MADAM PRESIDENT:
The Senate Committee on Tax and Fiscal Policy, to which was referred House Bill No. 1120,
has had the same under consideration and begs leave to report the same back to the Senate
with the recommendation that said bill be AMENDED as follows:
Delete everything after the enacting clause and insert the following:
from any department, agency, or instrumentality of the United
States, and lease or otherwise acquire, own, hold, improve,
employ, use, and otherwise deal in and with real or personal
property or any interest in real or personal property, wherever
situated, for any purpose consistent with this chapter, IC 4-4-21,
or IC 15-7-5.
(12) Enter into agreements with any department, agency, or
instrumentality of the United States or this state and with lenders
and enter into loan agreements, sales contracts, and leases with
contracting parties, including borrowers, lenders, developers, or
users, for the purpose of planning, regulating, and providing for
the financing and refinancing of any agricultural enterprise (as
defined in IC 15-7-4.9-2), rural development project (as defined
in IC 15-7-4.9-19.5), industrial development project, or
international exports, and distribute data and information
concerning the encouragement and improvement of agricultural
enterprises and agricultural employment, rural development
projects, industrial development projects, international exports,
and other types of employment in the state undertaken with the
assistance of the authority under this chapter.
(13) Enter into contracts or agreements with lenders and lessors
for the servicing and processing of loans and leases pursuant to
this chapter, IC 4-4-21, and IC 15-7-5.
(14) Provide technical assistance to local public bodies and to
profit and nonprofit entities in the development or operation of
agricultural enterprises, rural development projects, and industrial
development projects.
(15) To the extent permitted under its contract with the holders of
the bonds of the authority, consent to any modification with
respect to the rate of interest, time, and payment of any
installment of principal or interest, or any other term of any
contract, loan, loan note, loan note commitment, contract, lease,
or agreement of any kind to which the authority is a party.
(16) To the extent permitted under its contract with the holders of
bonds of the authority, enter into contracts with any lender
containing provisions enabling it to reduce the rental or carrying
charges to persons unable to pay the regular schedule of charges
when, by reason of other income or payment by any department,
agency, or instrumentality of the United States of America or of
this state, the reduction can be made without jeopardizing the
economic stability of the agricultural enterprise, rural
development project, or industrial development project being
financed.
(17) Invest any funds not needed for immediate disbursement,
including any funds held in reserve, in direct and general
obligations of or obligations fully and unconditionally guaranteed
by the United States, obligations issued by agencies of the United
States, obligations of this state, or any obligations or securities
which may from time to time be legally purchased by
governmental subdivisions of this state pursuant to IC 5-13, or any
obligations or securities which are permitted investments for bond
proceeds or any construction, debt service, or reserve funds
secured under the trust indenture or resolution pursuant to which
bonds are issued.
(18) Collect fees and charges, as the authority determines to be
reasonable, in connection with its loans, guarantees, advances,
insurance, commitments, and servicing.
(19) Cooperate and exchange services, personnel, and information
with any federal, state, or local government agency, or
instrumentality of the United States or this state.
(20) Sell, at public or private sale, with or without public bidding,
any loan or other obligation held by the authority.
(21) Enter into agreements concerning, and acquire, hold, and
dispose by any lawful means, land or interests in land, building
improvements, structures, personal property, franchises, patents,
accounts receivable, loans, assignments, guarantees, and insurance
needed for the purposes of this chapter, IC 4-4-21, or IC 15-7-5.
(22) Take assignments of accounts receivable, loans, guarantees,
insurance, notes, mortgages, security agreements securing notes,
and other forms of security, attach, seize, or take title by
foreclosure or conveyance to any industrial development project
when a guaranteed loan thereon is clearly in default and when in
the opinion of the authority such acquisition is necessary to
safeguard the industrial development project guaranty fund, and
sell, or on a temporary basis, lease, or rent such industrial
development project for any use.
guaranty, notes and other evidences of indebtedness.
(34) Sell and guarantee securities.
(35) Make guaranteed participating loans under IC 4-4-21-26.
(36) Procure insurance to guarantee, insure, coinsure, and reinsure
against political and commercial risk of loss, and any other
insurance the authority considers necessary, including insurance
to secure the payment of principal and interest on notes or other
obligations of the authority.
(37) Provide performance bond guarantees to support eligible
export loan transactions, subject to the terms of this chapter or
IC 4-4-21.
(38) Provide financial counseling services to Indiana exporters.
(39) Accept gifts, grants, or loans from, and enter into contracts or
other transactions with, any federal or state agency, municipality,
private organization, or other source.
(40) Sell, convey, lease, exchange, transfer, or otherwise dispose
of property or any interest in property, wherever the property is
located.
(41) Cooperate with other public and private organizations to
promote export trade activities in Indiana.
(42) Make guarantees and administer the agricultural loan and
rural development project guarantee fund established by
IC 15-7-5.
(43) Take assignments of notes and mortgages and security
agreements securing notes and other forms of security, and attach,
seize, or take title by foreclosure or conveyance to any
agricultural enterprise or rural development project when a
guaranteed loan to the enterprise or rural development project is
clearly in default and when in the opinion of the authority the
acquisition is necessary to safeguard the agricultural loan and
rural development project guarantee fund, and sell, or on a
temporary basis, lease or rent the agricultural enterprise or rural
development project for any use.
(44) Expend money, as the authority considers appropriate, from
the agricultural loan and rural development project guarantee fund
created by IC 15-7-5-19.5.
(45) Reimburse from bond proceeds expenditures for industrial
development projects under this chapter.
methods:
(A) Per diem.
(B) For expenses necessarily and actually incurred.
(C) Any combination of the methods in clauses (A) and (B).
The rules must require the approval of the travel by the
commissioner and the head of the officer's or employee's
department prior to payment.
(8) Administer IC 4-13.6.
(9) Prescribe the amount and form of certified checks, deposits, or
bonds to be submitted in connection with bids and contracts when
not otherwise provided for by law.
(10) Rent out, with the approval of the governor, any state
property, real or personal:
(A) not needed for public use; or
(B) for the purpose of providing services to the state or
employees of the state;
the rental of which is not otherwise provided for or prohibited by
law. Property may not be rented out under this subdivision for a
term exceeding ten (10) years at a time. However, if property is
rented out for a term of more than four (4) years, the
commissioner must make a written determination stating the
reasons that it is in the best interests of the state to rent property
for the longer term. This subdivision does not include the power
to grant or issue permits or leases to explore for or take coal, sand,
gravel, stone, gas, oil, or other minerals or substances from or
under the bed of any of the navigable waters of the state or other
lands owned by the state.
(11) Have charge of all central storerooms, supply rooms, and
warehouses established and operated by the state and serving
more than one (1) agency.
(12) Enter into contracts and issue orders for printing as provided
by IC 4-13-4.1.
(13) Sell or dispose of surplus property under IC 5-22-22, or if
advantageous, to exchange or trade in the surplus property toward
the purchase of other supplies, materials, or equipment, and to
make proper adjustments in the accounts and inventory pertaining
to the state agencies concerned.
(14) With respect to power, heating, and lighting plants owned,
operated, or maintained by any state agency:
(A) inspect;
(B) regulate their operation; and
(C) recommend improvements to those plants to promote
economical and efficient operation.
(15) Administer, determine salaries, and determine other
personnel matters of the department of correction ombudsman
bureau established by IC 4-13-1.2-3.
(16) Adopt policies and standards for making state owned
property reasonably available to be used free of charge as
locations for making motion pictures.
to a riverboat that has implemented flexible scheduling under
IC 4-33-6-21 during the quarter shall be paid to:
(A) the city in which the riverboat is docked, if the city:
(i) is located in a county having a population of more than
one hundred ten thousand (110,000) but less than one
hundred fifteen thousand (115,000); or
(ii) is contiguous to the Ohio River and is the largest city in
the county; and
(B) the county in which the riverboat is docked, if the riverboat
is not docked in a city described in clause (A).
(2) Except as provided in subsection (k), one dollar ($1) of the
admissions tax collected by the licensed owner for each person:
(A) embarking on a gambling excursion during the quarter; or
(B) admitted to a riverboat during the quarter that has
implemented flexible scheduling under IC 4-33-6-21;
shall be paid to the county in which the riverboat is docked. In the
case of a county described in subdivision (1)(B), this one dollar
($1) is in addition to the one dollar ($1) received under
subdivision (1)(B).
(1) To Dearborn County, East Chicago, Evansville, Gary,
Hammond, Harrison County, Lake County, LaPorte County,
Lawrenceburg, Michigan City, Ohio County, Rising Sun,
Switzerland County, and Vanderburgh County, a quarterly
distribution based on an annual amount equal to the lesser of:
(A) the amount distributed to the political subdivision for
the state fiscal year ending June 30, 2002, as determined by
the treasurer of state; or
(B) the amount determined under subdivision (2).
(2) Determine the greater of the following annual amounts for
each political subdivision referred to in subdivision (1):
(A) Two million dollars ($2,000,000).
(B) Twenty percent (20%) of the political subdivision's
most recent maximum permissible ad valorem property tax
levy.
(3) Except as provided in subsection (k), ten cents ($0.10) of the
admissions tax collected by the licensed owner for each person:
(A) embarking on a gambling excursion during the quarter; or
(B) admitted to a riverboat during the quarter that has
implemented flexible scheduling under IC 4-33-6-21;
The base year revenue shall be paid to the county convention
and visitors bureau or promotion fund for the county in which the
riverboat is docked.
(4) Except as provided in subsection (k), fifteen cents ($0.15) of
the admissions tax collected by the licensed owner for each
person:
(A) embarking on a gambling excursion during the quarter; or
(B) admitted to a riverboat during a quarter that has
implemented flexible scheduling under IC 4-33-6-21;
The base year revenue shall be paid to the state fair commission,
for use in any activity that the commission is authorized to carry
out under IC 15-1.5-3.
(5) Except as provided in subsection (k), ten cents ($0.10) of the
admissions tax collected by the licensed owner for each person:
(A) embarking on a gambling excursion during the quarter; or
(B) admitted to a riverboat during the quarter that has
implemented flexible scheduling under IC 4-33-6-21;
The base year revenue shall be paid to the division of mental
health and addiction. The division shall allocate at least
twenty-five percent (25%) of the funds derived from the
admissions tax to the prevention and treatment of compulsive
gambling.
(6) Except as provided in subsection (k), sixty-five cents ($0.65)
of the admissions tax collected by the licensed owner for each
person embarking on a gambling excursion during the quarter or
admitted to a riverboat during the quarter that has implemented
flexible scheduling under IC 4-33-6-21 The base year revenue
shall be paid to the Indiana horse racing commission to be
distributed as follows, in amounts determined by the Indiana horse
racing commission, for the promotion and operation of horse
racing in Indiana:
(A) To one (1) or more breed development funds established
by the Indiana horse racing commission under IC 4-31-11-10.
(B) To a racetrack that was approved by the Indiana horse
racing commission under IC 4-31. The commission may make
a grant under this clause only for purses, promotions, and
routine operations of the racetrack. No grants shall be made for
long term capital investment or construction, and no grants
shall be made before the racetrack becomes operational and is
offering a racing schedule.
(c) With respect to tax revenue collected from a riverboat located in
a historic hotel district, the treasurer of state shall quarterly pay the
following amounts:
(1) Twenty-five percent (25%) of the admissions tax collected
during the quarter shall be paid to the county treasurer of the
county in which the riverboat is docked. The county treasurer
shall distribute the money received under this subdivision as
follows:
(A) Twenty percent (20%) shall be quarterly distributed to the
county treasurer of a county having a population of more than
thirty-nine thousand six hundred (39,600) but less than forty
thousand (40,000) for appropriation by the county fiscal body
after receiving a recommendation from the county executive.
The county fiscal body for the receiving county shall provide
for the distribution of the money received under this clause to
one (1) or more taxing units (as defined in IC 6-1.1-1-21) in
the county under a formula established by the county fiscal
body after receiving a recommendation from the county
executive.
(B) Twenty percent (20%) shall be quarterly distributed to the
county treasurer of a county having a population of more than
ten thousand seven hundred (10,700) but less than twelve
thousand (12,000) for appropriation by the county fiscal body.
The county fiscal body for the receiving county shall provide
for the distribution of the money received under this clause to
one (1) or more taxing units (as defined in IC 6-1.1-1-21) in
the county under a formula established by the county fiscal
body after receiving a recommendation from the county
executive.
(C) Sixty percent (60%) shall be retained by the county where
the riverboat is docked for appropriation by the county fiscal
body after receiving a recommendation from the county
executive. The county fiscal body shall provide for the
distribution of part or all of the money received under this
clause to the following under a formula established by the
county fiscal body:
(i) A town having a population of more than two thousand
two hundred (2,200) but less than three thousand five
hundred (3,500) located in a county having a population of
more than nineteen thousand three hundred (19,300) but less
than twenty thousand (20,000).
(ii) A town having a population of more than three thousand
five hundred (3,500) located in a county having a population
of more than nineteen thousand three hundred (19,300) but
less than twenty thousand (20,000).
(2) Sixteen percent (16%) of the admissions tax collected during
the quarter shall be paid in equal amounts to each town that:
(A) is located in the county in which the riverboat docks; and
(B) contains a historic hotel.
The town council shall appropriate a part of the money received
by the town under this subdivision to the budget of the town's
tourism commission.
(3) Nine percent (9%) of the admissions tax collected during the
quarter shall be paid to the historic hotel preservation commission
established under IC 36-7-11.5.
(4) Twenty-five percent (25%) of the admissions tax collected
during the quarter shall be paid to the West Baden Springs historic
hotel preservation and maintenance fund established by
IC 36-7-11.5-11(b).
(5) Twenty-five percent (25%) of the admissions tax collected
during the quarter shall be paid to the Indiana economic
development corporation to be used by the corporation for the
development and implementation of a regional economic
development strategy to assist the residents of the county in which
the riverboat is located and residents of contiguous counties in
improving their quality of life and to help promote successful and
sustainable communities. The regional economic development
strategy must include goals concerning the following issues:
(A) Job creation and retention.
(B) Infrastructure, including water, wastewater, and storm
water infrastructure needs.
(C) Housing.
(D) Workforce training.
shall be made before the racetrack becomes operational and is
offering a racing schedule.
(e) Money paid to a unit of local government under subsection (b)(1)
through (b)(2), or (c)(1) through (c)(2): or (d)(1) through (d)(2):
(1) must be paid to the fiscal officer of the unit and may be
deposited in the unit's general fund or riverboat fund established
under IC 36-1-8-9, or both;
(2) may not be used to reduce the unit's maximum levy under
IC 6-1.1-18.5 but may be used at the discretion of the unit to
reduce the property tax levy of the unit for a particular year;
(3) may be used for any legal or corporate purpose of the unit,
including the pledge of money to bonds, leases, or other
obligations under IC 5-1-14-4; and
(4) is considered miscellaneous revenue.
(f) Money paid by the treasurer of state under subsection (b)(3) or
(d)(3) (d)(1) shall be:
(1) deposited in:
(A) the county convention and visitor promotion fund; or
(B) the county's general fund if the county does not have a
convention and visitor promotion fund; and
(2) used only for the tourism promotion, advertising, and
economic development activities of the county and community.
(g) Money received by the division of mental health and addiction
under subsections (b)(5) and (d)(6): (d)(4):
(1) is annually appropriated to the division of mental health and
addiction;
(2) shall be distributed to the division of mental health and
addiction at times during each state fiscal year determined by the
budget agency; and
(3) shall be used by the division of mental health and addiction for
programs and facilities for the prevention and treatment of
addictions to drugs, alcohol, and compulsive gambling, including
the creation and maintenance of a toll free telephone line to
provide the public with information about these addictions. The
division shall allocate at least twenty-five percent (25%) of the
money received to the prevention and treatment of compulsive
gambling.
(h) This subsection applies to the following:
Indiana fund to the amount available in the property tax replacement
fund from the transfers under subsection (a)(3) (a)(4) for the state fiscal
year.
(e) (d) Before August 15 of 2003 and each year, thereafter, the
treasurer of state shall distribute the wagering taxes set aside for
revenue sharing under subsection (a)(1) to the county treasurer of each
county that does not have a riverboat according to the ratio that the
county's population bears to the total population of the counties that do
not have a riverboat. Except as provided in subsection (h), (f), the
county auditor shall distribute the money received by the county under
this subsection as follows:
(1) To each city located in the county according to the ratio the
city's population bears to the total population of the county.
(2) To each town located in the county according to the ratio the
town's population bears to the total population of the county.
(3) After the distributions required in subdivisions (1) and (2) are
made, the remainder shall be retained by the county.
(f) (e) Money received by a city, town, or county under subsection
(e) (d) or (h) (f) may be used for any of the following purposes:
(1) To reduce the property tax levy of the city, town, or county for
a particular year (a property tax reduction under this subdivision
does not reduce the maximum levy of the city, town, or county
under IC 6-1.1-18.5);
(2) For deposit in a special fund or allocation fund created under
IC 8-22-3.5, IC 36-7-14, IC 36-7-14.5, IC 36-7-15.1, and
IC 36-7-30 to provide funding for additional credits for property
tax replacement in property tax increment allocation areas or debt
repayment.
(3) To fund sewer and water projects, including storm water
management projects.
(4) For police and fire pensions.
(5) To carry out any governmental purpose for which the money
is appropriated by the fiscal body of the city, town, or county.
Money used under this subdivision does not reduce the property
tax levy of the city, town, or county for a particular year or reduce
the maximum levy of the city, town, or county under
IC 6-1.1-18.5.
(g) This subsection does not apply to an entity receiving money
under IC 4-33-12-6(c). Before September 15 of 2003 and each year
thereafter, the treasurer of state shall determine the total amount of
money distributed to an entity under IC 4-33-12-6 during the preceding
state fiscal year. If the treasurer of state determines that the total amount
of money distributed to an entity under IC 4-33-12-6 during the
preceding state fiscal year was less than the entity's base year revenue
(as determined under IC 4-33-12-6), the treasurer of state shall make a
supplemental distribution to the entity from taxes collected under this
chapter and deposited into the property tax replacement fund. The
amount of the supplemental distribution is equal to the difference
between the entity's base year revenue (as determined under
IC 4-33-12-6) and the total amount of money distributed to the entity
during the preceding state fiscal year under IC 4-33-12-6.
(h) (f) This subsection applies only to a county containing a
consolidated city. The county auditor shall distribute the money
received by the county under subsection (d) (c) as follows:
(1) To each city, other than a consolidated city, located in the
county according to the ratio that the city's population bears to the
total population of the county.
(2) To each town located in the county according to the ratio that
the town's population bears to the total population of the county.
(3) After the distributions required in subdivisions (1) and (2) are
made, the remainder shall be paid in equal amounts to the
consolidated city and the county.
refers to a capital improvement board of managers created by
IC 36-10-8 or IC 36-10-9.
Sec. 5. As used in this chapter, "state agency" has the meaning
set forth in IC 4-13.5-1-1.
Sec. 6. An Indiana stadium and convention building authority
is created in the state as a separate body corporate and politic as an
instrumentality of the state to acquire, construct, equip, own, lease,
and finance facilities for lease to or for the benefit of a capital
improvement board.
Sec. 7. (a) The board is composed of the following seven (7)
members, who must be residents of the state:
(1) Two (2) members appointed by the governor.
(2) One (1) member appointed by the president pro tempore
of the senate.
(3) One (1) member appointed by the speaker of the house of
representatives.
(4) Two (2) members appointed by the executive of a county
having a consolidated first class city.
(5) One (1) member appointed by the county fiscal body of a
county that is contiguous to a county having a consolidated
city, determined as follows:
(A) The member appointed for the initial term shall be
appointed by the contiguous county that has the largest
population of all the contiguous counties that have adopted
an ordinance to impose a food and beverage tax under
IC 6-9-35.
(B) The member appointed for each successive term shall
be appointed by the contiguous county that:
(i) contributed the most revenues from the tax imposed
by IC 6-9-35 to the capital improvement board of
managers created by IC 36-10-9-3 in the immediately
previous calendar year; and
(ii) has not previously made an appointment to the board
or, if all the contributing counties have previously made
such an appointment, is the one whose then most recent
appointment occurred before those of all the other
contributing counties.
(b) A member appointed under subsection (a)(1) through (a)(4)
is entitled to serve a three (3) year term. A member appointed
under subsection (a)(5) is entitled to serve a one (1) year term. A
member may be reappointed to subsequent terms.
(c) If a vacancy occurs on the board, the person or body who
made the appointment of the vacated member shall fill the vacancy
by appointing a new member for the remainder of the vacated
term.
(d) A member may be removed for cause by the appointing
authority that appointed the member.
(e) Each member, before entering upon the duties of office, must
take and subscribe an oath of office under IC 5-4-1, which shall be
endorsed upon the certificate of appointment and filed with the
records of the board.
Sec. 8. (a) The board shall hold an initial organizational meeting
on or before June 30, 2005. Immediately after January 15 of each
year, the board shall hold its annual organizational meeting.
(b) The governor shall appoint a member of the board to serve
as chair of the board.
(c) The board shall elect one (1) of the members vice chair and
another secretary-treasurer to perform the duties of those offices.
These officers serve from the date of their election and until their
successors are elected and qualified. The board may elect an
assistant secretary-treasurer.
(d) Special meetings may be called by the chair of the board or
any three (3) members of the board.
(e) A majority of the members constitutes a quorum, and the
concurrence of a majority of the members is necessary to authorize
any action.
Sec. 9. The board may adopt the bylaws and rules it considers
necessary for the proper conduct of its duties and the safeguarding
of the funds and property entrusted to its care.
Sec. 10. The authority is organized for the following purposes:
(1) Acquiring, financing, constructing, and leasing land and
capital improvements to or for the benefit of a capital
improvement board.
(2) Financing and constructing additional improvements to
capital improvements owned by the authority and leasing
them to or for the benefit of a capital improvement board.
as set forth in section 10 of this chapter.
Sec. 12. (a) Bonds issued under IC 36-10-8 or IC 36-10-9 or
prior law may be refunded as provided in this section.
(b) A capital improvement board may:
(1) lease all or a portion of land or a capital improvement or
improvements to the authority, which may be at a nominal
lease rental with a lease back to the capital improvement
board, conditioned upon the authority assuming bonds issued
under IC 36-10-8 or IC 36-10-9 or prior law and issuing its
bonds to refund those bonds; and
(2) sell all or a portion of land or a capital improvement or
improvements to the authority for a price sufficient to provide
for the refunding of those bonds and lease back the land or
capital improvement or improvements from the authority.
Sec. 13. (a) Before a lease may be entered into by a capital
improvement board under this chapter, the capital improvement
board must find that the lease rental provided for is fair and
reasonable.
(b) A lease of land or capital improvements from the authority
to a capital improvement board:
(1) may not have a term exceeding forty (40) years;
(2) may not require payment of lease rentals for a newly
constructed capital improvement or for improvements to an
existing capital improvement until the capital improvement or
improvements thereto have been completed and are ready for
occupancy;
(3) may contain provisions:
(A) allowing the capital improvement board to continue to
operate an existing capital improvement until completion
of the improvements, reconstruction, or renovation of that
capital improvement or any other capital improvement;
and
(B) requiring payment of lease rentals for land, for an
existing capital improvement being used, reconstructed, or
renovated, or for any other existing capital improvement;
(4) may contain an option to renew the lease for the same or
shorter term on the conditions provided in the lease;
(5) must contain an option for the capital improvement board
to purchase the capital improvement upon the terms stated in
the lease during the term of the lease for a price equal to the
amount required to pay all indebtedness incurred on account
of the capital improvement, including indebtedness incurred
for the refunding of that indebtedness;
(6) may be entered into before acquisition or construction of
a capital improvement;
(7) must be approved by the executive of the county in which
the capital improvement board is located;
(8) may provide that the capital improvement board shall
agree to:
(A) pay all taxes and assessments thereon;
(B) maintain insurance thereon for the benefit of the
authority;
(C) assume responsibility for utilities, repairs, alterations,
and any costs of operation; and
(D) pay a deposit or series of deposits to the authority from
any funds legally available to the capital improvement
board before the commencement of the lease to secure the
performance of the capital improvement board's
obligations under the lease;
(9) subject to IC 36-10-8-13 and IC 36-10-9-11, may provide
that the lease rental payments by the capital improvement
board shall be made from:
(A) proceeds of one (1) or more of the excise taxes as
defined in IC 36-10-8 or IC 36-10-9;
(B) proceeds of the county supplemental auto rental excise
tax imposed pursuant to IC 6-6-9.7;
(C) that portion of the proceeds of the county food and
beverage tax imposed under IC 6-9-35, which the capital
improvement board or its designee receives pursuant
thereto;
(D) revenue captured under IC 36-7-31;
(E) net revenues of the capital improvement;
(F) any other funds available to the capital improvement
board; or
(G) any combination of the sources described in clauses (A)
through (F); and
enter into common wall (party wall) agreements or other
agreements concerning easements or licenses. These agreements
shall be recorded with the recorder of the county in which the
capital improvement is located.
Sec. 17. (a) A capital improvement board may lease for a
nominal lease rental, or sell to the authority, one (1) or more capital
improvements or portions thereof or land upon which a capital
improvement is located or is to be constructed.
(b) Any lease of all or a portion of a capital improvement by a
capital improvement board to the authority must be for a term
equal to the term of the lease of that capital improvement back to
the capital improvement board.
(c) A capital improvement board may sell property to the
authority for the amount it determines to be in the best interest of
the capital improvement board. The authority may pay that
amount from the proceeds of bonds of the authority.
Sec. 18. (a) Subject to subsection (h), the authority may issue
bonds for the purpose of obtaining money to pay the cost of:
(1) acquiring real or personal property, including existing
capital improvements;
(2) constructing, improving, reconstructing, or renovating one
(1) or more capital improvements; or
(3) funding or refunding bonds issued under IC 36-10-8 or
IC 36-10-9 or prior law.
(b) The bonds are payable solely from the lease rentals from the
lease of the capital improvements for which the bonds were issued,
insurance proceeds, and any other funds pledged or available.
(c) The bonds shall be authorized by a resolution of the board.
(d) The terms and form of the bonds shall either be set out in the
resolution or in a form of trust indenture approved by the
resolution.
(e) The bonds shall mature within forty (40) years.
(f) The board shall sell the bonds at public or private sale upon
the terms determined by the board.
(g) All money received from any bonds issued under this chapter
shall be applied solely to the payment of the cost of the acquisition
or construction, or both, of capital improvements, or the cost of
refunding or refinancing outstanding bonds, for which the bonds
are issued. The cost may include:
(1) planning and development of the facility and all buildings,
facilities, structures, and improvements related to it;
(2) acquisition of a site and clearing and preparing the site for
construction;
(3) equipment, facilities, structures, and improvements that
are necessary or desirable to make the capital improvement
suitable for use and operations;
(4) architectural, engineering, consultant, and attorneys fees;
(5) incidental expenses in connection with the issuance and
sale of bonds;
(6) reserves for principal and interest;
(7) interest during construction;
(8) financial advisory fees;
(9) insurance during construction;
(10) municipal bond insurance, debt service reserve insurance,
letters of credit, or other credit enhancement; and
(11) in the case of refunding or refinancing, payment of the
principal of, redemption premiums (in any) for, and interest
on, the bonds being refunded or refinanced.
(h) The authority may not issue bonds under this chapter unless
the authority first finds that the following conditions are met:
(1) Each contract for the construction of a facility and all
buildings, facilities, structures, and improvements related to
that facility to be financed in whole or in part through the
issuance of the bonds requires payment of the common
construction wage required by IC 5-16-7.
(2) An agreement has been entered into with any professional
football team that will use any facility financed through the
issuance of the bonds that provides all the following:
(A) No transferable license will be sold to a third party that
entitles the third party to purchase a season ticket to
professional football games at the facility for a period
greater than one (1) year.
(B) At least three thousand (3,000) tickets for professional
football games held at the facility must be sold at a price
of:
(i) twenty-five dollars ($25) or less per seat, including
that part of the admissions tax described in
IC 6-9-13-2(b)(1), during the first ten (10) years of
operation of the facility;
(ii) twenty-eight dollars ($28) or less per seat, including
that part of the admissions tax described in
IC 6-9-13-2(b)(1), during the next ten (10) years of
operation of the facility; and
(iii) thirty-one dollars ($31) or less per seat, including
that part of the admissions tax described in
IC 6-9-13-2(b)(1), during the next ten (10) years of
operation of the facility.
These tickets must be clearly designated as tickets that may
not be resold for a price higher than the face value of the
ticket. However, the tickets may be resold for the same
price with the consent of the professional football team that
uses the facility.
A person who sells a license described in subdivision (2)(A) or
resells a ticket described in subdivision (2)(B) commits a Class A
misdemeanor.
Sec. 19. This chapter contains full and complete authority for
the issuance of bonds. No law, procedure, proceedings,
publications, notices, consents, approvals, orders, or acts by the
board or any other officer, department, agency, or instrumentality
of the state or of any political subdivision is required to issue any
bonds, except as prescribed in this chapter.
Sec. 20. Bonds issued under this chapter are legal investments
for private trust funds and the funds of banks, trust companies,
insurance companies, building and loan associations, credit unions,
banks of discount and deposit, savings banks, loan and trust and
safe deposit companies, rural loan and savings associations,
guaranty loan and savings associations, mortgage guaranty
companies, small loan companies, industrial loan and investment
companies, and other financial institutions organized under
Indiana law.
Sec. 21. (a) The authority may secure bonds issued under this
chapter by a trust indenture between the authority and a corporate
trustee, which may be any trust company or national or state bank
within Indiana that has trust powers.
circulation published in the county of notice of the execution
and delivery of the contract for the sale of bonds;
whichever occurs first.
Sec. 25. The authority shall not issue bonds in a principal
amount exceeding five hundred million dollars ($500,000,000) to
finance any capital improvement in a county having a consolidated
first class city unless:
(1) on or before June 30, 2005, the county fiscal body:
(A) increases the rate of the tax authorized by IC 6-6-9.7 by
the maximum amount authorized by IC 6-6-9.7-7(c);
(B) increases the rate of the tax authorized by IC 6-9-8 by
the maximum amount authorized by IC 6-9-8-3(d);
(C) increases the rate of tax authorized by IC 6-9-12 by the
maximum amount authorized by IC 6-9-12-5(b); and
(D) increases the rate of the tax authorized by IC 6-9-13 by
the maximum amount authorized by IC 6-9-13-2(b); and
(2) on or before July 31, 2005, the budget director makes a
determination under IC 36-7-31-14.1 to increase the amount
of money captured in a tax area established under IC 36-7-31
by up to eleven million dollars ($11,000,000) per year,
commencing July 1, 2007.
Sec. 26. (a) Notwithstanding any other law, any capital
improvement that may be leased by the authority to a capital
improvement board under this chapter may also be leased by the
authority to any state agency. Any lease between the authority and
a state agency under this chapter:
(1) must set forth the terms and conditions of the use and
occupancy under the lease;
(2) must set forth the amounts agreed to be paid at stated
intervals for the use and occupancy under the lease;
(3) must provide that the state agency is not obligated to
continue to pay for the use and occupancy under the lease but
is instead required to vacate the facility if it is shown that the
terms and conditions of the use and occupancy and the
amount to be paid for the use and occupancy are unjust and
unreasonable considering the value of the services and
facilities thereby afforded;
(4) must provide that the state agency is required to vacate the
facility if funds have not been appropriated or are not
available to pay any sum agreed to be paid for use and
occupancy when due;
(5) may provide for such costs as maintenance, operations,
taxes, and insurance to be paid by the state agency;
(6) may contain an option to renew the lease;
(7) may contain an option to purchase the facility for an
amount equal to the amount required to pay the principal and
interest of indebtedness of the authority incurred on account
of the facility and expenses of the authority attributable to the
facility;
(8) may provide for payment of sums for use and occupancy
of an existing capital improvement being used by the state
agency, but may not provide for payment of sums for use and
occupancy of a new capital improvement until the
construction of the capital improvement or portion thereof
has been completed and the new capital improvement or a
portion thereof is available for use and occupancy by the state
agency; and
(9) may contain any other provisions agreeable to the
authority and the state agency.
(b) Any state agency that leases a capital improvement from the
authority under this chapter may sublease the capital improvement
to a capital improvement board under the terms and conditions set
forth in section 13 of this chapter.
(c) Notwithstanding any other law, in anticipation of the
construction of any capital improvement and the lease of that
capital improvement by the authority to a state agency, the
authority may acquire an existing facility owned by the state
agency and then lease the facility to the state agency. A lease made
under this subsection shall describe the capital improvement to be
constructed and may provide for the payment of rent by the state
agency for the use of the existing facility. If such rent is to be paid
pursuant to the lease, the lease shall provide that upon completion
of the construction of the capital improvement, the capital
improvement shall be substituted for the existing facility under the
lease. The rent required to be paid by the state agency pursuant to
the lease shall not constitute a debt of the state for purposes of the
Constitution of the State of Indiana. A lease entered into under this
subsection is subject to the same requirements for a lease entered
into under subsection (a) with respect to both the existing facility
and the capital improvement anticipated to be constructed.
(d) This chapter contains full and complete authority for leases
between the authority and a state agency and subleases between a
state agency and a capital improvement board. No law, procedure,
proceedings, publications, notices, consents, approvals, orders, or
acts by the board, the governing body of any state agency or the
capital improvement board or any other officer, department,
agency, or instrumentality of the state or any political subdivision
is required to enter into any such lease or sublease, except as
prescribed in this chapter.
Sec. 27. In order to enable the authority to lease a capital
improvement or existing facility to a state agency under section 26
of this chapter, the governor may convey, transfer, or sell, with or
without consideration, real property (including the buildings,
structures, and improvements), title to which is held in the name of
the state, to the authority, without being required to advertise or
solicit bids or proposals, in order to accomplish the governmental
purposes of this chapter.
Sec. 28. If the authority enters into a lease with a capital
improvement board under section 13 of this chapter or a state
agency under section 26 of this chapter, which then enters into a
sublease with a capital improvement board under section 26(b) of
this chapter, and the rental payments owed by the capital
improvement board to the authority under the lease or to the state
agency under the sublease are payable from the taxes described in
section 25 of this chapter or from the taxes authorized under
IC 6-9-35, the state budget director may choose the designee of the
capital improvement board, which shall receive and deposit the
revenues derived from such taxes. The designee shall hold the
revenues on behalf of the capital improvement board pursuant to
an agreement between the authority and the capital improvement
board or between a state agency and the capital improvement
board. The agreement shall provide for the application of the
revenues in a manner that does not adversely affect the validity of
the lease or the sublease, as applicable. The designee must be a
trust company or national or state bank within Indiana that has
trust powers.
9 of this chapter.
(7) To employ staff and contract for services.
(8) To receive funds from any source and expend the funds for the
administration and promotion of the enterprise zone program.
(9) To make determinations under IC 6-3.1-11 concerning the
designation of locations as industrial recovery sites and the
availability of the credit provided by IC 6-1.1-20.7 to persons
owning inventory located on an industrial recovery site.
(10) To make determinations under IC 6-1.1-20.7 and IC 6-3.1-11
concerning the disqualification of persons from claiming credits
provided by those chapters in appropriate cases.
(11) To make determinations under IC 6-3.1-11.5 concerning the
designation of locations as military base recovery sites and the
availability of the credit provided by IC 6-3.1-11.5 to persons
making qualified investments in military base recovery sites.
