Citations Affected: IC 6-3.5-7.
Synopsis: Starke County CEDIT for jail. Allows the county council of
Starke County to adopt an ordinance imposing an additional county
economic development income tax (CEDIT) rate for the purposes of:
(1) financing, constructing, acquiring, and equipping the county jail
and related buildings and parking facilities; and (2) operating or
maintaining those facilities. Authorizes bonds to be issued or leases to
be entered into for constructing, acquiring, and equipping the county
jail and related buildings and parking facilities. Specifies that the
additional tax rate may not exceed the lesser of: (1) 0.65%; or (2) the
tax rate that is necessary to pay the costs of financing, acquiring, and
equipping the county jail and related buildings and parking facilities
and (if the county council makes a determination to use the tax revenue
for this purpose) to provide sufficient annual revenues to operate and
maintain those facilities. Changes certain population parameters in the
CEDIT statutes to reflect the new population counts determined under
the 2010 decennial census.
Effective: Upon passage.
January 9, 2012, read first time and referred to Committee on Ways and Means.
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
concerning the imposition of the county option income tax.
(b) Except as provided in subsections (c), (g), (k), (p), and (r) and
section 28 of this chapter, 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), (s), (v), (w), (x), or (y), or (aa), 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), (u), (w), (x), or (y), 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 adopt an
ordinance.
(e) 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.".
(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 seventy thousand (148,000) (170,000) but
less than one hundred seventy seventy-five thousand (170,000).
(175,000). 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:
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) An additional county economic development income tax rate
imposed under section 28 of this chapter may not be considered in
calculating any limit under this section on the sum of:
(1) the county economic development income tax rate plus the
county adjusted gross income tax rate; or
(2) the county economic development tax rate plus the county
option income tax rate.
(x) The income tax rate limits imposed by subsection (c) or (y) or
any other provision of this chapter do not apply to:
(1) a county adjusted gross income tax rate imposed under
IC 6-3.5-1.1-24, IC 6-3.5-1.1-25, or IC 6-3.5-1.1-26; or
(2) a county option income tax rate imposed under IC 6-3.5-6-30,
IC 6-3.5-6-31, or IC 6-3.5-6-32.
For purposes of computing the maximum combined income tax rate
under subsection (c) or (y) or any other provision of this chapter that
may be imposed in a county under IC 6-3.5-1.1, IC 6-3.5-6, and this
chapter, a county's county adjusted gross income tax rate or county
option income tax rate for a particular year does not include the county
adjusted gross income tax rate imposed under IC 6-3.5-1.1-24,
IC 6-3.5-1.1-25, or IC 6-3.5-1.1-26 or the county option income tax rate
imposed under IC 6-3.5-6-30, IC 6-3.5-6-31, or IC 6-3.5-6-32.
(y) 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%).
(z) This subsection applies to Perry County. Except as provided in
subsection (p), if an ordinance is adopted under section 27.5 of this
chapter, the county economic development income tax rate plus the
county option income tax rate that is in effect on January 1 of a year
may not exceed one and seventy-five hundredths percent (1.75%).
(aa) This subsection applies to Starke County. Except as
provided in subsection (p), if an ordinance is adopted under section
27.6 of this chapter, the county economic development income tax
rate plus the county adjusted gross income tax rate that is in effect
on January 1 of a year may not exceed two percent (2%).
health care needs county fund.
(c) This subsection applies to a county council or county income tax
council that imposes a tax under this chapter after June 1, 1992. The
body imposing the tax may adopt an ordinance before August 2 of a
year to provide for the distribution of certified distributions under this
subsection instead of a distribution under subsection (b). The following
apply if an ordinance is adopted under this subsection:
(1) The ordinance is effective January 1 of the following year.
