Citations Affected: IC 6-3.5;
IC 6-6-5-10
;
IC 12-16
;
IC 12-16.1-13-7.
Synopsis: Taxes for indigent care. Provides that property taxes for
hospital care for the indigent (HCI) are imposed using a single tax rate
to be applied in every county. Makes conforming changes to
distribution provisions for local income taxes and the motor vehicle
excise tax. Provides for amendment of the state Medicaid plan
concerning HCI. Repeals the provisions for determination of individual
county tax rates for HCI and transitional provisions for the property tax
for HCI to be applied after June 30, 2003.
Effective: January 1, 2003 (retroactive).
January 9, 2003, read first time and referred to Committee on Rules and Legislative
Procedure.
A BILL FOR AN ACT to amend the Indiana Code concerning
human services.
SECTION 1.
IC 6-3.5-1.1-15
, AS AMENDED BY P.L.120-2002,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2003 (RETROACTIVE)]: Sec. 15. (a) As used in this
section, "attributed levy" of a civil taxing unit means the sum of:
(1) the ad valorem property tax levy of the civil taxing unit that is
currently being collected at the time the allocation is made; plus
(2) the current ad valorem property tax levy of any special taxing
district, authority, board, or other entity formed to discharge
governmental services or functions on behalf of or ordinarily
attributable to the civil taxing unit; plus
(3) the amount of federal revenue sharing funds and certified
shares that were used by the civil taxing unit (or any special
taxing district, authority, board, or other entity formed to
discharge governmental services or functions on behalf of or
ordinarily attributable to the civil taxing unit) to reduce its ad
valorem property tax levies below the limits imposed by
IC 6-1.1-18.5
; plus
county's welfare administration fund; plus
(B) after December 31, 2002, 2004, the greater of zero (0) or
the difference between:
(i) the county hospital care for the indigent property tax levy
imposed by the county in 2002, 2004, adjusted each year
after 2002 2004 by the statewide average assessed value
growth quotient, described in IC 12-16-14-3; using all the
county assessed value growth quotients determined
under
IC 6-1.1-18.5-2
; minus
(ii) the current uninsured parents program property tax levy
imposed by the county.
SECTION 3.
IC 6-3.5-6-18
, AS AMENDED BY P.L.90-2002,
SECTION 296, AND AS AMENDED BY P.L.120-2002, SECTION 4,
IS AMENDED AND CORRECTED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2003 (RETROACTIVE)]: Sec. 18. (a) The
revenue a county auditor receives under this chapter shall be used to:
(1) replace the amount, if any, of property tax revenue lost due to
the allowance of an increased homestead credit within the county;
(2) fund the operation of a public communications system and
computer facilities district as provided in an election, if any, made
by the county fiscal body under
IC 36-8-15-19
(b);
(3) fund the operation of a public transportation corporation as
provided in an election, if any, made by the county fiscal body
under
IC 36-9-4-42
;
(4) make payments permitted under
IC 36-7-15.1-17.5
;
(5) make payments permitted under subsection (i); and
(6) make distributions of distributive shares to the civil taxing
units of a county.
(b) 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. This money
shall be distributed to the civil taxing units and school corporations of
the county as though they were property tax collections and in such a
manner that no civil taxing unit or school corporation shall suffer a net
revenue loss due to the allowance of an increased homestead credit.
(c) The county auditor shall retain the amount, if any, specified by
the county fiscal body for a particular calendar year under subsection
(i),
IC 36-7-15.1-17.5
,
IC 36-8-15-19
(b), and
IC 36-9-4-42
from the
county's certified distribution for that same calendar year. The county
auditor shall distribute amounts retained under this subsection to the
county.
(d) All certified distribution revenues that are not retained and
distributed under subsections (b) and (c) shall be distributed to the civil
taxing units of the county as distributive shares.
(e) The amount of distributive shares that each civil taxing unit in
a county is entitled to receive during a month equals the product of the
following:
(1) The amount of revenue that is to be distributed as distributive
shares during that month; multiplied by
(2) A fraction. The numerator of the fraction equals the total
property taxes that are first due and payable to the civil taxing
unit during the calendar year in which the month falls, plus, 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, and after December 31, 2002, 2004, the
greater of zero (0) or the difference between the county hospital
care for the indigent property tax levy imposed by the county in
2002, 2004, adjusted each year after 2002 2004 by the statewide
average assessed value growth quotient, described in
IC 12-16-14-3, using all the county assessed value growth
quotients determined under
IC 6-1.1-18.5-2
, minus the current
uninsured parents program property tax levy imposed by the
county. The denominator of the fraction equals the sum of the
total property taxes that are first due and payable to all civil taxing
units 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, and after December 31, 2002, 2004, the
greater of zero (0) or the difference between the county hospital
care for the indigent property tax levy imposed by the county in
2002, 2004, adjusted each year after 2002 2004 by the statewide
average assessed value growth quotient, described in
IC 12-16-14-3, using all the county assessed value growth
quotients determined under
IC 6-1.1-18.5-2
, minus the current
uninsured parents program property tax levy imposed by the
county.
