YES:
MR. SPEAKER:
Your Committee on Ways and Means , to which was referred Senate Bill 79 , has
had the same under consideration and begs leave to report the same back to the House with the
recommendation that said bill be amended as follows:
income" means the following:
(1) In the case of a corporation subject to taxation under
IC 6-3-8, the corporation's taxable income (as defined in
IC 6-3-1-3.5(b)).
(2) In the case of a corporation that is exempt from the
adjusted gross income tax under IC 6-3-2-2.8(2), the
corporation's total S corporation income reported on the
taxpayer's Indiana S corporation income tax return for the
year.
(3) In the case of a partnership, the partnership's total
partnership income reported on the partnership's Indiana
partnership return for the year, adjusted by:
(A) subtracting any income of the partnership that
constitutes personal service income as defined in Section
1348(b)(1) of the Internal Revenue Code or a reasonable
allowance for compensation paid or accrued for services
rendered by partners to the partnership, whichever is
greater; and
(B) adding the amount of deductions allowed to the
partnership under Section 707(c) of the Internal Revenue
Code in calculating its taxable income.
development tax is imposed; or
(3) the county income tax council or the county council,
whichever acts first, for a county not covered by subdivision (1)
or (2).
To impose the county economic development income tax, a county
income tax council shall use the procedures set forth in IC 6-3.5-6
concerning the imposition of the county option income tax.
(b) Except as provided in subsections (c), and (g), and section 5.5
of this chapter, the county economic development income tax may be
imposed at a rate of:
(1) one-tenth percent (0.1%);
(2) two-tenths percent (0.2%);
(3) twenty-five hundredths percent (0.25%);
(4) three-tenths percent (0.3%);
(5) thirty-five hundredths percent (0.35%);
(6) four-tenths percent (0.4%);
(7) forty-five hundredths percent (0.45%); or
(8) five-tenths percent (0.5%);
on the adjusted gross income of county taxpayers.
(c) Except as provided in subsection (h), or (i), the county economic
development income tax rate plus the county adjusted gross income tax
rate, if any, that are in effect on January 1 of a year may not exceed one
and twenty-five hundredths percent (1.25%), excluding any rate
imposed under section 5.5 of this chapter. Except as provided in
subsection (g), the county economic development tax rate plus the
county option income tax rate, if any, that are in effect on January 1 of
a year may not exceed one percent (1%), excluding any rate imposed
under section 5.5 of this chapter.
(d) To impose the county economic development income tax on
county taxpayers, the appropriate body must, after January 1 but
before April 1 of a year, adopt an ordinance. The ordinance must
substantially state the following:
"The ________ County _________ imposes the county economic
development income tax on the county taxpayers of _________
County. The county economic development income tax is imposed at
a rate of _________ percent (____%) on the county taxpayers of the
county. This tax takes effect July 1 of this year.".
(e) Any ordinance adopted under this section takes effect July 1 of
the year the ordinance is adopted.
(f) The auditor of a county shall record all votes taken on ordinances
presented for a vote under the authority of this section and immediately
send a certified copy of the results to the department by certified mail.
(g) This subsection applies to a county having a population of more
than one hundred twenty-nine thousand (129,000) but less than one
hundred thirty thousand six hundred (130,600). In addition to the rates
permitted by subsection (b), the:
(1) county economic development income tax may be imposed at
a rate of:
(A) fifteen-hundredths percent (0.15%);
(B) two-tenths percent (0.2%); or
(C) twenty-five hundredths percent (0.25%);
on county taxpayers; 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%),
excluding any rate imposed under section 5.5 of this chapter;
if the county income tax council makes a determination to impose rates
under this subsection and section 22 of this chapter.
(h) For a county having a population of more than thirty-seven
thousand (37,000) but less than thirty-seven thousand eight hundred
(37,800), 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%),
excluding any rate imposed under section 5.5 of this chapter, if the
county has imposed the county adjusted gross income tax at a rate of
one and one-tenth percent (1.1%) under IC 6-3.5-1.1-2.5.
(i) For a county having a population of more than twelve thousand
six hundred (12,600) but less than thirteen thousand (13,000), 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%), excluding any
rate imposed under section 5.5 of this chapter.
1, 2001]: Sec. 5.5. (a) In addition to the county economic
development income tax imposed on the adjusted gross income of
county taxpayers under section 5 of this chapter, the county income
tax council or the county council, as determined under section 5 of
this chapter, may impose an economic development income tax for
business personal property tax replacement purposes on the
apportioned net income of corporations and pass through entities.
