MR. PRESIDENT:
The Senate Committee on Finance, to which was referred Senate Bill No. 166, 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:
Delete the title and insert the following:
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
Delete everything after the enacting clause and insert the following:
SOURCE: IC 6-3.5-1.1-9; (03)CR016601.1. -->
SECTION 1.
IC 6-3.5-1.1-9
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JUNE 1, 2003]: Sec. 9. (a) Revenue derived
from the imposition of the county adjusted gross income tax shall, in
the manner prescribed by this section, be distributed to the county that
imposed it. The amount to be distributed to a county during an ensuing
calendar year equals the amount of county adjusted gross income tax
revenue that the department, after reviewing the recommendation of the
state budget agency, estimates will be received from that county during
the twelve (12) month period beginning July 1 of the immediately
preceding calendar year and ending June 30 of the ensuing calendar
year. determines has been:
(1) received from that county for a taxable year ending before
the calendar year in which the determination is made; and
(2) reported on an annual return or amended return
processed by the department in the state fiscal year ending
before July 1 of the calendar year in which the determination
is made;
as adjusted (as determined after review of the recommendation of
the budget agency) for refunds of county adjusted gross income tax
made in the state fiscal year.
(b) Before July August 2 of each calendar year, the department,
after reviewing the recommendation of the state budget agency, shall
estimate and certify to the county auditor of each adopting county the
amount of county adjusted gross income tax revenue that will be
collected from that county during the twelve (12) month period
beginning July 1 of that calendar year and ending June 30 of the
immediately succeeding calendar year. determined under subsection
(a) plus the amount of interest in the county's account that has
accrued and has not been included in a certification made in a
preceding year. The amount certified is the county's "certified
distribution" for the immediately succeeding calendar year. The amount
certified may shall be adjusted under subsection subsections (c), or
(d), (e), and (f). The department shall provide with the certification
an informative summary of the calculations used to determine the
certified distribution.
(c) In calendar year 2003, the department may shall, after
reviewing the recommendation of the budget agency, certify to an
adopting county for distribution in calendar year 2004 an amount
that is greater than at least equal to the estimated twelve (12) month
revenue collection if the department, after reviewing the
recommendation of the state budget agency, determines that there will
be a greater amount of revenue available for distribution from the
county's account established under section 8 of this chapter. amount
certified in 2002 for distribution in 2003. However, if the county
council reduced the tax rate by ordinance adopted after December
31, 2001, the amount certified must reflect the reduced tax rate.
(d) The department may shall certify an amount less than the
estimated twelve (12) month revenue collection amount determined
under subsections (b) and (c) if the department, after reviewing the
recommendation of the state budget agency, determines that a part of
those collections need to be distributed during the current calendar year
so that the county will receive its full certified distribution for the
current calendar year. the reduced distribution is necessary to offset
overpayments made in a calendar year before the calendar year of
the distribution, including any overpayment resulting from the
application of subsection (c). The department, after reviewing the
recommendation of the budget agency, may reduce the amount of
the certified distribution over several calendar years so that any
overpayments are offset over several years rather than in one (1)
lump sum.
(e) The department, after reviewing the recommendation of the
budget agency, shall adjust the certified distribution of a county to
correct for any clerical or mathematical errors made in any
previous certification under this section. The department, after
reviewing the recommendation of the budget agency, may reduce
the amount of the certified distribution over several calendar years
so that any adjustment under this subsection is offset over several
years rather than in one (1) lump sum.
(f) The department, after reviewing the recommendation of the
budget agency, shall adjust the certified distribution of a county to
provide the county with the distribution required under section
10(b) of this chapter.
SOURCE: IC 6-3.5-1.1-11; (03)CR016601.2. -->
SECTION 2.
IC 6-3.5-1.1-11
, AS AMENDED BY P.L.178-2002,
SECTION 58, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JUNE 1, 2003]: Sec. 11. (a) Except for:
(1) revenue that must be used to pay the costs of operating a jail
and juvenile detention center under section 2.5(d) of this chapter;
(2) revenue that must be used to pay the costs of:
(A) financing, constructing, acquiring, improving, renovating,
or equipping facilities and buildings;
(B) debt service on bonds; or
(C) lease rentals;
under section 2.8 of this chapter;
(3) revenue that must be used to pay the costs of construction,
improvement, renovation, or remodeling of a jail and related
buildings and parking structures under section 2.7 or 2.9 of this
chapter;
(4) revenue that must be used to pay the costs of operating and
maintaining a jail and justice center under section 3.5(d) of this
chapter; or
(5) revenue that must be used to pay the costs of constructing,
acquiring, improving, renovating, or equipping a county
courthouse under section 3.6 of this chapter;
the certified distribution received by a county treasurer shall, in the
manner prescribed in this section, be allocated, distributed, and used
by the civil taxing units and school corporations of the county as
certified shares and property tax replacement credits.
