Citations Affected: IC 6-1.1; IC 6-3; IC 6-3.5; IC 6-8.1-1-1;
IC 36-1-8-5.1; IC 36-3-7-6; IC 36-8-15-19; IC 36-9-4-42.
Synopsis: Administration of county income taxes. Provides that
beginning January 1, 2014, a county imposing a county income tax
(rather than the department of state revenue) has the authority and
responsibility for the administration, collection, and enforcement of the
tax. Requires taxpayers to file county income tax returns with the
county treasurer of the county that imposed the tax. Requires taxpayers
to pay county income tax to the county treasurer of the county that
imposed the tax. Provides that withholdings of county income taxes
shall be remitted to the county treasurer of the county that imposed the
tax. Repeals provisions related to: (1) the state collection of county
income taxes; and (2) the calculation and distribution by the state of
certified distributions of county income taxes. Specifies that certain
provisions related to the department of state revenue's administration
of state taxes also apply to a county administering a county income tax.
Makes technical corrections.
Effective: Upon passage; January 1, 2014.
January 14, 2013, read first time and referred to Committee on Tax and Fiscal Policy.
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
a claimant, shall pay the unpaid debt service obligations that are due
from money in the possession of the state that would otherwise be
available for distribution to the political subdivision under any other
law, deducting the payment from the amount distributed. A deduction
under this subsection must be made
(1) first from distributions of county adjusted gross income tax
distributions under IC 6-3.5-1.1, county option income tax
distributions under IC 6-3.5-6, or county economic development
income tax distributions under IC 6-3.5-7 that would otherwise be
distributed to the county under the schedule in IC 6-3.5-1.1-10,
IC 6-3.5-1.1-21.1, IC 6-3.5-6-16, IC 6-3.5-6-17.3, IC 6-3.5-7-17,
and IC 6-3.5-7-17.3; and
(2) second from any other undistributed funds of the political
subdivision in the possession of the state.
(d) This section shall be interpreted liberally so that the state shall
to the extent legally valid ensure that the debt service obligations of
each political subdivision are paid when due. However, this section
does not create a debt of the state.
local government finance the duplicate copies of all approved
exemption applications required to be forwarded by that date
under IC 6-1.1-11-8(a);
(5) by the date the distribution is scheduled to be made, the
county auditor has not sent a certified statement required to be
sent by that date under IC 6-1.1-17-1 to the department of local
government finance;
(6) the county does not maintain a certified computer system that
meets the requirements of IC 6-1.1-31.5-3.5;
(7) the county auditor has not transmitted the data described in
IC 36-2-9-20 to the department of local government finance in the
form and on the schedule specified by IC 36-2-9-20;
(8) the county has not established a parcel index numbering
system under 50 IAC 23-8-1 in a timely manner;
(9) a county official has not provided other information to the
department of local government finance in a timely manner as
required by the department of local government finance; or
(10) the department of local government finance incurs additional
costs to assist a covered county (as defined in IC 6-1.1-22.6-1) to
issue tax statements within the time frame specified in
IC 6-1.1-22.6-18(b) for each year that the county experienced
delayed property taxes (as defined in IC 6-1.1-22.6-2) before the
year in which the county qualifies as a covered county.
The percentage to be withheld is the percentage determined by the
department of local government finance. However, the percentage
withheld for a reason stated in subdivision (10) may not exceed the
percentage needed to reimburse the department of local government
finance for the costs incurred by the department of local government
finance to take the actions necessary to permit a covered county (as
defined in IC 6-1.1-22.6-1) to issue reconciling tax statements for prior
year delayed property taxes (as defined in IC 6-1.1-22.6-2) within the
time frame specified in IC 6-1.1-22.6-18(b). The county governmental
taxing unit of a covered county (as defined in IC 6-1.1-22.6-1) shall
reimburse the department of local government finance for these
expenses. The amount withheld under subdivision (10) reduces only
the amount that would otherwise be distributed to the county
governmental taxing unit of a covered county (as defined in
IC 6-1.1-22.6-1) and not money distributable to any other political
subdivision. The withholding of an amount under subdivision (10) does
not relieve the county government of a covered county (as defined in
IC 6-1.1-22.6-1) from making bond or lease payments that would
otherwise be paid from withheld amounts or providing property tax
credits that would otherwise be provided under IC 6-3.5 from withheld
amounts. Subdivision (10) does not apply to any county other than a
covered county (as defined in IC 6-1.1-22.6-1).
(b) Except as provided in subsection (e), money not distributed for
the reasons stated in subsection (a) shall be distributed to the county
when the department of local government finance determines that the
failure to:
(1) provide information; or
(2) pay a bill for services;
has been corrected.
(c) The restrictions on distributions under subsection (a) do not
apply if the department of local government finance determines that the
failure to:
(1) provide information; or
(2) pay a bill for services;
in a timely manner is justified by unusual circumstances.
(d) The department of local government finance shall give the
county auditor at least thirty (30) days notice in writing before the
department of state revenue or the auditor of state withholds a
distribution under subsection (a).
(e) Money not distributed for the reason stated in subsection (a)(2)
may be deposited in the fund established by IC 6-1.1-5.5-4.7(a). Money
deposited under this subsection is not subject to distribution under
subsection (b).
(f) This subsection applies to a county that will not receive a
distribution under IC 6-3.5-1.1, IC 6-3.5-6, or IC 6-3.5-7. At the request
of the department of local government finance, an amount permitted to
be withheld under subsection (a) may be withheld from any state
revenues that would otherwise be distributed to the county or one (1)
or more taxing units in the county.
than being made to the department.
(d) Withholdings for taxes imposed under IC 6-3.5-1.1,
IC 6-3.5-6, or IC 6-3.5-7 shall be remitted to the county treasurer
of the county imposing the tax, rather than being remitted to the
department.
(e) Except as otherwise provided and unless the context clearly
denotes otherwise, the provisions of this chapter concerning:
(1) filing a return (including the due date for filing a return);
(2) reporting and making estimated payments (including the
due date for reporting and making estimated payments);
(3) furnishing copies of returns;
(4) filing amended returns;
(5) withholding, including an employer's duties related to
withholding, collecting, and paying over tax from wages of
employees;
(6) liability for taxes; and
(7) penalties;
apply to the county administration of taxes imposed under
IC 6-3.5-1.1, IC 6-3.5-6, or IC 6-3.5-7, except that any reference to
the department shall be considered a reference to the county
treasurer.
(f) IC 6-3-4-1.5 does not apply to returns filed with a county
treasurer under IC 6-3.5-1.1, IC 6-3.5-6, or IC 6-3.5-7.
returns and make payments of the tax imposed by this article to the
department and (in the case of an individual required to file a
county adjusted gross income tax return, county option income tax
return, or county economic development income tax return under
IC 6-3.5-1.1, IC 6-3.5-6, or IC 6-3.5-7) the county treasurer at the
time or times and in the installments as provided by Section 6654 of the
Internal Revenue Code. However, the following apply to estimated tax
returns filed and payments made under this subsection:
(1) In applying Section 6654 of the Internal Revenue Code for the
purposes of this article, "estimated tax" means the amount which
the individual estimates as the amount of the adjusted gross
income tax imposed by this article for the taxable year, minus the
amount which the individual estimates as the sum of any credits
against the tax provided by IC 6-3-3.
(2) Estimated tax for a nonresident alien (as defined in Section
7701 of the Internal Revenue Code) must be computed by
applying not more than one (1) exclusion under IC 6-3-1-3.5(a)(3)
and IC 6-3-1-3.5(a)(4), regardless of the total number of
exclusions that IC 6-3-1-3.5(a)(3) and IC 6-3-1-3.5(a)(4) permit
the taxpayer to apply on the taxpayer's final return for the taxable
year.
(b) Every individual who has adjusted gross income subject to the
tax imposed by this article and from which tax is not withheld under
the requirements of section 8 of this chapter shall make a declaration
of estimated tax for the taxable year. However, no such declaration
shall be required if the estimated tax can reasonably be expected to be
less than one thousand dollars ($1,000). In the case of an underpayment
of the estimated tax as provided in Section 6654 of the Internal
Revenue Code, there shall be added to the tax a penalty in an amount
prescribed by IC 6-8.1-10-2.1(b).
(c) Every corporation subject to the adjusted gross income tax
liability imposed by this article shall be required to report and pay an
estimated tax equal to the lesser of:
(1) twenty-five percent (25%) of such corporation's estimated
adjusted gross income tax liability for the taxable year; or
(2) the annualized income installment calculated in the manner
provided by Section 6655(e) of the Internal Revenue Code as
applied to the corporation's liability for adjusted gross income tax.
A taxpayer who uses a taxable year that ends on December 31 shall file
the taxpayer's estimated adjusted gross income tax returns and pay the
tax to the department on or before April 20, June 20, September 20,
and December 20 of the taxable year. If a taxpayer uses a taxable year
that does not end on December 31, the due dates for filing estimated
adjusted gross income tax returns and paying the tax are on or before
the twentieth day of the fourth, sixth, ninth, and twelfth months of the
taxpayer's taxable year. The department shall prescribe the manner and
forms for such reporting and payment.
(d) The penalty prescribed by IC 6-8.1-10-2.1(b) shall be assessed
by the department on corporations failing to make payments as required
in subsection (c) or (f). However, no penalty shall be assessed as to any
estimated payments of adjusted gross income tax which equal or
exceed:
(1) the annualized income installment calculated under subsection
(c); or
(2) twenty-five percent (25%) of the final tax liability for the
taxpayer's previous taxable year.
In addition, the penalty as to any underpayment of tax on an estimated
return shall only be assessed on the difference between the actual
amount paid by the corporation on such estimated return and
twenty-five percent (25%) of the corporation's final adjusted gross
income tax liability for such taxable year.
(e) The provisions of subsection (c) requiring the reporting and
estimated payment of adjusted gross income tax shall be applicable
only to corporations having an adjusted gross income tax liability
which, after application of the credit allowed by IC 6-3-3-2 (repealed),
shall exceed two thousand five hundred dollars ($2,500) for its taxable
year.
(f) If the department determines that a corporation's:
(1) estimated quarterly adjusted gross income tax liability for the
current year; or
(2) average estimated quarterly adjusted gross income tax liability
for the preceding year;
exceeds five thousand dollars ($5,000), after the credit allowed by
IC 6-3-3-2 (repealed), the corporation shall pay the estimated adjusted
gross income taxes due by electronic funds transfer (as defined in
IC 4-8.1-2-7) or by delivering in person or overnight by courier a
payment by cashier's check, certified check, or money order to the
department. The transfer or payment shall be made on or before the
date the tax is due.
(g) If a corporation's adjusted gross income tax payment is made by
electronic funds transfer, the corporation is not required to file an
estimated adjusted gross income tax return.
(h) An individual filing an estimated tax return and making an
estimated tax payment under this section must designate:
required to be deducted and withheld under this section and shall
not be liable to any individual for the amount deducted from the
individual's wages and paid over in compliance or intended
compliance with this section; and
(2) shall make return of and payment to the department monthly
of the amount of tax which under this article and IC 6-3.5 the
employer is required to withhold.
(b) An employer shall pay taxes withheld under subsection (a)
during a particular month to the department or (in the case of county
adjusted gross income tax, county option income tax, or county
economic development income tax under IC 6-3.5-1.1, IC 6-3.5-6,
or IC 6-3.5-7) to the county treasurer no later than thirty (30) days
after the end of that month. However, in place of monthly reporting
periods, the department or county treasurer may permit an employer
to report and pay the tax for a calendar year reporting period, if the
average monthly amount of all tax required to be withheld by the
employer in the previous calendar year does not exceed one thousand
dollars ($1,000). An employer using a reporting period (other than a
monthly reporting period) must file the employer's return and pay the
tax for a reporting period no later than the last day of the month
immediately following the close of the reporting period.
(c) For purposes of determining whether an employee is subject to
taxation under IC 6-3.5, an employer is entitled to rely on the statement
of an employee as to the employee's county of residence as represented
by the statement of address in forms claiming exemptions for purposes
of withholding, regardless of when the employee supplied the forms.
Every employee shall notify the employee's employer within five (5)
days after any change in the employee's county of residence.
(d) A county that makes payments of wages subject to tax under this
article:
(1) to a precinct election officer (as defined in IC 3-5-2-40.1); and
(2) for the performance of the duties of the precinct election
officer imposed by IC 3 that are performed on election day;
is not required, at the time of payment of the wages, to deduct and
retain from the wages the amount prescribed in withholding
instructions issued by the department.
(e) Every employer shall, at the time of each payment made by the
employer to the department, deliver to the department a return upon the
form prescribed by the department showing:
(1) the total amount of wages paid to the employer's employees;
(2) the amount deducted therefrom in accordance with the
provisions of the Internal Revenue Code;
part thereof may be applied to any taxes or other claim due from the
taxpayer to the state of Indiana or any subdivision thereof. In the case
of county adjusted gross income tax, county option income tax , or
county economic development income tax under IC 6-3.5-1.1,
IC 6-3.5-6, or IC 6-3.5-7, if the total amount deducted exceeds the
amount of tax on the employee as computed under IC 6-3.5, the
county treasurer shall, after examining the return or returns filed
by the employee in accordance with IC 6-3.5, refund the amount of
the excess deduction. No refund shall be made to an employee who
fails to file the employee's return or returns as required under this
article and IC 6-3.5 within two (2) years from the due date of the return
or returns. In the event that the excess tax deducted is less than one
dollar ($1), no refund shall be made.
