|
|
| NEI TAXATION |
| Corporate Income Tax/Franchise Tax |
State |
Local |
| Rate (range) |
8.5% corporate AGI |
none |
| Formula (e.g. Sales, Property & Payroll) |
State is phasing in a single sales factor. By 2011, tax will be based on 8.5% of adjusted gross income |
| Federal Taxes Deductible |
no |
|
| Accelerated Depreciation Permitted (Yes or No) |
no |
|
| Franchise Tax |
no franchise tax |
|
| Personal Income Tax |
State |
Local Resident (COIT/CEDIT/CAGIT) |
| Rate (Range) |
3.4% |
1.0%-1.5% |
| Earned Income |
same |
same |
| Unearned Income (e.g. Dividend) |
same |
same |
| Local Occupation Tax (Paid by Employee) |
Rate |
Basis |
| City Residents |
None |
|
| Non-City Residents |
None |
|
| Local Wage Tax (Paid by Employer) |
Rate |
Basis |
| City Residents |
None |
|
| Non-City Residents |
None |
|
| Gross Receipts Tax Rate by Type of Business |
|
|
| Corporate Income Tax: |
no |
|
| Financial Institutions Tax: |
no gross receipts, just corp income tax (see above) with certain deductions |
| Utility Receipts Tax: |
1.4% taxable receipts |
|
| Insurance Taxes: |
Insurance companies which pay the premium tax (gross premiums with certain deductions) are exempt from the corporate income tax. |
| Sales/Use Tax Rate |
| State |
6.0% |
|
| Local |
no, except county innkeeper's tax (8 counties) and 2 counties with food & beverage tax |
| Total |
6.0% |
|
| Sales Tax Rate by Utility: Consumers of utility services including: Electrical, natural gas, water, steam, sewage, or telecommunications |
6.0% |
|
| Hazardous Waste Disposal |
$11.50 per ton |
|
| Fuel Taxes: Gasoline tax |
18 cents per gallon plus 6% sales tax |
|
| Telephone |
| Local |
State sales tax 6% |
|
| Long Distance In State |
State sales tax 6% |
|
| Long Distance Out of State |
State sales tax 6% |
|
| Machinery & Equipment Subject to Sales/Use Tax |
| Production |
Exempt if directly used in direct production in mfg, farming, public utilities, or public transportation; otherwise 6% |
| Non-Production |
6.00% |
|
| Pollution Control |
Exempt if required by law; otherwise 6% |
| Office Furniture/Fixtures/Equipment |
6.00% |
|
| Sales/Use Tax (Yes or No) on |
| Office Building Construction Materials |
Yes |
| Industrial Building Construction Materials |
Yes |
| Manufacturers' Raw Materials |
No |
| Standard Software |
Yes |
| Custom Software |
certain R&D items exempt |
| Intangible Property |
|
no state tax on intangible property |
| Real and Personal Property Tax Rates |
| Specific Real and Personal Tax Information is best summarized by a specific question to the legal dept. Each taxing district has varying credits available for Real Estate and Other Personal Property and for Business Personal Property, as well as varying state and local, homestead credits or additional COIT credits available. |
| Adams Co: 23 tax districts with an UNADJUSTED (see tax credit applications listed above) 2007 rate range of 1.7914 - 3.1423 |
| Allen Co: 52 tax districts with an UNADJUSTED (see tax credit applications listed above) 2006 rate range of 2.3342 - 3.5366 |
| Dekalb Co: 28 tax districts with an UNADJUSTED (see tax credit applications listed above) 2006 rate range of 1.5059 - 3.3587 |
| Grant Co: 36 tax districts with an UNADJUSTED (see tax credit applications listed above) 2007 rate range of 2.2158 - 4.2387 |
| Huntington Co: 21 tax districts with an UNADJUSTED (see tax credit applications listed above) 2007 rate range of 2.1407 - 3.9533 |
| Lagrange Co: 18 tax districts with an UNADJUSTED (see tax credit applications listed above) 2006 rate range of 1.7504 - 3.2259 |
| Noble Co: 22 tax districts with an UNADJUSTED (see tax credit applications listed above) 2006 rate range of 1.9021 - 3.2197 |
| Steuben Co: 20 tax districts with an UNADJUSTED (see tax credit applications listed above) 2006 rate range of 1.3421 - 2.6928 |
| Wabash Co: 13 tax districts with an UNADJUSTED (see tax credit applications listed above) 2007 rate range of 1.8485 - 3.6378 |
| Wells Co: 23 tax districts with an UNADJUSTED (see tax credit applications listed above) 2007 rate range of 1.8434 - 2.9206 |
| Whitely Co: 14 tax districts with an UNADJUSTED (see tax credit applications listed above) 2007 rate range of 1.7201 - 2.9147 |
| State Property Tax Effective Rate per $100 |
| Real Property |
$0.0024 per $100 assessed value |
| Personal Property (machinery/equipment) |
$0.0024 per $100 assessed value |
| Subject to Personal Property Tax |
| Production Machinery & Equipment |
Yes |
NOTE: Research and Development Sales Tax refund program. Reference: IN Dept of Revenue www.in.gov/dor/taxforms/s-wforms.html |
| Non Production Machinery & Equipment |
Yes |
|
| Pollution Control |
Not if used for the welfare of the public |
|
| Inventory |
NO INVENTORY TAX |
|
Raw Materials |
|
Work in Progress |
|
Finished Goods |
|
| Freeport Legislation---interstate commerce |
sales made in interstate commerce are exempt from sales and use tax, no personal prop tax. |
Applicable to Warehousing |
|
Applicable to Manufacturing |
|
Goods Stored in a Public Warehouse |
|
| Office Furniture-Fixtures |
Computer Equipment |
Yes |
Workstations |
Yes |
Telephones |
Yes |
Furniture |
Yes |
Company Vehicles |
No -Subject to State Excise Tax |
Standard Software |
|
Custom Software |
|
| NOTE: TAX INCENTIVES/TAX CREDITS/EXEMPTIONS AVAILABLE See Table 22 |
| Source: In Handbook Taxes, Revenues, and Appropriations 2006, Indiana Dept Local Government Finance (2006 and 2007), Indiana Dept of Revenue |