(12) To make determinations under IC 6-3.1-11.5 concerning the
disqualification of persons from claiming the credit provided by
IC 6-3.1-11.5 in appropriate cases.
(b) In addition to a registration fee paid under subsection (a)(4)(A),
each zone business that receives a credit under an incentive described
in section 3 of this chapter shall assist the zone U.E.A. in an amount
determined by the legislative body of the municipality in which the
zone is located. If a zone business does not assist a U.E.A., the
legislative body of the municipality in which the zone is located may
pass an ordinance disqualifying a zone business from eligibility for all
credits or incentives available to zone businesses. If a legislative body
disqualifies a zone business under this subsection, the legislative body
shall notify the board, the department of local government finance, and
the department of state revenue in writing not more than thirty (30)
days after the passage of the ordinance disqualifying the zone business.
Disqualification of a zone business under this section is effective
beginning with the taxable year in which the ordinance disqualifying
the zone business is adopted.
center for coal technology research, is entitled to a property tax
deduction for not more than three (3) years. The amount of the
deduction equals the product of:
(1) the assessed value of the qualified building; multiplied by
(2) five percent (5%).
whether the system or device qualifies for a deduction before May 10
of the assessment year. If the department fails to make a determination
under this subsection before May 10 of the assessment year, the system
or device is considered certified.
(d) A denial of a deduction claimed under section 31, 33, or 34, or
34.5 of this chapter may be appealed as provided in IC 6-1.1-15. The
appeal is limited to a review of a determination made by the township
assessor, county property tax assessment board of appeals, or
department of local government finance.
(e) A person who timely files a personal property return under
IC 6-1.1-3-7(a) for an assessment year and who desires to claim the
deduction provided in section 31 of this chapter for property that is not
assessed under IC 6-1.1-7 must file the statement described in
subsection (a) between March 1 and May 15, inclusive, of that year. A
person who obtains a filing extension under IC 6-1.1-3-7(b) for an
assessment year must file the application between March 1 and the
extended due date for that year.
(f) This subsection applies only to an application for a deduction
under section 34.5 of this chapter. The center for coal technology
research established by IC 4-4-30-5, upon receiving an application
from the owner of a building, shall determine whether the building
qualifies for a deduction under section 34.5 of this chapter. If the
center determines that a building qualifies for a deduction, the
center shall certify the building and provide proof of the
certification to the owner of the building. The center shall prescribe
the form and procedure for certification of buildings under this
subsection. If the center receives an application for certification of
a building under section 34.5 of this chapter before April 10 of an
assessment year:
(1) the center shall determine whether the building qualifies
for a deduction before May 10 of the assessment year; and
(2) if the center fails to make a determination before May 10
of the assessment year, the building is considered certified.
apply for the deduction for the following year.
(b) A person who receives a deduction provided under section 26,
29, 33, 34, 34.5, or 38 of this chapter for a particular year and who
becomes ineligible for the deduction for the following year shall notify
the auditor of the county in which the real property or mobile home for
which he received the deduction is located of his ineligibility before
March 31 of the year for which he becomes ineligible.
(c) The auditor of each county shall, in a particular year, apply a
deduction provided under section 26, 29, 33, 34, 34.5, or 38 of this
chapter to each person who received the deduction in the preceding
year unless the auditor determines that the person is no longer eligible
for the deduction.
5.5 section 5.4 of this chapter by a person who desires to
obtain the deduction provided by section 4.5 of this chapter.
(9) "Designation application" means an application that is filed
with a designating body to assist that body in making a
determination about whether a particular area should be
designated as an economic revitalization area.
(10) "Hazardous waste" has the meaning set forth in
IC 13-11-2-99(a). The term includes waste determined to be a
hazardous waste under IC 13-22-2-3(b).
(11) "Solid waste" has the meaning set forth in IC 13-11-2-205(a).
However, the term does not include dead animals or any animal
solid or semisolid wastes.
(12) "New research and development equipment" means tangible
personal property that:
(A) is installed after June 30, 2000, and before January 1,
2006, 2012, in an economic revitalization area in which a
deduction for tangible personal property is allowed;
(B) consists of:
(i) laboratory equipment;
(ii) research and development equipment;
(iii) computers and computer software;
(iv) telecommunications equipment; or
(v) testing equipment;
(C) is used in research and development activities devoted
directly and exclusively to experimental or laboratory research
and development for new products, new uses of existing
products, or improving or testing existing products; and
(D) is acquired by the property owner for purposes described
in this subdivision and was never before used by the owner for
any purpose in Indiana.
The term does not include equipment installed in facilities used
for or in connection with efficiency surveys, management studies,
consumer surveys, economic surveys, advertising or promotion,
or research in connection with literacy, history, or similar projects.
(13) "New logistical distribution equipment" means tangible
personal property that:
(A) is installed after June 30, 2004, and before January 1,
2006, 2012, in an economic revitalization area
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 2. (a) A designating
body may find that a particular area within its jurisdiction is an
economic revitalization area. However, the deduction provided by this
chapter for economic revitalization areas not within a city or town shall
not be available to retail businesses.
(b) In a county containing a consolidated city or within a city or
town, a designating body may find that a particular area within its
jurisdiction is a residentially distressed area. Designation of an area as
a residentially distressed area has the same effect as designating an area
as an economic revitalization area, except that the amount of the
deduction shall be calculated as specified in section 4.1 of this chapter
and the deduction is allowed for not more than five (5) years. In order
to declare a particular area a residentially distressed area, the
designating body must follow the same procedure that is required to
designate an area as an economic revitalization area and must make all
the following additional findings or all the additional findings described
in subsection (c):
(1) The area is comprised of parcels that are either unimproved or
contain only one (1) or two (2) family dwellings or multifamily
dwellings designed for up to four (4) families, including accessory
buildings for those dwellings.
(2) Any dwellings in the area are not permanently occupied and
are:
(A) the subject of an order issued under IC 36-7-9; or
(B) evidencing significant building deficiencies.
(3) Parcels of property in the area:
(A) have been sold and not redeemed under IC 6-1.1-24 and
IC 6-1.1-25; or
(B) are owned by a unit of local government.
However, in a city in a county having a population of more than two
hundred thousand (200,000) but less than three hundred thousand
(300,000), the designating body is only required to make one (1) of the
additional findings described in this subsection or one (1) of the
additional findings described in subsection (c).
(c) In a county containing a consolidated city or within a city or
town, a designating body that wishes to designate a particular area a
residentially distressed area may make the following additional findings
as an alternative to the additional findings described in subsection (b):
equipment.
To exercise one (1) or more of these powers, a designating body must
include this fact in the resolution passed under section 2.5 of this
chapter.
(j) Notwithstanding any other provision of this chapter, if a
designating body limits the time period during which an area is an
economic revitalization area, that limitation does not:
(1) prevent a taxpayer from obtaining a deduction for new
manufacturing equipment, new research and development
equipment, new logistical distribution equipment, or new
information technology equipment installed before January 1,
2006, 2012, but after the expiration of the economic revitalization
area if:
(A) the economic revitalization area designation expires after
December 30, 1995; and
(B) the new manufacturing equipment, new research and
development equipment, new logistical distribution equipment,
or new information technology equipment was described in a
statement of benefits submitted to and approved by the
designating body in accordance with section 4.5 of this chapter
before the expiration of the economic revitalization area
designation; or
(2) limit the length of time a taxpayer is entitled to receive a
deduction to a number of years that is less than the number of
years designated under section 4 or 4.5 of this chapter.
(k) Notwithstanding any other provision of this chapter, deductions:
(1) that are authorized under section 3 of this chapter for property
in an area designated as an urban development area before March
1, 1983, and that are based on an increase in assessed valuation
resulting from redevelopment or rehabilitation that occurs before
March 1, 1983; or
(2) that are authorized under section 4.5 of this chapter for new
manufacturing equipment installed in an area designated as an
urban development area before March 1, 1983;
apply according to the provisions of this chapter as they existed at the
time that an application for the deduction was first made. No deduction
that is based on the location of property or new manufacturing
equipment in an urban development area is authorized under this
chapter after February 28, 1983, unless the initial increase in assessed
value resulting from the redevelopment or rehabilitation of the property
or the installation of the new manufacturing equipment occurred before
March 1, 1983.
(l) If property located in an economic revitalization area is also
located in an allocation area (as defined in IC 36-7-14-39 or
IC 36-7-15.1-26), an application for the property tax deduction
provided by this chapter may not be approved unless the commission
that designated the allocation area adopts a resolution approving the
application.
deduction in the amount claimed in the deduction schedule or in the
amount as altered by the township assessor or the county assessor.
A township assessor or a county assessor who denies a deduction
under this subsection or alters the amount of the deduction shall
notify the person that claimed the deduction and the county auditor
of the assessor's action. The county auditor shall notify the
designating body and the county property tax assessment board of
appeals of all deductions approved applied under this section.
(f) If the ownership of new manufacturing equipment, new research
and development equipment, new logistical distribution equipment, or
new information technology equipment changes, the deduction
provided under section 4.5 of this chapter continues to apply to that
equipment if the new owner:
(1) continues to use the equipment in compliance with any
standards established under section 2(g) of this chapter; and
(2) files the deduction applications schedules required by this
section.
(g) The amount of the deduction is the percentage under section 4.5
of this chapter that would have applied if the ownership of the property
had not changed multiplied by the assessed value of the equipment for
the year the deduction is claimed by the new owner.
(h) A person may appeal the a determination of the county auditor
township assessor or the county assessor under subsection (e) to
deny or alter the amount of the deduction by filing a complaint in the
office of the clerk of the circuit or superior court requesting in writing
a preliminary conference with the township assessor or the county
assessor not more than forty-five (45) days after the county auditor
township assessor or the county assessor gives the person notice of
the determination. Except as provided in subsection (i), an appeal
initiated under this subsection is processed and determined in the
same manner that an appeal is processed and determined under
IC 6-1.1-15.
(i) Before the county auditor acts under subsection (e), the county
auditor may request that the township assessor in which the property is
located review the deduction application.
(i) The county assessor is recused from any action the county
property tax assessment board of appeals takes with respect to an
appeal under subsection (h) of a determination by the county
assessor.
the new manufacturing equipment.
(6) Any information concerning the assessed value of the new
manufacturing equipment, new research and development
equipment, new logistical distribution equipment, or new
information technology equipment including estimates that were
provided as part of the statement of benefits.
(d) The following information is confidential if filed under this
section:
(1) Any information concerning the specific salaries paid to
individual employees by the owner of the new manufacturing
equipment, new research and development equipment, new
logistical distribution equipment, or new information technology
equipment.
(2) Any information concerning the cost of the new manufacturing
equipment, new research and development equipment, new
logistical distribution equipment, or new information technology
equipment.
designating body for the purpose of further considering the
property owner's compliance with the statement of benefits. The
date of the hearing may not be more than thirty (30) days after the
date on which the notice is mailed.
(c) On the date specified in the notice described in subsection (b)(2),
the designating body shall conduct a hearing for the purpose of further
considering the property owner's compliance with the statement of
benefits. Based on the information presented at the hearing by the
property owner and other interested parties, the designating body shall
again determine whether the property owner has made reasonable
efforts to substantially comply with the statement of benefits and
whether any failure to substantially comply was caused by factors
beyond the control of the property owner. If the designating body
determines that the property owner has not made reasonable efforts to
comply with the statement of benefits, the designating body shall adopt
a resolution terminating the property owner's deduction under section
3 or 4.5 of this chapter. If the designating body adopts such a
resolution, the deduction does not apply to the next installment of
property taxes owed by the property owner or to any subsequent
installment of property taxes.
(d) If the designating body adopts a resolution terminating a
deduction under subsection (c), the designating body shall immediately
mail a certified copy of the resolution to:
(1) the property owner; and
(2) the county auditor; and
(3) if the deduction applied under section 4.5 of this chapter,
the township assessor.
The county auditor shall remove the deduction from the tax duplicate
and shall notify the county treasurer of the termination of the deduction.
If the designating body's resolution is adopted after the county treasurer
has mailed the statement required by IC 6-1.1-22-8, the county
treasurer shall immediately mail the property owner a revised statement
that reflects the termination of the deduction.
(e) A property owner whose deduction is terminated by the
designating body under this section may appeal the designating body's
decision by filing a complaint in the office of the clerk of the circuit or
superior court together with a bond conditioned to pay the costs of the
appeal if the appeal is determined against the property owner. An
appeal under this subsection shall be promptly heard by the court
without a jury and determined within thirty (30) days after the time of
the filing of the appeal. The court shall hear evidence on the appeal and
may confirm the action of the designating body or sustain the appeal.
The judgment of the court is final and conclusive unless an appeal is
taken as in other civil actions.
(f) If an appeal under subsection (e) is pending, the taxes resulting
from the termination of the deduction are not due until after the appeal
is finally adjudicated and the termination of the deduction is finally
determined.
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 9. Notwithstanding any
other provision of this chapter, a designating body may not approve a
statement of benefits for a deduction under section 3 or 4.5 of this
chapter after December 31, 2005. 2011.
county auditor of the entities that are to receive distributions under this
section and the relative proportions of those distributions. The county
auditor shall distribute fees collected under this section in accordance
with the designating body's instructions.
(e) If the designating body determines that a property owner has not
paid a fee imposed under this section, the designating body may adopt
a resolution terminating the property owner's deduction under section
3 or 4.5 of this chapter. If the designating body adopts such a
resolution, the deduction does not apply to the next installment of
property taxes owed by the property owner or to any subsequent
installment of property taxes.
deduction that a property owner may receive with respect to real
property located in a county for a particular year equals the lesser
of:
(1) two million dollars ($2,000,000); or
(2) the product of:
(A) the increase in assessed value resulting from the
development, rehabilitation, or redevelopment; multiplied
by
(B) the percentage from the following table:
YEAR OF DEDUCTION
PERCENTAGE
1st 75%
2nd 50%
3rd 25%
(d) A property owner is not required to file an application to
qualify for a deduction under this section. The township assessor
shall:
(1) identify the real property eligible for the deduction to the
county auditor; and
(2) inform the county auditor of the deduction amount.
(e) The county auditor shall:
(1) make the deductions; and
(2) notify the county property tax assessment board of appeals
of all deductions approved;
under this section.
(f) The amount of the deduction determined under subsection
(c)(2) is adjusted to reflect the percentage increase or decrease in
assessed valuation that results from:
(1) a general reassessment of real property under IC 6-1.1-4-4;
or
(2) an annual adjustment under IC 6-1.1-4-4.5.
(g) If an appeal of an assessment is approved that results in a
reduction of the assessed value of the real property, the amount of
the deduction under this section is adjusted to reflect the
percentage decrease that results from the appeal.
(h) The deduction under this section does not apply to a facility
listed in IC 6-1.1-12.1-3(e).
Sec. 3. (a) For purposes of this section, an increase in the
assessed value of personal property is determined in the same
manner that an increase in the assessed value of new
manufacturing equipment is determined for purposes of
IC 6-1.1-12.1.
(b) This subsection applies only to personal property that the
owner installs after March 1, 2005, and before March 2, 2009.
Except as provided in sections 4, 5, and 8 of this chapter, an owner
that installs personal property other than inventory (as defined in
50 IAC 4.2-5-1, as in effect on January 1, 2005) that:
(1) was never before used by its owner for any purpose in
Indiana; and
(2) creates or retains employment;
is entitled to a deduction from the assessed value of the personal
property. For purposes of this subsection, personal property is
considered to be installed if the property is installed as described
in 50 IAC 10-1-2 (as in effect on January 1, 2005).
(c) The deduction under this section is first available in the year
in which the increase in assessed value resulting from the
installation of the personal property occurs and continues for the
following two (2) years. The amount of the deduction that a
property owner may receive with respect to personal property
located in a county for a particular year equals the lesser of:
(1) two million dollars ($2,000,000); or
(2) the product of:
(A) the increase in assessed value resulting from the
installation of the personal property; multiplied by
(B) the percentage from the following table:
YEAR OF DEDUCTION
PERCENTAGE
1st 75%
2nd 50%
3rd 25%
(d) If an appeal of an assessment is approved that results in a
reduction of the assessed value of the personal property, the
amount of the deduction is adjusted to reflect the percentage
decrease that results from the appeal.
(e) A property owner must claim the deduction under this
section on the owner's annual personal property tax return. The
township assessor shall:
(1) identify the personal property eligible for the deduction to
the county auditor; and
(2) inform the county auditor of the deduction amount.
(f) The county auditor shall:
(1) make the deductions; and
(2) notify the county property tax assessment board of appeals
of all deductions approved;
under this section.
Sec. 4. A property owner may not receive a deduction under this
chapter with respect to real property or personal property located
in an allocation area (as defined in IC 6-1.1-21.2-3).
Sec. 5. A property owner that qualifies for a deduction for a
year under this chapter and another statute with respect to the
same:
(1) real property development, redevelopment, or
rehabilitation; or
(2) personal property installation;
may not receive a deduction under both statutes for the
development, redevelopment, rehabilitation, or installation for that
year.
Sec. 6. An official may:
(1) review the creation or retention of employment from:
(A) the development, redevelopment, or rehabilitation of
real property; or
(B) the installation of personal property;
that qualifies a property owner for a deduction under this
chapter;
(2) determine whether the creation or retention of
employment described in subdivision (1) has occurred; and
(3) if the official determines under subdivision (2) that:
(A) the creation or retention of employment described in
subdivision (1) has not occurred; and
(B) the failure to create or retain employment was not
caused by factors beyond the control of the property owner
(such as declines in demand for the property owner's
products or services);
mail a written notice to the property owner of a hearing on the
termination of the deduction under this chapter.
Sec. 7. The written notice under section 6(3) of this chapter must
include the following:
(1) An explanation of the reasons for the determination that
the creation or retention of employment described in section
6(1) of this chapter has not occurred.
(2) The date, time, and place of a hearing to be conducted:
(A) by the official; and
(B) not more than thirty (30) days after the date of the
notice under section 6(3) of this chapter;
to further consider the property owner's creation or retention
of employment as described in section 6(1) of this chapter.
Sec. 8. On the date specified in the notice described in section
6(3) of this chapter, the official shall conduct a hearing for the
purpose of further considering the property owner's creation or
retention of employment as described in section 6(1) of this chapter.
Based on the information presented at the hearing by the property
owner and other interested parties, the official shall determine
whether the property owner has made reasonable efforts to create
or retain employment as described in section 6(1) of this chapter
and whether any failure to create or retain employment was caused
by factors beyond the control of the property owner. If the official
determines that the property owner has not made reasonable
efforts to create or retain employment, the official shall determine
that the property owner's deduction under this chapter is
terminated. If the official terminates the deduction, the deduction
does not apply to:
(1) the next installment of property taxes owed by the
property owner; or
(2) any subsequent installment of property taxes.
Sec. 9. If an official terminates a deduction under section 8 of
this chapter:
(1) the official shall immediately mail a certified copy of the
determination to:
(A) the property owner; and
(B) if the determination is made by the county assessor or
the township assessor, the county auditor;
(2) the county auditor shall:
(A) remove the deduction from the tax duplicate; and
(B) notify the county treasurer of the termination of the
deduction; and
(3) if the official's determination to terminate the deduction
occurs after the county treasurer has mailed the statement
required by IC 6-1.1-22-8, the county treasurer shall
immediately mail the property owner a revised statement that
reflects the termination of the deduction.
Sec. 10. A property owner whose deduction is terminated under
section 8 of this chapter may appeal the official's decision by filing
a complaint in the office of the clerk of the circuit or superior court
together with a bond conditioned to pay the costs of the appeal if
the appeal is determined against the property owner. The court
shall:
(1) hear an appeal under this section promptly without a jury;
and
(2) determine the appeal not later than thirty (30) days after
the date of the filing of the appeal.
The judgment of the court is final and conclusive unless an appeal
is taken as in other civil actions.
Sec. 11. If an appeal under section 10 of this chapter is pending,
the taxes resulting from the termination of the deduction are not
due until after the appeal is finally adjudicated and the termination
of the deduction is finally determined.
Sec. 12. If ownership of the real property or new personal
property changes, the deduction under this chapter continues to
apply to the real property or personal property, and the amount of
deduction is the product of:
(1) the percentage under section 2(c)(2)(B) or 3(c)(2)(B) of this
chapter that would have applied if the ownership of the
property had not changed; multiplied by
(2) the assessed value of the real property or personal
property for the year the new owner qualifies for the
deduction.
Sec. 13. The department of local government finance shall adopt
rules under IC 4-22-2 to implement this chapter.
assessed under this article.
(b) "Taxes" means property taxes payable in respect to property
assessed under this article. The term does not include special
assessments, penalties, or interest, but does include any special charges
which a county treasurer combines with all other taxes in the
preparation and delivery of the tax statements required under
IC 6-1.1-22-8(a).
(c) "Department" means the department of state revenue.
(d) "Auditor's abstract" means the annual report prepared by each
county auditor which under IC 6-1.1-22-5 is to be filed on or before
March 1 of each year with the auditor of state.
(e) "Mobile home assessments" means the assessments of mobile
homes made under IC 6-1.1-7.
(f) "Postabstract adjustments" means adjustments in taxes made
subsequent to the filing of an auditor's abstract which change
assessments therein or add assessments of omitted property affecting
taxes for such assessment year.
(g) "Total county tax levy" means the sum of:
(1) the remainder of:
(A) the aggregate levy of all taxes for all taxing units in a
county which are to be paid in the county for a stated
assessment year as reflected by the auditor's abstract for the
assessment year, adjusted, however, for any postabstract
adjustments which change the amount of the aggregate levy;
minus
(B) the sum of any increases in property tax levies of taxing
units of the county that result from appeals described in:
(i) IC 6-1.1-18.5-13(4) and IC 6-1.1-18.5-13(5) filed after
December 31, 1982; plus
(ii) the sum of any increases in property tax levies of taxing
units of the county that result from any other appeals
described in IC 6-1.1-18.5-13 filed after December 31, 1983;
plus
(iii) IC 6-1.1-18.6-3 (children in need of services and
delinquent children who are wards of the county); minus
(C) the total amount of property taxes imposed for the stated
assessment year by the taxing units of the county under the
authority of IC 12-1-11.5 (repealed), IC 12-2-4.5 (repealed),
IC 12-19-5, or IC 12-20-24; minus
(1) the total amount of:
(A) controlled property taxes imposed in the county that
does not exceed the sum of the controlled levy limits of each
political subdivision in the county, as determined under
IC 6-12;
(D) (B) that part of the total amount of property taxes to be
paid during the stated assessment year that will be used to pay
for interest or principal due on debt that:
(i) is entered into after December 31, 1983; before January
1, 1984;
(ii) is not debt that is issued under IC 5-1-5 to refund debt
incurred before January 1, 1984; and or
(iii) does not constitute constitutes debt entered into for the
purpose of building, repairing, or altering school buildings
for which the requirements of IC 20-5-52 were satisfied prior
to January 1, 1984; minus and
(E) the amount of property taxes imposed in the county for the
stated assessment year under the authority of IC 21-2-6
(repealed) or any citation listed in IC 6-1.1-18.5-9.8 for a
cumulative building fund whose property tax rate was initially
established or reestablished for a stated assessment year that
succeeds the 1983 stated assessment year; minus
(F) the remainder of:
(i) (C) that part of the total property taxes imposed in the
county for the stated assessment year a cumulative building
fund established or reestablished under authority of
IC 21-2-6 (repealed) or under any citation listed in
IC 6-1.1-18.5-9.8 (before its repeal) for a cumulative
building fund whose property tax rate was not initially
established or reestablished for a stated assessment year that
succeeds the 1983 stated assessment year; minus
(ii) to the total extent of the amount of property taxes
imposed in the county for the fund for the 1984 stated
assessment year; under the authority of IC 21-2-6 (repealed)
or any citation listed in IC 6-1.1-18.5-9.8 for a cumulative
building fund whose property tax rate was not initially
established or reestablished for a stated assessment year that
succeeds the 1983 stated assessment year; minus
(G) the amount of property taxes imposed in the county for the
stated assessment year under:
(i) IC 21-2-15 for a capital projects fund; plus
(ii) IC 6-1.1-19-10 for a racial balance fund; plus
(iii) IC 20-14-13 for a library capital projects fund; plus
(iv) IC 20-5-17.5-3 for an art association fund; plus
(v) IC 21-2-17 for a special education preschool fund; plus
(vi) IC 21-2-11.6 for a referendum tax levy fund; plus
(vii) an appeal filed under IC 6-1.1-19-5.1 for an increase in
a school corporation's maximum permissible general fund
levy for certain transfer tuition costs; plus
(viii) an appeal filed under IC 6-1.1-19-5.4 for an increase in
a school corporation's maximum permissible general fund
levy for transportation operating costs; minus
(H) the amount of property taxes imposed by a school
corporation that is attributable to the passage, after 1983, of a
referendum for an excessive tax levy under IC 6-1.1-19
including any increases in these property taxes that are
attributable to the adjustment set forth in IC 6-1.1-19-1.5 or
any other law; minus
(I) for each township in the county, the lesser of:
(i) the sum of the amount determined in IC 6-1.1-18.5-19(a)
STEP THREE or IC 6-1.1-18.5-19(b) STEP THREE,
whichever is applicable, plus the part, if any, of the
township's ad valorem property tax levy for calendar year
1989 that represents increases in that levy that resulted from
an appeal described in IC 6-1.1-18.5-13(4) filed after
December 31, 1982; or
(ii) the amount of property taxes imposed in the township for
the stated assessment year under the authority of
IC 36-8-13-4; minus
(J) for each participating unit in a fire protection territory
established under IC 36-8-19-1, the amount of property taxes
levied by each participating unit under IC 36-8-19-8 and
IC 36-8-19-8.5 less the maximum levy limit for each of the
participating units that would have otherwise been available
for fire protection services under IC 6-1.1-18.5-3 and
IC 6-1.1-18.5-19 for that same year; minus
(K) for each county, the sum of:
(i) the amount of property taxes imposed in the county for
the repayment of loans under IC 12-19-5-6 (repealed) that is
included in the amount determined under IC 12-19-7-4(a)
STEP SEVEN for property taxes payable in 1995, or for
property taxes payable in each year after 1995, the amount
determined under IC 12-19-7-4(b); and
(ii) the amount of property taxes imposed in the county
attributable to appeals granted under IC 6-1.1-18.6-3 that is
included in the amount determined under IC 12-19-7-4(a)
STEP SEVEN for property taxes payable in 1995, or the
amount determined under IC 12-19-7-4(b) for property taxes
payable in each year after 1995; plus
(2) all taxes to be paid in the county in respect to mobile home
assessments currently assessed for the year in which the taxes
stated in the abstract are to be paid. plus
(3) the amounts, if any, of county adjusted gross income taxes that
were applied by the taxing units in the county as property tax
replacement credits to reduce the individual levies of the taxing
units for the assessment year, as provided in IC 6-3.5-1.1; plus
(4) the amounts, if any, by which the maximum permissible ad
valorem property tax levies of the taxing units of the county were
reduced under IC 6-1.1-18.5-3(b) STEP EIGHT for the stated
assessment year; plus
(5) the difference between:
(A) the amount determined in IC 6-1.1-18.5-3(e) STEP FOUR;
minus
(B) the amount the civil taxing units' levies were increased
because of the reduction in the civil taxing units' base year
certified shares under IC 6-1.1-18.5-3(e).
(h) "December settlement sheet" means the certificate of settlement
filed by the county auditor with the auditor of state, as required under
IC 6-1.1-27-3.
(i) "Tax duplicate" means the roll of property taxes which each
county auditor is required to prepare on or before March 1 of each year
under IC 6-1.1-22-3.
(j) "Eligible property tax replacement amount" is equal to the sum
of the following:
(1) Sixty percent (60%) of the total county tax levy imposed by
each school corporation in a county for its general fund for a
stated assessment year.
(2) Twenty percent (20%) of the total county tax levy (less sixty
percent (60%) of the levy for the general fund of a school
corporation that is part of the total county tax levy) imposed in a
county on real property, other than real property that is
corporate property in an adopting county, for a stated
assessment year.
(3) Twenty percent (20%) of the total county tax levy (less sixty
percent (60%) of the levy for the general fund of a school
corporation that is part of the total county tax levy) imposed in a
county on tangible personal property, excluding business personal
property, for an assessment year.
(4) Eighteen percent (18%) of the total county tax levy (less
sixty percent (60%) of the levy for the general fund of a school
corporation that is part of the total county tax levy) imposed
in an adopting county on real property that is corporate
property for a stated assessment year.
(k) "Business personal property" means tangible personal property
(other than real property) that is being:
(1) held for sale in the ordinary course of a trade or business; or
(2) held, used, or consumed in connection with the production of
income.
(l) "Taxpayer's property tax replacement credit amount" means the
sum of the following:
(1) Sixty percent (60%) of a taxpayer's tax liability in a calendar
year for taxes imposed by a school corporation for its general fund
for a stated assessment year.
(2) Twenty percent (20%) of a taxpayer's tax liability for a stated
assessment year for a total county tax levy (less sixty percent
(60%) of the levy for the general fund of a school corporation that
is part of the total county tax levy) on real property, other than
real property in an adopting county that is corporate
property.
(3) Twenty percent (20%) of a taxpayer's tax liability for a stated
assessment year for a total county tax levy (less sixty percent
(60%) of the levy for the general fund of a school corporation that
is part of the total county tax levy) on tangible personal property
other than business personal property.
(4) Eighteen percent (18%) of the total county tax levy (less
sixty percent (60%) of the levy for the general fund of a school
corporation that is part of the total county tax levy) imposed
in an adopting county on real property that is corporate
property for a stated assessment year.
(m) "Tax liability" means tax liability as described in section 5 of
this chapter.
(n) "General school operating levy" means the ad valorem property
tax levy of a school corporation in a county for the school corporation's
general fund.
(o) "Adopting county" means a county that has adopted an
ordinance under IC 6-11-7 to fund the county's annual controlled
tax increase (as defined in IC 6-11-1-6) from county income taxes
for the year in which a particular taxpayer's property tax
replacement credit amount is available.
(p) "Corporate property" means tangible property in which one
(1) or more corporations have at least a fifty-one percent (51%)
direct or indirect ownership interest. For purposes of attributing
indirect ownership by a corporation to tangible property:
(1) the owners or beneficial owners through not more than six
(6) levels of limited liability partnerships, partnerships,
limited liability companies, or trusts that have a direct line of
ownership with a limited liability partnership, partnership,
limited liability company, or trust that owns tangible property
shall be attributed to the tangible property; but
(2) the following interests shall not be considered:
(A) Ownership of publically traded shares in an entity.
(B) Ownership by a corporation that is exempt from
income tax under Section 1363 of the Internal Revenue
Code and that complies with the requirements of
IC 6-3-4-13.
Indirect ownership shall be computed as determined under the
rules adopted under IC 4-22-2 by the department of local
government finance.
FOLLOWS [EFFECTIVE JANUARY 1, 2006]: Sec. 5. (a) Each year
the taxpayers of each county shall receive a credit for property tax
replacement in the amount of each taxpayer's property tax replacement
credit amount for taxes which:
(1) under IC 6-1.1-22-9 are due and payable in May and
November of that year; or
(2) under IC 6-1.1-22-9.5 are due in installments established by
the department of local government finance for that year.
The credit shall be applied to each installment of taxes. The dollar
amount of the credit for each taxpayer shall be determined by the
county auditor, based on data furnished by the department of local
government finance.
(b) The tax liability of a taxpayer for the purpose of computing the
credit for a particular year shall be based upon the taxpayer's tax
liability for that part of the total county tax levy imposed on the
property of the taxpayer as is evidenced by the tax duplicate for the
taxes payable in that year, plus the amount by which the tax payable by
the taxpayer had been reduced due to the application of county adjusted
gross income tax revenues to the extent the county adjusted gross
income tax revenues were included in the determination of the total
county tax levy for that year, as provided in sections 2(g) and 3 of this
chapter; adjusted, however, for any change in assessed valuation which
may have been made pursuant to a postabstract adjustment if the
change is set forth on the tax statement or on a corrected tax statement
stating the taxpayer's tax liability, as prepared by the county treasurer
in accordance with IC 6-1.1-22-8(a). However, except when using the
term under section 2(l)(1) of this chapter, the tax liability of a taxpayer
does not include the amount of any property tax owed by the taxpayer
that is attributable to that part of any property tax levy subtracted under
section 2(g)(1)(B), 2(g)(1)(C), 2(g)(1)(D), 2(g)(1)(E), 2(g)(1)(F),
2(g)(1)(G), 2(g)(1)(H), 2(g)(1)(I), 2(g)(1)(J), or 2(g)(1)(K) of this
chapter in computing the total county tax levy.
(c) The credit for taxes payable in a particular year with respect to
mobile homes which are assessed under IC 6-1.1-7 is equivalent to the
taxpayer's property tax replacement credit amount for the taxes payable
with respect to the assessments. plus the adjustments stated in this
section.
(d) Each taxpayer in a taxing district that contains all or part of an
economic development district that meets the requirements of section
5.5 of this chapter is entitled to an additional credit for property tax
replacement. This credit is equal to the product of:
(1) the STEP TWO quotient determined under section 4(a)(3) of
this chapter for the taxing district; multiplied by
(2) the taxpayer's taxes levied in the taxing district that are
allocated to a special fund under IC 6-1.1-39-5.
JANUARY 1, 2006]:
Chapter 45. Enterprise Zone Investment Deduction
Sec. 1. The definitions in this chapter apply throughout this
chapter.
Sec. 2. "Base year assessed value" equals the total assessed value
of the real and personal property assessed at an enterprise zone
location on the assessment date in the calendar year immediately
preceding the calendar year in which a taxpayer makes a qualified
investment with respect to the enterprise zone location.
Sec. 3. "Corporation" refers to the Indiana economic
development corporation established under IC 5-28-3-1.
Sec. 4. "Enterprise zone" refers to an enterprise zone created
under IC 5-28-15.
Sec. 5. "Enterprise zone location" means a lot, parcel, or tract
of land located in an enterprise zone.
Sec. 6. "Enterprise zone property" refers to real and tangible
personal property that is located within an enterprise zone on an
assessment date.
Sec. 7. As used in this chapter, "qualified investment" means
any of the following expenditures relating to an enterprise zone
location on which a taxpayer's zone business is located:
(1) The purchase of a building.
(2) The purchase of new manufacturing or production
equipment.
(3) Costs associated with the repair, rehabilitation, or
modernization of an existing building and related
improvements.
(4) Onsite infrastructure improvements.
(5) The construction of a new building.
(6) Costs associated with retooling existing machinery.
Sec. 8. "Zone business" has the meaning set forth in
IC 5-28-15-3.
Sec. 9. (a) A taxpayer that makes a qualified investment is
entitled to a deduction from the assessed value of the taxpayer's
enterprise zone property located at the enterprise zone location for
which the taxpayer made the qualified investment. The amount of
the deduction is equal to the remainder of:
(1) the total amount of the assessed value of the taxpayer's
enterprise zone property assessed at the enterprise zone
location on a particular assessment date; minus
(2) the total amount of the base year assessed value for the
enterprise zone location.
(b) To receive the deduction allowed under subsection (a) for a
particular year, a taxpayer must comply with the conditions set
forth in this chapter.
Sec. 10. (a) A taxpayer that desires to claim the deduction
provided by section 9 of this chapter for a particular year shall file
a certified application, on forms prescribed by the department of
local government finance, with the auditor of the county where the
property for which the deduction is claimed was located on the
assessment date. The application may be filed in person or by mail.