(i) This section shall in no way relieve any taxpayer from the
taxpayer's obligation of filing a return or returns at the time required
under this article and IC 6-3.5, and, should the amount withheld under
the provisions of this section be insufficient to pay the total tax of such
taxpayer, such unpaid tax shall be paid at the time prescribed by
section 5 of this chapter.
(j) Notwithstanding subsection (b), an employer of a domestic
service employee that enters into an agreement with the domestic
service employee to withhold federal income tax under Section 3402
of the Internal Revenue Code may withhold Indiana income tax on the
domestic service employee's wages on the employer's Indiana
individual income tax return in the same manner as allowed by Section
3510 of the Internal Revenue Code.
(k) To the extent allowed by Section 1137 of the Social Security
Act, an employer of a domestic service employee may report and remit
state unemployment insurance contributions on the employee's wages
on the employer's Indiana individual income tax return in the same
manner as allowed by Section 3510 of the Internal Revenue Code.
(l) A person who knowingly fails to remit trust fund money as set
forth in this section commits a Class D felony.
received by a county under this chapter among the civil taxing units
and school corporations in the county, the allocation amount for a civil
taxing unit or school corporation is the amount determined using the
following formula:
STEP ONE: Determine the sum of the total property taxes being
collected by the civil taxing unit or school corporation during the
calendar year of the distribution.
STEP TWO: Determine the sum of the following:
(A) Amounts appropriated from property taxes to pay the
principal of or interest on any debenture or other debt
obligation issued after June 30, 2005, other than an obligation
described in subsection (b).
(B) Amounts appropriated from property taxes to make
payments on any lease entered into after June 30, 2005, other
than a lease described in subsection (c).
(C) The proceeds of any property that are:
(i) received as the result of the issuance of a debt obligation
described in clause (A) or a lease described in clause (B);
and
(ii) appropriated from property taxes for any purpose other
than to refund or otherwise refinance a debt obligation or
lease described in subsection (b) or (c).
STEP THREE: Subtract the STEP TWO amount from the STEP
ONE amount.
STEP FOUR: Determine the sum of:
(A) the STEP THREE amount; plus
(B) the civil taxing unit's or school corporation's certified
distribution for the previous calendar year (for distributions
in 2013) or the civil taxing unit's or school corporation's
allocation of revenue under this chapter for the previous
calendar year (for distributions in 2014 and thereafter).
The allocation amount is subject to adjustment as provided in
IC 36-8-19-7.5.
(b) Except as provided in this subsection, an appropriation from
property taxes to repay interest and principal of a debt obligation is not
deducted from the allocation amount for a civil taxing unit or school
corporation if:
(1) the debt obligation was issued; and
(2) the proceeds appropriated from property taxes;
to refund or otherwise refinance a debt obligation or a lease issued
before July 1, 2005. However, an appropriation from property taxes
related to a debt obligation issued after June 30, 2005, is deducted if
the debt extends payments on a debt or lease beyond the time in which
the debt or lease would have been payable if the debt or lease had not
been refinanced or increases the total amount that must be paid on a
debt or lease in excess of the amount that would have been paid if the
debt or lease had not been refinanced. The amount of the deduction is
the annual amount for each year of the extension period or the annual
amount of the increase over the amount that would have been paid.
(c) Except as provided in this subsection, an appropriation from
property taxes to make payments on a lease is not deducted from the
allocation amount for a civil taxing unit or school corporation if:
(1) the lease was issued; and
(2) the proceeds were appropriated from property taxes;
to refinance a debt obligation or lease issued before July 1, 2005.
However, an appropriation from property taxes related to a lease
entered into after June 30, 2005, is deducted if the lease extends
payments on a debt or lease beyond the time in which the debt or lease
would have been payable if the debt or lease had not been refinanced
or increases the total amount that must be paid on a debt or lease in
excess of the amount that would have been paid if the debt or lease had
not been refinanced. The amount of the deduction is the annual amount
for each year of the extension period or the annual amount of the
increase over the amount that would have been paid.
subsection (b).
(d) In addition to the rates permitted by section 2 of this chapter, the
county council may impose the county adjusted gross income tax at a
rate of:
(1) fifteen-hundredths percent (0.15%);
(2) two-tenths percent (0.2%); or
(3) twenty-five hundredths percent (0.25%);
on the adjusted gross income of county taxpayers if the county council
makes a finding and determination set forth in subsection (b) or (c).
(e) If the county council imposes the tax under this section to pay
for the purposes described in both subsections (b) and (c), when:
(1) the financing, construction, acquisition, improvement,
renovation, and equipping described in subsection (b) are
completed; and
(2) all bonds issued or leases entered into to finance the
construction, acquisition, improvement, renovation, and
equipping described in subsection (b) are fully paid;
the county council shall, subject to subsection (d), establish a tax rate
under this section by ordinance such that the revenue from the tax does
not exceed the costs of operating and maintaining the jail facilities
described in subsection (b)(1)(A). The tax rate may not be imposed at
a rate greater than is necessary to carry out the purposes described in
subsections (b) and (c), as applicable.
(f) The tax imposed under this section may be imposed only until
the latest of the following:
(1) The date on which the financing, construction, acquisition,
improvement, renovation, and equipping described in subsection
(b) are completed.
(2) The date on which the last of any bonds issued or leases
entered into to finance the construction, acquisition,
improvement, renovation, and equipping described in subsection
(b) are fully paid.
(3) The date on which an ordinance adopted under subsection (c)
is rescinded.
(g) The term of the bonds issued (including any refunding bonds) or
a lease entered into under subsection (b)(2) may not exceed twenty (20)
years.
(h) The county treasurer shall establish a criminal justice facilities
revenue fund to be used only for purposes described in this section.
County adjusted gross income tax revenues derived from the tax rate
imposed under this section shall be deposited in the criminal justice
facilities revenue fund before making a certified distribution
distributions under section 11 of this chapter.
(i) County adjusted gross 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
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 any or all the purposes described in subsection
(b).
(j) Notwithstanding any other law, money remaining in the criminal
justice facilities revenue fund established under subsection (h) after the
tax imposed by this section is terminated under subsection (f) shall be
transferred to the county highway fund to be used for construction,
resurfacing, restoration, and rehabilitation of county highways, roads,
and bridges.
which the last of any bonds issued or leases entered into to finance the
construction, acquisition, improvement, renovation, and equipping
described in subsection (b) are fully paid. The term of the bonds issued
(including any refunding bonds) or a lease entered into under
subsection (b)(2) may not exceed twenty (20) years.
(d) If the county council makes a determination under subsection
(b), the county council may adopt a tax rate under subsection (c). The
tax rate may not be imposed at a rate greater than is necessary to pay
the costs of financing, acquiring, improving, renovating, and equipping
the county jail and related buildings and parking facilities, including
costs related to the demolition of existing buildings and the acquisition
of land.
(e) The county treasurer shall establish a county jail revenue fund
to be used only for purposes described in this section. County adjusted
gross 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 distributions under section 11 of this
chapter.
(f) County adjusted gross income tax revenues derived from the tax
rate imposed under this section:
(1) may only be used 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
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 purposes described in subsection (b).
(g) Wayne County possesses unique economic development
challenges due to underemployment in relation to similarly situated
counties. Maintaining low property tax rates is essential to economic
development and the use of county adjusted gross income tax revenues
as provided in this chapter to pay any bonds issued or leases entered
into to finance the construction, acquisition, improvement, renovation,
and equipping described under subsection (b), rather than use of
property taxes, promotes that purpose.
(h) Notwithstanding any other law, funds accumulated from the
county adjusted gross income tax imposed under this section after:
(1) the redemption of bonds issued; or
(2) the final payment of lease rentals due under a lease entered
into under this section;
shall be transferred to the county highway fund to be used for
construction, resurfacing, restoration, and rehabilitation of county
highways, roads, and bridges.
renovation, and equipping described in subsection (b) are
completed; and
(2) all bonds issued (including any refunding bonds) or leases
entered into to finance the construction, acquisition,
improvement, renovation, and equipping described in subsection
(b) are fully paid;
the county council shall, subject to subsection (d), establish a tax rate
under this section by ordinance such that the revenue from the tax does
not exceed the costs of operating and maintaining the jail facilities
referred to in subsection (b)(1)(A).
(f) The tax imposed under this section may be imposed only until
the last of the following dates:
(1) The date on which the financing, construction, acquisition,
improvement, renovation, and equipping described in subsection
(b) are completed.
(2) The date on which the last of any bonds issued (including any
refunding bonds) or leases entered into to finance the
construction, acquisition, improvement, renovation, and
equipping described in subsection (b) are fully paid.
(3) If the county imposing the tax under this section is Elkhart
County, the date on which an ordinance adopted under subsection
(c) is rescinded.
(g) The term of the bonds issued (including any refunding bonds) or
a lease entered into under subsection (b)(2) may not exceed twenty (20)
years.
(h) The county treasurer shall establish a criminal justice facilities
revenue fund to be used only for purposes described in this section.
County adjusted gross income tax revenues derived from the tax rate
imposed under this section shall be deposited in the criminal justice
facilities revenue fund before making a certified distribution
distributions under section 11 of this chapter.
(i) County adjusted gross 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
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 any or all the purposes described in subsection
(b).
(j) Notwithstanding any other law, money remaining in the criminal
justice facilities revenue fund established under subsection (h) after the
tax imposed by this section is terminated under subsection (f) shall be
transferred to the county highway fund to be used for construction,
resurfacing, restoration, and rehabilitation of county highways, roads,
and bridges.
buildings, the acquisition of land, and any other reasonably related
costs.
(e) The county treasurer shall establish a county jail revenue fund
to be used only for purposes described in this section. County adjusted
gross 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 distributions under section 11 of this
chapter.
(f) County adjusted gross 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
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 purposes described in subsection (b).
(g) Daviess County possesses unique governmental and economic
development challenges due to:
(1) underemployment in relation to similarly situated counties and
the loss of a major manufacturing business;
(2) an increase in property taxes for taxable years after December
31, 2000, for the construction of a new elementary school; and
(3) overcrowding of the county jail, the costs associated with
housing the county's inmates outside the county, and the potential
unavailability of additional housing for inmates outside the
county.
The use of county adjusted gross income tax revenues as provided in
this chapter is necessary for the county to provide adequate jail
capacity in the county and to maintain low property tax rates essential
to economic development. The use of county adjusted gross income tax
revenues as provided in this chapter to pay any bonds issued or leases
entered into to finance the construction, acquisition, improvement,
renovation, remodeling, and equipping described in subsection (b),
rather than the use of property taxes, promotes those purposes.
(h) Notwithstanding any other law, funds accumulated from the
county adjusted gross income tax imposed under this section after:
(1) the redemption of bonds issued; or
(2) the final payment of lease rentals due under a lease entered
into under this section;
shall be transferred to the county highway fund to be used for
construction, resurfacing, restoration, and rehabilitation of county
highways, roads, and bridges.
any refunding bonds) or a lease entered into under subsection (c)(2)
may not exceed thirty (30) years.
(e) If the county council makes a determination under subsection
(c), the county council may adopt a tax rate under subsection (d). The
tax rate may not be imposed at a rate greater than is necessary to pay
the costs of financing, acquiring, improving, renovating, and equipping
the county jail and related buildings and parking facilities, including
costs related to the demolition of existing buildings and the acquisition
of land.
(f) The county treasurer shall establish a county jail revenue fund to
be used only for purposes described in this section. County adjusted
gross 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 distributions under section 11 of this
chapter.
(g) County adjusted gross income tax revenues derived from the tax
rate imposed under this section:
(1) may only be used for purposes described in this section;
(2) may not be considered by the department of local government
finance in determining the county's maximum permissible
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 purposes described in subsection (c).
(h) A county described in subsection (a) possesses unique economic
development challenges due to underemployment in relation to
similarly situated counties. Maintaining low property tax rates is
essential to economic development. The use of county adjusted gross
income tax revenues as provided in this chapter, rather than use of
property taxes, to pay any bonds issued or leases entered into to finance
the construction, acquisition, improvement, renovation, and equipping
described in subsection (c) promotes that purpose.
(i) Notwithstanding any other law, funds accumulated from the
county adjusted gross income tax imposed under this section after:
(1) the redemption of bonds issued; or
(2) the final payment of lease rentals due under a lease entered
into under this section;
shall be transferred to the county general fund.
county adjusted gross income tax revenue is needed in the county to:
(1) finance, construct, acquire, improve, renovate, or equip the
county courthouse; and
(2) repay bonds issued, or leases entered into, for constructing,
acquiring, improving, renovating, and equipping the county
courthouse.