(f) The state board of tax commissioners department of local
government finance shall provide each county auditor with the
fractional amount of distributive shares that each civil taxing unit in the
auditor's county is entitled to receive monthly under this section.
(g) Notwithstanding subsection (e), if a civil taxing unit of an
adopting county does not impose a property tax levy that is first due
and payable in a calendar year in which distributive shares are being
distributed under this section, that civil taxing unit is entitled to receive
a part of the revenue to be distributed as distributive shares under this
section within the county. The fractional amount such a civil taxing
unit is entitled to receive each month during that calendar year equals
the product of the following:
(1) The amount to be distributed as distributive shares during that
month; multiplied by
(2) A fraction. The numerator of the fraction equals the budget of
that civil taxing unit for that calendar year. The denominator of
the fraction equals the aggregate budgets of all civil taxing units
of that county for that calendar year.
(h) If for a calendar year a civil taxing unit is allocated a part of a
county's distributive shares by subsection (g), then the formula used in
subsection (e) to determine all other civil taxing units' distributive
shares shall be changed each month for that same year by reducing the
amount to be distributed as distributive shares under subsection (e) by
the amount of distributive shares allocated under subsection (g) for that
same month. The state board of tax commissioners department of local
government finance shall make any adjustments required by this
subsection and provide them to the appropriate county auditors.
(i) Notwithstanding any other law, a county fiscal body may pledge
revenues received under this chapter to the payment of bonds or lease
rentals to finance a qualified economic development tax project under
IC 36-7-27
in that county or in any other county if the county fiscal
body determines that the project will promote significant opportunities
for the gainful employment or retention of employment of the county's
residents.
SECTION 4.
IC 6-3.5-6-18.5
, AS AMENDED BY P.L.120-2002,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2003 (RETROACTIVE)]: Sec. 18.5. (a) This section
applies to a county containing a consolidated city.
(b) Notwithstanding section 18(e) of this chapter, the distributive
shares that each civil taxing unit in a county containing a consolidated
city is entitled to receive during a month equals the following:
(1) For the calendar year beginning January 1, 1995, calculate the
total amount of revenues that are to be distributed as distributive
shares during that month multiplied by the following factor:
Center Township .0251
Decatur Township .00217
Franklin Township .0023
Lawrence Township .01177
Perry Township .01130
Pike Township .01865
the calendar year in which the month falls, plus, 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, and after December 31, 2004, the
greater of zero (0) or the difference between the county
hospital care for the indigent property tax levy imposed by
the county in 2004, adjusted each year after 2004 by the
statewide average assessed value growth quotient, described
in IC 12-16-14-3, using all the county assessed value
growth quotients determined under
IC 6-1.1-18.5-2
,
minus the current uninsured parents program property tax
levy imposed by the county; divided by
(B) the sum of the maximum permissible property tax levies
under
IC 6-1.1-18.5
and
IC 6-1.1-18.6
for all civil taxing
units of the county during the calendar year in which the
month falls, and an amount equal to the property taxes
imposed by the county in 1999 for the county's welfare fund
and welfare administration fund, and after December 31,
2004, the greater of zero (0) or the difference between the
county hospital care for the indigent property tax levy
imposed by the county in 2004, adjusted each year after
2004 by the statewide average assessed value growth
quotient, described in IC 12-16-14-3, using all the county
assessed value growth quotients determined under
IC 6-1.1-18.5-2
, minus the current uninsured parents
program property tax levy imposed by the county.
STEP SIX: If the STEP THREE result is greater than zero (0),
the STEP ONE amount shall be distributed by multiplying the
STEP ONE amount by the ratio established under subdivision
(1).
STEP SEVEN: For each taxing unit determine the STEP FIVE
ratio multiplied by the STEP TWO amount.
STEP EIGHT: For each civil taxing unit determine the
difference between the STEP SEVEN amount minus the
product of the STEP ONE amount multiplied by the ratio
established under subdivision (1). The STEP THREE excess
shall be distributed as provided in STEP NINE only to the civil
taxing units that have a STEP EIGHT difference greater than
or equal to zero (0).
STEP NINE: For the civil taxing units qualifying for a
distribution under STEP EIGHT, each civil taxing unit's share
equals the STEP THREE excess multiplied by the ratio of:
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:
(i) the property taxes imposed by the county in 1999 for the
county's welfare fund and welfare administration fund; plus
(ii) after December 31, 2004, the greater of zero (0) or the
difference between the county hospital care for the indigent
property tax levy imposed by the county in 2004, adjusted
each year after 2004 by the statewide average assessed value
growth quotient, described in IC 12-16-14-3, using all the
county assessed value growth quotients determined
under
IC 6-1.1-18.5-2
, minus the current uninsured parents
program property tax levy imposed by the county.
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, and
after December 31, 2004, the greater of zero (0) or the difference
between the county hospital care for the indigent property tax levy
imposed by the county in 2004, adjusted each year after 2004 by the
statewide average assessed value growth quotient, described in
IC 12-16-14-3, using all the county assessed value growth quotients
determined under
IC 6-1.1-18.5-2
, minus the current uninsured
parents program property tax levy imposed by the county.
