MR. PRESIDENT:
The Senate Committee on Finance, to which was referred House Bill No. 1902, has had the same under
consideration and begs leave to report the same back to the Senate with the recommendation that said bill
be AMENDED as follows:
quarter shall be paid to the county in which the riverboat is
docked. In the case of a county described in subdivision (1)(B),
this one dollar ($1) is in addition to the one dollar ($1) received
under subdivision (1)(B).
(3) Ten cents ($0.10) of the admissions tax collected by the
licensed owner for each person embarking on a riverboat during
the quarter shall be paid to the county convention and visitors
bureau or promotion fund for the county in which the riverboat is
docked.
(4) Fifteen cents ($0.15) of the admissions tax collected by the
licensed owner for each person embarking on a riverboat during
a quarter shall be paid to the state fair commission, for use in any
activity that the commission is authorized to carry out under
IC 15-1.5-3.
(5) Ten cents ($0.10) of the admissions tax collected by the
licensed owner for each person embarking on a riverboat during
the quarter shall be paid to the division of mental health. The
division shall allocate at least twenty-five percent (25%) of the
funds derived from the admissions tax to the prevention and
treatment of compulsive gambling.
(6) Sixty-five cents ($0.65) of the admissions tax collected by the
licensed owner for each person embarking on a riverboat during
the quarter shall be paid to the Indiana horse racing commission
to be distributed as follows, in amounts determined by the Indiana
horse racing commission, for the promotion and operation of
horse racing in Indiana:
(A) To one (1) or more breed development funds established
by the Indiana horse racing commission under
IC 4-31-11-10.
(B) To a racetrack that was approved by the Indiana horse
racing commission under IC 4-31. The commission may make
a grant under this clause only for purses, promotions, and
routine operations of the racetrack. No grants shall be made
for long term capital investment or construction and no grants
shall be made before the racetrack becomes operational and is
offering a racing schedule.
(c) With respect to tax revenue collected from a riverboat that
operates on Patoka Lake, the treasurer of state shall quarterly pay the
following amounts:
(1) The counties described in
IC 4-33-1-1
(3) shall receive one
dollar ($1) of the admissions tax collected for each person
embarking on the riverboat during the quarter. This amount shall
be divided equally among the counties described in
IC 4-33-1-1
(3).
(2) The Patoka Lake development account established under
IC 4-33-15
shall receive one dollar ($1) of the admissions tax
collected for each person embarking on the riverboat during the
quarter.
(3) The resource conservation and development program that:
(A) is established under 16 U.S.C. 3451 et seq.; and
(B) serves the Patoka Lake area;
shall receive forty cents ($0.40) of the admissions tax collected
for each person embarking on the riverboat during the quarter.
(4) The state general fund shall receive fifty cents ($0.50) of the
admissions tax collected for each person embarking on the
riverboat during the quarter.
(5) The division of mental health shall receive ten cents ($0.10)
of the admissions tax collected for each person embarking on the
riverboat during the quarter. The division shall allocate at least
twenty-five percent (25%) of the funds derived from the
admissions tax to the prevention and treatment of compulsive
gambling.
(d) Money paid to a unit of local government under subsection
(b)(1) through (b)(2) or subsection (c)(1):
(1) must be paid to the fiscal officer of the unit and may be
deposited in the unit's general fund or riverboat fund established
under
IC 36-1-8-9
, or both;
(2) may not be used to reduce the unit's maximum or actual levy
under
IC 6-1.1-18.5
, but may be used at the discretion of the
unit to reduce the property tax levy of the unit for a
particular year; and
(3) may be used for any legal or corporate purpose of the unit,
including the pledge of money to bonds, leases, or other
obligations under
IC 5-1-14-4
; and
(4) is considered miscellaneous revenue.
(e) Money paid by the treasurer of state under subsection (b)(3)
shall be:
(1) deposited in:
(A) the county convention and visitor promotion fund; or
(B) the county's general fund if the county does not have a
convention and visitor promotion fund; and
(2) used only for the tourism promotion, advertising, and
economic development activities of the county and community.
(f) Money received by the division of mental health under
subsections (b)(5) and (c)(5):
IC 4-13-2
on a contract of the state board of tax commissioners
under this section:
(1) The commissioner of the department of administration.
(2) The director of the budget agency.
(3) The attorney general.
(4) The governor.
(i) With respect to a general reassessment of real property to be
completed under
IC 6-1.1-4-4
for an assessment date after the
March 1, 2002, assessment date, the state board of tax
commissioners shall contract with the firm referred to in
subsection (c) to initiate a review with respect to the real property
in a qualifying county or a township in a qualifying county, or a
portion of the real property in a qualifying county or a township in
a qualifying county. The contractor shall determine for the real
property under consideration and for the qualifying county or
township the variance between:
(1) the total assessed valuation of the real property within the
qualifying county or township; and
(2) the total assessed valuation that would result if the real
property within the qualifying county or township were
valued in the manner provided by law.
(j) If:
(1) the variance determined under subsection (i) exceeds ten
percent (10%); and
(2) the state board of tax commissioners determines after
holding hearings on the matter that a special reassessment
should be conducted;
the state board shall contract for a special reassessment to be
conducted by the firm referred to in subsection (c) to correct the
valuation of the property.