(c) In addition to the rates permitted under section 2 of this chapter,
the county council may impose the county adjusted gross income tax
at a rate of twenty-five hundredths percent (0.25%) on the adjusted
gross income of county taxpayers if the county council makes the
finding and determination set forth in subsection (b). The tax imposed
under this section may be imposed only until the later of the date on
which the financing on, acquisition, improvement, renovation, and
equipping described in subsection (b) is completed or the date on
which the last of any bonds issued or leases entered into to finance the
construction, acquisition, improvement, renovation, and equipping
described in subsection (b) are fully paid. The term of the bonds issued
(including any refunding bonds) or a lease entered into under
subsection (b)(2) may not exceed twenty-two (22) years.
(d) If the county council makes a determination under subsection
(b), the county council may adopt a tax rate under subsection (c). The
tax rate may not be imposed for a time greater than is necessary to pay
the costs of financing, constructing, acquiring, renovating, and
equipping the county courthouse.
(e) The county treasurer shall establish a county courthouse revenue
fund to be used only for purposes described in this section. County
adjusted gross income tax revenues derived from the tax rate imposed
under this section shall be deposited in the county courthouse revenue
fund before a certified distribution is made making distributions
under section 11 of this chapter.
(f) County adjusted gross income tax revenues derived from the tax
rate imposed under this section:
(1) may only be used 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
property tax levy under IC 6-1.1-18.5; and
(3) may be pledged to the repayment of bonds issued or leases
entered into for purposes described in subsection (b).
(g) Union County possesses unique economic development
challenges due to:
(1) the county's heavy agricultural base;
(2) the presence of a large amount of state owned property in the
county that is exempt from property taxation; and
(3) recent obligations of the school corporation in the county that
have already increased property taxes in the county and imposed
additional property tax burdens on the county's agricultural base.
Maintaining low property tax rates is essential to economic
development. The use of county adjusted gross income tax revenues as
provided in this chapter to pay any bonds issued or leases entered into
to finance the construction, acquisition, improvement, renovation, and
equipping described in subsection (b), rather than the use of property
taxes, promotes that purpose.
(h) Notwithstanding any other law, funds accumulated from the
county adjusted gross income tax imposed under this section after:
(1) the redemption of the bonds issued; or
(2) the final payment of lease rentals due under a lease entered
into under this section;
shall be transferred to the county highway fund to be used for
construction, resurfacing, restoration, and rehabilitation of county
highways, roads, and bridges.
completed, the special account established within the state general
fund for that county is abolished.
(c) This section expires June 30, 2014.
processed by the department during the previous fiscal year;
(2) adjustments for over distributions in prior years;
(3) adjustments for clerical or mathematical errors in prior years;
(4) adjustments for tax rate changes; and
(5) the amount of excess account balances to be distributed under
IC 6-3.5-1.1-21.1.
The budget agency shall also certify information concerning the part of
the certified distribution that is attributable to a tax rate under section
24, 25, or 26 of this chapter. This information must be certified to the
county auditor, the department, and the department of local government
finance not later than September 1 of each calendar year. The part of
the certified distribution that is attributable to a tax rate under section
24, 25, or 26 of this chapter may be used only as specified in those
provisions.
(c) The budget agency shall certify an amount less than the amount
determined under subsection (b) if the budget agency determines that
the reduced distribution is necessary to offset overpayments made in a
calendar year before the calendar year of the distribution. The budget
agency may reduce the amount of the certified distribution over several
calendar years so that any overpayments are offset over several years
rather than in one (1) lump sum.
(d) The budget agency shall adjust the certified distribution of a
county to correct for any clerical or mathematical errors made in any
previous certification under this section. The budget agency may
reduce the amount of the certified distribution over several calendar
years so that any adjustment under this subsection is offset over several
years rather than in one (1) lump sum.
(e) This subsection applies to a county that initially imposes,
increases, decreases, or rescinds a tax or tax rate under this chapter
before November 1 in the same calendar year in which the budget
agency makes a certification under this section. The budget agency
shall adjust the certified distribution of a county to provide for a
distribution in the immediately following calendar year and in each
calendar year thereafter. The budget agency shall provide for a full
transition to certification of distributions as provided in subsection
(a)(1) through (a)(2) in the manner provided in subsection (c). If the
county imposes, increases, decreases, or rescinds a tax or tax rate under
this chapter after the date for which a certification under subsection (b)
is based, the budget agency shall adjust the certified distribution of the
county after August 1 of the calendar year. The adjustment shall reflect
any other adjustment required under subsections (c), (d), (f), and (g).
The adjusted certification shall be treated as the county's "certified
distribution" for the immediately succeeding calendar year. The budget
agency shall certify the adjusted certified distribution to the county
auditor for the county and provide the county council with an
informative summary of the calculations that revises the informative
summary provided in subsection (b) and reflects the changes made in
the adjustment.
(f) The budget agency shall adjust the certified distribution of a
county to provide the county with the distribution required under
section 3.3 of this chapter beginning not later than the tenth month after
the month in which additional revenue from the tax authorized under
section 3.3 of this chapter is initially collected.
(g) This subsection applies in the year in which a county initially
imposes a tax rate under section 24 of this chapter. Notwithstanding
any other provision, the budget agency shall adjust the part of the
county's certified distribution that is attributable to the tax rate under
section 24 of this chapter to provide for a distribution in the
immediately following calendar year equal to the result of:
(1) the sum of the amounts determined under STEP ONE through
STEP FOUR of IC 6-3.5-1.5-1(a) in the year in which the county
initially imposes a tax rate under section 24 of this chapter;
multiplied by
(2) two (2).
(h) The budget agency shall before May 1 of every odd-numbered
year publish an estimate of the statewide total amount of certified
distributions to be made under this chapter during the following two (2)
calendar years.
(i) The budget agency shall before May 1 of every even-numbered
year publish an estimate of the statewide total amount of certified
distributions to be made under this chapter during the following
calendar year.
(j) The estimates under subsections (h) and (i) must specify the
amount of the estimated certified distributions that are attributable to
the additional rate authorized under section 24 of this chapter, the
additional rate authorized under section 25 of this chapter, the
additional rate authorized under section 26 of this chapter, and any
other additional rates authorized under this chapter.
month of that calendar year.
(b) Except for:
(1) revenue that must be used to pay the costs of:
(A) financing, constructing, acquiring, improving, renovating,
equipping, operating, or maintaining facilities and buildings;
(B) debt service on bonds; or
(C) lease rentals;
under section 2.3 of this chapter;
(2) revenue that must be used to pay the costs of operating a jail
and juvenile detention center under section 2.5 of this chapter;
(3) revenue that must be used to pay the costs of:
(A) financing, constructing, acquiring, improving, renovating,
equipping, operating, or maintaining facilities and buildings;
(B) debt service on bonds; or
(C) lease rentals;
under section 2.8 of this chapter;
(4) revenue that must be used to pay the costs of construction,
improvement, renovation, or remodeling of a jail and related
buildings and parking structures under section 2.7, 2.9, or 3.3 of
this chapter;
(5) revenue that must be used to pay the costs of operating and
maintaining a jail and justice center under section 3.5(d) of this
chapter;
(6) revenue that must be used to pay the costs of constructing,
acquiring, improving, renovating, or equipping a county
courthouse under section 3.6 of this chapter; or
(7) revenue attributable to a tax rate under section 24, 25, or 26 of
this chapter;
distributions made to a county treasurer under subsection (a) revenue
collected under this chapter shall be treated as though they were the
revenue is property taxes that were due and payable during that same
calendar year. Except as provided by sections 24, 25, and 26 of this
chapter, the certified distribution revenue collected under this
chapter shall be distributed and used by the taxing units and school
corporations as provided in sections 11 through 15 of this chapter.
(c) All distributions from an account established under section 8 of
this chapter shall be made by warrants issued by the auditor of the state
to the treasurer of the state ordering the appropriate payments.
collected under this chapter that is dedicated to providing
property tax replacement credits for that same calendar year;
multiplied by
(2) a fraction:
(A) The numerator of the fraction equals the allocation amount
for the civil taxing unit or school corporation during that
calendar year.
(B) The denominator of the fraction equals the sum of the
allocation amounts for all the civil taxing units and school
corporations of the county for that calendar year.
(c) 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 it is entitled to receive (after
adjustment made under section 13 of this chapter) under this section
during that calendar year. The county auditor shall also certify these
distributions to the county treasurer.
determine all other civil taxing units' and school corporations' property
tax replacement credits shall be changed for that same year by reducing
the amount dedicated to providing property tax replacement credits by
the amount of property tax replacement credits allocated under this
section for that same calendar year. The department of local
government finance shall make any adjustments required by this
section and provide them to the appropriate county auditors.
budget agency shall submit a report to each county auditor indicating
the balance in the county's adjusted gross income tax account as of the
cutoff date specified by the budget agency.
the commissioner of the department of local government finance by
certified mail or in an electronic format approved by the director of the
budget agency.
(d) A tax rate under this section is in addition to any other tax rates
imposed under this chapter and does not affect the purposes for which
other tax revenue under this chapter may be used.
(e) The following apply only in the year in which a county council
first imposes a tax rate under this section:
(1) The county council shall, in the ordinance imposing the tax
rate, specify the tax rate for each of the following two (2) years.
(2) The tax rate that must be imposed in the county in the first
year is equal to the result of:
(A) the tax rate determined for the county under
IC 6-3.5-1.5-1(a) in the year in which the tax rate is increased;
multiplied by
(B) two (2).
(3) The tax rate that must be imposed in the county in the second
year is the tax rate determined for the county under
IC 6-3.5-1.5-1(b). The tax rate under this subdivision continues
in effect in later years unless the tax rate is increased under this
section.
(4) The levy limitations in IC 6-1.1-18.5-3(b), IC 6-1.1-18.5-3(c),
IC 12-19-7-4(b) (before its repeal), IC 12-19-7.5-6(b) (before its
repeal), and IC 12-29-2-2(c) apply to property taxes first due and
payable in the ensuing calendar year and to property taxes first
due and payable in the calendar year after the ensuing calendar
year.
(f) The following apply only in a year in which a county council
increases a tax rate under this section:
(1) The county council shall, in the ordinance increasing the tax
rate, specify the tax rate for the following year.
(2) The tax rate that must be imposed in the county is equal to the
result of:
(A) the tax rate determined for the county under
IC 6-3.5-1.5-1(a) in that year; plus
(B) the tax rate currently in effect in the county under this
section.
The tax rate under this subdivision continues in effect in later
years unless the tax rate is increased under this section.
(3) The levy limitations in IC 6-1.1-18.5-3(b), IC 6-1.1-18.5-3(c),
IC 12-19-7-4(b) (before its repeal), IC 12-19-7.5-6(b) (before its
repeal), and IC 12-29-2-2(c) apply to property taxes first due and
payable in the ensuing calendar year.
(g) The department of local government finance shall determine the
following property tax replacement distribution amounts:
STEP ONE: Determine the sum of the amounts determined under
STEP ONE through STEP FOUR of IC 6-3.5-1.5-1(a) for the
county in the preceding year.
STEP TWO: For distribution to each civil taxing unit that in the
year had a maximum permissible property tax levy limited under
IC 6-1.1-18.5-3(b), determine the result of:
(1) the quotient of:
(A) the part of the amount determined under STEP ONE of
IC 6-3.5-1.5-1(a) in the preceding year that was attributable
to the civil taxing unit; divided by
(B) the STEP ONE amount; multiplied by
(2) the tax revenue received by the county treasurer under this
section.
STEP THREE: For distributions in 2009 and thereafter, the result
of this STEP is zero (0). For distribution to the county for deposit
in the county family and children's fund before 2009, determine
the result of:
(1) the quotient of:
(A) the amount determined under STEP TWO of
IC 6-3.5-1.5-1(a) in the preceding year; divided by
(B) the STEP ONE amount; multiplied by
(2) the tax revenue received by the county treasurer under this
section.
STEP FOUR: For distributions in 2009 and thereafter, the result
of this STEP is zero (0). For distribution to the county for deposit
in the county children's psychiatric residential treatment services
fund before 2009, determine the result of:
(1) the quotient of:
(A) the amount determined under STEP THREE of
IC 6-3.5-1.5-1(a) in the preceding year; divided by
(B) the STEP ONE amount; multiplied by
(2) the tax revenue received by the county treasurer under this
section.
STEP FIVE: For distribution to the county for community mental
health center purposes, determine the result of:
(1) the quotient of:
(A) the amount determined under STEP FOUR of
IC 6-3.5-1.5-1(a) in the preceding year; divided by
(B) the STEP ONE amount; multiplied by
revenue county to determine the tax rate under this section, the excess
shall be deposited in the county stabilization fund. Money shall be
distributed from the county stabilization fund in a year by the county
auditor to political subdivisions entitled to a distribution of tax revenue
attributable to the tax rate under this section if:
(1) the certified distributions revenue collected under this
chapter attributable to a tax rate under this section are is less than
the amount calculated under STEP ONE through STEP FOUR of
IC 6-3.5-1.5-1(a) that is used by the department of local
government finance and the department of state revenue to
determine the tax rate under this section for a year; or
(2) the certified distributions revenue collected under this
chapter attributable to a tax rate under this section in a year are
is less than the certified distributions (for calculations in 2013)
or revenue collected under this chapter (for calculations in
2014 and thereafter) attributable to a tax rate under this section
in the preceding year.
However, subdivision (2) does not apply to the year following the first
year in which certified distributions of revenue collected under this
chapter attributable to the tax rate under this section are is distributed
to the county.
