Citations Affected:
IC 6-1.1-21.8-4
; IC 6-3.5;
IC 36-1-8-5.1
.
Synopsis: Distribution of local option income taxes. Extends the rainy day fund loan repayment
schedule for Porter County school corporations and public libraries by one year. Changes the
method for computing the amount distributed to counties from money received by the department
of state revenue from a county adjusted gross income tax, county option income tax, or county
economic development income tax. Provides for a transition to the new method for counties in
the first several years that a county income tax is initially imposed in the county. Requires a
supplemental distribution in excess of the certified distribution to be deposited in a civil taxing
unit's rainy day fund. Repeals: (1) provisions concerning the keeping of three and six month
balances in a county's tax account with the state; and (2) a provision requiring a report on
account balances for the county economic development income tax in February of each year.
(This conference committee report: (1) changes, for purposes of determining the maximum
allowable levy for a county adopting a county adjusted gross income tax after 2002, the
formula for determining its base year revenue; (2) requires the department of state revenue
to distribute an excess balance in a county's special account as a supplemental distribution;
(3) allows revenue from a rate increase allowed under HEA 1155, which was enacted in the
2003 session of the general assembly, to be received 10 months after revenues from the rate
increase are initially collected; (4) extends the loan repayment provisions applicable to
Porter County school corporations to public libraries in Porter County; and (5) corrects
several punctuation errors.)
Effective: Upon passage; June 1, 2003; July 1, 2003.
MR. SPEAKER:
Your Conference Committee appointed to confer with a like committee from the Senate
upon Engrossed House Amendments to Engrossed Senate Bill No. 166 respectfully reports
that said two committees have conferred and agreed as follows to wit:
that the Senate recede from its dissent from all House amendments and that
the Senate now concur in all House amendments to the bill and that the bill
be further amended as follows:
Delete everything after the enacting clause and insert the following:
calendar year in the county in which a particular civil taxing unit is
located, then the civil taxing unit's base year certified share is the
amount of certified shares to be received by the civil taxing unit during
its base year.
(c) (d) If the county adjusted gross income tax was in effect on
January 1 of the calendar year immediately preceding the ensuing
calendar year in the county in which a particular civil taxing unit is
located, then the civil taxing unit's base year certified share is the
amount of certified shares received by the civil taxing unit in its base
year unit's initial certified distribution multiplied by a fraction:
(1) The numerator of the fraction equals the remainder of the
county adjusted gross income tax rate of the county in which the
civil taxing unit is located and that is imposed on January 1 of the
ensuing calendar year minus one quarter of one percent (1/4%).
(2) The denominator of the fraction equals the remainder of the
county adjusted gross income tax rate of the county in which the
civil taxing unit is located and that is imposed on January 1 of the
civil taxing unit's base year minus one quarter of one percent
(1/4%).
(e) This subsection applies to a civil taxing unit that is located in
a county that:
(1) adopts the county adjusted gross income tax after
December 31, 2002; and
(2) had a county adjusted gross income tax in effect on January
1 of the calendar year immediately preceding the ensuing
calendar year.
Until the department of state revenue, after reviewing the
recommendation of the budget agency, notifies the department of
local government finance that a full transition to certification of
distributions as provided in
IC 6-3.5-1.1-9
(a)(1) through
IC 6-3.5-1.1-9
(a)(2) has occurred for the calendar year, the initial
certified distribution to be used under subsection (e) for the civil
taxing unit shall be the amount of the certified shares certified for
the civil taxing unit in the most current calendar year preceding
the ensuing calendar year. For the calendar year for which a full
transition to certification of distributions as provided in
IC 6-3.5-1.1-9
(a)(1) through
IC 6-3.5-1.1-9
(a)(2) has occurred and
each subsequent calendar year, the initial certified distribution to
be used under subsection (e) for the civil taxing unit is the amount
of certified shares certified for the civil taxing unit in the calendar
year in which a full transition to certification of distributions as
provided in
IC 6-3.5-1.1-9
(a)(1) through
IC 6-3.5-1.1-9
(a)(2)
initially occurred for the civil taxing unit. The department of state
revenue, after reviewing the recommendation of the budget agency,
shall provide the notice to the department of local government
finance as required under this subsection.