(k) If the variance determined under subsection (i) is ten percent
(10%) or less, the state board of tax commissioners shall determine
whether to correct the valuation of the property under:
(1) sections 9 and 10 of this chapter; or
(2)
IC 6-1.1-14-10
and
IC 6-1.1-14-11.
(l) The state board of tax commissioners shall give notice by
mail to a taxpayer of a hearing concerning the state board's intent
to cause the taxpayer's property to be reassessed under this
section. The time fixed for the hearing must be at least ten (10)
days after the day the notice is mailed. The state board may
conduct a single hearing under this section with respect to multiple
properties. The notice must state:
(1) the time of the hearing;
(2) the location of the hearing; and
(3) that the purpose of the hearing is to hear taxpayers'
comments and objections with respect to the state board's
intent to reassess property under this chapter.
(m) If the state board of tax commissioners determines after the
hearing that property should be reassessed under this section, the
state board shall:
(1) cause the property to be reassessed under this section;
(2) mail a certified notice of its final determination to the
county auditor of the qualifying county in which the property
is located; and
(3) notify the taxpayer by mail of its final determination.
(n) A reassessment may be made under this section only if the
notice of the final determination under subsection (l) is given to the
taxpayer within the same period prescribed in
IC 6-1.1-9-3
or
IC 6-1.1-9-4.
(o) If the state board of tax commissioners contracts for a
special reassessment of property under this section, the state board
shall forward the bill for services of the contractor to the county
auditor, and the county shall pay the bill from the county
reassessment fund.
(p) The provisions of this section are severable in the manner
provided in
IC 1-1-1-8
(b).".
Page 3, delete lines 9 through 42, begin a new paragraph and insert:
" Chapter 6.8. Assessments in Qualifying Counties
Sec. 1. As used in this chapter, "agreed to procedures report"
means a report based on procedures agreed to by an independent
nationally recognized certified public accounting firm and the state
board of tax commissioners on:
(1) the accuracy of the implementation of minimum assessed
values under sections 6 and 7 of this chapter in a qualifying
county by:
(A) the township assessors of the townships in the
qualifying county; and
(B) the county property tax assessment board of appeals of
the qualifying county;
(2) the accurate application of the rule governing the
assessment of real property in the qualifying county;
(3) the accurate conduct of equalization under
IC 6-1.1-13-6
in the qualifying county; and
(4) the completeness of the records of the county auditor in
assigning an identifying number under
IC 6-1.1-5-2
to each
parcel of real property in the qualifying county.
Sec. 2. As used in this chapter, "legislative body" has the
meaning set forth in
IC 36-1-2-9.
Sec. 3. As used in this chapter, "qualifying county" means a
county having a population of more than four hundred thousand
(400,000) but less than seven hundred thousand (700,000).
Sec. 4. As used in this chapter, "single family residence" means
a building designed to house one (1) family.
Sec. 5. As used in this chapter, "single family residence land"
means the parcel of land on which a single family residence:
(1) is located; or
(2) has been located within the ten (10) years immediately
preceding the assessment date for which a minimum assessed
value is determined under this chapter.
Sec. 6. The minimum assessed value of a single family residence
located in a qualifying county is seventeen thousand dollars
($17,000).
Sec. 7. The minimum assessed value of single family residence
land located in a qualifying county is three thousand dollars
($3,000).
Sec. 8. A minimum assessed value under this chapter is
presumed to be accurate unless the inaccuracy of the minimum
assessment is established by clear and convincing evidence.
Sec. 9. With respect to each year in which a general
reassessment of real property is completed as required under
IC 6-1.1-4-4
, the state board of tax commissioners shall contract
for an independent nationally recognized certified public
accounting firm to:
(1) conduct a review of the accuracy of the implementation
referred to in section 1(1) of this chapter;
(2) conduct a review of the accuracy of the application of the
rule governing the assessment of real property in the
qualifying county;
(3) conduct a review of the accuracy of the conduct of
equalization under
IC 6-1.1-13-6
in the qualifying county;
(4) conduct a review of the completeness of the records of the
county auditor in assigning an identifying number under
IC 6-1.1-5-2
to each parcel of real property in the qualifying
county; and
(5) prepare an agreed to procedures report.
Sec. 10. The state board of tax commissioners shall contract
under section 9 of this chapter with the same firm that contracts
with the board under
IC 6-1.1-4-32
(c) and
IC 6-1.1-6.9.
Sec. 11. The firm that prepares the agreed to procedures report
shall submit the report to:
(1) the legislative body of the qualifying county;
(2) the prosecuting attorney of the qualifying county;
(3) the state board of tax commissioners; and
(4) the attorney general.
Sec. 12. If the state board of tax commissioners determines from
the agreed to procedures report that:
(1) the minimum assessed values established in this chapter
were not accurately applied in the qualifying county, or in any
part of the qualifying county;
(2) the rule governing the assessment of real property was not
accurately applied in the qualifying county, or in any part of
the qualifying county; or
(3) equalization was not properly conducted under
IC 6-1.1-13-6
in the qualifying county, or in any part of the
qualifying county;
the state board shall implement the proper values that would result
from the correct application of the minimum assessed values
established in this chapter and the rule governing the assessment
of real property in the qualifying county.