(p) Notwithstanding any other provision, a tax rate imposed under
this section may not exceed one percent (1%).
(q) A county council must each year hold at least one (1) public
meeting at which the county council discusses whether the tax rate
under this section should be imposed or increased.
(r) The department of local government finance and the department
of state revenue may take any actions necessary to carry out the
purposes of this section.
given in IC 6-3-1-3.5. However, in the case of a county taxpayer who
is not treated as a resident county taxpayer of a county, the term
includes only adjusted gross income derived from the taxpayer's
principal place of business or employment.
"Apartment complex" means real property consisting of at least five
(5) units that are regularly used to rent or otherwise furnish residential
accommodations for periods of at least thirty (30) days.
"Civil taxing unit" means any entity, except a school corporation,
that has the power to impose ad valorem property taxes. The term does
not include a solid waste management district that is not entitled to a
distribution under section 1.3 of this chapter. However, in the case of
a county in which a consolidated city is located, the consolidated city,
the county, all special taxing districts, special service districts, included
towns (as defined in IC 36-3-1-7), and all other political subdivisions
except townships, excluded cities (as defined in IC 36-3-1-7), and
school corporations shall be deemed to comprise one (1) civil taxing
unit whose fiscal body is the fiscal body of the consolidated city.
"County income tax council" means a council established by section
2 of this chapter.
"County taxpayer", as it relates to a particular county, means any
individual:
(1) who resides in that county on the date specified in section 20
of this chapter; or
(2) who maintains the taxpayer's principal place of business or
employment in that county on the date specified in section 20 of
this chapter and who does not reside on that same date in another
county in which the county option income tax, the county adjusted
income tax, or the county economic development income tax is in
effect.
"Department" refers to the Indiana department of state revenue.
"Fiscal body" has the same definition that the term is given in
IC 36-1-2-6.
"Homestead" has the meaning set forth in IC 6-1.1-12-37.
"Qualified residential property" refers to any of the following:
(1) An apartment complex.
(2) A homestead.
(3) Residential rental property.
"Resident county taxpayer", as it relates to a particular county,
means any county taxpayer who resides in that county on the date
specified in section 20 of this chapter.
"Residential rental property" means real property consisting of not
more than four (4) units that are regularly used to rent or otherwise
furnish residential accommodations for periods of at least thirty (30)
days.
"School corporation" has the same definition that the term is given
in IC 6-1.1-1-16.
county's welfare fund and welfare administration fund and, if the
county received a certified distribution under IC 6-3.5-1.1 or this
chapter in 2008, the property taxes imposed by the county in 2008 for
the county's county medical assistance to wards fund, family and
children's fund, children's psychiatric residential treatment services
fund, county hospital care for the indigent fund, and children with
special health care needs county fund.
(b) Except as provided in this subsection, an appropriation from
property taxes to repay interest and principal of a debt obligation is not
deducted from the allocation amount for a civil taxing unit if:
(1) the debt obligation was issued; and
(2) the proceeds appropriated from property taxes;
to refund or otherwise refinance a debt obligation or a lease issued
before July 1, 2005. However, an appropriation from property taxes
related to a debt obligation issued after June 30, 2005, is deducted if
the debt extends payments on a debt or lease beyond the time in which
the debt or lease would have been payable if the debt or lease had not
been refinanced or increases the total amount that must be paid on a
debt or lease in excess of the amount that would have been paid if the
debt or lease had not been refinanced. The amount of the deduction is
the annual amount for each year of the extension period or the annual
amount of the increase over the amount that would have been paid.
(c) Except as provided in this subsection, an appropriation from
property taxes to make payments on a lease is not deducted from the
allocation amount for a civil taxing unit if:
(1) the lease was issued; and
(2) the proceeds were appropriated from property taxes;
to refinance a debt obligation or lease issued before July 1, 2005.
However, an appropriation from property taxes related to a lease
entered into after June 30, 2005, is deducted if the lease extends
payments on a debt or lease beyond the time in which the debt or lease
would have been payable if it had not been refinanced or increases the
total amount that must be paid on a debt or lease in excess of the
amount that would have been paid if the debt or lease had not been
refinanced. The amount of the deduction is the annual amount for each
year of the extension period or the annual amount of the increase over
the amount that would have been paid.
option income tax. Any revenue derived from the imposition of the
county option income tax by a county shall be deposited in that county's
account in the state general fund.
(b) Any income earned on money held in an account under
subsection (a) becomes a part of that account.
(c) Any revenue remaining in an account established under
subsection (a) at the end of a fiscal year does not revert to the state
general fund.
(b) After the transfer to a county under subsection (a) is
completed, the special account established within the state general
fund for that county is abolished.
(c) This section expires June 30, 2014.
certify to the county auditor of each adopting county the amount
determined under subsection (a) plus the amount of interest in the
county's account that has accrued and has not been included in a
certification made in a preceding year. The amount certified is the
county's "certified distribution" for the immediately succeeding
calendar year. The amount certified shall be adjusted, as necessary,
under subsections (c), (d), (e), and (f). The budget agency shall provide
the county council with an informative summary of the calculations
used to determine the certified distribution. The summary of
calculations must include:
(1) the amount reported on individual income tax returns
processed by the department during the previous fiscal year;
(2) adjustments for over distributions in prior years;
(3) adjustments for clerical or mathematical errors in prior years;
(4) adjustments for tax rate changes; and
(5) the amount of excess account balances to be distributed under
IC 6-3.5-6-17.3.
The budget agency shall also certify information concerning the part of
the certified distribution that is attributable to a tax rate under section
30, 31, or 32 of this chapter. This information must be certified to the
county auditor and to the department of local government finance not
later than September 1 of each calendar year. The part of the certified
distribution that is attributable to a tax rate under section 30, 31, or 32
of this chapter may be used only as specified in those provisions.
(c) The budget agency shall certify an amount less than the amount
determined under subsection (b) if the budget agency determines that
the reduced distribution is necessary to offset overpayments made in a
calendar year before the calendar year of the distribution. The budget
agency may reduce the amount of the certified distribution over several
calendar years so that any overpayments are offset over several years
rather than in one (1) lump sum.
(d) The budget agency shall adjust the certified distribution of a
county to correct for any clerical or mathematical errors made in any
previous certification under this section. The budget agency may
reduce the amount of the certified distribution over several calendar
years so that any adjustment under this subsection is offset over several
years rather than in one (1) lump sum.
(e) This subsection applies to a county that imposes, increases,
decreases, or rescinds a tax or tax rate under this chapter before
November 1 in the same calendar year in which the budget agency
makes a certification under this section. The budget agency shall adjust
the certified distribution of a county to provide for a distribution in the
immediately following calendar year and in each calendar year
thereafter. The budget agency shall provide for a full transition to
certification of distributions as provided in subsection (a)(1) through
(a)(2) in the manner provided in subsection (c). If the county imposes,
increases, decreases, or rescinds a tax or tax rate under this chapter
after the date for which a certification under subsection (b) is based, the
budget agency shall adjust the certified distribution of the county after
August 1 of the calendar year. The adjustment shall reflect any other
adjustment required under subsections (c), (d), and (f). The adjusted
certification shall be treated as the county's "certified distribution" for
the immediately succeeding calendar year. The budget agency shall
certify the adjusted certified distribution to the county auditor for the
county and provide the county council with an informative summary of
the calculations that revises the informative summary provided in
subsection (b) and reflects the changes made in the adjustment.
(f) This subsection applies in the year a county initially imposes a
tax rate under section 30 of this chapter. Notwithstanding any other
provision, the budget agency shall adjust the part of the county's
certified distribution that is attributable to the tax rate under section 30
of this chapter to provide for a distribution in the immediately
following calendar year equal to the result of:
(1) the sum of the amounts determined under STEP ONE through
STEP FOUR of IC 6-3.5-1.5-1(a) in the year in which the county
initially imposes a tax rate under section 30 of this chapter;
multiplied by
(2) the following:
(A) In a county containing a consolidated city, one and
five-tenths (1.5).
(B) In a county other than a county containing a consolidated
city, two (2).
(g) One-twelfth (1/12) of each adopting county's certified
distribution for a calendar year shall be distributed from its account
established under section 16 of this chapter to the appropriate county
treasurer on the first regular business day of each month of that
calendar year.
(h) Upon receipt, each monthly payment of a county's certified
distribution shall be allocated among, distributed to, and used by the
civil taxing units of the county as provided in sections 18 and 19 of this
chapter.
(i) All distributions from an account established under section 16 of
this chapter shall be made by warrants issued by the auditor of state to
the treasurer of state ordering the appropriate payments.
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2014]: Sec. 18. (a) The revenue a county auditor
receives under this chapter shall be used to:
(1) replace the amount, if any, of property tax revenue lost due to
the allowance of an increased homestead credit within the county;
(2) fund the operation of a public communications system and
computer facilities district as provided in an election, if any, made
by the county fiscal body under IC 36-8-15-19(b);
(3) fund the operation of a public transportation corporation as
provided in an election, if any, made by the county fiscal body
under IC 36-9-4-42;
(4) fund the operation of a public library in a county containing a
consolidated city as provided in an election, if any, made by the
county fiscal body under IC 36-3-7-6;
(5) make payments permitted under IC 36-7-14-25.5 or
IC 36-7-15.1-17.5;
(6) make payments permitted under subsection (i);
(7) make distributions of distributive shares to the civil taxing
units of a county; and
(8) make the distributions permitted under sections 27, 28, 29, 30,
31, 32, and 33 of this chapter.
(b) The county auditor shall retain from the payments of the county's
certified distribution, revenue received under this chapter an amount
equal to the revenue lost, if any, due to the increase of the homestead
credit within the county. This money shall be distributed to the civil
taxing units and school corporations of the county as though they were
property tax collections and in such a manner that no civil taxing unit
or school corporation shall suffer a net revenue loss due to the
allowance of an increased homestead credit.
(c) The county auditor shall retain:
(1) the amount, if any, specified by the county fiscal body for a
particular calendar year under subsection (i), IC 36-3-7-6,
IC 36-7-14-25.5, IC 36-7-15.1-17.5, IC 36-8-15-19(b), and
IC 36-9-4-42 from the county's certified distribution for that same
calendar year; and
(2) the amount of an additional tax rate imposed under section 27,
28, 29, 30, 31, 32, or 33 of this chapter.
The county auditor shall distribute amounts retained under this
subsection to the county.
(d) All certified distribution revenues received under this chapter
that are not retained and distributed under subsections (b) and (c) shall
be distributed to the civil taxing units of the county as distributive
shares.
(e) The amount of distributive shares that each civil taxing unit in
a county is entitled to receive during a month equals the product of the
following:
(1) The amount of revenue that is to be distributed as distributive
shares during that month; multiplied by
(2) A fraction. The numerator of the fraction equals the allocation
amount for the civil taxing unit for the calendar year in which the
month falls. The denominator of the fraction equals the sum of the
allocation amounts of all the civil taxing units of the county for
the calendar year in which the month falls.
(f) The department of local government finance shall provide each
county auditor with the fractional amount of distributive shares that
each civil taxing unit in the auditor's county is entitled to receive
monthly under this section.
(g) Notwithstanding subsection (e), if a civil taxing unit of an
adopting county does not impose a property tax levy that is first due
and payable in a calendar year in which distributive shares are being
distributed under this section, that civil taxing unit is entitled to receive
a part of the revenue to be distributed as distributive shares under this
section within the county. The fractional amount such a civil taxing
unit is entitled to receive each month during that calendar year equals
the product of the following:
(1) The amount to be distributed as distributive shares during that
month; multiplied by
(2) A fraction. The numerator of the fraction equals the budget of
that civil taxing unit for that calendar year. The denominator of
the fraction equals the aggregate budgets of all civil taxing units
of that county for that calendar year.
(h) If for a calendar year a civil taxing unit is allocated a part of a
county's distributive shares by subsection (g), then the formula used in
subsection (e) to determine all other civil taxing units' distributive
shares shall be changed each month for that same year by reducing the
amount to be distributed as distributive shares under subsection (e) by
the amount of distributive shares allocated under subsection (g) for that
same month. The department of local government finance shall make
any adjustments required by this subsection and provide them to the
appropriate county auditors.
(i) Notwithstanding any other law, a county fiscal body may pledge
revenues received under this chapter (other than revenues attributable
to a tax rate imposed under section 30, 31, or 32 of this chapter) to the
payment of bonds or lease rentals to finance a qualified economic
development tax project under IC 36-7-27 in that county or in any other
county if the county fiscal body determines that the project will
promote significant opportunities for the gainful employment or
retention of employment of the county's residents.
equals the STEP THREE excess multiplied by the ratio of:
(A) the maximum permissible property tax levy under
IC 6-1.1-18.5 for the qualifying civil taxing unit during the
calendar year in which the month falls, plus, for a county, an
amount equal to the welfare allocation amount; divided by
(B) the sum of the maximum permissible property tax levies
under IC 6-1.1-18.5 for all qualifying civil taxing units of
the county during the calendar year in which the month falls,
and an amount equal to the welfare allocation amount.
