Introduced Version
HOUSE BILL No. 1399
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 4-23-24.3; IC 5-1-1-1; IC 6-1.1; IC 6-2.5;
IC 6-3.1-31; IC 6-3.5; IC 6-7-1-30.1; IC 6-8.1-1-1; IC 6-10; IC 8-14;
IC 22-2-2-4; IC 36-1.
Synopsis: Taxes and local finances. Establishes the state commission
on responsibility and efficiency. Legalizes certain public debt
instruments. Makes changes in laws governing the adoption of budgets,
tax rates, and tax levies and the administration of public funds.
Eliminates restrictions on property tax replacement fund distributions.
Provides a property tax credit for homesteads whenever the assessed
value increases by more than 75% in a general reassessment. Provides
an income tax credit for sales tax paid on home heating energy.
Provides a temporary sales tax exemption for home heating energy and
gasoline. Permanently caps the price on which sales tax is charged on
gasoline at $1.50 per gallon. Permits a county income tax council or a
municipality to adopt a motor vehicle excise surtax and a wheel tax
under certain circumstances. Authorizes counties, cities, and towns to
adopt the following additional local taxes: (1) Income taxes. (2) Food
and beverage taxes. (3) Innkeeper's taxes. (4) Sales taxes. Increases
Indiana's minimum hourly wage. Provides alternative procedures for
cooperative agreements. Permits establishment of governmental service
territories. Makes other related changes.
Effective: Upon passage; January 1, 2006 (retroactive); May 1, 2006;
July 1, 2006.
Whetstone
January 12, 2006, read first time and referred to Committee on Ways and Means.
Introduced
Second Regular Session 114th General Assembly (2006)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
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Additions: Whenever a new statutory provision is being enacted (or a new constitutional
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NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in
this style type or
this style type reconciles conflicts
between statutes enacted by the 2005 Regular Session of the General Assembly.
HOUSE BILL No. 1399
A BILL FOR AN ACT to amend the Indiana Code concerning state
and local administration.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 4-23-24.3; (06)IN1399.1.1. -->
SECTION 1. IC 4-23-24.3 IS ADDED TO THE INDIANA CODE
AS A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]:
Chapter 24.3. State Commission on Responsibility and
Efficiency
Sec. 1. As used in this chapter, "commission" refers to the state
commission on responsibility and efficiency established by section
2 of this chapter.
Sec. 2. The state commission on responsibility and efficiency is
established.
Sec. 3. The membership of the commission consists of the
following fifteen (15) members:
(1) The president of the Indiana Association of Cities and
Towns
(2) The president of the Association of Indiana Counties.
(3) Three (3) municipal officials appointed by the governor
from a list of nominees submitted by the Indiana Association
of Cities and Towns or a designee of a member appointed
under this subdivision.
(4) Three (3) county officials appointed by the governor from
a list of nominees submitted by the Association of Indiana
Counties or a designee of a member appointed under this
subdivision.
(5) One (1) member appointed by the governor from a list of
nominees submitted by the Indiana Manufacturers'
Association or the appointed member's designee.
(6) One (1) member appointed by the governor from a list of
nominees submitted by the Indiana Farm Bureau or the
appointed member's designee.
(7) One (1) member appointed by the governor from a list of
nominees submitted by the Indiana Chamber of Commerce or
the appointed member's designee.
(8) Four (4) members appointed by the governor who are:
(A) members of the general assembly; and
(B) members of the legislative council; or
a member's designee. A designee under this subdivision must
be a member of the general assembly.
Sec. 4. The governor shall appoint members to the commission
before June 1 in each year.
Sec. 5. The term of a member on the commission ends on the
earliest of the following:
(1) May 31 of the year following the year of the member's
appointment.
(2) The date the member is removed by governor.
(3) For individuals who become members of the commission
under section 3(1), 3(2), or 3(8) of this chapter, the date that
the member ceases to hold the office or position that qualifies
the individual to be a member of the commission.
Sec. 6. The president of the Indiana Association of Cities and
Towns and the president of the Association of Indiana Counties are
the cochairpersons of the commission.
Sec. 7. The office of management and budget shall staff the
commission.
Sec. 8. The expenses of the commission shall be paid from the
state general fund.
Sec. 9. Each member of the commission who is not a state
employee is not entitled to the minimum salary per diem provided
by IC 4-10-11-2.1(b). The member is entitled to reimbursement for
traveling expenses as provided under IC 4-13-1-4 and other
expenses actually incurred in connection with the member's duties
as provided in the state policies and procedures established by the
Indiana department of administration and approved by the budget
agency.
