SB 79-1_ Filed 03/01/2001, 11:44
Adopted 3/1/2001
COMMITTEE REPORT
MR. PRESIDENT:
The Senate Committee on Finance, to which was referred Senate Bill No. 79, 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:
SOURCE: Page 1, line 1; (01)AM007903.1. -->
Page 1, delete lines 1 through 6, begin a new paragraph and insert:
SOURCE: IC 6-1.1-12-40; (01)AM007903.1. -->
"SECTION 1.
IC 6-1.1-12-40
IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2002]: Sec. 40. (a) As used in this
section, "assessed value of inventory" means the assessed value
determined after the application of any deductions or adjustments
that apply by statute or rule to the assessment of inventory, other
than the deduction established in subsection (e).
(b) As used in this section, "county income tax council" means
a council established by
IC 6-3.5-6-2.
(c) As used in this section, "fiscal body" has the meaning set
forth in
IC 36-1-2-6.".
SOURCE: Page 1, line 7; (01)AM007903.1. -->
Page 1, line 7, delete "Sec. 2." and insert "
(d)".
Page 1, line 7, delete "chapter," and insert "
section,".
Page 1, between lines 8 and 9, begin a new paragraph and insert:
"
(e) Except as provided in subsection (j), a deduction applies to
the assessed value of inventory. If the county fiscal body or county
income tax council does not take action under subsection (f), the
deduction is equal to a percentage of the assessed value of
inventory for the appropriate year of assessment as follows:
YEAR OF ASSESSMENT
PERCENTAGE
2002 10%
2003 20%
2004 30%
2005 40%
2006 50%
2007 60%
2008 70%
2009 80%
2010 90%
2011 and thereafter 100%
(f) An ordinance may be adopted before January 1, 2002, to
provide that:
(1) the percentage of the deduction established in subsection
(e) is one hundred percent (100%) for the 2002 year of
assessment and thereafter;
(2) the percentage of the deduction established in subsection
(e) reaches one hundred percent (100%) within a period
between two (2) years and nine (9) years under the
appropriate schedule in subsection (i); or
(3) the deduction established in subsection (e) does not apply
for any year of assessment.
(g) The entity that may adopt the ordinance under subsection (f)
is:
(1) the county income tax council if the county option income
tax is in effect on January 1, 2001;
(2) the county fiscal body if the county adjusted gross income
tax is in effect on January 1, 2001; or
(3) the county income tax council or the county fiscal body,
whichever acts first, for a county not covered by subdivision
(1) or (2).
To adopt an ordinance under subsection (f), 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. The entity that
adopts the ordinance shall provide a certified copy of the ordinance
to the state board of tax commissioners before February 1, 2002.
(h) If an ordinance is adopted under subsection (f)(1), the
deduction established in subsection (e) applies in the amount of one
hundred percent (100%) for the 2002 assessment year and
thereafter.
(i) If an ordinance is adopted under subsection (f)(2), the
percentage to be used to determine the amount of the deduction
established in subsection (e) is the percentage derived from the
following table that corresponds to the period of years established
in the ordinance over which the deduction reaches one hundred
percent (100%):
(1) Period of nine (9) years:
YEAR OF ASSESSMENT
PERCENTAGE
2002 11%
2003 22%
2004 33%
2005 44%
2006 55%
2007 66%
2008 77%
2009 88%
2010 and thereafter 100%
(2) Period of eight (8) years:
YEAR OF ASSESSMENT
PERCENTAGE
2002 13%
2003 25%
2004 38%
2005 50%
2006 63%
2007 75%
2008 88%
2009 and thereafter 100%
(3) Period of seven (7) years:
YEAR OF ASSESSMENT
PERCENTAGE
2002 14%
2003 28%
2004 43%
2005 57%
2006 71%
2007 85%
2008 and thereafter 100%
(4) Period of six (6) years:
YEAR OF ASSESSMENT
PERCENTAGE
2002 17%
2003 33%
2004 50%
2005 67%
2006 83%
2007 and thereafter 100%
(5) Period of five (5) years:
YEAR OF ASSESSMENT
PERCENTAGE
2002 20%
2003 40%
2004 60%
2005 80%
2006 and thereafter 100%
(6) Period of four (4) years:
YEAR OF ASSESSMENT
PERCENTAGE
2002 25%
2003 50%
2004 75%
2005 and thereafter 100%
(7) Period of three (3) years:
YEAR OF ASSESSMENT
PERCENTAGE
2002 33%
2003 67%
2004 and thereafter 100%
(8) Period of two (2) years:
YEAR OF ASSESSMENT
PERCENTAGE
2002 50%
2003 and thereafter 100%
(j) If an ordinance is adopted under subsection (f)(3), the
deduction established in subsection (e) does not apply for any
assessment year.