(c) The welfare allocation amount is an amount equal to the sum of
the property taxes imposed by the county in 1999 for the county's
welfare fund and welfare administration fund and the property taxes
imposed by the county in 2008 for the county's county medical
assistance to wards fund, family and children's fund, children's
psychiatric residential treatment services fund, county hospital care for
the indigent fund, children with special health care needs county fund,
plus, in the case of Marion County, thirty-five million dollars
($35,000,000).
development, and the use of county option income tax revenues as
provided in this chapter to pay any bonds issued or leases entered into
to finance the construction, acquisition, improvement, renovation, and
equipping described under subsection (c), rather than use of property
taxes, promotes that purpose.
(b) In addition to the rates permitted by sections 8 and 9 of this
chapter, the county council may impose the county option income tax
at a rate of twenty-five hundredths percent (0.25%) on the adjusted
gross income of resident county taxpayers if the county council makes
the finding and determination set forth in subsection (c). Section 8(e)
of this chapter applies to the application of the additional rate to
nonresident taxpayers.
(c) In order to impose the county option income tax as provided in
this section, the county council must adopt an ordinance finding and
determining that revenues from the county option income tax are
needed to pay the costs of financing, constructing, acquiring,
renovating, and equipping a county jail, including the repayment of
bonds issued, or leases entered into, for financing, constructing,
acquiring, renovating, and equipping a county jail.
(d) If the county council makes a determination under subsection
(c), the county council may adopt a tax rate under subsection (b). The
tax rate may not be imposed at a rate or for a time greater than is
necessary to pay the costs of financing, constructing, acquiring,
renovating, and equipping a county jail.
(e) The county treasurer shall establish a county jail revenue fund
to be used only for the purposes described in this section. County
option 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 any other distributions of revenue
received under section 18 of this chapter.
(f) County option income tax revenues derived from the tax rate
imposed under this section:
(1) may only be used 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
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).
(g) The budget agency shall adjust the certified distribution of a
county to provide for an increased distribution of taxes in the
immediately following calendar year after the county adopts an
increased tax rate under this section and in each calendar year
thereafter. The budget agency shall provide for a full transition to
certification of distributions as provided in section 17(a)(1) through
17(a)(2) of this chapter in the manner provided in section 17(c) of this
chapter.
commissioner of the department of local government finance by
certified mail or in an electronic format approved by the director of the
budget agency.
(f) The county treasurer shall establish a county jail revenue fund to
be used only for the purposes described in this section. County option
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 any other distributions of revenue
received under section 18 of this chapter.
(g) County option income tax revenues derived from the tax rate
imposed under this section:
(1) may only be used for the purposes described in this section;
and
(2) may not be considered by the department of local government
finance in determining the county's maximum permissible
property tax levy limit under IC 6-1.1-18.5.
(h) The department of local government finance shall enforce an
agreement under subsection (d)(2).
(i) The budget agency shall adjust the certified distribution of a
county to provide for an increased distribution of taxes in the
immediately following calendar year after the county adopts an
increased tax rate under this section and in each calendar year
thereafter. The budget agency shall provide for a full transition to
certification of distributions as provided in section 17(a)(1) through
17(a)(2) of this chapter in the manner provided in section 17(c) of this
chapter.
(j) (i) The department county shall separately designate a tax rate
imposed under this section in any tax form as the Howard County jail
operating and maintenance income tax.
the purposes described in clause (A), except operation or
maintenance;
promotes the purpose of maintaining low property tax rates.
(b) The county fiscal body may impose the county option income tax
on the adjusted gross income of resident county taxpayers at a rate, in
addition to the rates permitted by sections 8 and 9 of this chapter, not
to exceed twenty-five hundredths percent (0.25%). Section 8(e) of this
chapter applies to the application of the additional rate to nonresident
taxpayers.
(c) To impose the county option income tax as provided in this
section, the county fiscal body must adopt an ordinance finding and
determining that additional revenues from the county option income tax
are needed in the county to fund:
(1) the financing, construction, acquisition, improvement,
renovation, equipping, operation, or maintenance of jail facilities;
and
(2) the repayment of bonds issued or leases entered into for the
purposes described in subdivision (1), except operation or
maintenance.
(d) If the county fiscal body makes a determination under subsection
(c), the county fiscal body may adopt an additional tax rate under
subsection (b). Subject to the limitations in subsection (b), the county
fiscal body may amend an ordinance adopted under this section to
increase, decrease, or rescind the additional tax rate imposed under this
section. Not more than ten (10) days after the vote, the county fiscal
body shall send a certified copy of the ordinance to the county auditor,
the commissioner of the department, the director of the budget agency,
and the commissioner of the department of local government finance
by certified mail or in an electronic format approved by the director of
the budget agency.
(e) If the county imposes an additional tax rate under this section,
the county treasurer shall establish a county jail revenue fund to be
used only for the purposes described in this section. County option
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 any other distributions of revenue
received under section 18 of this chapter.
(f) County option income tax revenues derived from an additional
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
property tax levy limit under IC 6-1.1-18.5; and
(3) may be pledged for the repayment of bonds issued or leases
entered into to fund the purposes described in subsection (c)(1),
except operation or maintenance.
(g) If the county imposes an additional tax rate under this section,
the budget agency shall adjust the certified distribution of the county
to provide for an increased distribution of taxes in the immediately
following calendar year after the county adopts the increased tax rate
and in each calendar year thereafter. The budget agency shall provide
for a full transition to certification of distributions as provided in
section 17(a)(1) through 17(a)(2) of this chapter in the manner
provided in section 17(c) of this chapter.
to the civil taxing unit; divided by
(B) the STEP ONE amount; multiplied by
(2) the tax revenue received by the county treasurer under this
section.
STEP THREE: For distributions in 2009 and thereafter, the result
of this STEP is zero (0). For distribution to the county for deposit
in the county family and children's fund before 2009, determine
the result of:
(1) the quotient of:
(A) the amount determined under STEP TWO of
IC 6-3.5-1.5-1(a) in the preceding year; divided by
(B) the STEP ONE amount; multiplied by
(2) the tax revenue received by the county treasurer under this
section.
STEP FOUR: For distributions in 2009 and thereafter, the result
of this STEP is zero (0). For distribution to the county for deposit
in the county children's psychiatric residential treatment services
fund before 2009, determine the result of:
(1) the quotient of:
(A) the amount determined under STEP THREE of
IC 6-3.5-1.5-1(a) in the preceding year; divided by
(B) the STEP ONE amount; multiplied by
(2) the tax revenue received by the county treasurer under this
section.
STEP FIVE: For distribution to the county for community mental
health center purposes, determine the result of:
(1) the quotient of:
(A) the amount determined under STEP FOUR of
IC 6-3.5-1.5-1(a) in the preceding year; divided by
(B) the STEP ONE amount; multiplied by
(2) the tax revenue received by the county treasurer under this
section.
Except as provided in subsection (m), the county treasurer shall
distribute the portion of the certified distribution revenue collected
under this chapter that is attributable to a tax rate under this section
as specified in this section. The county treasurer shall make the
distributions under this subsection at the same time that distributions
are made to civil taxing units under section 18 of this chapter.
(h) Notwithstanding sections 12 and 12.5 of this chapter, a county
income tax council may not decrease or rescind a tax rate imposed
under this section.
(i) The tax rate under this section shall not be considered for
purposes of computing:
(1) the maximum income tax rate that may be imposed in a county
under section 8 or 9 of this chapter or any other provision of this
chapter; or
(2) the maximum permissible property tax levy under
IC 6-1.1-18.5-3.
(j) The tax levy under this section shall not be considered for
purposes of the credit under IC 6-1.1-20.6.
(k) A distribution under this section shall be treated as a part of the
receiving civil taxing unit's property tax levy for that year for purposes
of fixing its budget and for determining the distribution of taxes that
are distributed on the basis of property tax levies.
(l) If a county income tax council imposes a tax rate under this
section, the county option income tax rate dedicated to locally funded
homestead credits in the county may not be decreased.
(m) In the year following the year in which a county first imposes
a tax rate under this section:
(1) one-third (1/3) of the tax revenue that is attributable to the tax
rate under this section must be deposited in the county
stabilization fund established under subsection (o), in the case of
a county containing a consolidated city; and
(2) one-half (1/2) of the tax revenue that is attributable to the tax
rate under this section must be deposited in the county
stabilization fund established under subsection (o), in the case of
a county not containing a consolidated city.
(n) A pledge of county option income taxes does not apply to
revenue attributable to a tax rate under this section.
(o) A county stabilization fund is established in each county that
imposes a tax rate under this section. The county stabilization fund
shall be administered by the county auditor. If for a year the certified
distributions revenue collected under this chapter attributable to a
tax rate under this section exceed exceeds the amount calculated under
STEP ONE through STEP FOUR of IC 6-3.5-1.5-1(a) that is used by
the department of local government finance and the department of state
revenue county to determine the tax rate under this section, the excess
shall be deposited in the county stabilization fund. Money shall be
distributed from the county stabilization fund in a year by the county
auditor to political subdivisions entitled to a distribution of tax revenue
attributable to the tax rate under this section if:
(1) the certified distributions revenue collected under this
chapter attributable to a tax rate under this section are is less than
the amount calculated under STEP ONE through STEP FOUR of
IC 6-3.5-1.5-1(a) that is used by the department of local
government finance and the department of state revenue county
to determine the tax rate under this section for a year; or
(2) the certified distributions revenue collected under this
chapter attributable to a tax rate under this section in a year are
is less than the certified distributions (for calculations in 2013)
or revenue collected under this chapter (for calculations in
2014 and thereafter) attributable to a tax rate under this section
in the preceding year.
However, subdivision (2) does not apply to the year following the first
year in which certified distributions of revenue received under this
chapter attributable to the tax rate under this section are is distributed
to the county.
(p) Notwithstanding any other provision, a tax rate imposed under
this section may not exceed one percent (1%).
(q) A county income tax council must each year hold at least one (1)
public meeting at which the county council discusses whether the tax
rate under this section should be imposed or increased.
(r) The department of local government finance and the department
of state revenue may take any actions necessary to carry out the
purposes of this section.
(s) Notwithstanding any other provision, in Lake County the county
council (and not the county income tax council) is the entity authorized
to take actions concerning the additional tax rate under this section.
or the person's custodian, guardian, or parent and that provides
for confinement, supervision, community corrections services,
or other correctional services instead of a final action
described in clause (B) or (C);
(B) convicted of a crime; or
(C) adjudicated as a delinquent child or a child in need of
services.
(8) A juvenile detention facility under IC 31-31-8.
(9) A juvenile detention center under IC 31-31-9.
(10) A county jail.
(11) A communications system (as defined in IC 36-8-15-3), or an
enhanced emergency telephone system (as defined in
IC 36-8-16-2 (before its repeal on July 1, 2012)), or the statewide
911 system (as defined in IC 36-8-16.7-22).
(12) Medical and health expenses for jail inmates and other
confined persons.
(13) Pension payments for any of the following:
(A) A member of the fire department (as defined in
IC 36-8-1-8) or any other employee of a fire department.
(B) A member of the police department (as defined in
IC 36-8-1-9), a police chief hired under a waiver under
IC 36-8-4-6.5, or any other employee hired by a police
department.
(C) A county sheriff or any other member of the office of the
county sheriff.
(D) Other personnel employed to provide a service described
in this section.
(b) The county income tax council may adopt an ordinance to
impose an additional tax rate under this section to provide funding for
public safety if:
(1) the county income tax council has imposed a tax rate under
section 30 of this chapter, in the case of a county containing a
consolidated city; or
(2) the county income tax council has imposed a tax rate of at
least twenty-five hundredths of one percent (0.25%) under section
30 of this chapter, a tax rate of at least twenty-five hundredths of
one percent (0.25%) under section 32 of this chapter, or a total
combined tax rate of at least twenty-five hundredths of one
percent (0.25%) under sections 30 and 32 of this chapter, in the
case of a county other than a county containing a consolidated
city.
(c) A tax rate under this section may not exceed the following:
revenue.
(h) The tax rate under this section and the tax revenue attributable
to the tax rate under this section shall not be considered for purposes
of computing:
(1) the maximum income tax rate that may be imposed in a county
under section 8 or 9 of this chapter or any other provision of this
chapter;
(2) the maximum permissible property tax levy under
IC 6-1.1-18.5-3; or
(3) the credit under IC 6-1.1-20.6.
(i) The tax rate under this section may be imposed or rescinded at
the same time and in the same manner that the county may impose or
increase a tax rate under section 30 of this chapter.
(j) The department of local government finance and the department
of state revenue may take any actions necessary to carry out the
purposes of this section.
(k) Notwithstanding any other provision, in Lake County the county
council (and not the county income tax council) is the entity authorized
to take actions concerning the additional tax rate under this section.
(l) Two (2) or more political subdivisions that are entitled to receive
a distribution under this section may adopt resolutions providing that
some part or all of those distributions shall instead be paid to one (1)
political subdivision in the county to carry out specific public safety
purposes specified in the resolutions.