Sec. 10. Each member of the commission who is a state
employee but who is not a member of the general assembly is
entitled to reimbursement for traveling expenses as provided under
IC 4-13-1-4 and other expenses actually incurred in connection
with the member's duties as provided in the state policies and
procedures established by the Indiana department of
administration and approved by the budget agency.
Sec. 11. Each member of the commission who is a member of the
general assembly is entitled to receive the same per diem, mileage,
and travel allowances paid to legislative members of interim study
committees established by the legislative council. Per diem,
mileage, and travel allowances paid under this subsection shall be
paid from appropriations made to the legislative council or the
legislative services agency.
Sec. 12. Each member of the commission who is a member of the
general assembly is a nonvoting member.
Sec. 13. The affirmative votes of a majority of the voting
members appointed to the commission are required for the
commission to take action on any measure, including final reports.
Sec. 14. The commission shall study local government issues
focusing on property tax efficiency, including the following:
(1) Managing rising costs.
(2) Increasing demands for services by residents.
(3) Responding to unfunded state and federal mandates.
(4) Declining local property tax base.
(5) Inadequate property tax revenues.
(6) Creating efficiencies.
(7) Reducing reliance on property taxes.
(8) Studying alternatives for financing local government.
(9) Assisting the state in balancing its budget.
Sec. 15. The commission shall provide a forum for local officials
to share with each other and with the state information on best
practices related to the efficient operation of local government.
Sec. 16. The commission shall annually report to:
(1) the governor or the governor's designee; and
(2) at the request of the legislative council, the legislative
council in an electronic format under IC 5-14-6;
on property tax reductions and savings and reductions in required
distributions for property tax relief from state funds that are the
results of local government efficiencies. The report must include
examples of local government programs and projects for increased
efficiency and intergovernmental cooperation.
SOURCE: IC 5-1-1-1; (06)IN1399.1.2. -->
SECTION 2. IC 5-1-1-1 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 1. (a) As used in this section,
"leasing body" means a not-for-profit corporation, limited purpose
corporation, or authority that has leased land and a building or
buildings to an entity named in subsection (b) (c) other than another
leasing body.
(b) As used in this section, "swap agreement" has the meaning
set forth in IC 8-9.5-9-4.
(b) (c) All bonds, notes, evidences of indebtedness, leases, or other
written obligations issued or executed by or in the name of any:
(1) state agency, county, township, city, incorporated town, school
corporation, state educational institution, state supported
institution of higher learning, political subdivision, joint agency
created under IC 8-1-2.2, leasing body, separate body corporate
and politic, or any other political, municipal, public or
quasi-public corporation; or in the name of any
(2) special assessment or taxing district; or in the name of any
(3) board, commission, authority, or authorized body of any such
entity; and
any pledge, dedication or designation of revenues, conveyance, or
mortgage securing these bonds, notes, evidences of indebtedness,
leases, swap agreements, agreements, or other written obligations are
hereby legalized and declared valid if these bonds, notes, evidences of
indebtedness, leases, swap agreements, agreements, or other written
obligations have been executed before March 15, 2000. 2005. All
governance, organizational, or other proceedings had and actions
taken under which the bonds, notes, evidences of indebtedness, leases,
swap agreements, agreements, or other written obligations were
issued or executed or the pledge, dedication or designation of
revenues, conveyance, or mortgage was granted, are hereby fully
legalized and declared valid.
(c) (d) All contracts for the purchase of electric power and energy
or utility capacity or service:
(1) entered into by a joint agency created under IC 8-1-2.2; and
(2) its members used for the purpose of securing payment of
principal and interest on bonds, notes, evidences of indebtedness,
leases, or other written obligations issued by or in the name of
such joint agency;
are hereby legalized and declared valid if entered into before March 15,
2000. 2005. All governance, organizational, or other proceedings
held and actions taken under which contracts for the purchase of
electric power and energy or utility capacity or service were executed
or entered into are hereby fully legalized and declared valid.
(d) (e) All interlocal cooperation agreements entered into by
political subdivisions or governmental entities under IC 36-1-7 are
hereby legalized and declared valid if entered into before March 15,
2000. 2005. All governance, organizational, or other proceedings
held and actions taken under which interlocal cooperation agreements
were executed or entered into are hereby fully legalized and validated.
