HB 1478-23_ Filed 04/10/2007, 10:51 Broden

SENATE MOTION


MADAM PRESIDENT:

    I move
that Engrossed House Bill 1478 be amended to read as follows:

SOURCE: Page 1, line 1; (07)MO147827.1. -->     Page 1, delete lines 1 through 17.
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    " (d) For purposes of computing a credit under IC 6-1.1-20.6, a taxpayer's property tax liability does not include the liability for a tax levied under this chapter. A tax levied under this chapter may not be reduced on account of a credit under IC 6-1.1-20.6. A credit under IC 6-1.1-20.6 may not be increased on account of a tax levied under this chapter.".
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SOURCE: IC 6-3-2-1; (07)MO147827.10. -->     "SECTION 10. IC 6-3-2-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2008]: Sec. 1. (a) Each taxable year, a tax at the rate of three and four-tenths percent (3.4%) of adjusted gross income following rates is imposed upon the adjusted gross income of every resident person, and on that part of the adjusted

gross income derived from sources within Indiana of every nonresident person:
         (1) Three and four-tenths percent (3.4%) of the part of adjusted gross income that is less than forty-nine thousand nine hundred ninety-nine dollars ($49,999).
        (2) Three and eight-tenths percent (3.8%) of the part of adjusted gross income that is at least fifty thousand dollars ($50,000) but less than seventy-four thousand nine hundred ninety-nine dollars ($74,999).
        (3) Five percent (5%) of the part of adjusted gross income that is at least seventy-five thousand dollars ($75,000) but less than one hundred forty-nine thousand nine hundred ninety-nine dollars ($149,999).
        (4) Six percent (6%) of the part of adjusted gross income that equals or exceeds one hundred fifty thousand dollars ($150,000).

    (b) Except as provided in section 1.5 of this chapter, each taxable year, a tax at the rate of eight seven and five-tenths percent (8.5%) (7.5%) of adjusted gross income is imposed on that part of the adjusted gross income derived from sources within Indiana of every corporation.".

SOURCE: Page 77, line 31; (07)MO147827.77. -->     Page 77, delete lines 31 through 42, begin a new paragraph and insert:
    " (d) Notwithstanding any other provision of this section, the department of local government finance shall for each year after 2007 adjust the allocation amount of each school corporation to ensure that the school corporation's allocation amount is not reduced (as a percentage of the part of certified distributions that constitute property tax replacement credits) because of the elimination of the school corporation's tuition support levy.".
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SOURCE: IC 6-3.5-7-5; (07)MO147827.91. -->     "SECTION 91. IC 6-3.5-7-5, AS AMENDED BY P.L.162-2006, SECTION 33, AND AS AMENDED BY P.L.184-2006, SECTION 8, IS CORRECTED AND AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5. (a) Except as provided in subsection (c), the county economic development income tax may be

imposed on the adjusted gross income of county taxpayers. The entity that may impose the tax is:
        (1) the county income tax council (as defined in IC 6-3.5-6-1) if the county option income tax is in effect on January 1 of the year the county economic development income tax is imposed;
        (2) the county council if the county adjusted gross income tax is in effect on January 1 of the year the county economic development tax is imposed; or
        (3) the county income tax council or the county council, whichever acts first, for a county not covered by subdivision (1) or (2).
To impose the county economic development income tax, a county income tax council shall use the procedures set forth in IC 6-3.5-6 concerning the imposition of the county option income tax.
    (b) Except as provided in subsections (c), (g), (k), (p), and (r), the county economic development income tax may be imposed at a rate of:
        (1) one-tenth percent (0.1%);
        (2) two-tenths percent (0.2%);
        (3) twenty-five hundredths percent (0.25%);
        (4) three-tenths percent (0.3%);
        (5) thirty-five hundredths percent (0.35%);
        (6) four-tenths percent (0.4%);
        (7) forty-five hundredths percent (0.45%); or
        (8) five-tenths percent (0.5%);
on the adjusted gross income of county taxpayers.
    (c) Except as provided in subsection (h), (i), (j), (k), (l), (m), (n), (o), (p), or (s), or (v), the county economic development income tax rate plus the county adjusted gross income tax rate, if any, that are in effect on January 1 of a year may not exceed one and twenty-five hundredths percent (1.25%). Except as provided in subsection (g), (p), (r), (t), or (u), or (w), the county economic development tax rate plus the county option income tax rate, if any, that are in effect on January 1 of a year may not exceed one percent (1%).
    (d) To impose, increase, decrease, or rescind the county economic development income tax, the appropriate body must, after January 1 but before April 1 of a year, adopt an ordinance. The ordinance to impose the tax must substantially state the following:
    "The ________ County _________ imposes the county economic development income tax on the county taxpayers of _________ County. The county economic development income tax is imposed at a rate of _________ percent (____%) on the county taxpayers of the county. This tax takes effect July 1 of this year.".
    (e) Any ordinance adopted under this chapter takes effect July 1 of the year the ordinance is adopted.
    (f) The auditor of a county shall record all votes taken on ordinances presented for a vote under the authority of this chapter and shall, not more than ten (10) days after the vote, send a certified copy of the