(m) A fire department, volunteer fire department, or emergency
medical services provider that:
(1) provides fire protection or emergency medical services within
the county; and
(2) is operated by or serves a political subdivision that is not
otherwise entitled to receive a distribution of tax revenue under
this section;
may before July 1 of a year apply to the county income tax council for
a distribution of tax revenue under this section during the following
calendar year. The county income tax council shall review an
application submitted under this subsection and may before September
1 of a year adopt a resolution requiring that one (1) or more of the
applicants shall receive a specified amount of the tax revenue to be
distributed under this section during the following calendar year. A
resolution approved under this subsection providing for a distribution
to one (1) or more fire departments, volunteer fire departments, or
emergency services providers applies only to distributions in the
following calendar year. Any amount of tax revenue distributed under
this subsection to a fire department, volunteer fire department, or
emergency medical services provider shall be distributed before the
remainder of the tax revenue is distributed under subsection (f).
purposes of computing:
(1) the maximum income tax rate that may be imposed in a county
under section 8 or 9 of this chapter or any other provision of this
chapter;
(2) the maximum permissible property tax levy under
IC 6-1.1-18.5-3; or
(3) the credit under IC 6-1.1-20.6.
(h) Tax revenue under this section shall be treated as a part of the
receiving civil taxing unit's or school corporation's property tax levy for
that year for purposes of fixing the budget of the civil taxing unit or
school corporation and for determining the distribution of taxes that are
distributed on the basis of property tax levies. To the extent the county
auditor determines that there is income tax revenue remaining from the
tax under this section after providing the property tax replacement, the
excess shall be credited to a dedicated county account and may be used
only for property tax replacement under this section in subsequent
years.
(i) The department of local government finance and the department
of state revenue may take any actions necessary to carry out the
purposes of this section.
(j) Notwithstanding any other provision, in Lake County the county
council (and not the county income tax council) is the entity authorized
to take actions concerning the tax rate under this section.
thereafter. The budget agency shall provide for a full transition to
certification of distributions as provided in section 17(a)(1) through
17(a)(2) of this chapter in the manner provided in section 17(c) of this
chapter.
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, the director of the
budget agency, and the commissioner of the department of local
government finance by certified mail or in an electronic format
approved by the director of the budget agency.
(g) For Jackson County, except as provided in subsection (o), 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.
(h) For Pulaski County, except as provided in subsection (o), 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%).
(i) For Wayne County, except as provided in subsection (o), 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%).
(j) This subsection applies to Randolph County. Except as provided
in subsection (o), 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.
(k) For Daviess County, except as provided in subsection (o), 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%).
(l) For:
(1) Elkhart County; or
(2) Marshall County;
except as provided in subsection (o), 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 Union County, except as provided in subsection (o), 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) This subsection applies to Knox County. Except as provided in
subsection (o), 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.
(o) 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 (repealed)
before January 1, 2009, or IC 6-1.1-12-37 after December 31, 2008) 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 or from the
exclusion in 2008 of inventory from the definition of personal property
in IC 6-1.1-1-11.
(p) If the county economic development income tax is imposed as
authorized under subsection (o) at a rate that exceeds the maximum
rate that would otherwise apply under this section, the certified
distribution revenue collected under this chapter must be used for the
purpose provided in section 26 of this chapter to the extent that the
certified distribution revenue collected under this chapter 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.
(q) This subsection applies only to a county described in section 27
of this chapter. Except as provided in subsection (o), 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.
(r) Except as provided in subsection (o), 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.
(s) This subsection applies to Howard County. Except as provided
in subsection (o), 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%).
(t) This subsection applies to Scott County. Except as provided in
subsection (o), 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 Jasper County. Except as provided in
subsection (o), 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%).
(v) 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.
(w) The income tax rate limits imposed by subsection (c) or (x) 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 (x) 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.
(x) This subsection applies to Monroe County. Except as provided
in subsection (o), 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%).
(y) This subsection applies to Perry County. Except as provided in
subsection (o), 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%).
(z) This subsection applies to Starke County. Except as provided in
subsection (o), 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%).
certify to the county auditor of each adopting county the sum of the
amount of county economic development income tax revenue that the
budget agency determines has been:
(1) received from that county for a taxable year ending before the
calendar year in which the determination is made; and
(2) reported on an annual return or amended return processed by
the department in the state fiscal year ending before July 1 of the
calendar year in which the determination is made;
as adjusted for refunds of county economic development income tax
made in the state fiscal year plus the amount of interest in the county's
account that has been accrued and has not been included in a
certification made in a preceding year. The amount certified is the
county's certified distribution, which shall be distributed on the dates
specified in section 16 of this chapter for the following calendar year.
(c) The amount certified under subsection (b) shall be adjusted
under subsections (d), (e), (f), and (g). The budget agency shall provide
the county council with an informative summary of the calculations
used to determine the certified distribution. The summary of
calculations must include:
(1) the amount reported on individual income tax returns
processed by the department during the previous fiscal year;
(2) adjustments for over distributions in prior years;
(3) adjustments for clerical or mathematical errors in prior years;
(4) adjustments for tax rate changes; and
(5) the amount of excess account balances to be distributed under
IC 6-3.5-7-17.3.
(d) The budget agency shall certify an amount less than the amount
determined under subsection (b) if the budget agency determines that
the reduced distribution is necessary to offset overpayments made in a
calendar year before the calendar year of the distribution. The budget
agency may reduce the amount of the certified distribution over several
calendar years so that any overpayments are offset over several years
rather than in one (1) lump sum.
(e) The budget agency shall adjust the certified distribution of a
county to correct for any clerical or mathematical errors made in any
previous certification under this section. The budget agency may
reduce the amount of the certified distribution over several calendar
years so that any adjustment under this subsection is offset over several
years rather than in one (1) lump sum.
(f) The budget agency shall adjust the certified distribution of a
county to provide the county with the amount of any tax increase
imposed under section 26 of this chapter to provide additional
homestead credits as provided in those provisions.
(g) This subsection applies to a county that imposes, increases,
decreases, or rescinds a tax or tax rate under this chapter before
November 1 in the same calendar year in which the budget agency
makes a certification under this section. The budget agency shall adjust
the certified distribution of a county to provide for a distribution in the
immediately following calendar year and in each calendar year
thereafter. The budget agency shall provide for a full transition to
certification of distributions as provided in subsection (b)(1) through
(b)(2) in the manner provided in subsection (d). If the county imposes,
increases, decreases, or rescinds a tax or tax rate under this chapter
after the date for which a certification under subsection (b) is based, the
budget agency shall adjust the certified distribution of the county after
August 1 of the calendar year. The adjustment shall reflect any other
adjustment authorized under subsections (c), (d), (e), and (f). The
adjusted certification shall be treated as the county's certified
distribution for the immediately succeeding calendar year. The budget
agency shall certify the adjusted certified distribution to the county
auditor for the county and provide the county council with an
informative summary of the calculations that revises the informative
summary provided in subsection (c) and reflects the changes made in
the adjustment.
(h) The budget agency shall before May 1 of every odd-numbered
year publish an estimate of the statewide total amount of certified
distributions to be made under this chapter during the following two (2)
calendar years.
(i) The budget agency shall before May 1 of every even-numbered
year publish an estimate of the statewide total amount of certified
distributions to be made under this chapter during the following
calendar year.
(j) The estimates under subsections (h) and (i) must specify the
amount of the estimated certified distributions that are attributable to
any additional rates authorized under this chapter.
chapter that the county and each city or town in a county is entitled to
receive each month of each year equals the product of the following:
(1) The amount of the certified distribution revenue collected
under this chapter for that month; multiplied by
(2) A fraction. The numerator of the fraction equals the sum of:
(A) total property taxes that are first due and payable to the
county, city, or town during the calendar year in which the
month falls; plus
(B) for a county, the welfare allocation amount.
The denominator of the fraction equals the sum of the total
property taxes that are first due and payable to the county and all
cities and towns of the county during the calendar year in which
the month falls, plus the welfare allocation amount. The welfare
allocation amount is an amount equal to the sum of the property
taxes imposed by the county in 1999 for the county's welfare fund
and welfare administration fund and, if the county received a
certified distribution under this chapter in 2008, the property
taxes imposed by the county in 2008 for the county's county
medical assistance to wards fund, family and children's fund,
children's psychiatric residential treatment services fund, county
hospital care for the indigent fund, and children with special
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 revenue
collected under this chapter 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 section 26 of this chapter, the amount
of the certified distribution revenue collected under this chapter
that the county and each city and town in the county is entitled to
receive during each month of each year equals the product of:
(A) the amount of the certified distribution revenue collected
under this chapter 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
revenue collected under this chapter 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 revenue collected under
this chapter 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, revenue collected under this
chapter, subject to the requirements of sections 15 and 26 of this
chapter.
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 distributions of revenue collected
under this chapter 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 Porter County 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 distributions of
revenue collected under this chapter are made to the county or
any cities or towns in the county. In Porter County, 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 Porter County. 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 Lake County. The 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.
(B) The county, city, or town fiscal body that adopts an
ordinance under this subdivision must forward a copy of the
ordinance to the county auditor and the department of local
government finance not more than thirty (30) days after the
ordinance is adopted.
(C) The homestead credits must be applied uniformly to
increase the homestead credit under IC 6-1.1-20.9 (repealed)
for homesteads in the county, city, or town (for property taxes
first due and payable before January 1, 2009) or to provide a
homestead credit for homesteads in the county, city, or town
(for property taxes first due and payable after December 31,
2008).
(D) The homestead credits shall be treated for all purposes as
property tax levies.
(E) 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.
(F) 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.
(7) For a regional venture capital fund established under section
13.5 of this chapter or a local venture capital fund established
under section 13.6 of this chapter.
(8) This subdivision applies only to LaPorte County, if:
(A) the county fiscal body has adopted an ordinance under
IC 36-7.5-2-3(e) providing that the county is joining the
northwest Indiana regional development authority; and
(B) the fiscal body of the city described in IC 36-7.5-2-3(e) has
adopted an ordinance under IC 36-7.5-2-3(e) providing that
the city is joining the development authority.
Revenue from the county economic development income tax may
be used by a county or a city described in this subdivision for
making transfers required by IC 36-7.5-4-2. In addition, if the
county economic development income tax rate is increased after
June 30, 2006, in the county, 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 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 of revenue collected under this
chapter 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 LaPorte County. 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.
[EFFECTIVE JANUARY 1, 2014]: Sec. 15. (a) The executive of a
county, city, or town may, subject to the use of the certified distribution
revenue collected under this chapter permitted under section 26 of
this chapter:
(1) adopt a capital improvement plan specifying the uses of the
revenues to be received under this chapter; or
(2) designate the county or a city or town in the county as the
recipient of all or a part of its share of the distribution.
(b) If a designation is made under subsection (a)(2), the county
treasurer shall transfer the share or part of the share to the designated
unit unless that unit does not have a capital improvement plan.
(c) A county, city, or town that fails to adopt a capital improvement
plan may not receive:
(1) its fractional amount of the certified distribution; revenue
collected under this chapter; or
(2) any amount designated under subsection (a)(2);
for the year or years in which the unit does not have a plan. The county
treasurer shall retain the certified distribution unit's part of the
revenue collected under this chapter and any designated distribution
for such a unit in a separate account until the unit adopts a plan.
Interest on the separate account becomes part of the account. If a unit
fails to adopt a plan for a period of three (3) years, then the balance in
the separate account shall be distributed to the other units in the county
based on property taxes first due and payable to the units during the
calendar year in which the three (3) year period expires.
(d) A capital improvement plan must include the following
components:
(1) Identification and general description of each project that
would be funded by the county economic development income
tax.
(2) The estimated total cost of the project.
(3) Identification of all sources of funds expected to be used for
each project.
(4) The planning, development, and construction schedule of each
project.
(e) A capital improvement plan:
(1) must encompass a period of no less than two (2) years; and
(2) must incorporate projects the cost of which is at least
seventy-five percent (75%) of the fractional amount certified
distribution of the revenue collected under this chapter that is
expected to be received by the county, city, or town in that period
of time.
which the balance in the county account exceeds one hundred fifty
percent (150%) of the certified distributions to be made to the county
in the ensuing year.
(c) A determination under this section must be made before October
2.
finding and determining that revenues from the county economic
development income tax are needed to pay the costs of:
(1) financing, constructing, acquiring, renovating, and equipping
the county courthouse, and financing and renovating the former
county hospital for additional office space, educational facilities,
nonsecure juvenile facilities, and other county functions,
including the repayment of bonds issued, or leases entered into for
constructing, acquiring, renovating, and equipping the county
courthouse and for renovating the former county hospital for
additional office space, educational facilities, nonsecure juvenile
facilities, and other county functions;
(2) financing constructing, acquiring, renovating, and equipping
buildings for a volunteer fire department (as defined in
IC 36-8-12-2) that provides services in any part of the county; and
(3) financing constructing, acquiring, and renovating firefighting
apparatus or other related equipment for a volunteer fire
department (as defined in IC 36-8-12-2) that provides services in
any part of the county.
(d) If the county council makes a determination under subsection
(c), the county council may adopt a tax rate under subsection (b). The
tax rate may not be imposed at a rate or for a time greater than is
necessary to pay for the purposes described in this section.
(e) The county treasurer shall establish a county option tax 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 option tax
revenue fund before making a certified distribution distributions under
section 11 12 of this chapter.
(f) County economic development income tax revenues derived
from the tax rate imposed under this section:
(1) may only be used 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
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).
