INDIANA: THINKING ABOUT COMBINED REPORTING

The Indiana Senate introduced a bill (SB 323) on January 7, 2016 that would require taxpayers conducting a unitary business to file and pay adjusted gross income taxes on the combined income of the unitary group, effective January 1, 2017. 

However, the bill (SB 323) was amended on January 28, 2016 to study combined reporting instead of enact combined reporting. The amended bill requires the legislative services agency to:

  1. study the combined reporting approach to apportioning income for income tax purposes; and
  2. report the results of the study before October 1, 2016, to the legislative council and to the interim study committee on fiscal policy.

The bill also requires the interim study committee on fiscal policy to hold at least one public hearing at which the legislative services agency presents the results of the study.

As of today, the bill passed the Indiana Senate and has been referred to the House.