YES:
MR. SPEAKER:
Your Committee on Ways and Means , to which was referred Senate Bill 441 ,
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:
housing" means real property that, on an assessment date, is used
to obtain or receives any of the following benefits:
(1) Low income housing credits under Section 42 of the
Internal Revenue Code.
(2) Low interest loans for benefits from the United States
Department of Agriculture Rural Housing Section 515
Program.
(3) Below market, federally insured, or governmental
financing for housing, including tax exempt bonds under
Section 142 of the Internal Revenue Code for qualified
residential rental projects.
(4) A grant or low interest loan under Section 235 or 236 of
the National Housing Act (12 U.S.C. 1715z or 12 U.S.C.
1715z-1) or 42 U.S.C. 1485.
(5) A government rent subsidy for housing.
(6) A government guaranteed loan for a housing project.
(5,000) or less;
(3) four percent (4%) for a township containing all or part of an
incorporated city which has a population of more than five
thousand (5,000) but not exceeding ten thousand (10,000);
(4) three percent (3%) for a township containing all or part of an
incorporated city which has a population of more than ten
thousand (10,000) but not exceeding fifty thousand (50,000);
(5) two percent (2%) for a township containing all or part of an
incorporated city which has a population of more than fifty
thousand (50,000) but not exceeding one hundred fifty thousand
(150,000); or
(6) one percent (1%) for a township containing all or part of an
incorporated city which has a population of more than one
hundred fifty thousand (150,000).
at least the lesser of:
(1) ten (10) owners of real property in a township; or
(2) the number of owners of real property in the township
that represents owners of one percent (1%) of the assessed
value of real property in the township.
(c) The signatures on the petition referred to in subsection (a)
must be verified by the oath of one (1) or more of the signers. And, A
certificate of the county auditor stating that the signers constitute the
required number of resident owners of taxable real property of the
township must accompany the petition.
completed for the March 1, 2002, assessment date. Completion of that
general reassessment in a qualifying county is instead governed by this
section. The only duty of:
(1) a township assessor in a qualifying county; or
(2) a county assessor of a qualifying county;
with respect to that general reassessment is to provide to the
department of local government finance or the department's contractor
under subsection (e) any support and information requested by the
department or the contractor. This subsection expires June 30, 2004.
(e) Subject to section 33 of this chapter, the department of local
government finance shall select and contract with a certified public
accounting firm with expertise in the appraisal of real property to
appraise property for the general reassessment of real property in a
qualifying county to be completed for the March 1, 2002, assessment
date. The department of local government finance may enter into
additional contracts to provide software or other auxiliary services to
be used for the appraisal of property for the general reassessment. The
contract applies for the appraisal of land and improvements with respect
to all classes of real property in the qualifying county. The contract
must include:
(1) a provision requiring the appraisal firm to:
(A) prepare a detailed report of:
(i) expenditures made after July 1, 1999, and before the date
of the report from the qualifying county's reassessment fund
under section 28 of this chapter (repealed); and
(ii) the balance in the reassessment fund as of the date of the
report; and
(B) file the report with:
(i) the legislative body of the qualifying county;
(ii) the prosecuting attorney of the qualifying county;
(iii) the department of local government finance; and
(iv) the attorney general;
(2) a fixed date by which the appraisal firm must complete all
responsibilities under the contract;
(3) subject to subsection (t), a provision requiring the appraisal
firm to use the land values determined for the qualifying county
under section 13.6 of this chapter (before its repeal);
local government finance shall give notice to the taxpayer and the
county assessor, by mail, of the amount of the reassessment. The
notice of reassessment:
(1) is subject to appeal by the taxpayer under section 34 of this
chapter; and
(2) must include a statement of the taxpayer's rights under
sections 33 and 34 of this chapter.
(g) The department of local government finance shall mail the notice
required by subsection (f) within ninety (90) days after the department
receives the report for a parcel from the professional appraisal firm.
This subsection expires June 30, 2004.
(h) The qualifying county shall pay the cost of any contract under
this section which shall be without appropriation from the county
property reassessment fund. A contractor may periodically submit bills
for partial payment of work performed under a contract. However, the
maximum amount that the qualifying county is obligated to pay for all
contracts entered into under subsection (e) for the general reassessment
of real property in the qualifying county to be completed for the March
1, 2002, assessment date is twenty-five million five hundred thousand
dollars ($25,500,000). Notwithstanding any other law, a contractor is
entitled to payment under this subsection for work performed under a
contract if the contractor:
(1) submits, in the form required by IC 5-11-10-1, a fully
itemized, certified bill for the costs under the contract of the work
performed to the department of local government finance for
review;
(2) obtains from the department of local government finance:
(A) approval of the form and amount of the bill; and
(B) a certification that the billed goods and services billed for
payment have been received and comply with the contract; and
(3) files with the county auditor of the qualifying county:
(A) a duplicate copy of the bill submitted to the department of
local government finance;
(B) the proof of approval provided by the department of local
government finance of the form and amount of the bill that
was approved; and
(C) the certification provided by the department of local
government finance that indicates that the goods and services
billed for payment have been received and comply with the
contract.
An approval and a certification under subdivision (2) shall be treated as
conclusively resolving the merits of the claim. Upon receipt of the
documentation described in subdivision (3), the county auditor shall
immediately certify that the bill is true and correct without further audit,
publish the claim as required by IC 36-2-6-3, and submit the claim to
the county executive of the qualifying county. The county executive
shall allow the claim, in full, as approved by the department of local
government finance without further examination of the merits of the
claim in a regular or special session that is held not less than three (3)
days and not more than seven (7) days after completion of the
publication requirements under IC 36-2-6-3. Upon allowance of the
claim by the county executive, the county auditor shall immediately
issue a warrant or check for the full amount of the claim approved by
the department of local government finance. Compliance with this
subsection shall be treated as compliance with section 28.5 of this
chapter, IC 5-11-6-1, IC 5-11-10, and IC 36-2-6. The determination
and payment of a claim in compliance with this subsection is not
subject to remonstrance and appeal. IC 36-2-6-4(f) and IC 36-2-6-9 do
not apply to a claim under this subsection. IC 5-11-10-1.6(d) applies to
a fiscal officer who pays a claim in compliance with this subsection.
This subsection expires June 30, 2004.
(i) Notwithstanding IC 4-13-2, a period of seven (7) days is
permitted for each of the following to review and act under IC 4-13-2
on a contract of the department of local government finance under this
section:
(1) The commissioner of the Indiana department of administration.
(2) The director of the budget agency.
(3) The attorney general.
(4) The governor.
