Reprinted
March 29, 2005
ENGROSSED
SENATE BILL No. 609
_____
DIGEST OF SB 609
(Updated March 28, 2005 9:37 pm - DI 84)
Citations Affected: IC 6-3.5; IC 36-9; noncode.
Synopsis: County income tax distributions. Distributes county
adjusted gross income tax (CAGIT) revenue to civil taxing units and
school corporations and county option income tax (COIT) revenue to
civil taxing units according to a formula that (1) excludes the portion
of property taxes used to pay debt issued after June 30, 2005, and (2)
includes the previous year's local income tax distribution. Provides that
the department of state revenue shall make adjustments to increase a
county's certified distribution of CAGIT, COIT, or county economic
development income tax (CEDIT) revenue when a county increases the
tax rate, in the same manner required when the county initially imposes
the tax. Changes the date (from January 1 to July 1) on which residency
is determined for purposes of the county adjusted gross income tax, the
county option income tax, the county economic development income
tax, and the municipal option income tax. Eliminates the necessity for
the county fiscal body of a county having a consolidated city to adopt
an ordinance to fund a public transportation corporation with COIT
revenue.
Effective: January 1, 2005 (retroactive); upon passage; July 1, 2005;
January 1, 2006.
Kenley, Hume
(HOUSE SPONSORS _ ESPICH, CRAWFORD)
January 24, 2005, read first time and referred to Committee on Tax and Fiscal Policy.
February 8, 2005, reported favorably _ Do Pass.
February 28, 2005, read second time, amended, ordered engrossed.
March 1, 2005, engrossed. Read third time, passed. Yeas 48, nays 0.
HOUSE ACTION
March 10, 2005, read first time and referred to Committee on Ways and Means.
March 17, 2005, amended, reported _ Do Pass.
March 21, 2005, read second time, ordered engrossed.
March 22, 2005, engrossed.
March 28, 2005, read third time, recommitted to Committee of One, amended; passed.
Yeas 97, nays 0.
Reprinted
March 29, 2005
First Regular Session 114th General Assembly (2005)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in
this style type, and deletions will appear in
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Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in
this style type. Also, the
word
NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in
this style type or
this style type reconciles conflicts
between statutes enacted by the 2004 Regular Session of the General Assembly.
ENGROSSED
SENATE BILL No. 609
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
Be it enacted by the General Assembly of the State of Indiana:
SECTION 1. IC 6-3.5-1.1-1.1 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2006]: Sec. 1.1. (a) For purposes of
allocating the certified distribution made to a county under this
chapter among the civil taxing units and school corporations in the
county, the allocation amount for a civil taxing unit or school
corporation is the amount determined using the following formula:
STEP ONE: Determine the sum of the total property taxes
being collected by the civil taxing unit or school corporation
during the calendar year of the distribution.
STEP TWO: Determine the sum of the following:
(A) Amounts appropriated from property taxes to pay the
principal of or interest on any debenture or other debt
obligation issued after June 30, 2005, other than an
obligation described in subsection (b).
(B) Amounts appropriated from property taxes to make
payments on any lease entered into after June 30, 2005,
other than a lease described in subsection (c).
(C) The proceeds of any property that are:
(i) received as the result of the issuance of a debt
obligation described in clause (A) or a lease described in
clause (B); and
(ii) appropriated from property taxes for any purpose
other than to refund or otherwise refinance a debt
obligation or lease described in subsection (b) or (c).
STEP THREE: Subtract the STEP TWO amount from the
STEP ONE amount.
STEP FOUR: Determine the sum of:
(A) the STEP THREE amount; plus
(B) the civil taxing unit's or school corporation's certified
distribution for the previous calendar year.
(b) Except as provided in this subsection, an appropriation from
property taxes to repay interest and principal of a debt obligation
is not deducted from the allocation amount for a civil taxing unit
or school corporation if:
(1) the debt obligation was issued; and
(2) the proceeds appropriated from property taxes;
to refund or otherwise refinance a debt obligation or a lease issued
before July 1, 2005. However, an appropriation from property
taxes related to a debt obligation issued after June 30, 2005, is
deducted if the debt extends payments on a debt or lease beyond
the time in which the debt or lease would have been payable if the
debt or lease had not been refinanced or increases the total amount
that must be paid on a debt or lease in excess of the amount that
would have been paid if the debt or lease had not been refinanced.
