HB 1120-18_ Filed 04/06/2005, 10:53 Hershman
that Engrossed House Bill 1120 be amended to read as follows:
SOURCE: Page 76, line 37; (05)MO112009.76. -->
Page 76, between lines 37 and 38, begin a new paragraph and insert:
SOURCE: IC 6-3.1-10-10; (05)MO112009.41. -->
"SECTION 41. IC 6-3.1-10-10 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2005 (RETROACTIVE)]: Sec. 10. (a) A
taxpayer may assign any part of the credit to which the taxpayer
is entitled under this chapter to another taxpayer if the following
conditions are met:
(1) The credit was awarded before January 1, 2005.
(2) The credit was awarded for the taxpayer's qualified
investment in a business located in a county having a
population of more than one hundred forty-eight thousand
(148,000) but less than one hundred seventy thousand
(3) The fiscal body of the county described in subdivision (2)
adopts an ordinance authorizing the use of county revenues to
reimburse the state for the state revenues foregone by the
application of the credit to the state tax liability of the
An assignment under this subsection must be in writing. A credit
that is assigned under this subsection remains subject to this
(b) An assignment under subsection (a) must be reported on the
state tax returns of the taxpayer and the assignee for the year in
which the assignment is made in the manner prescribed by the
department. The taxpayer may not receive value in connection with
the assignment under subsection (a) that exceeds the value of the
part of the credit assigned.
(c) A taxpayer that assigns a tax credit under this section shall
contribute at least fourteen percent (14%) of the proceeds of the
assignment to the urban enterprise association established for the
enterprise zone in which the taxpayer is located.
(d) After making the contribution required under subsection (c),
a taxpayer that assigns a tax credit under this section shall reinvest
the remaining proceeds of the assignment in the taxpayer's
enterprise zone operations.".
SOURCE: Page 86, line 1; (05)MO112009.86. -->
Page 86, between lines 1 and 2, begin a new paragraph and insert:
SOURCE: IC 6-9-7-6; (05)MO112009.6. -->
"SECTION 6. IC 6-9-7-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 6. (a) The county
council may levy a tax on every person engaged in the business of
renting or furnishing, for periods of less than thirty (30) days, any room
or rooms, lodgings, or accommodations in any commercial hotel, motel,
inn, university memorial union, university residence hall, tourist camp,
or tourist cabin located in a county described in section 1 of this
chapter. The county treasurer shall allocate and distribute the tax
revenues as provided in
section sections 7 and 9 of this chapter.
(b) The tax may not exceed the rate of
five six percent (5%) (6%)
on the gross retail income derived from lodging income only and shall
be in addition to the state gross retail tax imposed under IC 6-2.5.
(c) The tax does not apply to gross retail income received in a
transaction in which:
(1) a student rents lodgings in a university residence hall while
that student participates in a course of study for which the student
receives college credit from a state university located in the
(2) a person rents a room, lodging, or accommodations for a
period of thirty (30) days or more.
(d) The county fiscal body may adopt an ordinance to require that
the tax be reported on forms approved by the county treasurer and that
the tax shall be paid monthly to the county treasurer. If such an
ordinance is adopted, the tax shall be paid to the county treasurer not
more than twenty (20) days after the end of the month the tax is
collected. If such an ordinance is not adopted, the tax shall be imposed,
paid, and collected in exactly the same manner as the state gross retail
tax is imposed, paid, and collected under IC 6-2.5.
(e) All of the provisions of IC 6-2.5 relating to rights, duties,
liabilities, procedures, penalties, definitions, exemptions, and
administration shall be applicable to the imposition and administration
of the tax imposed by this section, except to the extent those provisions
are in conflict or inconsistent with the specific provisions of this chapter
or the requirements of the county treasurer. If the tax is paid to the
department of state revenue, the return to be filed for the payment of the
tax under this section may be either a separate return or may be
combined with the return filed for the payment of the state gross retail
tax as the department of state revenue may, by rule, determine.
(f) If the tax is paid to the department of state revenue, the amounts
received from the tax imposed under this section shall be paid quarterly
by the treasurer of state to the county treasurer upon warrants issued by
the auditor of state.
SOURCE: IC 6-9-7-7; (05)MO112009.7. -->
SECTION 7. IC 6-9-7-7 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2005]: Sec. 7. (a) The county treasurer shall
establish an innkeeper's tax fund. The treasurer shall deposit in that
fund all money received under section 6 of this chapter that is
attributable to an innkeeper's tax rate that is not more than five
(b) Money in the innkeeper's tax fund shall be expended in the
(1) Through July 1999, not more than the revenue needed to
service bonds issued under IC 36-10-3-40 through IC 36-10-3-45
and outstanding on January 1, 1993, may be used to service
bonds. The county auditor shall make a semiannual distribution,
at the same time property tax revenue is distributed, to a park and
recreation district that has issued bonds payable from a county
innkeeper's tax. Each semiannual distribution must be equal to
one-half (1/2) of the annual principal and interest obligations on
the bonds. Money received by a park and recreation district under
this subdivision shall be deposited in a special fund to be used to
service the bonds. During August 1999 the money that had been
set aside to cover bond payments that remains after the bonds
have been retired plus sixty percent (60%) of the tax revenue
during August 1999 through December 1999 shall be distributed
to the county treasurer to be used by the county park board,
subject to appropriation by the county fiscal body.