(g) Randolph County possesses:
(1) unique fiscal challenges to finance the operations of county
government due to the county's ongoing obligation to repay
amounts received by the county due to an overpayment of the
county's certified distribution under IC 6-3.5-1.1-9 (before its
repeal) for a prior year; and
as property tax replacement credits under this subsection. The
department of local government finance shall make any adjustments
required by this subsection and provide the adjustments to the county
auditor.
(g) The department of local government finance shall inform the
county auditor of the amount of property tax replacement credits that
each public library in the county is entitled to receive under this
section. The county auditor shall certify to each public library the
amount of property tax replacement credits that the public library is
entitled to receive during that calendar year. The county auditor shall
also certify these amounts to the county treasurer.
(h) A public library receiving property tax replacement credits under
this section shall allocate the credits among each fund for which a
distinct property tax levy is imposed. The amount that must be
allocated to each fund equals:
(1) the amount of property tax replacement credits provided to the
public library under this section; multiplied by
(2) the amount determined in STEP THREE of the following
formula:
STEP ONE: Determine the property taxes that would have
been collected for each fund by the public library during the
previous calendar year if the property tax replacement under
this section had not been in effect.
STEP TWO: Determine the sum of the total property taxes that
would have been collected for all funds by the public library
during the previous calendar year if the property tax
replacement under this section had not been in effect.
STEP THREE: Divide the STEP ONE amount by the STEP
TWO amount.
However, if a public library did not impose a property tax levy during
the previous calendar year or did not impose a property tax levy for a
particular fund during the previous calendar year, but the public library
is imposing a property tax levy in the current calendar year or is
imposing a property tax levy for the particular fund in the current
calendar year, the department of local government finance shall adjust
the amount of property tax replacement credits allocated among the
various funds of the public library and shall provide the adjustment to
the county auditor. If a public library receiving property tax
replacement credits under this section does not impose a property tax
levy for a particular fund that is first due and payable in a calendar year
in which the property tax replacement credits are being distributed, the
public library is not required to allocate to that fund a part of the
property tax replacement credits to be distributed to the public library.
Notwithstanding IC 6-1.1-20-1.1(1), a public library that receives
property tax replacement credits under this section is subject to the
procedures for the issuance of bonds set forth in IC 6-1.1-20.
(i) For each public library that receives property tax credits under
this section, the department of local government finance shall certify
to the county auditor the property tax rate applicable to each fund after
the property tax replacement credits are allocated.
(j) A public library shall treat property tax replacement credits
received during a particular calendar year under this section as a part
of the public library's property tax levy for each fund for that same
calendar year for purposes of fixing the public library's budget and for
purposes of the property tax levy limits imposed by IC 6-1.1-18.5.
(k) For the purpose of computing and distributing certified
distributions revenue under IC 6-3.5-1.1 and tax revenue under
IC 6-5.5 or IC 6-6-5, the property tax replacement credits that are
received under this section shall be treated as though they were
property taxes that were due and payable during that same calendar
year.
imposed under this section shall be deposited in the county jail revenue
fund before making a certified distribution distributions under section
11 12 of this chapter.
(f) County economic development income tax revenues derived
from the tax rate imposed under this section:
(1) may only be used 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
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).
provided in subsection (e). An adopting entity that adopts an ordinance
under this subsection shall use the procedures set forth in IC 6-3.5-6
concerning the adoption of an ordinance for the imposition of the
county option income tax. The ordinance may provide for an additional
rate under section 5(o) of this chapter. An ordinance adopted under this
subsection:
(1) first applies to the certified distribution described in section 16
of revenue received by the adopting entity under this chapter
made in the later of the calendar year that immediately succeeds
the calendar year in which the ordinance is adopted; or calendar
year 2007; and
(2) must specify that the certified distribution revenue received
by the adopting entity under this chapter must be used to
provide for one (1) of the following, as determined by the
adopting entity:
(A) Uniformly applied homestead credits as provided in
subsection (f).
(B) Uniformly applied residential credits as provided in
subsection (g).
(C) Allocated homestead credits as provided in subsection (i).
(D) Allocated residential credits as provided in subsection (j).
An ordinance adopted under this subsection may be combined with an
ordinance adopted under section 25 of this chapter (before its repeal).
(d) If an ordinance is adopted under subsection (c), the percentage
of the certified distribution revenue specified in the ordinance for use
for the purpose provided in subsection (e) shall be:
(1) retained by the county auditor under subsection (k); and
(2) used for the purpose provided in subsection (e) instead of the
purposes specified in the capital improvement plans adopted
under section 15 of this chapter.
(e) If an ordinance is adopted under subsection (c), the adopting
entity shall use the certified distribution described in section 16 of
revenue received by the adopting entity under this chapter to
provide:
(1) if the ordinance grants a credit described in subsection
(c)(2)(A) or (c)(2)(C), a homestead credit for homesteads; or
(2) if the ordinance grants a credit described in subsection
(c)(2)(B) or (c)(2)(D), a property tax replacement credit for
residential property;
for property taxes to offset the effect on homesteads or residential
property, as applicable, in the county resulting from the statewide
deduction for inventory under IC 6-1.1-12-42 or from the exclusion in
2008 of inventory from the definition of personal property in
IC 6-1.1-1-11. The amount of a residential property tax replacement
credit granted under this section may not be considered in computing
the amount of any homestead credit to which the residential property
may be entitled under IC 6-1.1-20.9 (before its repeal) or another law
other than IC 6-1.1-20.6.
(f) If the imposing entity specifies the application of uniform
homestead credits under subsection (c)(2)(A), the county auditor shall,
for each calendar year in which a homestead credit percentage is
authorized under this section, determine:
(1) the amount of the certified distribution revenue received by
the adopting entity under this chapter that is available to
provide a homestead credit percentage under this section for the
year;
(2) the amount of uniformly applied homestead credits for the
year in the county that equals the amount determined under
subdivision (1); and
(3) the percentage of homestead credit under this section that
equates to the amount of homestead credits determined under
subdivision (2).
(g) If the imposing entity specifies the application of uniform
residential credits under subsection (c)(2)(B), the county auditor shall
determine for each calendar year in which a homestead credit
percentage is authorized under this section:
(1) the amount of the certified distribution revenue received by
the adopting entity under this chapter that is available to
provide a residential property tax replacement credit percentage
for the year;
(2) the amount of uniformly applied residential property tax
replacement credits for the year in the county that equals the
amount determined under subdivision (1); and
(3) the percentage of residential property tax replacement credit
under this section that equates to the amount of residential
property tax replacement credits determined under subdivision
(2).
(h) The percentage of homestead credit determined by the county
auditor under subsection (f) or the percentage of residential property
tax replacement credit determined by the county auditor under
subsection (g) applies uniformly in the county in the calendar year for
which the percentage is determined.
(i) If the imposing entity specifies the application of allocated
homestead credits under subsection (c)(2)(C), the county auditor shall,
for each calendar year in which a homestead credit is authorized under
this section, determine:
(1) the amount of the certified distribution revenue received by
the adopting entity under this chapter that is available to
provide a homestead credit under this section for the year; and
(2) except as provided in subsection (l), a percentage of
homestead credit for each taxing district in the county that
allocates to the taxing district an amount of homestead credits that
bears the same proportion to the amount determined under
subdivision (1) that the amount of inventory assessed value
deducted under IC 6-1.1-12-42 in the taxing district for the
assessment date in 2006 bears to the total inventory assessed
value deducted under IC 6-1.1-12-42 in the county for the
assessment date in 2006.
(j) If the imposing entity specifies the application of allocated
residential property tax replacement credits under subsection (c)(2)(D),
the county auditor shall determine for each calendar year in which a
residential property tax replacement credit is authorized under this
section:
(1) the amount of the certified distribution revenue received by
the adopting entity under this chapter that is available to
provide a residential property tax replacement credit under this
section for the year; and
(2) except as provided in subsection (l), a percentage of
residential property tax replacement credit for each taxing district
in the county that allocates to the taxing district an amount of
residential property tax replacement credits that bears the same
proportion to the amount determined under subdivision (1) that
the amount of inventory assessed value deducted under
IC 6-1.1-12-42 in the taxing district for the assessment date in
2006 bears to the total inventory assessed value deducted under
IC 6-1.1-12-42 in the county for the assessment date in 2006.
(k) The county auditor shall retain from the payments of the county's
certified distribution revenue collected under this chapter an amount
equal to the revenue lost, if any, due to the homestead credit or
residential property tax replacement credit provided under this section
within the county. The money shall be distributed to the civil taxing
units and school corporations of the county:
(1) as if the money were from property tax collections; and
(2) in such a manner that no civil taxing unit or school
corporation will suffer a net revenue loss because of the
allowance of a homestead credit or residential property tax
replacement credit under this section.
(l) Subject to the approval of the imposing entity, the county auditor
may adjust the increased percentage of:
(1) homestead credit determined under subsection (i)(2) if the
county auditor determines that the adjustment is necessary to
achieve an equitable reduction of property taxes among the
homesteads in the county; or
(2) residential property tax replacement credit determined under
subsection (j)(2) if the county auditor determines that the
adjustment is necessary to achieve an equitable reduction of
property taxes among the residential property in the county.
operating the county courthouse or related facilities; and
(3) economic development projects described in the county's
capital improvement plan.
(d) The tax rate imposed under this section may not exceed
twenty-five hundredths percent (0.25%).
(e) If the county council adopts an ordinance to impose an
additional tax under this section, the county auditor shall, not more
than ten (10) days after the vote, send a certified copy of the ordinance
to the commissioner of the department, the director of the budget
agency, and the commissioner of the department of local government
finance by certified mail or in an electronic format approved by the
director of the budget agency. The county treasurer shall establish a
county facilities revenue fund to be used only for the purposes
described in subsection (c)(1) and (c)(2). The amount of county
economic development income tax revenues derived from the tax rate
imposed under this section that are necessary to pay the costs described
in subsection (c)(1) and (c)(2) shall be deposited into the county
facilities revenue fund before a certified making a distribution is made
of revenue under section 12 of this chapter. The remainder shall be
deposited into the economic development income tax funds of the
county's units.
(f) County economic development income tax revenues derived
from the tax rate imposed under this section may not be used for
purposes other than those described in this section.
(g) County economic development income tax revenues derived
from the tax rate imposed under this section that are deposited into the
county facilities revenue fund may not be considered by the department
of local government finance in determining the county's ad valorem
property tax levy for an ensuing calendar year under IC 6-1.1-18.5.
(h) Notwithstanding any other law, funds accumulated from the
county economic development income tax imposed under this section
and deposited into the county facilities revenue fund or any other
revenues of the county may be deposited into a nonreverting fund of
the county to be used for operating costs of the courthouse facilities,
juvenile detention facilities, or related facilities. Amounts in the county
nonreverting fund may not be used by the department of local
government finance to reduce the county's ad valorem property tax levy
for an ensuing calendar year under IC 6-1.1-18.5.
tax rate may not be imposed at a rate greater than is necessary to pay
the costs of financing, acquiring, improving, renovating, remodeling,
and equipping the county jail and related buildings and parking,
including costs related to the demolition of existing buildings, the
acquisition of land, and any other reasonably related costs.
(f) 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 distributions under section
11 12 of this chapter.
(g) 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
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).
(h) Notwithstanding any other law, funds accumulated from the
county economic development income tax imposed under this section
after:
(1) the redemption of bonds issued; or
(2) the final payment of lease rentals due under a lease entered
into under this section;
shall be transferred to the county highway fund to be used for
construction, resurfacing, restoration, and rehabilitation of county
highways, roads, and bridges.
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 distributions under section
11 12 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).
imposed the county economic development income tax, the entity that
may impose the county economic development income tax under
section 5(a)(3) of this chapter) may by ordinance impose an additional
county economic development income tax at a rate of:
(1) in the case of a county described in IC 36-7.6-4-2(b)(2),
twenty-five thousandths of one percent (0.025%); or
(2) in the case of any other county to which this section applies,
five-hundredths of one percent (0.05%);
on the adjusted gross income of county taxpayers.
(c) If an additional county economic development income tax is
imposed under this section, the county treasurer shall establish a county
regional development authority fund. Notwithstanding any other
provision of this chapter, the county economic development income tax
revenues derived from the additional county economic development
income tax imposed under this section must be deposited in the county
regional development authority fund before making any certified
distributions are made distributions under section 12 of this chapter.
(d) County economic development income tax revenues derived
from the additional county economic development income tax imposed
under this section and deposited in the county regional development
authority fund:
(1) shall, not more than thirty (30) days after being deposited in
the county regional development authority fund, be transferred as
provided in IC 36-7.6-4-2 to the development fund of the regional
development authority for which the county is a member; and
(2) may not be considered by the department of local government
finance in determining the county's maximum permissible
property tax levy under IC 6-1.1-18.5.
procedures specified in IC 6-3-4 for returns, reports, payments,
estimates, withholding, and remittances related to taxes
administered by the department of state revenue apply to the
county administration of taxes imposed under IC 6-3.5-1.1,
IC 6-3.5-6, or IC 6-3.5-7, except that any reference to the
department of state revenue shall be considered a reference to the
county treasurer.
(b) The following do not apply to the county administration of
taxes imposed under IC 6-3.5-1.1, IC 6-3.5-6, or IC 6-3.5-7:
(1) IC 6-3-4-1.5.