(k) A taxpayer is not required to file an application to qualify
for the deduction established in subsection (e).
(l) The state board of tax commissioners shall incorporate the
deduction established in this section in the personal property
return form to be used each year for filing under
IC 6-1.1-3-7
or
IC 6-1.1-3-7.5
to permit the taxpayer to enter the deduction on the
form. If a taxpayer fails to enter the deduction on the form, the
township assessor shall:
(1) determine the amount of the deduction; and
(2) within the period established in
IC 6-1.1-16-1
, issue a
notice of assessment to the taxpayer that reflects the
application of the deduction to the inventory assessment.
(m) The deduction established in this section must be applied to
any inventory assessment made by:
(1) an assessing official;
(2) a county property tax board of appeals; or
(3) the state board of tax commissioners.
SOURCE: IC 6-3.5-7-12; (01)AM007903.2. -->
SECTION 2.
IC 6-3.5-7-12
, AS AMENDED BY P.L.14-2000,
SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2001]: Sec. 12. (a) Except as provided in
section sections 23
and 24 of this chapter, the county auditor shall distribute in the manner
specified in this section the certified distribution to the county.
(b) Except as provided in subsections (c) and (h) and
section
sections 15
and 24 of this chapter, the amount of the certified
distribution that the county and each city or town in a county is entitled
to receive during May and November of each year equals the product
of the following:
(1) The amount of the certified distribution for that month;
multiplied by
(2) A fraction. The numerator of the fraction equals the sum of the
following:
(A) Total property taxes that are first due and payable to the
county, city, or town during the calendar year in which the
month falls; plus
(B) For a county, an amount equal to the property taxes
imposed by the county in 1999 for the county's welfare fund
and welfare administration fund.
The denominator of the fraction equals the sum of the total
property taxes that are first due and payable to the county and all
cities and towns of the county during the calendar year in which
the month falls, plus an amount equal to the property taxes
imposed by the county in 1999 for the county's welfare fund and
welfare administration fund.
(c) This subsection applies to a county council or county income tax
council that imposes a tax under this chapter after June 1, 1992. The
body imposing the tax may adopt an ordinance before July 1 of a year
to provide for the distribution of certified distributions under this
subsection instead of a distribution under subsection (b). The following
apply if an ordinance is adopted under this subsection:
(1) The ordinance is effective January 1 of the following year.
(2)
Except as provided in section 24 of this chapter, the amount
of the certified distribution that the county and each city and town
in the county is entitled to receive during May and November of
each year equals the product of:
(A) the amount of the certified distribution for the month;
multiplied by
(B) a fraction. For a city or town, the numerator of the fraction
equals the population of the city or the town. For a county, the
numerator of the fraction equals the population of the part of
the county that is not located in a city or town. The
denominator of the fraction equals the sum of the population
of all cities and towns located in the county and the population
of the part of the county that is not located in a city or town.
(3) The ordinance may be made irrevocable for the duration of
specified lease rental or debt service payments.
(d) The body imposing the tax may not adopt an ordinance under
subsection (c) if, before the adoption of the proposed ordinance, any of
the following have pledged the county economic development income
tax for any purpose permitted by
IC 5-1-14
or any other statute:
(1) The county.
(2) A city or town in the county.
(3) A commission, a board, a department, or an authority that is
authorized by statute to pledge the county economic development
income tax.
(e) The state board of tax commissioners shall provide each county
auditor with the fractional amount of the certified distribution that the
county and each city or town in the county is entitled to receive under
this section.
(f) Money received by a county, city, or town under this section
shall be deposited in the unit's economic development income tax fund.
(g) Except as provided in subsection (b)(2)(B), in determining the
fractional amount of the certified distribution the county and its cities
and towns are entitled to receive under subsection (b) during a calendar
year, the state board of tax commissioners shall consider only property
taxes imposed on tangible property subject to assessment in that
county.