(j) With respect to a general reassessment of real property to be
completed under section 4 of this chapter for an assessment date after
the March 1, 2002, assessment date, the department of local
government finance shall initiate a review with respect to the real
property in a qualifying county or a township in a qualifying county, or
a portion of the real property in a qualifying county or a township in a
qualifying county. The department of local government finance may
contract to have the review performed by an appraisal firm. The
department of local government finance or its contractor shall determine
for the real property under consideration and for the qualifying county
or township the variance between:
(1) the total assessed valuation of the real property within the
qualifying county or township; and
(2) the total assessed valuation that would result if the real
property within the qualifying county or township were valued in
the manner provided by law.
(k) If:
(1) the variance determined under subsection (j) exceeds ten
percent (10%); and
(2) the department of local government finance determines after
holding hearings on the matter that a special reassessment should
be conducted;
the department shall contract for a special reassessment by an appraisal
firm to correct the valuation of the property.
(l) If the variance determined under subsection (j) is ten percent
(10%) or less, the department of local government finance shall
determine whether to correct the valuation of the property under:
(1) sections 9 and 10 of this chapter; or
(2) IC 6-1.1-14-10 and IC 6-1.1-14-11.
(m) The department of local government finance shall give notice by
mail to a taxpayer of a hearing concerning the department's intent to
cause the taxpayer's property to be reassessed under this section. The
time fixed for the hearing must be at least ten (10) days after the day
the notice is mailed. The department of local government finance may
conduct a single hearing under this section with respect to multiple
properties. The notice must state:
(1) the time of the hearing;
(2) the location of the hearing; and
(3) that the purpose of the hearing is to hear taxpayers' comments
and objections with respect to the department of local government
finance's intent to reassess property under this chapter.
(n) If the department of local government finance determines after
the hearing that property should be reassessed under this section, the
department shall:
(1) cause the property to be reassessed under this section;
(2) mail a certified notice of its final determination to the county
auditor of the qualifying county in which the property is located;
and
(3) notify the taxpayer by mail of its final determination.
(o) A reassessment may be made under this section only if the notice
of the final determination under subsection (m) is given to the taxpayer
within the same period prescribed in IC 6-1.1-9-3 or IC 6-1.1-9-4.
(p) If the department of local government finance contracts for a
special reassessment of property under this section, the qualifying
county shall pay the bill, without appropriation, from the county
property reassessment fund. A contractor may periodically submit bills
for partial payment of work performed under a contract.
Notwithstanding any other law, a contractor is entitled to payment
under this subsection for work performed under a contract if the
contractor:
(1) submits, in the form required by IC 5-11-10-1, a fully
itemized, certified bill for the costs under the contract of the work
performed to the department of local government finance for
review;
(2) obtains from the department of local government finance:
(A) approval of the form and amount of the bill; and
(B) a certification that the billed goods and services billed for
payment have been received and comply with the contract; and
(3) files with the county auditor of the qualifying county:
(A) a duplicate copy of the bill submitted to the department of
local government finance;
(B) the proof of approval provided by the department of local
government finance of the form and amount of the bill that
was approved; and
(C) the certification provided by the department of local
government finance that indicates that the goods and services
billed for payment have been received and comply with the
contract.
An approval and a certification under subdivision (2) shall be treated as
conclusively resolving the merits of the claim. Upon receipt of the
documentation described in subdivision (3), the county auditor shall
immediately certify that the bill is true and correct without further audit,
publish the claim as required by IC 36-2-6-3, and submit the claim to
the county executive of the qualifying county. The county executive
shall allow the claim, in full, as approved by the department of local
government finance without further examination of the merits of the
claim in a regular or special session that is held not less than three (3)
days and not more than seven (7) days after completion of the
publication requirements under IC 36-2-6-3. Upon allowance of the
claim by the county executive, the county auditor shall immediately
issue a warrant or check for the full amount of the claim approved by
the department of local government finance. Compliance with this
subsection shall be treated as compliance with section 28.5 of this
chapter, IC 5-11-6-1, IC 5-11-10, and IC 36-2-6. The determination
and payment of a claim in compliance with this subsection is not
subject to remonstrance and appeal. IC 36-2-6-4(f) and IC 36-2-6-9 do
not apply to a claim under this subsection. IC 5-11-10-1.6(d) applies to
a fiscal officer who pays a claim in compliance with this subsection.
(q) A qualifying official (as defined in IC 33-3-5-2.5) shall provide
information requested in writing by the department of local government
finance or the department's contractor under this section not later than
seven (7) days after receipt of the written request from the department
or the contractor. If a qualifying official (as defined in IC 33-3-5-2.5)
fails to provide the requested information within the time permitted in
this subsection, the department of local government finance or the
department's contractor may seek an order of the tax court under
IC 33-3-5-2.5 for production of the information.
(r) The provisions of this section are severable in the manner
provided in IC 1-1-1-8(b).
(s) A contract entered into under subsection (e) is subject to this
subsection. A contractor shall use the land values determined for the
qualifying county under section 13.6 of this chapter (before its repeal)
to the extent that the contractor finds that the land values reflect the
true tax value of land, as determined under the statutes and the rules of
the department of local government finance. If the contractor finds that
the land values determined for the qualifying county under section 13.6
of this chapter (before its repeal) do not reflect the true tax value of
land, the contractor shall determine land values for the qualifying county
that reflect the true tax value of land, as determined under the statutes
and the rules of the department of local government finance. The land
values determined by the contractor shall be used to the same extent as
if the land values had been determined under section 13.6 of this
chapter (before its repeal). The contractor shall notify the county
assessor and the township assessors in the qualifying county of the land
values as modified under this subsection. This subsection expires June
30, 2004.
(t) A contractor acting under a contract under subsection (e) may
notify the department of local government finance if:
(1) the county auditor fails to:
(A) certify the bill;
(B) publish the claim;
(C) submit the claim to the county executive; or
(D) issue a warrant or check;
as required in subsection (h) at the first opportunity the county
auditor is legally permitted to do so;
(2) the county executive fails to allow the claim as required in
subsection (h) at the first opportunity the county executive is
legally permitted to do so; or
(3) a person or entity authorized to act on behalf of the county
takes or fails to take an action, including failure to request an
appropriation, and that action or failure to act delays or halts the
process under this section for payment of a bill submitted by a
contractor under subsection (h).
This subsection expires June 30, 2004.
(u) The department of local government finance, upon receiving
notice under subsection (t) from the contractor, shall:
(1) verify the accuracy of the contractor's assertion in the notice
that:
(A) a failure occurred as described in subsection (t)(1) or
(t)(2); or
(B) a person or entity acted or failed to act as described in
subsection (t)(3); and
(2) provide to the treasurer of state the department of local
government finance's approval under subsection (h)(2)(A) of the
bill with respect to which the contractor gave notice under
subsection (t).
