Tag: exemption

ICI Successful in Preserving Critical Sales Tax Exemption

Posted on by Dan Osborn

Construction safety equipment and materials purchase transactions remain tax exempt with the passage of the 2021 Senate Enrolled Act (SEA) 383 which became effective on July 1. ICI worked with Indiana Department of Revenue (DOR) leadership during 2020 which laid the ground work for an opportunity to propose an amendment to Indiana Code during the 2021 Indiana legislative session. SEA 383 created a statutory exemption (IN Code 6-2.5-5-55) for Indiana state sales tax for purchases of safety related equipment and materials purchased for public works construction contracts.

Previously, exemption language was solely published in the DOR’s Information Bulletin #60 up until 2017. The DOR published a revised IB #60 on July 28, 2021. The exemption applies to purchases of equipment such as barrels, barricades, temporary signs, temporary erosion control and drainage materials, but does not apply to purchases of personal protective equipment such as gloves, face masks and high visibility clothing.

Please contact Dan Osborn with general questions about this topic. Consult with a ICI member tax or legal professional for technical assistance and advice.

FMCSA Announces Exemption Renewal for Concrete Pump Operators

Posted on by Dan Osborn

The Federal Motor Carrier Safety Administration (FMCSA) has renewed the American Concrete Pumping Association (ACPA) exemption (Effective Oct. 9, 2019, Expires Oct. 9, 2024) from the 30-minute rest break requirement in the Agency’s hours-of-service (HOS) regulations for commercial motor vehicle (CMV) drivers. The exemption enables all concrete pump operators, concrete pumping companies, and drivers who operate concrete pumps in interstate commerce to count on-duty time while attending equipment but performing no other work-related activity toward the 30-minute rest break provision of the HOS regulations. FMCSA has analyzed the exemption application and the public comments and has determined that the exemption, subject to the terms and conditions imposed, will achieve a level of safety that is equivalent to, or greater than, the level that would be achieved absent such exemption.

Refer to the Federal Docket for additional details.

2018 Legislative Wrapup

Posted on by Richard Hedgecock

Much has been made of the ending of the 2018 state legislative session, and with good reason! It was, by all accounts, chaotic and messy, leaving more than a few broadly supported issues unresolved. Governor Eric Holcomb will be calling legislators back to the Statehouse in May to finalize a couple of these issues (federal/state tax law conformity, additional school safety funding) in a short special legislative session. But what happened with ICI’s legislative issues? Let’s recap.

ACTION ALERT UPDATES

HB 1015 (Torr) contained two different sections aimed at changing some language in state indemnity statutes. After some early negotiating on the House side, Rep. Torr agreed to alter his approach and support changes to the law aimed at eliminating problems with vicarious liability issues on worksites – a stance the construction industry broadly supported. However, the second section of the bill contained provisions supported by design professionals that would have statutorily removed them from the private negotiation process with owners and contractors in regards to duty to defend provisions in contracts. A business coalition made up of contractors, utilities, manufacturers and other entities staunchly opposed this section of the bill to the point where the entire measure died in a conference committee. We should be prepared for this idea to come back in a future legislative session.

HB 1021 (Torr) was an attempt to make it easier for private sector project developers to “bond around” liens that have been placed on a project in order for contractors to get paid for work they have performed. After the bill passed the House, ICI members jumped into the battle and began contacting state Senators to voice concerns about taking away what little leverage contractors have in ensuring payment. And your efforts worked! Senators didn’t even hear the bill in committee.

HB 1341 (Soliday) was one of the bills caught in the last-day-of-session shenanigans. This bill, a priority of the Governor, would have set up a regulatory framework for the operation of autonomous vehicles on Indiana roads and highways. Despite some differences in the two legislative chambers, it was expected to pass, but ultimately didn’t get across the finish line. We expect this bill to come back in 2019.

SB 242 (Holdman) was the omnibus Department of Revenue bill also caught up in the final minutes of the session. The bill contained language that would have put into statute the decades-long sales tax exemption on equipment used in the manufacture of asphalt. Though elements of this bill related to federal tax law conformity are expected to be considered during this year’s special legislative session, this portion of the bill will not come back until 2019.

OFF TO SUMMER STUDY COMMITTEE

HBs 1301 and 1374 (Carbaugh and Soliday) both contained language asking for a summer legislative study relating to payment and performance bonds for future public-private projects. Both items are awaiting the Governor’s signature.

HR 8 (Pressel) is another measure asking for a summer study committee, this one on the use of speed cameras in work zones and increased fines for distracted drivers. Ultimately, Legislative Council will decide if these issues will make the limited list of study topics.

THANK YOU

We want to express our appreciation to ICI members for picking up the telephone or typing out an email whenever we requested your help. Your work on these measures made a HUGE difference. Please remember this next year, and in future years, when similar requests come across your desk – your input matters!