First Regular Session 112th General Assembly (2001)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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HOUSE ENROLLED ACT No. 1710
AN ACT to amend the Indiana Code concerning taxation.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 6-3.5-1.1-2; (01)HE1710.1.1. -->
SECTION 1. IC 6-3.5-1.1-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2. (a) The county
council of any county in which the county option income tax will not
be in effect on July 1 of a year under an ordinance adopted during a
previous calendar year may impose the county adjusted gross income
tax on the adjusted gross income of county taxpayers of its county
effective July 1 of that year.
(b) Except as provided in section 2.5,
2.7, or 3.5 of this chapter, the
county adjusted gross income tax may be imposed at a rate of one-half
of one percent (0.5%), three-fourths of one percent (0.75%), or one
percent (1%) on the adjusted gross income of resident county taxpayers
of the county. Any county imposing the county adjusted gross income
tax must impose the tax on the nonresident county taxpayers at a rate
of one-fourth of one percent (0.25%) on their adjusted gross income.
If the county council elects to decrease the county adjusted gross
income tax, the county council may decrease the county adjusted gross
income tax rate in increments of one-tenth of one percent (0.1%).
(c) To impose the county adjusted gross income tax, the county
council must, after January 1 but before April 1 of a year, adopt an
ordinance. The ordinance must substantially state the following:
"The ________ County Council imposes the county adjusted
gross income tax on the county taxpayers of ________ County.
The county adjusted gross income tax is imposed at a rate of
_____ percent (_____%) on the resident county taxpayers of the
county and one-fourth of one percent (0.25%) on the nonresident
county taxpayers of the county. This tax takes effect July 1 of this
year.".
(d) Any ordinance adopted under this section takes effect July 1 of
the year the ordinance is adopted.
(e) The auditor of a county shall record all votes taken on
ordinances presented for a vote under the authority of this section and
immediately send a certified copy of the results to the department by
certified mail.
(f) If the county adjusted gross income tax had previously been
adopted by a county under IC 6-3.5-1 (before its repeal on March 15,
1983) and that tax was in effect at the time of the enactment of this
chapter, then the county adjusted gross income tax continues in that
county at the rates in effect at the time of enactment until the rates are
modified or the tax is rescinded in the manner prescribed by this
chapter. If a county's adjusted gross income tax is continued under this
subsection, then the tax shall be treated as if it had been imposed under
this chapter and is subject to rescission or reduction as authorized in
this chapter.
SOURCE: IC 6-3.5-1.1-2.7; (01)HE1710.1.2. -->
SECTION 2. IC 6-3.5-1.1-2.7 IS ADDED TO THE INDIANA
CODE AS A
NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]:
Sec. 2.7. (a) This section applies
to a county having a population of more than sixty-eight thousand
(68,000) but less than seventy-three thousand (73,000).
(b) The county council may, by ordinance, determine that
additional county adjusted gross income tax revenue is needed in
the county to:
(1) finance, construct, acquire, improve, renovate, or equip
the county jail and related buildings and parking facilities,
including costs related to the demolition of existing buildings
and the acquisition of land; and
(2) repay bonds issued, or leases entered into, for
constructing, acquiring, improving, renovating, and equipping
the county jail and related buildings and parking facilities,
including costs related to the demolition of existing buildings
and the acquisition of land.
(c) In addition to the rates permitted by section 2 of this
chapter, the county council may impose the county adjusted gross
income tax at a rate of:
(1) fifteen-hundredths percent (0.15%);
(2) two-tenths percent (0.2%); or
(3) twenty-five hundredths percent (0.25%);
on the adjusted gross income of county taxpayers if the county
council makes the finding and determination set forth in subsection
(b). The tax imposed under this section may be imposed only until
the later of the date on which the financing on, acquisition,
improvement, renovation, and equipping described in subsection
(b) is completed or the date on which the last of any bonds issued
or leases entered into to finance the construction, acquisition,
improvement, renovation, and equipping described in subsection
(b) are fully paid. The term of the bonds issued (including any
refunding bonds) or a lease entered into under subsection (b)(2)
may not exceed twenty (20) years.
(d) If the county council makes a determination under
subsection (b), the county council may adopt a tax rate under
subsection (b). The tax rate may not be imposed at a rate greater
than is necessary to pay the costs of financing, acquiring,
improving, renovating, and equipping the county jail and related
buildings and parking facilities, including costs related to the
demolition of existing buildings and the acquisition of land.
(e) The county treasurer shall establish a county jail revenue
fund to be used only for purposes described in this section. County
adjusted gross income tax revenues derived from the tax rate
imposed under this section shall be deposited in the county jail
revenue fund before making a certified distribution under section
11 of this chapter.