The amount of the deduction is the annual amount for each year of
the extension period or the annual amount of the increase over the
amount that would have been paid.
(c) Except as provided in this subsection, an appropriation from
property taxes to make payments on a lease is not deducted from
the allocation amount for a civil taxing unit or school corporation
if:
(1) the lease was issued; and
(2) the proceeds were appropriated from property taxes;
to refinance a debt obligation or lease issued before July 1, 2005.
However, an appropriation from property taxes related to a lease
entered into after June 30, 2005, is deducted if the lease extends
payments on a debt or lease beyond the time in which the debt or
lease would have been payable if the debt or lease had not been
refinanced or increases the total amount that must be paid on a
debt or lease in excess of the amount that would have been paid if
the debt or lease had not been refinanced. The amount of the
deduction is the annual amount for each year of the extension
period or the annual amount of the increase over the amount that
would have been paid.
SOURCE: IC 6-3.5-1.1-9; (05)ES0609.2.2. -->
SECTION 2. IC 6-3.5-1.1-9 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: 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
budget agency, 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 August 2 of each calendar year, the department, after
reviewing the recommendation of the budget agency, shall certify to the
county auditor of each adopting county the amount 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 shall be adjusted under subsections (c), (d), (e), (f), and (g).
The department shall provide with the certification an informative
summary of the calculations used to determine the certified
distribution.
(c) The department shall certify an amount less than the amount
determined under subsection (b) if the department, after reviewing the
recommendation of the budget agency, determines that the reduced
distribution is necessary to offset overpayments made in a calendar
year before the calendar year of the distribution. 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.
(d) 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.
(e) 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.
(f) This subsection applies to a county that:
(1) initially imposes a the county adjusted gross income tax; or
(2) increases the county adjusted income tax rate;
under this chapter in the same calendar year in which the department
makes a certification under this section. The department, after
reviewing the recommendation of the budget agency, shall adjust the
certified distribution of a county to provide for a distribution in the
immediately following calendar year and in each calendar year
thereafter. The department shall provide for a full transition to
certification of distributions as provided in subsection (a)(1) through
(a)(2) in the manner provided in subsection (c).
(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 distribution required under section 3.3 of
this chapter beginning not later than the tenth month after the month in
which additional revenue from the tax authorized under section 3.3 of
this chapter is initially collected.
SOURCE: IC 6-3.5-1.1-11; (05)ES0609.2.3. -->
SECTION 3. IC 6-3.5-1.1-11 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2006]: 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, 2.9, or 3.3 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 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 6-3.5-1.1-12; (05)ES0609.2.4. -->
SECTION 4. IC 6-3.5-1.1-12 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2006]: Sec. 12. (a) The part
of a county's certified distribution for a calendar year that is to be used
as property tax replacement credits shall be allocated by the county
auditor among the civil taxing units and school corporations of the
county.
(b) Except as provided in section 13 of this chapter, the amount of
property tax replacement credits that each civil taxing unit and school
corporation in a county is entitled to receive during a calendar year
equals the product of:
(1) that part of the county's certified distribution that is dedicated
to providing property tax replacement credits for that same
calendar year; multiplied by
(2) a fraction:
(A) The numerator of the fraction equals the
sum of the total
property taxes being collected by the civil taxing unit or school
corporation during that calendar year, plus with respect to a
civil taxing unit, the amount of federal revenue sharing funds
and certified shares received by it during that calendar year to
the extent that they are used to reduce its property tax levy
below the limit imposed by IC 6-1.1-18.5 for that same
calendar year allocation amount for the civil taxing unit or
school corporation during that calendar year.
(B) The denominator of the fraction equals the sum of the
total
property taxes being collected by all civil taxing units and
school corporations, plus the amount of federal revenue
sharing funds and certified shares received by all civil taxing
units in the county to the extent that they are used to reduce
the civil taxing units' property tax levies below the limits
imposed by IC 6-1.1-18.5 for that same calendar year
allocation amounts for all the civil taxing units and school
corporations of the county for that calendar year.