results to the commissioner of the department by certified mail.
    (g) This subsection applies to a county having a population of more than one hundred forty-eight thousand (148,000) but less than one hundred seventy thousand (170,000). Except as provided in subsection (p), in addition to the rates permitted by subsection (b), the:
        (1) county economic development income tax may be imposed at a rate of:
            (A) fifteen-hundredths percent (0.15%);
            (B) two-tenths percent (0.2%); or
            (C) twenty-five hundredths percent (0.25%); and
        (2) county economic development income tax rate plus the county option income tax rate that are in effect on January 1 of a year may equal up to one and twenty-five hundredths percent (1.25%);
if the county income tax council makes a determination to impose rates under this subsection and section 22 of this chapter.
    (h) For a county having a population of more than forty-one thousand (41,000) but less than forty-three thousand (43,000), except as provided in subsection (p), the county economic development income tax rate plus the county adjusted gross income tax rate that are in effect on January 1 of a year may not exceed one and thirty-five hundredths percent (1.35%) if the county has imposed the county adjusted gross income tax at a rate of one and one-tenth percent (1.1%) under IC 6-3.5-1.1-2.5.
    (i) For a county having a population of more than thirteen thousand five hundred (13,500) but less than fourteen thousand (14,000), except as provided in subsection (p), the county economic development income tax rate plus the county adjusted gross income tax rate that are in effect on January 1 of a year may not exceed one and fifty-five hundredths percent (1.55%).
    (j) For a county having a population of more than seventy-one thousand (71,000) but less than seventy-one thousand four hundred (71,400), except as provided in subsection (p), the county economic development income tax rate plus the county adjusted gross income tax rate that are in effect on January 1 of a year may not exceed one and five-tenths percent (1.5%).
    (k) This subsection applies to a county having a population of more than twenty-seven thousand four hundred (27,400) but less than twenty-seven thousand five hundred (27,500). Except as provided in subsection (p), in addition to the rates permitted under subsection (b):
        (1) the county economic development income tax may be imposed at a rate of twenty-five hundredths percent (0.25%); and
        (2) the sum of the county economic development income tax rate and the county adjusted gross income tax rate that are in effect on January 1 of a year may not exceed one and five-tenths percent (1.5%);
if the county council makes a determination to impose rates under this subsection and section 22.5 of this chapter.


    (l) For a county having a population of more than twenty-nine thousand (29,000) but less than thirty thousand (30,000), except as provided in subsection (p), the county economic development income tax rate plus the county adjusted gross income tax rate that are in effect on January 1 of a year may not exceed one and five-tenths percent (1.5%).
    (m) For:
        (1) a county having a population of more than one hundred eighty-two thousand seven hundred ninety (182,790) but less than two hundred thousand (200,000); or
        (2) a county having a population of more than forty-five thousand (45,000) but less than forty-five thousand nine hundred (45,900);
except as provided in subsection (p), the county economic development income tax rate plus the county adjusted gross income tax rate that are in effect on January 1 of a year may not exceed one and five-tenths percent (1.5%).
    (n) For a county having a population of more than six thousand (6,000) but less than eight thousand (8,000), except as provided in subsection (p), the county economic development income tax rate plus the county adjusted gross income tax rate that are in effect on January 1 of a year may not exceed one and five-tenths percent (1.5%).
    (o) This subsection applies to a county having a population of more than thirty-nine thousand (39,000) but less than thirty-nine thousand six hundred (39,600). Except as provided in subsection (p), in addition to the rates permitted under subsection (b):
        (1) the county economic development income tax may be imposed at a rate of twenty-five hundredths percent (0.25%); and
        (2) the sum of the county economic development income tax rate and:
            (A) the county adjusted gross income tax rate that are in effect on January 1 of a year may not exceed one and five-tenths percent (1.5%); or
            (B) the county option income tax rate that are in effect on January 1 of a year may not exceed one and twenty-five hundredths percent (1.25%);
if the county council makes a determination to impose rates under this subsection and section 24 of this chapter.
    (p) In addition:
        (1) the county economic development income tax may be imposed at a rate that exceeds by not more than twenty-five hundredths percent (0.25%) the maximum rate that would otherwise apply under this section; and
        (2) the:
            (A) county economic development income tax; and
            (B) county option income tax or county adjusted gross income tax;
        may be imposed at combined rates that exceed by not more than

