Citations Affected: IC 6-1.1-18.5-3; IC 6-3.5.
Synopsis: CAGIT and COIT increases for property tax relief. Allows
a county to impose up to an additional 1% county adjusted gross
income tax (CAGIT) rate or county option income tax (COIT) rate.
Provides that the additional CAGIT or COIT rate must be allocated to
additional property tax replacement credits.
Effective: Upon passage.
January 8, 2004, read first time and referred to Committee on Finance.
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
SECTION 1. IC 6-1.1-18.5-3, AS AMENDED BY P.L.1-2003,
SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 3. (a) Except as otherwise provided in this
chapter and IC 6-3.5-8-12, a civil taxing unit that is treated as not being
located in an adopting county under section 4 of this chapter may not
impose an ad valorem property tax levy for an ensuing calendar year
that exceeds the amount determined in the last STEP of the following
STEPS:
STEP ONE: Add the civil taxing unit's maximum permissible ad
valorem property tax levy for the preceding calendar year to the
part of the civil taxing unit's certified share, if any, that was used
to reduce the civil taxing unit's ad valorem property tax levy under
STEP EIGHT of subsection (b) for that preceding calendar year.
STEP TWO: Multiply the amount determined in STEP ONE by
the amount determined in the last STEP of section 2(b) of this
chapter.
STEP THREE: Determine the lesser of one and fifteen hundredths
(1.15) or the quotient (rounded to the nearest ten-thousandth
(0.0001)), of the assessed value of all taxable property subject to
the civil taxing unit's ad valorem property tax levy for the ensuing
calendar year, divided by the assessed value of all taxable
property that is subject to the civil taxing unit's ad valorem
property tax levy for the ensuing calendar year and that is
contained within the geographic area that was subject to the civil
taxing unit's ad valorem property tax levy in the preceding
calendar year.
STEP FOUR: Determine the greater of the amount determined in
STEP THREE or one (1).
STEP FIVE: Multiply the amount determined in STEP TWO by
the amount determined in STEP FOUR.
STEP SIX: Add the amount determined under STEP TWO to the
amount determined under subsection (c).
STEP SEVEN: Determine the greater of the amount determined
under STEP FIVE or the amount determined under STEP SIX.
(b) Except as otherwise provided in this chapter and IC 6-3.5-8-12,
a civil taxing unit that is treated as being located in an adopting county
under section 4 of this chapter may not impose an ad valorem property
tax levy for an ensuing calendar year that exceeds the amount
determined in the last STEP of the following STEPS:
STEP ONE: Add the civil taxing unit's maximum permissible ad
valorem property tax levy for the preceding calendar year to the
part of the civil taxing unit's certified share, if any, used to reduce
the civil taxing unit's ad valorem property tax levy under STEP
EIGHT of this subsection for that preceding calendar year.
STEP TWO: Multiply the amount determined in STEP ONE by
the amount determined in the last STEP of section 2(b) of this
chapter.
STEP THREE: Determine the lesser of one and fifteen hundredths
(1.15) or the quotient of the assessed value of all taxable property
subject to the civil taxing unit's ad valorem property tax levy for
the ensuing calendar year divided by the assessed value of all
taxable property that is subject to the civil taxing unit's ad
valorem property tax levy for the ensuing calendar year and that
is contained within the geographic area that was subject to the
civil taxing unit's ad valorem property tax levy in the preceding
calendar year.
STEP FOUR: Determine the greater of the amount determined in
STEP THREE or one (1).
STEP FIVE: Multiply the amount determined in STEP TWO by
the amount determined in STEP FOUR.
STEP SIX: Add the amount determined under STEP TWO to the
amount determined under subsection (c).
STEP SEVEN: Determine the greater of the amount determined
under STEP FIVE or the amount determined under STEP SIX.
STEP EIGHT: Subtract the amount determined under STEP FIVE
of subsection (e) from the amount determined under STEP
SEVEN of this subsection.