(f) County adjusted gross income tax revenues derived from the
tax rate imposed under this section:
(1) may only be used for the purposes described in this
section;
(2) may not be considered by the state board of tax
commissioners in determining the county's maximum
permissible property tax levy limit under IC 6-1.1-18.5; and
(3) may be pledged to the repayment of bonds issued, or leases
entered into, for purposes described in subsection (b).
(g) A county described in subsection (a) possesses unique
economic development challenges due to underemployment in
relation to similarly situated counties. Maintaining low property
tax rates is essential to economic development and the use of
county adjusted gross income tax revenues as provided in this
chapter to pay any bonds issued or leases entered into to finance
the construction, acquisition, improvement, renovation, and
equipping described under subsection (b), rather than use of
property taxes, promotes that purpose.
(h) Notwithstanding any other law, funds accumulated from the
county adjusted gross income tax imposed under this section after:
(1) the redemption of bonds issued; or
(2) the final payment of lease rentals due under a lease
entered into under this section;
shall be transferred to the county highway fund to be used for
construction, resurfacing, restoration, and rehabilitation of county
highways, roads, and bridges.
SOURCE: IC 6-3.5-1.1-10; (01)HE1710.1.3. -->
SECTION 3. IC 6-3.5-1.1-10 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 10. (a) One-half
(1/2) of each adopting county's certified distribution for a calendar year
shall be distributed from its account established under section 8 of this
chapter to the appropriate county treasurer on May 1 and the other
one-half (1/2) on November 1 of that calendar year.
(b) Except for:
(1) revenue that must be used to pay the costs of operating a jail
and juvenile detention center under section 2.5(d) of this chapter;
(2) revenue that must be used to pay the costs of construction,
improvement, or renovation of a jail under section 2.7 of this
chapter; or
(3) revenue that must be used to pay the costs of operating and
maintaining a jail and justice center under section 3.5(d) of this
chapter;
distributions made to a county treasurer under subsection (a) shall be
treated as though they were property taxes that were due and payable
during that same calendar year. The certified distribution shall be
distributed and used by the taxing units and school corporations as
provided in sections 11 through 15 of this chapter.
(c) All distributions from an account established under section 8 of
this chapter shall be made by warrants issued by the auditor of the state
to the treasurer of the state ordering the appropriate payments.
SOURCE: IC 6-3.5-1.1-11; (01)HE1710.1.4. -->
SECTION 4. IC 6-3.5-1.1-11 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 11. (a) Except for:
(1) revenue that must be used to pay the costs of operating a jail
and juvenile detention center under section 2.5(d) of this chapter;
(2) revenue that must be used to pay the costs of construction,
improvement, or renovation of a jail under section 2.7 of this
chapter; or
(3) revenue that must be used to pay the costs of operating and
maintaining a jail and justice center under section 3.5(d) of this
chapter;
the certified distribution received by a county treasurer shall, in the
manner prescribed in this section, be allocated, distributed, and used
by the civil taxing units and school corporations of the county as
certified shares and property tax replacement credits.
(b) Before August 2 of each calendar year, each county auditor shall
determine the part of the certified distribution for the next succeeding
calendar year that will be allocated as property tax replacement credits
and the part that will be allocated as certified shares. The percentage
of a certified distribution that will be allocated as property tax
replacement credits or as certified shares depends upon the county
adjusted gross income tax rate for resident county taxpayers in effect
on August 1 of the calendar year that precedes the year in which the
certified distribution will be received. The percentages are set forth in
the following table:
PROPERTY
COUNTY
TAX
ADJUSTED GROSS
REPLACEMENT
CERTIFIED
INCOME TAX RATE
CREDITS
SHARES
0.5%
50%
50%
0.75%
33 1/3%
66 2/3%
1%
25%
75%
(c) The part of a certified distribution that constitutes property tax
replacement credits shall be distributed as provided under sections 12,
13, and 14 of this chapter.
(d) The part of a certified distribution that constitutes certified
shares shall be distributed as provided by section 15 of this chapter.
SOURCE: IC 6-3.5-1.1-23; (01)HE1710.1.5. -->
SECTION 5. IC 6-3.5-1.1-23 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 23. (a) A pledge of county
adjusted gross income tax revenues under this chapter is
enforceable in accordance with IC 5-1-14.
(b) With respect to obligations for which a pledge has been
made under this chapter, the general assembly covenants with the
county and the purchasers or owners of those obligations that this
chapter will not be repealed or amended in any manner that will
adversely affect the collection of the tax imposed under this
chapter as long as the principal of or interest on those obligations
is unpaid.