Sec. 13. If the state board of tax commissioners determines from
the agreed to procedures report that any parcel of real property
has not been assigned an identifying number under
IC 6-1.1-5-2
and does not appear on the records of the county auditor, the state
board shall ensure that the parcel is properly identified and is
properly assessed under the rule governing the assessment of real
property in the qualifying county.
Sec. 14. The provisions of this chapter are severable in the
manner provided in
IC 1-1-1-8
(b).
county of maximum combined deductions under section 7 of
this chapter;
(2) the implementation of the limitation on net assessed value
under section 8 of this chapter by:
(A) the township assessors of the townships in the
qualifying county;
(B) the county auditor of the qualifying county; and
(C) the county property tax assessment board of appeals of
the qualifying county;
(3) the implementation by the county auditor of the qualifying
county of the limitations under
IC 6-1.1-12
on the application
against the assessed values of multiple parcels of deductions
under a section in an amount that exceeds the maximum
deduction amount stated in the section;
(4) the implementation by the county property tax assessment
board of appeals of the qualifying county of the exemption
limitation under
IC 6-1.1-10-16
(d)(3); and
(5) the correct determination and application of all
exemptions on real property under
IC 6-1.1-10.
Sec. 2. As used in this chapter, "legislative body" has the
meaning set forth in
IC 36-1-2-9.
Sec. 3. As used in this chapter, "net assessed value" means the
remainder of:
(1) the combined assessed value of a single family residence
and the single family residence land upon which the residence
is located; minus
(2) the combined deductions under
IC 6-1.1-12
applicable to
the combined assessed value of the single family residence and
the single family residence land upon which the residence is
located.
Sec. 4. As used in this chapter, "qualifying county" means a
county having a population of more than four hundred thousand
(400,000) but less than seven hundred thousand (700,000).
Sec. 5. As used in this chapter, "single family residence" means
a building designed to house one (1) family.
Sec. 6. As used in this chapter, "single family residence land"
means the parcel of land on which a single family residence:
(1) is located; or
(2) has been located within the ten (10) years immediately
preceding the assessment date for which a minimum assessed
value is determined under this chapter.
Sec. 7. The maximum combined deductions under
IC 6-1.1-12
applicable to the combined assessed value of a single family
residence and the single family residence land upon which the
residence is located in a qualifying county is twelve thousand
dollars ($12,000).
Sec. 8. The application of deductions under
IC 6-1.1-12
may not
reduce the net assessed value of a single family residence and the
single family residence land upon which the residence is located in
a qualifying county to an amount less than eight thousand dollars
($8,000).
Sec. 9. With respect to each year in which a general
reassessment of real property is completed as required under
IC 6-1.1-4-4
, the state board of tax commissioners shall contract
for an independent nationally recognized certified public
accounting firm to:
(1) conduct a review of the accuracy of:
(A) the implementations referred to in section 1(1) through
1(4) of this chapter; and
(B) the correct determination and application of
exemptions referred to in section 1(5) of this chapter; and
(2) prepare an agreed to procedures report.
Sec. 10. The state board of tax commissioners shall contract
under section 9 of this chapter with the same firm that contracts
with the board under
IC 6-1.1-4-32
(c) and
IC 6-1.1-6.8.
Sec. 11. The firm that prepares the agreed to procedures report
shall submit the report to:
(1) the legislative body of the qualifying county;
(2) the prosecuting attorney of the qualifying county;
(3) the state board of tax commissioners; and
(4) the attorney general.
Sec. 12. If the state board of tax commissioners determines from
the agreed to procedures report that the implementations referred
to in section 1(1) through 1(4) of this chapter were not accurate in
the qualifying county, or in any part of the qualifying county, the
state board shall correct the implementations. If the state board of
tax commissioners determines from the agreed to procedures
report that the determination and application of exemptions
referred to in section 1(5) of this chapter were not correct in the
qualifying county, or in any part of the qualifying county, the state
board shall correct the exemptions. The state board of tax
commissioners may correct the implementations and exemptions
subject to the same authority and limitations that apply to the
reassessment of property by the state board under
IC 6-1.1-14-10.
eighteen thousand dollars ($18,000) for the taxable year, the
amount of the credit is equal to the lesser of:
(1) three hundred dollars ($300); or
(2) the amount of property taxes described in section 4(2) of
this chapter paid by the individual in the taxable year.
(c) In the case of an individual with earned income that is at
least eighteen thousand dollars ($18,000) but less than eighteen
thousand six hundred dollars ($18,600) for the taxable year, the
amount of the credit is equal to the lesser of the following:
(1) An amount determined under the following STEPS:
STEP ONE: Determine the result of:
(i) eighteen thousand six hundred dollars ($18,600);
minus
(ii) the individual's earned income for the taxable year.
STEP TWO: Determine the result of:
(i) the STEP ONE amount; multiplied by
(ii) five-tenths (0.5).
(2) The amount of property taxes described in section 4(2) of
this chapter paid by the individual in the taxable year.
