SOURCE: IC 6-10; (06)IN0393.1.2. -->
SECTION 2. IC 6-10 IS ADDED TO THE INDIANA CODE AS A
NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE JULY 1,
2006]:
ARTICLE 10. LOCAL PROPERTY TAX REPLACEMENT
Chapter 1. General Policy
Sec. 1. This article shall be construed liberally and is in addition
and supplemental to the powers conferred by any other law. A unit
may enact any revenue producing measure under this article that
the unit determines to be in the best interests of the unit.
Sec. 2. Taxes that may be imposed under this article are in
addition to any taxes that may be imposed by a unit under any
other Indiana law.
Sec. 3. This article applies only to counties, cities, and towns.
Sec. 4. A tax imposed under this article is a listed tax for
purposes of IC 6-8.1.
Chapter 2. Definitions
Sec. 1. The definitions in IC 6-2.5-1, IC 36-1-2, and this chapter
apply throughout this article.
Sec. 2. "Alcohol" has the meaning set forth in IC 7.1-1-3-4.
Sec. 3. "Alcoholic beverage" has the meaning set forth in
IC 7.1-1-3-5.
Sec. 4. "Cigarette" has the meaning set forth in IC 6-7-1-2.
Sec. 5. "Department" refers to the department of state revenue.
Sec. 6. "Firework" has the meaning set forth in IC 22-11-14-1.
Sec. 7. "Fuel" means:
(1) gasoline; or
(2) special fuel.
Sec. 8. "
Gasoline" has the meaning set forth in IC 6-6-1.1-103.
Sec. 9. "Smoking paraphernalia" means:
(1) cigarette papers;
(2) wrappers; and
(3) tubes;
upon which a tax is imposed by IC 6-7-1-12 and IC 6-7-1-13.
Sec. 10. "Special fuel" has the meaning set forth in
IC 6-6-2.5-22.
Sec. 11. "Tobacco product" means:
(1) any product made from tobacco, other than a cigarette,
that is made for smoking or chewing, or both; or
(2) snuff.
Sec. 12. "Unit" means a county, city, or town. The term does not
include a township.
Chapter 3. County Tax Council Procedures
Sec. 1. (a) A county tax council is established for each county in
Indiana. The membership of each county's county tax council
consists of the fiscal body of the county and the fiscal body of each
city or town that lies either partially or entirely within that county.
(b) Each county tax council has a total of one hundred (100)
votes. Each member of the county tax council is allocated a
percentage of the total one hundred (100) votes that may be cast.
The percentage allocated to a city or town for a year equals the
ratio that the population of the city or town bears to the population
of the county. The percentage that the county is allocated for a
year equals the ratio that the population of all areas in the county
not located in a city or town bears to the population of the county.
On or before January 1 of each year, the county auditor shall
certify to each member of the county tax council the number of
votes, rounded to the nearest one-hundredth (0.01), it has for that
year.
(c) 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 (b) on the population of that
part of the city or town that lies within the county for which the
allocations are being made.
Sec. 2. (a) Using the procedures described in this chapter, a
county tax council may adopt ordinances to:
(1) impose, increase, decrease, or repeal a local gross retail tax
described in IC 6-10-4 in its county;
(2) impose, increase, decrease, or repeal a local fuel tax
described in IC 6-10-5 in its county;
(3) impose, increase, decrease, or repeal a local alcoholic
beverage tax described in IC 6-10-6 in its county;
(4) impose, increase, decrease, or repeal a local tobacco tax
described in IC 6-10-7 in its county; and
(5) impose, increase, decrease, or repeal a local firework tax
described in IC 6-10-8 in its county.
(b) An ordinance adopted by a county tax council under this
chapter takes effect on January 1 of the year following the year in
which the ordinance is adopted.
(c) If the county tax council adopts an ordinance in accordance
with this chapter, the county auditor shall immediately send a
certified copy of the ordinance to the department.
