
(B) the STEP TWO result;
as rounded to the nearest dollar.
(3) The refund is a refundable credit that shall first be applied
as a credit against adjusted gross income tax liability in the
taxpayer's taxable year in which a refund is provided. Any
remaining unused credit shall be refunded to the taxpayer. The
credit may not be carried forward.
(4) If an individual and the individual's spouse are both
qualifying taxpayers for purposes of this section for a taxable
year and file a joint Indiana resident individual adjusted gross
income tax return for the taxable year:
(A) the individual and the individual's spouse are considered
two (2) taxpayers for purposes of determining the amount of
the refund under subdivision (2) for a qualifying taxpayer;
and
(B) the amount of the refund that the individual and the
individual's spouse are entitled to claim is equal to the
amount of any refund determined under subdivision (2) for
a qualifying taxpayer, multiplied by two (2).
As added by P.L.229-2011, SEC.44. Amended by P.L.160-2012,
SEC.5.
IC 4-10-22-5
Appropriation
Sec. 5. There is appropriated a sufficient amount in a state fiscal
year to carry out this chapter.
As added by P.L.229-2011, SEC.44.
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