SB 199-1_ Filed 03/28/2001, 14:42
Text Box
Adopted Rejected
[
]
COMMITTEE REPORT
YES:
19
NO:
4
MR. SPEAKER:
Your Committee on Ways and Means , to which was referred Senate Bill 199 ,
has had the same under consideration and begs leave to report the same back to the House with
the recommendation that said bill be amended as follows:
SOURCE: Page 1, line 1; (01)AM019905.1. -->
Page 1, between the enacting clause and line 1, begin a new
paragraph and insert:
SOURCE: IC 6-1.1-19-5.6; (01)AM019905.1. -->
"SECTION 1.
IC 6-1.1-19-5.6
IS ADDED TO THE INDIANA
CODE AS A
NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2001]:
Sec. 5.6. A school corporation may
appeal to the state board of tax commissioners under this chapter
to increase the school corporation's general fund levy. To be
granted an increase by the state board of tax commissioners, the
school corporation must establish that the increase is necessary
because employee health insurance costs increased over the
preceding year as a result of at least one (1) of the following:
(1) A health insurance premium increase that did not result
from a change in the design of the school corporation's health
insurance plan.
(2) An increase in the enrollment in the school corporation's
health insurance program.
In addition, before the state board of tax commissioners may grant
a general fund levy increase, the school corporation must establish
that the school corporation will be unable, without an increase, to
provide insurance coverage at the current level of coverage. The
state board of tax commissioners may grant a levy increase that is
less than the increase requested by the school corporation under
this section.
SOURCE: IC 6-3.5-8; (01)AM019905.2. -->
SECTION 2.
IC 6-3.5-8
IS ADDED TO THE INDIANA CODE
AS A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]:
Chapter 8. Local Option Income Tax for Education
Sec. 1. As used in this chapter, "adjusted gross income" has the
meaning set forth in
IC 6-3-1-3.5
(a).
Sec. 2. As used in this chapter, "apportioned net income"
means net income (as defined in
IC 6-3-8-2
) multiplied by:
(1) the assessed value of all property of a corporation that is:
(A) taxable under IC 6-1.1; and
(B) located in the school corporation; divided by
(2) the assessed value of all property of the corporation that
is:
(A) taxable under IC 6-1.1; and
(B) located in Indiana.
Sec. 3. As used in this chapter, "corporate taxpayer" means a
corporation that has net income for the taxable year under
IC 6-3-8.
Sec. 4. As used in this chapter, "department" refers to the
department of state revenue.
Sec. 5. As used in this chapter, "individual taxpayer" means an
individual who resides in a school corporation on the date
specified in section 16 of this chapter.
Sec. 6. As used in this chapter, "school corporation" means a
public school corporation established by Indiana law.
Sec. 7. (a) The governing body of a school corporation may
impose a local option income tax for education, which consists of
a tax on the adjusted gross income of individual taxpayers and on
the apportioned net income of corporations. If the tax is imposed,
the tax takes effect July 1 of the year that the ordinance imposing
the tax is adopted.
(b) Except as provided in subsection (c), the tax on individual
taxpayers and on corporate taxpayers may be imposed at a rate of
not more than twenty-five hundredths percent (0.25%). The rate
applies to the adjusted gross income of the school corporation's
individual taxpayers and to the apportioned net income of the
school corporation's corporate taxpayers. The rate must be the
same for individual taxpayers and for corporate taxpayers.
Sec. 8. (a) To impose the local option income tax for education,
a governing body of a school corporation must, after January 1 but
before May 1 of a year, adopt an ordinance. The ordinance must
substantially state the following:
"The ________ Governing Body imposes the local option
income tax for education on the individual taxpayers and
corporate taxpayers of the ________ (insert name of school
corporation). The local option income tax for education
consists of an individual income tax and a corporate surtax.
The income tax is imposed at a rate of _____ percent
(_____%) on the individual taxpayers and corporate
taxpayers of the school corporation. The income tax takes
effect July 1 of this year.".