Sec. 3. Any member of a county tax council may present an
ordinance for passage. To do so, the member must pass a
resolution to propose the ordinance to the county tax council and
distribute a copy of the proposed ordinance to the auditor of the
county. The auditor of the county shall treat any proposed
ordinance presented to the auditor by a member under this section
as a casting of all that member's votes in favor of that proposed
ordinance. Subject to the limitations of section 5 of this chapter, the
auditor of the county shall deliver copies of a proposed ordinance
received by the auditor to all members of the county tax council
within ten (10) days after receipt. Once a member receives a
proposed ordinance from the auditor of the county, the member
shall vote on it within thirty (30) days after receipt.
Sec. 4. (a) A member of the county tax council may exercise its
votes by passing a resolution and transmitting the resolution to the
auditor of the county. The form of a resolution is as follows:
"The ______________ (name of unit's fiscal body) casts its
_____ votes _____ (for or against) the proposed ordinance of
the County Tax Council, which reads as follows: [insert text
of ordinance].".
(b) A resolution passed by a member of the county tax council
exercises all votes of the member on the proposed ordinance, and
those votes may not be changed during the year.
Sec. 5. (a) After January 1 but before August 1, a county tax
council may pass:
(1) one (1) ordinance concerning a local gross retail tax;
(2) one (1) ordinance concerning a local fuel tax;
(3) one (1) ordinance concerning a local alcoholic beverage
tax;
(4) one (1) ordinance concerning a local tobacco tax; and
(5) one (1) ordinance concerning a local firework tax;
under this article.
(b) Once an ordinance described in subsection (a) has been
passed, the auditor of the county shall:
(1) cease distributing proposed ordinances of the type that has
been passed for the rest of the year; and
(2) withdraw any other proposed ordinances of the type that
has been passed.
Any votes subsequently received by the auditor of the county on
proposed ordinances of the type that has previously been passed
during that same year are void.
(c) The county tax council may not vote on, nor may the auditor
of the county distribute to the members of the county tax council,
any proposed ordinance during a year if previously during that
same year the auditor of the county received and distributed to the
members of the county tax council a proposed ordinance that, if
passed, would have had substantially the same effect.
(d) The county tax council may not vote on, nor may the auditor
of the county distribute to the members of the county tax council,
any ordinance during a year to impose a local gross retail tax if
previously during that same year the fiscal body of a unit in the
county has adopted an ordinance to impose a local gross retail tax
within the fiscal body's unit.
(e) The county tax council may not vote on, nor may the auditor
of the county distribute to the members of the county tax council,
any ordinance during a year to impose a local fuel tax if previously
during that same year the fiscal body of a unit in the county has
adopted an ordinance to impose a local fuel tax within the fiscal
body's unit.
(f) The county tax council may not vote on, nor may the auditor
of the county distribute to the members of the county tax council,
any ordinance during a year to impose a local alcoholic beverage
tax if previously during that same year the fiscal body of a unit in
the county has adopted an ordinance to impose a local alcoholic
beverage tax within the fiscal body's unit.
(g) The county tax council may not vote on, nor may the auditor
of the county distribute to the members of the county tax council,
any ordinance during a year to impose a local tobacco tax if
previously during that same year the fiscal body of a unit in the
county has adopted an ordinance to impose a local tobacco tax
within the fiscal body's unit.
(h) The county tax council may not vote on, nor may the auditor
of the county distribute to the members of the county tax council,
any ordinance during a year to impose a local firework tax if
previously during that same year the fiscal body of a unit in the
county has adopted an ordinance to impose a local firework tax
within the fiscal body's unit.
Sec. 6. Before a member of the county tax council may propose
an ordinance or vote on a proposed ordinance, the member must
hold a public hearing on the proposed ordinance, with notice of the
time, date, and place of the public hearing given in accordance with
IC 5-3-1.
Sec. 7. An ordinance adopted under this chapter must specify
the rate at which the:
(1) local gross retail tax;
(2) local fuel tax;
(3) local alcoholic beverage tax;
(4) local tobacco tax; or
(5) local firework tax;
is imposed.
Sec. 8. An ordinance adopted under this chapter must specify
that revenues derived from a tax imposed by the ordinance shall be
distributed on the basis of maximum levies as described in section
9 of this chapter.