SOURCE: IC 6-1.1-17-1; (06)IN1399.1.3. -->
SECTION 3. IC 6-1.1-17-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 1. (a) On or before
August 1 of each year, the county auditor shall send a certified
statement, under the seal of the board of county commissioners, to the
fiscal officer of each political subdivision of the county and the
department of local government finance. The statement shall contain:
(1) information concerning the assessed valuation in the political
subdivision for the next calendar year;
(2) an estimate of the taxes to be distributed to the political
subdivision during the last six (6) months of the current calendar
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) budget years, excluding
years in which a general reassessment occurs, determined
according to procedures established by the department of local
government finance;
and
(5) information concerning credits applicable under
IC 6-1.1-21-5.7 to taxes first due and payable in the next
calendar year; and
(5) (6) any other information at the disposal of the county auditor
that might affect the assessed value used in the budget adoption
process.
(b) The estimate of taxes to be distributed shall be based on:
(1) the abstract of taxes levied and collectible for the current
calendar year, less any taxes previously distributed for the
calendar year; and
(2) any other information at the disposal of the county auditor
which might affect the estimate.
(c) The fiscal officer of each political subdivision shall present the
county auditor's statement to the proper officers of the political
subdivision.
(d) The officers of a political subdivision shall adjust the
assessed value used in setting rates for the taxes first due and
payable in a calendar year in which credits apply under
IC 6-1.1-21-5.7 to eliminate or minimize levy reductions that would
otherwise result from the application of those credits.
SOURCE: IC 6-1.1-17-16; (06)IN1399.1.4. -->
SECTION 4. IC 6-1.1-17-16, AS AMENDED BY P.L.228-2005,
SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 16. (a) Subject to the limitations and
requirements prescribed in this section, the department of local
government finance may revise, reduce, or increase a political
subdivision's budget by fund, tax rate, or tax levy which the department
reviews under section 8 or 10 of this chapter.
(b) Subject to the limitations and requirements prescribed in this
section, the department of local government finance may review,
revise, reduce, or increase the budget by fund, tax rate, or tax levy of
any of the political subdivisions whose tax rates compose the aggregate
tax rate within a political subdivision whose budget, tax rate, or tax
levy is the subject of an appeal initiated under this chapter.
(c) Except as provided in subsections (j),
and (k),
and (l), before the
department of local government finance reviews, revises, reduces, or
increases a political subdivision's budget by fund, tax rate, or tax levy
under this section, the department must hold a public hearing on the
budget, tax rate, and tax levy. The department of local government
finance shall hold the hearing in the county in which the political
subdivision is located. The department of local government finance
may consider the budgets by fund, tax rates, and tax levies of several
political subdivisions at the same public hearing. At least five (5) days
before the date fixed for a public hearing, the department of local
government finance shall give notice of the time and place of the
hearing and of the budgets by fund, levies, and tax rates to be
considered at the hearing. The department of local government finance
shall publish the notice in two (2) newspapers of general circulation
published in the county. However, if only one (1) newspaper of general
circulation is published in the county, the department of local
government finance shall publish the notice in that newspaper.
(d) Except as provided in subsection (i), IC 6-1.1-19, or
IC 6-1.1-18.5, the department of local government finance may not
increase a political subdivision's budget by fund, tax rate, or tax levy to
an amount which exceeds the amount originally fixed by the political
subdivision. The department of local government finance shall give the
political subdivision written notification specifying any revision,
reduction, or increase the department proposes in a political
subdivision's tax levy or tax rate. The political subdivision has one (1)
week two (2) weeks from the date the political subdivision receives the
notice to provide a written response to the department of local
government finance's Indianapolis office. specifying how to make the
required reductions in the amount budgeted by fund. The response
may include budget reductions, reallocation of levies, a revision in
the amount of miscellaneous revenues, and further review of any
other item about which, in the view of the political subdivision, the
department is in error. The department of local government finance
shall make reductions the adjustments as specified in the political
subdivision's response if the response is provided as required by this
subsection. and sufficiently specifies all necessary reductions. The
department of local government finance may make a revision, a
reduction, or an increase in a political subdivision's budget only by
fund.
(e) The department of local government finance may not approve a
levy 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.
(f) The department of local government finance shall certify its
action to:
(1) the county auditor;
(2) the political subdivision if the department acts pursuant to an
appeal initiated by the political subdivision;
(3) the first ten (10) taxpayers whose names appear on a petition
filed under section 13 of this chapter; and
(4) a taxpayer that owns property that represents at least ten
percent (10%) of the taxable assessed valuation in the political
subdivision.
(g) The following may petition for judicial review of the final
determination of the department of local government finance under
subsection (f):
(1) If the department acts under an appeal initiated by a political
subdivision, the political subdivision.