(d) If the amount of the credit under this chapter exceeds the
individual's state tax liability for the taxable year, the excess shall
be refunded to the taxpayer.
Sec. 6. To obtain the credit provided by this chapter, an
individual must file with the department information concerning
the property taxes paid on the individual's homestead and any
other information required by the department.
Sec. 7. (a) The department shall before July 1 of each year
determine the amount of credits allowed under this chapter for
taxable years ending before January 1 of the year.
(b) If the county described in section 4(2)(B) of this chapter has
adopted a county adjusted gross income tax under
IC 6-3.5-1.1
or
a county option income tax under
IC 6-3.5-6
, the amount
determined by the department under subsection (a) shall be
deducted during the year from:
(1) the special account within the state general fund
established for the county under
IC 6-3.5-1.1-8
, if the county
has adopted the county adjusted gross income tax; or
(2) the special account within the state general fund
established for the county under 6-3.5-6-16, if the county has
adopted the county option income tax.
(c) The amounts deducted from the county's special account
under this section shall be transferred to the state general fund.
The amount of the certified distributions that would otherwise be
payable to the county during the year from county adjusted gross
income tax or county option income tax shall be reduced by the
amount deducted from the county's special account.
(d) If the county described in section 4(2)(B) of this chapter has
not adopted a county adjusted gross income tax under
IC 6-3.5-1.1
or a county option income tax under
IC 6-3.5-6
, or if the amount
determined under subsection (a) exceeds the balance in the
county's special account under
IC 6-3.5-1.1-8
or
IC 6-3.5-6-16
, an
amount equal to:
(1) the amount determined under subsection (a) for the year;
minus
(2) the amounts deducted during the year from the county's
special account under
IC 6-3.5-1.1-8
or
IC 6-3.5-6-16
, if the
county has adopted a county adjusted gross income tax or a
county option income tax;
shall be deducted from the riverboat admissions tax revenue
otherwise payable to the county under
IC 4-33-12-6
(b)(2) and shall
instead be paid to the state general fund.
same date in:
(A) a county in which the county option income tax, the
county adjusted gross income tax, or the county economic
development income tax is in effect; or
(B) a municipality in which the municipal option income
tax is in effect.
Sec. 6. As used in this chapter, "municipality" has the meaning
set forth in
IC 36-1-2-11.
Sec. 7. As used in this chapter, "qualifying county" means a
county having a population of more than four hundred thousand
(400,000) but less than seven hundred thousand (700,000).
Sec. 8. As used in this chapter, "resident municipal taxpayer",
as it relates to a particular municipality, means any municipal
taxpayer who resides in that municipality on the date specified in
section 21 of this chapter.
Sec. 9. (a) Except as provided in subsections (c) and (f) and in
section 12(c) of this chapter, the fiscal body of a municipality
located in a qualifying county may impose a municipal option
income tax, which consists of a tax on the adjusted gross income of
municipal taxpayers of the municipality. If the tax is imposed, the
tax takes effect:
(1) September 1, 2001, if the fiscal body adopts an ordinance
to impose the tax before July 1, 2001; or
(2) July 1 of the year that the ordinance imposing the tax is
adopted, if the ordinance is adopted in 2002 or a later
calendar year.
(b) A municipal fiscal body shall hold a public hearing on the
proposed ordinance before adopting an ordinance under
subsection (a). The municipal fiscal body shall give public notice of
the public hearing under
IC 5-3-1.
(c) A fiscal body may not impose a municipal option income tax
under subsection (a) for a period in which the county adjusted
gross income tax, the county option income tax, the economic
development income tax, or the property tax reduction income tax
is in effect in the qualifying county in which the municipality is
located.
(d) If during a particular calendar year the fiscal body of a
municipality in a qualifying county adopts an ordinance to impose
the municipal option income tax in the municipality effective for
July 1 of that calendar year and the fiscal body of the qualifying
county in which the municipality is located adopts an ordinance to
impose the county property tax reduction income tax in the
qualifying county effective for July 1 of that calendar year, the
county property tax reduction income tax takes effect in the
qualifying county and the municipal option income tax does not
take effect in the municipality.
(e) If during a particular calendar year:
(1) the fiscal body of a qualifying county adopts an ordinance
to impose the county property tax reduction income tax
effective July 1 of the calendar year; and
(2) a municipality located in the qualifying county has a
municipal option income tax in effect under an ordinance
adopted in a previous calendar year;
the municipal option income tax in the municipality is rescinded
effective July 1 of the calendar year in which the ordinance is
adopted under subdivision (1).
(f) A fiscal body may not impose a municipal option income tax
for a calendar year that begins after December 31, 2005.
Sec. 10. (a) The maximum rate of the municipal option income
tax imposed on a resident municipal taxpayer under this chapter
is one percent (1%). The maximum rate of the municipal option
income tax imposed on all other municipal taxpayers under this
chapter is one-half percent (0.5%).
(b) A municipal option income tax imposed under this chapter
applies to resident municipal taxpayers and all other municipal
taxpayers. The municipal option income tax rate in effect for the
municipal taxpayers of a municipality who are not resident
municipal taxpayers of that municipality is at all times one-half
(1/2) of the tax rate imposed upon resident municipal taxpayers.