Sec. 9. The amount of revenues from taxes imposed under this
chapter by the county tax council that the county and each city or
town in the county is entitled to receive during a month equals the
product of:
(1) the total amount of the revenues to be distributed for that
month; multiplied by
(2) a fraction. The numerator of the fraction equals the
maximum permissible property tax levy (as determined under
IC 6-1.1-18-3) of the county, city, or town during the calendar
year in which the month falls. The denominator of the
fraction equals the sum of the maximum permissible property
tax levies of the county and all cities and towns of the county
during the calendar year in which the month falls.
Chapter 4. Local Gross Retail Taxes
Sec. 1. (a) After January 1 but before August 1 of a year:
(1) the fiscal body of a unit; or
(2) the county tax council;
may adopt an ordinance to impose a local gross retail tax under
this chapter.
(b) To adopt an ordinance to impose a local gross retail tax
under this chapter, the county tax council must comply with the
procedures set forth in IC 6-10-3.
(c) Before the fiscal body of a unit may adopt an ordinance
imposing a local gross retail tax, the fiscal body must hold a public
hearing on the proposed ordinance, with notice of the time, date,
and place of the public hearing given in accordance with IC 5-3-1.
(d) If the fiscal body of a unit adopts an ordinance under this
chapter, it shall immediately send a certified copy of the ordinance
to the department.
(e) If the fiscal body of a unit adopts an ordinance under this
chapter, the ordinance takes effect January 1 of the year following
the year in which the ordinance is adopted.
(f) This subsection does not apply to a county governed under
IC 36-2-3.5. If the fiscal body of a county adopts an ordinance
under this chapter, the county executive must also adopt a
substantially similar ordinance to impose the tax.
(g) This subsection applies only to a county governed under
IC 36-2-3.5. If the fiscal body of a county adopts an ordinance
under this chapter, the county executive must approve the
ordinance in the manner prescribed by IC 36-2-4-8 to impose the
tax.
(h) The fiscal body of a unit may not adopt an ordinance to
impose a local gross retail tax if, previously during that same year,
the county tax council has adopted an ordinance imposing a local
gross retail tax in the county.
Sec. 2. (a) A local gross retail tax imposed under this chapter
applies to any transaction:
(1) on which the state gross retail tax is imposed under
IC 6-2.5; and
(2) that occurs in the unit imposing the tax.
(b) The local gross retail tax rate imposed on the gross retail
income received by a retail merchant from a transaction described
in subsection (a) may not exceed one percent (1%).
(c) For purposes of this chapter, the gross retail income received
by the retail merchant from a transaction described in subsection
(a) does not include:
(1) the amount of tax imposed on the transaction under
IC 6-2.5; or
(2) the amount of tax imposed on the transaction under any
other provision of this article.
Sec. 3. (a) The:
(1) fiscal body; or
(2) county tax council;
that imposed the tax may adopt an ordinance to increase, decrease,
or repeal a local gross retail tax under this chapter. The ordinance
must be adopted after January 1 but before August 1 of a year.
(b) The county tax council must comply with the procedures set
forth in IC 6-10-3 to adopt an ordinance to increase, decrease, or
repeal a local gross retail tax under this section.
Sec. 4. A local gross retail tax 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 that is filed for the payment of the tax may be
made on a separate return or may be combined with the return
filed for the payment of the state gross retail tax as prescribed by
the department.
Sec. 5. (a) If the fiscal body of a unit has imposed a local gross
retail tax under this chapter, the department shall notify the fiscal
officer of the unit of the amount of tax paid in the unit.
(b) If a county tax council has imposed a local gross retail tax
under this chapter, the department shall report the total amount
of tax paid in the county to the fiscal officer of each of the units
represented on the county tax council.
(c) The amounts received from a local gross retail tax imposed
under this chapter shall be paid monthly by the treasurer of state
on warrants issued by the auditor of state:
(1) to the fiscal officer of the unit that imposed the tax, if the
tax was imposed by the fiscal body of a unit; or
(2) to the fiscal officer of each of the units whose fiscal bodies
are members of the county tax council, if the local gross retail
tax has been imposed by a county tax council, in accordance
with the ordinance of the county tax council.
