I move that Engrossed House Bill 1478 be amended to read as follows:
transactions that occur within the county.
Sec. 8. A tax imposed under this chapter does not apply to a transaction to the extent that the transaction is exempt from the state gross retail tax under IC 6-2.5.
Sec. 9. (a) The fiscal body of a county that has imposed a tax under this chapter may adopt an ordinance to rescind the tax or reduce the tax rate. The fiscal body must specify in the ordinance the date the rescission of the tax or the reduction in the tax rate takes effect. The rescission of the tax or the reduction in the tax rate may not take effect until at least sixty (60) days after the date the ordinance is adopted.
(b) If a fiscal body adopts an ordinance to impose or rescind the tax under this chapter or reduce the tax rate under this chapter, the fiscal body shall immediately send a certified copy of the ordinance to the department.
Sec. 10. (a) A tax imposed under this chapter may be imposed only on the gross retail income derived from retail transactions. If the tax imposed under this chapter for a particular transaction results in a fraction of one-half cent ($0.005) or more, the amount of the tax shall be rounded to the next additional cent.
(b) A fiscal body may not under this chapter adopt a tax that exceeds the rate of twenty-five hundredths of one percent (0.25%). The department of state revenue may by rule specify the increments in which a tax rate under this chapter may be imposed.
(c) The rate of a tax imposed under this chapter, in addition to being limited under subsection (b), may not exceed the rate necessary to provide revenue sufficient to eliminate the property tax liability of taxpayers in the county.
Sec. 11. (a) A person who receives goods or services in a retail transaction that is taxed under this chapter is liable for the tax. The person shall pay the tax to the retail merchant as a separate amount added to the consideration for the goods or services. The retail merchant shall collect the tax as an agent for the state and the county that imposed the tax.
(b) The tax imposed under this chapter shall be imposed, paid, and collected in the same manner in which the state gross retail tax is imposed, paid, and collected under IC 6-2.5.
Sec. 12. All the provisions of IC 6-2.5 relating to rights, duties, liabilities, procedures, penalties, definitions, exemptions, and administration are applicable to the imposition and administration of the tax imposed under this section except to the extent those provisions are in conflict or inconsistent with the specific provisions of this chapter.
Sec. 13. (a) A special account within the state general fund shall be established for each county adopting a tax under this chapter. Revenue collected under this chapter within a county shall be deposited in that county's account in the state general fund.
(b) Income earned on money held in an account under
subsection (a) becomes a part of that account.
(c) Revenue remaining in an account established under subsection (a) at the end of a state fiscal year does not revert to the state general fund.
(d) On or before the twentieth day of each month, all amounts held in a county's account shall be distributed to the county.
(e) The amount to be distributed to the county is the total amount of taxes that were imposed and collected under this chapter from within the county during the preceding month. The department shall notify the county's fiscal officer of the amount of taxes to be distributed to the county.
(f) All distributions from the county's account shall be made by warrants issued by the auditor of state to the treasurer of state ordering those payments to the county.
Sec. 14. Tax revenue distributed to a county under this chapter may be used only for any combination of the following purposes, as specified by ordinance of the county council:
(1) The tax revenue may be used to provide local property tax replacement credits at a uniform rate to civil taxing units and school corporations in the county. 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:
(A) the tax revenue received by the county under this chapter in the preceding calendar year; multiplied by
(B) the following fraction:
(i) The numerator of the fraction equals the total property taxes being collected in the county by the civil taxing unit or school corporation during the calendar year of the distribution.
(ii) The denominator of the fraction equals the sum of the total property taxes being collected in the county by all civil taxing units and school corporations of the county during the calendar year of the distribution.
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 the civil taxing unit or school corporation is entitled to receive under this section during that calendar year. The county auditor shall also certify these distributions to the county treasurer. The local property tax replacement credits shall be treated for all purposes as property tax levies.
(2) The tax revenue may be used to uniformly increase the homestead credit percentage in the county. The additional homestead credits shall be treated for all purposes as
property tax levies. The additional homestead credits do not
reduce the basis for determining the state homestead credit
under IC 6-1.1-20.9. The additional homestead credits shall be
applied to the net property taxes due on the homestead after
the application of all other assessed value deductions or
property tax deductions and credits that apply to the amount
owed under IC 6-1.1. The department of local government
finance shall determine the additional homestead credit
percentage for a particular year based on the amount of tax
revenue that will be used under this subdivision to provide
additional homestead credits in that year.
Sec. 15. A tax imposed under this chapter is a listed tax for the purposes of IC 6-8.1.".