(c) The department of local government finance shall provide each
county auditor with the amount of property tax replacement credits that
each civil taxing unit and school corporation in the auditor's county is
entitled to receive under this section. The county auditor shall then
certify to each civil taxing unit and school corporation the amount of
property tax replacement credits it is entitled to receive (after
adjustment made under section 13 of this chapter) under this section
during that calendar year. The county auditor shall also certify these
distributions to the county treasurer.
SOURCE: IC 6-3.5-1.1-14; (05)ES0609.2.5. -->
SECTION 5. IC 6-3.5-1.1-14 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2006]: Sec. 14. (a) In
determining the amount of property tax replacement credits civil taxing
units and school corporations of a county are entitled to receive during
a calendar year, the department of local government finance shall
consider only property taxes imposed on tangible property that was
assessed in that county.
(b) If a civil taxing unit or a school corporation is located in more
than one (1) county and receives property tax replacement credits from
one (1) or more of the counties, then the property tax replacement
credits received from each county shall be used only to reduce the
property tax rates that are imposed within the county that distributed
the property tax replacement credits.
(c) A civil taxing unit shall treat any property tax replacement
credits that it receives or is to receive during a particular calendar year
as a part of its property tax levy for that same calendar year for
purposes of fixing its budget and for purposes of the property tax levy
limits imposed by IC 6-1.1-18.5.
(d) Subject to subsection (e), if a civil taxing unit or school
corporation of an adopting county does not impose a property tax
levy that is first due and payable in a calendar year in which
property tax replacement credits are being distributed, the civil
taxing unit or school corporation is entitled to use the property tax
replacement credits distributed to the civil taxing unit or school
corporation for any purpose for which a property tax levy could be
used.
(d) (e) A school corporation shall treat any property tax replacement
credits that the school corporation receives or is to receive during a
particular calendar year as a part of its property tax levy for its general
fund, debt service fund, capital projects fund, transportation fund,
school bus replacement fund, and special education preschool fund
in proportion to the levy for each of these funds for that same calendar
year for purposes of fixing its budget and for purposes of the property
tax levy limits imposed by IC 6-1.1-19. A school corporation shall
allocate the property tax replacement credits described in this
subsection to all five (5) six (6) funds in proportion to the levy for each
fund.
SOURCE: IC 6-3.5-1.1-15; (05)ES0609.2.6. -->
SECTION 6. IC 6-3.5-1.1-15 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2006]: Sec. 15. (a) As used in
this section,
"attributed levy" "attributed allocation amount" of a
civil taxing unit
for a calendar year 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
allocation amount of the civil taxing unit for that calendar
year; 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
(4) (3) in the case of 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.
(b) The part of a county's certified distribution that is to be used as
certified shares shall be allocated only among the county's civil taxing
units. Each civil taxing unit of a county is entitled to receive a
percentage of the certified shares to be distributed in the county equal
to the ratio of its attributed levy to the total attributed levies of all civil
taxing units of the county. certified share during a calendar year in
an amount determined in STEP TWO of the following formula:
STEP ONE: Divide:
(A) the attributed allocation amount of the civil taxing unit
during that calendar year; by
(B) the sum of the attributed allocation amounts of all the
civil taxing units of the county during that calendar year.
STEP TWO: Multiply the part of the county's certified
distribution that is to be used as certified shares by the STEP
ONE amount.
(c) The local government tax control board established by
IC 6-1.1-18.5-11 shall determine the attributed levies of civil taxing
units that are entitled to receive certified shares during a calendar year.
If the ad valorem property tax levy of any special taxing district,
authority, board, or other entity is attributed to another civil taxing unit
under subsection (b)(2), (a)(2), then the special taxing district,
authority, board, or other entity shall not be treated as having an
attributed levy allocation amount of its own. The local government tax
control board shall certify the attributed levy allocation amounts to the
appropriate county auditor. The county auditor shall then allocate the
certified shares among the civil taxing units of the auditor's county.
(d) Certified shares received by a civil taxing unit shall be treated
as additional revenue for the purpose of fixing its budget for the
calendar year during which the certified shares will be received. The
certified shares may be allocated to or appropriated for any purpose,
including property tax relief or a transfer of funds to another civil
taxing unit whose levy was attributed to the civil taxing unit in the
determination of its attributed levy allocation amount.