(2) Except as provided in sections 25 and 26 of this chapter, the
amount of the certified distribution that the county and each city
and town in the county is entitled to receive during May and
November of each year equals the product of:
(A) the amount of the certified distribution for the month;
multiplied by
(B) a fraction. For a city or town, the numerator of the fraction
equals the population of the city or the town. For a county, the
numerator of the fraction equals the population of the part of
the county that is not located in a city or town. The
denominator of the fraction equals the sum of the population
of all cities and towns located in the county and the population
of the part of the county that is not located in a city or town.
(3) The ordinance may be made irrevocable for the duration of
specified lease rental or debt service payments.
(d) The body imposing the tax may not adopt an ordinance under
subsection (c) if, before the adoption of the proposed ordinance, any of
the following have pledged the county economic development income
tax for any purpose permitted by IC 5-1-14 or any other statute:
(1) The county.
(2) A city or town in the county.
(3) A commission, a board, a department, or an authority that is
authorized by statute to pledge the county economic development
income tax.
(e) The department of local government finance shall provide each
county auditor with the fractional amount of the certified distribution
that the county and each city or town in the county is entitled to receive
under this section.
(f) Money received by a county, city, or town under this section
shall be deposited in the unit's economic development income tax fund.
(g) Except as provided in subsection (b)(2)(B), in determining the
fractional amount of the certified distribution the county and its cities
and towns are entitled to receive under subsection (b) 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.
(h) In a county having a consolidated city, only the consolidated city
is entitled to the certified distribution, subject to the requirements of
sections 15, 25, and 26 of this chapter.
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.
(4) By a city or county described in IC 36-7.5-2-3(b) for making
transfers required by IC 36-7.5-4-2. If the county economic
development income tax rate is increased after April 30, 2005, in
a county having a population of more than one hundred forty-five
fifty thousand (145,000) (150,000) but less than one hundred
forty-eight seventy thousand (148,000), (170,000), the first three
million five hundred thousand dollars ($3,500,000) of the tax
revenue that results each year from the tax rate increase shall be
used by the county or by eligible municipalities (as defined in
IC 36-7.5-1-11.3) in the county only to make the county's transfer
required by IC 36-7.5-4-2. The first three million five hundred
thousand dollars ($3,500,000) of the tax revenue that results each
year from the tax rate increase shall be paid by the county
treasurer to the treasurer of the northwest Indiana regional
development authority under IC 36-7.5-4-2 before certified
distributions are made to the county or any cities or towns in the
county under this chapter from the tax revenue that results each
year from the tax rate increase. If a county having a population of
more than one hundred forty-five fifty thousand (145,000)
(150,000) but less than one hundred forty-eight seventy thousand
(148,000) (170,000) ceases to be a member of the northwest
Indiana regional development authority under IC 36-7.5 but two
(2) or more municipalities in the county have become members
of the northwest Indiana regional development authority as
authorized by IC 36-7.5-2-3(i), the county treasurer shall continue
to transfer the three million five hundred thousand dollars
($3,500,000) to the treasurer of the northwest Indiana regional
development authority under IC 36-7.5-4-2 before certified
distributions are made to the county or any cities or towns in the
county. In a county having a population of more than one hundred
forty-five fifty thousand (145,000) (150,000) but less than one
hundred forty-eight seventy thousand (148,000), (170,000), all of
the tax revenue that results each year from the tax rate increase
that is in excess of the first three million five hundred thousand
dollars ($3,500,000) that results each year from the tax rate
increase must be used by the county and cities and towns in the
county for homestead credits under subdivision (5).
(5) This subdivision applies only in a county having a population
of more than one hundred forty-five fifty thousand (145,000)
(150,000) but less than one hundred forty-eight seventy thousand
(148,000). (170,000). All of the tax revenue that results each year
from a tax rate increase described in subdivision (4) that is in
excess of the first three million five hundred thousand dollars
($3,500,000) that results each year from the tax rate increase must
be used by the county and cities and towns in the county for
homestead credits under this subdivision. The following apply to
homestead credits provided under this subdivision:
(A) The homestead credits must be applied uniformly to
provide a homestead credit for homesteads in the county, city,
or town.