Chapter 5. Local Fuel Tax
Sec. 1. (a) After January 1 but before August 1 of a year:
(1) the fiscal body of a unit; or
(2) a county tax council;
may adopt an ordinance to impose a local fuel tax under this
chapter.
(b) To adopt an ordinance to impose a local fuel tax under this
chapter, a county tax council must comply with the procedures set
forth in IC 6-10-3.
(c) Before the fiscal body of a unit may adopt an ordinance
imposing a local fuel tax, the fiscal body must hold a public hearing
on the proposed ordinance, with notice of the time, date, and place
of the public hearing given in accordance with IC 5-3-1.
(d) If the fiscal body of a unit adopts an ordinance under this
chapter, the fiscal body shall immediately send a certified copy of
the ordinance to the department.
(e) If the fiscal body of a unit adopts an ordinance under this
chapter, the ordinance takes effect January 1 of the year following
the year in which the ordinance is adopted.
(f) This subsection does not apply to a county governed under
IC 36-2-3.5. If the fiscal body of a county adopts an ordinance
under this chapter, the county executive must also adopt a
substantially similar ordinance to impose the tax.
(g) This subsection applies only to a county governed under
IC 36-2-3.5. If the fiscal body of a county adopts an ordinance
under this chapter, the county executive must approve the
ordinance in the manner prescribed by IC 36-2-4-8 to impose the
tax.
(h) A fiscal body of a unit may not adopt an ordinance to impose
a local fuel tax if, previously during that same year, the county tax
council has adopted an ordinance imposing a local fuel tax in the
county.
(i) An ordinance adopted under this section must specify the
rate of the local fuel tax, which may not exceed one percent (1%).
Sec. 2. (a) The:
(1) fiscal body; or
(2) county tax council;
that imposed the local fuel tax may adopt an ordinance to increase,
decrease, or repeal the local fuel tax under this chapter. The
ordinance must be adopted after January 1 but before August 1 of
a year.
(b) The county tax council must comply with the procedures set
forth in IC 6-10-3 to adopt an ordinance to repeal a local fuel tax
under this chapter.
Sec. 3. (a) With respect to the sale of gasoline that is dispensed
from a metered pump, a retail merchant located in a unit that has
imposed the local fuel tax under this chapter shall collect, for each
unit of gasoline sold, a local fuel tax in an amount equal to the
product, rounded to the nearest one-tenth of one cent ($0.001), of:
(1) the price per unit before the addition of state and federal
taxes; multiplied by
(2) the tax rate imposed by an ordinance adopted under
section 1 of this chapter.
The retail merchant shall collect the local fuel tax prescribed in this
section even if the transaction is exempt from taxation under
section 6 of this chapter.
(b) With respect to the sale of special fuel that is dispensed from
a metered pump, unless the purchaser provides an exemption
certificate in accordance with IC 6-2.5-8-8, a retail merchant shall
collect, for each unit of special fuel sold, the local fuel tax in an
amount equal to the product, rounded to the nearest one-tenth of
one cent ($0.001), of:
(1) the price per unit before the addition of state and federal
taxes; multiplied by
(2) the tax rate imposed by an ordinance adopted under
section 1 of this chapter.
Unless the exemption certificate is provided, the retail merchant
shall collect the local fuel tax prescribed in this section even if the
transaction is exempt from taxation under section 6 of this chapter.
Sec. 4. A local fuel tax 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 on fuel under
IC 6-2.5-7. However, the return that is filed for the payment of the
tax may be made on a separate return or may be combined with
the return filed for the payment of the state gasoline tax as
prescribed by the department.
Sec. 5. (a) If the fiscal body of a unit has imposed a local fuel tax
under this chapter, the department shall notify the fiscal officer of
the unit of the amount of tax paid in the unit.
(b) If a county tax council has imposed a local fuel tax under this
chapter, the department shall report the total amount of tax paid
in the county to the fiscal officer of each of the units represented on
the county tax council.