(2) IC 6-3-4-16.
(3) IC 6-3-4-16.5.
Sec. 4. A taxpayer who for a taxable year:
(1) is required to file a return with the department of state
revenue under IC 6-3-4-1; and
(2) is subject to a tax imposed by a county under IC 6-3.5-1.1,
IC 6-3.5-6, or IC 6-3.5-7;
must file a county return with the county treasurer on or before
the fifteenth day of the fourth month following the close of the
taxable year.
Sec. 5. If a tax return is required under this chapter, a taxpayer
required to make the return shall, without assessment or notice
and demand from the county treasurer, pay the tax to the county
treasurer at the time fixed for filing the return without regard to
any extension of time for filing the return. In making a return and
paying tax for any taxable year, the taxpayer shall take credit for
any tax previously paid by the taxpayer for the taxable year.
Sec. 6. Except as otherwise provided and unless the context
clearly denotes otherwise, the provisions of IC 6-8.1-3 concerning:
(1) hearings;
(2) entering into contracts with persons to provide services
necessary to properly administer and collect taxes;
(3) the class or type of mailing to be used;
(4) the audit of returns;
(5) the appraisal of property if the property's value relates to
the administration or enforcement of a tax;
(6) subpoena powers;
(7) court orders;
(8) the authority to recover court costs, fees, and other
expenses related to an audit, investigatory, appraisal, or
enforcement action;
(9) concurrent jurisdiction of the attorney general and the
respective county prosecuting attorney in conducting criminal
prosecutions of tax matters; and
(10) prosecution by the attorney general of a civil action to
collect unpaid taxes, penalties, and interest and to enforce the
department's powers;
apply to the county administration of taxes imposed under
IC 6-3.5-1.1, IC 6-3.5-6, or IC 6-3.5-7, except that any reference to
the department of state revenue shall be considered a reference to
the county treasurer.
Sec. 7. (a) A county treasurer shall maintain, for at least three
(3) years:
(1) a record of all money received and disbursed under
IC 6-3.5-1.1, IC 6-3.5-6, or IC 6-3.5-7; and
(2) copies of all tax returns filed with the county under
IC 6-3.5-1.1, IC 6-3.5-6, or IC 6-3.5-7.
(b) The state board of accounts shall annually audit a county's
record of receipts and disbursements under IC 6-3.5-1.1,
IC 6-3.5-6, or IC 6-3.5-7.
Sec. 8. Except as otherwise provided and unless the context
clearly denotes otherwise, the provisions of IC 6-8.1-5 concerning:
(1) making proposed assessments of taxes, including deadlines
for making assessments;
(2) holding hearings;
(3) issuing letters of findings;
(4) appealing decisions to the tax court;
(5) jurisdiction of the tax court;
(6) issuing and serving tax warrants; and
(7) keeping books and records and allowing inspection of
books and records and returns;
apply to the county administration of taxes imposed under
IC 6-3.5-1.1, IC 6-3.5-6, or IC 6-3.5-7, except that any reference to
the department of state revenue shall be considered a reference to
the county treasurer.
Sec. 9. (a) Except as otherwise provided and unless the context
clearly denotes otherwise, the provisions of IC 6-8.1-8 concerning:
(1) methods of making a tax payment;
(2) final discharge of tax liability;
(3) vendor transaction charges or discount fees;
(4) issuance of receipts;
(5) application of partial payments;
(6) payment of withholding tax liability using periodic
payments;
(7) issuance of demand notices for the payment of a tax and
any interest or penalties accrued on the tax;
(8) procedures and deadlines;
(9) issuance, filing, recording, enforcement, and collection of
tax warrants;
(10) liens and judgments related to tax warrants;
(11) the sale of property to satisfy a tax warrant;
(12) disbursements of judgments collected that arose from tax
warrants;
(13) fees;
(14) obtaining a court order restraining a person from
conducting business in Indiana;
(15) appointment of receivers;
(16) actions that may be taken without judicial proceedings;
(17) proceedings supplementary to execution on a judgment;
(18) actions to levy on or encumber an account;
(19) erroneous levies;
(20) determination of uncollectible taxes, interest, penalties,
collection fees, sheriff's costs, clerk's costs, or fees;
(21) levying on unclaimed property; and
(22) the issuing, commencing, or conducting a demand notice,
warrant, levy, or proceeding in court for the collection of a
protested tax or any penalties and interest against a taxpayer;
apply to the county administration of taxes imposed under
IC 6-3.5-1.1, IC 6-3.5-6, or IC 6-3.5-7, except that any reference to
the department of state revenue shall be considered a reference to
the county treasurer.
(b) The provisions of IC 6-8.1-8-8.7 concerning operation of a
data match system with financial institutions do not apply to the
county administration of taxes imposed under IC 6-3.5-1.1,
IC 6-3.5-6, or IC 6-3.5-7.
Sec. 10. (a) Except as otherwise provided and unless the context
clearly denotes otherwise, the provisions of IC 6-8.1-9 concerning:
(1) procedures and deadlines for filing a claim for a refund;
(2) issuance of a decision on a claim for a refund;
(3) appeal to the tax court of a decision on a claim for a
refund;
(4) jurisdiction of the tax court to hear an appeal of a decision
on a claim for a refund;
(5) refunding the excess amount of tax payments to a person;
(6) the accrual of interest; and
(7) class actions for the refund of a tax;
apply to the county administration of taxes imposed under
IC 6-3.5-1.1, IC 6-3.5-6, or IC 6-3.5-7, except that any reference to
the department of state revenue shall be considered a reference to
the county treasurer.
(b) The provisions of IC 6-8.1-9-4 concerning the payment of a
refund to the nongame fund do not apply to the county
administration of taxes imposed under IC 6-3.5-1.1, IC 6-3.5-6, or
IC 6-3.5-7.
Sec. 11. Except as otherwise provided and unless the context
clearly denotes otherwise, the provisions of IC 6-8.1-10 concerning:
(1) failure to file a state tax return;
(2) failure to pay the full amount of tax shown on the
taxpayer's tax return by the due date for the return or the
payment;
(3) incurring a deficiency upon a determination by the county
treasurer;
(4) the applicable adjusted rate of interest;
(5) interest on excess tax payments;
(6) the waiver of interest;
(7) failure to timely remit any tax held in trust;
(8) failure to make payment by electronic funds transfer,
overnight courier, or personal delivery by the due date;
(9) waiver of penalties;
(10) failure to withhold and pay any amount of tax required
to be withheld;
(11) notices;
(12) preparation of returns for a taxpayer;
(13) penalties and additional penalties;
(14) civil and criminal penalties;
(15) inability to obtain payment on a check, credit card, debit
card, or electronic funds transfer for its full face amount; and
(16) actions required by the officers and directors of a
corporation;
apply to the county administration of taxes imposed under
IC 6-3.5-1.1, IC 6-3.5-6, or IC 6-3.5-7, except that any reference to
the department of state revenue shall be considered a reference to
the county treasurer.
(IC 4-33-13); the slot machine wagering tax (IC 4-35-8); the type II
gambling game excise tax (IC 4-36-9); the gross income tax (IC 6-2.1)
(repealed); the utility receipts and utility services use taxes (IC 6-2.3);
the state gross retail and use taxes (IC 6-2.5); the adjusted gross income
tax (IC 6-3); the supplemental net income tax (IC 6-3-8) (repealed); the
county adjusted gross income tax (IC 6-3.5-1.1); the county option
income tax (IC 6-3.5-6); the county economic development income tax
(IC 6-3.5-7); the auto rental excise tax (IC 6-6-9); the financial
institutions tax (IC 6-5.5); the gasoline tax (IC 6-6-1.1); the alternative
fuel permit fee (IC 6-6-2.1); the special fuel tax (IC 6-6-2.5); the motor
carrier fuel tax (IC 6-6-4.1); a motor fuel tax collected under a
reciprocal agreement under IC 6-8.1-3; the motor vehicle excise tax
(IC 6-6-5); the commercial vehicle excise tax (IC 6-6-5.5); the excise
tax imposed on recreational vehicles and truck campers (IC 6-6-5.1);
the hazardous waste disposal tax (IC 6-6-6.6); the cigarette tax
(IC 6-7-1); the beer excise tax (IC 7.1-4-2); the liquor excise tax
(IC 7.1-4-3); the wine excise tax (IC 7.1-4-4); the hard cider excise tax
(IC 7.1-4-4.5); the malt excise tax (IC 7.1-4-5); the petroleum
severance tax (IC 6-8-1); the various innkeeper's taxes (IC 6-9); the
various food and beverage taxes (IC 6-9); the county admissions tax
(IC 6-9-13 and IC 6-9-28); the regional transportation improvement
income tax (IC 8-24-17); the oil inspection fee (IC 16-44-2); the
emergency and hazardous chemical inventory form fee (IC 6-6-10); the
penalties assessed for oversize vehicles (IC 9-20-3 and IC 9-30); the
fees and penalties assessed for overweight vehicles (IC 9-20-4 and
IC 9-30); the underground storage tank fee (IC 13-23); the solid waste
management fee (IC 13-20-22); and any other tax or fee that the
department is required to collect or administer.
to a county that has a population of more than one hundred eighty-five
thousand (185,000) but less than two hundred fifty thousand (250,000).
For the purpose of raising money to fund the operation of the district,
the county fiscal body may impose, for property taxes first due and
payable during each year after the adoption of an ordinance
establishing the district, an ad valorem property tax levy on property
within the district. The property tax rate for that levy may not exceed
five cents ($0.05) on each one hundred dollars ($100) of assessed
valuation.
(b) This subsection applies to a county having a consolidated city.
The county fiscal body may elect to fund the operation of the district
from part of the certified distribution, revenue, if any, that the county
is to receive during a particular calendar year under IC 6-3.5-6-17.
IC 6-3.5-6. To make such an election, the county fiscal body must
adopt an ordinance before November 1 of the immediately preceding
calendar year. The county fiscal body must specify in the ordinance the
amount of the certified distribution revenue that is to be used to fund
the operation of the district. If the county fiscal body adopts such an
ordinance, it shall immediately send a copy of the ordinance to the
county auditor.
(c) Subject to subsections (d), (e), and (f), if an ordinance or
resolution is adopted changing the territory covered by the district or
the number of public agencies served by the district, the department of
local government finance shall, for property taxes first due and payable
during the year after the adoption of the ordinance, adjust the
maximum permissible ad valorem property tax levy limits of the
district and the units participating in the district.
(d) If a unit by ordinance or resolution joins the district or elects to
have its public safety agencies served by the district, the department of
local government finance shall reduce the maximum permissible ad
valorem property tax levy of the unit for property taxes first due and
payable during the year after the adoption of the ordinance or
resolution. The reduction shall be based on the amount budgeted by the
unit for public safety communication services in the year in which the
ordinance was adopted. If such an ordinance or resolution is adopted,
the district shall refer its proposed budget, ad valorem property tax
levy, and property tax rate for the following year to the department of
local government finance, which shall review and set the budget, levy,
and rate as though the district were covered by IC 6-1.1-18.5-7.
(e) If a unit by ordinance or resolution withdraws from the district
or rescinds its election to have its public safety agencies served by the
district, the department of local government finance shall reduce the
maximum permissible ad valorem property tax levy of the district for
property taxes first due and payable during the year after the adoption
of the ordinance or resolution. The reduction shall be based on the
amounts being levied by the district within that unit. If such an
ordinance or resolution is adopted, the unit shall refer its proposed
budget, ad valorem property tax levy, and property tax rate for public
safety communication services to the department of local government
finance, which shall review and set the budget, levy, and rate as though
the unit were covered by IC 6-1.1-18.5-7.
(f) The adjustments provided for in subsections (c), (d), and (e) do
not apply to a district or unit located in a particular county if the county
fiscal body of that county does not impose an ad valorem property tax
levy under subsection (a) to fund the operation of the district.
(g) A county that has adopted an ordinance under section 1(3) of
this chapter may not impose an ad valorem property tax levy on
property within the district to fund the operation or implementation of
the district.
lease to an urban mass transportation system, including the
payment of any amount outstanding under a mortgage, contract of
sale, or other security device that may attach to the buses or real
property;
(4) the acquisition by a public transportation corporation of
property of an urban mass transportation system, including the
payment of any amount outstanding under a mortgage, contract of
sale, or other security device that may attach to the property;
(5) the operation of an urban mass transportation system by a
public transportation corporation, including the acquisition of
additional property for such a system; and
(6) the retirement of bonds issued and outstanding under this
chapter.
(c) This subsection applies only to a public transportation
corporation located in a county having a consolidated city. In order to
provide revenue to a public transportation corporation during a year,
the public transportation corporation board may recommend and the
county fiscal body may elect to provide revenue to the corporation from
part of the certified distribution, revenue, if any, that the county is to
receive during that same year under IC 6-3.5-6-17. IC 6-3.5-6. To
make the election, the county fiscal body must adopt an ordinance
before November 1 of the preceding year. The county fiscal body must
specify in the ordinance the amount of the certified distribution
revenue that is to be used to provide revenue to the corporation. If such
an ordinance is adopted, the county fiscal body shall immediately send
a copy of the ordinance to the county auditor.