May 23, 1989
TO: TAX MEMBERS NO. 16-89
MONEY MARKET FUND CHIEF EXECUTIVE OFFICERS NO. 4-89
UNIT INVESTMENT TRUST MEMBERS NO. 29-89
RE: INDIANA INTANGIBLES TAX REPEAL
__________________________________________________________
As we previously informed you, an Indiana Superior Court
ruled on November 10, 1988 that Indiana's intangibles tax, which
was assessed only on intangibles of entities organized outside
Indiana, is unconstitutional. (See Institute's Memorandum to Tax
Members No. 5-89, Money Market Fund Chief Executive Officers No.
1-89 and Unit Investment Trust Members No. 6-89, dated January
17, 1989.) Recently, the Governor of Indiana signed into law the
attached bill, effective retroactive to November 10, 1988,
repealing the State's intangibles tax. The Governor has
indicated, however, that the State will continue its efforts to
reverse the Indiana Superior Court's decision and eliminate its
obligation to refund intangibles tax owed for periods prior to
repeal of the statute.
We will keep you informed of developments.
Keith D. Lawson
Assistant General Counsel
Attachment