(2) If the department acts under an appeal initiated by taxpayers
under section 13 of this chapter, a taxpayer who signed the
petition under that section.
(3) If the department acts under an appeal initiated by the county
auditor under section 14 of this chapter, the county auditor.
(4) A taxpayer that owns property that represents at least ten
percent (10%) of the taxable assessed valuation in the political
subdivision.
The petition must be filed in the tax court not more than forty-five (45)
days after the department certifies its action under subsection (f).
(h) The department of local government finance is expressly
directed to complete the duties assigned to it under this section not later
than February 15th of each year for taxes to be collected during that
year.
(i) Subject to the provisions of all applicable statutes, the
department of local government finance may increase a political
subdivision's tax levy to an amount that exceeds the amount originally
fixed by the political subdivision if the increase is:
(1) requested in writing by the officers of the political
subdivision;
(2) either:
(A) based on information first obtained by the political
subdivision after the public hearing under section 3 of this
chapter; or
(B) results from an inadvertent mathematical error made in
determining the levy; and
(3) published by the political subdivision according to a notice
provided by the department.
(j) The department of local government finance shall annually
review the budget by fund of each school corporation not later than
April 1. The department of local government finance shall give the
school corporation written notification specifying any revision,
reduction, or increase the department proposes in the school
corporation's budget by fund. A public hearing is not required in
connection with this review of the budget.
(k) The department of local government finance may hold a hearing
under subsection (c) only if the notice required in IC 6-1.1-17-12 is
published at least ten (10) days before the date of the hearing.
(l) This subsection does not apply to a school corporation. If a
petition is not filed with:
(1) the proper officers of a political subdivision in accordance
with section 5 of this chapter; or
(2) the county auditor in accordance with section 13 of this
chapter;
the department of local government finance may not conduct a
public hearing under subsection (c) and must limit its review of the
political subdivision's budget, tax rate, and levy to a determination
as to whether the political subdivision's proposed property tax levy
for the ensuing year complies with IC 6-1.1-18.5-3.
SOURCE: IC 6-1.1-18-5; (06)IN1399.1.5. -->
SECTION 5. IC 6-1.1-18-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5. (a) If the proper
officers of a political subdivision desire to appropriate more money for
a particular year than the amount prescribed in the budget for that year
as finally determined under this article, they shall give notice of their
proposed additional appropriation. The notice shall state the time and
place at which a public hearing will be held on the proposal. The notice
shall be given once in accordance with IC 5-3-1-2(b).
(b) If the additional appropriation by the political subdivision is
made from a fund that receives:
(1) distributions from the motor vehicle highway account
established under IC 8-14-1-1 or the local road and street account
established under IC 8-14-2-4; or
(2) revenue from property taxes levied under IC 6-1.1;
the political subdivision must report the additional appropriation to the
department of local government finance. If the additional appropriation
is made from a fund described under this subsection, subsections (f),
(g), (h), and (i) apply to the political subdivision.
(c) However, if the additional appropriation is not made from a fund
described under subsection (b), subsections (f), (g), (h), and (i) do not
apply to the political subdivision. Subsections (f), (g), (h), and (i) do
not apply to an additional appropriation made from the cumulative
bridge fund if the appropriation meets the requirements under
IC 8-16-3-3(c).
(d) A political subdivision may make an additional appropriation
without approval of the department of local government finance if the
additional appropriation is made from a fund that is not described
under subsection (b). However, the fiscal officer of the political
subdivision shall report the additional appropriation to the department
of local government finance.
(e) After the public hearing, the proper officers of the political
subdivision shall file a certified copy of their final proposal and any
other relevant information to the department of local government
finance.
(f) When the department of local government finance receives a
certified copy of a proposal for an additional appropriation under
subsection (e), the department shall determine whether sufficient funds
are available or will be available for the proposal. The determination
shall be made in writing and sent to the political subdivision not more
than fifteen (15) days after the department of local government finance
receives the proposal.
(g) In making the determination under subsection (f), the
department of local government finance shall limit the amount of the
additional appropriation to revenues available, or to be made available,
which have not been previously appropriated.
(h) If the department of local government finance disapproves an
additional appropriation under subsection (f), the department shall
specify the reason for its disapproval on the determination sent to the
political subdivision.
(i) A political subdivision may request a reconsideration of a
determination of the department of local government finance under this
section by filing a written request for reconsideration. A request for
reconsideration must:
(1) be filed with the department of local government finance
within fifteen (15) days of the receipt of the determination by the
political subdivision; and
(2) state with reasonable specificity the reason for the request.
The department of local government finance must act on a request for
reconsideration within fifteen (15) days of receiving the request.