This subsection expires June 30, 2004.
(v) Upon receipt of the approval of the department of local
government finance under subsection (u), the treasurer of state shall
pay the contractor the amount of the bill approved by the department of
local government finance from money in the possession of the state that
would otherwise be available for distribution to the qualifying county,
including distributions from the property tax replacement fund or
distributions of admissions taxes or wagering taxes. This subsection
expires June 30, 2004.
(w) The treasurer of state shall withhold from the part attributable
to the county of the next distribution to the county treasurer under
IC 4-33-12-6, IC 4-33-13-5, IC 6-1.1-21-4(b), or another law the
amount of any payment made by the treasurer of state to the contractor
under subsection (v). Money shall be deducted first from money
payable under IC 6-1.1-21.4(b) and then from all other funds payable
to the qualifying county. This subsection expires June 30, 2004.
(x) Compliance with subsections (t) through (w) shall be treated as
compliance with IC 5-11-10.This subsection expires June 30, 2004.
(y) IC 5-11-10-1.6(d) applies to the treasurer of state with respect
to the payment made in compliance with subsections (t) through (w).
This subsection and subsections (t) through (x) shall be interpreted
liberally so that the state shall, to the extent legally valid, ensure that the
contractual obligations of a county under this section are paid. Nothing
in this subsection or subsections (t) through (x) shall be construed to
create a debt of the state. This subsection expires June 30, 2004.
(z) This section expires December 31, 2006.".
after February 28, 2005, 29, 2004, except as provided in subsection (c)
and IC 6-1.1-6.9-1, the true tax value of real property regularly used
to rent or otherwise furnish residential accommodations for periods of
thirty (30) days or more and that has more than four (4) rental units is
the lowest valuation determined by applying each of the following
appraisal approaches:
(1) Cost approach that includes an estimated reproduction or
replacement cost of buildings and land improvements as of the
date of valuation together with estimates of the losses in value that
have taken place due to wear and tear, design and plan, or
neighborhood influences.
(2) Sales comparison approach, using data for generally
comparable property.
(3) Income capitalization approach, using an applicable
capitalization method and appropriate capitalization rates that are
developed and used in computations that lead to an indication of
value commensurate with the risks for the subject property use.
(b) The gross rent multiplier method is the preferred method of
valuing:
(1) real property that has at least one (1) and not more than four
(4) rental units; and
(2) mobile homes assessed under IC 6-1.1-7.
(c) A township assessor is not required to appraise real property
referred to in subsection (a) using the three (3) appraisal approaches
listed in subsection (a) if the township assessor and the taxpayer agree
before notice of the assessment is given to the taxpayer under section
22 of this chapter to the determination of the true tax value of the
property by the assessor using one (1) of those appraisal approaches.
(d) To carry out this section, the department of local government
finance may adopt rules for assessors to use in gathering and
processing information for the application of the income capitalization
method and the gross rent multiplier method. A taxpayer must verify
under penalties for perjury any information provided to the assessor for
use in the application of either method.
property regardless of whether the credits or other subsidies are
made available, directly or indirectly, to compensate the owner for
the rental of low income housing at a rate that is less than the fair
market rental rate for the property.
decreases, in the assessed values which are necessary in order to
equalize these values in and between the various townships of the
county. In addition, the county assessor shall determine the percent to
be added to or deducted from the assessed values in order to make a
just, equitable, and uniform equalization of assessments in and between
the townships of the county.
at least ten (10) days after the day the notice is mailed, when a hearing
on the assessment will be held. In addition to the notice to the county
auditor, the department of local government finance shall give the
notice, if any, required under section 9(a) of this chapter.
subdivision over the preceding three (3) budget years, excluding
years in which a general reassessment occurs, determined
according to procedures established by the department of local
government finance; and
(5) any other information at the disposal of the county auditor that
might affect the assessed value used in the budget adoption
process.
(b) The estimate of taxes to be distributed shall be based on:
(1) the abstract of taxes levied and collectible for the current
calendar year, less any taxes previously distributed for the
calendar year; and
(2) any other information at the disposal of the county auditor
which might affect the estimate.
(c) The fiscal officer of each political subdivision shall present the
county auditor's statement to the proper officers of the political
subdivision.
be submitted at least fourteen (14) days before the city or town fiscal
body is required to hold budget approval hearings under this chapter.
(d) This subsection does not apply to a public library. If
subsection (c) does not apply, the governing body of the taxing unit
shall submit its proposed budget and property tax levy to the county
fiscal body in the county where the taxing unit has the most assessed
valuation. The proposed budget and levy shall be submitted at least
fourteen (14) days before the county fiscal body is required to hold
budget approval hearings under this chapter.
(e) This subsection applies to a taxing unit that is a public
library. The library board of a public library subject to this section
shall submit its proposed budget and property tax levy to the fiscal
body designated under IC 20-14-14.
(e) (f) The fiscal body of the city, town, or county (whichever
applies) or the fiscal body designated under IC 20-14-14 (in the
case of a public library) shall review each budget and proposed tax
levy and adopt a final budget and tax levy for the taxing unit. The fiscal
body may reduce or modify but not increase the proposed budget or tax
levy.".
exceeds the following:
STEP ONE: Determine the result of:
(A) the school corporation's adjusted target property tax rate;
minus
(B) the school corporation's previous year property tax rate.
STEP TWO: If the school corporation's adjusted target property
tax rate:
(A) exceeds the school corporation's previous year property
tax rate, perform the calculation under STEP THREE and not
under STEP FOUR;
(B) is less than the school corporation's previous year property
tax rate, perform the calculation under STEP FOUR and not
under STEP THREE; or
(C) equals the school corporation's previous year property tax
rate, determine the levy resulting from using the school
corporation's adjusted target property tax rate and do not
perform the calculation under STEP THREE or STEP FOUR.
STEP THREE: Determine the levy resulting from using the school
corporation's previous year property tax rate after increasing the
rate by the lesser of:
(A) the STEP ONE result; or
(B) five cents ($0.05).
STEP FOUR: Determine the levy resulting from using the school
corporation's previous year property tax rate after reducing the
rate by the lesser of:
(A) the absolute value of the STEP ONE result; or
(B) five cents ($0.05).
STEP FIVE: Determine the result of:
(A) the STEP TWO (C), STEP THREE, or STEP FOUR result,
whichever applies; plus
(B) an amount equal to the annual decrease in federal aid to
impacted areas from the year preceding the ensuing calendar
year by three (3) years to the year preceding the ensuing
calendar year by two (2) years.
The maximum levy is to include the portion of any excessive levy
and the levy for new facilities.