twenty-five hundredths percent (0.25%) the maximum combined rates that would otherwise apply under this section.
However, the additional rate imposed under this subsection may not exceed the amount necessary to mitigate the increased ad valorem property taxes on homesteads (as defined in IC 6-1.1-20.9-1) or residential property (as defined in section 26 of this chapter), as appropriate under the ordinance adopted by the adopting body in the county, resulting from the deduction of the assessed value of inventory in the county under IC 6-1.1-12-41 or IC 6-1.1-12-42.
    (q) If the county economic development income tax is imposed as authorized under subsection (p) at a rate that exceeds the maximum rate that would otherwise apply under this section, the certified distribution must be used for the purpose provided in section 25(e) or 26 of this chapter to the extent that the certified distribution results from the difference between:
        (1) the actual county economic development tax rate; and
        (2) the maximum rate that would otherwise apply under this section.
    (r) This subsection applies only to a county described in section 27 of this chapter. Except as provided in subsection (p), in addition to the rates permitted by subsection (b), the:
        (1) county economic development income tax may be imposed at a rate of twenty-five hundredths percent (0.25%); and
        (2) county economic development income tax rate plus the county option income tax rate that are in effect on January 1 of a year may equal up to one and twenty-five hundredths percent (1.25%);
if the county council makes a determination to impose rates under this subsection and section 27 of this chapter.
    (s) Except as provided in subsection (p), the county economic development income tax rate plus the county adjusted gross income tax rate that are in effect on January 1 of a year may not exceed one and five-tenths percent (1.5%) if the county has imposed the county adjusted gross income tax under IC 6-3.5-1.1-3.3.
    (t) This subsection applies to Howard County. Except as provided in subsection (p), the sum of the county economic development income tax rate and the county option income tax rate that are in effect on January 1 of a year may not exceed one and twenty-five hundredths percent (1.25%).
    (u) This subsection applies to Scott County. Except as provided in subsection (p), the sum of the county economic development income tax rate and the county option income tax rate that are in effect on January 1 of a year may not exceed one and twenty-five hundredths percent (1.25%).
    (v) This subsection applies to Jasper County. Except as provided in subsection (p), the sum of the county economic development income tax rate and the county adjusted gross income tax rate that are in effect on January 1 of a year may not exceed one and five-tenths percent (1.5%).


     (w) This subsection applies to Monroe County. Except as provided in subsection (p), if an ordinance is adopted under IC 6-3.5-6-33, the sum of the county economic development income tax rate and the county option income tax rate that are in effect on January 1 of a year may not exceed one and twenty-five hundredths percent (1.25%).".
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SOURCE: Page 130, line 1; (07)MO147827.130. -->     Page 130, delete lines 1 through 37.
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    " (h) Notwithstanding any other provision of this section, the department of local government finance shall for each year after 2007 certify to the county auditor an adjustment to the amount of the guaranteed distribution and supplemental distribution that each school corporation in the county is entitled to receive under this section to ensure that the school corporation's guaranteed distribution and supplemental distribution amount is not reduced (as a percentage of the total guaranteed distributions and supplemental distributions in the county) because of the elimination of the school corporation's tuition support levy under IC 20-45.".
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    " (d) Notwithstanding any other provision of this section, the department of local government finance shall for each year after 2007 certify to the county auditor an adjustment to the distribution of excise taxes to ensure that the school corporation's amount of excise tax revenue under this chapter is not reduced (as a percentage of the total excise tax distributions in the county) because of the elimination of the school corporation's tuition support levy under IC 20-45.".
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    " (f) Notwithstanding any other provision of this section, the department of local government finance shall for each year after 2007 certify to the county auditor an adjustment to the distribution of excise taxes to ensure that the school corporation's amount of excise tax revenue under this chapter is not reduced (as a percentage of the total excise tax distributions in the county) because of the elimination of the school corporation's tuition support levy under IC 20-45.".
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" Notwithstanding any other provision of this section, the

