January 4, 2005, read first time and referred to Committee on Tax and Fiscal Policy.
January 18, 2005, reported favorably _ Do Pass.
January 19, 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
this style type.
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.
SENATE BILL No. 100
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 6-3.5-6-19; (05)SB0100.1.1. -->
SECTION 1. IC 6-3.5-6-19 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 19. (a) Except as
provided in sections 18(e) and 18.5(b)(3) of this chapter, in
determining the fractional share of distributive shares the civil taxing
units of a county are entitled to receive under section 18 of this chapter
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.
(b) In determining the amount of distributive shares a civil taxing
unit is entitled to receive under section 18(g) of this chapter, the
department of local government finance shall consider only the
percentage of the civil taxing unit's budget that equals the ratio that the
total assessed valuation that lies within the civil taxing unit and the
county that has adopted the county option tax bears to the total assessed
valuation that lies within the civil taxing unit.
(c) The distributive shares to be allocated and distributed under this
chapter:
(1) shall be treated by each civil taxing unit as additional revenue
for the purpose of fixing its budget for the budget year during
which the distributive shares is to be distributed to the civil taxing
unit; and
(2) may be used for any lawful purpose of the civil taxing unit.
(d) In the case of a civil taxing unit that includes a consolidated city,
its fiscal body may distribute any revenue it receives under this chapter
to any governmental entity located in its county except an excluded
city, a township, or a school corporation.
SOURCE: IC 6-3.5-7-13.1; (05)SB0100.1.2. -->
SECTION 2. IC 6-3.5-7-13.1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 13.1. (a) The fiscal
officer of each county, city, or town for a county in which the county
economic development tax is imposed shall establish an economic
development income tax fund. Except as provided in sections 23, 25,
26, and 27 of this chapter, the revenue received by a county, city, or
town under this chapter shall be deposited in the unit's economic
development income tax fund.
(b) Except as provided in sections 15, 23, 25, 26, and 27 of this
chapter, revenues from the county economic development income tax
may be used as follows:
(1) By a county, city, or town for economic development projects,
for paying, notwithstanding any other law, under a written
agreement all or a part of the interest owed by a private developer
or user on a loan extended by a financial institution or other
lender to the developer or user if the proceeds of the loan are or
are to be used to finance an economic development project, for
the retirement of bonds under section 14 of this chapter for
economic development projects, for leases under section 21 of
this chapter, or for leases or bonds entered into or issued prior to
the date the economic development income tax was imposed if
the purpose of the lease or bonds would have qualified as a
purpose under this chapter at the time the lease was entered into
or the bonds were issued.
(2) By a county, city, or town for:
(A) the construction or acquisition of, or remedial action with
respect to, a capital project for which the unit is empowered to
issue general obligation bonds or establish a fund under any
statute listed in IC 6-1.1-18.5-9.8;
(B) the retirement of bonds issued under any provision of
Indiana law for a capital project;
(C) the payment of lease rentals under any statute for a capital
project;
(D) contract payments to a nonprofit corporation whose
primary corporate purpose is to assist government in planning
and implementing economic development projects;
(E) operating expenses of a governmental entity that plans or
implements economic development projects;
(F) to the extent not otherwise allowed under this chapter,
funding substance removal or remedial action in a designated
unit; or
(G) funding of a revolving fund established under
IC 5-1-14-14.
(3) By a county, city, or town for any lawful purpose for
which money in any of its other funds may be used.
(c) As used in this section, an economic development project is any
project that:
(1) the county, city, or town determines will:
(A) promote significant opportunities for the gainful
employment of its citizens;
(B) attract a major new business enterprise to the unit; or
(C) retain or expand a significant business enterprise within
the unit; and
(2) involves an expenditure for:
(A) the acquisition of land;
(B) interests in land;
(C) site improvements;
(D) infrastructure improvements;
(E) buildings;
(F) structures;
(G) rehabilitation, renovation, and enlargement of buildings
and structures;
(H) machinery;
(I) equipment;
(J) furnishings;
(K) facilities;
(L) administrative expenses associated with such a project,
including contract payments authorized under subsection
(b)(2)(D);
(M) operating expenses authorized under subsection (b)(2)(E);
or
(N) to the extent not otherwise allowed under this chapter,
substance removal or remedial action in a designated unit;
or any combination of these.
(d) If there are bonds outstanding that have been issued under
section 14 of this chapter or leases in effect under section 21 of this
chapter, a county, city, or town may not expend money from its
economic development income tax fund for a purpose authorized
under subsection (b)(3) in a manner that would adversely affect
owners of the outstanding bonds or payment of any lease rentals
due.