STEP SIX: Determine the result of:
by
(B) the school corporation's 2002 assessed valuation.
STEP TWO: Determine the greater of zero (0) or the difference
between:
(A) the STEP ONE amount; minus
(B) one (1).
STEP THREE: Determine the lesser of eleven-hundredths (0.11)
or the product of:
(A) the STEP TWO amount; multiplied by
(B) eleven-hundredths (0.11).
STEP FOUR: Determine the sum of:
(A) the STEP THREE amount; plus
(B) one (1).
STEP FIVE: Determine the product of:
(A) the STEP FOUR amount; multiplied by
(B) the school corporation's general fund ad valorem property
tax levy for calendar year 2003.
STEP SIX: Determine the lesser of:
(A) the STEP FIVE amount; or
(B) the levy resulting from using the school corporation's
previous year property tax rate after increasing the rate by five
cents ($0.05).
STEP SEVEN: Determine the result of:
(A) the STEP SIX amount; plus
(B) an amount equal to the annual decrease in federal aid to
impacted areas from the year preceding the ensuing calendar
year by three (3) years to the year preceding the ensuing
calendar year by two (2) years.
The maximum levy is to include the part of any excessive levy and
the levy for new facilities.
STEP EIGHT: Determine the result of:
(A) the STEP SEVEN result; plus
(B) the product of:
(i) the weighted average of the amounts determined under
IC 21-3-1.7-6.7(e) STEP NINE for all charter schools
attended by students who have legal settlement in the school
corporation; multiplied by
a special fund under IC 6-1.1-39-5.
(b) Except as provided in subsection (e), between March 1 and
August 31 of each year, the department shall distribute to each county
treasurer from the property tax replacement fund one-half (1/2) of the
estimated distribution for that year for the county. Between September
1 and December 15 of that year, the department shall distribute to each
county treasurer from the property tax replacement fund the remaining
one-half (1/2) of each estimated distribution for that year. The amount
of the distribution for each of these periods shall be according to a
schedule determined by the property tax replacement fund board under
section 10 of this chapter. The estimated distribution for each county
may be adjusted from time to time by the department to reflect any
changes in the total county tax levy upon which the estimated
distribution is based.
(c) On or before December 31 of each year or as soon thereafter as
possible, the department shall make a final determination of the amount
which should be distributed from the property tax replacement fund to
each county for that calendar year. This determination shall be known
as the final determination of distribution. The department shall distribute
to the county treasurer or receive back from the county treasurer any
deficit or excess, as the case may be, between the sum of the
distributions made for that calendar year based on the estimated
distribution and the final determination of distribution. The final
determination of distribution shall be based on the auditor's abstract filed
with the auditor of state, adjusted for postabstract adjustments included
in the December settlement sheet for the year, and such additional
information as the department may require.
(d) All distributions provided for in this section shall be made on
warrants issued by the auditor of state drawn on the treasurer of state.
If the amounts allocated by the department from the property tax
replacement fund exceed in the aggregate the balance of money in the
fund, then the amount of the deficiency shall be transferred from the
state general fund to the property tax replacement fund, and the auditor
of state shall issue a warrant to the treasurer of state ordering the
payment of that amount. However, any amount transferred under this
section from the general fund to the property tax replacement fund
shall, as soon as funds are available in the property tax replacement
fund, be retransferred from the property tax replacement fund to the
state general fund, and the auditor of state shall issue a warrant to the
treasurer of state ordering the replacement of that amount.
(e) Except as provided in subsection (i), the department auditor of
state shall not distribute to a county treasurer two percent (2%) of
the money otherwise distributable under subsection (b), subsection
(c), and section 10 of this chapter the money attributable to the county's
property reassessment fund if:
(1) by the date the distribution is scheduled to be made, (1) 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; or
(2) by the deadline under IC 36-2-9-20, the county auditor has not
transmitted data as required under that section; or
(2) (3) the county assessor has not forwarded to the department
of 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).
The auditor of state shall consider the provision of information
referred to in this subsection to be untimely if the department
notifies the auditor of state in writing that information provided
is inaccurate, incomplete, or, with respect to information referred
to in subdivisions (1) and (2), not in the form required by the
department of local government finance. The withholding under
this subsection of two percent (2%) of money otherwise
distributable under section 10 of this chapter applies separately to
each distribution referred to in section 10(b) of this chapter.
(f) Except as provided in subsection (i), if the elected township
assessors in the county, the elected township assessors and the county
assessor, or the county assessor has not transmitted to the department
of local government finance by October 1 of the year in which the
distribution is scheduled to be made the data for all townships in the
county required to be transmitted under IC 6-1.1-4-25(b), the state
board or the department auditor of state shall not distribute to the
county treasurer two percent (2%) of the money otherwise
distributable to the county treasurer under subsection subsections
(b) and (c) and section 10 of this chapter. a part of the money
attributable to the county's property reassessment fund. The portion not
distributed is the amount that bears the same proportion to the total
potential distribution as the number of townships in the county for
which data was not transmitted by August 1 October 1 as described in
this section bears to the total number of townships in the county.
(g) Money not distributed under subsection (e) for the reasons stated
in subsection (e)(1), and (e)(2), and (e)(3) shall be distributed to the
county when:
(1) the county auditor sends to the department of local
government finance the certified statement required to be sent
under IC 6-1.1-17-1; and
(2) the county auditor transmits data as required under
IC 36-2-9-20; and
(3) the county assessor forwards to the department of local
government finance the approved exemption applications required
to be forwarded under IC 6-1.1-11-8(a);
with respect to which the failure to send, transmit, or forward resulted
in the withholding of the distribution under subsection (e).
(h) Money not distributed under subsection (f) shall be distributed
to the county when the elected township assessors in the county, the
elected township assessors and the county assessor, or the county
assessor transmits to the department of local government finance the
data required to be transmitted under IC 6-1.1-4-25(b) with respect to
which the failure to transmit resulted in the withholding of the
distribution under subsection (f).
(i) The restrictions on distributions under subsections (e) and (f) do
not apply if the department of local government finance determines that:
(1) the failure of:
(A) a county auditor to send a certified statement; or
(B) a county assessor to forward copies of all approved
exemption applications;
as described in subsection (e); or
(2) the failure of an official to transmit data as described in
subsection (f);
is justified by unusual circumstances.
CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 5.7. (a) The following definitions apply
throughout this section:
(1) "General reassessment" refers to a general reassessment
of real property under IC 6-1.1-4-4.
(2) "Homestead" has the meaning set forth in
IC 6-1.1-20.9-1(2).
(3) "Household income" means the combined adjusted gross
income of the qualifying individual and the individual's
spouse.
