Introduced Version
HOUSE BILL No. 1838
_____
DIGEST OF INTRODUCED BILL
Citations Affected:
IC 6-3.5-7
.
Synopsis: Fayette County CEDIT. Authorizes Fayette County to
impose an additional county economic development income tax
(CEDIT) rate of not more than 0.25% to pay the capital and operating
costs of renovating the county courthouse and to pay the costs of
economic development projects. Provides that revenues from the
additional tax rate may be used to repay bonds issued or leases entered
into for the courthouse.
Effective: Upon passage.
Hoffman, Pflum
January 23, 2003, read first time and referred to Committee on Ways and Means.
Introduced
First Regular Session 113th General Assembly (2003)
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HOUSE BILL No. 1838
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 6-3.5-7-5; (03)IN1838.1.1. -->
SECTION 1.
IC 6-3.5-7-5
, AS AMENDED BY P.L.192-2002(ss),
SECTION 121, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 5. (a) Except as provided in
subsection (c), the county economic development income tax may be
imposed on the adjusted gross income of county taxpayers. The entity
that may impose the tax is:
(1) the county income tax council (as defined in
IC 6-3.5-6-1
) if
the county option income tax is in effect on January 1 of the year
the county economic development income tax is imposed;
(2) the county council if the county adjusted gross income tax is
in effect on January 1 of the year the county economic
development tax is imposed; or
(3) the county income tax council or the county council,
whichever acts first, for a county not covered by subdivision (1)
or (2).
To impose the county economic development income tax, a county
income tax council shall use the procedures set forth in
IC 6-3.5-6
concerning the imposition of the county option income tax.
(b) Except as provided in subsections (c), (g), (k), and (p), and (r),
the county economic development income tax may be imposed at a rate
of:
(1) one-tenth percent (0.1%);
(2) two-tenths percent (0.2%);
(3) twenty-five hundredths percent (0.25%);
(4) three-tenths percent (0.3%);
(5) thirty-five hundredths percent (0.35%);
(6) four-tenths percent (0.4%);
(7) forty-five hundredths percent (0.45%); or
(8) five-tenths percent (0.5%);
on the adjusted gross income of county taxpayers.
(c) Except as provided in subsection (h), (i), (j), (k), (l), (m), (n), (o),
or (p), the county economic development income tax rate plus the
county adjusted gross income tax rate, if any, that are in effect on
January 1 of a year may not exceed one and twenty-five hundredths
percent (1.25%). Except as provided in subsection (g), or (p), or (r),
the county economic development tax rate plus the county option
income tax rate, if any, that are in effect on January 1 of a year may not
exceed one percent (1%).
(d) To impose, increase, decrease, or rescind the county economic
development income tax, the appropriate body must, after January 1 but
before April 1 of a year, adopt an ordinance. The ordinance to impose
the tax must substantially state the following:
"The ________ County _________ imposes the county economic
development income tax on the county taxpayers of _________
County. The county economic development income tax is imposed at
a rate of _________ percent (____%) on the county taxpayers of the
county. This tax takes effect July 1 of this year.".
(e) Any ordinance adopted under this chapter takes effect July 1 of
the year the ordinance is adopted.
(f) The auditor of a county shall record all votes taken on ordinances
presented for a vote under the authority of this chapter and shall, not
more than ten (10) days after the vote, send a certified copy of the
results to the commissioner of the department by certified mail.
(g) This subsection applies to a county having a population of more
than one hundred forty-eight thousand (148,000) but less than one
hundred seventy thousand (170,000). Except as provided in subsection
(p), in addition to the rates permitted by subsection (b), the:
(1) county economic development income tax may be imposed at
a rate of:
(A) fifteen-hundredths percent (0.15%);
(B) two-tenths percent (0.2%); or
(C) twenty-five hundredths percent (0.25%); and
(2) county economic development income tax rate plus the county
option income tax rate that are in effect on January 1 of a year
may equal up to one and twenty-five hundredths percent (1.25%);
if the county income tax council makes a determination to impose rates
under this subsection and section 22 of this chapter.
(h) For a county having a population of more than forty-one
thousand (41,000) but less than forty-three thousand (43,000), except
as provided in subsection (p), the county economic development
income tax rate plus the county adjusted gross income tax rate that are
in effect on January 1 of a year may not exceed one and thirty-five
hundredths percent (1.35%) if the county has imposed the county
adjusted gross income tax at a rate of one and one-tenth percent (1.1%)
under
IC 6-3.5-1.1-2.5.
