Citations Affected: IC 6-2.1-5 ; IC 36-1-8-5.1.
Synopsis: Payment of gross income tax. Requires, for taxable years
beginning after December 31, 2002, a taxpayer that is a political
subdivision to file the taxpayer's estimated gross income tax returns
and pay the tax to the department of state revenue on a monthly basis
instead of a quarterly basis. Requires, for a rainy day fund established
by a political subdivision after June 30, 2002, the fund to be
established by the adoption of an ordinance or a resolution that
specifies: (1) the purposes of the fund; (2) permissible expenditures
from the fund; (3) the body or officers authorized to make such
expenditures; (4) funding sources for the fund; and (5) any authority
granted to the political subdivision's executive to suspend appropriation
procedures for the fund. Specifies permissible sources of funding for
a local rainy day fund. Provides that a local rainy day fund is subject to
the same appropriation procedures as other local funds from which
additional appropriations do not require approval by the department of
local government finance. Provides that the executive of a political
subdivision may suspend appropriation procedures for a local rainy day
fund if given the authority do so by a local ordinance or resolution.
Effective: July 1, 2002; January 1, 2003.
January 9, 2002, read first time and referred to Committee on Ways and Means.
A BILL FOR AN ACT to amend the Indiana Code concerning local
pay to the department the remainder of:
(1) either twenty-five percent (25%) of the estimated or the exact amount of gross income tax which is due; minus
(2) the amount of gross income tax which was withheld pursuant to IC 6-2.1-6.
(d) If a taxpayer's estimated annual gross income tax liability does not exceed one thousand dollars ($1,000), then the taxpayer is not required to file an estimated gross income tax return.
(e) If a taxpayer is required to file an annual gross income tax return under section 2.1 of this chapter, and pays in full the taxpayer's gross income tax liability for that taxable year before the taxpayer's final estimated return is due, then the taxpayer is not required to file the final estimated gross income tax return for that same taxable year.
(f) If the department determines that a taxpayer's:
(1) estimated quarterly gross income tax liability for the current year; or
(2) average estimated quarterly gross income tax liability for the preceding year;
exceeds, before January 1, 1998, twenty thousand dollars ($20,000) and, after December 31, 1997, ten thousand dollars ($10,000), the taxpayer shall pay the estimated gross income taxes due by electronic funds transfer (as defined in IC 4-8.1-2-7 ) or by delivering in person or by overnight courier a payment by cashier's check, certified check, or money order to the department. The transfer or payment shall be made on or before the date the tax is due.
(g) If a taxpayer's gross income tax payment is made by electronic funds transfer, the taxpayer is not required to file an estimated gross income tax return.
(h) If a taxpayer is a political subdivision, the taxpayer shall file the taxpayer's estimated gross income tax returns and pay the tax to the department on a monthly basis on or before the twentieth day of each month of the taxpayer's taxable year.
subdivision that must pay the department on a monthly basis
under section 1.1(h) of this chapter, of that same taxable year; plus
(B) any gross income taxes which were withheld from the taxpayer for
that same taxable year pursuant to
(b) Except as provided in subsection (d), a taxpayer who utilizes a taxable year which ends on December 31, shall file his annual gross income tax return and pay the tax, if any, for that taxable year on or before April 15 of the immediately succeeding tax year.
(c) Except as provided in subsection (d), if a taxpayer utilizes a taxable year which does not end on December 31, the department shall prescribe the due dates for filing annual gross income tax returns and paying the tax.
(d) Any taxpayer whose gross income is either wholly or partially subject to the withholding procedures described in IC 6-2.1-6 shall file his annual gross income tax return on or before March 1 of the calendar year immediately following the year during which the tax was withheld.
(e) Any taxpayer who does not file an annual gross income tax return for a taxable year may be required to execute and file with the department a sworn statement that he did not receive more than one thousand dollars ($1,000) of taxable gross income during that taxable year.
from the rainy day fund, the fiscal body shall make a finding that the
proposed use of the rainy day fund is consistent with the intent of the
(c) In any fiscal year, a political subdivision may transfer not more
than ten percent (10%) of the political subdivision's total budget for
that fiscal year to the rainy day fund.
(d) (b) An ordinance or a resolution adopted under subsection
(a) must specify the following:
(1) The purposes of the rainy day fund.
(2) The permissible expenditures from the rainy day fund, including the particular circumstances, if any, required for a permissible expenditure.
(3) The governing body or officers that may:
(A) initiate a permissible expenditure from the rainy day fund; or
(B) determine that a proposed expenditure is consistent with the purposes of the rainy day fund.
(4) The sources of funding for the rainy day fund.
(5) If granted by the political subdivision adopting the resolution or ordinance, the authority of the executive of the political subdivision (as defined in IC 36-1-2-5 ) to suspend the appropriation procedures for the rainy day fund under subsection (e).
(c) Funding for the rainy day fund must be from at least one (1) of the following sources and must be identified in the ordinance or resolution establishing the fund as required under subsection (b)(4):
(1) A budgeted appropriation, identified as a transfer to the rainy day fund, from any fund of the political subdivision described in IC 6-1.1-18-5 (b), except for a fund dedicated to the payment of a capital lease or debt service.
(2) Transfers of unused and unencumbered funds under section 5 of this chapter.
(3) A contribution or gift from a third party or person that is given:
(A) expressly for purposes of the rainy day fund; or
(B) for purposes unexpressed by the donor, if the fiscal body of the political subdivision specifies that the contribution or gift shall be deposited in the rainy day fund.
(4) Earnings from investments made under IC 5-13.
(d) Except as otherwise provided in this section, the rainy day
fund is subject to the same appropriation procedures that apply to
other funds of the political subdivision described in
(e) If given the authority to do so under:
(1) the ordinance or resolution adopted under subsection (a); or
(2) any other ordinance or resolution adopted by the political subdivision;
the executive of a political subdivision (as defined in IC 36-1-2-5 ) may suspend the appropriation procedures required under subsection (d) by declaring in writing that an emergency exists and by authorizing expenditures from the rainy day fund without appropriation.
state board of tax commissioners department of local
government finance may not reduce the actual or maximum
permissible levy of a political subdivision as a result of a balance in the
rainy day fund of the political subdivision. However, the department
may consider any balance in the rainy day fund of a political
subdivision during an appeal under