SOURCE: IC 6-3.5-1.1-16; (05)ES0609.2.7. -->
SECTION 7. IC 6-3.5-1.1-16 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005 (RETROACTIVE)]:
Sec. 16. (a) For purposes of this chapter, an individual shall be treated
as a resident of the county in which
he: 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 neither subdivision (1) or (2) applies, registers
his the
individual's personal automobile; or
(4) if neither subdivision (1), (2), or (3) applies, spends the
majority of
his 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 July 1 of the calendar year
in which the individual's taxable year commences. If an individual
changes the location of
his the individual's residence or principal
place of employment or business to another county in Indiana
during
after July 1 of a calendar year,
his the individual's liability for county
adjusted gross income tax is not affected.
(c) Notwithstanding subsection (b), if an individual becomes a
county taxpayer for purposes of IC 36-7-27 during a calendar year
because the individual:
(1) changes the location of the individual's residence to a county
in which the individual begins employment or business at a
qualified economic development tax project (as defined in
IC 36-7-27-9); or
(2) changes the location of the individual's principal place of
employment or business to a qualified economic development tax
project and does not reside in another county in which the county
adjusted gross income tax is in effect;
the individual's adjusted gross income attributable to employment or
business at the qualified economic development tax project is taxable
only by the county containing the qualified economic development tax
project.
SOURCE: IC 6-3.5-6-1; (05)ES0609.2.8. -->
SECTION 8. IC 6-3.5-6-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2006]: Sec. 1. As used in this
chapter:
"Adjusted gross income" has the same definition that the term is
given in IC 6-3-1-3.5. However, in the case of a county taxpayer who
is not treated as a resident county taxpayer of a county, the term
includes only adjusted gross income derived from his principal place
of business or employment.
"Civil taxing unit" means any entity, except a school corporation,
that has the power to impose ad valorem property taxes. The term does
not include a solid waste management district that is not entitled to a
distribution under section 1.3 of this chapter. However, in the case of
a county in which a consolidated city is located, the consolidated city,
the county, all special taxing districts, special service districts, included
towns (as defined in IC 36-3-1-7), and all other political subdivisions
except townships, excluded cities (as defined in IC 36-3-1-7), a public
transportation corporation established under IC 36-9-4, and school
corporations shall be deemed to comprise one (1) civil taxing unit
whose fiscal body is the fiscal body of the consolidated city.
"County income tax council" means a council established by section
2 of this chapter.
"County taxpayer", as it relates to a particular county, means any
individual:
(1) who resides in that county on the date specified in section 20
of this chapter; or
(2) who maintains his principal place of business or employment
in that county on the date specified in section 20 of this chapter
and who does not reside on that same date in another county in
which the county option income tax, the county adjusted income
tax, or the county economic development income tax is in effect.
"Department" refers to the Indiana department of state revenue.
"Fiscal body" has the same definition that the term is given in
IC 36-1-2-6.
"Resident county taxpayer", as it relates to a particular county,
means any county taxpayer who resides in that county on the date
specified in section 20 of this chapter.
"School corporation" has the same definition that the term is given
in IC 6-1.1-1-16.
SOURCE: IC 6-3.5-6-1.1; (05)ES0609.2.9. -->
SECTION 9. IC 6-3.5-6-1.1 IS ADDED TO THE INDIANA CODE
AS A
NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2006]:
Sec. 1.1. (a) For purposes of allocating the
certified distribution made to a county under this chapter among
the civil taxing units in the county, the allocation amount for a civil
taxing unit is the amount determined using the following formula:
STEP ONE: Determine the total property taxes that are first
due and payable to the civil taxing unit during the calendar
year of the distribution 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.
STEP TWO: Determine the sum of the following:
(A) Amounts appropriated from property taxes to pay the
principal of or interest on any debenture or other debt
obligation issued after June 30, 2005, other than an
obligation described in subsection (b).
(B) Amounts appropriated from property taxes to make
payments on any lease entered into after June 30, 2005,
other than a lease described in subsection (c).
(C) The proceeds of any property that are:
(i) received as the result of the issuance of a debt
obligation described in clause (A) or a lease described in
clause (B); and
(ii) appropriated from property taxes for any purpose
other than to refund or otherwise refinance a debt
obligation or lease described in subsection (b) or (c).
STEP THREE: Subtract the STEP TWO amount from the
STEP ONE amount.
STEP FOUR: Determine the sum of:
(A) the STEP THREE amount; plus
(B) the civil taxing unit or school corporation's certified
distribution for the previous calendar year.