Department of Labor Consumer Price Index for Urban Wage Earners
and Clerical Workers during the most recent twelve (12) month period
for which data is available as of the date that the unit applies for a loan
under this chapter. In the case of a qualified taxing unit that is not
a school corporation or a public library (as defined in
IC 20-14-1-2
), a loan must be repaid not later than ten (10) years after
the date on which the loan was made. In the case of a qualified taxing
unit that is a school corporation or a public library (as defined in
IC 20-14-1-2
), a loan must be repaid not later than eleven (11)
years after the date on which the loan was made. A school
corporation or a public library (as defined in
IC 20-14-1-2
) is not
required to begin making payments to repay a loan until after June
30, 2004. The total amount of all the loans made under this chapter
may not exceed twenty-eight million dollars ($28,000,000). The board
may disburse the proceeds of a loan in installments. However, not more
than one-third (1/3) of the total amount to be loaned under this chapter
may be disbursed at any particular time without the review of the
budget committee and the approval of the budget agency.
(b) A loan made under this chapter shall be repaid only from:
(1) property tax revenues of the qualified taxing unit that are
subject to the levy limitations imposed by
IC 6-1.1-18.5
or
IC 6-1.1-19
; or
(2) any other source of revenues (other than property taxes) that is
legally available to the qualified taxing unit.
The payment of any installment of principal constitutes a first charge
against the property tax revenues described in subdivision (1) that are
collected by the qualified taxing unit during the calendar year the
installment is due and payable.
(c) The obligation to repay a loan made under this chapter is not a
basis for the qualified taxing unit to obtain an excessive tax levy under
IC 6-1.1-18.5
or
IC 6-1.1-19.
(d) Whenever the board receives a payment on a loan made under
this chapter, the board shall deposit the amount paid in the
counter-cyclical revenue and economic stabilization fund.
(e) This section does not prohibit a qualified taxing unit from
repaying a loan made under this chapter before the date specified in
subsection (a) if a taxpayer described in section 3 of this chapter
resumes paying property taxes to the qualified taxing unit.
(f) Interest accrues on a loan made under this chapter until the date
the board receives notice from the county auditor that the county has
adopted at least one (1) of the following:
(1) The county adjusted gross income tax under
IC 6-3.5-1.1.
(2) The county option income tax under
IC 6-3.5-6.
(3) The county economic development income tax under
IC 6-3.5-7.
Notwithstanding subsection (a), interest may not be charged on a loan
made under this chapter if a tax described in this subsection is adopted
before a qualified taxing unit applies for the loan.
the manner prescribed by this section, be distributed to the county that
imposed it. The amount to be distributed to a county during an ensuing
calendar year equals the amount of county adjusted gross income tax
revenue that the department, after reviewing the recommendation of the
state budget agency, estimates will be received from that county during
the twelve (12) month period beginning July 1 of the immediately
preceding calendar year and ending June 30 of the ensuing calendar
year. 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 (as determined after review of the recommendation of
the budget agency) for refunds of county adjusted gross income tax
made in the state fiscal year.
(b) Before July August 2 of each calendar year, the department, after
reviewing the recommendation of the state budget agency, shall
estimate and certify to the county auditor of each adopting county the
amount of county adjusted gross income tax revenue that will be
collected from that county during the twelve (12) month period
beginning July 1 of that calendar year and ending June 30 of the
immediately succeeding calendar year. 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 may shall be adjusted under subsection subsections (c), or
(d), (e), (f), and (g). The department shall provide with the
certification an informative summary of the calculations used to
determine the certified distribution.
(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 state budget
agency, determines that there will be a greater amount of revenue
available for distribution from the county's account established under
section 8 of this chapter.
(d) (c) The department may shall certify an amount less than the
estimated twelve (12) month revenue collection amount determined
under subsection (b) if the department, after reviewing the
recommendation of the state 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. the reduced distribution is necessary to offset
overpayments made in a calendar year before the calendar year of
the distribution. The department, after reviewing the
recommendation of 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 department, after reviewing the recommendation of 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 department, after
reviewing the recommendation of 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) The department, after reviewing the recommendation of the
budget agency, shall adjust the certified distribution of a county to
provide the county with the distribution required under section
10(b) of this chapter.
(f) This subsection applies to a county that initially imposes a tax
under this chapter in the same calendar year in which the
department makes a certification under this section. The
department, after reviewing the recommendation of 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 department 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).
(g) The department, after reviewing the recommendation of 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.
certified shares and property tax replacement credits.