(b) An ordinance adopted under this section takes effect July 1
of the year the ordinance is adopted.
Sec. 9. (a) The governing body of a school corporation may
increase or decrease the local option income tax for education rate
imposed on individual taxpayers and corporate taxpayers. To
increase or decrease the rate, the governing body must, after
January 1 but before May 1 of a year, adopt an ordinance. The
ordinance must substantially state the following:
"The ________ Governing Body increases (or decreases) the
local option income tax for education rate. The tax rate
imposed upon the individual taxpayers and on corporate
taxpayers of the school corporation is increased (or
decreased) from (insert current rate) to (insert proposed
rate). This tax rate increase (or decrease) takes effect July 1
of this year for individual taxpayers. The increased (or
decreased) rate takes effect January 1 of next year for
corporate taxpayers.".
(b) An ordinance adopted under this section takes effect July 1
of the year the ordinance is adopted.
Sec. 10. (a) The local option income tax for education imposed
by a governing body under this chapter remains in effect until
rescinded.
(b) A governing body may rescind the local option income tax
for education by adopting an ordinance to rescind the tax after
January 1 but before June 1 of a year.
(c) An ordinance adopted under this section takes effect July 1
of the year the ordinance is adopted.
Sec. 11. If the local option income tax for education is not in
effect during an individual taxpayer's or a corporate taxpayer's
entire taxable year, the amount of local option income tax for
education that the taxpayer owes for that taxable year equals the
product of:
(1) the amount of the local option income tax for education the
taxpayer would owe if the tax had been imposed during the
taxpayer's entire taxable year; multiplied by
(2) a fraction. The numerator equals the number of days
during the taxpayer's taxable year that the local option
income tax for education was in effect. The denominator
equals the total number of days in the taxpayer's taxable year.
Sec. 12. (a) If, for a particular taxable year, an individual
taxpayer is allowed, or an individual taxpayer and the individual
taxpayer's spouse who file a joint return are allowed, a credit for
the elderly or the totally disabled under Section 22 of the Internal
Revenue Code (as defined in
IC 6-3-1-11
), the individual taxpayer
is entitled, or the individual taxpayer and the individual taxpayer's
spouse are entitled, to a credit against their local option income tax
for education liability for that same taxable year. The amount of
the credit equals the lesser of the following:
(1) The product of:
(A) the credit for the elderly or the totally disabled for the
same taxable year; multiplied by
(B) a fraction. The numerator is the local option income
tax for education rate imposed against the individual
taxpayer or the individual taxpayer and the individual
taxpayer's spouse. The denominator is fifteen-hundredths
(0.15).
(2) The amount of local option income tax for education
imposed on the individual taxpayer or the individual taxpayer
and the individual taxpayer's spouse.
(b) If an individual taxpayer and the individual taxpayer's
spouse file a joint return and are subject to different local option
income tax for education tax rates for the same taxable year, they
shall compute the credit under this section by using the formula
provided in subsection (a), except that they shall use the average of
the two (2) tax rates imposed against them as the numerator
referred to in subsection (a)(1)(B).
Sec. 13. (a) A special account within the state general fund shall
be established for each school corporation adopting the local
option income tax for education. Revenue derived from the
imposition of the local option income tax for education by a school
corporation shall be deposited in that school corporation's account
in the state general fund.
(b) Income earned on money held in an account under
subsection (a) becomes a part of that account.
(c) Revenue remaining in an account established under
subsection (a) at the end of a state fiscal year does not revert to the
state general fund.
Sec. 14. Revenue derived from the imposition of the local option
income tax for education shall be distributed to the school
corporation that imposed the tax not more than thirty (30) days
after the tax is deposited within the school corporation's account.