SOURCE: IC 6-3.5-7-5; (01)HE1710.1.6. -->
SECTION 6. IC 6-3.5-7-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5. (a) Except as
provided in subsection (c), the county economic development income
tax may be imposed on the adjusted gross income of county taxpayers.
The entity that may impose the tax is:
(1) the county income tax council (as defined in IC 6-3.5-6-1) if
the county option income tax is in effect on January 1 of the year
the county economic development income tax is imposed;
(2) the county council if the county adjusted gross income tax is
in effect on January 1 of the year the county economic
development tax is imposed; or
(3) the county income tax council or the county council,
whichever acts first, for a county not covered by subdivision (1)
or (2).
To impose the county economic development income tax, a county
income tax council shall use the procedures set forth in IC 6-3.5-6
concerning the imposition of the county option income tax.
(b) Except as provided in subsections (c) and (g), the county
economic development income tax may be imposed at a rate of:
(1) one-tenth percent (0.1%);
(2) two-tenths percent (0.2%);
(3) twenty-five hundredths percent (0.25%);
(4) three-tenths percent (0.3%);
(5) thirty-five hundredths percent (0.35%);
(6) four-tenths percent (0.4%);
(7) forty-five hundredths percent (0.45%); or
(8) five-tenths percent (0.5%);
on the adjusted gross income of county taxpayers.
(c) Except as provided in subsection (h), or (i), or (j), the county
economic development income tax rate plus the county adjusted gross
income tax rate, if any, that are in effect on January 1 of a year may not
exceed one and twenty-five hundredths percent (1.25%). Except as
provided in subsection (g), the county economic development tax rate
plus the county option income tax rate, if any, that are in effect on
January 1 of a year may not exceed one percent (1%).
(d) To impose the county economic development income tax, the
appropriate body must, after January 1 but before April 1 of a year,
adopt an ordinance. The ordinance must substantially state the
following:
"The ________ County _________ imposes the county economic
development income tax on the county taxpayers of _________
County. The county economic development income tax is imposed at
a rate of _________ percent (____%) on the county taxpayers of the
county. This tax takes effect July 1 of this year.".
(e) Any ordinance adopted under this section takes effect July 1 of
the year the ordinance is adopted.
(f) The auditor of a county shall record all votes taken on ordinances
presented for a vote under the authority of this section and immediately
send a certified copy of the results to the department by certified mail.
(g) This subsection applies to a county having a population of more
than one hundred twenty-nine thousand (129,000) but less than one
hundred thirty thousand six hundred (130,600). In addition to the rates
permitted by subsection (b), the:
(1) county economic development income tax may be imposed at
a rate of:
(A) fifteen-hundredths percent (0.15%);
(B) two-tenths percent (0.2%); or
(C) twenty-five hundredths percent (0.25%); and
(2) county economic development income tax rate plus the county
option income tax rate that are in effect on January 1 of a year
may equal up to one and twenty-five hundredths percent (1.25%);
if the county income tax council makes a determination to impose rates
under this subsection and section 22 of this chapter.
(h) For a county having a population of more than thirty-seven
thousand (37,000) but less than thirty-seven thousand eight hundred
(37,800), the county economic development income tax rate plus the
county adjusted gross income tax rate that are in effect on January 1 of
a year may not exceed one and thirty-five hundredths percent (1.35%)
if the county has imposed the county adjusted gross income tax at a rate
of one and one-tenth percent (1.1%) under IC 6-3.5-1.1-2.5.
(i) For a county having a population of more than twelve thousand
six hundred (12,600) but less than thirteen thousand (13,000), the
county economic development income tax rate plus the county adjusted
gross income tax rate that are in effect on January 1 of a year may not
exceed one and fifty-five hundredths percent (1.55%).
(j) For a county having a population of more than sixty-eight
thousand (68,000) but less than seventy-three thousand (73,000),
the county economic development income tax rate plus the county
adjusted gross income tax rate that are in effect on January 1 of a
year may not exceed one and five-tenths percent (1.5%).
SOURCE: ; (01)HE1710.1.7. -->
SECTION 7. [EFFECTIVE UPON PASSAGE] ( a)
Notwithstanding IC 6-3.5-1.1-3, the county council of a county
described in IC 6-3.5-1.1-2.7, as added by this act, may adopt an
ordinance to increase the county's county adjusted gross income
tax rate after March 31, 2001, and before September 20, 2001.
(b) Notwithstanding IC 6-3.5-1.1-3, an ordinance adopted under
this SECTION takes effect January 1, 2002.
(c) This SECTION expires January 2, 2002.
SOURCE: ; (01)HE1710.1.8. -->
SECTION 8.
An emergency is declared for this act.
HEA 1710
Figure
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