(b) After the public hearing, the proper officers of the political
subdivision shall file a certified copy of their final proposal and any
other relevant information with the department of local
government finance.
(c) The additional appropriation may not have the effect of
increasing the approved tax rate or levy and must be supported by
sufficient revenues on hand or unobligated revenues, as certified by
the fiscal officer.
(d) The additional appropriation will be treated as approved
following the adoption of the ordinance or resolution making the
appropriation.
SOURCE: IC 6-1.1-18-6.1; (06)IN1399.1.6. -->
SECTION 6. IC 6-1.1-18-6.1 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 6.1. (a) The proper officers of
a political subdivision may transfer money from one (1) of the
political subdivision's funds to another fund of the political
subdivision after the adoption of an ordinance or resolution
specifying the:
(1) amount of the transfer;
(2) funds involved;
(3) date of the transfer; and
(4) general purpose of the transfer.
(b) The political subdivision shall publish a notice of a transfer
made under this section one (1) time in conformity with IC 5-3-1.
(c) The amount transferred is available for use after an
appropriation of the funds in conformity with section 5 of this
chapter.
SOURCE: IC 6-1.1-18.5-8; (06)IN1399.1.7. -->
SECTION 7. IC 6-1.1-18.5-8 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 8. (a) The ad
valorem property tax levy limits imposed by section 3 of this chapter
do not apply to ad valorem property taxes imposed by a civil taxing
unit if the civil taxing unit is committed to levy the taxes to pay or fund
either:
(1) bonded indebtedness; or
(2) lease rentals under a lease with an original term of at least five
(5) years.
(b) A civil taxing unit must file a petition requesting approval from
the department of local government finance to incur bonded
indebtedness or execute a lease with an original term of at least five (5)
years not later than twenty-four (24) months after the first date of
publication of notice of a preliminary determination under
IC 6-1.1-20-3.1(2), unless the civil taxing unit demonstrates that a
longer period is reasonable in light of the civil taxing unit's facts and
circumstances. A civil taxing unit must obtain approval from the
department of local government finance before the civil taxing unit
may:
(1) incur the bonded indebtedness; or
(2) enter into the lease.
Except as provided in subsection (g), the department of local
government finance may seek recommendations from the local
government tax control board established by section 11 of this chapter
when determining whether to authorize incurring the bonded
indebtedness or the execution of the lease.
(c) The department of local government finance shall render a
decision within three (3) months after the date it receives a request for
approval under subsection (b). However, the department of local
government finance 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 civil taxing unit. A civil taxing
unit may petition for judicial review of the final determination of the
department of local government finance under this section. The petition
must be filed in the tax court not more than forty-five (45) days after
the department enters its order under this section.
(d) A civil taxing unit does not need approval under subsection (b)
to obtain temporary loans made in anticipation of and to be paid from
current revenues of the civil taxing unit actually levied and in the
course of collection for the fiscal year in which the loans are made.
(e) For purposes of computing the ad valorem property tax levy
limits imposed on a civil taxing unit by section 3 of this chapter, the
civil taxing unit's ad valorem property tax levy for a calendar year does
not include that part of its levy that is committed to fund or pay bond
indebtedness or lease rentals with an original term of five (5) years in
subsection (a).
(f) A taxpayer may petition for judicial review of the final
determination of the department of local government finance under this
section. The petition must be filed in the tax court not more than thirty
(30) days after the department enters its order under this section.
(g) The department of local government finance may not consult
the local government tax control board when determining whether
to authorize incurring the bonded indebtedness or the execution of
the lease if:
(1) a petition objecting to the bond issue or the lease was not
filed in accordance with IC 6-1.1-20-5; or
(2) with respect to a controlled project (as defined in
IC 6-1.1-20-1.1):
(A) a petition requesting the application of a petition and
remonstrance process was not filed in accordance with
IC 6-1.1-20-3.1; or
(B) the certificate filed with the political subdivision by the
county auditor under IC 6-1.1-20-3.2(5) states that a
greater number of owners of real property within the
political subdivision have signed a petition than have
signed a remonstrance with respect to the controlled
project.
SOURCE: IC 6-1.1-20.9-2; (06)IN1399.1.8. -->
SECTION 8. IC 6-1.1-20.9-2, AS AMENDED BY P.L.246-2005,
SECTION 63, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2006 (RETROACTIVE)]: Sec. 2. (a) Except as
otherwise provided in section 5 of this chapter, an individual who on
March 1 of a particular year either owns or is buying a homestead
under a contract that provides the individual is to pay the property taxes
on the homestead is entitled each calendar year to a credit against the
property taxes which the individual pays on the individual's homestead.