Sec. 15. (a) The county auditor shall each year reduce the
general fund property tax levy of a school corporation receiving a
distribution under this chapter in that year. The school
corporation's general fund property tax levy shall be reduced by
the amount of the distribution received or to be received by the
school corporation during the year. The state board of tax
commissioners shall certify to the auditor of each county in which
a school corporation receiving a distribution is located the
property tax rate applicable to the school corporation's general
fund after the property tax reduction under this section.
(b) A school corporation shall treat a distribution that the school
corporation receives or is to receive during a particular calendar
year as a part of the school corporation's property tax levy for the
general fund for that same calendar year for purposes of fixing the
school corporation's budget and for purposes of the property tax
levy limits imposed by
IC 6-1.1-19
and the calculation of state
tuition support under
IC 21-3-1.7.
However, the distributions shall
not reduce the total county tax levy that is used to compute the
state property tax replacement credit under
IC 6-1.1-21.
In
addition, for the purposes of computing and distributing any excise
taxes or income taxes in which the distribution is based on
property taxes, the distributions shall be treated as though they
were property taxes that were due and payable during that same
calendar year.
(c) A school corporation may use distributions received under
this chapter only for the purpose of making employer contributions
to the Indiana state teachers' retirement fund on behalf of the
school corporation's employees who are members of that fund.
Sec. 16. (a) For purposes of this chapter, an individual shall be
treated as an individual taxpayer of the school corporation in
which the individual:
(1) maintains a residence, if the individual maintains only one
(1) residence in Indiana;
(2) if subdivision (1) does not apply, registers to vote;
(3) if subdivision (1) or (2) does not apply, registers the
individual's personal automobile; or
(4) if subdivision (1), (2), or (3) does not apply, spends the
majority of the individual's time in Indiana during the taxable
year in question.
(b) Whether an individual is an individual taxpayer is
determined on January 1 of the calendar year in which the
individual's taxable year commences. If an individual changes the
location of the individual's residence to another school corporation
in Indiana during a calendar year, the individual's liability for
local option income tax for education is not affected.
Sec. 17. (a) Except as otherwise provided in this chapter, all
provisions of the adjusted gross income tax law (IC 6-3)
concerning:
(1) definitions;
(2) declarations of estimated tax;
(3) filing of returns;
(4) remittances;
(5) incorporation of the provisions of the Internal Revenue
Code;
(6) penalties and interest;
(7) exclusion of military pay credits for withholding; and
(8) exemptions and deductions;
apply to the imposition, collection, and administration of the tax
imposed by this chapter. The local option income tax for education
is a listed tax and an income tax for purposes of IC 6-8.1.
(b) The provisions of
IC 6-3-1-3.5
(a)(5),
IC 6-3-3-3
,
IC 6-3-3-5
,
and
IC 6-3-5-1
do not apply to the tax imposed by this chapter.
(c) Each employer shall report to the department the amount of
withholdings attributable to each school corporation. This report
shall annually be submitted with the employer's withholding
report.
Sec. 18. Before February 1 of each year, the department shall
submit a report to each county treasurer indicating the balance in
the school corporation's education income tax account at the end
of the preceding year. The county treasurer shall forward a copy
of the report to the school corporation.
SOURCE: IC 6-8.1-1-1; (01)AM019905.3. -->
SECTION 3.