(i) For a county having a population of more than thirteen thousand
five hundred (13,500) but less than fourteen thousand (14,000), except
as provided in subsection (p), the county economic development
income tax rate plus the county adjusted gross income tax rate that are
in effect on January 1 of a year may not exceed one and fifty-five
hundredths percent (1.55%).
(j) For a county having a population of more than seventy-one
thousand (71,000) but less than seventy-one thousand four hundred
(71,400), except as provided in subsection (p), the county economic
development income tax rate plus the county adjusted gross income tax
rate that are in effect on January 1 of a year may not exceed one and
five-tenths percent (1.5%).
(k) This subsection applies to a county having a population of more
than twenty-seven thousand four hundred (27,400) but less than
twenty-seven thousand five hundred (27,500). Except as provided in
subsection (p), in addition to the rates permitted under subsection (b):
(1) the county economic development income tax may be imposed
at a rate of twenty-five hundredths percent (0.25%); and
(2) the sum of the county economic development income tax rate
and the county adjusted gross income tax rate that are in effect on
January 1 of a year may not exceed one and five-tenths percent
(1.5%);
if the county council makes a determination to impose rates under this
subsection and section 22.5 of this chapter.
(l) For a county having a population of more than twenty-nine
thousand (29,000) but less than thirty thousand (30,000), except as
provided in subsection (p), the county economic development income
tax rate plus the county adjusted gross income tax rate that are in effect
on January 1 of a year may not exceed one and five-tenths percent
(1.5%).
(m) For:
(1) a county having a population of more than one hundred
eighty-two thousand seven hundred ninety (182,790) but less than
two hundred thousand (200,000); or
(2) a county having a population of more than forty-five thousand
(45,000) but less than forty-five thousand nine hundred (45,900);
except as provided in subsection (p), the county economic development
income tax rate plus the county adjusted gross income tax rate that are
in effect on January 1 of a year may not exceed one and five-tenths
percent (1.5%).
(n) For a county having a population of more than six thousand
(6,000) but less than eight thousand (8,000), except as provided in
subsection (p), the county economic development income tax rate plus
the county adjusted gross income tax rate that are in effect on January
1 of a year may not exceed one and five-tenths percent (1.5%).
(o) This subsection applies to a county having a population of more
than thirty-nine thousand (39,000) but less than thirty-nine thousand
six hundred (39,600). Except as provided in subsection (p), in addition
to the rates permitted under subsection (b):
(1) the county economic development income tax may be imposed
at a rate of twenty-five hundredths percent (0.25%); and
(2) the sum of the county economic development income tax rate
and:
(A) the county adjusted gross income tax rate that are in effect
on January 1 of a year may not exceed one and five-tenths
percent (1.5%); or
(B) the county option income tax rate that are in effect on
January 1 of a year may not exceed one and twenty-five
hundredths percent (1.25%);
if the county council makes a determination to impose rates under this
subsection and section 24 of this chapter.
(p) In addition:
(1) the county economic development income tax may be imposed
at a rate that exceeds by not more than twenty-five hundredths
percent (0.25%) the maximum rate that would otherwise apply
under this section; and
(2) the:
(A) county economic development income tax; and
(B) county option income tax or county adjusted gross income
tax;
may be imposed at combined rates that exceed by not more than
twenty-five hundredths percent (0.25%) the maximum combined
rates that would otherwise apply under this section.
However, the additional rate imposed under this subsection may not
exceed the amount necessary to mitigate the increased ad valorem
property taxes on homesteads (as defined in
IC 6-1.1-20.9-1
) resulting
from the deduction of the assessed value of inventory in the county
under
IC 6-1.1-12-41
or
IC 6-1.1-12-42.
(q) If the county economic development income tax is imposed as
authorized under subsection (p) at a rate that exceeds the maximum
rate that would otherwise apply under this section, the certified
distribution must be used for the purpose provided in section 25(e) or
26 of this chapter to the extent that the certified distribution results
from the difference between:
(1) the actual county economic development tax rate; and
(2) the maximum rate that would otherwise apply under this
section.
(r) This subsection applies only to a county having a population
of more than twenty-five thousand five hundred (25,500) but less
than twenty-six thousand five hundred (26,500). Except as
provided in subsection (p), in addition to the rates permitted by
subsection (b), the:
(1) county economic development income tax may be imposed
at a rate of twenty-five hundredths percent (0.25%); and
(2) county economic development income tax rate plus the
county option income tax rate that are in effect on January 1
of a year may equal up to one and twenty-five hundredths
percent (1.25%);
if the county income tax council makes a determination to impose
rates under this subsection and section 27 of this chapter.