If mailed, the mailing must be postmarked on or before the last day
for filing. The application must be filed before May 10 of the
assessment year to obtain the deduction.
(b) A taxpayer shall include on an application filed under this
section all information that the department of local government
finance and the corporation require to determine eligibility for the
deduction provided under this chapter.
Sec. 11. (a) The county auditor shall determine the eligibility of
each applicant under this chapter and shall notify the applicant of
the determination before August 15 of the year in which the
application is made.
(b) A person may appeal the determination of the county auditor
under subsection (a) by filing a complaint in the office of the clerk
of the circuit or superior court not later than forty-five (45) days
after the county auditor gives the person notice of the
determination.
Sec. 12. A taxpayer may not claim a deduction under this
chapter for more than ten (10) years.
receipts tax under IC 6-2.3-5-6 and the utility services are
consumed for the purpose for which the utility services
deduction was given.
Sec. 5. A person is entitled to a credit against the utility receipts
use tax imposed on the retail consumption of utility services equal
to the amount, if any, of utility receipts tax paid to another state.
Payment of a general sales tax, purchase tax, or use tax to another
state does not qualify for a credit under this section.
Sec. 6. The person who consumes utility services is personally
liable for the use tax.
Sec. 7. The department shall establish procedures for the
collection of the utility services use tax from users and providers,
including provider registration requirements, deposit and
reporting requirements, deposit dates, and reporting dates. Failure
to comply with the procedures is subject to the penalties in
IC 6-8.1.
Sec. 8. The person liable for the utility services use tax shall pay
the tax to the provider from whom the person acquired the utility
services, and the provider shall collect the tax as an agent for the
state, if the provider has departmental permission to collect the tax.
In all other cases, the person shall pay the use tax to the
department.
Sec. 9. The department may require any provider of utility
services to register under this chapter.
Sec. 10. When a provider collects the utility services use tax
from a person, the provider shall, upon request, issue a receipt to
that person for the utility receipts use tax collected.
Sec. 11. If:
(1) the department assesses the utility services use tax against
a person for the person's retail consumption of utility services;
and
(2) the person has already paid the utility services use tax in
relation to the utility services to a provider permitted to
collect the utility services use tax under section 8 of this
chapter, the person may avoid paying the utility services use
tax to the department if the person can produce a receipt or
other written evidence showing that the person paid the utility
services use tax to the provider.
equipment" means tangible personal property that:
(1) consists of or is a combination of:
(A) laboratory equipment;
(B) computers;
(C) computer software;
(D) telecommunications equipment; or
(E) testing equipment;
(2) has not previously been used in Indiana for any purpose;
and
(3) is acquired by the purchaser for the purpose of research
and development activities devoted directly and exclusively to
experimental or laboratory research and development for:
(A) new products;
(B) new uses of existing products; or
(C) improving or testing existing products.
(c) A retail transaction:
(1) involving research and development equipment; and
(2) occurring after June 30, 2007;
is exempt from the state gross retail tax.
the installments as provided by Section 6654 of the Internal Revenue
Code. However, in applying Section 6654 of the Internal Revenue Code
for the purposes of this article, "estimated tax" means the amount which
the individual estimates as the amount of the adjusted gross income tax
imposed by this article for the taxable year, minus the amount which
the individual estimates as the sum of any credits against the tax
provided by IC 6-3-3.
(c) Every individual who has adjusted gross income subject to the
tax imposed by this article and from which tax is not withheld under the
requirements of section 8 of this chapter shall make a declaration of
estimated tax for the taxable year. However, no such declaration shall
be required if the estimated tax can reasonably be expected to be less
than four hundred dollars ($400). In the case of an underpayment of the
estimated tax as provided in Section 6654 of the Internal Revenue
Code, there shall be added to the tax a penalty in an amount prescribed
by IC 6-8.1-10-2.1(b).
(d) Every corporation subject to the adjusted gross income tax
liability imposed by this article shall be required to report and pay an
estimated tax equal to twenty-five percent (25%) of such corporation's
estimated adjusted gross income tax liability for the taxable year. A
taxpayer who uses a taxable year that ends on December 31 shall file
the taxpayer's estimated adjusted gross income tax returns and pay the
tax to the department on or before April 20, June 20, September 20, and
December 20 of the taxable year. If a taxpayer uses a taxable year that
does not end on December 31, the due dates for filing estimated
adjusted gross income tax returns and paying the tax are on or before
the twentieth day of the fourth, sixth, ninth, and twelfth months of the
taxpayer's taxable year. The department shall prescribe the manner and
forms for such reporting and payment.
(e) The penalty prescribed by IC 6-8.1-10-2.1(b) shall be assessed
by the department on corporations failing to make payments as required
in subsection (d) or (g). However, no penalty shall be assessed as to any
estimated payments of adjusted gross income tax which equal or
exceed:
(1) twenty percent (20%) of the final tax liability for such taxable
year; or
(2) twenty-five percent (25%) of the final tax liability for the
taxpayer's previous taxable year.
thousand dollars ($1,000).
(b) The department may require any entity to make the entity's
monthly remittance and file the entity's monthly return twenty (20) days
(rather than thirty (30) days) after the end of each month for which a
return and payment are made if the department estimates that the
entity's average monthly payment for the current calendar year will
exceed one thousand dollars ($1,000).
(c) If a person files a combined sales and withholding tax report and
either this section or IC 6-2.5-6-1 requires the sales or withholding tax
report to be filed and remittances to be made within twenty (20) days
after the end of each month, then the person shall file the combined
report and remit the sales and withholding taxes due within twenty (20)
days after the end of each month.
(d) If the department determines that an entity's:
(1) estimated monthly withholding tax remittance for the current
year; or
(2) average monthly withholding tax remittance for the preceding
year;
exceeds ten thousand dollars ($10,000), the entity shall remit the
monthly withholding taxes due by electronic fund transfer (as defined
in IC 4-8.1-2-7) or by delivering in person or by overnight courier a
payment by cashier's check, certified check, or money order to the
department. The transfer or payment shall be made on or before the
date the remittance is due.
(e) Subject to subsection (f), if an entity's withholding tax
remittance is made by electronic fund transfer, the entity is not required
to file a monthly withholding tax return.
(f) The reports required by the department to administer the
county income tax under IC 6-11-11 shall be filed on the schedule
determined by the department.
(as defined in Section 41(c) of the Internal Revenue Code before
January 1, 1990).
"Indiana qualified research expense" means qualified research
expense that is incurred for research conducted in Indiana.
"Qualified research expense" means qualified research expense (as
defined in Section 41(b) of the Internal Revenue Code as in effect on
January 1, 2001).
"Pass through entity" means:
(1) a corporation that is exempt from the adjusted gross income
tax under IC 6-3-2-2.8(2);
(2) a partnership;
(3) a limited liability company; or
(4) a limited liability partnership.
"Research expense tax credit" means a credit provided under this
chapter against any tax otherwise due and payable under IC 6-3.
"Taxpayer" means an individual, a corporation, a limited liability
company, a limited liability partnership, a trust, or a partnership that has
any tax liability under IC 6-3 (adjusted gross income tax).
year.
STEP TWO: Multiply the lesser of:
(A) one million dollars ($1,000,000); or
(B) the STEP ONE remainder;
by fifteen percent (15%).
STEP THREE: If the STEP ONE remainder exceeds one
million dollars ($1,000,000), multiply the amount of that
excess by ten percent (10%).
STEP FOUR: Add the STEP TWO and STEP THREE
products.
is not entitled to a credit for providing qualified investment capital to
a qualified Indiana business after December 31, 2008. However, this
subsection may not be construed to prevent a taxpayer from carrying
over to a taxable year beginning after December 31, 2008, an unused
tax credit attributable to an investment occurring before January 1,
2009.
($10,000,000); ($12,500,000);
the department of commerce shall certify the taxpayer's proposed
investment plan.
(d) To receive a credit under this chapter, the taxpayer must provide
qualified investment capital to a qualified Indiana business according
to the taxpayer's certified investment plan within two (2) years after the
date on which the department of commerce certifies the investment
plan.
(e) Upon making the investment required under subsection (d), the
taxpayer shall provide proof of the investment to the department of
commerce.
(f) Upon receiving proof of a taxpayer's investment under subsection
(e), the department of commerce shall issue the taxpayer a certificate
indicating that the taxpayer has fulfilled the requirements of the
department of commerce and that the taxpayer is entitled to a credit
under this chapter.
(g) A taxpayer forfeits the right to a tax credit attributable to an
investment certified under subsection (c) if the taxpayer fails to make
the proposed investment within the period required under subsection
(d).
in Indiana for:
(1) the purchase of new telecommunications, production,
manufacturing, fabrication, assembly, extraction, mining,
processing, refining, or finishing equipment;
(2) the purchase of new computers and related equipment;
(3) costs associated with the modernization of existing
telecommunications, production, manufacturing, fabrication,
assembly, extraction, mining, processing, refining, or finishing
facilities;
(4) onsite infrastructure improvements;
(5) the construction of new telecommunications, production,
manufacturing, fabrication, assembly, extraction, mining,
processing, refining, or finishing facilities;
(6) costs associated with retooling existing machinery and
equipment; and
(7) costs associated with the construction of special purpose
buildings and foundations for use in the computer, software,
biological sciences, or telecommunications industry; and
(8) costs associated with the purchase, before January 1, 2008,
of machinery, equipment, or special purpose buildings used to
make motion pictures or audio productions;
that are certified by the corporation under this chapter as being eligible
for the credit under this chapter.
(b) The term does not include property that can be readily moved
outside Indiana.
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 15. (a) A taxpayer may
carry forward an unused credit for not more than nine (9) five (5)
consecutive taxable years beginning with the taxable year after the
taxable year in which the taxpayer makes the qualified investment.
(b) The amount that a taxpayer may carry forward to a particular
taxable year under this section equals the lesser of the following:
(1) The taxpayer's state tax liability growth.
(2) The unused part of a credit allowed under this chapter.
(c) A taxpayer may:
(1) claim a tax credit under this chapter for a qualified investment;
and
(2) carry forward a remainder for one (1) or more different
qualified investments;
in the same taxable year.
(d) The total amount of each tax credit claimed under this chapter
may not exceed thirty ten percent (30%) (10%) of the qualified
investment for which the tax credit is claimed.
the county supplemental auto rental excise tax imposed under
subsection (c) in a special fund, which may be used only for the
payment of the obligations described in this subsection.
(c) (e) If a city-county council adopts an ordinance under subsection
(a) or (c), the city-county council shall immediately send a certified
copy of the ordinance to the commissioner of the department of state
revenue.
(d) (f) If a city-county council adopts an ordinance under subsection
(a) or (c) prior to June 1, the county supplemental auto rental excise tax
applies to auto rentals after June 30 of the year in which the ordinance
is adopted. If the city-county council adopts an ordinance under
subsection (a) or (c) on or after June 1, the county supplemental auto
rental excise tax applies to auto rentals after the last day of the month
in which the ordinance is adopted.
bartered, given away, or otherwise disposed of within the state of
Indiana (other than to a manufacturer of cigarettes for use by him the
manufacturer in the manufacture of cigarettes), the following taxes are
imposed, and shall be collected and paid as provided in this chapter:
(1) On fifty (50) papers or less, a tax of one-half cent ($0.005).
(2) On more than fifty (50) papers but not more than one hundred
(100) papers, a tax of one cent ($0.01).
(3) On more than one hundred (100) papers, one-half cent
($0.005) for each fifty (50) papers or fractional part thereof.
(4) On tubes, one cent ($0.01) for each fifty (50) tubes or
fractional part thereof.
post a bond or letter of credit under subsection (b).
pursuant to IC 5-1-17-26(b), the capital improvement board of
managers or its designee shall deposit the revenues received under
this subsection in a special fund, which may be used only for the
payment of the obligations described in this subsection.
authority or any state agency pursuant to IC 5-1-17-26(b), the
capital improvement board of managers or its designee shall
deposit the revenues received from that portion of the county food
and beverage tax imposed under section 5(b) of this chapter in a
special fund, which may be used only for the payment of the
obligations described in this section.
adopted.
price paid is for a single admission, for season tickets, or for any other
admission arrangement. In addition, the person shall collect the tax as
an agent of the state and the county in which the facility described in
section 1 of this chapter is located.
(c) A person who is liable for the tax imposed under section 1 of
this chapter is entitled to a credit against that part of the tax
liability due under section 2(b)(1) of this chapter if:
(1) the tax liability is with respect to attendance at a
professional sporting event described in section 1 of this
chapter;
(2) the event is conducted at a facility that was financed,
constructed, or acquired in the manner provided by
IC 5-1-17; and
(3) the professional sports team conducting the event has
contributed or agreed to make payments to the capital
improvement board of managers or its designee that are
sufficient, as determined by the Indiana stadium and
convention building authority, to replace all or part of the tax
liability due under section 2(b)(1) of this chapter that would
otherwise be required to enable the capital improvement
board of managers to meet any current or future obligations
owed to the Indiana stadium and convention building
authority created by IC 5-1-17 or any state agency pursuant
to a lease or other agreement entered into between the capital
improvement board of managers and the Indiana stadium and
convention building authority or any state agency pursuant to
IC 5-1-17-26(b).
(d) The budget agency shall:
(1) in consultation with the Indiana stadium and convention
building authority and the department of state revenue,
establish a method for computing the amount of the credit
described in subsection (c); and
(2) submit the method established under subdivision (1) to the
budget committee for its review and recommendation.
Beverage Tax Funding
Sec. 1. This chapter applies to Boone, Johnson, Hamilton,
Hancock, Hendricks, Morgan, and Shelby counties (referred to as
counties in this chapter) and to the city or town of Avon, Carmel,
Fishers, Franklin, Greenfield, Greenwood, Lebanon, Martinsville,
Noblesville, and Westfield that are located in those counties
(referred to as political subdivisions in this chapter) .
Sec. 2. The definitions in IC 6-9-12-1 and IC 36-1-2 apply
throughout this chapter.
Sec. 3 As used in this chapter, "authority" refers to the Indiana
stadium and convention building authority created by IC 5-1-17.
Sec. 4. As used in this chapter, "capital improvement board"
means the capital improvement board of managers created by
IC 36-10-9-3.
Sec. 5. (a) Except as provided in subsection (d), the fiscal body
of a county may adopt an ordinance no later than July 31, 2005, to
impose an excise tax, known as the food and beverage tax, on those
transactions described in sections 8 and 9 of this chapter that occur
anywhere within the county.
(b) Except as provided in subsection (d), if the county in which
the political subdivision is located has adopted an ordinance
imposing an excise tax under subsection (a), the fiscal body of a
political subdivision may adopt an ordinance no later than
September 30, 2005, to impose an excise tax, known as the food and
beverage tax, on those transactions described in sections 8 and 9 of
this chapter that occur anywhere within the political subdivision.
(c) The rate of the tax imposed under this chapter equals one
percent (1%) of the gross retail income on the transaction. With
respect to an excise tax in the political subdivisions set forth in
IC 6-9-27-1(1) (Mooresville), IC 6-9-27-1(3) (Plainfield) and
IC 6-9-27-1(4) (Brownsburg), the excise tax imposed by the county
is in addition to the food and beverage tax imposed by those
political subdivisions. With respect to an excise tax imposed by a
county under subsection (a), the excise tax imposed by a political
subdivision under subsection (b) is in addition to the food and
beverage tax imposed by the county in which the political
subdivision is located. For the purposes of this chapter, the gross
retail income received by the retail merchant from such a
transaction does not include the amount of tax imposed on the
transaction under IC 6-2.5, IC 6-9-27, or this chapter.
(d) If the Marion County city-county council does not adopt all
the ordinances required to be adopted by it under IC 5-1-17-25 on
or before June 30, 2005, the counties and political subdivisions
described in section 1 of this chapter are no longer subject to the
provisions of this chapter. In that event, the fiscal body of the
county or political subdivision may not adopt an ordinance to
impose the excise tax authorized by this chapter, and any ordinance
adopted by the fiscal body under subsection (a) or (b) is no longer
effective.
Sec. 6. If a fiscal body adopts an ordinance under section 5 of
this chapter, the clerk shall immediately send a certified copy of the
ordinance to the commissioner of the department of state revenue.
Sec. 7. If a fiscal body adopts an ordinance under section 5 of
this chapter, the food and beverage tax applies to transactions that
occur after July 31, 2005.
Sec. 8. Except as provided in section 10 of this chapter, a tax
imposed under section 5 of this chapter applies to any transaction
in which food or beverage is furnished, prepared, or served:
(1) for consumption at a location, or on equipment, provided
by a retail merchant;
(2) in the county or political subdivision, or both, in which the
tax is imposed; and
(3) by a retail merchant for consideration.
Sec. 9. Transactions described in section 8(1) of this chapter
include transactions in which food or beverage is:
(1) served by a retail merchant off the merchant's premises;
(2) food sold in a heated state or heated by a retail merchant;
(3) two (2) or more food ingredients mixed or combined by a
retail merchant for sale as a single item (other than food that
is only cut, repackaged, or pasteurized by the seller, and eggs,
fish, meat, poultry, and foods containing these raw animal
foods requiring cooking by the consumer as recommended by
the federal Food and Drug Administration in chapter 3,
subpart 3-401.11 of its Food Code so as to prevent food borne
illnesses); or
(4) food sold with eating utensils provided by a retail
merchant, including plates, knives, forks, spoons, glasses,
cups, napkins, or straws (for purposes of this subdivision, a
plate does not include a container or packaging used to
transport the food).
Sec. 10. The food and beverage tax under this chapter does not
apply to the furnishing, preparing, or serving of any food or
beverage in a transaction that is exempt, or to the extent exempt,
from the state gross retail tax imposed by IC 6-2.5.
Sec. 11. The tax that may be imposed under this chapter shall be
imposed, paid, and collected in the same manner that the state
gross retail tax is imposed, paid, and collected under IC 6-2.5.
However, the return to be filed for the payment of the taxes may be
made on separate returns or may be combined with the return filed
for the payment of the state gross retail tax, as prescribed by the
department of state revenue.
Sec. 12. (a) So long as there are any current or future obligations
owed by the capital improvement board to the authority or any
state agency under a lease or other agreement entered into between
the capital improvement board and the authority or any state
agency pursuant to IC 5-1-17-26(b), fifty percent (50%) of the
amounts received from the taxes imposed under this chapter by
counties shall be paid monthly by the treasurer of state to the
treasurer of the capital improvement board or its designee upon
warrants issued by the auditor of state and the remainder shall be
paid monthly by the treasurer of state to the county fiscal officer
upon warrants issued by the auditor of state. In any state fiscal
year, if the aggregate amount of the taxes imposed under this
chapter by all the counties and paid to the treasurer of the capital
improvement board or its designee under this subsection equals
five million dollars ($5,000,000), the entire remainder of the taxes
imposed by a county under this chapter during that state fiscal year
shall be paid by the treasurer of state to the fiscal officer of the
county, upon warrants issued by the auditor of state.
(b) If there are then existing no obligations of the capital
improvement board described in subsection (a), the entire amount
received from the taxes imposed by a county under this chapter
shall be paid monthly by the treasurer of state to the county fiscal
officer upon warrants issued by the auditor of state.
December 31, 2009, and before December 1, 2010, or any year
thereafter, that repeals the ordinance adopted under section 5 of
this chapter.
(b) An ordinance adopted under subsection (a) takes effect
January 1 immediately following the date of its adoption. If the
fiscal body adopts such an ordinance, the clerk shall immediately
send a certified copy of the ordinance to the commissioner of the
department of state revenue.
Sec. 16. With respect to obligations of the capital improvement
board described in section 12(a) of this chapter and bonds, leases,
or other obligations for which a pledge has been made under
section 14 of this chapter, the general assembly covenants with the
holders of these obligations that:
(1) this chapter will not be repealed or amended in any
manner that will adversely affect the imposition or collection
of the tax imposed under this chapter; and
(2) this chapter will not be amended in any manner that will
change the purpose for which revenues from the tax imposed
under this chapter may be used;
as long as the payment of any of those obligations is outstanding.
of a budget, tax, or tax rate under IC 6-13.
Sec. 6. "Controlled" means that a tax or tax rate is subject to the
limitations imposed under IC 6-12. The term applies only to the
following taxes:
(1) Property taxes (other than property taxes that qualify as
excluded taxes).
(2) County income taxes (other than county income taxes that
qualify as excluded taxes).
Sec. 7. "Controlled levy limit" refers to the maximum amount
of controlled property taxes that are eligible for a state distribution
under IC 6-1.1-21 to replace revenue lost from the granting of
homestead credits under IC 6-1.1-20.9 and property tax
replacement credits under IC 6-1.1-21-5.
Sec. 8. "Controlled tax limit" refers to the maximum total
combination of controlled property taxes and controlled income
taxes that may be imposed in a county in a year for a political
subdivision, as determined under IC 6-12.
Sec. 9. "Council" refers to the county income tax council
established in a county under IC 6-11-3.
Sec. 10. "County's total allowable tax increase amounts" refers
to the sum of the annual controlled tax increases allowed in a
county for each year after 2005.
Sec. 11. "Department" refers to the department of local
government finance.
Sec. 12. "Eligible civil taxing unit" refers to a political
subdivision eligible for a distribution of excluded taxes imposed
under IC 6-11-8.
Sec. 13. "Excluded taxes" refers to any part of a:
(1) property tax levy or property tax rate; or
(2) county income tax or county income tax rate;
that is not subject to the limitations imposed under IC 6-12.
Sec. 14. "Imposed" refers:
(1) with respect to a property tax, the year in which the
property tax is first due and payable (or would be first due
and payable if the statement for the property taxes had been
mailed before the date specified in IC 6-1.1-22-8); and
(2) with respect to an income tax, the year in which the tax is
imposed on adjusted gross income regardless of when the tax
is due.
Sec. 15. "Out-of-state resident", as it relates to a particular
county, means an individual who:
(1) is not a resident of the county on the date specified in
IC 6-11-4;
(2) maintains the individual's principal place of business or
employment in the county on the date specified in IC 6-11-4;
and
(3) is not a resident of another Indiana county on the date
specified in IC 6-11-4.
Sec. 16. "Political subdivision's total allowable tax increase
amount" refers to the sum of the annual controlled tax increases
allowed in a county for a particular political subdivision for each
year after 2005.
Sec. 17. "Property tax" refers to an ad valorem property tax.
Sec. 18. "Rainy day fund" refers to a political subdivision's
rainy day fund established under IC 36-1-8-5.1.
Sec. 19. "Resident", as it relates to a particular county, means
an individual who resides in the county on the date specified in
IC 6-11-4.
Sec. 20. "Tax" refers to a county income tax.
Sec. 21. "Taxable property" means all tangible property that is
subject to the tax imposed by IC 6-1.1 and is not exempt from the
tax under IC 6-1.1-10 or any other law.
Sec. 22. "Taxpayer" refers to an individual who has tax liability
in a county.
Chapter 2. Exempt Political Subdivisions
Sec. 1. This article does not apply to a political subdivision that
does not have the power to impose a property tax.
Sec. 2. A political subdivision that is exempted by this chapter
from the application of this article is not eligible for an allocation
of county income taxes. However, a political subdivision that is
eligible for an allocation of county income taxes may assign any
part of the political subdivision's allocation to an entity that is not
eligible for an allocation under this article.
Chapter 3. County Income Tax Council
Sec. 1. A council is established for each county in Indiana.
Sec. 2. The membership of each council consists of:
(1) the fiscal body of the county;
(2) the fiscal body of each city or town that lies either partially
or entirely in the county; and
(3) the fiscal body of each school corporation that lies partially
or entirely in the county.
Sec. 3. (a) Every council has a total of one hundred fifty (150)
votes. The county and each city and town that is located in any part
in the county is allocated a percentage of a total one hundred (100)
votes that may be cast. Each school corporation that is located in
any part in the county is allocated a percentage of a total of fifty
(50) votes that may be cast.
(b) Subject to subsection (d), the percentage of votes that a city
or town is allocated for a year equals the same percentage that the
population of the city or town bears to the population of the county.
In the case of a city or town that lies within more than one (1)
county, the county auditor of each county shall base the allocations
required by subsection (a) on the population of that part of the city
or town that lies within the county for which the allocations are
being made.
(c) Subject to subsection (d), the percentage that the county is
allocated for a year equals the same percentage that the population
of all areas in the county not located in a city or town bears to the
population of the county.
(d) In the case of Marion County, the county, the consolidated
city, all included towns (as described in IC 36-3-1-7), and the
remainder of the county that is not in an excluded city (as
described in IC 36-3-1-7) shall be treated as one (1) political
subdivision whose fiscal body is the fiscal body of the consolidated
city.
(e) The percentage of votes that a school corporation is allocated
for a year equals the same percentage that the population of the
school corporation in the county has to the total population of the
county.
(f) On or before January 1 of each year (or in 2005, before July
2), the county auditor shall certify to each member of the council
the number of votes, rounded to the nearest one hundredth (0.01),
the council has for that year.
Sec. 4. A council takes an action by adopting an ordinance.
Sec. 5. Except as otherwise provide in this article, a council may
adopt an ordinance to amend or rescind a previously adopted
ordinance
Sec. 6. A member of the council may exercise its votes on the
council for or against a proposed ordinance by:
(1) passing a resolution that contains the text of an ordinance
being proposed to the council; and
(2) transmitting the resolution to the county auditor of the
county.
Sec. 7. A resolution passed by a member of the council exercises
all of the votes of the member. Except as permitted by the
department, the votes on a resolution may not be changed during
the year.
Sec. 8. A resolution must be substantially in the following
general form:
"The (insert name of political subdivision's fiscal body) casts its
(insert number of political subdivision's votes) votes (for or against)
the proposed ordinance of the (insert name of the county) County
Income Tax Council, which reads as follows:
(Insert text of ordinance being proposed to members of the
council)".
Sec. 9. The text of a resolution and a proposed ordinances
contained in a resolution must be substantially in the form
prescribed by the department.
Sec. 10. A proposed ordinance adopting, increasing, or
decreasing a tax rate must state that the tax rate in the proposed
ordinance is subject to adjustment by the department before
November 1 of the year, as necessary, to correct any error in the
data or computations on which the estimated tax rate is based or
to reflect changes in the department's forecast of economic
conditions that will affect the amount of taxes raised by the tax
rate.
Sec. 11. Subject to this article, a council may adopt an ordinance
to do any of the following:
(1) Adopt, amend, or rescind an ordinance adopted under
IC 6-11-7-10.
(2) Adopt a tax and set a tax rate for the county under
IC 6-11-8 or IC 6-11-9.
(3) Increase or decrease a tax rate imposed in the county
under IC 6-11-8 or IC 6-11-9.
(4) Rescind a tax imposed under IC 6-11-8 or IC 6-11-9 in the
county.
(5) Adopt, amend, or rescind any other action authorized
under this article.
Sec. 12. An ordinance adopted by the council before September
16 initially applies to the ensuing year. Unless waived by the
department for good cause, an ordinance adopted after September
15 in a year initially applies to the year following the year of
adoption by two (2) years.
Sec. 13. Except as provided by this article, an ordinance adopted
by a council remains in effect until the earlier of:
(1) the date specified in the ordinance; or
(2) the date on which a subsequent ordinance amending or
rescinding the ordinance is effective.
Sec. 14. Any member of the council may present a proposed
ordinance to the council for passage.
Sec. 15. (a) A member of the council may present an ordinance
to the council for passage by:
(1) providing:
(A) in the case of a resolution for a proposed ordinance
under IC 6-11-7-10, the county auditor and the fiscal
officer of each member of the council; and
(B) the public;
with notice of the date, time, and place that a public hearing
will be held on a resolution proposing an ordinance to the
council;
(3) conducting the public hearing; and
(4) after the hearing, passing the resolution proposing the
ordinance.
(b) The notice required by subsection (a) must be given in
accordance with IC 5-3-1.
Sec. 16. (a) This section applies only to the hearing conducted
for a proposed ordinance under IC 6-11-7-10.
(b) Notice must be given under:
(1) section 15(1)(A) of this chapter before August 2; and
(2) section 15(1)(B) of this chapter before August 7;
to be effective for the ensuing year.
(c) The hearing required under section 15 of this chapter must
be conducted as part of the hearing required under IC 6-13-6.
Sec. 17. After passing a resolution proposing an ordinance, a
member initiating the proposed ordinance shall distribute a copy
of the proposed ordinance to the county auditor of the county and
a certified tally of the member's vote on the proposed ordinance.
The county auditor shall treat any proposed ordinance presented
to the county auditor under this section as a casting of all that
member's votes in favor of the proposed ordinance.
Sec. 18. The county auditor shall deliver copies of a proposed
ordinance that is received from a member under section 17 of this
chapter to all the other members of the council not later than ten
(10) days after receiving the proposed ordinance.
Sec. 19. (a) Once a member receives a resolution containing a
proposed ordinance from the county auditor, the member shall:
(1) provide the public with notice of the date, time, and place
a public hearing will be held on the proposed ordinance;
(2) conduct the hearing, except for a resolution for a proposed
ordinance under IC 6-11-7-10 if a hearing has been conducted
as required in section 16 of this chapter; and
(3) vote on the proposed ordinance;
not later than thirty (30) days after receipt of the proposed
ordinance.
(b) The notice required by subsection (a) must be given in
accordance with IC 5-3-1.
Sec. 20. After voting on a resolution concerning a proposed
ordinance received under section 17 of this chapter, a member
voting on the proposed ordinance shall distribute a copy of the
proposed ordinance and a certified tally of the member's vote on
the proposed ordinance to the county auditor.
Sec. 21. The county auditor shall record all votes taken on
ordinances presented to the members of the council for a vote.
Sec. 22. The county auditor shall treat the ordinance as adopted
if the proposed ordinance receives at least seventy-six (76) votes
from the members of the council.
Sec. 23. If the council adopts an ordinance, the county auditor
shall immediately send a certified copy of the:
(1) ordinance; and
(2) results of the vote on the ordinance;
to the department and the department of state revenue by certified
mail.
Sec. 24. Not later than ten (10) days after an ordinance is
adopted, the county auditor shall publish a notice of the action
under IC 5-3-1.
Chapter 4. Determination of Residency
Sec. 1. For purposes of this article, an individual shall be treated
as a resident of the county in which the individual:
(1) maintains a home, if the individual maintains only one (1)
home in Indiana;
(2) if subdivision (1) does not apply, is registered to vote;
(3) if subdivision (1) or (2) does not apply, registers the
individual's personal automobile; or
(4) if subdivision (1), (2), or (3) does not apply, spends the
majority of the individual's time spent in Indiana during the
taxable year in question.
Sec. 2. Subject to section 3 of this chapter, the residence or
principal place of business or employment of an individual is to be
determined on January 1 of the year in which the individual's
taxable year commences. If an individual changes the location of
the individual's residence or principal place of employment or
business to another county in Indiana during a year, the
individual's liability for the tax is not affected.
Sec. 3. If an individual becomes a resident for purposes of
IC 36-7-27 during a year because the individual:
(1) changes the location of the individual's residence to a
county in which the individual begins employment or business
at a qualified economic development tax project (as defined in
IC 36-7-27-9); or
(2) changes the location of the individual's principal place of
employment or business to a qualified economic development
tax project and does not reside in another county in which the
tax is in effect;
the individual's adjusted gross income attributable to employment
or business at the qualified economic development tax project is
taxable only by the county containing the qualified economic
development tax project.
Chapter 5. Exempt Taxpayers
Sec. 1. A council may pass an ordinance to enter into reciprocity
agreements with the taxing authority of a city, town, municipality,
county, or other similar local governmental entity of any other
state. A reciprocity agreement must provide that the income of
Indiana residents is exempt from income taxation by the other local
governmental entity to the extent income of the out-of-state
residents who reside in the other local governmental entity is
exempt from the tax in the Indiana county entering into the
agreement.
Sec. 2. A reciprocity agreement adopted under this section may
not become effective until it is also made effective in the other local
governmental entity that is a party to the agreement.
Sec. 3. The form and effective date of any reciprocity agreement
described in this section must be approved by the department of
state revenue.
Chapter 6. Imposition of Tax
Sec. 1. A county income tax is imposed in each county.
Sec. 2. The tax is imposed on the adjusted gross income of:
(1) each resident of; and
(2) each out-of-state resident who maintains the individual's
principal place of business or employment in;
the county for which the council is established.
Sec. 3. The tax on an out-of-state resident may be imposed only
on the part of the out-of-state resident's adjusted gross income that
is derived from the individual's principal place of business or
employment.
Sec. 4. In the case of a resident of Perry County, the tax may not
be imposed on the part of the individual's adjusted gross income
that is:
(1) earned in a county that is:
(A) located in another state; and
(B) adjacent to the county in which the taxpayer resides;
and
(2) subject to an income tax imposed by a county, city, town,
or other local governmental entity in the other state.
Sec. 5. The tax rate imposed in a county is the sum of the
following:
(1) The tax rate imposed under IC 6-11-7.
(2) The tax rate imposed under IC 6-11-8.
(3) The tax rate imposed under IC 6-11-9.
Sec. 6. If for any taxable year a taxpayer is subject to different
tax rates for the tax imposed by a particular county, the taxpayer's
tax rate for the county and that taxable year is the rate determined
in STEP THREE of the following STEPS:
STEP ONE: Multiply the number of months in the taxpayer's
taxable year that precede July 1 by the rate in effect before
the rate change.
STEP TWO: Multiply the number of months in the taxpayer's
taxable year that follow June 30 by the rate in effect after the
rate change.
STEP THREE: Divide the sum of the amounts determined
under STEPS ONE and TWO by twelve (12).
Sec. 7. If the tax is not in effect during a taxpayer's entire
taxable year, the amount of tax that the taxpayer owes for that
taxable year equals the product of:
(1) the amount of tax the taxpayer would owe if the tax had
been imposed during the taxpayer's entire taxable year;
multiplied by
(2) a fraction. The numerator of the fraction equals the
number of days in the taxpayer's taxable year during which
the county option income tax was in effect. The denominator
of the fraction equals the total number of days in the
taxpayer's taxable year.
However, if the taxpayer files state income tax returns on a year
basis, the fraction to be applied under this section is one-half (1/2).
Chapter 7. Tax Rate to Fund Controlled Tax Increases
Sec. 1. Except as provided in section 10 of this chapter, in each
year, in addition to the part of the tax rate in effect in the county
under IC 6-11-8 or IC 6-11-9, or both, a tax is imposed in each
county at the rate necessary to raise the county's total allowable tax
increase amount.
Sec. 2. The department, with the assistance of the department of
state revenue and the budget agency, shall establish the rate
required under section 1 of this chapter based on the best available
economic forecast data available to the department before the later
of November 1 or the date set by the department.
Sec. 3. The total tax imposed under section 1 of this chapter
shall be treated as a controlled tax.
Sec. 4. For purposes of this chapter, a county's total allowable
tax increase amount under this chapter is equal to the sum of each
political subdivision's total allowable tax increase amounts allowed
in the county after 2005.
Sec. 5. For purposes of this chapter, a political subdivision's
total allowable tax increase amount under this chapter is equal to
the sum of the annual controlled tax increase amounts allowed in
the county for the political subdivisions in each year after 2005.
Sec. 6. For purposes of this chapter, a political subdivision's
annual controlled tax increase in a county for any particular year
is the amount determined under STEP THREE of the following
formula:
STEP ONE: Subtract the political subdivision's controlled
levy limit in the county for the immediately preceding year
from the political subdivision's controlled tax limit in the
county for the ensuing year.