IC 6-8.1-1-1
, AS AMENDED BY P.L.181-1999,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 1. "Listed taxes" or "taxes" includes only the
pari-mutuel taxes (IC 4-31-9-3 through
IC 4-31-9-5
); the riverboat
admissions tax (IC 4-33-12); the riverboat wagering tax (IC 4-33-13);
the gross income tax (IC 6-2.1); the state gross retail and use taxes (IC
6-2.5); the adjusted gross income tax (IC 6-3); the supplemental net
income tax (IC 6-3-8); the county adjusted gross income tax (IC
6-3.5-1.1); the county option income tax (IC 6-3.5-6); the county
economic development income tax (IC 6-3.5-7);
the local option
income tax for education (IC 6-3.5-8); the auto rental excise tax (IC
6-6-9); the bank tax (IC 6-5-10); the savings and loan association tax
(IC 6-5-11); the production credit association tax (IC 6-5-12); the
financial institutions tax (IC 6-5.5); the gasoline tax (IC 6-6-1.1); the
alternative fuel permit fee (IC 6-6-2.1); the special fuel tax (IC
6-6-2.5); the motor carrier fuel tax (IC 6-6-4.1); a motor fuel tax
collected under a reciprocal agreement under
IC 6-8.1-3
; the motor
vehicle excise tax (IC 6-6-5); the commercial vehicle excise tax (IC
6-6-5.5); the hazardous waste disposal tax (IC 6-6-6.6); the cigarette
tax (IC 6-7-1); the beer excise tax (IC 7.1-4-2); the liquor excise tax (IC
7.1-4-3); the wine excise tax (IC 7.1-4-4); the hard cider excise tax (IC
7.1-4-4.5); the malt excise tax (IC 7.1-4-5); the petroleum severance
tax (IC 6-8-1); the various innkeeper's taxes (IC 6-9); the various
county food and beverage taxes (IC 6-9); the county admissions tax (IC
6-9-13 and
IC 6-9-28
); the oil inspection fee (IC 16-44-2); the
emergency and hazardous chemical inventory form fee (IC 6-6-10); the
penalties assessed for oversize vehicles (IC 9-20-3 and IC 9-30); the
fees and penalties assessed for overweight vehicles (IC 9-20-4 and
IC 9-30); the underground storage tank fee (IC 13-23); the solid waste
management fee (IC 13-20-22); and any other tax or fee that the
department is required to collect or administer.
SOURCE: IC 20-5-4-1.7; (01)AM019905.4. -->
SECTION 4.
IC 20-5-4-1.7
IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2001]: Sec. 1.7. (a) For purposes of this section, "retirement or
severance liability" means the payments anticipated to be required
to be made to employees of a school corporation upon or after the
termination of their employment by the school corporation under
an existing or previous employment agreement.
(b) In addition to the purposes set forth in section 1 of this
chapter, a school corporation may issue bonds to implement
solutions to contractual retirement or severance liability. The
issuance of bonds for this purpose is subject to the following
limitations:
(1) A school corporation may issue bonds for the purpose
described in this section only one (1) time.
(2) The solution to which the bonds are contributing must be
reasonably expected to reduce the school corporation's
existing unfunded contractual liability for retirement or
severance payments, as of June 30, 1998.
(3) The amount of the bonds that may be issued for the
purpose described in this section may not exceed two percent
(2%) of the total assessed valuation of property in the school
corporation.
(4) Each year that a debt service levy is needed under this
section, the school corporation shall reduce its total property
tax levy for the school corporation's transportation, capital
projects, or art association and historical society funds in an
amount equal to the property tax levy needed for the debt
service under this section. The property tax rate for each of
these funds shall be reduced each year until the bonds are
retired.
(c) Bonds issued for the purpose described in this section shall
be issued in the same manner as other bonds of the school
corporation.
(d) Bonds issued under this section must be issued before
December 31, 2003.".
SOURCE: Page 2, line 2; (01)AM019905.2. -->
Page 2, line 2, delete "actuarially pre-fund" and insert " fund on an
actuarially sound basis".
Page 2, line 7, delete "pre-fund" and insert " fund on an actuarially
sound basis".
Page 2, after line 11, begin a new paragraph and insert:
SOURCE: IC 21-2-15.5; (01)AM019905.6. -->
"SECTION 6.
IC 21-2-15.5
IS ADDED TO THE INDIANA CODE
AS A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2001]:
Chapter 15.5. Health Insurance and Retirement Benefit Fund
Sec. 1. As used in this chapter, "fund" refers to a health
insurance and retirement benefit fund established under section 2
of this chapter.
Sec. 2. A school corporation may establish a health insurance
and retirement benefit fund.