(c) If a civil taxing unit in the immediately preceding calendar year
provided an area outside its boundaries with services on a contractual
basis and in the ensuing calendar year that area has been annexed by
the civil taxing unit, the amount to be entered under STEP SIX of
subsection (a) or STEP SIX of subsection (b), as the case may be,
equals the amount paid by the annexed area during the immediately
preceding calendar year for services that the civil taxing unit must
provide to that area during the ensuing calendar year as a result of the
annexation. In all other cases, the amount to be entered under STEP
SIX of subsection (a) or STEP SIX of subsection (b), as the case may
be, equals zero (0).
(d) This subsection applies only to civil taxing units located in a
county having a county adjusted gross income tax rate for resident
county taxpayers (as defined in IC 6-3.5-1.1-1) of at least one percent
(1%) as of January 1 of the ensuing calendar year. For each civil taxing
unit, the amount to be added to the amount determined in subsection
(e), STEP FOUR, is determined using the following formula:
STEP ONE: Multiply the civil taxing unit's maximum permissible
ad valorem property tax levy for the preceding calendar year by
two percent (2%).
STEP TWO: For the determination year, the amount to be used as
the STEP TWO amount is the amount determined in subsection
(f) for the civil taxing unit. For each year following the
determination year the STEP TWO amount is the lesser of:
(A) the amount determined in STEP ONE; or
(B) the amount determined in subsection (f) for the civil taxing
unit.
STEP THREE: Determine the greater of:
(A) zero (0); or
(B) the civil taxing unit's certified share for the ensuing
calendar year minus the greater of:
(i) the civil taxing unit's certified share for the calendar year
that immediately precedes the ensuing calendar year; or
(ii) the civil taxing unit's base year certified share.
that year.
The amount to be used in subsections (d) and (e) for a taxing unit
depends upon the taxing unit's certified share for the ensuing calendar
year, the taxing unit's determination year, and the county adjusted gross
income tax rate for resident county taxpayers (as defined in
IC 6-3.5-1.1-1) that is in effect in the taxing unit's county on July 1 of
the year preceding the ensuing calendar year. For the determination
year and the ensuing calendar years following the taxing unit's
determination year, the amount is the taxing unit's certified share for
the ensuing calendar year multiplied by the appropriate factor
prescribed in the following table:
(1.75%), or two percent (2%) on the adjusted gross income of
resident county taxpayers of the county. Any county imposing the
county adjusted gross income tax must impose the tax on the
nonresident county taxpayers at a rate of one-fourth of one percent
(0.25%) on their adjusted gross income. If the 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.
SECTION 3. IC 6-3.5-1.1-2.5, AS AMENDED BY P.L.90-2002,
SECTION 289, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 2.5. (a) This section applies
only to a county having a population of more than forty-one thousand
(41,000) but less than forty-three thousand (43,000).
(b) The county council of a county described in subsection (a) may,
by ordinance, determine that additional county adjusted gross income
tax revenue is needed in the county to fund the operation and
maintenance of a jail and juvenile detention center opened after July 1,
1998.
a rate of one two and three-tenths percent (1.3%), (2.3%), the county
council may decrease the rate or rescind the tax in the manner provided
under this chapter.
(d) If a county imposes the county adjusted gross income tax at a rate
of one two and three-tenths percent (1.3%) (2.3%) under this section,
the revenue derived from a tax rate of three-tenths percent (0.3%) on
adjusted gross income:
(1) shall be paid to the county treasurer;
(2) may be used only to pay the costs of operating and maintaining
a jail and justice center; and
(3) may not be considered by the department of local government
finance under any provision of IC 6-1.1-18.5, including the
determination of the county's maximum permissible property tax
levy.
(e) Notwithstanding section 3 of this chapter, the county fiscal body
may adopt an ordinance under this section before June 1.