STEP TWO: Subtract the political subdivision's controlled
levy limit in the county for the immediately preceding year
from the political subdivision's controlled tax limit in the
county for the ensuing year.
STEP THREE: Subtract the STEP TWO amount from the
STEP ONE amount.
Sec. 7. Subject to section 8 of this chapter, a negative result for
a political subdivision under section 6 of this chapter reduces the
political subdivision's total allowable tax increase amount that may
be funded from taxes imposed under this chapter.
Sec. 8. A political subdivision's total allowable tax increase
amount under this chapter may not be less than zero (0).
Sec. 9. (a) This section applies to a school corporation.
(b) A separate annual controlled tax increase and total allowable
tax increase amount shall be computed for each of the following:
(1) A school corporation's school general fund and charter
schools taxes imposed under IC 6-1.1-19-1.5.
(2) A school corporation's transportation fund taxes imposed
under IC 21-2-11.5-3.
(3) A school corporation's school bus replacement fund taxes
imposed under IC 21-2-11.5-3.
(c) None of the separate school corporation's total allowable tax
increase amounts under subsection (B) may be less than zero (0).
Sec. 10. Subject to section 11 of this chapter, instead of funding
all of a county's total allowable tax increase amount from county
income taxes, a council may adopt an ordinance to fund the annual
controlled tax increases attributable to one (1) or more years from
controlled property taxes. Notice of the proposed ordinance must
be given under IC 6-11-3-15 before the date specified in
IC 6-11-3-16. If an ordinance adopted under this section applies to
the annual controlled tax increases attributable to a particular year
the ordinance must require that all of the annual controlled tax
increases attributable to the particular year be funded by
controlled property taxes.
Sec. 11. A council, either through an ordinance terminating a
tax or an ordinance reducing the tax rate, may not decrease a tax
imposed under this chapter below the tax rate necessary to
continue the part of an allocation of taxes to a political subdivision
that the political subdivision has pledged to pay or fund bonds,
leases, or another obligation permitted by IC 5-1-14 or another law.
Sec. 12. Subject to IC 6-13-22-11 concerning the treatment of
distributions to a county that qualify as excess revenue, the part of
the tax imposed under this chapter is allocated among the political
subdivisions in the county in proportion to the part of the county's
total allowable tax increase amount that is:
(1) attributable to each political subdivision; and
(2) funded by taxes under this article.
Any annual controlled tax increase that is not funded by taxes
under this chapter as the result of the adoption of an ordinance
under section 10 of this chapter may not be considered in
determining a political subdivision's allocation of taxes under this
section.
Sec. 13. Subject to any law limiting the use of a political
subdivision's revenues, a political subdivision may use taxes
allocated to a political subdivision under this chapter for any
governmental or public purpose, including any purpose for which
a county adjusted gross income tax, a county option income tax, or
a county economic development tax could be used before 2006.
Sec. 14. The county auditor shall retain from taxes allocated to
a political subdivision under this chapter an amount equal to any:
(1) reserve or settlement required under IC 6-11-13;
(2) assignment authorized under IC 6-11-14; or
(3) special allocation authorized under IC 6-11-15;
that is payable from taxes imposed under this chapter in the
manner and under the schedule determined under IC 6-11-13.
Sec. 15. The remainder of an allocation of taxes imposed under
this chapter shall be distributed to the political subdivisions in the
county in the manner and under the schedule determined under
IC 6-11-13.
Sec. 16. A political subdivision shall deposit the amount
distributed to the political subdivision under this chapter among
the funds of the political subdivision in proportion to the amount
of the political subdivision's budget for the year in which the tax
being distributed was imposed, including any amount budgeted for
deposit in the political subdivision's rainy day fund. Money
deposited in a fund under this section may be used for any purpose
for which money in the fund may be used or transferred to another
fund as authorized by law.
Sec. 17. The amount raised under this chapter and retained by
a county auditor as an assignment or a special allocation may be
used only for the purposes of the assignment or the special
allocation.
Sec. 18. Subject to IC 6-13-22-11 concerning excess revenue, an
amount retained in excess of the amount necessary for the purposes
of a reserve, a settlement, an assignment, or a special allocation
shall be distributed to the political subdivision from which the
amount was retained. The amount distributed under this section
does not reduce the controlled tax limit or allocation amount for a
political subdivision in any year.
Chapter 8. Optional Additional Income Tax
Sec. 1. In addition to a tax in effect in the county under
IC 6-11-7 or IC 6-11-9, or both, a council may adopt an additional
tax under this chapter for the county.
Sec. 2. The tax rate imposed for a tax under this chapter in a
county may not exceed the greater of the following:
(1) One percent (1%).
(2) The rate determined under sections 5 and 6 of this chapter,
if sections 5 and 6 of this chapter apply to the county.
Sec. 3. A tax imposed under section 1 of this chapter (including
a tax described in section 4 of this chapter) shall be treated as an
excluded tax.
Sec. 4. An ordinance adopted in a county before April 1, 2005,
that would have initially imposed any of the following in 2006 or
authorized the continuation of any of the following after 2005 if
IC 6-3.5-1.1, IC 6-3.5-6, and IC 6-3.5-7 had not been repealed shall
be treated after 2005 as an ordinance adopted under section 1 of
this chapter:
(1) County adjusted gross income tax.
(2) County option income tax.
(3) County economic development tax.
Sec. 5. Subject to the reductions under section 6 of this chapter,
the tax rate imposed in 2006 under section 4 of this chapter is equal
to the combined:
(1) county adjusted gross income tax rate or county option
income tax; and
(2) county economic development rate;
that the county would have imposed in 2006 (after deducting any
part of the tax rate attributable to a law listed in IC 6-11-9-11) if
IC 6-3.5-1.1, IC 6-3.5-6, and IC 6-3.5-7 had not been repealed.
Sec. 6. Section 4 of this chapter does not prohibit a council from
adopting an ordinance after June 30, 2005, to increase the tax rate
determined under section 5 of this chapter as long as the total tax
rate imposed under this chapter does not exceed the maximum rate
specified in section 2 of this chapter.
Sec. 7. Taxes imposed under this chapter shall be allocated
among the civil taxing units in the county based on the formulas
described in the following:
OPTION DESCRIPTION
Option 1 Section 18 of this chapter.
Option 2 Section 19 of this chapter.
Option 3 Section 20 of this chapter.
Option 4 Section 21 of this chapter.
received a certified distribution of county adjusted gross income
tax, county option income tax, or county economic development tax
in 2006 if IC 6-3.5-1.1, IC 6-3.5-6, and IC 6-3.5-7 had not been
repealed.
(b) Subject to section 10 of this chapter, the tax option ratios that
apply in the county are:
(1) the ratios adopted by the council by ordinance; or
(2) the ratios determined under sections 13 through 17 of this
chapter, if subdivision (1) does not apply.
Sec. 13. (a) The Option 1 ratio in a county is:
(1) if the county received a 2005 certified distribution of county
option income taxes that was distributed under IC 6-3.5-6-18(e)
and also received a 2005 certified distribution of county
economic development taxes, the quotient determined by
dividing:
(A) the county option income tax rate, excluding any part of
the rate attributable to a law listed in IC 6-11-9-11, that
would have been in effect in the county in 2006 and
distributed under IC 6-3.5-6-18(e) if IC 6-3.5-6 had not been
repealed; by
(B) the sum of the county adjusted gross income tax rate,
county option income tax rate, and county economic income
tax rate that would have been in effect in the county in 2006,
excluding any part of the rate attributable to a law listed in
IC 6-11-9-11, if IC 6-3.5-1.1, IC 6-3.5-6, and IC 6-3.5-7 had
not been repealed;
(2) if the county did not receive a 2005 certified distribution of
county option income taxes that was distributed under
IC 6-3.5-6-18(e), zero (0); and
(3) if the county received a 2005 certified distribution of county
option income taxes that was distributed under
IC 6-3.5-6-18(e), and did not receive a 2005 certified
distribution of county economic development taxes, one (1).
(b) The Option 1 eligible civil units are the following:
(1) Any political subdivision that has the power to impose a
property tax, other than a county solid waste management
district (as defined in IC 13-11-2-47) or a joint solid waste
management district (as defined in IC 13-11-2-113).
(2) A county solid waste management district (as defined in
IC 13-11-2-47) or a joint solid waste management district (as
defined in IC 13-11-2-113) if a majority of the members of each
of the county fiscal bodies of the counties within the district
passes a resolution approving an allocation of taxes under this
chapter.
A resolution passed under IC 6-3.5-6-1.3 (before its repeal) that
would have applied to a distribution of county adjusted gross
income taxes or county option income taxes in 2006 if IC 6-3.5-1.1
and IC 6-3.5-6 had not been repealed shall be treated as a
resolution adopted under section 2(2)(B) of this chapter.
(c) An Option 1 eligible civil unit's allocation factor for a year is
the sum of the following:
(1) The eligible civil taxing unit's controlled tax limit for a year.
(2) For an eligible civil taxing unit in a county that received a
certified distribution of county adjusted gross income taxes,
county option income taxes, or county economic development
income taxes in 2005, an amount equal to the property taxes
imposed on taxable property by the county in 1999 for the
county's welfare fund and welfare administration fund in the
county.
(3) For an eligible civil taxing unit in a county that received a
certified distribution of county adjusted gross income taxes,
county option income taxes, or county economic development
income taxes in 2005, an amount equal to the lesser of the:
(A) property tax levies imposed on taxable property in the
county by the civil taxing unit to fund or pay bonded
indebtedness, lease rentals, or other obligations permitted by
IC 5-1-14 or another law that:
(i) that are payable from a political subdivision's debt
service funds (as defined in IC 6-14-1-8); and
(ii) for which the political subdivision or its predecessor
initially levied a property tax before 2006;
including any refunding bonds to the extent that the term
does not exceed the term of the original obligation; or
(B) property taxes imposed to fund or pay the bonded
indebtedness, lease rentals, or other obligations described in
clause (A) in 2005.
(4) For an eligible civil taxing unit in a county that received a
certified distribution of county adjusted gross income taxes,
county option income taxes, or county economic development
income taxes in 2005, an amount equal to the lesser of the fixed
rate levies (as defined in IC 6-15-1-3) imposed on taxable
property by the civil taxing unit in the county in:
(A) the year of distribution; or
(B) 2005.
Sec. 14. (a) The Option 2 ratio in a county is equal to:
(1) if the county received a 2005 certified distribution of county
option income taxes that was distributed under IC 6-3.5-6-18.5
(repealed), one (1); or
(2) if the county did not receive a 2005 certified distribution of
county option income taxes that was distributed under
IC 6-3.5-6-18.5 (repealed), zero (0).
(b) The Option 2 eligible civil units are any entity that would
have been eligible to receive a distribution under IC 6-3.5-6-18.5 if
IC 6-3.5-6 had not been repealed.
(c) An Option 2 eligible civil unit's allocation factor for a year is
the sum of the following:
(1) The eligible civil taxing unit's controlled tax limit for a year.
(2) For an eligible civil taxing unit in a county that received a
certified distribution of county economic development income
taxes in 2005, an amount equal to the property taxes imposed
on taxable property by the county in 1999 for the county's
welfare fund and welfare administration fund in the county.
Sec. 15. (a) The Option 3 ratio in a county is equal to:
(1) if the county received a 2005 certified distribution of county
adjusted gross income taxes and also received a 2005 certified
distribution of county economic development taxes, the
quotient determined by dividing:
(A) the county adjusted gross income tax rate, excluding any
part of the rate attributable to a law listed in IC 6-11-9-11,
that would have been in effect in the county in 2006 and
distributed under IC 6-3.5-1.1-15 if IC 6-3.5-1.1 had not been
repealed; by
(B) the sum of the county adjusted gross income tax rate,
county option income tax rate, and county economic income
tax rate that would have been in effect in the county in 2006,
excluding any part of the rate attributable to a law listed in
IC 6-11-9-11, if IC 6-3.5-1.1, IC 6-3.5-6, and IC 6-3.5-7 had
not been repealed;
(2) if the county did not receive a 2005 certified distribution of
county adjusted gross income taxes, zero (0); or
(3) if the county received a 2005 certified distribution of county
adjusted gross income taxes but did not receive a 2005 certified
distribution of county economic income taxes, one (1).
(b) The Option 3 eligible civil units are the following:
(1) Any political subdivision that has the power to impose a
property tax, other than a county solid waste management
district (as defined in IC 13-11-2-47) or a joint solid waste
management district (as defined in IC 13-11-2-113).
(2) A county solid waste management district (as defined in
IC 13-11-2-47) or a joint solid waste management district (as
defined in IC 13-11-2-113) if a majority of the members of each
of the county fiscal bodies of the counties within the district
passes a resolution approving an allocation of taxes under this
chapter.
A resolution passed under IC 6-3.5-1.1-1.3 (before its repeal) that
would have applied to a distribution of county adjusted gross
income taxes or county option income taxes in 2006 if IC 6-3.5-1.1
and IC 6-3.5-6 had not been repealed shall be treated as a
resolution adopted under section 2(2)(B) of this chapter.
(c) An Option 3 eligible civil unit's allocation factor for a year is
the sum of the following:
(1) The eligible civil taxing unit's controlled tax limit for a year.
(2) The controlled tax limit for a year of any special taxing
district, authority, board, or other entity formed to discharge
governmental services or functions on behalf of or ordinarily
attributable to the eligible civil taxing unit.
(3) The amount of federal revenue sharing funds and certified
shares that were used by the eligible 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 eligible civil taxing unit) to reduce
its ad valorem property tax levies below the limits imposed by
IC 6-1.1-18.5 (repealed) in 2005.
(4) For a county that received a certified distribution of county
adjusted gross income taxes, county option income taxes, or
county economic development income taxes in 2005, an amount
equal to the property taxes imposed on taxable property by the
county in 1999 for the county's welfare fund and welfare
administration fund in the county.
Sec. 16. (a) The Option 4 ratio in a county is equal to:
(1) if the county also received a 2005 certified distribution of
county economic development income taxes that was
distributed under IC 6-3.5-7-12(b) and also received a 2005
certified distribution of county adjusted gross income taxes or
county option income taxes, the quotient determined by
dividing:
(A) the county economic development income tax rate,
excluding any part of the rate attributable to a law listed in
IC 6-11-9-11, that would have been in effect in the county in
2006 and distributed under IC 6-3.5-7-12(b) if IC 6-3.5-7 had
not been repealed; by
(B) the sum of the county adjusted gross income tax rate,
county option income tax rate, and county economic income
tax rate that would have been in effect in the county in 2006,
excluding any part of the rate attributable to a law listed in
IC 6-11-9-11, if IC 6-3.5-1.1, IC 6-3.5-6, and IC 6-3.5-7 had
not been repealed;
(2) if the county did not receive a 2005 certified distribution of
county economic development income taxes, zero (0);
(3) if the county received a 2005 certified distribution of county
economic development income taxes that was distributed under
IC 6-3.5-7-12(c), zero (0); or
(4) if the county received a 2005 certified distribution of county
economic development income taxes that was distributed under
IC 6-3.5-7-12(b) but did not receive a 2005 certified
distribution of county adjusted gross income tax or county
option income tax, one (1).
(b) The Option 4 eligible civil units are the following:
(1) The county.
(2) Each city and town in the county.
(c) An Option 4 eligible civil unit's allocation factor for a year is
the sum of the following:
(1) The eligible civil taxing unit's controlled tax limit for a year.
(2) For an eligible civil taxing unit in a county that received a
certified distribution of county adjusted gross income taxes,
county option income taxes, or county economic development
income taxes in 2005, an amount equal to the property taxes
imposed on taxable property by the county in 1999 for the
county's welfare fund and welfare administration fund in the
county.
(3) For an eligible civil taxing unit in a county that received a
certified distribution of county adjusted gross income taxes,
county option income taxes, or county economic development
income taxes in 2005, an amount equal to the lesser of the:
(A) property tax levies imposed on taxable property in the
county by the civil taxing unit to fund or pay bonded
indebtedness, lease rentals, or other obligations permitted by
IC 5-1-14 or another law that:
(i) that are payable from a political subdivision's debt
service funds (as defined in IC 6-14-1-8); and
(ii) for which the political subdivision or its predecessor
initially levied a property tax before 2006;
including any refunding bonds to the extent that the term
does not exceed the term of the original obligation; or
(B) property taxes imposed to fund or pay the bonded
indebtedness, lease rentals, or other obligations described in
clause (A) in 2005.
(4) For an eligible civil taxing unit in a county that received a
certified distribution of county adjusted gross income taxes,
county option income taxes, or county economic development
income taxes in 2005, an amount equal to the lesser of the fixed
rate levies (as defined in IC 6-15-1-3) imposed on taxable
property by the civil taxing unit in the county in:
(A) the year of distribution; or
(B) 2005.
Sec. 17. (a) The Option 5 ratio in a county is equal to:
(1) if the county received a 2005 certified distribution of county
economic development income taxes that was distributed under
IC 6-3.5-7-12(c) and also received a 2005 certified distribution
of county adjusted gross income taxes or county option income
taxes, the quotient determined by dividing:
(A) the county economic development income tax rate,
excluding any part of the rate attributable to a law listed in
IC 6-11-9-11, that would have been in effect in the county in
2006 and distributed under IC 6-3.5-7-12(c) if IC 6-3.5-7 had
not been repealed; by
(B) the sum of the county adjusted gross income tax rate,
county option income tax rate, and county economic income
tax rate that would have been in effect in the county in 2006,
excluding any part of the rate attributable to a law listed in
IC 6-11-9-11, if IC 6-3.5-1.1, IC 6-3.5-6, and IC 6-3.5-7 had
not been repealed;
(2) if the county did not receive a 2005 certified distribution of
county economic development income taxes, zero (0);
(3) if the county received a 2005 certified distribution of county
economic development income taxes that was distributed under
IC 6-3.5-7-12(b), zero (0); or
(4) if the county received a 2005 certified distribution of county
economic development income taxes that was distributed under
IC 6-3.5-7-12(c) but did not receive a 2005 certified distribution
of county adjusted gross income tax or county option income
tax, one (1).
(b) The Option 5 eligible civil units are the following:
(1) The county.
(2) Each city and town in the county.
(c) An Option 5 eligible civil unit's allocation factor for a year is
the eligible civil unit's population. For the purpose of applying this
subsection to a county, only the population of the county in an
unincorporated area shall be attributed to the county.
Sec. 18. The amount allocated to an eligible civil taxing unit
under Option 1 is the amount determined under STEP SIX of the
following formula:
STEP ONE: Determine the amount of revenue to be
distributed under this chapter.
STEP TWO: Multiply the STEP ONE amount by the county's
Option 1 ratio.
than or equal to zero (0).
STEP NINE: For the eligible civil taxing units qualifying for a
distribution under STEP EIGHT, each eligible civil taxing
unit's share equals the STEP THREE excess multiplied by the
ratio of:
(A) the Option 2 allocation factor for the eligible civil taxing
unit; divided by
(B) the sum of the Option 2 allocation factors for all eligible
civil taxing units of the county during the current year.
Sec. 20. The amount allocated to an eligible civil taxing unit
under Option 3 is the amount determined under STEP SIX of the
following formula:
STEP ONE: Determine the amount of revenue to be
distributed under this chapter.
STEP TWO: Multiply the STEP ONE amount by the county's
Option 3 ratio.
STEP THREE: Determine the Option 3 allocation factor for
the eligible civil taxing unit for the year of distribution.
STEP FOUR: Determine the sum of the Option 3 allocation
factors for all eligible civil units in the county for the year of
distribution.
STEP FIVE: Divide the STEP THREE result by the STEP
FOUR result.
STEP SIX: Multiply the STEP FIVE result by the STEP TWO
result.
Sec. 21. The amount allocated to an eligible civil taxing unit
under Option 4 is the amount determined under STEP SIX of the
following formula:
STEP ONE: Determine the amount of revenue to be
distributed under this chapter.
STEP TWO: Multiply the STEP ONE amount by the county's
Option 4 ratio.
STEP THREE: Determine the Option 4 allocation factor for
the eligible civil taxing unit for the year of distribution.
STEP FOUR: Determine the sum of the Option 4 allocation
factors for all eligible civil units in the county for the year of
distribution.
STEP FIVE: Divide the STEP THREE result by the STEP
FOUR result.
STEP SIX: Multiply the STEP FIVE result by the STEP TWO
amount.
Sec. 22. The amount allocated to an eligible civil taxing unit
under Option 5 is the amount determined under STEP SIX of the
following formula:
STEP ONE: Determine the amount of revenue to be
distributed under this chapter.
STEP TWO: Multiply the STEP ONE amount by the county's
Option 5 ratio.
STEP THREE: Determine the Option 5 allocation factor for
the eligible civil taxing unit for the year of distribution.
STEP FOUR: Determine the sum of the Option 5 allocation
factors for all eligible civil units in the county for the year of
distribution.
STEP FIVE: Divide the STEP THREE result by the STEP
FOUR result.
STEP SIX: Multiply the STEP FIVE result by the STEP TWO
amount.
Sec. 23. A council, either through an ordinance terminating a tax
or an ordinance reducing the tax rate, may not decrease a tax
imposed under this chapter below the tax rate necessary to
continue the part of an allocation of taxes to a civil taxing unit that
the civil taxing unit has pledged to pay or fund bonds, leases, or
another obligation permitted by IC 5-1-14 or another law. For
purposes of this section, a pledge of county adjusted gross income
taxes (before the repeal of IC 6-3.5-1 or IC 6-3.5-1.1), county option
income taxes (before the repeal of IC 6-3.5-6), or county economic
development taxes (before the repeal of IC 6-3.5-7) shall be treated
as a pledge of an allocation of taxes under this chapter.
Sec. 24. Subject IC 6-13-19 or any other law limiting the use of a
civil taxing unit's revenues, a civil taxing unit may use taxes
allocated to a civil taxing unit under this chapter for any
governmental or public purpose, including any purpose for which
a county adjusted gross income tax, a county option income tax, or
a county economic development tax could be used before 2006.
Sec. 25. The county auditor shall retain from taxes allocated to a
civil taxing unit under this chapter an amount equal to any:
had not been repealed shall be treated after 2005 as an ordinance
adopted under section 1 of this chapter.
Sec. 4. The tax rate imposed under section 3 of this chapter is
equal to the combined total of the additional tax rates listed in
IC 6-11-9-11 that the county would have imposed in 2006 if
IC 6-3.5-1.1, IC 6-3.5-6, and IC 6-3.5-7 had not been repealed.
Sec. 5. The tax rate imposed under section 3 of this chapter
applies to 2006 and each year thereafter until the earlier of the
following:
(1) The tax expires by law.
(2) The tax is rescinded or the tax rate is reduced by the council
under this article.
Sec. 6. A fiscal body or council, either through an ordinance
terminating a tax or an ordinance reducing the tax rate, may not
decrease an excluded tax imposed under this chapter below the tax
rate necessary to continue the part of an allocation of taxes to a
political subdivision that the political subdivision has pledged to
pay or fund bonds, leases, or another obligation permitted by
IC 5-1-14 or another law. For purposes of this section, a pledge of
county adjusted gross income taxes (before the repeal of IC 6-3.5-1
or IC 6-3.5-1.1), county option income taxes (before the repeal of
IC 6-3.5-6), or county economic development taxes (before the
repeal of IC 6-3.5-7) under a law listed in IC 6-11-9-11 shall be
treated as a pledge of an allocation of taxes under this article.
Sec. 7. The county auditor shall retain from the distribution of
taxes made to the county the amount of each excluded tax imposed
in the county.
Sec. 8. The amount raised by an excluded tax, after deducting
any necessary reserves and settlements under IC 6-11-13, may be
used only for the purposes allowed under the law under which it
was imposed or its successor law. Any amount raised in excess of
the amount necessary for the purposes of the excluded tax shall be
treated as excess revenue under IC 6-13-22-11 and applied to
reduce the excluded tax rate for the following year or the later year
determined by the department. Except as otherwise provided by
law, IC 36-1-8-5 applies to an unused and unencumbered balance
remaining from an excluded tax when the purposes for the
excluded tax have been fulfilled.
Sec. 9. (a) Except to the extent waived for a year by the
department, an additional tax rate is imposed in each county at the
lesser of the following:
(1) The rate necessary, after deducting any amount being
raised as property taxes to replace money in a rainy day fund
used as a temporary loan to a debt service fund, to maintain
the balance of the rainy day funds of each political subdivision
at six percent (6%) of the budget in the immediately preceding
year for the political subdivision in the county; or
(2) twenty percent (20%) of the increase in the tax rate
imposed in the county under IC 6-11-7.
(b) The additional rate under this section is an excluded tax.
(c) The county auditor shall retain the amount of the additional
tax rate under this section as a special allocation. The retained
amount shall be allocated among political subdivisions for deposit
in each political subdivision's rainy day fund in proportion to the
controlled tax limits for each political subdivision in the county
until the political subdivision's rainy day fund balance is at least six
percent (6%) of the political subdivision's controlled tax limit.
(d) The council may adopt an ordinance to increase the
additional tax imposed under this section. The county auditor shall
retain the amount of the additional tax rate under this subsection
as a special allocation. The retained amount shall be allocated
among political subdivisions for deposit in each political
subdivision's rainy day fund in proportion to the controlled tax
limits each political subdivision in the county.
Sec. 10. (a) This section applies to any county, regardless of
whether the county has adopted an ordinance under IC 6-11-15 or
IC 6-11-16 to provide additional property tax replacement credits
or homestead credits.
(b) In addition to any other additional tax rate imposed under
this article, a council may adopt an additional tax rate to replace
revenue lost to a political subdivision as the result of granting an
additional homestead credit under this section. A county that
adopted an ordinance under IC 6-3.5-7-26 (before its repeal) shall
be treated as if the county adopted an ordinance under this section.
The amount of the additional tax is an excluded tax.
(c) The additional tax rate may not exceed twenty-five
hundredths of one percent (0.25%).
(d) An additional homestead credit is established in each county
to which this section applies to offset the effect on homesteads in
the county resulting from the statewide deduction for inventory
under IC 6-1.1-12-42. The department shall set the percentage of
the homestead credit so that the total amount of additional
homestead credits granted equals the amount of the additional tax
collected under this section. The homestead credit adopted under
this section shall be applied as specified in the ordinance. The
ordinance may provide that the additional tax be:
(1) uniformly applied to increase the homestead credit granted
under IC 6-1.1-20.9 for all homesteads in the county; or
(2) applied to increase the homestead credit granted under
IC 6-1.1-20.9 for all homesteads in the county in the same
proportion as the amount of inventory assessed value deducted
under IC 6-1.1-12-42 in the taxing district for the immediately
preceding year's assessment date bears to the total inventory
assessed value deducted under IC 6-1.1-12-42 in the county for
the immediately preceding year's assessment date.
(e) The county auditor shall retain the amount necessary for the
homestead credit as a special allocation. The retained amount shall
be allocated among political subdivisions in proportion to property
tax revenue lost as the result of granting additional homestead
credits under this section.
(f) Money received under this section shall be treated for all
purposes as property tax levies.
Sec. 11. (a) This section applies to an additional tax imposed
under any of the following before April 1, 2005, and that would
have been in effect for a year after 2005 if IC 6-3.5-1.1, IC 6-3.5-6,
and IC 6-3.5-7 had not been repealed:
(1) IC 6-3.5-1.1-2.5 (repealed).
(2) IC 6-3.5-1.1-2.7 (repealed).
(3) IC 6-3.5-1.1-2.8 (repealed).
(4) IC 6-3.5-1.1-2.9 (repealed).
(5) IC 6-3.5-1.1-3.3 (repealed).
(6) IC 6-3.5-1.1-3.5 (repealed).
(7) IC 6-3.5-1.1-3.6 (repealed).
(8) IC 6-3.5-7-22 (repealed).
provide the department of state revenue with satisfactory evidence
that the taxpayer is entitled to the credit.
Sec. 2. (a) If for a particular taxable year a taxpayer is, or a
taxpayer and the taxpayer's spouse who file a joint return are,
allowed a credit for the elderly or totally disabled under Section 22
of the Internal Revenue Code, the taxpayer is, or the taxpayer and
the taxpayer's spouse are, entitled to a credit against the tax
liability under this article for that same taxable year. The amount
of the credit equals the lesser of:
(1) the product of:
(A) the credit for the elderly or totally disabled for that same
taxable year; multiplied by
(B) a fraction, the:
(i) numerator of which is the tax rate imposed under this
article against the taxpayer or the taxpayer and the
taxpayer's spouse; and
(ii) denominator of which is fifteen-hundredths (0.15); or
(2) the amount of tax imposed on the taxpayer or the taxpayer
and the taxpayer's spouse.
(b) If a taxpayer and the taxpayer's spouse file a joint return and
are subject to different county income tax rates for the same
taxable year, the taxpayer and the taxpayer's spouse shall compute
the credit under this section by using the formula provided by
subsection (a), except that they shall use the average of the two (2)
county income tax rates imposed against them as the numerator
referred to in subsection (a)(1)(B)(i).
Chapter 11. Administration
Sec. 1. Except as otherwise provided in this article, all provisions
of the adjusted gross income tax law (IC 6-3) concerning:
(1) definitions;
(2) declarations of estimated tax;
(3) filing of returns;
(4) deductions or exemptions from adjusted gross income;
(5) remittances;
(6) incorporation of the provisions of the Internal Revenue
Code;
(7) penalties and interest; and
(8) exclusion of military pay credits for withholding;
a part of that account.
(d) Revenue remaining in a county's account at the end of a fiscal
year does not revert to the state general fund.
Sec. 2. The auditor of state shall distribute money in a county's
account, less the reserve that the department of state revenue
determines is necessary to meet probable withdrawals from the
fund for overpayments and other erroneous deposits, at least
monthly.
Sec. 3. All distributions from an account shall be made by
warrants issued by the auditor of state to the treasurer of state
ordering the appropriate payments.
Sec. 4. The department of state revenue shall at least annually
distribute to the county auditor for a county imposing a tax and to
the department sufficient information for the county auditor and
the department to determine that the distributions made to the
county are correct and complete. To the extent that the information
distributed under this section is confidential information under
IC 6-8.1-7, the department of state revenue shall require the
recipients to enter into an agreement under IC 6-8.1-7-1(b) before
providing the information.
Sec. 5. The department of state revenue, in addition to offsetting
withdrawals and the repayment of advances to an account against
money deposited in an account, may on a settlement date seek
repayment from a county of money erroneously distributed to the
county. The county auditor shall reimburse the county's account
for overpayments from county income tax distributions held by the
county. The amount of the reimbursement shall be proportionately
deducted from all allocations made to the political subdivisions in
the county except allocations made to pay or fund any bonds, lease
obligations, or other obligations (as defined in IC 5-1-3-1) for which
county adjusted gross income tax, county option income tax, county
economic development tax, or county income tax is pledged. If the
amount held by the county is insufficient to reimburse the county's
account, the county fiscal body may authorize an advance of money
from the county general fund to make the reimbursement. The
advance shall be repaid on the schedule determined by the county
fiscal body.
Chapter 13. Distribution of Revenue by the County Auditor
reimburse the state for any overpayment to the county under
IC 6-11-12;
(3) schedule for apportioning amounts retained by the county
auditor to the distributions that would otherwise be made
under this article; and
(4) formula and schedule for apportioning shortfalls among the
distributions that would otherwise be made under this article.
Sec. 7. In the absence of an ordinance under section 6 of this
chapter the:
(1) schedule on which distributions are made;
(2) amount of reserve that the county auditor shall retain to
reimburse the state for any overpayment to the county under
IC 6-11-12;
(3) schedule for apportioning amounts retained by the county
auditor to the distributions that would otherwise be made
under this article; and
(4) formula and schedule for apportioning shortfalls among the
distributions that would otherwise be made under this article.
is the schedule, amount, and formula specified by the department
under section 8 of this chapter or, in the absence of a policy under
section 8 of this chapter, the county auditor.
Sec. 8. The department may establish the:
(1) schedule on which distributions are made;
(2) amount of reserve that a county auditor shall retain to
reimburse the state for any overpayment to the county under
IC 6-11-12;
(3) schedule for apportioning amounts retained by the county
auditor to the distributions that would otherwise be made
under this article; and
(4) formula and schedule for apportioning shortfalls among the
distributions that would otherwise be made under this article.
Sec. 9. If the council adopts an ordinance under section 6 of this
chapter, the department may establish under section 8 of this
chapter a different standard than the standard adopted in the
ordinance only as necessary to:
(1) protect taxpayers;
(2) protect the holders of bonds, leases, or other obligations;
(3) provide for uniform and just treatment of all political
subdivisions in the county; or
(4) enforce a law.
Sec. 10. To the extent possible, the county auditor, council, and
department shall provide for monthly distributions of a county's
tax.
Sec. 11. An ordinance adopted under section 6 of this chapter or
a policy established under section 3, 7, or 8 of this chapter may not
adversely affect the payment or funding of any bonds, lease
obligations, or other obligations (as defined in IC 5-1-3-1) for
which:
(1) county adjusted gross income tax, county option income tax,
or county economic development tax was pledged before 2006;
or
(2) county income tax is pledged.
Sec. 12. A county auditor may not maintain a reserve to
reimburse the state for any overpayment to the county under
IC 6-11-12 that exceeds the probable net settlement to the state for
taxes from which the reserve is retained.
Sec. 13. The county auditor shall retain from a county's
distribution under IC 6-11-12 the amount of any settlement with
the state required to eliminate overpayments to the county of taxes
imposed under this article that are not covered by a reserve.
Chapter 14. Assignments of an Allocation
Sec. 1. The fiscal body of a political subdivision may by ordinance
or resolution assign any part of the political subdivision's
allocation, including a special allocation, of a county's distribution
of taxes to another entity to carry out any governmental purpose,
including any purpose for which county adjusted gross income
taxes, county option income taxes, or county economic development
taxes could have been pledged or assigned before 2006.
Sec. 2. An assignment of a political subdivision's share of:
(1) county adjusted income taxes;
(2) county option income taxes; or
(3) county economic income taxes;
that would have applied to a year after 2005 if IC 6-3.5-1.1,
IC 6-3.5-6, and IC 6-3.5-7 had not been repealed, shall be treated
as an assignment of the political subdivision's allocation of a
county's distribution of taxes under this article.
subdivision under IC 6-11-7 to replace revenue lost to a political
subdivision as the result of granting additional property tax
replacement credits under this section. The ordinance must specify
the amount to be retained. The amount retained under this section
is not an excluded tax.
(c) An additional property tax replacement credit is established
in each county to which this section applies. The additional
property tax replacement credit applies to the controlled property
taxes imposed by the political subdivision adopting an ordinance
under this section. The department shall set the percentage of
property tax replacement credits so that the total amount of
additional property tax replacement credits granted equals the
amount of the tax retained under this section. The additional
property tax replacement credit shall be uniformly applied to all
taxpayer property tax liability for controlled property taxes
imposed by the political subdivision.
(d) The county auditor shall retain the amount necessary for the
additional property tax replacement credit as a special allocation.
The retained amount shall be allocated to the political subdivision
in proportion to the controlled property tax revenue lost as the
result of granting additional property tax replacement credits
under this section.
(e) Money received under this section shall be treated for all
purposes as controlled property tax levies.
Chapter 16. Special Allocations From Optional Additional
County Income Taxes
Sec. 1. This chapter applies only to the part of the tax imposed
under this article that is imposed as an excluded tax under
IC 6-11-8.