Sec. 3. A school corporation may use money in a fund only for
the purposes of paying the following:
(1) Employee health insurance costs.
(2) Benefits under a retirement or severance plan established
by the school corporation.
Sec. 4. A school corporation may for a year impose a property
tax levy for its health insurance and retirement benefit fund that
is equal to the sum of the following:
(1) If a school corporation has not imposed the maximum
property tax rate that it may impose for the school
corporation's capital projects fund under
IC 21-2-15
for a
year, the amount that would be raised from a property tax
rate that does not exceed the lesser of:
(A) eight and thirty-three hundredths cents ($0.0833); or
(B) the difference between:
(i) the maximum property tax rate that may be imposed
for the school corporation's capital projects fund under
IC 21-2-15
for the year; minus
(ii) the property tax rate that is imposed for the school
corporation's capital projects fund under
IC 21-2-15
for
the year.
(2) If a school corporation has not imposed the school
corporation's maximum permissible transportation fund levy
under
IC 21-2-11.5
for the year, an amount equal to the
difference between:
(A) the school corporation's maximum permissible
transportation fund levy under
IC 21-2-11.5
; minus
(B) the transportation fund levy imposed by the school
corporation for the year under
IC 21-2-11.5.
(3) If a school corporation has not imposed the maximum
property tax rate that it may impose for the school
corporation's historical society fund under
IC 20-5-17.5
for a
year, the amount that would be raised from a property tax
rate equal to the difference between:
(A) maximum property tax rate that it may impose for the
school corporation's historical society fund under
IC 20-5-17.5
for the year; minus
(B) property tax rate imposed by the school corporation
for its historical society fund under
IC 20-5-17.5
for the
year.
(4) If a school corporation has not imposed the maximum
property tax rate that it may impose for the school
corporation's art association fund under
IC 20-5-17.5
for a
year, the amount that would be raised from a property tax
rate equal to the difference between:
(A) maximum property tax rate that it may impose for the
school corporation's art association fund under
IC 20-5-17.5
for the year; minus
(B) property tax rate imposed by the school corporation
for its art association fund under
IC 20-5-17.5
for the year.
Sec. 5. Interest earned on amounts in the fund shall be deposited
in the fund.
SOURCE: IC 20-5-4-1.7; (01)AM019905.7. -->
SECTION 7.
IC 20-5-4-1.7
IS REPEALED [EFFECTIVE
DECEMBER 31, 2003].
SOURCE: ; (01)AM019905.8. -->
SECTION 8. [EFFECTIVE DECEMBER 31, 2003]
Notwithstanding the repeal of
IC 20-5-4-1.7
, as added by this act,
the following provisions apply to bonds issued under
IC 20-5-4-1.7
,
as added by this act, before December 31, 2003:
(1) The bonds remain valid and binding obligations of the
school corporation that issued them, as if
IC 20-5-4-1.7
had
not been repealed.
(2) Each year that a debt service levy is needed for the bonds,
the school corporation that issued the bonds shall reduce its
total property tax levy for the school corporation's other
funds in an amount equal to the property tax levy needed for
the debt service on the bonds.
SOURCE: ; (01)AM019905.9. -->
SECTION 9. [EFFECTIVE JULY 1, 2001] (a)
IC 6-1.1-19-5.6
, as
added by this act, applies to property taxes first due and payable
after December 31, 2001.
(b) This SECTION expires January 1, 2003.
SOURCE: ; (01)AM019905.10. -->
SECTION 10. [EFFECTIVE JULY 1, 2001]
IC 21-2-15.5
, as added
by this act, applies only to property taxes first due and payable
after December 31, 2001.
SOURCE: ; (01)AM019905.11. -->
SECTION 11.
An emergency is declared for this act.".
Renumber all SECTIONS consecutively.
(Reference is to SB 199 as reprinted February 13, 2001.)
and when so amended that said bill do pass.
__________________________________
AM019905/DI 73 2001