(h) In a county having a consolidated city, only the consolidated city
is entitled to the certified distribution, subject to the requirements of
section sections 15 and 24 of this chapter.
SOURCE: IC 6-3.5-7-13.1; (01)AM007903.3. -->
SECTION 3.
IC 6-3.5-7-13.1
, AS AMENDED BY P.L.124-1999,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2001]: Sec. 13.1. (a) The fiscal officer of each county, city, or
town for a county in which the county economic development tax is
imposed shall establish an economic development income tax fund.
Except as provided in
section sections 23
and 24 of this chapter, the
revenue received by a county, city, or town under this chapter shall be
deposited in the unit's economic development income tax fund.
(b) Except as provided in sections 15,
and 23,
and 24 of this
chapter, revenues from the county economic development income tax
may be used as follows:
(1) By a county, city, or town for economic development projects,
for paying, notwithstanding any other law, under a written
agreement all or a part of the interest owed by a private developer
or user on a loan extended by a financial institution or other
lender to the developer or user if the proceeds of the loan are or
are to be used to finance an economic development project, for
the retirement of bonds under section 14 of this chapter for
economic development projects, for leases under section 21 of
this chapter, or for leases or bonds entered into or issued prior to
the date the economic development income tax was imposed if
the purpose of the lease or bonds would have qualified as a
purpose under this chapter at the time the lease was entered into
or the bonds were issued.
(2) By a county, city, or town for:
(A) the construction or acquisition of, or remedial action with
respect to, a capital project for which the unit is empowered to
issue general obligation bonds or establish a fund under any
statute listed in
IC 6-1.1-18.5-9.8
;
(B) the retirement of bonds issued under any provision of
Indiana law for a capital project;
(C) the payment of lease rentals under any statute for a capital
project;
(D) contract payments to a nonprofit corporation whose
primary corporate purpose is to assist government in planning
and implementing economic development projects;
(E) operating expenses of a governmental entity that plans or
implements economic development projects;
(F) to the extent not otherwise allowed under this chapter,
funding substance removal or remedial action in a designated
unit; or
(G) funding of a revolving fund established under
IC 5-1-14-14.
(c) As used in this section, an economic development project is any
project that:
(1) the county, city, or town determines will:
(A) promote significant opportunities for the gainful
employment of its citizens;
(B) attract a major new business enterprise to the unit; or
(C) retain or expand a significant business enterprise within
the unit; and
(2) involves an expenditure for:
(A) the acquisition of land;
(B) interests in land;
(C) site improvements;
(D) infrastructure improvements;
(E) buildings;
(F) structures;
(G) rehabilitation, renovation, and enlargement of buildings
and structures;
(H) machinery;
(I) equipment;
(J) furnishings;
(K) facilities;
(L) administrative expenses associated with such a project,
including contract payments authorized under subsection
(b)(2)(D);
(M) operating expenses authorized under subsection (b)(2)(E);
or
(N) to the extent not otherwise allowed under this chapter,
substance removal or remedial action in a designated unit;
or any combination of these.
SOURCE: IC 6-3.5-7-15; (01)AM007903.4. -->
SECTION 4.
IC 6-3.5-7-15
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 15. (a) The executive
of a county, city, or town may,
subject to the use of the certified
distribution permitted under section 24 of this chapter:
(1) adopt a capital improvement plan specifying the uses of the
revenues to be received under this chapter; or
(2) designate the county or a city or town in the county as the
recipient of all or a part of its share of the distribution.
(b) If a designation is made under subsection (a)(2), the county
treasurer shall transfer the share or part of the share to the designated
unit unless that unit does not have a capital improvement plan.
(c) A county, city, or town that fails to adopt a capital improvement
plan may not receive:
(1) its fractional amount of the certified distribution; or
(2) any amount designated under subsection (c)(2);
for the year or years in which the unit does not have a plan. The county
treasurer shall retain the certified distribution and any designated
distribution for such a unit in a separate account until the unit adopts
a plan. Interest on the separate account becomes part of the account. If
a unit fails to adopt a plan for a period of three (3) years, then the
balance in the separate account shall be distributed to the other units in
the county based on property taxes first due and payable to the units
during the calendar year in which the three (3) year period expires.
(d)
A capital improvement plan must include the following
components:
(1) Identification and general description of each project that
would be funded by the county economic development income
tax.