(b) Before August 2 August 10 of each calendar year, each county
auditor shall determine the part of the certified distribution for the next
succeeding calendar year that will be allocated as property tax
replacement credits and the part that will be allocated as certified
shares. The percentage of a certified distribution that will be allocated
as property tax replacement credits or as certified shares depends upon
the county adjusted gross income tax rate for resident county taxpayers
in effect on August 1 of the calendar year that precedes the year in
which the certified distribution will be received by two (2) years. The
percentages are set forth in the following table:
PROPERTY
COUNTY
TAX
ADJUSTED GROSS
REPLACEMENT
CERTIFIED
INCOME TAX RATE
CREDITS
SHARES
0.5%
50%
50%
0.75%
33 1/3%
66 2/3%
1%
25%
75%
(c) The part of a certified distribution that constitutes property tax
replacement credits shall be distributed as provided under sections 12,
13, and 14 of this chapter.
(d) The part of a certified distribution that constitutes certified
shares shall be distributed as provided by section 15 of this chapter.
SOURCE: IC 6-3.5-1.1-21; (03)CR016601.3. -->
SECTION 3.
IC 6-3.5-1.1-21
, AS AMENDED BY P.L.178-2002,
SECTION 59, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JUNE 1, 2003]: Sec. 21. Before July October 2 of each year, the
department shall submit a report to each county auditor indicating the
following:
(1) The balance in the county's adjusted gross income tax account
as of the end of the preceding year. cut-off date specified by the
budget agency.
(2) The required six (6) month balance, or three (3) month
balance if the county has adopted an ordinance under section 9.5
of this chapter before the end of the preceding year.
SOURCE: IC 6-3.5-1.1-21.1; (03)CR016601.4. -->
SECTION 4.
IC 6-3.5-1.1-21.1
, AS ADDED BY P.L.178-2002,
SECTION 60, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JUNE 1, 2003]: Sec. 21.1. (a) If, after receiving a recommendation
from the budget agency, the department determines that a sufficient
balance existed at the end of the preceding year exists in a county
account in excess of the required six (6) or three (3) month balance,
amount necessary, when added to other money that will be
deposited in the account after the date of the recommendation, to
make certified distributions to the county in the ensuing year, the
department may make a supplemental distribution to a county from the
county's adjusted gross income tax account.
(b) A supplemental distribution described in subsection (a) must be:
(1) made in January of the ensuing calendar year; and
(2) allocated and used in the same manner as certified
distributions.
(c) A determination under this section must be made before July
October 2.
SOURCE: IC 6-3.5-6-2; (03)CR016601.5. -->
SECTION 5.
IC 6-3.5-6-2
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JUNE 1, 2003]: Sec. 2. (a) A county income
tax council is established for each county in Indiana. The membership
of each county's county income tax council consists of the fiscal body
of the county and the fiscal body of each city or town that lies either
partially or entirely within that county.
(b) Using procedures described in this chapter, a county income tax
council may adopt ordinances to:
(1) impose the county option income tax in its county;
(2) subject to section 12 of this chapter, rescind the county option
income tax in its county;
(3) increase the county option income tax rate for the county;
(4) freeze the county option income tax rate for its county;
(5) increase the homestead credit in its county; or
(6) subject to section 12.5 of this chapter, decrease the county
option income tax rate for the county. or
(7) subject to section 17.5 of this chapter, elect to reduce the
required balance in the county special account.
(c) An ordinance adopted in a particular year under this chapter to
impose or rescind the county option income tax or to increase its tax
rate is effective July 1 of that year.
SOURCE: IC 6-3.5-6-17; (03)CR016601.6. -->
SECTION 6.