SECTION 5. IC 6-3.5-1.1-11, AS AMENDED BY P.L.267-2003,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 11. (a) 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; or
(6) revenue that is dedicated to property tax replacement
credits by the county under section 11.5 of this chapter;
the certified distribution received by a county treasurer shall, in the
manner prescribed in this section, be allocated, distributed, and used
by the civil taxing units and school corporations of the county as
certified shares and property tax replacement credits.
(b) Before August 10 of each calendar year, each county auditor shall
determine the part of the certified distribution for the next succeeding
calendar year that will be allocated as property tax replacement credits
and the part that will be allocated as certified shares. The percentage
of a certified distribution that will be allocated as property tax
replacement credits or as certified shares depends upon the county
adjusted gross income tax rate for resident county taxpayers in effect
on August 1 of the calendar year that precedes the year in which the
certified distribution will be received by two (2) years. The percentages
for that part of the certified distribution that is attributable to part
of a rate that is not more than one percent (1%) 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%
One hundred percent (100%) of the amount of the certified
distribution that is attributable to the amount raised by that part
of a rate that is greater than one percent (1%) shall be dedicated
to property tax replacement credits by the county under section
11.5 of this chapter.
(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.
SECTION 6. IC 6-3.5-1.1-11.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 11.5. Except as otherwise
provided in this chapter, if a county council adopts an ordinance to
impose a tax rate under this chapter that is greater than one
percent (1%), the revenue attributable to the amount raised by
that part of a rate that is greater than one percent (1%) shall be
used to provide additional property tax replacement credits under
this chapter. The additional property tax replacement credits shall
be allocated and distributed to civil taxing units and school
corporations in the same manner that certified distributions used
as property tax replacement credits are allocated by the county
auditor under this chapter among the civil taxing units and school
corporations of the county.
SECTION 7. IC 6-3.5-6-9 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 9. (a) If on January
1 of a calendar year the county option income tax rate in effect for
resident county taxpayers equals six tenths of one percent (0.6%), then
the county income tax council of that county may after January 1 and
before April 1 of that year pass an ordinance to increase its tax rate for
resident county taxpayers. If a county income tax council passes an
ordinance under this section, its county option income tax rate for
resident county taxpayers increases by one tenth of one percent (0.1%)
each succeeding July 1 until its rate reaches a maximum of one percent
(1%).
(b) This subsection applies to a county that has a county option
income tax rate equal to one percent (1%) on January 1 of a
calendar year. The county income tax council of that county may
after January 1 and before April 1 of that year pass an ordinance
to increase its tax rate for resident county taxpayers. If a county
income tax council passes an ordinance under this section, its
county option income tax rate for resident county taxpayers may
be increased to not more than two percent (2%) in an increment of
two-tenths of one percent (0.2%). One hundred percent (100%) of
the amount of the certified distribution that is attributable to the
amount raised by that part of a rate that is greater than one
percent (1%) shall be allocated for additional property tax
replacement credits under sections 27, 28, and 29 of this chapter.
(c) The auditor of the county shall record any vote taken on an
ordinance proposed under the authority of this section and immediately
send a certified copy of the results to the department by certified mail.
SECTION 8. IC 6-3.5-6-18, AS AMENDED BY P.L.255-2003,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 18. (a) The revenue a county auditor receives
under this chapter shall be used to:
(1) replace the amount, if any, of property tax revenue lost due to
the allowance of an increased homestead credit within the county;
(2) fund the operation of a public communications system and
computer facilities district as provided in an election, if any, made
by the county fiscal body under IC 36-8-15-19(b);
(3) fund the operation of a public transportation corporation as
provided in an election, if any, made by the county fiscal body
under IC 36-9-4-42;
(4) make payments permitted under IC 36-7-15.1-17.5;
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.
SECTION 9. IC 6-3.5-6-27 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 27. (a) This section applies in a county for
a calendar year in which on January 1 the county option income
tax rate exceeds one percent (1%).
(b) The part of a county's certified distribution for a calendar
year that is to be used as property tax replacement credits shall be
allocated by the county auditor among the civil taxing units and
school corporations of the county.