(b) The county economic development income tax may be
imposed under this section at a rate of:
(1) not more than one and five-tenths percent (1.5%) of the
apportioned net income of a corporation; and
(2) not more than five-tenths percent (0.5%) of the
apportioned net income of a pass through entity.
(c) The county economic development income tax may be
imposed under this section on corporations and pass through
entities in the same manner that the county economic development
income tax is imposed on county taxpayers under section 5 of this
chapter.
immediately send a certified copy of the results to the department by
certified mail.
the following calendar year. The amount certified may be adjusted
under subsection (c) or (d).
(2) The amount of county economic development income tax
revenue that will be collected from that county under a tax
imposed under section 5.5 of this chapter during the twelve
(12) month period beginning July 1 of that calendar year and
ending June 30 of the following calendar year. The amount
certified is the county's business personal property tax
replacement certified distribution, which shall be distributed
on the dates specified in section 16 of this chapter for the
following calendar year. The amount certified may be
adjusted under subsection (c) or (d).
(c) The department may certify to an adopting county an amount
that is greater than the estimated twelve (12) month revenue collection
if the department, after reviewing the recommendation of the budget
agency, determines that there will be a greater amount of revenue
available for distribution from the county's account established under
section 10 of this chapter.
(d) The department may certify an amount less than the estimated
twelve (12) month revenue collection if the department, after reviewing
the recommendation of the budget agency, determines that a part of
those collections need to be distributed during the current calendar year
so that the county will receive its full certified distribution for the
current calendar year.".
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property tax statement sent to a person after all deductions and
credits, including the credits under IC 6-1.1-20.5 and IC 6-1.1-21,
have been applied under any other statute.
(c) As used in this section, "business personal property"
includes personal property as defined in IC 6-1.1-1-11.
(d) If the county council or county income tax council imposes
a county economic development income tax under section 5.5 of
this chapter, the county economic development income tax revenue
generated by the tax rate imposed under section 5.5 of this chapter
shall be used for property tax replacement purposes in the county
as specified in this section. The entity that imposes a tax under
section 5.5 of this chapter shall each year specify by ordinance the
types or classes of business personal property that are eligible for
property tax replacement under this section.
(e) The county treasurer shall establish a business personal
property tax replacement fund to be used only for the purposes
described in this section. The county's business personal property
tax replacement certified distributions shall be deposited in the
business personal property tax replacement fund and shall not be
included in the certified distributions made under section 12 of this
chapter.
(f) The county assessor shall determine the amount of each
property owner's assessed value that is attributable to the assessed
value of business personal property in the county that is eligible for
property tax replacement under this section. Before December 1 of
each year, the county assessor shall provide the county auditor
with the amount of assessed value of business personal property for
each taxpayer that is eligible for property tax replacement under
this section.
(g) The county auditor shall compute the amount of property
taxes in the county that is attributable to assessed value of business
personal property that is eligible for property tax replacement
under this section, as reported by the county assessor using the
same property tax liability that is used to calculate the property tax
replacement credit under IC 6-1.1-21-5 but after deducting the
property tax replacement credit and the personal property tax
reduction credit under IC 6-1.1-20.5.
(h) Before March 1 of each year, each county auditor shall
certify to the state board of tax commissioners the amount of
assessed value of business personal property that is eligible for
property tax replacement under this section and for which the
credit should be applied. Before March 15 of each year, the state
board of tax commissioners shall, based on the balance in the
county's business personal property tax replacement fund, certify
to the county auditor the amount of business personal property tax
replacement credits that will be provided to each taxpayer in the
county for the year. The percentage of the credit against property
taxes on eligible business personal property must be uniform
throughout the county. To the extent consistent with this section,
the credits shall be determined in the same manner as property tax
replacement credits are determined under IC 6-1.1-21 but after
deducting the property tax replacement credit and the personal
property tax reduction credit.
(i) The county auditor shall do the following:
(1) Apply the business personal property tax replacement
credit percentage under this section against the net property
tax liability on business personal property of each taxpayer in
the county that is eligible for property tax replacement under
this section.
(2) Distribute from the county's business personal property
tax replacement fund to each taxing unit in the county the
amount of business personal property tax replacement credits
allocated to the taxing unit for the year.
(j) A taxing unit shall treat property tax replacement credits
received during a particular calendar year under this section as a
part of the taxing unit's property tax levy for each fund for that
same calendar year for purposes of fixing the taxing unit's budget
and for purposes of property tax levy limits.
(k) For the purpose of computing and distributing certified
distributions under IC 6-3.5-1.1 and tax revenue under IC 6-5-10,
IC 6-5-11, IC 6-5-12, 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
and when so amended that said bill do pass.