(c) The amounts received from a local fuel tax imposed under
this chapter shall be paid monthly by the treasurer of state on
warrants issued by the auditor of state:
(1) to the fiscal officer of the unit that imposed the tax, if the
tax was imposed by the fiscal body of a unit; or
(2) to the fiscal officer of each of the units whose fiscal bodies
are members of the county tax council, if the local fuel tax has
been imposed by a county tax council, in accordance with the
ordinance of the county tax council.
Sec. 6. A transaction that is exempt from taxation under
IC 6-2.5-5 is exempt from a local fuel tax imposed under this
chapter.
Chapter 6. Local Alcoholic Beverage Tax
Sec. 1. (a) After January 1 but before August 1 of a year:
(1) the fiscal body of a unit; or
(2) a county tax council;
may adopt an ordinance to impose a local alcoholic beverage tax
under this chapter.
(b) To adopt an ordinance to impose a local alcoholic beverage
tax under this chapter, a county tax council must comply with the
procedures set forth in IC 6-10-3.
(c) Before the fiscal body of a unit may adopt an ordinance
imposing a local alcoholic beverage tax, the fiscal body must hold
a public hearing on the proposed ordinance, with notice of the
time, date, and place of the public hearing given in accordance with
IC 5-3-1.
(d) If the fiscal body of a unit adopts an ordinance under this
chapter, it shall immediately send a certified copy of the ordinance
to the department.
(e) If the fiscal body of a unit adopts an ordinance under this
chapter, the ordinance takes effect January 1 of the year following
the year in which the ordinance is adopted.
(f) This subsection does not apply to a county governed under
IC 36-2-3.5. If the fiscal body of a county adopts an ordinance
under this chapter, the county executive must also adopt a
substantially similar ordinance to impose the tax.
(g) This subsection applies only to a county governed under
IC 36-2-3.5. If the fiscal body of a county adopts an ordinance
under this chapter, the county executive must approve the
ordinance in the manner prescribed by IC 36-2-4-8 to impose the
tax.
(h) A fiscal body may not adopt an ordinance to impose a local
alcoholic beverage tax if, previously during that same year, the
county tax council has adopted an ordinance imposing a local
alcoholic beverage tax in the county.
Sec. 2. (a) The:
(1) fiscal body; or
(2) county tax council;
that imposed the tax may adopt an ordinance to increase, decrease,
or repeal a local alcoholic beverage tax under this chapter. The
ordinance must be adopted after January 1 but before August 1 of
a year.
(b) The county tax council must comply with the procedures set
forth in IC 6-10-3 to adopt an ordinance to increase, decrease, or
repeal a local alcoholic beverage tax under this section.
Sec. 3. (a) A local alcoholic beverage tax imposed under this
chapter applies to any transaction in which an alcoholic beverage
is furnished, prepared, or served:
(1) for consumption at a location, or on equipment, provided
by a retail merchant;
(2) in the unit in which the tax is imposed; and
(3) by the retail merchant for consideration.
(b) Transactions subject to a local alcoholic beverage tax include
transactions in which an alcoholic beverage is:
(1) served by a retail merchant off the merchant's premises;
or
(2) sold by a retail merchant on a "carryout" or "to go" basis.
(c) The local alcoholic beverage tax rate imposed under this
chapter on the gross retail income received by a retail merchant
from a transaction described in this section may not exceed two
percent (2%).
(d) For purposes of this chapter, the gross retail income received
by the retail merchant from a transaction described in this section
does not include:
(1) the amount of tax imposed on the transaction under
IC 6-2.5 or IC 7.1; or
(2) the amount of tax imposed under IC 6-10-4, if any.
Sec. 4. A local alcoholic beverage tax 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 that is filed for the payment of the
tax may be made on a separate return or may be combined with
the return filed for the payment of the state gross retail tax as
prescribed by the department.
Sec. 5. (a) The department shall notify the fiscal officer of a unit
that imposes a local alcoholic beverage tax under this chapter of
the amount of tax paid in the unit.