(B) The homestead credits shall be treated for all purposes as
property tax levies.
(C) The 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.
(D) The department of local government finance shall
determine the homestead credit percentage for a particular
year based on the amount of county economic development
income tax revenue that will be used under this subdivision to
provide homestead credits in that year.
(6) This subdivision applies only in a county having a population
of more than four hundred thousand (400,000) but less than seven
hundred thousand (700,000). A county or a city or town in the
county may use county economic development income tax
revenue to provide homestead credits in the county, city, or town.
The following apply to homestead credits provided under this
subdivision:
(A) The county, city, or town fiscal body must adopt an
ordinance authorizing the homestead credits. The ordinance
must specify the amount of county economic development
income tax revenue that will be used to provide homestead
credits in the following year.
thousand dollars ($3,500,000) of the tax revenue that results each
year from the tax rate increase shall be used by the county only to
make the county's transfer required by IC 36-7.5-4-2. The first
three million five hundred thousand dollars ($3,500,000) of the
tax revenue that results each year from the tax rate increase shall
be paid by the county treasurer to the treasurer of the northwest
Indiana regional development authority under IC 36-7.5-4-2
before certified distributions are made to the county or any cities
or towns in the county under this chapter from the tax revenue
that results each year from the tax rate increase. All of the tax
revenue that results each year from the tax rate increase that is in
excess of the first three million five hundred thousand dollars
($3,500,000) that results each year from the tax rate increase must
be used by the county and cities and towns in the county for
homestead credits under subdivision (9).
(9) This subdivision applies only to a county described in
subdivision (8). All of the tax revenue that results each year from
a tax rate increase described in subdivision (8) that is in excess of
the first three million five hundred thousand dollars ($3,500,000)
that results each year from the tax rate increase must be used by
the county and cities and towns in the county for homestead
credits under this subdivision. The following apply to homestead
credits provided under this subdivision:
(A) The homestead credits must be applied uniformly to
provide a homestead credit for homesteads in the county, city,
or town.
(B) The homestead credits shall be treated for all purposes as
property tax levies.
(C) The 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.
(D) The department of local government finance shall
determine the homestead credit percentage for a particular
year based on the amount of county economic development
income tax revenue that will be used under this subdivision to
provide homestead credits in that year.
(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;
of existing buildings, the acquisition of land, and any other
reasonably related costs.
(g) If the county council makes both the determination under
subsection (c) and the determination under subsection (d), the
county council may adopt a tax rate under subsection (e). The tax
rate may not exceed the lesser of:
(1) sixty-five hundredths percent (0.65%); or
(2) the tax rate that is necessary to:
(A) pay the costs of financing, acquiring, and equipping the
county jail and related buildings and parking facilities,
including costs related to the demolition of existing
buildings, the acquisition of land, and any other reasonably
related costs; and
(B) provide sufficient annual revenues to operate and
maintain the facilities described in subsection (c)(1).
(h) A tax rate imposed under this section may be imposed only
until the later of:
(1) the date on which the last of any bonds issued or leases
entered into to finance the facilities are fully paid; or
(2) the date on which the ordinance under subsection (c) or (d)
is repealed or rescinded.
The term of the bonds issued (including any refunding bonds) or a
lease entered into under subsection (c)(2) may not exceed
twenty-five (25) years.
(i) The county treasurer shall establish a county jail revenue
fund to be used only for the purposes described in this section.
County economic development income tax revenues derived from
the tax rate imposed under this section shall be deposited in the
county jail revenue fund before making a certified distribution
under section 11 of this chapter.
(j) County economic development income tax revenues derived
from the tax rate imposed under this section:
(1) may be used only for the purposes described in this
section;
(2) may not be considered by the department of local
government finance in determining the county's maximum
permissible ad valorem property tax levy limit under
IC 6-1.1-18.5; and
(3) may be pledged to the repayment of bonds issued or leases
entered into for the purposes described in subsection (c).