Sec. 2. The amount of taxes allocated to a tax area under:
(1) IC 36-7-13;
(2) IC 36-7-31;
(3) IC 36-7-31.3;
(4) IC 36-7-32; or
(5) another similar law;
shall be treated as a special allocation that reduces only the amount
that would otherwise be allocated to a political subdivision under
IC 6-11-8. The amount of the special allocation under this section
may not be considered in determining the controlled tax limit of a
political subdivision or in setting tax rates under this article.
Sec. 3. (a) This section applies to a county that adopted an
ordinance under IC 6-3.5-7-23 (before its repeal) to provide for an
additional property tax replacement credit to replace library
property taxes in the county.
(b) The county fiscal body may adopt an ordinance to retain part
of the amount that would otherwise be allocated to political
subdivisions under IC 6-11-8 to replace revenue lost to a public
library as the result of granting an additional property tax
replacement credit against library property taxes imposed in the
county. An ordinance adopted under IC 6-3.5-7-23 (before its
repeal) shall be treated as an ordinance adopted under this section.
The county fiscal body may not designate for library property tax
replacement purposes tax revenue that is generated by a tax rate
of more than fifteen-hundredths percent (0.15%).
(c) An additional property tax replacement credit is established
in each county to which this section applies. The department shall
set the percentage of the property tax replacement credit so that
the total amount of additional property tax replacement credits
granted equals the amount of the tax retained under this section.
The additional property tax credit shall be applied in the same
manner as an additional property tax credit under IC 6-3.5-7-23
(before its repeal) would have been applied.
(d) The county auditor shall allocate the amount retained under
this section as a special allocation. The retained amount shall be
allocated among public libraries as an additional property tax
credit under IC 6-3.5-7-23 (before its repeal) would have been
allocated.
(e) Money received under this section shall be treated for all
purposes as property tax levies.
(f) A special allocation and property tax replacement credit
under this section continues in effect until rescinded or reduced by
ordinance adopted by the county fiscal body.
Sec. 4. (a) This section applies to a county that received a certified
distribution of county adjusted gross income taxes in 2005.
(b) In addition to any other property tax replacement credit or
homestead credit granted under this chapter, part of the amount
that would otherwise be allocated to political subdivisions under
IC 6-11-8 must be retained to replace revenue lost to a political
subdivision as the result of granting additional property tax
replacement credits under this section.
(c) The amount to be retained is the amount raised by the tax rate
that is equal to the part of the county adjusted gross income tax
rate that was imposed to raise the part of the county's 2005
certified distribution that was allocated to civil taxing units (as
defined in IC 6-3.5-1.1-1 (repealed)) and school corporations as
property tax replacement credits.
(d) An additional property tax replacement credit is established
in each county to which this section applies. The department shall
set the percentage of property tax replacement credits so that the
total amount of additional property tax replacement credits
granted equals the amount of the tax retained under this section.
The additional property tax replacement credit shall be uniformly
applied to property tax liability on taxable property in the county
as follows:
(1) To the property tax liability of each eligible civil taxing unit,
as determined under IC 6-11-8-15, for controlled property
taxes.
(1) To the property tax liability of each school corporation for
its general fund, debt service fund, capital projects fund,
transportation fund, and special education preschool fund.
(e) The county auditor shall retain the amount necessary for the
additional property tax replacement credit as a special allocation.
The retained amount shall be allocated among political
subdivisions in proportion to the property tax revenue lost as the
result of granting additional property tax replacement credits
under this section.
(e) Money received under this section shall be treated for all
purposes as property tax levies.
Sec. 5. (a) This section applies to a county that received a certified
distribution of county adjusted gross income taxes in 2005.
(b) In addition to any other property tax replacement credit or
homestead credit granted under this chapter, part of the amount
that would otherwise be allocated to each eligible civil taxing unit,
as determined under IC 6-11-8-15, under IC 6-11-8 must be
retained to replace revenue lost to an eligible civil taxing unit as the
result of granting additional property tax replacement credits
under this section.
(c) The amount to be retained is the amount raised by the tax rate
that is equal to the part of the county adjusted gross income tax
rate that was imposed to raise the part of the county's 2005
certified distribution that was:
(1) allocated to eligible civil taxing units (as determined under
IC 6-11-8-15)as certified shares; and
(2) used as additional property tax replacement credits.
(d) An additional property tax replacement credit is established
in each county to which this section applies. The department shall
set the percentage of property tax replacement credits so that the
total amount of additional property tax replacement credits
granted equals the amount of the tax retained under this section.
The additional property tax replacement credit shall be uniformly
applied to property tax liability on taxable property in the county
of each eligible civil taxing unit, as determined under IC 6-11-8-15,
for controlled property taxes.
(e) The county auditor shall retain the amount necessary for the
additional property tax replacement credit as a special allocation.
The retained amount shall be allocated among political
subdivisions in proportion to the property tax revenue lost as the
result of granting additional property tax replacement credits
under this section.
(e) Money received under this section shall be treated for all
purposes as property tax levies.
Sec. 6. (a) This section applies to any county.
(b) In addition to any other property tax replacement credit or
homestead credit granted under this chapter, a council may adopt
an ordinance to retain part of the amount that would otherwise be
allocated to political subdivisions under IC 6-11-8 to replace
revenue lost to a political subdivision as the result of granting
additional property tax replacement credits under this section. The
ordinance must specify the amount to be retained.
(c) An additional property tax replacement credit is established
in each county to which this section applies. The department shall
set the percentage of property tax replacement credits so that the
total amount of additional property tax replacement credits
granted equals the amount of the tax retained under this section.
The additional property tax replacement credit shall be uniformly
applied to all controlled property tax liability in the county.
(d) The county auditor shall retain the amount necessary for the
additional property tax replacement credit as a special allocation.
The retained amount shall be allocated among political
subdivisions in proportion to the controlled property tax revenue
lost as the result of granting additional property tax replacement
credits under this section.
(e) Money received under this section shall be treated for all
purposes as controlled property tax levies.
Sec. 7. (a) This section applies to any county.
(b) In addition to any other additional property tax replacements
or homestead credits granted under this chapter, a council may
adopt an ordinance to retain part of the amount that would
otherwise be allocated to political subdivisions under IC 6-11-8 to
replace revenue lost to a political subdivision as the result of
granting an additional homestead credit under this section. The
amount retained is not an excluded tax. An ordinance adopted in
a county under IC 6-3.5-6-13 (repealed) before April 1, 2005, shall
be treated as an ordinance adopted under this section if the
ordinance would have been in effect in a year after 2005 if
IC 6-3.5-6 had not been repealed.
(c) The maximum amount that may be retained under this
section for an ensuing year is the greater of:
(1) eight percent (8%) of the sum of the property taxes imposed
in the county in the year immediately preceding the ensuing
year; or
(2) the amount that the county retained under IC 6-3.5-6-18(b)
(repealed) in 2005 for the purposes of granting homestead
credits.
The ordinance must specify the amount to be retained.
(d) An additional homestead credit is established in each county
to which this section applies. The department shall set the
percentage of the homestead credit so that the total amount of
additional homestead credits granted equals the amount of the
additional tax collected under this section. The additional
homestead credit shall be applied as an increase in the homestead
credit allowed in a taxing district under IC 6-1.1-20.9 for a year.
The homestead credit shall be uniformly applied to all homesteads
in the county.
(e) The county auditor shall retain the amount necessary for the
homestead credit as a special allocation. The retained amount shall
be allocated among political subdivisions in proportion to property
tax revenue lost as the result of granting additional homestead
credits under this section.
(f) Money received under this section shall be treated for all
purposes as property tax levies.
Sec. 8. (a) This section applies to any county.
(b) In addition to any other property tax replacement credit or
homestead credit granted under this article, the fiscal body of a
political subdivision may adopt an ordinance to retain part of the
amount that would otherwise be allocated to the political
subdivision under IC 6-11-8 to replace revenue lost to a political
subdivision as the result of granting additional property tax
replacement credits under this section. The ordinance must specify
the amount to be retained. The ordinance may be combined with
an ordinance adopted under IC 6-11-15.
(c) An additional property tax replacement credit is established
in each county to which this section applies. The additional
property tax replacement credit applies to the controlled property
taxes imposed by the political subdivision adopting an ordinance
under this section. The department shall set the percentage of
property tax replacement credits so that the total amount of
additional property tax replacement credits granted equals the
amount of the tax retained under this section. The additional
property tax replacement credit shall be uniformly applied to all
taxpayer property tax liability for controlled property taxes
imposed by the political subdivision.
(d) The county auditor shall retain the amount necessary for the
additional property tax replacement credit as a special allocation.
The retained amount shall be allocated to the political subdivision
in proportion to the controlled property tax revenue lost as the
result of granting additional property tax replacement credits
under this section.
2005]:
ARTICLE 12. CONTROLLED TAX LIMIT
Chapter 1. Definitions
Sec. 1. The definitions in IC 6-1.1, IC 6-11, and IC 36-1-2 apply
throughout this article.
Sec. 2. The definitions in this chapter apply throughout this
article.
Sec. 3. "Adjustment" means an increase or a decrease of a:
(1) political subdivision's controlled tax limit or controlled levy
limit, or both;
(2) political subdivision's property taxes or property tax rates;
(3) county's income tax or income tax rate; or
(4) political subdivision's allocation of income taxes; or
another action allowed under this article or IC 6-13.
Sec. 4. "Income tax" refers to a county income tax imposed
under IC 6-13.
Sec. 5. "Indiana nonfarm personal income" means the estimate
of total nonfarm personal income for Indiana in a year as
computed by the federal Bureau of Economic Analysis using any
actual data for the year and any estimated data determined to be
appropriate by the federal Bureau of Economic Analysis.
Chapter 2. Excluded Taxes
Sec. 1. This article does not apply to the state or a political
subdivision that does not have the power to impose a property tax.
Sec. 2. This article applies to the:
(1) amount of controlled income taxes that may be imposed in
a county for allocation to a political subdivision; and
(2) controlled property taxes that may be imposed in a county
by the political subdivision.
Sec. 3. The taxes described in section 2 of this chapter are
controlled taxes subject to this article.
Sec. 4. This article does not apply to any part of:
(1) an income tax imposed in a county; or
(2) a property tax levy imposed by a political subdivision;
that is designated as an excluded tax under this chapter or IC 6-11.
Sec. 5. A controlled tax limit or controlled levy limit calculated
under this article does not apply to an excluded tax.
Sec. 6. An excluded tax may not be considered in calculating a
controlled tax limit, controlled levy limit, or annual controlled tax
increase for any political subdivision.
Sec. 7. A property tax imposed for a debt service fund (as defined
in IC 6-14-1-8) is an excluded tax.
Sec. 8. A fixed rate levy (as defined in IC 6-15-1-3) is an excluded
tax.
Sec. 9. A property tax imposed for any of the following is an
excluded tax:
(1) A referendum tax levy fund (IC 21-2-11.6).
(2) A school capital projects fund (IC 21-2-15).
(3) A special education preschool fund (IC 21-2-17).
(4) A racial balance fund (IC 6-1.1-19-10 (repealed) or
IC 21-2-19).
(5) A cultural institution (IC 20-5-17.5-4 (repealed) or
IC 36-10-13-8).
Sec. 10. A:
(1) tax imposed under IC 6-1.1-21.2-12; or
(2) special assessment imposed under IC 12-19-1.5-9;
for an allocation area is an excluded tax.
Sec. 11. A part of the income tax rate that is:
(1) imposed under IC 6-11-8; or
(2) otherwise designated by law as an excluded tax.
Chapter 3. Limitations on Controlled Taxes
Sec. 1. A:
(1) controlled tax limit; and
(2) controlled levy limit;
is established for each political subdivision.
Sec. 2. If the political subdivision is located in more than one (1)
county, a controlled tax limit and controlled levy limit is established
for each county in which the political subdivision is located. The
controlled tax limit and the controlled levy limit in each county
must reflect a proportionate share of the total amount of controlled
taxes that may be imposed for the political subdivision. The
apportionment must reflect the factors applicable to apportioning
an adjustment under IC 6-12-5-5.
Sec. 3. A political subdivision's controlled tax limit specifies the
maximum total amount of controlled taxes that may be imposed in
a county in a year for the political subdivision. Subject to section 16
of this chapter, an action taken by a political subdivision, the
council, or the department of local government is void to the extent
that it allows controlled taxes to be imposed in a county in a year
for a political subdivision that exceeds the political subdivision's
controlled tax limit in the county for the year.
Sec. 4. A political subdivision's controlled levy limit does not limit
the amount of controlled property taxes that a political subdivision
may impose in a county in a year. However, the political
subdivision's controlled levy limit specifies the maximum total
amount of the political subdivision's controlled taxes that is eligible
for:
(1) homestead credits under IC 6-1.1-20.9-2 and property tax
replacement credits under IC 6-1.1-21-5; and
(2) distributions under IC 6-1.1-21 to replace revenue lost from
the granting of homestead credits under IC 6-1.1-20.9-2 and
property tax replacement credits under IC 6-1.1-21-5.
Sec. 5. If a county does not pay all of a political subdivision's total
allowable tax increase amounts from income taxes the political
subdivision may impose a controlled property tax to raise the
amount that is not raised from income taxes. However, the
additional amount of property taxes is not eligible for:
(1) homestead credits under IC 6-1.1-20.9-2 and property tax
replacement credits under IC 6-1.1-21-5; and
(2) distributions under IC 6-1.1-21 to replace revenue lost from
the granting of homestead credits under IC 6-1.1-20.9-2 and
property tax replacement credits under IC 6-1.1-21-5.
Sec. 6. A political subdivision's allocation of income taxes under
IC 6-11-7 is calculated based on the political subdivision's
controlled tax limit.
Sec. 7. A political subdivision is not required to spend the entire
amount of the political subdivision's controlled tax limit for a year
or impose property taxes equal to the amount of the political
subdivision's controlled levy limit.
Sec. 8. The use of controlled income taxes to increase the amount
of money in:
(1) the political subdivision's rainy day fund; or
(2) another fund that the political subdivision is saving under
a written plan approved by the department;
IC 6-1.1-12-42;
in the year immediately preceding the particular year.
STEP THREE: Divide the sum of the three (3) quotients
computed in STEP TWO by three (3).
Sec. 6. (a) A separate controlled tax limit shall be computed for
each of the following:
(1) The school corporation's school general fund and charter
schools under IC 6-1.1-19-1.5.
(2) The school corporation's transportation fund under
IC 21-2-11.5-3.
(3) The school corporation's school bus replacement fund
under IC 21-2-11.5-3.
(b) A school corporation's controlled tax limit for the:
(1) school corporation's school general fund and charter
schools under IC 6-1.1-19-1.5 is the maximum controlled tax
that may be imposed in the county under IC 6-1.1-19-1.5;
(2) school corporation's transportation fund under
IC 21-2-11.5-3 is the maximum controlled tax that may be
imposed in the county under IC 21-2-11.5-3; and
(3) school corporation's school bus replacement fund under
IC 21-2-11.5-3 is the maximum controlled tax that may be
imposed in the county under IC 21-2-11.5-3.
Sec. 7. The department shall compute a controlled tax limit for
each political subdivision that imposed a property tax in 2005 as if
this chapter applied to the political subdivision in 2005. The
controlled tax limit computed under this section shall be used in
computing a political subdivision's:
(1) 2006 controlled tax limit under section 3 of this chapter;
and
(2) annual controlled tax increase that is eligible to be funded
from income taxes under IC 6-11.
Sec. 8. The 2005 controlled tax limit for a political subdivision,
other than a school corporation, is the sum of the following:
(1) The remainder, without any adjustment under
IC 6-13-4-10, of the total amount of property taxes certified by
the department to be imposed in the county for the political
subdivision in 2005:
(A) after deducting the property taxes attributable to
excluded taxes, as certified by the department; and
(B) adjusted to eliminate the:
(i) cumulative effects of any temporary adjustments in the
certified amount; and
(ii) cumulative effects of any incorrect data, computations,
and advertisements on the certified amount;
as determined by the department.
(2) The amounts, if any, of county adjusted gross income taxes
(before its repeal) that were applied by the taxing units in the
county as property tax replacement credits to reduce the
individual levies of the taxing units, as provided in IC 6-3.5-1.1
(before its repeal) in 2005.
(3) The amounts, if any, by which the maximum permissible ad
valorem property tax levies of the taxing units of the county
were reduced under IC 6-1.1-18.5-3(b) STEP EIGHT (before
its repeal) in 2005.
(5) The difference between:
(A) the amount determined in IC 6-1.1-18.5-3(e) STEP
FOUR (before its repeal); minus
(B) the amount the civil taxing units' levies were increased
because of the reduction in the civil taxing units' base year
certified shares under IC 6-1.1-18.5-3(e) (before its repeal);
in 2005.
Sec. 9. A school corporation's 2005 controlled tax limit is the
school corporation's controlled tax limit, as determined under
section 6 of this chapter for 2005.
Sec. 10. Except as permitted to be increased under IC 6-12-5-6,
a political subdivision's controlled levy limit for the ensuing year is
the lesser of the following:
(1) The political subdivision's controlled levy limit for the
immediately preceding year.
(2) The political subdivision's controlled tax limit for the
ensuing year.
Sec. 11. The department shall compute a controlled levy limit for
each political subdivision that imposed a property tax in 2005 as if
this chapter applied to the political subdivision in 2005. The
controlled levy limit computed under this section shall be used in
computing a political subdivision's:
(1) 2006 controlled levy limit under section 10 of this chapter;
and
(2) annual controlled tax increase that is eligible to be funded
from income taxes under IC 6-11.
Sec. 12. A political subdivision's 2005 controlled levy limit is
equal to the political subdivision's 2005 controlled tax limit.
Sec. 13. (a) This section applies to the determination of the
controlled tax limit and controlled levy limit for a political
subdivision:
(1) for which no certified taxes were imposed in the
immediately preceding year; and
(2) that existed on March 1 of the preceding year.
(b) The controlled tax limit for a political subdivision described
in subsection (a) in the ensuing year is the amount certified under
subsection (c).
(c) The political subdivision shall refer its proposed budget for
the ensuing year to the department before July 2 of the
immediately preceding year. The department shall make the final
determination concerning the political subdivision's budget,
controlled levy limit, and controlled tax limit for the ensuing year
before the immediately following August 2. The amount certified
under this section is the political subdivision's controlled levy limit
and controlled tax limit for the ensuing year.
Chapter 5. Adjustments
Sec. 1. The department may make an adjustment for any of the
reasons specified in this article or IC 6-13. The department may
increase a controlled levy limit only as permitted under section 6 of
this chapter.
Sec. 2. Subject to this article, an adjustment under this article
may be made on the department's own motion or after an appeal
under IC 6-13. To the extent possible, the department shall make
adjustments required by this article before certifying a political
subdivision's controlled tax limit and controlled tax levy to the
political subdivision under IC 6-13-5.
Sec. 3. An adjustment may be a:
(1) permanent adjustment that affects the computation of the
political subdivision's controlled tax limit or controlled tax
levy, or both, in all future years; or
(2) temporary adjustment that affects the computation of the
political subdivision's controlled tax limit or controlled tax
levy, or both, in only the years specified by the department;
as determined by the department. The department may make an
adjustment as a temporary adjustment only if the department
determines that a law specifies that the adjustment is temporary,
a permanent adjustment is not reasonably necessary to carry out
the continuing governmental responsibilities of a political
subdivision, or the conditions that justify the adjustment will not
have a continuing effect on the political subdivision.
Sec. 4. If an adjustment is temporary, the department shall
determine the years to which the adjustment applies.
Sec. 5. If a political subdivision is located in more than one (1)
county and an adjustment is not directly related to the controlled
taxes raised in a particular county, the department may apportion
the adjustment among the counties in which the political
subdivision is located in proportion to any of the following:
(1) Each county's share of the controlled taxes certified by the
department for the political subdivision in the immediately
preceding year, as determined without considering the
adjustment.
(2) Each county's share of the assessed valuation of taxable
property in the political subdivision, if an apportionment under
subdivision (1) does not justly reflect the obligation of each
county to provide funding for the political subdivision.
(3) The cost of the services provided to each county, if an
apportionment under subdivisions (1) and (2) do not justly
reflect the obligation of each county to provide funding for the
political subdivision.
(4) Any other formula that justly reflects the obligation of each
county to provide funding for the political subdivision, if an
apportionment under subdivisions (1) through (3) do not justly
reflect the obligation of each county to provide funding for the
political subdivision.
Sec. 6. The department may increase a political subdivision's
controlled levy limit only:
(1) as allowed under IC 6-11-4-13 concerning the establishment
a controlled tax limit and controlled levy limit for a new
political subdivision;
(2) to make temporary adjustment to fund a shortfall in
property taxes or correct the cumulative effects of incorrect
data, computations, or advertisements on property taxes in
appropriate circumstances; or
(3) by the amount by which another political subdivision's
controlled levy limit is reduced.
Sec. 7. An adjustment under this article or IC 6-13 is subject to
judicial review in the same manner as an appeal under IC 6-13.
Sec. 8. The department may make an adjustment if a political
subdivision, in an appeal filed under IC 6-13, demonstrates that the
political subdivision cannot carry out the governmental functions
committed to it by law without the adjustment unless the political
subdivision is given the authority for which it petitions. The
amount of the adjustment is that which is reasonably necessary for
the political subdivision to carry out its governmental functions
committed to it by law.
Sec. 9. The department may make an adjustment if a political
subdivision, in an appeal filed under IC 6-13, demonstrates that the
adjustment is reasonably necessary to fund the operation of:
(1) a new facility opened by the political subdivision after
December 31, 1972; or
(2) an existing facility that has not been used for at least three
(3) years and that is being reopened by the political subdivision
after July 1, 1988.
The adjustment, if approved, shall be an amount equal to the
increase in costs resulting from the activity described in subdivision
(1) or (2). In determining the amount of the increased costs, the
department shall consider the costs to the political subdivision of
complying with safety, health, space, heat, or lighting standards
required by state or federal law or regulation and the other
physical operation costs that in the opinion of the department
justify an adjustment.
Sec. 10. The department may make an adjustment if a political
subdivision, in an appeal filed under IC 6-13, demonstrates that the
adjustment is reasonably necessary due to increased costs of the
political subdivision resulting from:
(1) annexation;
(2) consolidation; or
(3) other extensions of governmental services by the political
subdivision to additional geographic areas or persons.
The amount of the adjustment is the amount reasonably necessary
to pay the increased costs.
Sec. 11. The department may make an adjustment to eliminate
the effects of temporary adjustments made by the department.
Sec. 12. Subject to section 13 of this chapter, the department may
make an adjustment to eliminate the cumulative effects of incorrect
data, computations, or advertisements on controlled taxes. If the
adjustment is made for an ensuing year after income tax rates have
been certified, the department may order a distribution from the
political subdivision's rainy day fund for the ensuing year to
replace the amount lost in the ensuing year as a result of the
incorrect data, computations, or advertisements.
Sec. 13. The primary method of funding a shortfall is to order a
distribution from the rainy day fund to cover the shortfall. The
amount used to cover the shortfall would be replaced through the
imposition of an excluded income tax under IC 6-11-9 in the years
determined by the department. However, for good cause, the
department may make an adjustment to eliminate the effects of a
shortfall of controlled taxes.
Sec. 14. The department may make a temporary adjustment to
eliminate a political subdivision's excessive cash balances:
(1) that a political subdivision:
(A) has accumulated; or
(B) will accumulate in the ensuing year if an adjustment is
not made under this section; and
(2) that are available for the purposes for which a controlled
tax would otherwise be imposed.
Sec. 15. The department may not consider any of the following as
excessive cash balances:
(1) Money in a political subdivision's rainy day fund under
IC 36-1-8-5.1.
(2) Money that is being accumulated by a political subdivision
in a rainy day fund or for another purpose approved by the
department.
(3) Gifts, bequests, and grants from a private individual, the
federal government, or another entity.
(4) Money designated in a law as miscellaneous revenue or
otherwise designated by law or rule of the department as
revenue that is not to be considered in determining a political
subdivision's controlled tax limit.
(5) Excluded taxes.
(6) The proceeds of bonds or other obligations approved by the
department.
Sec. 16. The department shall consider money in a political
subdivision's excess revenue fund account under IC 6-13-22 as an
excessive cash balance.
Sec. 17. The department may make an adjustment to reflect a
reduction in the:
(1) political subdivision's services;
(2) political subdivision's cost of services; or
(3) geographic areas or persons served by the political
subdivision.
Sec. 18. The department shall make the adjustments reasonably
necessary to do the following:
(1) To pay the principal or interest on an obligation to meet the
requirements of the family and children's fund for child
services (as defined in IC 12-19-7-1) other than loans and bonds
payable under IC 6-15-3-8 .
(2) To pay the principal or interest on an obligation to meet the
requirements of the children's psychiatric residential treatment
services fund for children's psychiatric residential treatment
services (as defined in IC 12-19-7.5-1) other than loans and
bonds payable under IC 6-15-3-8.
Chapter 6. Additional Relief and Requirements
Sec. 1. If grounds exist for an adjustment under this article or
IC 6-13, the department may do any of the following:
(1) Order a transfer of money from the political subdivision's
rainy day fund under IC 36-1-8-5.1 to temporarily replace the
amount of the shortfall.
(2) Order a transfer from the political subdivision's excess
revenue fund account.
(3) Grant any necessary permission for a grant or grants from
any funds of the state that are available for the purpose.
(4) Grant any necessary permission for a loan or loans from
any funds of the state that are available for the purpose.
(5) Grant any necessary permission for the political subdivision
to borrow funds from a source other than the state or any
necessary assistance in obtaining the loan.
(6) Grant any necessary permission for an advance or advances
of funds that will become payable to the political subdivision
under any law providing for the payment of state funds to the
political subdivision.
(7) Grant permission to the political subdivision to:
(A) cancel any unpaid obligation of the political subdivision's
general fund to the political subdivision's cumulative
building fund; or
(B) use, for general fund purposes, any unobligated balance
in the political subdivision's cumulative building fund and
the proceeds of any levy made or to be made by the political
subdivision for the political subdivision's cumulative building
fund.
(8) Grant permission, subject to any agreement with the
bondholders, to use, for general fund purposes, any
unobligated balance in any construction fund, including any
unobligated proceeds of a sale of the political subdivision's
general obligation bonds.
Sec. 2. (a) This section applies only to a school corporation.
(b) This section does not apply to an adjustment granted for any
of the following:
(1) An adjustment for the transportation fund that is necessary
because of a transportation operating cost increase of at least
ten percent (10%) over the preceding year as a result of at least
one (1) of the following:
(A) A fuel expense increase.
(B) A significant increase in the number of students enrolled
in the school corporation who need transportation or a
significant increase in the mileage traveled by the school
corporation's buses due to students enrolled in the school
corporation as compared to the previous year.
(C) A significant increase in the number of students enrolled
in special education who need transportation or a significant
increase in the mileage traveled by the school corporation's
buses due to students enrolled in special education as
compared to the previous year.
(D) Increased transportation operating costs due to
compliance with a court ordered desegregation plan.
(E) The closure of a school building within the school
corporation that results in a significant increase in the
distances that students must be transported to attend school
in another school building.
(2) An adjustment that is necessary because the amount of total
revenue actually received or estimated to be received by the
school corporation on behalf of students transferring to the
school corporation is less than the total transfer tuition
payments actually made or estimated to be made on behalf of
students transferring from the school corporation.
(c) Every school corporation with respect to which the
department authorizes an adjustment under IC 6-12-5-8 is, if the
school corporation accepts the adjustment, the school corporation
is prohibited throughout any year in which or for which the school
corporation receives the adjustment from taking any of the
prohibited actions described in this section without the prior
approval of the department.
(d) The prohibited actions are any of the following:
(1) The acquisition of real estate for school building purposes,
the construction of new school buildings, or the remodeling or
renovation of existing school buildings.
(2) The making of a lease of real or personal property for an
annual rental or the incurring of any other contractual
obligation (except an employment contract for a new employee,
which contract is to supersede the contract of a terminating
employee) calling for an annual outlay by the school
corporation in excess of ten thousand dollars ($10,000).
(3) The purchase of personal property for a consideration in
excess of ten thousand dollars ($10,000).
(4) The adoption or advertising of a budget, tax levy, or tax
rate for any year.
(e) If a school corporation subject to the controls described in this
section takes any of the actions described in subsection (d) without
having obtained the prior approval of the department, the
department may take appropriate steps to reduce or terminate any
adjustment granted under IC 6-12-5 or any other relief granted
under section 1 of this chapter.
Sec. 3. (a) In addition to, or instead of, any adjustment under
IC 6-12-5, the department may permit a school corporation to
make a referendum tax levy for the ensuing year under this section
if a majority of the individuals voting in a referendum held in the
school corporation approves the school corporation making a
referendum tax levy.
(b) If the school corporation requests that the department take
the steps necessary to cause a referendum to be conducted, the
department shall proceed as follows:
(1) The question to be submitted to the voters in the
referendum must read as follows:
"For the __ (insert number) year or years immediately
following the holding of the referendum, shall the school
corporation impose a property tax rate that does not exceed
_____________ (insert amount) cents ($0.__) (insert amount)
on each one hundred dollars ($100) of assessed valuation and
that is in addition to the school corporation's normal tax
rate?".
The voters in a referendum may not approve a referendum tax
levy that is imposed for more than seven (7) years. However, a
referendum tax levy may be reimposed or extended under this
section.
(2) The department shall act under IC 3-10-9-3 to certify the
question to be voted on at the referendum to the county
election board of each county in which any part of the school
corporation lies. Each county clerk shall, upon receiving the
question certified by the department, call a meeting of the
county election board to make arrangements for the
referendum. The referendum shall be held in the next primary
or general election in which all the registered voters who are
residents of the school corporation are entitled to vote after
certification of the question under IC 3-10-9-3. However, if the
referendum would be held at a primary or general election
more than six (6) months after certification by the department,
the referendum shall be held at a special election to be
conducted not less than ninety (90) days after the question is
certified to the circuit court clerk or clerks by the department.
The school corporation shall notify each affected county
election board of the date on which the school corporation
desires that the referendum be held, and, if practicable, the
referendum shall be held on the day specified by the school
corporation. The referendum shall be held under the direction
of the county election board, which shall take all steps
necessary to carry out the referendum. If a primary election,
general election, or special election is held during the sixty (60)
days preceding or following the special election described in
this subdivision and is held in an election district that includes
some, but not all, of the school corporation, the county election
board may also adopt orders to specify when the registration
period for the elections cease and resume under IC 3-7-13-10.
Not less than ten (10) days before the date on which the
referendum is to be held, the county election board shall cause
notice of the question that is to be voted upon at the
referendum to be published in accordance with IC 5-3-1. If the
referendum is not conducted at a primary or general election,
the school corporation in which the referendum is to be held
shall pay all the costs of holding the referendum.
(3) Each county election board shall cause the question
certified to the circuit court clerk by the tax control board to be
placed on the ballot in the form prescribed by IC 3-10-9-4. The
county election board shall also cause an adequate supply of
ballots and voting equipment to be delivered to the precinct
election board of each precinct in which the referendum is to
be held.
(4) The individuals entitled to vote in the referendum are all
the registered voters resident in the school corporation.
(5) Each precinct election board shall count the affirmative
votes and the negative votes cast in the referendum and shall
certify those two (2) totals to the county election board of each
county in which the referendum is held. The circuit court clerk
of each county shall, immediately after the votes cast in the
referendum have been counted, certify the results of the
referendum to the department. If a majority of the individuals
who voted in the referendum voted "yes" on the referendum
question, the department, upon being notified of the result of
the referendum, shall take prompt and appropriate steps to
notify the school corporation that the appellant school
corporation is authorized to collect, for the year that next
follows the year in which the referendum is held, a referendum
tax levy not greater than the amount approved in the
referendum. The referendum tax levy may be imposed for the
number of years approved by the voters following the
referendum for the school corporation in which the
referendum is held. If a majority of the individuals who voted
in the referendum voted "yes" on the referendum question, the
school corporation shall establish a referendum tax levy fund
under IC 21-2-11.6. A school corporation's referendum tax levy
may not be considered in the determination of the school
corporation's state tuition support under IC 21-3-1.7 or the
determination of the school corporation's controlled levy limit
or controlled tax limit under this article and IC 21-3-1.7. If a
majority of the persons who voted in the referendum did not
vote "yes" on the referendum question, the school corporation
may not make any referendum levy for its general fund, and
another referendum under this section may not be held for a
period of one (1) year after the date of the referendum.
Sec. 4. With respect to any political subdivision to which a loan
or an advance of state funds is made under section 1 of this
chapter, or for which a loan or an advance is recommended under
section 1 of this chapter for purposes other than for the purpose of
remedying a shortfall under IC 6-13-17-3, the department may
authorize an additional excluded property tax levy for a specified
year solely for the purpose of enabling the political subdivision to
repay the loan or advance. The department shall, in the
department's order, specify the amount of the authorized
additional excluded property tax levy and take appropriate steps
to ensure that the amount of the proceeds of the additional
excluded property tax levy that should be used for loan repayment
purposes is not used for any other purpose. The department may
not exercise the power described in this section for a particular
subdivision for more than one (1) year in any period of four (4)
consecutive years.
who is not otherwise a party to a contract for financial advisory
services for a school building construction project.
Sec. 6. The nonvoting members of the board shall be appointed
as follows:
(1) One (1) member of the house of representatives, appointed
by the speaker of the house.
(2) One (1) member of the senate, appointed by the president
pro tempore of the senate.
Sec. 7. A member of the board serves at the will of the member's
appointing authority.
Sec. 8. The board shall annually hold an organizational meeting.
At this organizational meeting, the board shall elect a chairperson
and a secretary from its membership. The board shall meet after
each organizational meeting as often as its business requires.
Sec. 9. The department shall provide the board with rooms, staff,
and secretarial assistance for its meetings.
Sec. 10. (a) Members of the board serve without compensation,
except as provided in this section.
(b) Each member of the board who is not a state employee is
entitled to receive both of the following:
(1) The minimum salary per diem provided by
IC 4-10-11-2.1(b).
(2) Reimbursement for travel expenses and other expenses
actually incurred in connection with the member's duties, as
provided in the state travel policies and procedures established
by the Indiana department of administration and approved by
the budget agency.
(c) Each member of the board who is a state employee is entitled
to reimbursement for travel expenses and other expenses actually
incurred in connection with the member's duties, as provided in the
state travel policies and procedures established by the Indiana
department of administration and approved by the budget agency.
Sec. 11. To carry out its responsibilities, the local government tax
control board has the power to:
(1) conduct hearings; and
(2) require any officer or member of a political subdivision to:
(A) appear before the local government control board; or
(B) provide the local government control board with any
relevant records or books.
Sec. 12. If an officer or a member:
(1) fails to appear at a hearing of the local government tax
control board after having been given written notice from the
local government tax control board requiring attendance of the
officer or member; or
(2) fails to produce for the local government tax control board's
use the books and records that the local government tax control
board by written notice required the officer or member to
produce;
the local government tax control board may file an affidavit in the
circuit court in the jurisdiction in which the officer or member may
be found setting forth the facts of the failure.
Sec. 13. Upon the filing of an affidavit under section 12 of this
chapter, the circuit court shall promptly issue a summons, and the
sheriff of the county within which the circuit court is sitting shall
serve the summons. The summons must command the officer or
member to:
(1) appear before the board;
(2) provide information to the board; or
(3) produce books and records for the board's use;
as the case may be.
Sec. 14. Disobedience of the summons constitutes, and is
punishable as, a contempt of the circuit court that issued the
summons.