Sec. 11. (a) To impose a municipal option income tax to take
effect September 1, 2001, the fiscal body of a municipality in a
qualifying county must adopt an ordinance before July 1, 2001.
The ordinance must substantially state the following:
"The ________ Fiscal Body imposes the municipal option
income tax on the municipal taxpayers of ________ (insert
name of municipality). The income tax is imposed at a rate of
_____ percent (_____%) on the resident municipal taxpayers
of the municipality and at a rate of ____ percent (_____%) on
all other municipal taxpayers. The income tax takes effect
September 1, 2001.".
(b) An ordinance adopted under subsection (a) takes effect
September 1, 2001.
(c) To impose a municipal option income tax in 2002 or in a later
year, the fiscal body of a municipality that does not adopt an
ordinance under subsection (a) must, after February 15 but before
May 1 of a year, adopt an ordinance. The ordinance must
substantially state the following:
"The ________ Fiscal Body imposes the municipal option
income tax on the municipal taxpayers of ________ (insert
name of municipality). The income tax is imposed at a rate of
_____ percent (_____%) on the resident municipal taxpayers
of the municipality and at a rate of ____ percent (_____%) on
all other municipal taxpayers. The income tax takes effect
July 1 of this year.".
(d) An ordinance adopted under subsection (c) takes effect July
1 of the year the ordinance is adopted.
Sec. 12. (a) If the fiscal body of a municipality in a qualifying
county adopts an ordinance under section 11(a) of this chapter, the
state board of tax commissioners may not certify a budget for the
municipality under
IC 6-1.1-17-16
(f) for the 2002 calendar year
that is greater than ninety-seven percent (97%) of the budget of the
municipality certified by the state board for the 2001 calendar
year. The state board of tax commissioners may not certify a
budget for the municipality under
IC 6-1.1-17-16
(f) for any later
calendar year that is greater than ninety-seven percent (97%) of
the budget of the municipality certified by the state board for the
calendar year that immediately precedes the later calendar year.
(b) If the fiscal body of a municipality in a qualifying county
adopts an ordinance in a calendar year under section 11(c) of this
chapter, the state board of tax commissioners may not certify a
budget for the municipality under
IC 6-1.1-17-16
(f) for the
calendar year that immediately succeeds the calendar year in
which the ordinance is adopted that is greater than ninety-seven
percent (97%) of the budget of the municipality certified by the
state board for the calendar year in which the ordinance was
adopted. The state board of tax commissioners may not certify a
budget for the municipality under
IC 6-1.1-17-16
(f) for any later
calendar year that is greater than ninety-seven percent (97%) of
the budget of the municipality certified by the state board for the
calendar year that immediately precedes the later calendar year.
(c) Before July 1 of 2002 and of each year thereafter, the state
board of tax commissioners shall review the budget approved for
each municipality in a qualifying county in which a municipal
option income tax is in effect to determine whether the restriction
under subsection (a) or (b) has been applied. If the restriction has
not been applied:
decrease the rate of a municipal option income tax. To increase or
decrease the rate, the fiscal body must, after January 1 but before
May 1 of a year, adopt an ordinance. The ordinance must
substantially state the following:
"The ________ Fiscal Body increases (or decreases) the rate
of the municipal option income tax. The tax rate with respect
to resident municipal taxpayers is increased (or decreased)
from (insert current rate) to (insert proposed rate). The tax
rate with respect to all other municipal taxpayers 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.
(b) A fiscal body shall hold a public hearing on the proposed
ordinance before adopting an ordinance under subsection (a). The
municipal fiscal body shall give public notice of the public hearing
under
IC 5-3-1.
(c) An ordinance adopted under this section takes effect July 1
of the year the ordinance is adopted.
Sec. 14. (a) A municipal option income tax imposed by a fiscal
body under this chapter remains in effect until the earlier of:
(1) the date the tax is rescinded; or
(2) December 31, 2005.
(b) A fiscal body may rescind the municipal option income tax
by adopting an ordinance to rescind the tax after January 1 but
before June 1 of a year.
(c) A fiscal body shall hold a public hearing on the proposed
ordinance before adopting an ordinance under subsection (b). The
municipal fiscal body shall give public notice of the public hearing
under
IC 5-3-1.
(d) An ordinance adopted under this section takes effect July 1
of the year the ordinance is adopted.
Sec. 15. Immediately upon adoption under this chapter of an
ordinance to impose or rescind a municipal option income tax, or
an ordinance to increase or decrease the rate of the tax, the
legislative body of the municipality shall send a certified copy of
the ordinance to the department by certified mail.
Sec. 16. If a municipal option income tax is not in effect during
an individual taxpayer's entire taxable year, the amount of
municipal option income tax that the taxpayer owes for that
taxable year equals the product of:
(1) the amount of the municipal option income tax 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 municipal option
income tax was in effect. The denominator equals the total
number of days in the taxpayer's taxable year.