(4) "Net property tax bill" means the amount of property
taxes currently due and payable in a particular calendar year
after the application of all deductions and credits, except for
the credit provided by this section, as evidenced by the tax
statements referred to in IC 6-1.1-22-8.
(5) "Qualifying homestead" means a homestead for which:
(A) the amount of the net property tax bill for the tax
liability referred to in subdivision (6)(B) is at least two
hundred percent (200%) of the amount of the net
property tax bill for the tax liability referred to in
subdivision (6)(A); and
(B) the difference between:
(i) the assessed value on which the tax liability referred
to in subdivision (6)(A) is based; and
(ii) the assessed value on which the tax liability referred
to in subdivision (6)(B) is based;
is attributable only to the general reassessment and not
to any other factor that affects the assessed value.
(6) "Qualifying individual" means an individual:
(A) who is liable for the payment of property taxes on a
homestead for property taxes first due and payable in
2002;
(B) who is liable for the payment of property taxes on the
homestead for property taxes first due and payable in
2004: and
(C) whose adjusted gross income for the qualifying
individual's most recent taxable year that ends before the
date on which the claim is filed under subsection (f) does
not exceed forty thousand dollars ($40,000).
(b) In a county in which the county adjusted gross income tax
is in effect on January 1, 2004, the county fiscal body may adopt
an ordinance before May 1, 2004, to authorize the allowance of the
credit under this section for property taxes first due and payable
in 2005, property taxes first due and payable in 2006, or both. In
a county in which the county adjusted gross income tax is in effect
on January 1, 2005, the county fiscal body may adopt an ordinance
before April 1, 2005, to authorize the allowance of the credit under
this section for property taxes first due and payable in 2006. An
ordinance under this subsection to authorize the allowance of the
credit under this section is valid only if the county fiscal body
concurrently adopts an ordinance under IC 6-3.5-1.1-3.8. Upon
adoption of an ordinance to authorize the allowance of the credit
under this section, the county fiscal body shall immediately send
a certified copy of the ordinance to:
(1) the county auditor; and
(2) the department of state revenue.
(c) In a county in which the county option income tax is in
effect on January 1, 2004, the county income tax council may
adopt an ordinance before May 1, 2004, to authorize the allowance
of the credit under this section for property taxes first due and
payable in 2005, property taxes first due and payable in 2006, or
both. In a county in which the county option income tax is in
effect on January 1, 2005, the county income tax council may
adopt an ordinance before April 1, 2005, to authorize the
allowance of the credit under this section for property taxes first
due and payable in 2006. An ordinance under this subsection to
authorize the allowance of the credit under this section is valid
only if the county income tax council concurrently adopts an
ordinance under IC 6-3.5-6-9.7. Upon adoption of an ordinance to
authorize the allowance of the credit under this section, the
county auditor shall immediately send a certified copy of the
ordinance to the department of state revenue.
(d) In a county in which a credit is authorized under subsection
(b) or (c), a qualifying individual may receive a credit as provided
in subsections (e) through (i) against the net property tax bill with
respect to the individual's qualifying homestead for property taxes
first due and payable in the year or years specified in the
authorizing ordinance. If the qualifying individual resides in the
qualifying homestead with the individual's spouse, those
individuals are together entitled to one (1) credit under this
section for the qualifying homestead.
(e) The amount of the credit for property taxes first due and
payable in:
(1) 2005 is one hundred percent (100%); and
(2) 2006 is fifty percent (50%);
of the amount by which the tax liability referred to in subsection
(a)(6)(B) exceeds the tax liability referred to in subsection
(a)(6)(A).
(f) An individual or an individual and the individual's spouse
who desire to claim the credit provided by this section must file a
certified statement in duplicate, on forms prescribed by the
department of local government finance, with the auditor of the
county in which the qualifying homestead is located. With respect
to real property, the statement must be filed during the twelve
(12) months preceding May 11 of the year before the year for
which the individual wishes to obtain the credit under this section.
For a mobile home that is not assessed as real property or a
manufactured home that is not assessed as real property, the
statement must be filed during the twelve (12) months preceding
March 2 of the year for which the individual wishes to obtain the
credit under this section. The statement must contain the
following information:
(1) The full name or names and complete address of the
qualifying individual or the qualifying individual and the
individual's spouse.
(2) A description of the qualifying homestead.
(3) The amount of:
(A) the qualifying individual's adjusted gross income
referred to in subsection (a)(6)(C); or
(B) the household income of the qualifying individual and
the individual's spouse.
(4) The name of any other county and township in which the
qualifying individual or the individual's spouse owns or is
buying on contract:
(A) real property; or
(B) a:
(i) mobile home; or
(ii) manufactured home;
that is not assessed as real property.
(5) The record number and page where the contract or
memorandum of the contract is recorded if the qualifying
homestead is under contract purchase.
(6) Any other information required by the department of
local government finance.
(g) The auditor of a county with whom a statement is filed
under subsection (f) shall immediately prepare and transmit a
copy of the statement to the auditor of any other county if the
qualifying individual who claims the credit or the qualifying
individual's spouse owns or is buying property located in the other
county as described in subsection (f)(4). The auditor of the other
county described in subsection (f)(4) shall note on the copy of the
statement whether a credit has been claimed under this section
for a qualifying homestead located in the auditor's county. The
auditor shall then return the copy to the auditor of the first
county.
(h) If a proper statement is filed under subsection (f), the
county auditor shall allow the credit and shall apply the credit
equally against each installment of property taxes. The county
auditor shall include the amount of the credit applied against each
installment of property taxes on the tax statement required under
IC 6-1.1-22-8.
(i) If an individual knowingly or intentionally files a false
statement under this section, the individual must pay the amount
of any credit the individual received because of the false
statement plus interest at the rate of ten percent (10%) per year
to the county auditor for distribution to the taxing units of the
county in the same proportion that property taxes are distributed.
individual wishes to obtain the credit under this section.
(7) "Qualifying individual" means an individual who is liable
for the payment of property taxes on a qualifying homestead.
(8) "Taxable year" has the meaning set forth in IC 6-3-1-16.
(b) In a county in which the county adjusted gross income tax
is in effect on January 1, the county fiscal body may adopt an
ordinance before May 1, 2004, or before April 1 of any following
year to authorize the allowance of the credit under this section for
property taxes first due and payable in the immediately following
calendar year. An ordinance under this subsection to authorize
the allowance of the credit under this section is valid only if the
county fiscal body concurrently adopts an ordinance under
IC 6-3.5-1.1-3.8. Upon adoption of an ordinance to authorize the
allowance of the credit under this section, the county fiscal body
shall immediately send a certified copy of the ordinance to:
(1) the county auditor; and
(2) the department of state revenue.