Sec. 15. All expenses incident to the filing of an affidavit under
section 12 of this chapter and the issuance and service of a
summons shall be charged to the officer or member against whom
the summons is issued, unless the circuit court finds that the officer
or member was acting in good faith and with reasonable cause. If
the circuit court finds that the officer or member was acting in
good faith and with reasonable cause or if an affidavit is filed and
no summons is issued, the expenses shall be charged against the
county in which the affidavit was filed and shall be allowed by the
proper fiscal officers of that county.
Sec. 16. In considering an appeal, the board has the power to:
(1) conduct hearings; and
(2) require any officer or member of a political subdivision to:
this section, the department shall give taxpayers a reasonable
opportunity to appeal budgets, taxes, and tax rates under this
article.
Sec. 10. After 2005, for the purposes of certifying property taxes
and property tax rates and applying homestead credits and
property tax replacement credits:
(1) the department;
(2) county auditors; and
(3) county treasurers;
shall compute, apply, and bill property taxes , property tax,
homestead credits, and property tax replacement credits rates in
counties that received a certified distribution of county adjusted
gross income tax in 2005 the same way that the department
calculates and applies property taxes, property tax rates,
homestead credits, and property tax replacement credits in other
counties.
Sec. 11. The department may establish the method by which
calculations for controlled tax limits, controlled levy limits, total
allowable tax increase amounts, annual controlled tax increases,
taxes, tax rates, allocations, distributions, property tax replacement
credits, homestead credits, and other related matters are rounded
whenever a law does not establish the method for rounding.
Chapter 5. Exchange of Revenue Data and Assumptions;
Correction of Errors
Sec. 1. Each year before July 2 or a later date specified by the
department, a county auditor shall certify to the department the
property tax and assessed value information specified by the
department.
Sec. 2. Each year before August 2, the department shall certify
the following information for each political subdivision:
(1) The political subdivision's controlled tax limit for the
current year and the political subdivision's controlled tax limit
for the ensuing year, as determined before granting any
appeals under IC 6-13-13 or making any corrections under this
chapter.
(2) The political subdivision's controlled levy limit for the
current year and the political subdivision's controlled levy limit
for the ensuing year.
the county and the department. The statement must contain at least
the following:
(1) Information concerning the assessed valuation in the
political subdivision for the ensuing year.
(2) An estimate of the taxes to be distributed to the political
subdivision during the last six (6) months of the current year.
(3) The current assessed valuation as shown on the abstract of
charges.
(4) The average growth in assessed valuation in the political
subdivision over the preceding three (3) years, excluding years
in which a general reassessment occurs, determined according
to procedures established by the department.
(5) The balance in the political subdivision's excess revenue
fund account.
(6) Any other information at the disposal of the county auditor
that might affect the assessed value used in the budget adoption
process.
Sec. 8. The estimate of taxes to be distributed under section 7 of
this chapter must be based on:
(1) the abstract of taxes levied and collectible for the current
year, less any taxes previously distributed for the year; and
(2) any other information at the disposal of the county auditor
that might affect the estimate.
Sec. 9. The fiscal officer of each political subdivision shall review
and present the information received under this chapter to the
proper officers of the political subdivision.
Sec. 10. If any information:
(1) certified under this chapter;
(2) distributed by the department to a council, county auditor,
or political subdivision under any law;
(3) distributed by the county auditor to a council, a political
subdivision, or the department under any law; or
(4) distributed by a political subdivision to a council, the county
auditor, another political subdivision, or the department under
any law;
relating to property taxes or income taxes contains an error, the
authority distributing the information may correct the error by
distributing an amended statement identifying the changes being
made and the source of the error. If a fiscal officer discovers an
error, the fiscal office shall notify the authority distributing the
information to resolve the error.
Sec. 11. (a) The department may adjust taxes, tax rates, budgets,
allocations, distributions, property tax replacement credits,
homestead credits, controlled levy limits, and controlled tax limits,
order a temporary distribution from a political subdivision's rainy
day fund, or take any other action, as necessary, to eliminate the
cumulative effect of incorrect data, computations, or
advertisements if the proposed adjustment:
(1) either:
(A) is based on information first obtained by the political
subdivision or council after the initial publication of a notice
for a public hearing under this article or IC 6-11;
(B) results from:
(i) an erroneous computation or any other mathematical
error; or
(ii) the use of erroneous data; or
(C) is based on an advertising error; and
(2) in the case of an adjustment affecting the amount of a tax or
a tax rate, is published by the county auditor or a political
subdivision according to a notice provided by the department.
(b) The department may take an action under this section:
(1) on its own motion after notifying the affected political
subdivision and the county auditor for the affected county;
(2) after receiving notice of an error under section 10 of this
chapter; or
(3) as part of an appeal under IC 6-13-13.
A request under this section may be combined with a request under
IC 6-13-17 to make up a shortfall.
Sec. 12. Information, as corrected under this chapter, shall be
used in setting budgets, controlled tax limits, controlled levy limits,
taxes, tax rates, allocations, and distributions of controlled taxes
and excluded taxes.
Sec. 13. The department shall under IC 6-11 compute tax
amounts, tax rates, allocations, reserves, retention amounts, and
distribution amounts to be used by councils, county auditors, and
political subdivisions in administering the county income tax.
and public works projects need not be made part of the budget.
Sec. 2. The political subdivision shall give notice by publication
to taxpayers of at least the following:
(1) The estimated budget for the ensuing year that identifies the
sources of revenue for each fund that the political subdivision
proposes to use to fund the budget.
(2) If any proposed ordinances are pending before the council
in the county, a separate explanation of any changes the
political subdivision will make in its budget or in the sources of
revenue that the political subdivision proposes to use to fund its
budget if the pending ordinances are adopted.
(3) The current and proposed property tax levies of each fund.
(4) The amount by which the political subdivision is seeking to
increase the political subdivision's controlled tax limit or
controlled levy limit, or both, by appeal under this article, the
sources of revenue that the political subdivision intends to use
in the ensuing year to fund the amount under appeal, and an
explanation of the extent to which the appeal will permanently
increase the amount and rate of taxes imposed in subsequent
years.
(5) The explanation of the political subdivision's budget, taxes,
and other revenues that are required by the department.
Sec. 3. A notice under this chapter may not include an amount
for a cumulative fund sinking fund, or other fund with a fixed rate
levy that is subject to IC 6-15 if notice is not given to the
department in conformity with IC 6-15.
Sec. 4. A political subdivision that is located in more than one (1)
county must publish a notice in each county. The notice published
for a county must separately state the amount of taxes to be raised
in the county for the estimated budget.
Sec. 5. In the notice, the political subdivision shall state the date,
time, and place at which at least one (1) public hearing will be held
on the political subdivision's estimated budget and proposed
sources of revenues to fund the estimated budget.
Sec. 6. The notice must be published at least two (2) times before
the hearing in accordance with IC 5-3-1. The first publication of
the notice must occur at least ten (10) days before the date fixed for
the public hearing.
Sec. 7. A political subdivision shall conduct each public hearing
on the political subdivision's estimated budget and proposed taxes
and other sources of revenue to fund the estimated budget at the
date, time, and place specified in the notices published under this
chapter. However, the political subdivision may move the location
of a hearing to another room by posting a notice at the door where
the published notice indicates the meeting will be held if:
(1) moving to another room is necessary to accommodate all
persons who wish to attend the hearing or if circumstances
make the original meeting place unuseable; and
(2) the site of the relocated hearing is easily accessible from the
original meeting place.
Sec. 8. A political subdivision that is located in more than one (1)
county may conduct a hearing required under this chapter in any
county in which the political subdivision is located. The board of
directors of a solid waste management district established under
IC 13-21 or IC 13-9.5-2 (before its repeal) shall conduct the public
hearing required under this chapter in accordance with the annual
notice of meetings published under IC 13-21-5-2.
Sec. 9. Except to the extent waived by the department, if a fiscal
body does not formulate and publish:
(1) its estimated budget; and
(2) the proposed revenue sources needed to fund the estimated
budget;
as required under this chapter, the most recent annual
appropriations and estimated budget revenue sources needed to
fund the estimated budget shall be treated as the estimated
appropriations and estimated budget revenue sources needed to
fund the estimated budget formulated by the political subdivision
for the ensuing budget year.
Chapter 8. Objection to Estimated Budget or Proposed Taxes
After Hearing
Sec. 1. Ten (10) or more property taxpayers may object to:
(1) a political subdivision's budget; or
(2) the property taxes proposed to fund the budget;
or both, by filing an objection petition with the fiscal officer of the
political subdivision not more than seven (7) days after the hearing.
Sec. 2. The objection petition must specifically identify the
provisions of the:
(1) budget; and
(2) property taxes;
to which the taxpayers object.
Chapter 9. Adoption of Budget
Sec. 1. The fiscal body shall meet each year to adopt one (1) or
more ordinances to fix:
(1) a budget for the political subdivision that identifies the
sources of revenue for each appropriation; and
(2) the property tax levies and property tax rates necessary to
fund the adopted budget;
for the ensuing year.
Sec. 2. Subject to section 7 of this chapter, the fiscal body must
comply with section 1 of this chapter before October 1.
Sec. 3. Except for Indianapolis, Marion County, or a second class
city, the last public hearing specified in the notice under IC 6-13-7
must be completed at least ten (10) days before the fiscal body of
the political subdivision takes final action under section 1 of this
chapter. A public hearing, by any committee or by the entire fiscal
body, for Indianapolis, Marion County, or a second class city may
be held at any time after introduction of the budget.
Sec. 4. If a petition is filed under IC 6-13-8 before the date that
the fiscal body takes final action on the budget, property tax levies,
and property tax rates, the fiscal body of the political subdivision
shall adopt with its budget a finding concerning the objections in
the petition and any testimony presented at the adoption hearing.
Sec. 5. (a) After a political subdivision adopts one (1) or more
ordinances under section 1 of this chapter, the political subdivision
shall immediately file with the county auditor the information in
subsection (b).
(b) The political subdivision must file the number of copies of the
following specified by the department with the county auditor:
(1) The budget for the political subdivision that identifies the
sources of revenue for each appropriation.
(2) The property tax levies and property tax rates that the
political subdivision imposed to fund the adopted budget.
(3) Any findings adopted under section 4 of this chapter.
Sec. 6. Except to the extent waived by the department, if a fiscal
body does not:
(1) fix a budget; and
(2) impose property tax levies and property tax rates;
as required under this chapter, budget, property tax levies, and
property tax rates most recently adopted in accordance with law
shall be treated as the budget, property tax levies, and property tax
rates adopted by the political subdivision for the ensuing year.
Sec. 7. (a) This section applies only to a school corporation that
is engaged in a pilot project to operate under a budget year that is
not a year.
(b) Before February 1 of each year, the officers of the school
corporation shall meet to fix the budget for the school corporation
for the ensuing budget year, with notice given by the same officers.
However, if a resolution adopted under subsection (d) is in effect,
the officers shall meet to fix the budget for the ensuing budget year
before the date specified in section 2 of this chapter.
(c) The school corporation shall file with the county auditor:
(1) a statement of the budget revenue resources needed to fund
the budget adopted by school corporation for the ensuing
budget year;
(2) two (2) copies of the budget adopted by the school
corporation for the ensuing budget year; and
(3) any written notification from the department under this
article that specifies a proposed revision, reduction, or increase
in the budget adopted by the school corporation for the ensuing
budget year.
(d) The governing body of the school corporation may adopt a
resolution to cease using a school year budget year and return to
using a calendar year budget year. A resolution adopted under this
subsection must be adopted after January 1 and before July 1. The
school corporation's initial calendar year budget year following the
adoption of a resolution under this subsection begins on January
1 of the year following the year the resolution is adopted. The first
six (6) months of the initial calendar year budget for the school
corporation must be consistent with the last six (6) months of the
final school year budget fixed by the department of local
government finance before the adoption of a resolution under this
subsection.
a public library shall submit its proposed budget, tax rates, and tax
levies to the fiscal body determined under section 4 of this chapter.
The governing body of a public library shall submit its proposed
operating budget and tax rates and tax levies for the operating
budget to the fiscal body determined under IC 36-12-1-14. The:
(1) proposed budget; and
(2) proposed tax levies needed to fund the proposed budget;
fixed by the governing body shall be submitted at least fourteen
(14) days before the appropriate fiscal body is required to hold
budget approval hearings under IC 6-13-7.
Sec. 4. (a) The appropriate fiscal body required to conduct a
review under section 5 of this chapter for a political subdivision
other than a public library is the fiscal body determined under this
section.
(b) If:
(1) the assessed valuation of a political subdivision without a
majority of elected officials on its governing board is entirely
contained within a city or town; or
(2) the assessed valuation of the political subdivision is not
entirely contained within a city or town but the political
subdivision was originally established by the city or town;
the governing body shall submit the information required under
section 2 of this chapter to the city or town fiscal body.
(c) If subsection (b) does not apply, the governing body of the
political subdivision shall submit the information required under
section 3 of this chapter to the county fiscal body in the county
where the political subdivision has the most assessed valuation.
Sec. 5. The reviewing fiscal body shall review the information
provided under section 3 of this chapter and adopt an ordinance
fixing:
(1) a final budget; and
(2) property tax rates and property tax levies needed to fund
the final budget;
for the political subdivision. The reviewing fiscal body may reduce
or modify but not increase the proposed budget, property tax rates,
and property tax levies needed to fund the proposed budget.
However, the power to review information and adopt budgets,
property tax rates, and property tax levies for a public library is
limited to the operating budget of the public library.
Chapter 11. Notice of Adoption of Budget, Tax Rates, and Tax
Levies
Sec. 1. Before October 1, the county auditor shall send a certified
copy of:
(1) any income tax ordinance adopted in the year; and
(2) the results of the vote on the ordinance;
to the department and the department of state revenue by certified
mail, if the county auditor has not previously sent the information
under IC 6-11-3.
Sec. 2. In each year before October 15, the county auditor shall
prepare a notice of the:
(1) property tax rates to be charged on each one hundred
dollars ($100) of assessed valuation in each taxing district in;
(2) income taxes to be impose in the county in; and
(3) the actions taken by the council in the year that affect;
the ensuing year. The notice shall also inform taxpayers that the
department shall conduct a hearing under IC 6-13-14 on the
budgets and taxes adopted in the county. To the extent reasonably
determinable by the county auditor, the notice must indicate the
extent to which a proposed tax or tax rate exceeds the limitations
imposed by law on the income taxes and property taxes imposed
for any political subdivision in the county. The notice must also
inform the taxpayers of the manner in which they may initiate an
appeal of a political subdivision's action. The county auditor shall
post the notice at the county courthouse and publish it in two (2)
newspapers that represent different political parties and have a
general circulation in the county.
Sec. 3. The county auditor shall certify the:
(1) budgets adopted for political subdivisions in the county for
the ensuing year;
(2) property tax levies, property tax rates, and income tax rate
to be imposed in the county in the ensuing year; and
(3) any other information required by the department;
to the department for final review.
Sec. 4. To the extent reasonably determinable by the county
auditor, the certification under section 3 of this chapter must
indicate the extent to which a proposed tax or tax rate exceeds the
limitations imposed by law on income taxes or property taxes
imposed for any political subdivision in the county. The county
auditor shall give notice to the affected political subdivision of any
certification made under this section.
Chapter 12. Taxpayer Appeal of Final Budget Action
Sec. 1. Except as provided in this chapter, ten (10) or more
property taxpayers in a political subdivision may initiate an appeal
to the department from a final action on:
(1) any part of the budget adopted by the political subdivision;
or
(2) one (1) or more property tax levies or property tax rates
imposed by the political subdivision;
for the ensuing year by filing a statement of their objections with
the county auditor.
Sec. 2. An objection under section 1 of this chapter must be filed
not later than ten (10) days after the publication of the notice
required under IC 6-13-11.
Sec. 3. The statement must specifically identify the provisions of
the budget, property tax levies, property tax rates, income tax, or
income tax rate to which the taxpayers object.
Sec. 4. The county auditor shall forward an objection filed under
this chapter to the department.
Sec. 5. This section applies to provisions of the budget and tax
levy of a political subdivision:
(1) against which an objection petition was filed under
IC 6-13-8; and
(2) that were not changed by the fiscal body of the political
subdivision after hearing the objections.
A group of ten (10) or more property taxpayers may not initiate an
appeal under section 1 of this chapter if less than seventy-five
percent (75%) of the objecting taxpayers under IC 6-13-8 are
objecting taxpayers with respect to the objection statement filed
under section 1 of this chapter.
Chapter 13. Political Subdivision Appeals
Sec. 1. A political subdivision or county auditor in any county
where the political subdivision is located may use the procedures in
this chapter to petition for an adjustment in any combination of the
following:
under section 2 of this chapter and any materials it receives
relevant to those appeals.
Sec. 6. The department shall give expedited treatment to matters
related to the following:
(1) An income tax or income tax rate.
(2) An emergency request for relief by a school that requires a
referendum under IC 6-12.
Sec. 7. Upon receipt of an appeal petition, the local government
tax control board shall immediately proceed to the examination
and consideration of the merits of the petitioner's appeal.
Sec. 8. After the examination, the local government tax control
board shall make a recommendation to the department.
Sec. 9. The department, upon receiving a recommendation from
the local government tax control board, shall enter an order:
(1) adopting;
(2) rejecting; or
(3) adopting in part and rejecting in part;
the recommendation of the local government tax control board.
Sec. 10. The department may make only the adjustments allowed
by law. The department shall make the adjustments necessary to
fund any appropriation that is required by law.
Sec. 11. The petitioner or any affected political subdivision may
petition for judicial review of the final determination of the
department under this chapter. The action must be taken to the tax
court under IC 6-1.1-15 in the same manner that an action is taken
to appeal a final determination of the Indiana board. The petition
must be filed in the tax court not more than forty-five (45) days
after the department enters its final order under this chapter.
Chapter 14. State Review of Budgets and Budget Revenue
Resources
Sec. 1. The department shall review and certify under this
chapter the:
(1) budget, property tax levies, and property tax rates of each
political subdivision;
(2) income tax and income tax rate imposed by each county;
and
(3) allocations of income taxes to each political subdivision;
for an ensuing year.
or increase the department proposes to make. If the adjustment is
a reduction in a budget, tax, tax rate, or allocation, a political
subdivision has one (1) week after the date the political subdivision
receives the notice to provide a written response to the
department's Indianapolis office specifying how to make the
required reductions in the amount budgeted for each office or
department. The department shall make reductions as specified in
the political subdivision's response if the response is provided as
required by this section and sufficiently specifies all necessary
reductions.
Sec. 8. The department may not approve taxes, tax rates, or
allocations for lease payments by a city, town, county, library, or
school corporation if the lease payments are payable to a building
corporation for use by the building corporation for debt service on
bonds and if:
(1) no bonds of the building corporation are outstanding; or
(2) the building corporation has enough legally available funds
on hand to redeem all outstanding bonds payable from the
particular lease rental levy requested.
Sec. 9. The department shall certify its actions to:
(1) the county auditor of each affected county; and
(2) each affected political subdivision.
Sec. 10. The following may petition for judicial review of the final
determination of the department under this chapter:
(1) The political subdivision.
(2) If an objection is filed under IC 6-13-12, a taxpayer who
signed the objection.
(3) The county auditor.
(4) With respect to income tax rates, the department of state
revenue.
The petition must be filed in the tax court not more than forty-five
(45) days after the department certifies its action under section 9 of
this chapter.
Sec. 11. Except as otherwise provided, the department is
expressly directed to complete the duties assigned to it under this
chapter not later than:
(1) November 1 immediately preceding the ensuing year for
matters related to an income tax or income tax rate; and
request for reconsideration within fifteen (15) days after receiving
the request.
Chapter 17. Permissible Adjustments in Controlled Taxes and
Excluded Taxes
Sec. 1. The department may make any adjustment in a budget,
tax, tax rate, or income tax allocation allowed under this article or
another law. The department shall make the adjustments required
under IC 6-12. To the extent possible, the department shall make
adjustments before the department certifies a political subdivision's
controlled tax limit under IC 6-13-5.
Sec. 2. The department may at any time increase a debt service
fund or require an assignment of a political subdivision's allocation
of income taxes for the following reasons:
(1) To pay the principal or interest on a funding, refunding, or
judgment funding obligation of a political subdivision.
(2) To pay the interest or principal on an outstanding
obligation of the political subdivision.
(3) To pay a judgment rendered against the political
subdivision.
(4) To pay lease rentals that have become an obligation of the
political subdivision under IC 21-5-11 or IC 21-5-12.
Alternatively, the department may treat a required increase under
this section in the same manner as a shortfall under this chapter.
Sec. 3. (a) The primary method of funding a shortfall is to order
a distribution from the rainy day fund to cover the shortfall
described in this section. The amount used to cover the shortfall
would be replaced through the imposition of an excluded income
tax under IC 6-11-9 in the years determined by the department.
However, for good cause, the department may adjust taxes, tax
rates, budgets, allocations, controlled levy limits, and controlled tax
limits, order a temporary distribution from a political subdivision's
rainy day fund, or take any other action, as necessary, to eliminate
the cumulative effects of a shortfall in property tax revenue or
income taxes that resulted from any of the following:
(1) Erroneous assessed valuation figures that were:
(A) provided to the political subdivision;
(B) used by the political subdivision in determining its total
property tax rate; and
cost of township assistance. The taxes collected as a result of the tax
rate adopted under this subsection are credited to the township
assistance fund.
Sec. 3. Each council and political subdivision shall fix tax rates
and make appropriations for the appropriate fund that are
sufficient to provide money for each purpose described in the
following:
(1) IC 6-12-5-24.
(2) IC 6-14-3-7.
Sec. 4. Regardless of whether an adjustment is made in any
political subdivision's controlled tax limit, each council and
political subdivision shall fix tax rates and make appropriations for
the appropriate fund that are sufficient for each the following:
(1) Medical assistance under IC 12-13-8-5.
(2) Hospital care for the indigent under IC 12-16-14-3.
(3) Community mental health centers under IC 12-29-2-2.
(4) Children with special health care needs under IC 16-35-3-3.
(5) Any other law requiring the imposition of a tax for a
particular purpose or fund.
Chapter 22. Excess Revenue Account
Sec. 1. As used in this chapter, "account" refers to a political
subdivision's account in a fund.
Sec. 2. As used in this chapter, "excess revenue" refers to revenue
described in section 4 or 5 of this chapter.
Sec. 3. As used in this chapter, "fund" refers to an excess revenue
fund established in a county under this chapter.
Sec. 4. Imposition and collection of the part of a property tax
actually collected by a political subdivision for a year that exceeds
the amount of property taxes certified for the year is valid and may
not be contested on the grounds that the amount exceeds the
political subdivision's:
(1) controlled tax limit;
(2) certified tax; or
(3) tax limits imposed by any other law;
for the applicable year.
Sec. 5. Imposition and collection of the part of an income tax
actually collected by a county for a year that exceeds the amount
of income taxes certified for the year is valid and may not be
contested on the grounds that the amount exceeds:
(1) a political subdivision's:
(A) controlled tax limit;
(B) certified tax; or
(C) tax limits imposed by any other law;
for the applicable year; or
(2) the county's:
(A) certified tax; or
(B) tax limits imposed by any other law.
Sec. 6. An excess revenue fund is established in each county for
the deposit of excess revenue collected in a year.
Sec. 7. An account for each political subdivision in the county is
established in the fund.
Sec. 8. The county treasurer shall administer the fund. The
county treasurer shall invest the money in the fund not currently
needed to meet the obligations of the fund in the same manner as
other public funds may be invested. Interest that accrues from
these investments shall be deposited in the fund. The interest shall
be allocated among the accounts in the fund on the schedule
determined by the department in proportion to the balance in the
account on the date specified by the department.
Sec. 9. Money in the fund or an account in the fund at the end of
a year does not revert to the general fund of any political
subdivision but remains in the fund to be used exclusively for the
purposes of fund.
Sec. 10. The county treasurer shall deposit the excess revenue
collected in the year in the fund.
Sec. 11. The county treasurer shall deposit in a political
subdivision's account:
(1) excess revenue from property taxes imposed by the political
subdivision; and
(2) a proportionate share of the excess revenue collected from
income taxes;
if the sum of the excess property taxes and excess income taxes
exceeds the total amount of property taxes and income tax
allocations certified for the political subdivision for the year.
However, the department may establish procedures for retaining
a small amount of excess revenue in a general account for the
period determined by the department.
Sec. 12. A political subdivision shall:
(1) include the amount in the political subdivision's account
that exceeds one hundred dollars ($100) in the political
subdivision's budget fixed under this article; and
(2) reduce its property tax levies for the ensuing year by the
amount included in the political subdivision's budget under
subdivision (1).
Sec. 13. Except as provided by section 15 of this chapter, a
political subdivision may not spend money in its account until the
expenditure of the money has been included in a budget that has
been approved by the department.
Sec. 14. A transfer of money from the political subdivision's
revenue excess fund account that reduces the political subdivision's
allocation of controlled income taxes or the political subdivision's
levy of controlled property taxes shall be treated as a temporary
adjustment. The amount of the transfer shall be treated as
controlled taxes for the purposes of computing the political
subdivision's controlled tax limits and controlled levy limits for the
ensuing year.
Sec. 15. For the purposes of determining excise tax distributions
to a political subdivision and other distributions that are computed
on the property tax levies imposed by the political subdivision, the
department shall certify the amount of the distribution from an
account that qualifies as property taxes.
Sec. 16. Upon the receipt of a political subdivision's certified
budget, the county auditor shall transfer to the political subdivision
the amount of money in the political subdivision's account that
department has certified for use by the political subdivision.
Sec. 17. A political subdivision may transfer money from its
account to any fund to reimburse the fund for amounts withheld
from the political subdivision as a result of general property tax
refunds paid under IC 6-1.1-26 or general income tax refunds paid
under IC 6-8.1.
Sec. 18. Money distributed from an account may be used for any
lawful purpose for which controlled taxes may be used.
2005]:
ARTICLE 14. APPROVAL OF BONDED INDEBTEDNESS
AND LEASE OBLIGATIONS
Chapter 1. Definitions
Sec. 1. The definitions in IC 6-1.1, IC 6-11, and IC 36-1-2 apply
throughout this article.
Sec. 2. The definitions in this chapter apply throughout this
article.
Sec. 3. "Bonds" refers to bonds or any other evidence of
indebtedness (other than exempt obligations) payable from or
guaranteed by property taxes or income taxes.
Sec. 4. "Controlled debt service" refers to debt service for bonds
for a controlled project.
Sec. 5. "Controlled lease rentals" refers to payments for a lease
of a controlled project.
Sec. 6. "Controlled project" refers to a controlled project
described in IC 6-14-7-3.
Sec. 7. "Debt service" means principal of and interest on bonds.
The term includes the repayment of an advance from the common
school fund under IC 21-1-5-3.
Sec. 8. (a) "Debt service fund" means any of the following funds
for which a property tax is imposed:
(1) A fund established under IC 21-2-4-2 or IC 36-9-15-10.
(2) A fund primarily established to pay or fund loans or bonds
authorized under IC 12-19-5-11, IC 12-19-7-19, or
IC 12-19-7.5-18.
(3) A fund described in subsection (b).
(4) A fund established to pay or fund bond indebtedness or
lease rentals with a term of at least five (5) years.
(5) Any other fund established by a political subdivision that is
similar to a fund described in subdivisions (1) through (4), as
determined by the department.
(b) The term includes the following funds:
Department
Fund Department
Control Name for
Number Fund
0180 Debt Service
0181 Debt Payment
0182 Bond #2
0183 Bond #3
0184 Bond #4
0185 Bond #5
0186 School Pension Debt
0280 Bond-General Sinking
0281 Loan and Interest Payment
0282 Obligation Loan
0283 Lease Rental Payment
0580 Court House Lease Rental
0581 Court House Bond
0780 Bridge Bond and Interest
0781 Thoroughfare Bond
0783 Street Bond
0880 Hospital Lease Rental
0881 Hospital Bond
0882 Medical Center Bond
0883 Township Assistance Bond
0884 County Welfare Bond
0885 Township Assistance Loan
0886 County Welfare Loan
0889 Cumulative Hospital
0980 Levee Bond
0982 Flood Control Bond
0986 Storm Sewer Bond
1080 County Home Bond
1081 Equipment Bond
1180 Fire and Police Equipment Debt
1181 Fire Building Debt
1182 Fire Equipment Debt
1183 Fire Equipment Bond
1184 Police Equipment Debt
1185 Jail Lease Rental
1186 Jail Bond
1187 Emergency Fire Loan
1280 School Bus Debt
1281 School Bus Bond
1380 Park Bond
1381 Park Bond #2
2180 Airport Bond
2181 Airport Sinking
2182 Cemetery Bond
2380 Capital Improvement Bond
2480 Urban Renewal Bond
2481 Community Development Bond
2482 Redevelopment Bond
2483 Redevelopment Bond #2
2484 Industrial Loan
6280 Sewer Bond
6380 Transportation Bond
8080 Special Transportation Debt
8180 Special Airport Debt Service
8280 Special Sanitary Debt Service
8281 Special Sanitary User Charge Debt
8282 Special Sanitation (Liquid) Debt
8283 Solid Waste District Debt Service
8380 Special Flood Control Debt Service
8382 Special Flood Control Debt Service #2
8383 Water District Debt Service
8480 Special Redevelopment Debt
8481 Special Redevelopment Dist Bond
8684 Special Fire Debt
8780 Special Health/Hospital Debt
8880 Indianapolis Consolidated City Redevelopment Debt
8881 Indianapolis Consolidated City Debt Service
8980 Special Consolidated County Flood Control Debt
8981 Special Consolidated County Park Debt
8982 Special Consolidated County Metropolitan
Thoroughfare Debt
8984 Special Consolidated County Metropolitan
Emergency Comm Agency Debt
Sec. 9. "Exempt obligation" refers to bonds or leases designated
as an exempt obligation under IC 6-14-2.
Sec. 10. "Funding bonds" means bonds issued to retire the
principal and accrued interest of any bonds of a political
subdivision that are outstanding.
Sec. 11. "Income taxes" refers to county income taxes imposed
under IC 6-11.
Sec. 12. "Leases" refers to leases payable from or guaranteed by
property taxes or income taxes.
Chapter 2. Exemptions
Sec. 1. IC 6-14-5, IC 6-14-6, and IC 6-14-7 do not apply to debt
or leases designated as an exempt obligation under this chapter.
Sec. 2. Notes representing loans under IC 36-2-6-18, IC 36-3-4-22,
IC 36-4-6-20, or IC 36-5-2-11 that are payable within five (5) years
after issuance are exempt obligations.
Sec. 3. Warrants representing temporary loans that are payable
out of taxes imposed and in the course of collection are exempt
obligations.
Sec. 4. A lease that either:
(1) has a term of less than five (5) years; or
(2) is not a controlled lease;
is an exempt obligation.
Sec. 5. Obligations:
(1) that are not payable from property taxes or income taxes;
and
(2) for which a guarantee of payment from property taxes or
income taxes in the event that payment from another source of
revenue is insufficient has not been made;
are exempt obligations.
Sec. 6. Bonds in a total amount that does not exceed five thousand
dollars ($5,000) are exempt obligations.
Sec. 7. Funding bonds, refunding bonds, and judgment funding
bonds are exempt obligations.
Chapter 3. General Provisions
Sec. 1. Whenever the proper officers of a political subdivision
decide to issue bonds payable from property taxes or county
income taxes to finance a public improvement, they shall adopt an
ordinance or a resolution that sets forth their determination to
issue the bonds.
Sec. 2. A political subdivision may, subject to the limitations
provided by law, issue any bonds, notes, or warrants that it
considers necessary.
the manner provided in this article, IC 6-1.1-20-3 (before its
repeal), or IC 6-1.1-20-3.1 through IC 6-1.1-20-3.2 (before their
repeal).
(5) To pay a judgment rendered against the political
subdivision.
(6) To pay the principal or interest on an obligation to meet the
requirements of the family and children's fund for child
services (as defined in IC 12-19-7-1).
(7) To pay the principal or interest on an obligation to meet the
requirements of the children's psychiatric residential treatment
services fund for children's psychiatric residential treatment
services (as defined in IC 12-19-7.5-1).
Sec. 8. The department and a county income tax council may not
reduce a political subdivision's allocation of county income taxes
below the amount of the political subdivision's allocation of county
income taxes pledged by the political subdivision. A county income
tax council and the department are not required to increase a
political subdivision's allocation of county income taxes to eliminate
the effects on the political subdivision's budget resulting from the
pledge of the political subdivision's allocation to the funding or
payment of an obligation.
Sec. 9. The collection of money in excess of the amount certified
for a debt service fund is valid. The excess is subject to treatment
as excess revenue under IC 6-13-22.
Sec. 10. The department shall develop forms and procedures to
expedite the review of bonded indebtedness and lease rental
obligations under this article. In developing forms and procedures,
the department must seek to avoid unnecessary delays that will
increase the borrowing costs or construction costs of projects and
purposes that a political subdivision would otherwise have the
power to carry out.
Chapter 4. Construction
Sec. 1. Except as provided in section 2 of this chapter, a political
subdivision may not advertise for or receive bids for the
construction of an improvement until the expiration of the later of:
(1) the period within which taxpayers may file a petition for
review of or a remonstrance against the proposed issue; or
(2) the period during which a petition for review of the
proposed issue is pending before the department.
Sec. 2. (a) Whenever a petition for review of a proposed issue is
pending before the department, the department may order the
political subdivision to advertise for and receive bids for the
construction of a public improvement.
(b) When the department issues an order under subsection (a):
(1) the political subdivision shall file a bid report with the
department within five (5) days after the bids are received; and
(2) the department shall render a final decision on the proposed
issue within fifteen (15) days after it receives the bid report.
(c) Notwithstanding the provisions of this section, a political
subdivision may not enter into a contract for the construction of a
public improvement while a petition for review of the bond issue
that is to finance the improvement is pending before the
department.
Sec. 3. The department in determining whether to approve or
disapprove a school building construction project shall consider the
following factors:
(1) The current and proposed square footage of school building
space per student.
(2) Enrollment patterns within the school corporation.
(3) The age and condition of the current school facilities.
(4) The cost per square foot of the school building construction
project.
(5) The effect that completion of the school building
construction project would have on the school corporation's tax
rate.
(6) Any other pertinent matter.
Sec. 4. The department in determining whether to approve or
disapprove a school building construction project may not approve
or recommend the approval of a project that is financed through
the issuance of bonds if the bonds mature more than twenty-five
(25) years after the date of the bonds' issuance.
Sec. 5. After December 31, 1995, the department may not
approve a school corporation's proposed lease rental agreement or
bond issue to finance the construction of additional classrooms
unless the school corporation first:
(1) establishes that additional classroom space is necessary; and
(2) conducts a feasibility study, holds public hearings, and
hears public testimony on using a twelve (12) month school
term (instead of the nine (9) month school term (as described
in IC 20-10.1-2-2)) rather than expanding classroom space.
Chapter 5. Review of Bonds
Sec. 1. This chapter applies when:
(1) the proper officers of a political subdivision decide to issue
bonds in a total amount that exceeds five thousand dollars
($5,000); and
(2) IC 6-14-7 does not apply to the bonds.
The decision to issue bonds may be a preliminary decision.
Sec. 2. A political subdivision may not impose property taxes or
income taxes to pay debt service for the bonds to which this chapter
applies without:
(1) complying with this chapter; and
(2) approval of the proposed issue (or the proposed issue as
reduced by the department) by the department.