SOURCE: IC 6-3.5-7-12; (03)IN1838.1.2. -->
SECTION 2.
IC 6-3.5-7-12
, AS AMENDED BY P.L.192-2002(ss),
SECTION 122, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 12. (a) Except as provided in
sections 23, 25,
and 26,
and 27 of this chapter, the county auditor shall
distribute in the manner specified in this section the certified
distribution to the county.
(b) Except as provided in subsections (c) and (h) and sections 15
and 25 of this chapter, the amount of the certified distribution that the
county and each city or town in a county is entitled to receive during
May and November of each year equals the product of the following:
(1) The amount of the certified distribution for that month;
multiplied by
(2) A fraction. The numerator of the fraction equals the sum of the
following:
(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, an amount equal to:
(i) the property taxes imposed by the county in 1999 for the
county's welfare fund and welfare administration fund; plus
(ii) after December 31, 2004, the greater of zero (0) or the
difference between the county hospital care for the indigent
property tax levy imposed by the county in 2004, adjusted
each year after 2004 by the statewide average assessed value
growth quotient described in
IC 12-16-14-3
, minus the
current uninsured parents program property tax levy
imposed by the county.
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 an amount equal to the property taxes imposed by the county in
1999 for the county's welfare fund and welfare administration fund, and
after December 31, 2004, the greater of zero (0) or the difference
between the county hospital care for the indigent property tax levy
imposed by the county in 2004, adjusted each year after 2004 by the
statewide average assessed value growth quotient described in
IC 12-16-14-3
, minus the current uninsured parents program property
tax levy imposed by the county.
(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 July 1 of a year
to provide for the distribution of certified distributions under this
subsection instead of a distribution under subsection (b). The following
apply if an ordinance is adopted under this subsection:
(1) The ordinance is effective January 1 of the following year.
(2) Except as provided in sections 25 and 26 of this chapter, the
amount of the certified distribution that the county and each city
and town in the county is entitled to receive during May and
November of each year equals the product of:
(A) the amount of the certified distribution for the month;
multiplied by
(B) a fraction. For a city or town, the numerator of the fraction
equals the population of the city or the town. For a county, the
numerator of the fraction equals the population of the part of
the county that is not located in a city or town. The
denominator of the fraction equals the sum of the population
of all cities and towns located in the county and the population
of the part of the county that is not located in a city or town.
(3) The ordinance may be made irrevocable for the duration of
specified lease rental or debt service payments.
(d) The body imposing the tax may not adopt an ordinance under
subsection (c) if, before the adoption of the proposed ordinance, any of
the following have pledged the county economic development income
tax for any purpose permitted by
IC 5-1-14
or any other statute:
(1) The county.
(2) A city or town in the county.
(3) A commission, a board, a department, or an authority that is
authorized by statute to pledge the county economic development
income tax.
(e) The department of local government finance shall provide each
county auditor with the fractional amount of the certified distribution
that the county and each city or town in the county is entitled to receive
under this section.
(f) Money received by a county, city, or town under this section
shall be deposited in the unit's economic development income tax fund.
(g) Except as provided in subsection (b)(2)(B), in determining the
fractional amount of the certified distribution the county and its cities
and towns are entitled to receive under subsection (b) during a calendar
year, the department of local government finance shall consider only
property taxes imposed on tangible property subject to assessment in
that county.
(h) In a county having a consolidated city, only the consolidated city
is entitled to the certified distribution, subject to the requirements of
sections 15, 25, and 26 of this chapter.
SOURCE: IC 6-3.5-7-13.1; (03)IN1838.1.3. -->
SECTION 3.
IC 6-3.5-7-13.1
, AS AMENDED BY
P.L.192-2002(ss), SECTION 123, IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 13.1.
(a) The fiscal
officer of each county, city, or town for a county in which the county
economic development tax is imposed shall establish an economic
development income tax fund. Except as provided in sections 23, 25,
and 26,
and 27 of this chapter, the revenue received by a county, city,
or town under this chapter shall be deposited in the unit's economic
development income tax fund.