Sec. 17. (a) If, for a particular taxable year, an individual
taxpayer is allowed, or a municipal taxpayer and the municipal
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 municipal taxpayer
is entitled or the municipal taxpayer and the municipal taxpayer's
spouse are entitled to a credit against their municipal option
income tax 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 municipal option
income tax rate imposed against the municipal taxpayer or
the municipal taxpayer and the municipal taxpayer's
spouse. The denominator is fifteen-hundredths (0.15).
(2) The amount of municipal option income tax imposed on
the municipal taxpayer or the municipal taxpayer and the
municipal taxpayer's spouse.
(b) If a municipal taxpayer and the municipal taxpayer's spouse
file a joint return and are subject to different municipal option
income 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. 18. (a) Revenue derived from the imposition of a municipal
option income tax shall, in the manner prescribed by this section,
be distributed to the municipality that imposed the tax. The
amount that is to be distributed to a municipality during an
ensuing calendar year equals the amount of municipal option
income tax revenue that the department, after reviewing the
recommendation of the budget agency, estimates will be received
from that municipality during the twelve (12) month period
beginning July 1 of the immediately preceding calendar year and
ending June 30 of the ensuing calendar year.
(b) Before June 16 of each calendar year, the department, after
reviewing the recommendation of the budget agency, shall estimate
and certify to each adopting municipality and to the county auditor
of the qualifying county the amount of municipal option income tax
revenue that will be collected from that municipality during the
twelve (12) month period beginning July 1 of that calendar year
and ending June 30 of the immediately succeeding calendar year.
The amount certified is the municipality's "certified distribution"
for the immediately succeeding calendar year. The amount
certified may be adjusted under subsection (c) or (d).
(c) The department may certify to an adopting municipality an
amount that is greater than the estimated twelve (12) month
revenue collection if the department, after reviewing the
recommendation of the budget agency, determines that there will
be a greater amount of revenue available for distribution from the
municipality's account established under section 19 of this chapter.
(d) The department may certify an amount less than the
estimated twelve (12) month revenue collection if the department,
after reviewing the recommendation of the budget agency,
determines that a part of those collections needs to be distributed
during the current calendar year so that the municipality will
receive its full certified distribution for the current calendar year.
(e) One-twelfth (1/12) of each adopting municipality's certified
distribution for a calendar year shall be distributed from its
account established under section 19 of this chapter to the
appropriate municipality on the first day of each month of that
calendar year.
(f) All distributions from an account established under section
19 of this chapter shall be made by warrants issued by the auditor
of state to the treasurer of state ordering the appropriate
payments.
Sec. 19. (a) A special account within the state general fund shall
be established for each municipality adopting a municipal option
income tax. Revenue derived from the imposition of the municipal
option income tax shall be deposited in that municipality'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. 20. (a) The state board of tax commissioners shall each year
reduce the general fund property tax levy of a municipality
receiving a distribution under this chapter in that year. The
municipality's general fund property tax levy shall be reduced by
the amount of the distribution received or to be received by the
municipality during the year. The state board of tax commissioners
shall certify to the auditor of the qualifying county the property tax
rate applicable to the municipality's general fund after the
property tax reduction under this section.
(b) A municipality shall treat a distribution that the
municipality receives or is to receive during a particular calendar
year as a part of the municipality's property tax levy for the
general fund for that same calendar year for purposes of fixing the
municipality's budget and for purposes of the property tax levy
limits imposed by
IC 6-1.1-18.5.
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 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 municipality may use distributions received under this
chapter for any purpose for which the municipality may use
property tax revenues.
Sec. 21. (a) For purposes of this chapter, an individual shall be
treated as a resident municipal taxpayer of the municipality 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 a resident municipal 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 location in Indiana
during a calendar year, the individual's liability for municipal
option income tax is not affected.
Sec. 22. (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
municipal option income tax. The municipal option income tax 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 municipal option income tax.
(c) Each employer shall report to the department the amount of
withholdings attributable to each municipality. This report shall
annually be submitted with the employer's withholding report.
Sec. 23. Before February 1 of each year, the department shall
submit a report to each municipality indicating the balance at the
end of the preceding year in the municipality's account established
under section 19 of this chapter.
Sec. 24. (a) Except as provided in subsection (b), if for a
particular taxable year a municipal taxpayer is liable for an
income tax imposed by a county, city, town, or other local
governmental entity located outside of Indiana, that municipal
taxpayer is entitled to a credit against the municipal option income
tax liability for that same taxable year. The amount of the credit
equals the amount of tax imposed by the other governmental entity
on income derived from sources outside Indiana and subject to the
municipal option income tax. However, the credit provided by this
section may not reduce a municipal taxpayer's municipal option
income tax liability to an amount that is less than what would have
been owed if the income subject to taxation by the other
governmental entity had been ignored.
(b) The credit provided by this section does not apply to a
municipal taxpayer to the extent that the other governmental entity
provides for a credit to the taxpayer for the amount of municipal
option income taxes owed under this chapter.
(c) To claim the credit provided by this section, a municipal
taxpayer must provide the department with satisfactory evidence
that the taxpayer is entitled to the credit.
county having a population of more than four hundred thousand
(400,000) but less than seven hundred thousand (700,000).
Sec. 6. As used in this chapter, "resident county taxpayer", as
it relates to a qualifying county, means any county taxpayer who
resides in the qualifying county on the date specified in section 18
of this chapter.