Sec. 3. The proper officers of a political subdivision shall give
notice of the decision by:
(1) posting; and
(2) publication once each week for two (2) weeks.
The notice required by this section shall be posted in three (3)
public places in the political subdivision and published in
accordance with IC 5-3-1-4.
Sec 4. (a) Ten (10) or more taxpayers who:
(1) will be affected by the proposed issuance of the bonds; and
(2) wish to object to the issuance on the grounds that it is
unnecessary or excessive;
may file a petition in the office of the county auditor of the county
in which the political subdivision is located.
(b) The petition must be filed within fifteen (15) days after the
notice required by section 3 of this chapter is given. The petition
must contain the objections of the taxpayers and facts that show
that the proposed issue is unnecessary or excessive.
Sec. 5. Whenever taxpayers file a petition in the manner
prescribed in section 4 of this chapter, the county auditor shall
immediately forward a certified copy of the petition and any other
relevant information to the department. A review under sections 6
through 9 of this chapter may be combined with a review under
IC 6-14-8 or IC 6-14-9.
Sec. 6. Upon receipt of a certified petition filed in the manner
prescribed in section 4 of this chapter, the department shall fix a
date, time, and place for a hearing on the matter. The department
shall hold the hearing not less than five (5) or more than thirty (30)
days after the department receives the petition. The department
shall hold the hearing in the political subdivision or in the county
where the political subdivision is located.
Sec. 7. At least five (5) days before the date fixed for the hearing,
the department shall give notice of the hearing, by mail, to the
executive officer of the political subdivision and to the first ten (10)
taxpayers who signed the petition. The mailings shall be addressed
to the officer and the taxpayers at their usual place of residence.
Sec. 8. After the hearing required by this chapter, the
department may approve, disapprove, or reduce the amount of the
proposed issue. The department must render a decision not later
than three (3) months after the hearing. If a decision is not
rendered within that time, the issue is considered approved unless
the department takes the extension provided for in this section. A
three (3) month extension of the period during which the decision
must be rendered may be taken by the department if the
department mails notice of the extension to the executive officer of
the political subdivision and to the first ten (10) taxpayers who
signed the petition at least ten (10) days before the end of the
original three (3) month period. If a decision is not rendered within
the extension period, the issue is considered approved.
Sec. 9. A:
(1) taxpayer who signed a petition under this chapter; or
(2) political subdivision against which a petition referred to in
this chapter is filed;
may petition for judicial review of the final determination of the
department under this chapter. The petition must be filed in the tax
court not more than forty-five (45) days after the department
renders its decision under this chapter.
Chapter 6. Review of Interest Rate
Sec. 1. This chapter applies when the proper officers of a political
subdivision decide to issue any bonds, notes, or warrants that will:
witnessed each signature; and
(D) govern the closing date for the petition period.
Persons requesting forms may not be required to identify
themselves and may be allowed to pick up additional copies to
distribute to other property owners.
(6) Each petition must be verified under oath by at least one (1)
qualified petitioner in a manner prescribed by the state board
of accounts before the petition is filed with the county auditor
under subdivision (7).
(7) Each petition must be filed with the county auditor not
more than thirty (30) days after publication under subdivision
(2) of the notice of the preliminary determination.
(8) The county auditor must file a certificate and each petition
with:
(A) the township trustee, if the political subdivision is a
township, who shall present each petition to the township
board; or
(B) the body that has the authority to authorize the issuance
of the bonds or the execution of a lease, if the political
subdivision is not a township;
not later than fifteen (15) business days after the filing of the
petition requesting a petition and remonstrance process. The
certificate must state the number of petitioners that are owners
of real property within the political subdivision.
If a sufficient petition requesting a petition and remonstrance
process is not filed by owners of real property as set forth in this
section, the political subdivision may issue bonds or enter into a
lease by following the provisions of law relating to the bonds to be
issued or the lease to be entered into.
Sec. 6. If a sufficient petition requesting the application of a
petition and remonstrance process has been filed as set forth in
section 5 of this chapter, the political subdivision shall do the
following:
(1) The proper officers of the political subdivision shall give
notice of the applicability of the petition and remonstrance
process by:
(A) publication in accordance with IC 5-3-1; and
(B) first class mail to the organizations described in section
5(1)(B) of this chapter.
Notice under this subdivision must include a statement that any
owners of real property or tenants of residential property
within the political subdivision who want to petition in favor of
or remonstrate against the proposed debt service or lease
payments must file petitions and remonstrances in compliance
with subdivisions (2) through (4) not earlier than thirty (30)
days or later than sixty (60) days after publication in
accordance with IC 5-3-1.
(2) Not earlier than thirty (30) days or later than sixty (60) days
after the notice under subdivision (1) is given:
(A) petitions (as described in subdivision (3)) in favor of the
bonds or lease; and
(B) remonstrances (as described in subdivision (3)) against
the bonds or lease;
may be filed by an owner or owners of real property or a
tenant or tenants of residential property within the political
subdivision. A petition or remonstrance signed by a tenant of
residential property must be accompanied by an affidavit
setting forth the name of the landlord and the property address
of the tenant's leasehold. Each signature on a petition must be
dated, and the date of signature may not be before the date on
which the petition and remonstrance forms may be issued
under subdivision (3). A petition described in clause (A) or a
remonstrance described in clause (B) must be verified in
compliance with subdivision (4) before the petition or
remonstrance is filed with the county auditor under subdivision
(4).
(3) The state board of accounts shall design and, upon request
by the county auditor, deliver to the county auditor or the
county auditor's designated printer the petition, remonstrance,
and affidavit forms to be used solely in the petition and
remonstrance process described in this section. The county
auditor shall issue to an owner or owners of real property or a
tenant or tenants of residential property within the political
subdivision the number of petition, remonstrance, or affidavit
forms requested by the owner or owners or tenant or tenants.
Each form must be accompanied by instructions detailing the
requirements that:
(A) the carrier and signers must be owners of real property
or tenants of residential property;
(B) the carrier must be a signatory on at least one (1)
petition;
(C) after the signatures have been collected, the carrier must
swear or affirm before a notary public that the carrier
witnessed each signature;
(D) govern the closing date for the petition and remonstrance
period; and
(E) apply to the carrier under section 7 of this chapter.
Persons requesting petition, remonstrance, or affidavit forms
may not be required to identify themselves and may be allowed
to pick up additional copies to distribute to other property
owners or tenants of residential property. The county auditor
may not issue a petition, remonstrance, or affidavit form
earlier than twenty-nine (29) days after the notice is given
under subdivision (1). The county auditor shall certify the date
of issuance on each petition, remonstrance, or affidavit form
that is distributed under this subdivision.
(4) The petitions, remonstrances, and affidavits must be
verified in the manner prescribed by the state board of
accounts and filed with the county auditor within the thirty
(30) to sixty (60) day period described in subdivision (2) in the
manner set forth in section 5 of this chapter relating to requests
for a petition and remonstrance process.
(5) The county auditor must file a certificate and the petition or
remonstrance with the body of the political subdivision charged
with issuing bonds or entering into leases not later than fifteen
(15) business days after the filing of a petition or remonstrance
under subdivision (4), whichever applies, containing ten
thousand (10,000) signatures or less. The county auditor may
take an additional five (5) days to review and certify the
petition or remonstrance for each additional five thousand
(5,000) signatures, up to a maximum of sixty (60) days. The
certificate must state the number of petitioners and
remonstrators that are owners of real property and the
number of petitioners and remonstrators who are tenants of
residential property within the political subdivision.
(6) If a greater number of owners of real property plus tenants
of residential property within the political subdivision sign a
remonstrance than the number that signed a petition, the
bonds petitioned for may not be issued or the lease petitioned
for may not be entered into. The proper officers of the political
subdivision may not make a preliminary determination to issue
bonds or enter into a lease for the controlled project defeated
by the petition and remonstrance process under this section or
any other controlled project that is not substantially different
within one (1) year after the date of the county auditor's
certificate filed under subdivision (5). Withdrawal of a petition
carries the same consequences as a defeat of the petition.
(7) After a political subdivision has gone through the petition
and remonstrance process set forth in this section, the political
subdivision is not required to follow any other remonstrance or
objection procedures under any other law (including section 5
of this chapter) relating to bonds or leases designed to protect
owners of real property and tenants of residential property
within the political subdivision from the imposition of property
taxes to pay debt service or lease rentals. However, the political
subdivision must still receive the approval of the department
required under IC 6-14-8.
Sec. 7. (a) If a petition and remonstrance process is commenced
under section 6 of this chapter, during the sixty (60) day period
commencing with the notice under section 6(1) of this chapter, the
political subdivision seeking to issue bonds or enter into a lease for
the proposed controlled project may not promote a position on the
petition or remonstrance by doing any of the following:
(1) Allowing facilities or equipment, including mail and
messaging systems, owned by the political subdivision to be
used for public relations purposes to promote a position on the
petition or remonstrance unless equal access to the facilities or
equipment is given to persons with a position opposite to that
of the political subdivision.
(2) Making an expenditure of money from a fund controlled by
the political subdivision to promote a position on the petition or
remonstrance (except as necessary to explain the project to the
public) or to pay for the gathering of signatures on a petition
or remonstrance. This subdivision does not prohibit a political
subdivision from making an expenditure of money to an
attorney, an architect, a construction manager, or a financial
adviser for professional services provided with respect to a
controlled project.
(3) Using an employee to promote a position on the petition or
remonstrance during the employee's normal working hours or
paid overtime.
(4) In the case of a school corporation, promoting a position on
a petition or remonstrance by:
(A) using students to transport written materials to their
residences; or
(B) including a statement within another communication sent
to the students' residences.
However, this section does not prohibit an employee of the
political subdivision from carrying out duties with respect to a
petition or remonstrance that are part of the normal and
regular conduct of the employee's office or agency.
(b) A person may not solicit or collect signatures for a petition or
remonstrance on property owned or controlled by the political
subdivision.
Chapter 8. Review by Department
Sec. 1. Subject to section 2 of this chapter, this chapter applies to
the following:
(1) Bonded indebtedness.
(2) Lease rentals under a lease with an original term of at least
five (5) years.
Sec. 2. This chapter does not apply to the following:
(1) Temporary loans made in anticipation of and to be paid
from current revenues of the political subdivision actually
imposed and in the course of collection for the budget year in
which the loans are made.
(2) Bonded indebtedness that will be repaid through property
taxes or income taxes imposed under IC 12-19.
(3) Bonded indebtedness or lease rentals that were approved
under IC 6-1.1-18.5-8 (before its repeal) or IC 6-1.1-19-8
(before its repeal).
determine the estimated impact of the issuance of bonds or
execution of a lease on a political subdivision's property tax rate or
the rate of an income tax in a county where the political subdivision
is located.
Sec. 9. Subject to section 10 of this chapter, the department may:
(1) approve or disapprove the proposed bond issue or lease
agreement; or
(2) approve an alternative financing arrangement by:
(A) reducing the amount of the proposed bond issue or lease
agreement;
(B) modifying other terms of the proposed bond issue or lease
agreement;
(C) approving the use of other funding mechanisms that are
available to the political subdivision to cover all or part of the
costs that would be covered by the proposed bond issue or
lease agreement;
(D) modifying the scope of the proposed project, in the case
of bonds to be issued or a lease to be entered into for the
acquisition, construction, renovation, improvement, or
expansion of a building, a structure, or another public
improvement; or
(E) any combination of the methods described in clauses (A)
through (D).
Sec. 10. In determining whether to approve or disapprove a
proposed bond issue or lease agreement or to approve an
alternative financing arrangement, the department shall consider
the following factors:
(1) Whether the proposed bond issue or lease agreement is
unnecessary or excessive.
(2) With respect to a proposed bond issue or lease agreement
for the acquisition, construction, renovation, improvement,
expansion, or use of a building, a structure, or another public
improvement, whether the civil taxing unit has demonstrated
that an adequate source of funding will be available to cover
annual costs of operating, maintaining, and repairing the
building, structure, or public improvement.
(3) Whether an excessive impact on the political subdivision's
tax rate or on the rate of an income tax imposed in a county
where the political subdivision is located will result from:
(A) the issuance of the bonds or execution of the lease
agreement; and
(B) with respect to a proposed bond issue or lease agreement
for the acquisition, construction, renovation, improvement,
expansion, or use of a building, a structure, or another public
improvement, the annual costs of operating, maintaining,
and repairing the building, structure, or public
improvement.
(4) Whether any costs of acquiring, constructing, renovating,
improving, or expanding a building, a structure, or another
public improvement that are to be financed through the
issuance of bonds or execution of a lease are comparable to the
costs incurred for those purposes by other similarly situated
political subdivisions for similar projects.
(5) With respect to a proposed bond issue or lease agreement
for the acquisition, construction, renovation, improvement,
expansion, or use of a building, a structure, or another public
improvement, whether the building, structure, or public
improvement will be made available to residents of the political
subdivision for uses other than those planned by the political
subdivision.
(6) Any other pertinent matter, including matters described in
IC 6-14-4.
Sec. 11. (a) A political subdivision may petition for judicial
review of the final determination of the department under this
chapter.
(b) The petition for judicial review must be filed in the tax court
not more than forty-five (45) days after the department enters its
order under this chapter.
Sec. 12. A taxpayer may petition for judicial review of the final
determination of the department under this chapter. The petition
must be filed in the tax court not more than thirty (30) days after
the department enters its order under this chapter.
Chapter 9. School Bus Loan Review
Sec. 1. This chapter does not apply to school bus purchase loans
made by a school corporation that will be repaid solely from the
general fund of the school corporation.
Sec. 2. A school corporation must obtain approval from the
department before the school corporation may repay a school bus
purchase loan.
Sec. 3. Before it approves or disapproves a proposed school bus
purchase loan, the department may seek the recommendation of
the local government tax control board or the department of state
revenue.
Sec. 4. Subject to section 5 of this chapter, the department may
either:
(1) approve, disapprove, or modify then approve a school
corporation's proposed school bus purchase loan; or
(2) approve an alternative financing arrangement by:
(A) reducing the amount of the proposed school bus purchase
loan;
(B) modifying other terms of the proposed school bus
purchase loan;
(C) approving the use of other funding mechanisms that are
available to the school corporation to cover all or part of the
costs that would be covered by the proposed school bus
purchase loan;
(D) modifying the scope of the proposed purchase of school
buses; or
(E) any combination of the methods described in clauses (A)
through (D).
Sec. 5. In determining whether to approve or disapprove a
proposed school bus purchase loan, or to approve an alternative
financing arrangement, the department shall consider the following
factors:
(1) Whether the proposed school bus purchase loan is
unnecessary or excessive.
(2) Whether an excessive impact on the tax rates, fees, or other
charges imposed by the school corporation will result from the
annual costs of operating, maintaining, and repairing the
vehicles to be purchased with the loan.
(3) Any other pertinent matter.
Sec. 6. The department shall render a decision not more than
three (3) months after the date it receives a request for approval
under this chapter. However, the department may extend this three
(3) month period by an additional three (3) months if, at least ten
(10) days before the end of the original three (3) month period, the
department sends notice of the extension to the executive officer of
the school corporation.
Sec. 7. A school corporation may petition for judicial review of
the final determination of the department under this chapter. The
petition must be filed in the tax court not more than forty-five (45)
days after the department enters its order under this chapter.
Sec. 8. A taxpayer may petition for judicial review of the final
determination of the department under this chapter. The petition
must be filed in the tax court not more than thirty (30) days after
the department enters its order under this section.
Chapter 10. Jay County School Corporation
Sec. 1. The levy and property tax rate for an excessive levy
granted under IC 6-1.1-19-10.5 (repealed) before January 1, 2006,
is transferred to the Jay County School Corporation debt service
fund for property taxes first due and payable after December 31,
2005.
Sec. 2. The relief under section 1 of this chapter is granted as an
advance of state funds related to an intercept action to be paid back
to the treasurer of state in two hundred forty (240) payments of:
(1) thirteen thousand eight hundred eighty-two dollars
($13,882) beginning on January 15, 2001, and ending May 15,
2003; and
(2) equal installment amounts beginning June 15, 2003, and
ending with final payment on December 31, 2020.
IC 6-15-3-1 or IC 6-15-4-1.
Chapter 2. General Provisions
Sec. 1. A fixed rate levy is not:
(1) subject to the controlled tax limits or controlled levy limits
imposed under IC 6-12; or
(2) included in the computation of a political subdivision's
controlled tax limit or controlled levy limit for a year.
Sec. 2. A fixed rate levy shall be treated as an excluded tax.
Sec. 3. The collection of money in excess of the amount certified
for a fixed rate levy is valid. The excess shall be treated as excess
revenue and deposited in the political subdivision's excess revenue
fund account under IC 6-11-22.
Chapter 3. Cumulative Fund Tax Levy Procedures
Sec. 1. This chapter applies to the establishment and imposition
of a tax levy for cumulative funds under the following:
(1) IC 3-11-6.
(2) IC 8-10-5.
(3) IC 8-16-3.
(4) IC 8-16-3.1.
(5) IC 8-22-3.
(6) IC 14-27-6.
(7) IC 14-33-21.
(8) IC 16-22-4.
(9) IC 16-22-5.
(10) IC 16-22-8.
(11) IC 36-8-14.
(12) IC 36-9-4.
(13) IC 36-9-14.
(14) IC 36-9-14.5.
(15) IC 36-9-15.
(16) IC 36-9-15.5.
(17) IC 36-9-16.
(18) IC 36-9-17.
(19) IC 36-9-17.5.
(20) IC 36-9-26.
(21) IC 36-9-27.
(22) IC 36-10-3.
(23) IC 36-10-4.
the publication of the notice required by section 3 of this chapter:
(1) at least ten (10) taxpayers in the taxing district, if the fund
is authorized under IC 8-10-5-17, IC 8-16-3-1, IC 8-16-3.1-4,
IC 14-27-6-48, IC 14-33-21-2, IC 36-8-14-2, IC 36-9-4-48, or
IC 36-10-4-36;
(2) at least twenty (20) taxpayers in a county served by a
hospital, if the fund is authorized under IC 16-22-4-1;
(3) at least thirty (30) taxpayers in a tax district, if the fund is
authorized under IC 36-10-3-21 or IC 36-10-7.5-19;
(4) at least fifty (50) taxpayers in a municipality, if subdivisions
(1), (2), (3), and (5) do not apply; or
(5) at least one hundred (100) taxpayers in the county, if the
fund is authorized by IC 3-11-6;
may file a petition with the county auditor stating their objections
to an action described in section 2 of this chapter. Upon the filing
of the petition, the county auditor shall immediately certify the
petition to the department.
Sec. 7. (a) The department shall within a reasonable time set a
date for a hearing on a petition filed under section 6 of this chapter.
(b) For a cumulative fund authorized under IC 3-11-6 or
IC 36-9-4-48, the hearing must be held in the county affected by the
proposed action.
Sec. 8. The department shall give notice of the hearing required
by section 7 of this chapter to:
(1) the county auditor; and
(2) the first ten (10) taxpayers whose names appear on the
petition filed under section 6 of this chapter.
The notice must be given by letter signed by the commissioner or
deputy commissioner of the department and sent by mail with
prepaid postage to the auditor and the taxpayers at their usual
places of residence at least five (5) days before the date set for the
hearing.
Sec. 9. (a) After a hearing on a proposal (if a hearing is required)
or after the proposal is submitted to the department under section
4 of this chapter (if no hearing is required), the department shall
certify approval, disapproval, or modification of the proposal to the
county auditor.
(b) A:
IC 14-27-6-48(c), IC 36-9-14.5-8(c), IC 36-9-15.5-8(c), or another
statute specifically provides a different procedure, expenditures
may be made from the fund only after an appropriation has been
made in the manner provided by law for making other
appropriations.
Sec. 15. If the political subdivision establishing a fund:
(1) determines that the purposes for which the fund was
established have been accomplished or no longer exist; or
(2) rescinds the tax levy for the fund;
the governing body establishing the fund for the political
subdivision may transfer the balance in the fund to the general
fund of the political subdivision. The money in a fund does not
otherwise revert to the general fund of a political subdivision at the
end of the political subdivision's fiscal year.
Chapter 4. General Reassessment Adjustment of Fixed Rate
Levies
Sec. 1. This chapter applies to the property tax levies under:
(1) IC 8-10-5-17;
(2) IC 8-22-3-11;
(3) IC 8-22-3-25;
(4) IC 12-29-1-1;
(5) IC 12-29-1-2;
(6) IC 12-29-1-3;
(7) IC 12-29-3-6;
(8) IC 13-21-3-12;
(9) IC 13-21-3-15;
(10) IC 14-27-6-30;
(11) IC 14-33-7-3;
(12) IC 14-33-21-5;
(13) IC 15-1-6-2;
(14) IC 15-1-8-1;
(15) IC 15-1-8-2;
(16) IC 16-20-2-18;
(17) IC 16-20-4-27;
(18) IC 16-20-7-2;
(19) IC 16-23-1-29;
(20) IC 16-23-3-6;
(21) IC 16-23-4-2;
computed in STEP FOUR by three (3).
STEP SIX: Determine the greater of the following:
(A) Zero (0).
(B) The result of the STEP TWO percentage minus the STEP
FIVE percentage.
STEP SEVEN: Determine the quotient of the STEP ONE tax
rate divided by the sum of one (1) plus the STEP SIX
percentage increase.
Sec. 6. The department shall compute the maximum rate allowed
under section 5 of this chapter and provide the rate to each political
subdivision with authority to levy a tax under a statute listed in
section 1 of this chapter.
vehicles (IC 9-20-3 and IC 9-30); the fees and penalties assessed for
overweight vehicles (IC 9-20-4 and IC 9-30); the underground storage
tank fee (IC 13-23); the solid waste management fee (IC 13-20-22); and
any other tax or fee that the department is required to collect or
administer.
wort excise tax collected on each gallon of liquid malt or wort
as provided in IC 7-4-5-1.
license plates);
(BB) IC 9-18-47 (Lewis and Clark bicentennial license plates);
or
(CC) IC 9-18-48 (Riley Children's Foundation license plates); or
(DD) IC 9-18-49 (Professional sports teams license plates);
may apply to the bureau for a personalized license plate to be affixed
to the vehicle for which registration is sought instead of the regular
special recognition license plate.
by the bureau by rule.
(b) The annual fee described in subsection (a)(2) shall be:
(1) collected by the bureau; and
(2) deposited in the capital projects trust fund established by
section 5 of this chapter.
Sec. 5. (a) The capital projects trust fund is established.
(b) The treasurer of state shall invest the money in the capital
projects trust fund not currently needed to meet the obligations of
the capital projects trust fund in the same manner as other public
trust funds are invested. Interest that accrues from these
investments shall be deposited in the capital projects trust fund.
Money in the fund is continuously appropriated for the purposes
of this section.
(c) The budget director shall administer the capital projects trust
fund. Expenses of administering the capital projects trust fund
shall be paid from money in the capital projects trust fund.
(d) On:
(1) June 30 of every year after June 30, 2006; or
(2) any other date designated by the budget director;
an amount designated by the budget director shall be transferred
from the fund to the state general fund or to any fund established
to pay bonds (as defined in IC 5-1-17-3) issued by the Indiana
stadium and convention building authority created by IC 5-1-17.
Money transferred to the state general fund under this subsection
shall be used exclusively to fund appropriations made by the
general assembly for capital projects.
(e) Money in the fund at the end of a state fiscal year does not
revert to the state general fund.
Sec. 6. The budget agency shall adopt rules under IC 4-22-2 to
implement this chapter.
property in the particular calendar year, divided by the county's
total assessed value of all taxable property in the calendar year
immediately preceding the particular calendar year.
STEP THREE: Divide the sum of the three (3) quotients computed
in STEP TWO by three (3). under IC 6-12-4-4 for the year.
psychiatric residential treatment services property tax levy fund,
excluding any amount attributable for loans under this chapter or
IC 12-19-5, equal to the product of:
(1) the controlled taxes certified for the county by the
department of local government finance for the children's
psychiatric residential treatment services property tax levy imposed
for taxes first due and payable fund in the preceding year, as that
levy amount was determined by the department of local
government finance in fixing the civil taxing unit's county's
budget, levy, taxes, and rate tax rates for that preceding calendar
year under, before 2006, IC 6-1.1-17 and after 2005, IC 6-13 and
after eliminating the effects of temporary excessive levy appeals
and any other temporary adjustments made to the levy certified
amount for the calendar year; multiplied by
(2) the greater of:
(A) the county's assessed tax value growth quotient for the
ensuing calendar year, as determined under IC 6-1.1-18.5-2;
IC 6-12-4-4; or
(B) one (1).
When a year in which a statewide general reassessment of real property
first becomes effective is the year preceding the year that the property
tax levy under this subsection will be first due and payable, the amount
to be used in subdivision (2) equals the average of the amounts used in
determining the two (2) most recent adjustments in the county's levy
under this section. If the amount levied in a particular year exceeds the
amount necessary to cover the costs payable from the fund, the levy in
the following year shall be reduced by the amount of surplus money.
(c) For taxes first due and payable in 2004, the department of local
government finance shall adjust the levy for each county to reflect the
county's actual expenses incurred in providing services to children in
facilities licensed under 470 IAC 3-13 in 2000, 2001, and 2002. In
making this adjustment, the department of local government finance
may consider all relevant information, including the county's use of
bond and loan proceeds to pay these expenses.
(d) The department of local government finance shall review each
county's property tax levy under this section and shall enforce the
requirements of this section with respect to that levy.
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 4. Subject to
IC 12-20-23, if the board of commissioners determines from the levies
made controlled taxes imposed by the respective townships for poor
relief purposes that there will be insufficient money in the township
poor relief fund to provide free and available money during the
following year for poor relief purposes on the basis of the total costs of
poor relief granted by the township trustees, as administrators of poor
relief, for the previous twelve (12) months:
(1) the board of commissioners may include estimates for the
advancements in the county general fund budget; and
(2) the county fiscal body may appropriate for the advancement in
the budget and, levy to the extent that an increase in the
county's tax will not exceed the county's controlled tax limit,
impose controlled taxes as adopted by the county fiscal body. and
(3) The department shall include that amount in the final
determination of the county general fund levy. budget.
or
(2) a township that:
(A) has been a controlled township during any part of the
preceding five (5) years;
(B) has a valid poor relief claim that the county auditor cannot
pay within thirty (30) days after the claim is approved for
payment under IC 12-2-1-31 (before its repeal) or IC 12-20-20;
and
(C) uses advances from the county from proceeds of bonds
issued under IC 12-2-1 (before its repeal) or this article.
the county to comply with this section from property taxes first due
and payable in the calendar year immediately preceding the
ensuing calendar year; multiplied by
(B) (2) the county's assessed tax value growth quotient for the
ensuing calendar year, as determined under IC 6-1.1-18.5-2.
IC 6-12-4-4.
before the twenty-fifth day of each calendar month for the
preceding calendar month.
(e) A person taking credit for gasoline or kerosene exported or
returned to a refinery or terminal shall substantiate that credit in the
manner that the state department reasonably requires by rule.
(f) A distributor who fails to file a monthly report and pay the tax due
as required by this chapter is subject to a penalty of five percent (5%)
of the amount of unpaid tax due and interest on the unpaid tax and
penalty at the rate of eight percent (8%) annually. However, if a delay
not exceeding ten (10) days is due to a mistake, an accident, or an
oversight without intent to avoid payment, the administrator may waive
the penalty and interest.
for an exempt purpose described in IC 6-6-2.5-30; and
(2) the person submits to the state department of revenue a
claim for a refund, in the form prescribed by the state of
department of revenue, that includes the following
information:
(A) Any evidence requested by the state department of
revenue concerning the person's:
(i) payment of the fee imposed by this section; and
(ii) receipt of a refund of special fuel taxes from the state
department of revenue under IC 6-6-2.5.
(B) Any other information reasonably requested by the state
department of revenue.
The state department of revenue may make any investigation it
considers necessary before refunding fees to a person.
guilt by lawful proceedings;
(5) to prescribe the fees, tuition, and charges necessary or
convenient to the furthering of the purposes of the institution and
to collect the prescribed fees, tuition, and charges;
(6) to prescribe the conditions and standards of admission of
students upon the bases as are in its opinion in the best interests of
the state and the institution;
(7) to prescribe the curricula and courses of study offered by the
institution and define the standards of proficiency and satisfaction
within the curricula and courses established by the institution;
(8) to award financial aid to students and groups of students out of
the available resources of the institution through scholarships,
fellowships, loans, remissions of fees, tuitions, charges, or other
funds on the basis of financial need, excellence of academic
achievement, or potential achievement or any other basis as the
governing board may find to be reasonably related to the
educational purposes and objectives of the institution and in the
best interest of the institution and the state;
(9) to cooperate with other institutions to the end of better assuring
the availability and utilization of its total resources and
opportunities to provide excellent educational opportunity for all
persons;
(10) to establish and carry out written policies for the investment
of the funds of the institution in the manner provided by
IC 30-4-3-3; and
(11) to lease to any corporation, limited liability company,
partnership, association, or individual real estate title to which is in
the name of an institution or in the name of the state for the use and
benefit of the leasing institution; and
(12) to adopt policies and standards for making property
owned by the institution reasonably available to be used free of
charge as locations for the production of motion pictures.
(b) A lease may be for such term and for such rental, either nominal
or otherwise, as the board determines to be in the best interest of the
institution. No lease shall be executed under this section for a term
exceeding four (4) years unless the execution is approved by the
governor and by the state budget agency. The universities shall be
exempt from all property taxes on any real estate leased under this
section, and the lessee shall be liable for property taxes on the leased
real estate as if the real estate were owned by the lessee in fee simple,
unless the lessee is a student living in university-owned facilities.
(c) This section shall not be construed to deny any tax exemption that
a lessee would have under other laws if the lessee were the owner in fee
simple of the real estate.
specified in section 4 of this chapter; and
(2) are listed in section 2(a)(1) through 2(a)(7) of this chapter.
(b) For each year after 2003, The levy amount of controlled taxes
for the fund may not exceed the levy amount of controlled taxes
certified by the department of local government finance for the
fund for the previous year, as that levy amount was determined by the
department of local government finance in fixing the civil taxing unit's
school corporation's budget, levy, taxes, and rate tax rates for that
preceding calendar year under, before 2006, IC 6-1.1-17 and, after
2005, under IC 6-13 and after eliminating the effects of temporary
excessive levy appeals and any other temporary adjustments made to
the levy amount for the calendar year, multiplied by the assessed value
tax growth quotient determined under STEP FOUR of the following
formula:
STEP ONE: For each of the six (6) calendar years immediately
preceding the year in which a budget is adopted under
IC 6-1.1-17-5 or IC 6-1.1-17-5.6 for part or all of the ensuing
calendar year, divide the Indiana nonfarm personal income for the
calendar year by the Indiana nonfarm personal income for the
calendar year immediately preceding that calendar year, rounding
to the nearest one-thousandth (0.001).
STEP TWO: Determine the sum of the STEP ONE results.
STEP THREE: Divide the STEP TWO result by six (6), rounding
to the nearest one-thousandth (0.001).
STEP FOUR: Determine the lesser of the following:
(A) The STEP THREE quotient.
(B) One and six-hundredths (1.06).
If the amount levied in a particular year exceeds the amount necessary
to cover the costs payable from the fund, the levy in the following year
shall be reduced by the amount of surplus money. IC 6-12-4-4 for the
ensuing year.
(c) Each school corporation may levy impose controlled taxes for
the calendar year a tax for the school bus replacement fund in
accordance with the school bus acquisition plan adopted under section
3.1 of this chapter.
(d) The tax rate and levy for each fund shall be established as a part
of the annual budget for the calendar year in accord with IC 6-1.1-17.
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2006]:
Chapter 19. Racial Balance Fund
Sec. 1. This chapter applies to a school corporation that:
(1) is located in Allen County or Marion County;
(2) is a party to a lawsuit alleging that its schools are segregated
in violation of the Constitution of the United States or federal
law;
(3) desires to improve or maintain racial balance among two (2)
or more schools within the school corporation, regardless of the
school corporation's basis for desiring to improve or maintain
racial balance; and
(4) has a minority student enrollment that comprises at least
ten percent (10%) of its total student enrollment, using the
most recent enrollment data available to the school
corporation.
Sec. 2. As used in this chapter, "minority student" means a
student who is black, Spanish American, Asian American, or
American Indian.
Sec. 3. A school corporation may establish a racial balance fund
if the department of local government finance:
(1) approved a racial balance fund for the school corporation
before January 1, 2006, under IC 6-1.1-19-10 (repealed); or
(2) approves a racial balance fund under this chapter.
Sec. 4. The school corporation may petition the department of
local government finance to impose an ad valorem property tax to
raise revenue for the fund. However, before a school corporation
may impose an ad valorem property tax under this chapter, the
school corporation must file a petition with the department of local
government finance. The petition must be filed before June 1 of the
year preceding the first year the school corporation desires to
impose the property tax and must include the following:
(1) The name of the school corporation.
(2) A settlement agreement among the parties to a
desegregation lawsuit that includes the program that will
improve or maintain racial balance in the school corporation.
(3) The proposed property tax levy.
(4) Any other item required by the department of local
government finance.
Sec. 5. Upon receiving a petition under this chapter, the
department of local government finance shall refer the petition to
the local government tax control board. The local government tax
control board shall consider the petition in the same manner as an
appeal under IC 6-16. The local government tax control board may
recommend to the department of local government finance that a
school corporation be allowed to establish a racial balance fund to
be funded by an ad valorem property tax levy. The amount of the
levy shall be determined each year and the levy may not exceed the
lesser of the following:
(1) The revenue derived from a tax rate of eight and
thirty-three hundredths cents ($0.0833) for each one hundred
dollars ($100) of assessed valuation within the school
corporation.
(2) The revenue derived from a tax rate equal to the difference
between the maximum rate allowed for the school
corporation's capital projects fund under IC 21-2-15 minus the
actual capital projects fund rate that will be in effect for the
school corporation for a particular year.
Sec. 6. The department of local government finance shall review
the petition of the school corporation and:
(1) disapprove the petition if the petition does not comply with
this chapter;
(2) approve the petition; or
(3) approve the petition with modifications.
Sec. 7. A property tax levy under this chapter is in addition to,
and not part of, the school corporation's controlled tax limit and
controlled levy limit for purposes of determining the school
corporation's controlled tax limit and controlled levy limit.
Sec. 8. Money received from a property tax levy under this
chapter shall be deposited in the school corporation's racial balance
fund established under this chapter. Money in the fund may be
used only for education programs that improve or maintain racial
balance in the school corporation. Money in the fund may not be
used for:
(1) transportation; or
(2) capital improvements;
which the transfer occurs if the fiscal body does the following:
(1) Passes an ordinance or a resolution that contains the following:
(A) A statement that the fiscal body has determined that an
emergency exists.
(B) A brief description of the grounds for the emergency.
(C) The date the loan will be repaid that is not more than six (6)
months beyond the budget year in which the transfer occurs.
(2) Immediately forwards the ordinance or resolution to the state
board of accounts and the department of local government finance.
allocation of county income tax for the fund is not needed, the
township fiscal body may order any part of the balance of that fund
transferred to the debt service fund of the school corporation located in
or partly in the township; but if more than one (1) school corporation
is located in or partly in the township, then any sum transferred shall be
transferred to the debt service fund of each of those school corporations
in the same proportion that the part of the assessed valuation of the
school corporation in the township bears to the total assessed valuation
of the township.