(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 sections 25 and 26 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 department of local government finance 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 department of local government finance 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
sections 15, 25, and 26 of this chapter.
SECTION 6.
IC 6-6-5-10
, AS AMENDED BY P.L.120-2002,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2003 (RETROACTIVE)]: Sec. 10. (a) The bureau shall
establish procedures necessary for the collection of the tax imposed by
this chapter and for the proper accounting for the same. The necessary
forms and records shall be subject to approval by the state board of
accounts.
(b) The county treasurer, upon receiving the excise tax collections,
shall receipt such collections into a separate account for settlement
thereof at the same time as property taxes are accounted for and settled
in June and December of each year, with the right and duty of the
treasurer and auditor to make advances prior to the time of final
settlement of such property taxes in the same manner as provided in
IC 5-13-6-3.
(c) The county auditor shall determine the total amount of excise
taxes collected for each taxing unit in the county and the amount so
collected (and the distributions received under section 9.5 of this
chapter) shall be apportioned and distributed among the respective
funds of each taxing unit in the same manner and at the same time as
property taxes are apportioned and distributed. However, after
December 31, 2004, an amount equal to the greater of zero (0) or the
difference between the county hospital care for the indigent property
tax levy imposed by the county in 2004, adjusted each year after 2004
by the statewide average assessed value growth quotient, described in
IC 12-16-14-3, using all the county assessed value growth quotients
determined under
IC 6-1.1-18.5-2
, minus the current uninsured
parents program property tax levy imposed by the county, shall be
treated as property taxes apportioned to the county unit. However, for
purposes of determining distributions under this section for 2000 and
each year thereafter, the state welfare allocation for each county equals
the greater of zero (0) or the amount determined under STEP FIVE of
the following STEPS:
STEP ONE: For 1997, 1998, and 1999, determine the result of:
(i) the amounts appropriated by the county in the year from the
county's county welfare fund and county welfare
administration fund; divided by
(ii) the total amounts appropriated by all the taxing units in the
county in the year.
STEP TWO: Determine the sum of the results determined in
STEP ONE.
STEP THREE: Divide the STEP TWO result by three (3).
STEP FOUR: Determine the amount that would otherwise be
distributed to all the taxing units in the county under this
subsection without regard to this subdivision.
STEP FIVE: Determine the result of:
(i) the STEP FOUR amount; multiplied by
(ii) the STEP THREE result.
The state welfare allocation shall be deducted from the total amount
available for apportionment and distribution to taxing units under this
section before any apportionment and distribution is made. The county
auditor shall remit the state welfare allocation to the treasurer of state
for deposit in a special account within the state general fund.
(d) Such determination shall be made from copies of vehicle
registration forms furnished by the bureau of motor vehicles. Prior to
such determination, the county assessor of each county shall, from
copies of registration forms, cause information pertaining to legal
residence of persons owning taxable vehicles to be verified from the
assessor's records, to the extent such verification can be so made. The
assessor shall further identify and verify from the assessor's records the
several taxing units within which such persons reside.
(e) Such verifications shall be done by not later than thirty (30) days
after receipt of vehicle registration forms by the county assessor, and
the assessor shall certify such information to the county auditor for the
auditor's use as soon as it is checked and completed.
SECTION 7.
IC 12-16-14-2
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2003 (RETROACTIVE)]:
Sec. 2. (a) The tax required by section 1(1) of this chapter due and
payable in 2003 and each later year shall be imposed annually by the
county fiscal body on all of the taxable property of the county using the
rate of two cents ($0.02) per one hundred dollars ($100) of assessed
value.
(b) The tax shall be collected as other state and county ad valorem
property taxes are collected.
SECTION 8. THE FOLLOWING ARE REPEALED [EFFECTIVE
JANUARY 1, 2003 (RETROACTIVE)]:
IC 12-16-14-3
;
IC 12-16-14-3.4
;
IC 12-16-14-3.7
;
IC 12-16.1-13-7.
SECTION 9. [EFFECTIVE JANUARY 1, 2003 (RETROACTIVE)]
(a) As used in this SECTION, "office" refers to the office of
Medicaid policy and planning established under
IC 12-8-6-1.
(b) Before September 1, 2003, the office shall apply to the United
States Department of Health and Human Services for approval to
amend the state Medicaid plan concerning the state's hospital care
for the indigent program, as amended by this act.
(c) The office may not implement the amended state Medicaid
plan until the office files an affidavit with the governor attesting
that the proposed amendment to the state Medicaid plan applied
for under this SECTION was approved. The office shall file the
affidavit under this subsection not later than five (5) days after the
office is notified that the proposed amendment is approved.
(d) If the office receives approval of the proposed amendment
to the state Medicaid plan under this SECTION from the United
States Department of Health and Human Services and the
governor receives the affidavit filed under subsection (c), the office
shall implement the amendment not more than sixty (60) days after
the governor receives the affidavit.
(e) The office may adopt rules under
IC 4-22-2
necessary to
implement this SECTION.
SECTION 10. An emergency is declared for this act.