(b) Except as provided in this subsection, an appropriation from
property taxes to repay interest and principal of a debt obligation
is not deducted from the allocation amount for a civil taxing unit
if:
(1) the debt obligation was issued; and
(2) the proceeds appropriated from property taxes;
to refund or otherwise refinance a debt obligation or a lease issued
before July 1, 2005. However, an appropriation from property
taxes related to a debt obligation issued after June 30, 2005, is
deducted if the debt extends payments on a debt or lease beyond
the time in which the debt or lease would have been payable if the
debt or lease had not been refinanced or increases the total amount
that must be paid on a debt or lease in excess of the amount that
would have been paid if the debt or lease had not been refinanced.
The amount of the deduction is the annual amount for each year of
the extension period or the annual amount of the increase over the
amount that would have been paid.
(c) Except as provided in this subsection, an appropriation from
property taxes to make payments on a lease is not deducted from
the allocation amount for a civil taxing unit if:
(1) the lease was issued; and
(2) the proceeds were appropriated from property taxes;
to refinance a debt obligation or lease issued before July 1, 2005.
However, an appropriation from property taxes related to a lease
entered into after June 30, 2005, is deducted if the lease extends
payments on a debt or lease beyond the time in which the debt or
lease would have been payable if it had not been refinanced or
increases the total amount that must be paid on a debt or lease in
excess of the amount that would have been paid if the debt or lease
had not been refinanced. The amount of the deduction is the annual
amount for each year of the extension period or the annual amount
of the increase over the amount that would have been paid.
SOURCE: IC 6-3.5-6-17; (05)ES0609.2.10. -->
SECTION 10. IC 6-3.5-6-17 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 17. (a) 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
budget agency, determines has been:
(1) received from that county for a taxable year ending in a
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 August 2 of each calendar year, the department, after
reviewing the recommendation of the budget agency, shall certify to the
county auditor of each adopting county the amount 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 shall be adjusted, as necessary, under subsections (c), (d), and
(e). The department shall provide with the certification an informative
summary of the calculations used to determine the certified
distribution.
(c) The department shall certify an amount less than the amount
determined under subsection (b) if the department, after reviewing the
recommendation of the budget agency, determines that the reduced
distribution is necessary to offset overpayments made in a calendar
year before the calendar year of the distribution. 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.
(d) 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.
(e) This subsection applies to a county that:
(1) initially imposed a county option income tax; or
(2) increases the county option income tax rate;
under this chapter in the same calendar year in which the department
makes a certification under this section. The department, after
reviewing the recommendation of the budget agency, shall adjust the
certified distribution of a county to provide for a distribution in the
immediately following calendar year and in each calendar year
thereafter. The department shall provide for a full transition to
certification of distributions as provided in subsection (a)(1) through
(a)(2) in the manner provided in subsection (c).
(f) One-twelfth (1/12) of each adopting county's certified
distribution for a calendar year shall be distributed from its account
established under section 16 of this chapter to the appropriate county
treasurer on the first day of each month of that calendar year.
(g) Upon receipt, each monthly payment of a county's certified
distribution shall be allocated among, distributed to, and used by the
civil taxing units of the county as provided in sections 18 and 19 of this
chapter.
(h) All distributions from an account established under section 16
of this chapter shall be made by warrants issued by the auditor of state
to the treasurer of state ordering the appropriate payments.
SOURCE: IC 6-3.5-6-18; (05)ES0609.2.11. -->
SECTION 11. IC 6-3.5-6-18 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2006]: 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
established provided in an election, if any, made by the county
fiscal body under
IC 36-9-4-42; IC 36-9-4;
(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 allocation amount for the civil taxing unit
for the calendar year in which the month falls. 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
allocation amounts of all the civil taxing units of the county
for the calendar year in which the month falls.
(f) The 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 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.
SOURCE: IC 6-3.5-6-20; (05)ES0609.2.12. -->
SECTION 12. IC 6-3.5-6-20 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005 (RETROACTIVE)]:
Sec. 20. (a) For purposes of this chapter, an individual shall be treated
as a resident of the county in which
he: 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
his the
individual's personal automobile; or
(4) if subdivision (1), (2), or (3) does not apply, spends the
majority of
his 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 July 1 of the calendar year
in which the individual's taxable year commences. If an individual
changes the location of
his the individual's residence or principal
place of employment or business to another county in Indiana
during
after July 1 of a calendar year,
his the individual's liability for county
option income tax is not affected.