(b) Before August 2 August 10 of each calendar year, each county
auditor shall determine the part of the certified distribution for the next
succeeding calendar year that will be allocated as property tax
replacement credits and the part that will be allocated as certified
shares. The percentage of a certified distribution that will be allocated
as property tax replacement credits or as certified shares depends upon
the county adjusted gross income tax rate for resident county taxpayers
in effect on August 1 of the calendar year that precedes the year in
which the certified distribution will be received by two (2) years. The
percentages are set forth in the following table:
PROPERTY
COUNTY
TAX
ADJUSTED GROSS
REPLACEMENT
CERTIFIED
INCOME TAX RATE
CREDITS
SHARES
0.5%
50%
50%
0.75%
33 1/3%
66 2/3%
1%
25%
75%
(c) The part of a certified distribution that constitutes property tax
replacement credits shall be distributed as provided under sections 12,
13, and 14 of this chapter.
(d) The part of a certified distribution that constitutes certified
shares shall be distributed as provided by section 15 of this chapter.
amount of county option income tax revenue that will be collected from
that county during the twelve (12) month period beginning July 1 of
that calendar year and ending June 30 of the immediately succeeding
calendar year. 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 may shall be adjusted,
as necessary, under subsection subsections (c), or (d) , and (e). The
department shall provide with the certification an informative
summary of the calculations used to determine the certified
distribution.
(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 state budget
agency, determines that there will be a greater amount of revenue
available for distribution from the county's account established under
section 16 of this chapter.
(d) (c) The department may shall certify an amount less than the
estimated twelve (12) month revenue collection amount determined
under subsection (b) if the department, after reviewing the
recommendation of the state budget agency, determines that a part of
those collections needs to be distributed during the current calendar
year so that the county will receive its full certified distribution for the
current calendar year. the reduced distribution is necessary to offset
overpayments made in a calendar year before the calendar year of
the distribution. The department, after reviewing the
recommendation of 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 department, after reviewing the recommendation of 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 department, after
reviewing the recommendation of 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 imposed
a tax under this chapter in the same calendar year in which the
department makes a certification under this section. The
department, after reviewing the recommendation of 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 department 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).
(f) 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 day of each month of that calendar year.
(f) (g) Except as provided in section 2.5 of this chapter, 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.
(g) (h) 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.
unit is entitled to receive under section 18(g) of this chapter, the
department of local government finance shall consider only the
percentage of the civil taxing unit's budget that equals the ratio that the
total assessed valuation that lies within the civil taxing unit and the
county that has adopted the county option tax bears to the total assessed
valuation that lies within the civil taxing unit.
(c) The distributive shares to be allocated and distributed under this
chapter shall be treated by each civil taxing unit as additional revenue
for the purpose of fixing its budget for the budget year during which the
distributive shares is to be distributed to the civil taxing unit.
(d) In the case of a civil taxing unit that includes a consolidated city
its fiscal body may distribute any revenue it receives under this chapter
to any governmental entity located in its county except an excluded
city, a township, or a school corporation.
shall provide with the certification an informative summary of the
calculations used to determine the certified distribution.
(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) (c) The department may shall certify an amount less than the
estimated twelve (12) month revenue collection amount determined
under subsection (b) 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. the reduced distribution is necessary to offset
overpayments made in a calendar year before the calendar year of
the distribution. The department, after reviewing the
recommendation of 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) After reviewing the recommendation of the budget agency,
the department 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 department, after
reviewing the recommendation of 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) The department, after reviewing the recommendation of the
budget agency, shall adjust the certified distribution of a county to
provide the county with the distribution required under section
16(b) of this chapter.
(f) The department, after reviewing the recommendation of 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 25 or 26 of this chapter to provide additional
homestead credits as provided in those provisions.
(g) This subsection applies to a county that initially imposed a
tax under this chapter in the same calendar year in which the
department makes a certification under this section. The
department, after reviewing the recommendation of 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 department 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 (c).
from the budget agency, the department determines that a sufficient
balance existed at the end of the preceding year that exceeded the
required six (6) month balance as of the end of the preceding exists in
a county account in excess of the amount necessary, when added to
other money that will be deposited in the account after the date of
the recommendation, to make certified distributions to the county
in the ensuing year, the department may shall make a supplemental
distribution to a county from the county's special account.
(b) A supplemental distribution described in subsection (a) must be:
(1) made in January of the ensuing calendar year; and
(2) allocated and used in the same manner as certified
distributions for deposit in a civil unit's rainy day fund
established under
IC 36-1-8-5.1.
(c) A determination under this section must be made before July
October 2.
____________________________ ____________________________
Senator KenleyRepresentative Cochran
Chairperson
____________________________ ____________________________
Senator HumeRepresentative Espich
Senate Conferees House Conferees