(b) If a county tax council has imposed a local alcoholic
beverage tax under this chapter, the department shall report the
total amount of tax paid in the county to the fiscal officer of each
of the units represented on the county tax council.
(c) The amounts received from a local alcoholic beverage tax
imposed under this chapter shall be paid monthly by the treasurer
of state on warrants issued by the auditor of state:
(1) to the fiscal officer of the unit that imposed the tax, if the
tax was imposed by the fiscal body of a unit; or
(2) to the fiscal officer of each of the units represented on the
county tax council, if the local alcoholic beverage tax has been
imposed by a county tax council, in accordance with the
ordinance of the county tax council.
Chapter 7. Local Tobacco Taxes
Sec. 1. (a) After January 1 but before August 1 of a year:
(1) the fiscal body of a unit; or
(2) a county tax council;
may adopt an ordinance to impose a local tobacco tax under this
chapter.
(b) To adopt an ordinance to impose a local tobacco tax under
this chapter, a county tax council must comply with the procedures
set forth in IC 6-10-3.
(c) Before the fiscal body of a unit may adopt an ordinance
imposing a local tobacco tax, the fiscal body must hold a public
hearing on the proposed ordinance, with notice of the time, date,
and place of the public hearing given in accordance with IC 5-3-1.
(d) If the fiscal body of a unit adopts an ordinance under this
chapter, it shall immediately send a certified copy of the ordinance
to the department.
(e) If the fiscal body of a unit adopts an ordinance under this
chapter, the ordinance takes effect January 1 of the year following
the year in which the ordinance is adopted.
(f) This subsection does not apply to a county governed under
IC 36-2-3.5. If the fiscal body of a county adopts an ordinance
under this chapter, the county executive must also adopt a
substantially similar ordinance to impose the tax.
(g) This subsection applies only to a county governed under
IC 36-2-3.5. If the fiscal body of a county adopts an ordinance
under this chapter, the county executive must approve the
ordinance in the manner prescribed by IC 36-2-4-8 to impose the
tax.
(h) A fiscal body may not adopt an ordinance to impose a local
tobacco tax if, previously during that same year, the county tax
council has adopted an ordinance imposing a local tobacco tax in
the county.
Sec. 2. (a) The:
(1) fiscal body; or
(2) county tax council;
that imposed the tax may adopt an ordinance to increase, decrease,
or repeal a local tobacco tax under this chapter. The ordinance
must be adopted after January 1 but before August 1 of a year.
(b) The county tax council must comply with the procedures set
forth in IC 6-10-3 to adopt an ordinance to increase, decrease, or
repeal a local tobacco tax under this section.
Sec. 3. (a) A local tobacco tax imposed under this chapter
applies to any transaction in which cigarettes, tobacco products, or
smoking paraphernalia are:
(1) provided by a retail merchant;
(2) in the unit in which the tax is imposed; and
(3) by the retail merchant for consideration.
(b) The local tobacco tax rate imposed under this chapter on the
gross retail income received by a retail merchant from a
transaction described in this section may not exceed two percent
(2%).
(c) For purposes of this chapter, the gross retail income received
by the retail merchant from a transaction described in subsection
(a) does not include:
(1) the amount of tax imposed on the transaction under
IC 6-2.5 or IC 6-7; or
(2) the amount of tax imposed under IC 6-10-4, if any.
Sec. 4. A local tobacco tax 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 that is filed for the payment of the tax may be
made on a separate return or may be combined with the return
filed for the payment of the state gross retail tax as prescribed by
the department.
Sec. 5. (a) The department shall notify the fiscal officer of a unit
that imposes a local tobacco tax under this chapter of the amount
of tax paid in the unit.
(b) If a county tax council has imposed a local tobacco tax under
this chapter, the department shall report the total amount of tax
paid in the county to the fiscal officer of each of the units
represented on the county tax council.
(c) The amounts received from a local tobacco tax imposed
under this chapter shall be paid monthly by the treasurer of state
on warrants issued by the auditor of state:
(1) to the fiscal officer of the unit that imposed the tax, if the
tax was imposed by the fiscal body of a unit; or
(2) to the fiscal officer of each of the units represented on the
county tax council, if the local tobacco tax has been imposed
by a county tax council, in accordance with the ordinance of
the county tax council.