(c) In a county in which the county option income tax is in
effect on January 1, the county income tax council may adopt an
ordinance before May 1, 2004, or before April 1 of any following
year to authorize the allowance of the credit under this section for
property taxes first due and payable in the immediately following
calendar year. An ordinance under this subsection to authorize
the allowance of the credit under this section is valid only if the
county income tax council concurrently adopts an ordinance under
IC 6-3.5-6-9.7. Upon adoption of an ordinance to authorize the
allowance of the credit under this section, the county auditor shall
immediately send a certified copy of the ordinance to the
department of state revenue.
(d) Except as provided in subsection (e), in a county in which a
credit is authorized under subsection (b) or (c), each year a
qualifying individual may receive a credit against the net property
tax bill on the individual's qualifying homestead. The amount of
the credit to which a qualifying individual is entitled equals the
lesser of fifty percent (50%) of the amount of the net property tax
bill on the individual's qualifying homestead or the remainder of:
(1) the amount of the net property tax bill without the
application of the credit provided by this section; minus
(2) the following percentage of the qualifying individual's
adjusted gross income for the qualifying individual's most
recent taxable year that ends before the date on which the
claim is filed under subsection (f):
(A) Ten percent (10%) if the adjusted gross income is less
than twenty thousand dollars ($20,000).
(B) Four percent (4%) if the adjusted gross income is at
least twenty thousand dollars ($20,000) but less than fifty
thousand dollars ($50,000).
(e) If the qualifying individual resides in the qualifying
homestead with the individual's spouse, those individuals are
together entitled to one (1) credit under this section for the
qualifying homestead. The amount of the credit is determined
under subsection (b), except that the household income is
substituted for the qualifying individual's adjusted gross income.
(f) An individual or an individual and the individual's spouse
who desire to claim the credit provided by this section must file a
certified statement in duplicate on forms prescribed by the
department of local government finance with the auditor of the
county in which the qualifying homestead is located. With respect
to real property, the statement must be filed during the twelve
(12) months preceding May 11 of the year before the year for
which the individual wishes to obtain the credit under this section.
For a mobile home that is not assessed as real property or a
manufactured home that is not assessed as real property, the
statement must be filed during the twelve (12) months preceding
March 2 of the year for which the individual wishes to obtain the
credit under this section. The statement must contain the
following information:
(1) The full name or names and complete address of the
qualifying individual or the qualifying individual and the
individual's spouse.
(2) A description of the qualifying homestead.
(3) The amount of:
(A) the qualifying individual's adjusted gross income
referred to in subsection (d)(2); or
(B) if subsection (e) applies, the household income
referred to in subsection (e) of the qualifying individual
and the individual's spouse.
(4) The name of any other county and township in which the
qualifying individual or the individual's spouse owns or is
buying on contract:
(A) real property; or
(B) a:
(i) mobile home; or
(ii) manufactured home;
that is not assessed as real property.
(5) The record number and page where the contract or
memorandum of the contract is recorded if the qualifying
homestead is under contract purchase.
(6) Any other information required by the department of
local government finance.
(g) The auditor of a county with whom a statement is filed
under subsection (f) shall immediately prepare and transmit a
copy of the statement to the auditor of any other county if the
qualifying individual who claims the credit or the qualifying
individual's spouse owns or is buying property located in the other
county as described in subsection (f)(4). The auditor of the other
county described in subsection (f)(4) shall note on the copy of the
statement whether a credit has been claimed under this section
for a qualifying homestead located in the auditor's county. The
auditor shall then return the copy to the auditor of the first
county.
(h) If a proper statement is filed under subsection (f), the
county auditor shall allow the credit and shall apply the credit
equally against each installment of property taxes. The county
auditor shall include the amount of the credit applied against each
installment of property taxes on the tax statement required under
IC 6-1.1-22-8.
(i) If an individual knowingly or intentionally files a false
statement under this section, the individual must pay the amount
of any credit the individual received because of the false
statement plus interest at the rate of ten percent (10%) per year
to the county auditor for distribution to the taxing units of the
county in the same proportion that property taxes are distributed.
of the taxes to which the credit applied.".
county council elects to decrease the county adjusted gross income tax,
the county council may decrease the county adjusted gross income tax
rate in increments of one-tenth of one percent (0.1%).
(c) To impose the county adjusted gross income tax, the county
council must, after January 1 but before April 1 of a year, adopt an
ordinance. The ordinance must substantially state the following:
"The ________ County Council imposes the county adjusted gross
income tax on the county taxpayers of ________ County. The
county adjusted gross income tax is imposed at a rate of _____
percent (_____%) on the resident county taxpayers of the county
and one-fourth of one percent (0.25%) on the nonresident county
taxpayers of the county. This tax takes effect July 1 of this year.".
(d) Any ordinance adopted under this section takes effect July 1 of
the year the ordinance is adopted.
(e) 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.
(f) If the county adjusted gross income tax had previously been
adopted by a county under IC 6-3.5-1 (before its repeal on March 15,
1983) and that tax was in effect at the time of the enactment of this
chapter, then the county adjusted gross income tax continues in that
county at the rates in effect at the time of enactment until the rates are
modified or the tax is rescinded in the manner prescribed by this
chapter. If a county's adjusted gross income tax is continued under this
subsection, then the tax shall be treated as if it had been imposed under
this chapter and is subject to rescission or reduction as authorized in
this chapter.
(g) The county council may adopt an ordinance to decrease the
county adjusted gross income tax rate by an increment up to
one-fourth of one percent (0.25%) after January 1 but before
April 1 of the calendar year that immediately precedes the first
calendar year in which the allowance of credits under
IC 6-1.1-21-5.7, IC 6-1.1-21-5.8, or both is discontinued.
income tax rate imposed upon the resident county taxpayers of the
county. To decrease the rate, the county council must, after January 1
but before April 1 of a year, adopt an ordinance. The ordinance must
substantially state the following:
"The ________ County Council decreases the county adjusted
gross income tax rate imposed upon the resident county taxpayers
of the county from _____ percent (___%) to _____ percent
(___%). This tax rate decrease takes effect July 1 of this year.".
(b) A county council may not decrease the county adjusted gross
income tax rate if the county or any commission, board, department, or
authority that is authorized by statute to pledge the county adjusted
gross income tax has pledged the county adjusted gross income tax for
any purpose permitted by IC 5-1-14 or any other statute.
(c) Any ordinance adopted under this section takes effect July 1 of
the year the ordinance is adopted.
(d) 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.