Sec. 7. (a) A county fiscal body may adopt ordinances to:
(1) impose the county property tax reduction income tax in its
county;
(2) subject to section 10 of this chapter, rescind the county
property tax reduction income tax in its county;
(3) increase the county property tax reduction income tax rate
for the county; or
(4) subject to section 12 of this chapter, decrease the county
property tax reduction income tax rate for the county.
The affirmative votes of five (5) members of the fiscal body are
required to adopt an ordinance under this subsection.
(b) An ordinance adopted in a particular year under this
chapter to impose or rescind the county property tax reduction
income tax or to increase its tax rate is effective July 1 of that year.
(c) If the fiscal body of a qualifying county adopts an ordinance
in a calendar year to impose a county property tax reduction
income tax under this chapter, the state board of tax
commissioners may not certify a budget for the qualifying county
under
IC 6-1.1-17-16
(f) for the calendar year that immediately
succeeds the calendar year in which the ordinance is adopted that
is greater than ninety-seven percent (97%) of the budget of the
qualifying county certified by the state board for the calendar year
in which the ordinance was adopted. The state board of tax
commissioners may not certify a budget for the qualifying county
under
IC 6-1.1-17-16
(f) for any later calendar year that is greater
than ninety-seven percent (97%) of the budget of the qualifying
county certified by the state board for the calendar year that
immediately precedes the later calendar year.
Sec. 8. (a) Before a county fiscal body may propose an ordinance
or vote on a proposed ordinance, the fiscal body must hold a public
hearing on the proposed ordinance and provide the public with
notice of the time and place where the public hearing will be held.
(b) The notice required by subsection (a) must be given in
accordance with
IC 5-3-1.
(c) The form of the notice required by this section must be in
substantially the following form:
mail.
Sec. 10. (a) Except as provided in section 11 of this chapter, the
county property tax reduction income tax imposed by a county
fiscal body under this chapter remains in effect until:
(1) the date the tax is rescinded; or
(2) December 31, 2005.
(b) The county fiscal body of a qualifying county may rescind
the county property tax reduction income tax by passing an
ordinance to rescind the tax after January 1 but before April 1 of
a year.
(c) The auditor of a county shall record all votes taken on a
proposed ordinance 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.
Sec. 11. On January 1 of 2003 and of each year thereafter, the
state board of tax commissioners shall determine for each
qualifying county in which a property tax reduction income tax is
in effect the number of full-time employees on the payroll of the
qualifying county. If the number of full-time employees on the
payroll of the qualifying county on April 1, 2001, is not greater
than the number of employees determined by the state board of tax
commissioners under this section by at least two hundred fifty
(250):
(1) the county property tax reduction income tax is rescinded
as of July 1 of the year in which the determination was made;
and
(2) the qualifying county may not impose the county property
tax reduction income tax for any later year.
Sec. 12. (a) The county fiscal body of a qualifying county may
adopt an ordinance to decrease the county property tax reduction
income tax rate in effect.
(b) To decrease the county property tax reduction income tax
rate, the county fiscal body must adopt an ordinance after January
1 but before April 1 of a year. The ordinance must substantially
state the following:
"The ______________ County Fiscal Body decreases the
county property tax reduction income tax rate from
__________ percent (___ %) to __________ percent (___ %).
This ordinance takes effect July 1 of this year.".
(c) An ordinance adopted under this subsection takes effect July
1 of the year in which the ordinance is adopted.
(d) The county auditor shall record the votes taken on an
ordinance under this subsection and shall send a certified copy of
the ordinance to the department by certified mail not more than
thirty (30) days after the ordinance is adopted.
Sec. 13. If for any taxable year a county taxpayer is subject to
different tax rates for the county property tax reduction income
tax imposed by a qualifying county, the taxpayer's county property
tax reduction income tax rate for that county and that taxable year
is the rate determined in the last STEP of the following STEPS:
STEP ONE: Multiply the number of months in the taxpayer's
taxable year that precede July 1 by the rate in effect before
the rate change.
STEP TWO: Multiply the number of months in the taxpayer's
taxable year that follow June 30 by the rate in effect after the
rate change.
STEP THREE: Divide the sum of the amounts determined
under STEPS ONE and TWO by twelve (12).
Sec. 14. If the county property tax reduction income tax is not
in effect during a county taxpayer's entire taxable year, the amount
of county property tax reduction income tax that the county
taxpayer owes for that taxable year equals the product of:
(1) the amount of county property tax reduction income tax
the county taxpayer would owe if the tax had been imposed
during the county taxpayer's entire taxable year; multiplied
by
(2) a fraction. The numerator of the fraction equals the
number of days in the county taxpayer's taxable year during
which the county property tax reduction income tax was in
effect. The denominator of the fraction equals the total
number of days in the county taxpayer's taxable year.
However, if the taxpayer files state income tax returns on a
calendar year basis, the fraction to be applied under this section is
one-half (1/2).
Sec. 15. (a) A special account within the state general fund shall
be established for each county that adopts the county property tax
reduction income tax. Any revenue derived from the imposition of
the county property tax reduction income tax by a county shall be
deposited in that county's account in the state general fund.