(2) The estimated total cost of the project.
(3) Identification of all sources of funds expected to be used for
each project.
(4) The planning, development, and construction schedule of each
project.
(e) A capital improvement plan:
(1) must encompass a period of no less than two (2) years; and
(2) must incorporate projects the cost of which is at least
seventy-five percent (75%) of the fractional amount certified
distribution expected to be received by the county, city, or town
in that period of time.
(f) In making a designation under subsection (a)(2), the executive
must specify the purpose and duration of the designation. If the
designation is made to provide for the payment of lease rentals or bond
payments, the executive may specify that the designation and its
duration are irrevocable.
SOURCE: IC 6-3.5-7-24; (01)AM007903.5. -->
SECTION 5.
IC 6-3.5-7-24
IS ADDED TO THE INDIANA CODE
AS A
NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2001]:
Sec. 24. (a) For purposes of this section, "imposing entity"
means the entity that adopted the county economic development
income tax under section 5 of this chapter.
(b) Except as provided in subsection (d), the imposing entity
may adopt an ordinance to provide for the use of all or a part of
the certified distribution for the purpose provided in subsection (e).
A county income tax council that adopts an ordinance under this
subsection shall use the procedures set forth in
IC 6-3.5-6
concerning the adoption of an ordinance for the imposition of the
county option income tax. An ordinance may be adopted under this
subsection after January 1 but before April 1 of a calendar year.
An ordinance adopted under this subsection:
(1) first applies to the certified distribution made in the
calendar year that immediately succeeds the calendar year in
which the ordinance is adopted;
(2) must specify the calendar years to which the ordinance
applies; and
(3) must specify the percentage of the certified distribution to
be used for the purpose provided in subsection (e).
(c) If an ordinance is adopted under subsection (b), the
percentage of the certified distribution specified in the ordinance
for use for the purpose provided in subsection (e) shall be:
(1) retained by the county auditor under subsection (g); and
(2) used for the purpose provided in subsection (e) instead of
the purposes specified in the capital improvement plans
adopted under section 15 of this chapter.
(d) The imposing entity may not provide in an ordinance
adopted under subsection (b) for the use of the certified
distribution under this section:
(1) to the extent that the certified distribution is pledged as
described in section 12(d) of this chapter; or
(2) if an ordinance was adopted before January 1, 2002, under
IC 6-1.1-12-40
(f)(3).
(e) The imposing entity may, in the ordinance adopted under
subsection (b), determine to use all or a part of the certified
distribution to increase the percentage credit allowed for
homesteads in the county under
IC 6-1.1-20.9-2
for a year. If an
ordinance is adopted under subsection (b), the county auditor shall,
for each calendar year in which an increased homestead credit
percentage is authorized under this section, determine:
(1) the amount of the certified distribution that will be
dedicated to an increased homestead credit percentage for the
year;
(2) the amount of uniformly applied homestead credits for the
year for all homesteads in the county that equals the amount
determined under subdivision (1); and
(3) the increased percentage of homestead credit that equates
to the amount of homestead credits determined under
subdivision (2).
(f) The increased percentage of homestead credit determined by
the county auditor under subsection (e) applies uniformly for all
homesteads in the county in the calendar year for which the
increased percentage is determined.
(g) The county auditor shall retain from the payments of the
county's certified distribution an amount equal to the revenue lost,
if any, due to the increase of the homestead credit within the
county. The money shall be distributed to the civil taxing units and
school corporations of the county:
(1) as if the money were from property tax collections: and
(2) in such a manner that no civil taxing unit or school
corporation will suffer a net revenue loss because of the
allowance of an increased homestead credit.
SOURCE: ; (01)AM007903.6. -->
SECTION 6. [EFFECTIVE JANUARY 1, 2002] (a)
IC 6-1.1-12-40
,
as added by this act, applies to inventory assessments after
December 31, 2001.
(b) This SECTION expires January 1, 2004.".
SOURCE: Page 1, line 9; (01)AM007903.1. -->
Page 1, delete lines 9 through 17.
Delete pages 2 through 3.
(Reference is to SB 79 as introduced.)
and when so amended that said bill do pass .
Committee Vote: Yeas 15, Nays 0.
____________________________________
Senator Borst, Chairperson
AM 007903/DI 44 2001