Citations Affected:
IC 6-3.5-6-18
;
IC 6-3.5-6-18.3.
Synopsis: Dearborn County option income tax. Permits Dearborn
County to adopt an ordinance that changes the basis of distribution of
county option income tax (COIT) revenue from property tax levies to
population for civil taxing units other than a public library or solid
waste management district, while retaining the current distribution
formula for a public library or solid waste management district.
Effective: Upon passage.
January 10, 2000, read first time and referred to Committee on Finance.
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
SECTION 1.
IC 6-3.5-6-18
, AS AMENDED BY P.L.273-1999,
SECTION 71, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 18. (a) The revenue a county auditor receives
under this chapter shall be used to:
(1) replace the amount, if any, of property tax revenue lost due to
the allowance of an increased homestead credit within the county;
(2) fund the operation of a public communications system and
computer facilities district as provided in an election, if any, made
by the county fiscal body under
IC 36-8-15-19
(b);
(3) fund the operation of a public transportation corporation as
provided in an election, if any, made by the county fiscal body
under
IC 36-9-4-42
;
(4) make payments permitted under
IC 36-7-15.1-17.5
;
(5) make payments permitted under subsection (I); (i); and
(6) make distributions of distributive shares to the civil taxing
units of a county.
(b) The county auditor shall retain from the payments of the county's
certified distribution, an amount equal to the revenue lost, if any, due
to the increase of the homestead credit within the county. This money
shall be distributed to the civil taxing units and school corporations of
the county as though they were property tax collections and in such a
manner that no civil taxing unit or school corporation shall suffer a net
revenue loss due to the allowance of an increased homestead credit.
(c) The county auditor shall retain the amount, if any, specified by
the county fiscal body for a particular calendar year under subsection
(I), (i),
IC 36-7-15.1-17.5
,
IC 36-8-15-19
(b), and
IC 36-9-4-42
from the
county's certified distribution for that same calendar year. The county
auditor shall distribute amounts retained under this subsection to the
county.
(d) All certified distribution revenues that are not retained and
distributed under subsections (b) and (c) shall be distributed to the civil
taxing units of the county as distributive shares.
(e) Except as provided in sections 18.3 and 18.5 of this chapter,
the amount of distributive shares that each civil taxing unit in a county
is entitled to receive during a month equals the product of the
following:
(1) The amount of revenue that is to be distributed as distributive
shares during that month; multiplied by
(2) A fraction. The numerator of the fraction equals the total
property taxes that are first due and payable to the civil taxing
unit during the calendar year in which the month falls, plus, for a
county, an amount equal to the property taxes imposed by the
county in 1999 for the county's welfare fund and welfare
administration fund. The denominator of the fraction equals the
sum of the total property taxes that are first due and payable to all
civil taxing units of the county during the calendar year in which
the month falls, plus an amount equal to the property taxes
imposed by the county in 1999 for the county's welfare fund and
welfare administration fund.
(f) The state board of tax commissioners shall provide each county
auditor with the fractional amount of distributive shares that each civil
taxing unit in the auditor's county is entitled to receive monthly under
this section.
(g) Notwithstanding subsection (e), if a civil taxing unit of an
adopting county does not impose a property tax levy that is first due
and payable in a calendar year in which distributive shares are being
distributed under this section, that civil taxing unit is entitled to receive
a part of the revenue to be distributed as distributive shares under this
section within the county. The fractional amount such a civil taxing
unit is entitled to receive each month during that calendar year equals
the product of the following:
(1) The amount to be distributed as distributive shares during that
month; multiplied by
(2) A fraction. The numerator of the fraction equals the budget of
that civil taxing unit for that calendar year. The denominator of
the fraction equals the aggregate budgets of all civil taxing units
of that county for that calendar year.
This subsection does not apply to a county that has in effect an
ordinance under section 18.3 of this chapter.
(h) If for a calendar year a civil taxing unit is allocated a part of a
county's distributive shares by subsection (g), then the formula used in
subsection (e) to determine all other civil taxing units' distributive
shares shall be changed each month for that same year by reducing the
amount to be distributed as distributive shares under subsection (e) by
the amount of distributive shares allocated under subsection (g) for that
same month. The state board of tax commissioners shall make any
adjustments required by this subsection and provide them to the
appropriate county auditors.
(I) (i) Notwithstanding any other law, a county fiscal body may
pledge revenues received under this chapter to the payment of bonds
or lease rentals to finance a qualified economic development tax
project under
IC 36-7-27
in that county or in any other county if the
county fiscal body determines that the project will promote significant
opportunities for the gainful employment or retention of employment
of the county's residents.
SECTION 2.
IC 6-3.5-6-18.3
IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 18.3. (a) This section applies
to a county having a population of more than thirty-eight thousand
five hundred (38,500) but less than thirty-nine thousand (39,000).
(b) A county income tax council may adopt an ordinance before
July 1 of a year to provide for the distribution of distributive
shares under this section instead of a distribution under section 18
of this chapter.
(c) The ordinance is effective January 1 of the following year.
The ordinance remains in effect until it is revoked.
(d) The amount of distributive shares that each civil taxing unit
is entitled to receive each month is determined as follows:
(1) For a civil taxing unit that is a solid waste management
district or a public library, the amount of distributive shares
is determined in the manner set forth in section 18(e) of this
chapter.
(2) For all other civil taxing units in the county, the amount of
distributive shares equals the product of:
(A) the amount of revenue that is to be distributed as
distributive shares during that month, reduced by the
amount of distributive shares determined under
subdivision (1); multiplied by
(B) a fraction. For a city or town, the numerator of the
fraction equals the population of the city or town that is
within the county. For a civil taxing unit that is not a
county, city, or town, the numerator of the fraction equals
the population of the civil taxing unit that is within the
county but not within a city or town. For a county, the
numerator of the fraction equals the population of the
county that is not within a city or town. The denominator
of the fraction equals the sum of the populations used in
the numerators.
SECTION 3. An emergency is declared for this act.