(b) Except as provided in sections 15, 23, 25,
and 26,
and 27 of this
chapter, revenues from the county economic development income tax
may be used as follows:
(1) By a county, city, or town for economic development projects,
for paying, notwithstanding any other law, under a written
agreement all or a part of the interest owed by a private developer
or user on a loan extended by a financial institution or other
lender to the developer or user if the proceeds of the loan are or
are to be used to finance an economic development project, for
the retirement of bonds under section 14 of this chapter for
economic development projects, for leases under section 21 of
this chapter, or for leases or bonds entered into or issued prior to
the date the economic development income tax was imposed if
the purpose of the lease or bonds would have qualified as a
purpose under this chapter at the time the lease was entered into
or the bonds were issued.
(2) By a county, city, or town for:
(A) the construction or acquisition of, or remedial action with
respect to, a capital project for which the unit is empowered to
issue general obligation bonds or establish a fund under any
statute listed in
IC 6-1.1-18.5-9.8
;
(B) the retirement of bonds issued under any provision of
Indiana law for a capital project;
(C) the payment of lease rentals under any statute for a capital
project;
(D) contract payments to a nonprofit corporation whose
primary corporate purpose is to assist government in planning
and implementing economic development projects;
(E) operating expenses of a governmental entity that plans or
implements economic development projects;
(F) to the extent not otherwise allowed under this chapter,
funding substance removal or remedial action in a designated
unit; or
(G) funding of a revolving fund established under
IC 5-1-14-14.
(c) As used in this section, an economic development project is any
project that:
(1) the county, city, or town determines will:
(A) promote significant opportunities for the gainful
employment of its citizens;
(B) attract a major new business enterprise to the unit; or
(C) retain or expand a significant business enterprise within
the unit; and
(2) involves an expenditure for:
(A) the acquisition of land;
(B) interests in land;
(C) site improvements;
(D) infrastructure improvements;
(E) buildings;
(F) structures;
(G) rehabilitation, renovation, and enlargement of buildings
and structures;
(H) machinery;
(I) equipment;
(J) furnishings;
(K) facilities;
(L) administrative expenses associated with such a project,
including contract payments authorized under subsection
(b)(2)(D);
(M) operating expenses authorized under subsection (b)(2)(E);
or
(N) to the extent not otherwise allowed under this chapter,
substance removal or remedial action in a designated unit;
or any combination of these.
SOURCE: IC 6-3.5-7-27; (03)IN1838.1.4. -->
SECTION 4.
IC 6-3.5-7-27
IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 27. (a) This section applies to a county
having a population of more than twenty-five thousand five
hundred (25,500) but less than twenty-six thousand five hundred
(26,500). A county described in this subsection possesses unique
fiscal challenges in financing, renovating, equipping, and operating
the county courthouse because the county consistently has one (1)
of the highest unemployment rates in Indiana.
(b) In addition to actions authorized by section 5 of this chapter,
a county income tax council may, using the procedures set forth in
this chapter, adopt an ordinance to impose an additional county
economic development income tax on the adjusted gross income of
county taxpayers. The ordinance imposing the additional tax must
include a finding that revenues from the additional tax are needed
to pay the costs of:
(1) financing, renovating, equipping, and operating the county
courthouse;
(2) repaying any bonds issued, or leases entered into, for
renovating, equipping, and operating the county courthouse;
and
(3) economic development projects described in the county's
capital improvement plan.
(c) The tax rate imposed under this section may not exceed
twenty-five hundredths percent (0.25%).
(d) If the county income tax council adopts an ordinance to
impose an additional tax under this section, the county treasurer
shall establish a county courthouse revenue fund to be used only
for the purposes described in subsection (b)(1) and (b)(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 (b)(1) and (b)(2)
shall be deposited into the county courthouse revenue fund before
a certified distribution is made under section 12 of this chapter.
The remainder shall be deposited into the economic development
income tax funds of the county's units.
(e) 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.
(f) County economic development income tax revenues derived
from the tax rate imposed under this section that are deposited into
the county courthouse 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.
(g) Notwithstanding section 5 of this chapter, an ordinance may
be adopted under this section at any time. If the ordinance is
adopted before April 1 of a year, a tax rate imposed under this
section takes effect July 1 of that year. If the ordinance is adopted
after March 31 of a year, a tax rate imposed under this section
takes effect on the January 1 immediately following adoption of the
ordinance.
(h) Notwithstanding any other law, funds accumulated from the
county economic development income tax imposed under this
section and deposited into the county courthouse 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. 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.
SOURCE: ; (03)IN1838.1.5. -->
SECTION 5.
An emergency is declared for this act.