However, only one (1) individual may receive a credit under this
chapter for a particular homestead in a particular year.
(b) The amount of the credit to which the individual is entitled
equals the product of:
(1) the percentage prescribed in subsection (d); multiplied by
(2) the amount of the individual's property tax liability, as that
term is defined in IC 6-1.1-21-5, which is:
(A) attributable to the homestead during the particular
calendar year; and
(B) determined after the application of the property tax
replacement credit under IC 6-1.1-21.
(c) For purposes of determining that part of an individual's property
tax liability that is attributable to the individual's homestead, all
deductions from assessed valuation which the individual claims under
IC 6-1.1-12 or IC 6-1.1-12.1 for property on which the individual's
homestead is located must be applied first against the assessed value
of the individual's homestead before those deductions are applied
against any other property.
(d) The percentage of the credit referred to in subsection (b)(1) is as
follows:
YEAR PERCENTAGE
OF THE CREDIT
1996 8%
1997 6%
1998 through 2002 10%
2003 and thereafter 20%
However, the property tax replacement fund board established under
IC 6-1.1-21-10 shall increase the percentage of the credit provided in
the schedule for any year if the budget agency determines that an
increase is necessary to provide the minimum tax relief authorized
under IC 6-1.1-21-2.5. If the board increases the percentage of the
credit provided in the schedule for any year, the percentage of the
credit for the immediately following year is the percentage provided in
the schedule for that particular year, unless as provided in this
subsection the board must increase the percentage of the credit
provided in the schedule for that particular year. However, the
percentage credit allowed in a particular county for a particular year
shall be increased if on January 1 of a year an ordinance adopted by a
county income tax council or county fiscal body was in effect in the
county which increased the homestead credit. The amount of the
increase equals the amount designated in the ordinance.
(e) Before October 1 of each year, the assessor shall furnish to the
county auditor the amount of the assessed valuation of each homestead
for which a homestead credit has been properly filed under this chapter.
(f) The county auditor shall apply the credit equally to each
installment of taxes that the individual pays for the property.
(g) Notwithstanding the provisions of this chapter, a taxpayer other
than an individual is entitled to the credit provided by this chapter if:
(1) an individual uses the residence as the individual's principal
place of residence;
(2) the residence is located in Indiana;
(3) the individual has a beneficial interest in the taxpayer;
(4) the taxpayer either owns the residence or is buying it under a
contract, recorded in the county recorder's office, that provides
that the individual is to pay the property taxes on the residence;
and
(5) the residence consists of a single-family dwelling and the real
estate, not exceeding one (1) acre, that immediately surrounds
that dwelling.
SOURCE: IC 6-1.1-21-5.7; (06)IN1399.1.9. -->
SECTION 9. IC 6-1.1-21-5.7 IS ADDED TO THE INDIANA
CODE AS A
NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2006]:
Sec. 5.7. (a) The following definitions
apply throughout this section:
(1) "General reassessment" refers to a general reassessment
of real property under IC 6-1.1-4-4.
(2) "Homestead" has the meaning set forth in
IC 6-1.1-20.9-1(2).
(3) "Net property tax bill" means the amount of property
taxes currently due and payable in a particular calendar year
after the application of all deductions and credits, except for
the credit provided by this section, as evidenced by the tax
statements required under IC 6-1.1-22-8.
(4) "Physical characteristics" refers to physical
characteristics of a homestead that bear on the determination
of the assessed value of the homestead.
(5) "Preceding year tax" means the amount of the net
property tax bill for a homestead in the calendar year that
immediately precedes the calendar year in which property
taxes are first due and payable based on a general
reassessment.
(6) "Qualifying homestead" means:
(A) if subsection (g) does not apply, a homestead for which
the reassessment tax is at least one hundred seventy-five
percent (175%) of the preceding year tax; and
(B) if subsection (g) applies, a homestead for which the
amount determined under subsection (g) of the
reassessment tax is at least one hundred seventy-five
percent (175%) of the amount determined under
subsection (g) of the preceding year tax.
(7) "Qualifying individual" means an individual who is liable
for the payment of the:
(A) preceding year tax; and
(B) reassessment tax.
(8) "Reassessment tax" means the amount of the net property
tax bill for a homestead in the calendar year in which
property taxes are first due and payable based on a general
reassessment.
(b) A qualifying individual may receive a credit against the net
property tax bill with respect to the qualifying individual's
qualifying homestead in:
(1) the calendar year in which reassessment tax is first due
and payable; and
(2) subsequent calendar years;
as provided in subsections (c) through (e).