(c) Notwithstanding subsection (b), if an individual becomes a
county taxpayer for purposes of IC 36-7-27 during a calendar year
because the individual:
(1) changes the location of the individual's residence to a county
in which the individual begins employment or business at a
qualified economic development tax project (as defined in
IC 36-7-27-9); or
(2) changes the location of the individual's principal place of
employment or business to a qualified economic development tax
project and does not reside in another county in which the county
option income tax is in effect;
the individual's adjusted gross income attributable to employment or
business at the qualified economic development tax project is taxable
only by the county containing the qualified economic development tax
project.
SOURCE: IC 6-3.5-7-11; (05)ES0609.2.13. -->
SOURCE: IC 6-3.5-7-11. -->
SECTION 13. IC 6-3.5-7-11 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 11. (a) Revenue
derived from the imposition of the county economic development
income tax shall, in the manner prescribed by this section, be
distributed to the county that imposed it.
(b) Before August 2 of each calendar year, the department, after
reviewing the recommendation of the budget agency, shall certify to the
county auditor of each adopting county the sum of the amount of
county economic development income tax revenue that the department
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 economic development income
tax made in the state fiscal year plus the amount of interest in the
county's account that has been accrued and has not been included in a
certification made in a preceding year. The amount certified is the
county's certified distribution, which shall be distributed on the dates
specified in section 16 of this chapter for the following calendar year.
The amount certified shall be adjusted under subsections (c), (d), (e),
(f), and (g). The department shall provide with the certification an
informative summary of the calculations used to determine the certified
distribution.
(c) The department shall certify an amount less than the amount
determined under subsection (b) if the department, after reviewing the
recommendation of the budget agency, determines that the reduced
distribution is necessary to offset overpayments made in a calendar
year before the calendar year of the distribution. 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.
(d) 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.
(e) 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.
(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 amount of any tax increase imposed under
section 25 or 26 of this chapter to provide additional homestead credits
as provided in those provisions.
(g) This subsection applies to a county that:
(1) initially imposed a the county economic development
income tax; or
(2) increases the county economic development income rate;
under this chapter in the same calendar year in which the department
makes a certification under this section. The department, after
reviewing the recommendation of the budget agency, shall adjust the
certified distribution of a county to provide for a distribution in the
immediately following calendar year and in each calendar year
thereafter. The department shall provide for a full transition to
certification of distributions as provided in subsection (b)(1) through
(b)(2) in the manner provided in subsection (c).
SOURCE: IC 6-3.5-7-17; (05)ES0609.2.14. -->
SECTION 14. IC 6-3.5-7-17 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005 (RETROACTIVE)]:
Sec. 17. (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)
home 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 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 July 1 of the calendar year
in which the individual's taxable year commences. If an individual
changes location of residence or principal place of employment or
business to another county in Indiana during after July 1 of a calendar
year, the individual's liability for county economic development income
tax is not affected.
(c) Notwithstanding subsection (b), if an individual becomes a
county taxpayer for purposes of IC 36-7-27 during a calendar year
because the individual:
(1) changes the location of the individual's residence to a county
in which the individual begins employment or business at a
qualified economic development tax project (as defined in
IC 36-7-27-9); or
(2) changes the location of the individual's principal place of
employment or business to a qualified economic development tax
project and does not reside in another county in which the county
economic development income tax is in effect;
the individual's adjusted gross income attributable to employment or
business at the qualified economic development tax project is taxable
only by the county containing the qualified economic development tax
project.
SOURCE: IC 6-3.5-8-21; (05)ES0609.2.15. -->
SECTION 15. IC 6-3.5-8-21 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005 (RETROACTIVE)]:
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 July 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 after July 1 of a calendar year, the individual's liability for
municipal option income tax is not affected.