(e) Notwithstanding IC 6-3.5-7, and except as provided in
subsection (f), a county council that decreases the county adjusted
gross income tax rate in a year may not in the same year adopt or
increase the county economic development income tax under
IC 6-3.5-7.
(f) This subsection applies only to a county having a population of
more than one hundred ten thousand (110,000) but less than one
hundred fifteen thousand (115,000). The county council may adopt or
increase the county economic development income tax rate under
IC 6-3.5-7 in the same year that the county council decreases the
county adjusted gross income tax rate if the county economic
development income tax rate plus the county adjusted gross income tax
rate in effect after the county council decreases the county adjusted
gross income tax rate is less than the county adjusted gross income tax
rate in effect before the adoption of an ordinance under this section
decreasing the rate of the county adjusted gross income tax.
(g) A county council may not decrease the county adjusted
gross income tax rate in a calendar year to a rate that is
insufficient to fund credits under IC 6-1.1-21-5.7, IC 6-1.1-21-5.8,
or both that are in effect for the immediately following calendar
year as provided in section 3.8 of this chapter.
reviewing the recommendation of the budget agency, shall 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 under subsections (c), (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 shall certify an amount less than the amount
determined under subsection (b) if the department, after reviewing the
recommendation of 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 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 or
3.8 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 or 3.8 of this chapter is initially collected.
and treated for the calendar year when received by the civil taxing unit
or school corporation as a levy excess subject to IC 6-1.1-18.5-17 or
IC 6-1.1-19-1.7. Certified distributions made to the county treasurer for
calendar years following the eighteen (18) month period described in
this subsection shall be made as provided in subsection (a).
(c) Except for:
(1) revenue that must be used to pay the costs of operating a jail
and juvenile detention center under section 2.5(d) of this chapter;
(2) revenue that must be used to pay the costs of:
(A) financing, constructing, acquiring, improving, renovating,
or equipping facilities and buildings;
(B) debt service on bonds; or
(C) lease rentals;
under section 2.8 of this chapter;
(3) 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;
(4) 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; or
(5) 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;
distributions made to a county treasurer under subsections (a) and (b)
shall be treated as though they were property taxes that were due and
payable during that same calendar year. Except as provided by
subsection (b), the certified distribution shall be distributed and used by
the taxing units and school corporations as provided in sections 11
through 15 of this chapter.
(d) 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.
(e) The county auditor shall retain from the payments of the
county's certified distribution an amount equal to the revenue
lost, if any, due to the allowance of credits under IC 6-1.1-21-5.7,
IC 6-1.1-21-5.8, or both within the county as described in section
3.8 of this chapter. This money shall be distributed to the civil
taxing units and school corporations of the county as though the
money were derived from property tax collections and in such a
manner that no civil taxing unit or school corporation shall suffer
a net revenue loss due to that allowance.
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.
federal revenue sharing funds and certified shares received by
it during that the immediately preceding calendar year to the
extent that they are were used to reduce its property tax levy
below the limit imposed by IC 6-1.1-18.5 for that same
calendar year.
(B) The denominator of the fraction equals the sum of the total
property taxes being that were certified to be collected by all
civil taxing units and school corporations in the immediately
preceding calendar year, as provided in the approved
abstract for the immediately preceding calendar year, plus
the amount of federal revenue sharing funds and certified
shares received by all civil taxing units in the county to the
extent that they are were used to reduce the civil taxing units'
property tax levies below the limits imposed by IC 6-1.1-18.5
for that same 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. 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) during that calendar year. The county auditor
shall also certify these distributions to the county treasurer.
discharge governmental services or functions on behalf of or
ordinarily attributable to the civil taxing unit; plus
(3) the amount of federal revenue sharing funds and certified
shares that were used by the civil taxing unit (or any special taxing
district, authority, board, or other entity formed to discharge
governmental services or functions on behalf of or ordinarily
attributable to the civil taxing unit) to reduce its ad valorem
property tax levies below the limits imposed by IC 6-1.1-18.5;
plus
(4) in the case of a county, an amount equal to the property taxes
imposed by the county in 1999 for the county's welfare fund and
welfare administration fund.
(b) The part of a county's certified distribution that is to be used as
certified shares shall be allocated only among the county's civil taxing
units. Each civil taxing unit of a county is entitled to receive a
percentage of the certified shares to be distributed in the county equal
to the ratio of its attributed levy to the total attributed levies of all civil
taxing units of the county.
(c) The local government tax control board established by
IC 6-1.1-18.5-11 shall determine the attributed levies of civil taxing
units that are entitled to receive certified shares during a calendar year.
If the ad valorem property tax levy of any special taxing district,
authority, board, or other entity is attributed to another civil taxing unit
under subsection (b)(2), then the special taxing district, authority,
board, or other entity shall not be treated as having an attributed levy of
its own. The local government tax control board shall certify the
attributed levy amounts to the appropriate county auditor. The county
auditor shall then allocate the certified shares among the civil taxing
units of the auditor's county.
(d) Certified shares received by a civil taxing unit shall be treated as
additional revenue for the purpose of fixing its budget for the calendar
year during which the certified shares will be received. The certified
shares may be allocated to or appropriated for any purpose, including
property tax relief or a transfer of funds to another civil taxing unit
whose levy was attributed to the civil taxing unit in the determination of
its attributed levy.
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 2. (a) A county income tax council is
established for each county in Indiana. The membership of each
county's county income tax council consists of the fiscal body of the
county and the fiscal body of each city or town that lies either partially
or entirely within that county.
(b) Using procedures described in this chapter, a county income tax
council may adopt ordinances to:
(1) impose the county option income tax in its county;
(2) subject to section 12 of this chapter, rescind the county option
income tax in its county;
(3) increase the county option income tax rate for the county;
(4) freeze the county option income tax rate for its county;
(5) increase the homestead credit in its county; or
(6) subject to section 12.5 of this chapter, decrease the county
option income tax rate for the county; or
(7) impose a county option income tax rate under section 9.7
of this chapter.
(c) An ordinance adopted in a particular year under this chapter to
impose or rescind the county option income tax or to increase its tax
rate is effective July 1 of that year.
that same year the auditor of the county received and distributed to the
members of the county income tax council a proposed ordinance whose
passage would have substantially the same effect.
to __________ percent (___ %). This ordinance takes effect July
1 of this year.".
(c) A county income tax council may not decrease the county option
income tax if the county or any commission, board, department, or
authority that is authorized by statute to pledge the county option
income tax has pledged the county option income tax for any purpose
permitted by IC 5-1-14 or any other statute.
(d) An ordinance adopted under this subsection takes effect July 1
of the year in which the ordinance is adopted.
(e) The county auditor shall record the votes taken on an ordinance
under this subsection and shall send a certified copy of the ordinance
to the department by certified mail not more than thirty (30) days after
the ordinance is adopted.