(c) Except as provided in section 28 of this chapter, the amount
of property tax replacement credits that each civil taxing unit and
school corporation in a county is entitled to receive during a
calendar year equals the product of:
(1) the part of the county's certified distribution that is
dedicated to providing property tax replacement credits for
that same calendar year; multiplied by
(2) the amount determined under STEP TWO of the following
formula:
STEP ONE: Determine the sum of the total property taxes
being collected by the civil taxing unit or school
corporation during that calendar year.
STEP TWO: Determine the sum of the total property taxes
being collected by all civil taxing units and school
corporations in the county for the same calendar year.
(d) 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 adjustments made under section 28 of this chapter) during
that calendar year. The county auditor shall also certify these
distributions to the county treasurer.
SECTION 10. IC 6-3.5-6-28 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 28. (a) This section applies in a county for
a calendar year in which on January 1 the county option income
tax rate exceeds one percent (1%).
(b) If a civil taxing unit or school corporation of an adopting
county does not impose a property tax levy that is first due and
payable in a calendar year in which property tax replacement
credits are being distributed, that civil taxing unit or school
corporation is entitled to receive a proportion of the property tax
replacement credits to be distributed within the county. The
amount such a civil taxing unit or school corporation is entitled to
receive during that calendar year equals the product of:
(1) the part of the county's certified distribution that is to be
used to provide property tax replacement credits during that
calendar year; multiplied by
(2) a fraction:
(A) the numerator of which equals the budget of that civil
taxing unit or school corporation for that calendar year;
and
(B) the denominator of which equals the aggregate budgets
of all civil taxing units and school corporations of that
county for that calendar year.
(c) If for a calendar year a civil taxing unit or school
corporation is allocated a proportion of a county's property tax
replacement credits by this section, the formula used in section 27
of this chapter to determine other civil taxing units' and school
corporations' property tax replacement credits shall be changed
for that same year by reducing the amount dedicated to providing
property tax replacement credits by the amount of property tax
replacement credits allocated under this section for that same
calendar year. The department of local government finance shall
make the adjustments required by this section and provide them to
the appropriate county auditors.
SECTION 11. IC 6-3.5-6-29 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 29. (a) This section applies in a county for
a calendar year in which on January 1 the county option income
tax rate exceeds one percent (1%).
(b) In determining the amount of property tax replacement
credits civil taxing units and school corporations of a county are
entitled to receive during a calendar year, the department of local
government finance shall consider only property taxes imposed on
tangible property that was assessed in that county.
(c) If a civil taxing unit or a school corporation is located in
more than one (1) county and receives property tax replacement
credits from one (1) or more of the counties, the property tax
replacement credits received from each county shall be used only
to reduce the property tax rates that are imposed within the county
that distributed the property tax replacement credits.
(d) A civil taxing unit shall treat the property tax replacement
credits that it receives or is to receive during a particular calendar
year as a part of its property tax levy for that same calendar year
for purposes of fixing its budget and for purposes of the property
tax levy limits imposed by IC 6-1.1-18.5.
(e) A school corporation shall treat the property tax
replacement credits that the school corporation receives or is to
receive during a particular calendar year as a part of its property
tax levy for its funds in proportion to the levy for each of these
funds for that same calendar year for purposes of fixing its budget
and for purposes of the property tax levy limits imposed by
IC 6-1.1-19. A school corporation shall allocate the property tax
replacement credits described in this subsection to all funds in
proportion to the levy for each fund.
SECTION 12. IC 6-3.5-7-5, AS AMENDED BY p.l.42-2003,
SECTION 5, AND AS AMENDED BY P.L.224-2003, SECTION 254,
IS AMENDED AND CORRECTED 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), 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%). That part of a county adjusted gross income tax rate
or county option income tax rate that exceeds one percent (1%)
and is used for additional property tax replacement credits may
not be considered in calculating a maximum combined rate under
this subsection.
(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