department of local government finance shall for each year after 2007 certify to the county auditor an adjustment to the distribution of excise taxes to ensure that the school corporation's amount of excise tax revenue under this chapter is not reduced (as a percentage of the total excise tax distributions in the county) because of the elimination of the school corporation's tuition support levy under IC 20-45.".
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    " (c) Notwithstanding any other provision of this section, the department of local government finance shall for each year after 2007 certify to the county auditor an adjustment to the distribution of excise taxes to ensure that the school corporation's amount of boat excise tax revenue under this chapter is not reduced (as a percentage of the total boat excise tax distributions in the county) because of the elimination of the school corporation's tuition support levy under IC 20-45.".
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SOURCE: IC 20-43-6-4; (07)MO147827.107. -->     "SECTION 107. IC 20-43-6-4, AS ADDED BY P.L.2-2006, SECTION 166, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2008]: Sec. 4. (a) A school corporation's local contribution for a calendar year is the amount determined under the applicable provision of this section.
    (b) This subsection applies to a school corporation that is not a charter school. Determine the sum of the following:
        (1) The school corporation's adjusted tuition support levy.
        (2) The school corporation's excise tax revenue for the year that precedes the current year by one (1) year.
    (c) This subsection applies to a charter school. Determine the product of:
        (1) the charter school's guaranteed minimum revenue for the calendar year; multiplied by
        (2) thirty-five hundredths (0.35). The charter school's local contribution is zero dollars ($0).
SOURCE: IC 20-44-2-2; (07)MO147827.108. -->     SECTION 108. IC 20-44-2-2, AS ADDED BY P.L.2-2006, SECTION 167, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2008]: Sec. 2. Except as provided in IC 20-45-3-11, each governing body may annually levy the amount of taxes that:
        (1) in the judgment of the governing body; and
        (2) after being made a matter of record in the minutes;
should be levied to produce income sufficient to conduct and carry on the public schools committed to the governing body.
SOURCE: IC 20-45-2-1; (07)MO147827.109. -->     SECTION 109. IC 20-45-2-1, AS ADDED BY P.L.2-2006, SECTION 168, IS AMENDED TO READ AS FOLLOWS

[EFFECTIVE JANUARY 1, 2008]: Sec. 1. Except as provided in IC 20-45-3-11, the governing body of each school corporation shall levy a property tax for the school corporation's general fund.

SOURCE: IC 20-45-3-1; (07)MO147827.110. -->     SECTION 110. IC 20-45-3-1, AS ADDED BY P.L.2-2006, SECTION 168, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 1. A school corporation may not impose a tuition support levy for the school corporation's general fund after December 31, 2007.
SOURCE: IC 20-45-3-11; (07)MO147827.111. -->     SECTION 111. IC 20-45-3-11, AS ADDED BY P.L.2-2006, SECTION 168, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2008]: Sec. 11. (a) Except as provided in subsection (b), a school corporation's tuition support levy for a calendar year is the sum of the following:
        (1) The school corporation's equalized levy for the calendar year.
        (2) An amount equal to the annual decrease in federal aid to impacted areas from the year preceding the ensuing calendar year by three (3) years to the year preceding the ensuing calendar year by two (2) years.
        (3) The part of the maximum permissible tuition support levy for the year that equals the original amount of the levy by the school corporation to cover the costs of opening a new school facility or reopening an existing facility during the preceding year.
        (4) The amount determined under STEP FOUR of the following formula:
            STEP ONE: Determine the target revenue per ADM for each charter school that included at least one (1) student who has legal settlement in the school corporation in the charter school's current ADM.
            STEP TWO: For each charter school, multiply the STEP ONE amount by the number of students who have legal settlement in the school corporation and who are included in the charter school's current ADM.
            STEP THREE: Determine the sum of the STEP TWO amounts.
            STEP FOUR: Multiply the STEP THREE amount by thirty-five hundredths (0.35).
    (b) For calendar year 2008 and thereafter, a school corporation may not impose a tuition support levy.
SOURCE: IC 20-45-6-1.5; (07)MO147827.112. -->     SECTION 112. IC 20-45-6-1.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2008]: Sec. 1.5. The elimination of a school corporation's tuition support levy does not prohibit a school corporation from imposing an excessive tax levy authorized under this chapter.
SOURCE: IC 20-45-7-1.5; (07)MO147827.113. -->     SECTION 113. IC 20-45-7-1.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2008]: Sec. 1.5. The elimination of a

school corporation's tuition support levy does not prohibit a county council from imposing a tax under this chapter.

SOURCE: IC 20-45-8-1.5; (07)MO147827.114. -->     SECTION 114. IC 20-45-8-1.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2008]: Sec. 1.5. The elimination of a school corporation's tuition support levy does not prohibit a board of county commissioners from imposing a county supplemental school financing tax under this chapter.
SOURCE: IC 20-46-1-18; (07)MO147827.115. -->     SECTION 115. IC 20-46-1-18, AS ADDED BY P.L.2-2006, SECTION 169, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2008]: Sec. 18. (a) A school corporation's levy may not be considered in the determination of the school corporation's state tuition support under IC 20-43 or the determination of the school corporation's maximum permissible tuition support levy under IC 20-45-3.
     (b) The elimination of a school corporation's tuition support levy does not affect:
        (1) the authority for voters to approve a referendum tax levy in a referendum under this chapter; and
        (2) the authority for a school corporation to collect a referendum tax levy approved in a referendum under this chapter.
".
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SOURCE: ; (07)MO147827.171. -->     "SECTION 171. [EFFECTIVE JANUARY 1, 2008] IC 6-3-2-1, as amended by this act, applies to taxable years beginning after December 31, 2007.".
    Renumber all SECTIONS consecutively.
    (Reference is to EHB 1478 as printed April 6, 2007.)

________________________________________

Senator BRODEN




MO147827/DI 73
2007