(f) Notwithstanding IC 6-3.5-7, a county income tax council that
decreases the county option income tax in a year may not in the same
year adopt or increase the county economic development income tax
under IC 6-3.5-7.
(g) A county income tax council may not decrease the county
option income tax rate in a calendar year to a rate that is
insufficient to fund credits under IC 6-1.1-21-5.7, IC 6-1.1-21-5.8,
or both that are in effect for the immediately following calendar
year as provided in section 9.7 of this chapter.
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.
(g) 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.
(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.
(i) 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
9.7 of this chapter beginning not later than the sixth month after
the month in which additional revenue from the tax authorized
under section 9.7 of this chapter is initially collected.
in which the month falls, as provided in the approved abstract
for the immediately preceding calendar year, plus an amount
equal to the property taxes imposed by the county in 1999 for the
county's welfare fund and welfare administration fund.
(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 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.
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
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 described in section 27
of this chapter. 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 council makes a determination to impose rates under this
subsection and section 27 of this chapter.
(r) (s) 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%) if the county has imposed the county adjusted
gross income tax under IC 6-3.5-1.1-3.3.
(t) Limitations in this section on the combined county adjusted
gross income tax and county option income tax rate do not apply
to the imposition of:
(1) a county adjusted gross income tax rate under
IC 6-3.5-1.1-3.8; or
(2) a county option income tax rate under IC 6-3.5-6-9.7.
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.
required to be forwarded before August 2, 2003, under
IC 6-1.1-11-8(a);
(3) the county auditor does not send to the department a
certified statement required to be sent before August 2,
2003, under IC 6-1.1-17-1 (as in effect before the
amendments under this act); or
(4) the county auditor does not transmit to the department
data required to be transmitted before March 1, 2003, under
IC 36-2-9-20 (as in effect before the amendments under this
act).
(c) The amount of money the auditor of state shall not
distribute under subsection (b) equals the product of:
(1) two percent (2%); multiplied by
(2) the combined amounts of the distributions for March,
April, and July of 2004, referred to in IC 6-1.1-21-10(b).
(d) Except as provided in subsection (g), the auditor of state
shall not distribute to a county treasurer two percent (2%) of the
money otherwise distributable after July 2004 under
IC 6-1.1-21-4, as amended by this act, and IC 6-1.1-21-10 if before
the date of distribution the local officials referred to in subsection
(b) have not provided all the data and information referred to in
subsection (b). The withholding under this subsection applies
separately to each distribution referred to in IC 6-1.1-21-10(b).
(e) Amounts withheld from distribution to the county treasurer
under this SECTION are in addition to any amounts withheld from
distribution under IC 6-1.1-21-4(e) or IC 6-1.1-21-4(f), both as
amended by this act, before deadlines in 2004 established in those
sections for failure to provide data or information.
(f) The auditor of state shall consider the provision of
information referred to in subsection (b) to be untimely if the
department notifies the auditor of state in writing that
information provided is inaccurate, incomplete, or, with respect to
information referred to in subsection (b)(2), not in the form
required by the department.
(g) The restrictions on distributions under subsection (b) do not
apply if the department determines that the failure to provide
information as referred to in subsection (b) is justified by unusual
circumstances.
(h) When local officials provide the data and information
referred to in subsection (b), money withheld under subsection (b)
shall be distributed under IC 6-1.1-21-4(g) and IC 6-1.1-21-4(h),
both as amended by this act.
(i) This SECTION expires January 1, 2006.
of this SECTION:
(1) "department" refers to the department of local
government finance;
(2) "levy" refers to the general fund ad valorem property tax
levy;
(3) "municipality" has the meaning set forth in IC 36-1-2-11;
and
(4) "rate" refers to the general fund ad valorem property tax
rate.
(b) This SECTION applies to a municipality that:
(1) in 2002 received:
(A) a certified distribution of county option income tax
revenue that exceeded the estimated collection of revenue
determined under IC 6-3.5-6-17(c), as in effect on January
1, 2002; or
(B) a supplemental county option income tax revenue
distribution under IC 6-3.5-6-17.3; and
(2) imposed a levy for taxes first due and payable in 2002
greater than the levy of the municipality for taxes first due
and payable in 2003.
(c) A municipality may petition the department before May 1,
2004, to increase the levy of the municipality for taxes first due
and payable in 2004.
(d) If at the time the department receives a petition under
subsection (c) the department has certified the levy and the rate
of the municipality under IC 6-1.1-17-16 for taxes first due and
payable in 2004, the department shall recertify for taxes first due
and payable in 2004:
(1) the levy of the municipality in an amount equal to the
sum of:
(A) the levy certified by the department for the
municipality for taxes first due and payable in 2004; plus
(B) the lesser of:
(i) the amount of the excess or supplemental
distribution referred to in subsection (b)(1); or
(ii) the remainder of the levy of the municipality for
taxes first due and payable in 2002 minus the levy of the
municipality for taxes first due and payable in 2003; and
(2) the rate for the municipality to reflect the increased levy
under subdivision (1).
(e) If at the time the department receives a petition under
subsection (c) the department has not certified the levy and the
rate of the municipality under IC 6-1.1-17-16 for taxes first due
and payable in 2004, the department shall certify for taxes first
due and payable in 2004:
(1) the levy of the municipality in an amount equal to the
sum of:
(A) the maximum permissible levy determined by the
department for the municipality under IC 6-1.1-18.5 for
taxes first due and payable in 2004; plus
(B) the lesser of:
(i) the amount of the excess or supplemental
distribution referred to in subsection (b)(1); or
(ii) the remainder of the levy of the municipality for
taxes first due and payable in 2002 minus the levy of the
municipality for taxes first due and payable in 2003; and
(2) the rate for the municipality to reflect the levy under
subdivision (1).
(f) This SECTION expires January 1, 2005.
Notwithstanding IC 6-3.5-6-2, as amended by this act, a county
income tax council may impose a county option income tax rate
under IC 6-3.5-6-9.7, as added by this act, effective July 1, 2004,
by the adoption of an ordinance before May 1, 2004.
(b) Subject to the limitations of IC 6-3.5-6-6, as amended by
this act, the county auditor shall deliver copies of a proposed
ordinance the auditor receives to impose a county option income
tax rate under IC 6-3.5-6-9.7, as added by this act, to all members
of the county income tax council not later than five (5) days after
receipt. Once a member of the county income tax council receives
a proposed ordinance from the auditor of the county under this
subsection, the member shall vote on it not later than fifteen (15)
days after receipt.
(c) This SECTION expires January 1, 2005.
and when so amended that said bill do pass.