(2) To the commission for its general use in paying operating
expenses and to carry out the purposes set forth in section 3(a)(6)
of this chapter. However, the amount that may be distributed
under this subdivision during any particular year may not exceed
the proceeds derived from an innkeeper's tax of two percent (2%)
through December 1999 and fifty percent (50%) of the tax
revenue beginning January 2000 and continuing through
(3) For the period beginning July 1, 2002, through December
2014, fifty percent (50%) of the revenue to the county treasurer to
be credited by the treasurer to a special account. The county
treasurer shall distribute money in the special account as follows:
(A) Seventy-five percent (75%) of the money in the special
account shall be distributed to the department of natural
resources for the development of projects in the state park on
the county's largest river, including its tributaries.
(B) Twenty-five percent (25%) of the money in the special
account shall be distributed to a community development
corporation that serves a metropolitan area in the county that
(i) a city having a population of more than fifty-five
thousand (55,000) but less than fifty-nine thousand (59,000);
(ii) a city having a population of more than twenty-eight
thousand seven hundred (28,700) but less than twenty-nine
for the community development corporation's use in tourism,
recreation, and economic development activities. For the
period beginning July 1, 2002, and continuing through
December 2006, the community development corporation shall
provide not less than forty percent (40%) of the money
received from the special account under this clause as a grant
to a nonprofit corporation that leases land in the state park
described in this subdivision for the nonprofit corporation's use
in noncapital projects in the state park.
Money in the special account may not be used for any other
purpose. The money credited to the account that has not been used
as specified in this subdivision by January 1, 2015, shall be
transferred to the commission to be used to make grants as
provided in subsection (c)(2).
(c) Money in the innkeeper's tax fund subject to appropriation by the
county council shall be allocated and distributed after December 2014
(1) Fifty percent (50%) of the revenue to the commission for the
commission's general use in paying operating expenses and to
carry out the purposes set forth in section 3(a)(6) of this chapter.
(2) The remainder to the commission to be used solely to make
grants for the development of recreation and tourism projects. The
commission shall establish and make public the criteria that will
be used in analyzing and awarding grants. At least ten percent
(10%) but not more than fifteen percent (15%) of the grants may
be awarded for noncapital projects. Grants may be made only to
the following entities upon application by the executive of the
(A) The county for deposit in a special account.
(B) The most populated city in the county for deposit in a
(C) The second most populated city in the county for deposit
in a special account.
(D) The Tippecanoe County Wabash River parkway
commission, but only so long as the interlocal agreement
among the political subdivisions listed in clauses (A) through
(C) is in effect. Money received by the parkway commission
shall be segregated in a special account.
(d) Money credited to special accounts under subsection (c)(2) shall
be used only for recreation or tourism projects, or both.
SOURCE: IC 6-9-7-9; (05)MO112009.7. -->
SECTION 7. IC 6-9-7-9 IS ADDED TO THE INDIANA CODE AS
SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1,
2005]: Sec. 9. (a) If the county fiscal body adopts an ordinance to
increase the county's innkeeper's tax rate to a rate that exceeds five
percent (5%), the county treasurer shall establish a supplemental
innkeeper's tax fund. The treasurer shall deposit in the fund all
money received under section 6 of this chapter that is attributable
to an innkeeper's tax rate that exceeds five percent (5%).
(b) Money in the fund may be used for any purpose that in the
discretion of the county fiscal body promotes economic
development in the county, including reimbursing the state in an
amount equal to the amount of state revenue foregone by the
application of a tax credit assigned under IC 6-3.1-10-10.".
SOURCE: Page 268, line 9; (05)MO112009.268. -->
Page 268, between lines 9 and 10, begin a new paragraph and insert:
SOURCE: ; (05)MO112009.143. -->
"SECTION 143. [EFFECTIVE JANUARY 1, 2005
(RETROACTIVE)] IC 6-3.1-10-10, as added by this act, applies to
taxable years beginning after December 31, 2004.
SOURCE: ; (05)MO112009.144. -->
SECTION 144. [EFFECTIVE JULY 1, 2005] (a) This SECTION
applies to a county having a population of more than one hundred
forty-eight thousand (148,000) but less than one hundred seventy
(b) The county fiscal body may adopt an ordinance authorizing
the use of county revenues to reimburse the state in an amount
equal to the amount of state revenue foregone by the application of
a tax credit assigned under IC 6-3.1-10-10, as added by this act.
The county fiscal body may use any source of revenue available to
the county, including innkeeper's taxes deposited in the county's
supplemental innkeeper's tax fund under IC 6-9-7-9, as added by
this act, to carry out an ordinance adopted under this SECTION.
(c) The development of the enterprise zone in the county's
largest city has been crucial to economic development in the city
and the county. The continued development of the enterprise zone
is enhanced by enabling a taxpayer to assign a tax credit awarded
for investment in the enterprise zone. These special circumstances
require legislation particular to the county.
(d) This SECTION expires January 1, 2008.
Renumber all SECTIONS consecutively.
(Reference is to EHB 1120 as printed April 4, 2005.)