(d) Transfers under this section to a political subdivision's rainy day
fund must be made after the last day of the political subdivision's fiscal
year and before March 1 of the subsequent calendar year.
obligation when other revenues are insufficient to meet the
payments required in a year.
(4) To make a temporary transfer or loan of money under
section 4 of this chapter to fund an increase in the budget and
controlled tax limit granted by the department of local
government finance under IC 6-12 or IC 6-13.
(5) To make a temporary transfer or loan of money under
section 4 of this chapter in anticipation of the collection of
property taxes, income taxes, or other sources of revenue.
(6) To make a permanent transfer of money for any other
purpose specified in (1) an ordinance, in the case of a county, city,
or town, or (2) a resolution, in the case of any other political
subdivision, to the extent that the expenditure:
(A) is made from an amount that was deposited in the rainy
day fund before January 1, 2006; or
(B) does not reduce the balance in the rainy day fund to less
than six percent (6%) of the political subdivision's budget for
the year immediately preceding the year of the expenditure.
(b) (d) The fund consists of money deposited in the rainy day
fund:
(1) under subsection (e);
(2) under section 5 of this chapter;
(3) under IC 6-11-9-8; and
(4) from money from any other source: an ordinance or a
resolution adopted under this section must specify the following:
(1) The purposes of the rainy day fund.
(2) The sources of funding for the rainy day fund, which may
include the following:
(A) Unused and unencumbered funds under:
(i) section 5 of this chapter;
(ii) IC 6-3.5-1.1-21.1;
(iii) IC 6-3.5-6-17.3; or
(iv) IC 6-3.5-7-17.3.
(B) any other funding source:
(i) (A) specified in the ordinance or resolution adopted under this
section; and
(ii) (B) not otherwise prohibited by law.
(e) Upon adoption of an ordinance or resolution authorizing a
transfer of money under subsection (c)(1) or (c)(6), the ordinance
or resolution must be submitted to the county auditor and the
department of local government finance. A transfer under
subsection (c)(1) or (c)(6) that reduces a controlled tax or tax rate
does not reduce the political subdivision's controlled tax limit or
controlled levy limit.
(c) (f) The expenditure of money transferred from a rainy day
fund to another fund is subject to the same appropriation process as
other funds that receive tax money.
(d) (g) In any fiscal year, a political subdivision may transfer under
section 5 of this chapter not more than ten percent (10%) of the political
subdivision's total annual budget for that fiscal year, adopted under
IC 6-1.1-17, IC 6-13, to the rainy day fund.
(e) A political subdivision may use only the funding sources specified
in subsection (b)(2)(A) or in the ordinance or resolution establishing the
rainy day fund. The political subdivision may adopt a subsequent
ordinance or resolution authorizing the use of another funding source.
(f) The department of local government finance may not reduce the
actual or maximum permissible levy of a political subdivision as a
result of a balance in the rainy day fund of the political subdivision.
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h).
(5) If an allocation area established in an economic development
area before July 1, 1995, is expanded after June 30, 1995, the
definition in subdivision (1) applies to the expanded portion of the
area added after June 30, 1995.
(6) If an allocation area established in a blighted area before July
1, 1997, is expanded after June 30, 1997, the definition in
subdivision (2) applies to the expanded portion of the area added
after June 30, 1997.
Except as provided in section 39.3 of this chapter, "property taxes"
means taxes imposed under IC 6-1.1 on real property. However, upon
approval by a resolution of the redevelopment commission adopted
before June 1, 1987, "property taxes" also includes taxes imposed under
IC 6-1.1 on depreciable personal property. If a redevelopment
commission adopted before June 1, 1987, a resolution to include within
the definition of property taxes taxes imposed under IC 6-1.1 on
depreciable personal property that has a useful life in excess of eight (8)
years, the commission may by resolution determine the percentage of
taxes imposed under IC 6-1.1 on all depreciable personal property that
will be included within the definition of property taxes. However, the
percentage included must not exceed twenty-five percent (25%) of the
taxes imposed under IC 6-1.1 on all depreciable personal property.
(b) A declaratory resolution adopted under section 15 of this chapter
before January 1, 2006, 2012, may include a provision with respect to
the allocation and distribution of property taxes for the purposes and in
the manner provided in this section. A declaratory resolution previously
adopted may include an allocation provision by the amendment of that
declaratory resolution before January 1, 2006, 2012, in accordance with
the procedures required for its original adoption. A declaratory
resolution or an amendment that establishes an allocation provision
after June 30, 1995, must specify an expiration date for the allocation
provision that may not be more than thirty (30) years after the date on
which the allocation provision is established. However, if bonds or
other obligations that were scheduled when issued to mature before the
specified expiration date and that are payable only from allocated tax
proceeds with respect to the allocation area remain outstanding as of the
expiration date, the allocation provision does not expire until all of the
bonds or other obligations are no longer outstanding. The allocation
provision may apply to all or part of the blighted area. The allocation
provision must require that any property taxes subsequently levied by
or for the benefit of any public body entitled to a distribution of
property taxes on taxable property in the allocation area be allocated
and distributed as follows:
(1) Except as otherwise provided in this section, the proceeds of the
taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made; or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of the
respective taxing units.
(2) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivision (1) shall be
allocated to the redevelopment district and, when collected, paid
into an allocation fund for that allocation area that may be used by
the redevelopment district only to do one (1) or more of the
following:
(A) Pay the principal of and interest on any obligations payable
solely from allocated tax proceeds which are incurred by the
redevelopment district for the purpose of financing or refinancing
the redevelopment of that allocation area.
(B) Establish, augment, or restore the debt service reserve for
bonds payable solely or in part from allocated tax proceeds in
that allocation area.
(C) Pay the principal of and interest on bonds payable from
allocated tax proceeds in that allocation area and from the special
tax levied under section 27 of this chapter.
(D) Pay the principal of and interest on bonds issued by the unit
to pay for local public improvements in or serving that allocation
area.
(E) Pay premiums on the redemption before maturity of bonds
payable solely or in part from allocated tax proceeds in that
allocation area.
(F) Make payments on leases payable from allocated tax
proceeds in that allocation area under section 25.2 of this
chapter.
25.1(a) of this chapter.
(K) Reimburse public and private entities for expenses incurred
in training employees of industrial facilities that are located:
(i) in the allocation area; and
(ii) on a parcel of real property that has been classified as
industrial property under the rules of the department of local
government finance.
However, the total amount of money spent for this purpose in
any year may not exceed the total amount of money in the
allocation fund that is attributable to property taxes paid by the
industrial facilities described in this clause. The reimbursements
under this clause must be made within three (3) years after the
date on which the investments that are the basis for the increment
financing are made.
The allocation fund may not be used for operating expenses of the
commission.
(3) Except as provided in subsection (g), before July 15 of each
year the commission shall do the following:
(A) Determine the amount, if any, by which the base assessed
value when multiplied by the estimated tax rate of the allocation
area will exceed the amount of assessed value needed to produce
the property taxes necessary to make, when due, principal and
interest payments on bonds described in subdivision (2) plus the
amount necessary for other purposes described in subdivision
(2).
(B) Notify the county auditor of the amount, if any, of the
amount of excess assessed value that the commission has
determined may be allocated to the respective taxing units in the
manner prescribed in subdivision (1). The commission may not
authorize an allocation of assessed value to the respective taxing
units under this subdivision if to do so would endanger the
interests of the holders of bonds described in subdivision (2) or
lessors under section 25.3 of this chapter.
(c) For the purpose of allocating taxes levied by or for any taxing unit
or units, the assessed value of taxable property in a territory in the
allocation area that is annexed by any taxing unit after the effective date
of the allocation provision of the declaratory resolution is the lesser of:
(1) the assessed value of the property for the assessment date with
respect to which the allocation and distribution is made; or
(2) the base assessed value.
(d) Property tax proceeds allocable to the redevelopment district
under subsection (b)(2) may, subject to subsection (b)(3), be
irrevocably pledged by the redevelopment district for payment as set
forth in subsection (b)(2).
(e) Notwithstanding any other law, each assessor shall, upon petition
of the redevelopment commission, reassess the taxable property situated
upon or in, or added to, the allocation area, effective on the next
assessment date after the petition.
(f) Notwithstanding any other law, the assessed value of all taxable
property in the allocation area, for purposes of tax limitation, property
tax replacement, and formulation of the budget, tax rate, and tax levy
for each political subdivision in which the property is located is the
lesser of:
(1) the assessed value of the property as valued without regard to
this section; or
(2) the base assessed value.
(g) If any part of the allocation area is located in an enterprise zone
created under IC 4-4-6.1, the unit that designated the allocation area
shall create funds as specified in this subsection. A unit that has
obligations, bonds, or leases payable from allocated tax proceeds under
subsection (b)(2) shall establish an allocation fund for the purposes
specified in subsection (b)(2) and a special zone fund. Such a unit shall,
until the end of the enterprise zone phase out period, deposit each year
in the special zone fund any amount in the allocation fund derived from
property tax proceeds in excess of those described in subsection (b)(1)
from property located in the enterprise zone that exceeds the amount
sufficient for the purposes specified in subsection (b)(2) for the year.
The amount sufficient for purposes specified in subsection (b)(2) for the
year shall be determined based on the pro rata portion of such current
property tax proceeds from the portion of the enterprise zone that is
within the allocation area as compared to all such current property tax
proceeds derived from the allocation area. A unit that has no
obligations, bonds, or leases payable from allocated tax proceeds under
subsection (b)(2) shall establish a special zone fund and deposit all the
property tax proceeds in excess of those described in subsection (b)(1)
in the fund derived from property tax proceeds in excess of those
described in subsection (b)(1) from property located in the enterprise
zone. The unit that creates the special zone fund shall use the fund
(based on the recommendations of the urban enterprise association) for
programs in job training, job enrichment, and basic skill development
that are designed to benefit residents and employers in the enterprise
zone or other purposes specified in subsection (b)(2), except that where
reference is made in subsection (b)(2) to allocation area it shall refer for
purposes of payments from the special zone fund only to that portion
of the allocation area that is also located in the enterprise zone. Those
programs shall reserve at least one-half (1/2) of their enrollment in any
session for residents of the enterprise zone.
(h) The state board of accounts and department of local government
finance shall make the rules and prescribe the forms and procedures that
they consider expedient for the implementation of this chapter. After
each general reassessment under IC 6-1.1-4, the department of local
government finance shall adjust the base assessed value one (1) time to
neutralize any effect of the general reassessment on the property tax
proceeds allocated to the redevelopment district under this section.
However, the adjustment may not include the effect of property tax
abatements under IC 6-1.1-12.1, and the adjustment may not produce
less property tax proceeds allocable to the redevelopment district under
subsection (b)(2) than would otherwise have been received if the
general reassessment had not occurred. The department of local
government finance may prescribe procedures for county and township
officials to follow to assist the department in making the adjustments.
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A), the net
assessed value of property that is assessed as residential property
under the rules of the department of local government finance, as
finally determined for any assessment date after the effective date
of the allocation provision.
(2) If an allocation provision is adopted after June 30, 1997, in a
declaratory resolution or an amendment to a declaratory resolution
establishing a blighted area:
(A) the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A), the net
assessed value of property that is assessed as residential property
under the rules of the department of local government finance, as
finally determined for any assessment date after the effective date
of the allocation provision.
(3) If:
(A) an allocation provision adopted before June 30, 1995, in a
declaratory resolution or an amendment to a declaratory
resolution establishing a blighted area expires after June 30,
1997; and
(B) after June 30, 1997, a new allocation provision is included in
an amendment to the declaratory resolution;
the net assessed value of all the property as finally determined for
the assessment date immediately preceding the effective date of the
allocation provision adopted after June 30, 1997, as adjusted under
subsection (h).
(4) Except as provided in subdivision (5), for all other allocation
areas, the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h).
(5) If an allocation area established in an economic development
area before July 1, 1995, is expanded after June 30, 1995, the
definition in subdivision (1) applies to the expanded portion of the
area added after June 30, 1995.
(6) If an allocation area established in a blighted area before July
1, 1997, is expanded after June 30, 1997, the definition in
subdivision (2) applies to the expanded portion of the area added
after June 30, 1997.
Except as provided in section 26.2 of this chapter, "property taxes"
means taxes imposed under IC 6-1.1 on real property. However, upon
approval by a resolution of the redevelopment commission adopted
before June 1, 1987, "property taxes" also includes taxes imposed under
IC 6-1.1 on depreciable personal property. If a redevelopment
commission adopted before June 1, 1987, a resolution to include within
the definition of property taxes taxes imposed under IC 6-1.1 on
depreciable personal property that has a useful life in excess of eight (8)
years, the commission may by resolution determine the percentage of
taxes imposed under IC 6-1.1 on all depreciable personal property that
will be included within the definition of property taxes. However, the
percentage included must not exceed twenty-five percent (25%) of the
taxes imposed under IC 6-1.1 on all depreciable personal property.
(b) A resolution adopted under section 8 of this chapter before
January 1, 2006, 2012, may include a provision with respect to the
allocation and distribution of property taxes for the purposes and in the
manner provided in this section. A resolution previously adopted may
include an allocation provision by the amendment of that resolution
before January 1, 2006, 2012, in accordance with the procedures
required for its original adoption. A declaratory resolution or an
amendment that establishes an allocation provision after June 30, 1995,
must specify an expiration date for the allocation provision that may not
be more than thirty (30) years after the date on which the allocation
provision is established. However, if bonds or other obligations that
were scheduled when issued to mature before the specified expiration
date and that are payable only from allocated tax proceeds with respect
to the allocation area remain outstanding as of the expiration date, the
allocation provision does not expire until all of the bonds or other
obligations are no longer outstanding. The allocation provision may
apply to all or part of the blighted area. The allocation provision must
require that any property taxes subsequently levied by or for the benefit
of any public body entitled to a distribution of property taxes on taxable
property in the allocation area be allocated and distributed as follows:
(1/2) of the enrollment in any session for residents of the enterprise
zone.
(2) To make loans and grants for the purpose of stimulating
business activity in the enterprise zone or providing employment
for enterprise zone residents in the enterprise zone. These loans and
grants may be made to the following:
(A) Businesses operating in the enterprise zone.
(B) Businesses that will move their operations to the enterprise
zone if such a loan or grant is made.
(3) To provide funds to carry out other purposes specified in
subsection (b)(2). However, where reference is made in subsection
(b)(2) to the allocation area, the reference refers for purposes of
payments from the special zone fund only to that portion of the
allocation area that is also located in the enterprise zone.
(h) The state board of accounts and department of local government
finance shall make the rules and prescribe the forms and procedures that
they consider expedient for the implementation of this chapter. After
each general reassessment under IC 6-1.1-4, the department of local
government finance shall adjust the base assessed value one (1) time to
neutralize any effect of the general reassessment on the property tax
proceeds allocated to the redevelopment district under this section.
However, the adjustment may not include the effect of property tax
abatements under IC 6-1.1-12.1, and the adjustment may not produce
less property tax proceeds allocable to the redevelopment district under
subsection (b)(2) than would otherwise have been received if the
general reassessment had not occurred. The department of local
government finance may prescribe procedures for county and township
officials to follow to assist the department in making the adjustments.
the allocation provision of the declaratory resolution, as adjusted
under subsection (h); plus
(2) to the extent that it is not included in subdivision (1), the net
assessed value of property that is assessed as residential property
under the rules of the department of local government finance, as
finally determined for any assessment date after the effective date
of the allocation provision.
Except as provided in section 55 of this chapter, "property taxes"
means taxes imposed under IC 6-1.1 on real property.
(b) A resolution adopted under section 40 of this chapter before
January 1, 2006, 2012, may include a provision with respect to the
allocation and distribution of property taxes for the purposes and in the
manner provided in this section. A resolution previously adopted may
include an allocation provision by the amendment of that resolution
before January 1, 2006, 2012, in accordance with the procedures
required for its original adoption. A declaratory resolution or an
amendment that establishes an allocation provision must be approved
by resolution of the legislative body of the excluded city and must
specify an expiration date for the allocation provision that may not be
more than thirty (30) years after the date on which the allocation
provision is established. However, if bonds or other obligations that
were scheduled when issued to mature before the specified expiration
date and that are payable only from allocated tax proceeds with respect
to the allocation area remain outstanding as of the expiration date, the
allocation provision does not expire until all of the bonds or other
obligations are no longer outstanding. The allocation provision may
apply to all or part of the blighted area. The allocation provision must
require that any property taxes subsequently levied by or for the benefit
of any public body entitled to a distribution of property taxes on taxable
property in the allocation area be allocated and distributed as follows:
(1) Except as otherwise provided in this section, the proceeds of the
taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made; or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of the
respective taxing units.
(2) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivision (1) shall be
allocated to the redevelopment district and, when collected, paid
into a special fund for that allocation area that may be used by the
redevelopment district only to do one (1) or more of the following:
(A) Pay the principal of and interest on any obligations payable
solely from allocated tax proceeds that are incurred by the
redevelopment district for the purpose of financing or refinancing
the redevelopment of that allocation area.
(B) Establish, augment, or restore the debt service reserve for
bonds payable solely or in part from allocated tax proceeds in
that allocation area.
(C) Pay the principal of and interest on bonds payable from
allocated tax proceeds in that allocation area and from the special
tax levied under section 50 of this chapter.
(D) Pay the principal of and interest on bonds issued by the
excluded city to pay for local public improvements in that
allocation area.
(E) Pay premiums on the redemption before maturity of bonds
payable solely or in part from allocated tax proceeds in that
allocation area.
(F) Make payments on leases payable from allocated tax
proceeds in that allocation area under section 46 of this chapter.
(G) Reimburse the excluded city for expenditures for local public
improvements (which include buildings, park facilities, and other
items set forth in section 45 of this chapter) in that allocation
area.
(H) Reimburse the unit for rentals paid by it for a building or
parking facility in that allocation area under any lease entered
into under IC 36-1-10.
(I) Reimburse public and private entities for expenses incurred in
training employees of industrial facilities that are located:
(i) in the allocation area; and
(ii) on a parcel of real property that has been classified as
industrial property under the rules of the department of local
government finance.
However, the total amount of money spent for this purpose in
any year may not exceed the total amount of money in the
allocation fund that is attributable to property taxes paid by the
industrial facilities described in this clause. The reimbursements
under this clause must be made within three (3) years after the
date on which the investments that are the basis for the increment
financing are made.
The special fund may not be used for operating expenses of the
commission.
(3) Before July 15 of each year, the commission shall do the
following:
(A) Determine the amount, if any, by which property taxes
payable to the allocation fund in the following year will exceed
the amount of assessed value needed to provide the property
taxes necessary to make, when due, principal and interest
payments on bonds described in subdivision (2) plus the amount
necessary for other purposes described in subdivision (2) and
subsection (g).
(B) Notify the county auditor of the amount, if any, of excess
assessed value that the commission has determined may be
allocated to the respective taxing units in the manner prescribed
in subdivision (1).
The commission may not authorize an allocation to the respective
taxing units under this subdivision if to do so would endanger the
interests of the holders of bonds described in subdivision (2).
(c) For the purpose of allocating taxes levied by or for any taxing unit
or units, the assessed value of taxable property in a territory in the
allocation area that is annexed by any taxing unit after the effective date
of the allocation provision of the resolution is the lesser of:
(1) the assessed value of the property for the assessment date with
respect to which the allocation and distribution is made; or
(2) the base assessed value.
(d) Property tax proceeds allocable to the redevelopment district
under subsection (b)(2) may, subject to subsection (b)(3), be
irrevocably pledged by the redevelopment district for payment as set
forth in subsection (b)(2).
(e) Notwithstanding any other law, each assessor shall, upon petition
of the commission, reassess the taxable property situated upon or in, or
added to, the allocation area, effective on the next assessment date after
the petition.
(f) Notwithstanding any other law, the assessed value of all taxable
property in the allocation area, for purposes of tax limitation, property
tax replacement, and formulation of the budget, tax rate, and tax levy
for each political subdivision in which the property is located, is the
lesser of:
(1) the assessed value of the property as valued without regard to
this section; or
(2) the base assessed value.
(g) If any part of the allocation area is located in an enterprise zone
created under IC 4-4-6.1, the unit that designated the allocation area
shall create funds as specified in this subsection. A unit that has
obligations, bonds, or leases payable from allocated tax proceeds under
subsection (b)(2) shall establish an allocation fund for the purposes
specified in subsection (b)(2) and a special zone fund. Such a unit shall,
until the end of the enterprise zone phase out period, deposit each year
in the special zone fund the amount in the allocation fund derived from
property tax proceeds in excess of those described in subsection (b)(1)
from property located in the enterprise zone that exceeds the amount
sufficient for the purposes specified in subsection (b)(2) for the year. A
unit that has no obligations, bonds, or leases payable from allocated tax
proceeds under subsection (b)(2) shall establish a special zone fund and
deposit all the property tax proceeds in excess of those described in
subsection (b)(1) in the fund derived from property tax proceeds in
excess of those described in subsection (b)(1) from property located in
the enterprise zone. The unit that creates the special zone fund shall use
the fund, based on the recommendations of the urban enterprise
association, for one (1) or more of the following purposes:
(1) To pay for programs in job training, job enrichment, and basic
skill development designed to benefit residents and employers in
the enterprise zone. The programs must reserve at least one-half
(1/2) of the enrollment in any session for residents of the enterprise
zone.
(2) To make loans and grants for the purpose of stimulating
business activity in the enterprise zone or providing employment
for enterprise zone residents in an enterprise zone. These loans and
grants may be made to the following:
(A) Businesses operating in the enterprise zone.
(B) Businesses that will move their operations to the enterprise
zone if such a loan or grant is made.
majority of the individual's time spent in Indiana during the taxable
year in question.
procedures set forth for the establishment of an economic development
area under IC 36-7-15.1. A tax area may be changed (including to the
exclusion or inclusion of a facility described in this chapter) or the
terms governing the tax area may be revised in the same manner as the
establishment of the initial tax area. However, after May 14, 2005:
(1) a tax area may be changed only to include the site or future
site of a facility that is or will be the subject of a lease or other
agreement entered into between the capital improvement
board and the Indiana stadium and convention building
authority or any state agency under IC 5-1-17; and
(2) the terms governing a tax area may be revised only with
respect to a facility described in subdivision (1).
(b) In establishing or changing the tax area or revising the terms
governing the tax area, the commission must make the following
findings instead of the findings required for the establishment of
economic development areas:
(1) That a project to be undertaken or that has been undertaken in
the tax area is for a facility at which a professional sporting event
or a convention or similar event will be held.
(2) That the project to be undertaken or that has been undertaken
in the tax area will benefit the public health and welfare and will be
of public utility and benefit.
(3) That the project to be undertaken or that has been undertaken
in the tax area will protect or increase state and local tax bases and
tax revenues.
(c) The tax area established by the commission under this chapter is
a special taxing district authorized by the general assembly to enable
the county to provide special benefits to taxpayers in the tax area by
promoting economic development that is of public use and benefit.
are:
(1) paid during a taxable year to a professional athlete for
professional athletic services;
(2) taxable in Indiana; and
(3) earned in the tax area;
shall be allocated to the tax area if the professional athlete is a member
of a team that plays the majority of the professional athletic events that
the team plays in Indiana in the tax area.
(c) Except as provided by section 14.1 of this chapter, the total
amount of state revenue captured by the tax area may not exceed five
million dollars ($5,000,000) per year for twenty (20) consecutive years.
(d) The resolution establishing the tax area must designate the facility
and the facility site for which the tax area is established and covered
taxes will be used.
(e) The department may adopt rules under IC 4-22-2 and guidelines
to govern the allocation of covered taxes to a tax area.
created by IC 5-1-17 or any state agency pursuant to a lease or
other agreement entered into between the capital improvement
board and the Indiana stadium and convention building authority
or any state agency pursuant to IC 5-1-17-26(b), the capital
improvement board or its designee shall deposit the additional
revenue received under this subsection in a special fund, which
may be used only for the payment of the obligations described in
this subsection.
been undertaken in the tax area will protect or increase state and
local tax bases and tax revenues.
(c) The tax area established under this chapter is a special taxing
district authorized by the general assembly to enable the designating
body to provide special benefits to taxpayers in the tax area by
promoting economic development that is of public use and benefit.
earned for work in the certified technology park, until the amount
deposited equals the income tax incremental amount:
(A) The adjusted gross income tax.
(B) The county adjusted gross income tax.
(C) The county option income tax.
(D) The county economic development income tax.
(E) The optional additional county income tax (IC 6-11-8).
(c) Not more than a total of five million dollars ($5,000,000) may be
deposited in a particular incremental tax financing fund for a certified
technology park over the life of the certified technology park.
(d) On or before the twentieth day of each month, all amounts held
in the incremental tax financing fund established for a certified
technology park shall be distributed to the redevelopment commission
for deposit in the certified technology park fund established under
section 23 of this chapter.
year, depends upon the number of years the county has previously
imposed a tax under this chapter and is determined under the following
table:
NUMBER TAX RATE PER $100
OF YEARS OF ASSESSED
VALUATION
0 $0.04 1 or more $0.070
2005].
and not IC 6-14, as added by this act, applies to petitions,
remonstrances, and the review of debt service or lease rentals for
a controlled project (as defined in IC 6-1.1-20-1.1 (before its
repeal)) if a notice for the debt service or lease rentals has been
published under IC 6-1.1-20-3.1(2) (repealed) before July 1, 2005.
However, an action required by the school property tax control
board shall be taken the by local government tax control board
established under IC 6-13, as added by this act. Proceedings
conducted under this subsection shall be treated as if they had been
conducted under IC 6-14, as added by this act, for all purposes,
including the issuance of obligations to refund an obligation subject
to this subsection.
(e) Notwithstanding IC 6-14, as added by this act, a petition for
approval of bond indebtedness, lease rentals, or bus purchase loans
filed with the department of local government finance under
IC 6-1.1-18.5-8 (as effective before July 1, 2005), IC 6-1.1-19-8 (as
effective before July 1, 2005), or IC 6-1.1-20 (as effective before
July 1, 2005), as appropriate, before July 1, 2005, shall be reviewed
and approved after June 30, 2005, under IC 6-1.1-18.5-8 (as
effective before July 1, 2005), IC 6-1.1-19-8 (as effective before July
1, 2005), or IC 6-1.1-20 (as effective before July 1, 2005), as
appropriate. However, an action required by the school property
tax control board shall be taken the by local government tax
control board established under IC 6-13, as added by this act.
Proceedings conducted under this subsection shall be treated as if
they had been conducted under IC 6-14, as added by this act, for
all purposes, including the issuance of obligations to refund an
obligation subject to this subsection.
(f) Notwithstanding IC 6-14, as added by this act, a bonding bond
or loan agreement that:
(1) is entered into before July 1, 2005;
(2) pledges county adjusted gross income tax, county option
income tax, or county economic development income tax; and
(3) was authorized and approved in conformity with the law in
effect at the time the agreement was entered into;
is valid to the same extent as if it had been authorized and
approved in compliance with all the requirements in IC 6-14, as
added by this act. Otherwise, IC 6-14, as added by this act, applies
to a pledge of county adjusted gross income tax, county option
income tax, or county economic development tax for the funding or
payment of bonded indebtedness or lease rentals to the same extent
as if it were a pledge of county income tax made under IC 6-11, as
added by this act. Any other loan, lease agreement, or bonded
indebtedness, or other obligation that was entered into by a
political subdivision before July 1, 2005, in conformity with the law
in effect at the time the agreement was entered into (including any
requirement requiring approval or review by the state board of tax
commissioners or the department of local government finance)
shall be treated after June 30, 2005, as if it had been entered into
under IC 6-14, as added by this act. Proceedings conducted under
this subsection shall be treated as if they had been conducted under
IC 6-14, as added by this act, for all purposes, including the
issuance of obligations to refund an obligation subject to this
subsection.
(g) An action that:
(1) is taken by a political subdivision before July 1, 2005; and
(2) complies with the requirements in IC 6-14, as added by this
act;
shall be treated after June 30, 2005, as meeting the requirements of
IC 6-14, as added by this act.
(h) IC 6-15, as added by this act, applies only to property taxes
first due and payable after December 31, 2005. An action that:
(1) is taken by a political subdivision before July 1, 2005; and
(2) complies with the requirements in IC 6-15, as added by this
act;
shall be treated after June 30, 2005, as meeting the requirements of
IC 6-15, as added by this act.
(i) The department of local government finance may adopt
temporary rules in the manner provided in IC 4-22-2-37.1 for the
adoption of emergency rules to implement this act. A temporary
rule adopted under this subsection expires on the earliest of the
following:
(1) The date specified in the temporary rule.
(2) The date another temporary rule adopted under this
subsection supersedes the temporary rule.
(3) The date that a rule that supersedes the temporary rule is
adopted under IC 4-22-2.
(4) July 1, 2007.
similar requirement or procedure enacted in this act, a reference
in a law, rule, policy, form, contract, or other document to
IC 6-1.1-17-16.7 (repealed by this act) or IC 6-1.1-18-12 (repealed
by this act) shall be treated as a reference to the appropriate
requirements and procedures in IC 6-13-16, as added by this act,
and IC 6-15, as added by this act.
(e) Each county board of tax adjustment is terminated on July 1,
2005. Political subdivision budgets, tax rates, and taxes for each
year after 2005 shall be reviewed in conformity with IC 6-13, as
added by this act. A reference in any law to the county board of tax
adjustment does not have the effect of creating any procedure or
requirement not included in IC 6-13, as added by this act.
(f) This act, including IC 6-12-3-4, as added by this act, does not
increase the amount of debt that a political subdivision may incur
under the Constitution of the State of Indiana or any law that limits
debt to a percentage of the assessed value in the political
subdivision.
(g) Any law that limits the amount of anticipation warrants that
a political subdivision may issue or other short term borrowing
that a political subdivision may make to a percentage of the levy
imposed for a particular purpose or fund, shall be treated after
December 31, 2005, as a reference to the percentage of the levy and
county income taxes raised for the particular purpose or fund.
(h) A reference in IC 12-13-8-5, IC 12-16-14-3, IC 12-19-7-4,
IC 12-19-7.5-6, IC 12-29-2-2, IC 16-35-3-3, or IC 21-2-11.5-3, all as
amended by this act, to controlled taxes imposed for 2005 shall be
treated as a reference to taxes used to compute the affected political
subdivision's 2005 controlled tax limit under IC 6-11-4, as added by
this act.
property taxes;
(3) provide necessary funding to carry out the essential
governmental functions of political subdivisions;
(4) establish a rainy day fund in each political subdivision as
the primary source of savings for political subdivisions to use
during times of economic distress, provide funds to temporarily
fund shortfalls, and for cash flow needs;
(5) provide for the continued funding and payment after June
30, 2005, of debt and lease rentals incurred by political
subdivisions and allocation areas before July 1, 2005;
(6) limit state distributions to replace revenue lost from the
granting of property tax replacement credits and homestead
credits;
(7) provide additional public and administrative review of debt
and lease rental obligations; and
(8) grant the department of local government finance adequate
authority to implement this act to carry out the intent of the
general assembly.
(b) The repeal of a provision in IC 6-1.1 or IC 6-3.5 by this act
shall not be construed to mean that the general assembly is
rescinding any policy adopted in another act in the same session as
this act. The department of local government finance shall
administer IC 6-11 through IC 6-15, all as added by this act, in a
manner that implements policies adopted in other acts that are not
inconsistent with the policies adopted in IC 6-11 through IC 6-13,
all as added by this act.
(c) Except with respect to limitations on the allocation factors
that may be used to distribute income taxes under IC 6-11-8, as
added by this act, and expansion of the purposes for which local
income taxes may be used, it is the intent of the general assembly
that political subdivisions:
(1) be authorized to raise under the controlled tax limits
imposed by this act substantially similar revenue from
controlled property taxes and controlled income taxes under
IC 6-11-7, as added by this act, as the political subdivision
could have raised if IC 6-11 through IC 6-13, all as added by
this act, had not been enacted; and
(2) receive substantially similar distributions under IC 6-11-8,
as added by this act, as the political subdivision could have
received under the county adjusted gross income tax, county
option income tax, and county economic development income
tax.
(d) The legislative council shall provide for introduction of
corrective legislation in the 2006 session of the general assembly to:
(1) bring any law in conflict with this act (including any law
enacted in the 2005 session of the general assembly) into
conformity with this act;
(2) make any technical change necessary or appropriate as the
result of the passage of this act; and
(3) make any changes in IC 6-11 through IC 6-15, all as added
by this act, or other related amendments in this act that are
necessary to carry out the intent of the general assembly
expressed in this SECTION.
(e) The department of local government finance is authorized to
make the adjustments in taxes, tax rates, allocations, and
distributions otherwise required by IC 6-11 through IC 6-13, all as
added by this act, to carry out the intent of this SECTION in 2005
and 2006. In order to assist the general assembly with bringing the
provisions of IC 6-11 through IC 6-13, all as added by this act, into
conformity with the intent of the general assembly, the department
of local government finance shall submit an initial report of its
activities under this subsection before July 1, 2006, and a final
report, before November 1, 2006, to the general assembly in an
electronic format under IC 5-14-6 and to the governor. The
department of local government finance may submit additional
preliminary reports or recommendations as the department
determines appropriate to assist the general assembly with
carrying out subsection (d).
corporation to administer IC 6-3.1-13 and IC 6-3.1-26, both as
amended by HEA 1003-2005, after February 8, 2005, and before
the effective date of this act, are legalized and validated.
be considered as having occurred before July 1, 2005, to the extent
that the agreement of the parties to the transaction was entered
into before July 1, 2005, and payment for the property or services
furnished in the transaction is made before July 1, 2005,
notwithstanding the delivery of the property or services after June
30, 2005.
(c) The definitions in IC 6-2.5 apply throughout this subsection.
For purposes of IC 6-2.5-5-39, as added by this act, all transactions
shall be considered as having occurred after June 30, 2007, to the
extent that delivery of the property or services constituting selling
at retail is made after that date to the purchaser or to the place of
delivery designated by the purchaser. However, a transaction shall
be considered as having occurred before July 1, 2007, to the extent
that the agreement of the parties to the transaction was entered
into before July 1, 2007, and payment for the property or services
furnished in the transaction is made before July 1, 2007,
notwithstanding the delivery of the property or services after June
30, 2007.
(d) IC 6-3.1-4-2, as amended by this act, applies only to taxable
years beginning after December 31, 2007.
(e) IC 6-3.1-4-3, as amended by this act, applies to taxable years
beginning after December 31, 2005. A taxpayer with a credit
carryover under IC 6-3.1-4-3 on December 31, 2005, from a taxable
year beginning before January 1, 2006, may carry the excess credit
over for a period not to exceed the ten (10) taxable years following
the taxable year in which the taxpayer was first entitled to claim
the credit. This subsection shall not be construed to disallow any
part of an excess credit used under IC 6-3.1-4-3, as effective before
amendment by this act, for any taxable year ending before January
1, 2005.
taxable year beginning before January 1, 2006, may carry the
excess credit over for a period not to exceed the five (5) taxable
years following the taxable year in which the taxpayer was first
entitled to claim the credit. This subsection shall not be construed
to disallow any part of an excess credit used under IC 6-3.1-24-12,
as effective before amendment by this act, for any taxable year
ending before January 1, 2006.
added by this act, applies to assessment dates occurring after
February 28, 2006, for property taxes first due and payable after
December 31, 2006.
and when so amended that said bill do pass.
Committee Vote: Yeas 8, Nays 4.
Kenley