Chapter 8. Local Firework Tax
Sec. 1. (a) After January 1 but before August 1 of a year:
(1) the fiscal body of a unit; or
(2) a county tax council;
may adopt an ordinance to impose a local firework tax under this
chapter.
(b) To adopt an ordinance to impose a local firework tax under
this chapter, a county tax council must comply with the procedures
set forth in IC 6-10-3.
(c) Before the fiscal body of a unit may adopt an ordinance
imposing a local firework tax, the fiscal body must hold a public
hearing on the proposed ordinance, with notice of the time, date,
and place of the public hearing given in accordance with IC 5-3-1.
(d) If the fiscal body of a unit adopts an ordinance under this
chapter, it shall immediately send a certified copy of the ordinance
to the department.
(e) If the fiscal body of a unit adopts an ordinance under this
chapter, the ordinance takes effect January 1 of the year following
the year in which the ordinance is adopted.
(f) This subsection does not apply to a county governed under
IC 36-2-3.5. If the fiscal body of a county adopts an ordinance
under this chapter, the county executive must also adopt a
substantially similar ordinance to impose the tax.
(g) This subsection applies only to a county governed under
IC 36-2-3.5. If the fiscal body of a county adopts an ordinance
under this chapter, the county executive must approve the
ordinance in the manner prescribed by IC 36-2-4-8 to impose the
tax.
(h) A fiscal body may not adopt an ordinance to impose a local
firework tax if, previously during that same year, the county tax
council has adopted an ordinance imposing a local firework tax in
the county.
Sec. 2. (a) The:
(1) fiscal body; or
(2) county tax council;
that imposed the tax may adopt an ordinance to increase, decrease,
or repeal a local firework tax under this chapter. The ordinance
must be adopted after January 1 but before August 1 of a year.
(b) The county tax council must comply with the procedures set
forth in IC 6-10-3 to adopt an ordinance to increase, decrease, or
repeal a local fireworks tax under this section.
Sec. 3. (a) A local firework tax imposed under this chapter
applies to any transaction in which a firework is:
(1) provided by a retail merchant;
(2) in the unit in which the tax is imposed; and
(3) by the retail merchant for consideration.
(b) The local firework tax rate imposed under this chapter on
the gross retail income received by a retail merchant from a
transaction described in this section may not exceed two percent
(2%).
(c) For purposes of this chapter, the gross retail income received
by the retail merchant from a transaction described in subsection
(a) does not include:
(1) the amount of tax imposed on the transaction under
IC 6-2.5; or
(2) the amount of tax imposed under IC 6-10-4, if any.
Sec. 4. A local firework tax 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 that is filed for the payment of the tax may be
made on a separate return or may be combined with the return
filed for the payment of the state gross retail tax as prescribed by
the department.
Sec. 5. (a) The department shall notify the fiscal officer of a unit
that imposes a local firework tax under this chapter of the amount
of tax paid in the unit.
(b) If a county tax council has imposed a local firework tax
under this chapter, the department shall report the total amount
of tax paid in the county to the fiscal officer of each of the units
represented on the county tax council.
(c) The amounts received from a local firework tax imposed
under this chapter shall be paid monthly by the treasurer of state
on warrants issued by the auditor of state:
(1) to the fiscal officer of the unit that imposed the tax, if the
tax was imposed by the fiscal body of a unit; or
(2) to the fiscal officer of each of the units represented on the
county tax council, if the local firework tax has been imposed
by a county tax council, in accordance with the ordinance of
the county tax council.
Chapter 9. Use of Revenue
Sec. 1. Revenue derived from the imposition of a tax under this
article shall be used by each unit receiving the revenue to reduce
the unit's property tax levy for the ensuing budget year.
Sec. 2. The department of local government finance shall reduce
a unit's maximum permissible property tax levy for the ensuing
budget year by the amount of revenue received from a tax imposed
under this article in the current year.