IC 6-3.5-6-17
, AS AMENDED BY P.L.178-2002,
SECTION 61, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JUNE 1, 2003]: Sec. 17. (a) Except as provided in section 2.5 of this
chapter, Revenue derived from the imposition of the county option
income tax shall, in the manner prescribed by this section, be
distributed to the county that imposed it. The amount that is to be
distributed to a county during an ensuing calendar year equals the
amount of county option income tax revenue that the department, after
reviewing the recommendation of the state budget agency, estimates
will be determines has been:
(1) received from that county during the twelve (12) month period
beginning July 1 of the immediately preceding for a taxable year
ending in a calendar year and ending June 30 of the ensuing
calendar year. preceding the calendar year in which the
determination is made; and
(2) reported on an annual return or amended return
processed by the department in the state fiscal year ending
before July 1 of the calendar year in which the determination
is made;
as adjusted (as determined after review of the recommendation of
the budget agency) for refunds of county option income tax made
in the state fiscal year.
(b) Before June 16 August 2 of each calendar year, the department,
after reviewing the recommendation of the state budget agency, shall
estimate and certify to the county auditor of each adopting county the
amount of county option income tax revenue that will be collected from
that county during the twelve (12) month period beginning July 1 of
that calendar year and ending June 30 of the immediately succeeding
calendar year. determined under subsection (a) plus the amount of
interest in the county's account that has accrued and has not been
included in a certification made in a preceding year. The amount
certified is the county's "certified distribution" for the immediately
succeeding calendar year. The amount certified may shall be adjusted,
as necessary, under subsection subsections (c), or (d), and (e). The
department shall provide with the certification an informative
summary of the calculations used to determine the certified
distribution.
under subsections (b) and (c), if the department, after reviewing the
recommendation of the budget agency, determines that a part of those
collections need to be distributed during the current calendar year so
that the county will receive its full certified distribution for the current
calendar year. the reduced distribution is necessary to offset
overpayments made in a calendar year before the calendar year of
the distribution, including any overpayment resulting from the
application of subsection (c). The department, after reviewing the
recommendation of the budget agency, may reduce the amount of
the certified distribution over several calendar years so that any
overpayments are offset over several years rather than in one (1)
lump sum.
(e) After reviewing the recommendation of the budget agency,
the department shall adjust the certified distribution of a county to
correct for any clerical or mathematical errors made in any
previous certification under this section. The department, after
reviewing the recommendation of the budget agency, may reduce
the amount of the certified distribution over several calendar years
so that any adjustment under this subsection is offset over several
years rather than in one (1) lump sum.
(f) The department, after reviewing the recommendation of the
budget agency, shall adjust the certified distribution of a county to
provide the county with the distribution required under section
16(b) of this chapter.
(g) The department, after reviewing the recommendation of the
budget agency, shall adjust the certified distribution of a county to
provide the county with the amount of any tax increase imposed
under section 25 or 26 of this chapter to provide additional
homestead credits as provided in those provisions.
SOURCE: IC 6-3.5-7-17.3; (03)CR016601.12. -->
SECTION 12.
IC 6-3.5-7-17.3
, AS ADDED BY P.L.178-2002,
SECTION 70, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JUNE 1, 2003]: Sec. 17.3. (a) If, after receiving a recommendation
from the budget agency, the department determines that a sufficient
balance existed at the end of the preceding year that exceeded the
required six (6) month balance as of the end of the preceding exists in
a county account in excess of the amount necessary, when added to
other money that will be deposited in the account after the date of
the recommendation, to make certified distributions to the county
in the ensuing year, the department may make a supplemental
distribution to a county from the county's special account.
(b) A supplemental distribution described in subsection (a) must be:
(1) made in January of the ensuing calendar year; and
(2) allocated and used in the same manner as certified
distributions.
(c) A determination under this section must be made before July
October 2.
SOURCE: IC 6-3.5-1.1-9.5; IC 6-3.5-6-17.4; IC 6-3.5-6-17.5; IC
6-3.5-6-17.6; IC 6-3.5-7-19.
; (03)CR016601.13. -->
SECTION 13. THE FOLLOWING ARE REPEALED [EFFECTIVE
JUNE 1, 2003]:
IC 6-3.5-1.1-9.5
;
IC 6-3.5-6-17.4
;
IC 6-3.5-6-17.5
;
IC 6-3.5-6-17.6
;
IC 6-3.5-7-19.
SOURCE: ; (03)CR016601.14. -->
SECTION 14. An emergency is declared for this act.
(Reference is to SB 166 as introduced.)
and when so amended that said bill do pass.
Committee Vote: Yeas 14, Nays 0.
Borst
CR016601/DI 44 2003