(b) Any income earned on money held in an account under
subsection (a) becomes a part of that account.
(c) Any revenue remaining in an account established under
subsection (a) at the end of a fiscal year does not revert to the state
general fund.
payments.
Sec. 17. (a) The state board of tax commissioners shall each year
reduce the general fund property tax levy of a qualifying county
receiving a distribution under this chapter in that year. The
distribution may be used only to reduce the qualifying county's
general fund property tax levy under this subsection. The
qualifying county's general fund property tax levy shall be reduced
by the amount of the distribution received or to be received by the
county during the year. The state board of tax commissioners shall
certify to the auditor of the qualifying county the property tax rate
applicable to the municipality's general fund after the property tax
reduction under this section.
(b) A qualifying county shall treat a distribution that the county
receives or is to receive during a particular calendar year as a part
of the county's property tax levy for the general fund for that same
calendar year for purposes of fixing the county's budget and for
purposes of the property tax levy limits imposed by
IC 6-1.1-18.5.
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 qualifying county may use distributions received under
this chapter for any purpose for which the county may use
property tax revenues.
Sec. 18. (a) For purposes of this chapter, an individual shall be
treated as a resident of the county in which the individual:
(1) maintains a home, if the individual maintains only one (1)
in Indiana;
(2) if subdivision (1) does not apply, is registered 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 spent in Indiana during the
taxable year in question.
(b) The residence or principal place of business or employment
of an individual is to be 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 or
principal place of employment or business to another county in
Indiana during a calendar year, the individual's liability for county
property tax reduction income tax is not affected.
Sec. 19. (a) Using procedures provided under this chapter, the
county fiscal body of any adopting county may pass an ordinance
to enter into reciprocity agreements with the taxing authority of
any city, town, municipality, county, or other similar local
governmental entity of any other state. The reciprocity agreements
must provide that the income of resident county taxpayers is
exempt from income taxation by the other local governmental
entity to the extent income of the residents of the other local
governmental entity is exempt from the county property tax
reduction income tax in the adopting county.
(b) A reciprocity agreement adopted under this section may not
become effective until it is also made effective in the other local
governmental entity that is a party to the agreement.
(c) The form and effective date of any reciprocity agreement
described in this section must be approved by the department.
Sec. 20. (a) Except as otherwise provided in subsection (b) and
the other provisions of 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) deductions or exemptions from adjusted gross income;
(5) remittances;
(6) incorporation of the provisions of the Internal Revenue
Code;
(7) penalties and interest; and
(8) exclusion of military pay credits for withholding;
apply to the imposition, collection, and administration of the tax
imposed by this chapter.
(b) The provisions of
IC 6-3-1-3.5
(a)(6),
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) Notwithstanding subsections (a) and (b), each employer shall
report to the department the amount of withholdings attributable
to each county. This report shall be submitted along with the
employer's other withholding report.
Sec. 21. (a) Except as provided in subsection (b), if for a
particular taxable year a county taxpayer is liable for an income
tax imposed by a county, city, town, or other local governmental
entity located outside of Indiana, that county taxpayer is entitled
to a credit against the county property tax reduction income tax
liability for that same taxable year. The amount of the credit
equals the amount of tax imposed by the other governmental entity
on income derived from sources outside Indiana and subject to the
county property tax reduction income tax. However, the credit
provided by this section may not reduce a county taxpayer's county
property tax reduction income tax liability to an amount less than
would have been owed if the income subject to taxation by the
other governmental entity had been ignored.
(b) The credit provided by this section does not apply to a
county taxpayer to the extent that the other governmental entity
provides for a credit to the taxpayer for the amount of county
property tax reduction income taxes owed under this chapter.
(c) To claim the credit provided by this section, a county
taxpayer must provide the department with satisfactory evidence
that the taxpayer is entitled to the credit.
Sec. 22. (a) If for a particular taxable year a county taxpayer is,
or a county taxpayer and the 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, the county
taxpayer is, or the county taxpayer and the taxpayer's spouse are,
entitled to a credit against the county property tax reduction
income tax liability for that same taxable year. The amount of the
credit equals the lesser of:
(1) the product of:
(A) the credit for the elderly or the totally disabled for that
same taxable year; multiplied by
(B) a fraction, the numerator of which is the county
property tax reduction income tax rate imposed against the
county taxpayer, or the county taxpayer and the taxpayer's
spouse, and the denominator of which is fifteen-hundredths
(0.15); or
(2) the amount of county property tax reduction income tax
imposed on the county taxpayer, or the county taxpayer and
the taxpayer's spouse.
(b) If a county taxpayer and the taxpayer's spouse file a joint
return and are subject to different county property tax reduction
income tax rates for the same taxable year, they shall compute the
credit under this section by using the formula provided by
subsection (a), except that they shall use the average of the two (2)
county property tax reduction income tax rates imposed against
them as the numerator referred to in subsection (a)(1)(B).
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 municipal option
income tax (IC 6-3.5-8); the county property tax reduction income
tax (IC 6-3.5-9); 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.
and when so amended that said bill do pass .
Committee Vote: Yeas 10, Nays 0.