SOURCE: IC 36-9-4-42; (05)ES0609.2.16. -->
SECTION 16. IC 36-9-4-42 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2006]: Sec. 42. (a) A
municipality or a public transportation corporation that expends money
for the establishment or maintenance of an urban mass transportation
system under this chapter may acquire the money for these
expenditures:
(1) by issuing bonds under section 43 or 44 of this chapter;
(2) by borrowing money made available for such purposes by any
source;
(3) by accepting grants or contributions made available for such
purposes by any source;
(4) in the case of a municipality, by appropriation from the
general fund of the municipality, or from a special fund that the
municipal legislative body includes in the municipality's budget;
or
(5) in the case of a public transportation corporation, by levying
a tax under section 49 of this chapter or by recommending an
election to use revenue from the county option income taxes, as
provided in subsection (c). using revenue from county option
income taxes.
(b) Money may be acquired under this section for the purpose of
exercising any of the powers granted by or incidental to this chapter,
including:
(1) studies under section 4, 9, or 11 of this chapter;
(2) grants in aid;
(3) the purchase of buses or real property by a municipality for
lease to an urban mass transportation system, including the
payment of any amount outstanding under a mortgage, contract of
sale, or other security device that may attach to the buses or real
property;
(4) the acquisition by a public transportation corporation of
property of an urban mass transportation system, including the
payment of any amount outstanding under a mortgage, contract of
sale, or other security device that may attach to the property;
(5) the operation of an urban mass transportation system by a
public transportation corporation, including the acquisition of
additional property for such a system; and
(6) the retirement of bonds issued and outstanding under this
chapter.
(c) This subsection applies only to a public transportation
corporation located in a county having a consolidated city. In order to
provide revenue to a public transportation corporation during a year,
the public transportation corporation board may recommend and the
county fiscal body may elect to provide revenue to the corporation from
part the certified distribution, if any, that the county is to receive during
same year under IC 6-3.5-6-17. To make the election, the county fiscal
body must adopt an ordinance before September 1 of the preceding
year. The county fiscal body must specify in the ordinance amount of
the certified distribution that is to be used to provide revenue to the
corporation. If such an ordinance is adopted, the county fiscal body
shall immediately send a copy of the ordinance to the county auditor.
SOURCE: ; (05)ES0609.2.17. -->
SECTION 17. [EFFECTIVE JANUARY 1, 2005
(RETROACTIVE)]
IC 6-3.5-1.1-16, IC 6-3.5-6-20, IC 6-3.5-7-17,
and IC 6-3.5-8-21, all as amended by this act, apply only to taxable
years beginning after December 31, 2004.
SOURCE: ; (05)ES0609.2.18. -->
SOURCE: -->
SECTION 18. [EFFECTIVE JANUARY 1, 2006] (a) The
definitions in IC 6-3.5 apply throughout this SECTION.
(b) IC 6-3.5-1.1-1, IC 6-3.5-1.1-12, IC 6-3.5-1.1-14, and
IC 6-3.5-1.1-15, all as amended by this act, and IC 6-3.5-1.1-1.1, as
added by this act, apply to the allocation among the civil taxing
units and school corporations of the certified distribution of county
adjusted gross income tax revenue made to a county for a year
beginning after December 31, 2005.
(c) IC 6-3.5-6-1, IC 6-3.5-6-18, and IC 6-3.5-1.1-19, all as
amended by this act, and IC 6-3.5-6-1.1, as added by this act, apply
to the allocation among the civil taxing units of the certified
distribution of county option income tax revenue made to a county
for a year beginning after December 31, 2005.
(d) IC 6-3.5-7-12, as amended by this act, and IC 6-3.5-7-1.3,
IC 6-3.5-7-4.5, and IC 6-3.5-4.9, all as added by this act, apply to
the allocation among the county, cities, and towns of the certified
distribution of county economic development income tax revenue
made to a county for a year beginning after December 31, 2005.
SOURCE: ; (05)ES0609.2.19. -->
SECTION 19. [EFFECTIVE UPON PASSAGE] Notwithstanding
IC 6-3.5-1.1-11(b), IC 6-3.5-6-17(b), and IC 6-3.5-7-11(b), all as
amended by this act, the department of state revenue shall, before
August 2, 2005, adjust the certified distribution of a county made
on or before August 2, 2004, in accordance with IC 6-3.5-1.1-9(f),
IC 6-3.5-6-17(e), and IC 6-3.5-7-11(g), all as amended by this act.
SOURCE: ; (05)ES0609.2.20. -->
SECTION 20.
An emergency is declared for this act.