(c) Subject to subsection (g), if the reassessment tax is at least
one hundred seventy-five percent (175%) but less than two
hundred fifty percent (250%) of the preceding year tax, the
amount of the credit is the percentage from the following table
multiplied by the amount by which the reassessment tax exceeds
the preceding year tax:
YEAR IN RELATION TO THE
YEAR OF LIABILITY FOR
REASSESSMENT TAX PERCENTAGE
Current year 50%
First following year
and subsequent years 0%
(d) Subject to subsection (g), if the reassessment tax is at least
two hundred fifty percent (250%) but less than three hundred
twenty-five percent (325%) of the preceding year tax, the amount
of the credit is the percentage from the following table multiplied
by the amount by which the reassessment tax exceeds the preceding
year tax:
YEAR IN RELATION TO THE
YEAR OF LIABILITY FOR
REASSESSMENT TAX PERCENTAGE
Current year 67%
First following year 33%
Second following year
and subsequent years 0%
(e) Subject to subsection (g), if the reassessment tax is at least
three hundred twenty-five percent (325%) of the preceding year
tax, the amount of the credit is the percentage from the following
table multiplied by the amount by which the reassessment tax
exceeds the preceding year tax:
YEAR IN RELATION TO THE
YEAR OF LIABILITY FOR
REASSESSMENT TAX PERCENTAGE
Current year 75%
First following year 50%
Second following year 25%
Third following year
and subsequent years 0%
(f) Subject to subsection (g), the county auditor shall compute
and apply the credit under this section for each qualifying
individual entitled to the credit.
(g) If a change in physical characteristics occurred:
(1) after the assessment date for which the preceding year tax
was determined; and
(2) on or before the assessment date for which the
reassessment tax was determined;
the county auditor shall compute the credit under this subsection.
If the change has the effect of increasing the assessed value of the
homestead, the county auditor shall determine the reassessment tax
for purposes of subsections (c), (d), and (e) based on a homestead
assessed value that excludes the assessed value resulting from the
change. If the change has the effect of decreasing the assessed value
of the homestead, the county auditor shall determine the preceding
year tax for purposes of subsections (c), (d), and (e) based on a
homestead assessed value that would have applied if the change
occurred before the assessment date for which the preceding year
tax is determined. The township assessor shall assist the county
auditor in determining assessed values used in this subsection.
(h) If the qualifying individual resides in the homestead with the
qualifying individual's spouse, those individuals are together
entitled to one (1) credit under this section for the homestead.
SOURCE: IC 6-1.1-21-7; (06)IN1399.1.10. -->
SECTION 10. IC 6-1.1-21-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 7. (a) Notwithstanding
IC 6-1.1-26, any taxpayer who is entitled to a credit under this chapter
or who has properly filed for and is entitled to a credit under
IC 6-1.1-20.9, and who, without taking the credit, pays in full the taxes
to which the credit applies, is entitled to a refund, without interest, of
an amount equal to the amount of the credit. However, if the taxpayer,
at the time a refund is claimed, owes any other taxes, interest, or
penalties payable to the county treasurer to whom the taxes subject to
the credit were paid, then the credit shall be first applied in full or
partial payment of the other taxes, interest, and penalties and the
balance, if any, remaining after that application is available as a refund
to the taxpayer.
(b) Any taxpayer entitled to a refund under this section other than
a refund based on the credit under section 5.7 of this chapter shall
be paid that refund from proceeds of the property tax replacement fund.
However, with respect to any refund attributable to a homestead credit,
the refund shall be paid from that fund only to the extent that the
percentage homestead credit the taxpayer was entitled to receive for a
year does not exceed the percentage credit allowed in
IC 6-1.1-20.9-2(d) for that same year. Any refund in excess of that
amount shall be paid from the county's revenue distributions received
under IC 6-3.5-6.
(c) The state board of accounts shall establish an appropriate
procedure to simplify and expedite the method for claiming these
refunds and for the payments thereof, as provided for in this section,
which procedure is the exclusive procedure for the processing of the
refunds. The procedure shall, however, require the filing of claims for
the refunds by not later than June 1 of the year following the payment
of the taxes to which the credit applied.
SOURCE: IC 6-1.1-41-14; (06)IN1399.1.11. -->
SECTION 11. IC 6-1.1-41-14 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 14. (a) Except as
provided in subsection (b), the:
(1) tax collected for a fund must be held in the fund for which the
tax was levied; The and
(2) fund may not be expended for any purpose other than the
purposes specified by statute authorizing the fund.
(b) The fiscal body of the political subdivision may, by
ordinance or resolution:
(1) determine that the tax collected for a fund should be:
(A) transferred to another fund of the political subdivision
in accordance with IC 36-1-8-4; or
(B) used for any other lawful purpose for which the
political subdivision may expend funds; and
(2) identify the fund to which the tax should be transferred
and transfer the tax to the fund.
(c) Except to the extent that IC 8-16-3-3(c), 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.
(d) If the fiscal body makes a determination under subsection
(b), the fiscal officer of the political subdivision shall transfer the
tax collected to the fund specified in the ordinance or resolution.
SOURCE: IC 6-2.5-5-16.5; (06)IN1399.1.12. -->
SECTION 12. IC 6-2.5-5-16.5 IS ADDED TO THE INDIANA
CODE AS A
NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]:
Sec. 16.5. (a) This section applies
to a transaction:
(1) involving the sale or furnishing of heating energy by a
heating energy supplier to a consumer or residential rental
housing lessor; and
(2) for which the charges:
(A) are invoiced in a single bill or statement for payment
by the consumer or residential rental housing lessor; and
(B) include any charges described in IC 6-2.5-1-5(c).
(b) As used in this section, "consumer or residential rental
housing lessor" means a person that receives heating energy from
a heating energy supplier primarily for:
(1) personal, family, or household residential purposes; or
(2) use in a residential dwelling or building, including a
building (as defined in IC 8-1-2-36.5(a)) served by a master
meter, as described in IC 8-1-2-36.5, that is primarily rented
to tenants who use the rented facilities primarily for personal,
family, or household residential purposes.
The term includes a person that receives heating energy through
a program administered by the division of family and children
under IC 12-14-11.
(c) As used in this section, "heating energy" means electricity,
oil, gas, coal, propane, or any other fuel for use as the principal
source of heating in a residential dwelling or residential building,
including a building (as defined in IC 8-1-2-36.5(a)) served by a
master meter, as described in IC 8-1-2-36.5.
(d) As used in this section, "heating energy supplier" means a
person, including a trustee or receiver appointed by a court,
engaged in furnishing or selling heating energy in Indiana.
(e) A transaction to which this section applies is exempt from
the state gross retail tax.
(f) The department may establish streamlined procedures for
the implementation of this section that minimize or eliminate the:
(1) the need to apply for an exemption certificate or a refund
to obtain the exemption provided by this section; and
(2) record keeping requirements and procedures that a retail
merchant must follow to make retail transactions that are
exempt under this section.
(g) This section expires July 1, 2007.
SOURCE: IC 6-2.5-5-16.7; (06)IN1399.1.13. -->
SECTION 13. IC 6-2.5-5-16.7 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 16.7. (a) The sale of gasoline
that is dispensed from a metered pump is exempt from the state
gross retail tax.
(b) The department may establish streamlined procedures for
the implementation of this section that minimize or eliminate the:
(1) need to apply for an exemption certificate or a refund to
obtain the exemption provided by this section; and
(2) record keeping requirements and procedures that a retail
merchant must follow to make retail transactions that are
exempt under this section.
(c) This section expires July 1, 2007.
SOURCE: IC 6-2.5-7-3; (06)IN1399.1.14. -->
SECTION 14. IC 6-2.5-7-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3. (a)
Except as
provided in IC 6-2.5-5-16.7, with respect to the sale of gasoline
which
that is dispensed from a metered pump, a retail merchant shall collect,
for each unit of gasoline sold, state gross retail tax in an amount equal
to the product, rounded to the nearest one-tenth of one cent ($0.001),
of:
(1) the
lesser of the:
(A) price per unit;
or
(B) product of:
(i) one dollar and fifty cents ($1.50); multiplied by
(ii) the gallon conversion index;
rounded to the nearest one cent ($0.01), before the addition of
state and federal taxes; multiplied by
(2) six percent (6%).
The retail merchant shall collect the state gross retail tax prescribed in
this section even if the transaction is exempt from taxation under
IC 6-2.5-5.
(b) With respect to the sale of special fuel or kerosene which 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 or kerosene sold, state gross
retail 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) six percent (6%).
Unless the exemption certificate is provided, the retail merchant shall
collect the state gross retail tax prescribed in this section even if the
transaction is exempt from taxation under IC 6-2.5-5.
(c) For purposes of this section, the gallon conversion index is
the following:
(1) One (1) if the unit of measure by which gasoline is sold is
a gallon.
(2) Five-tenths (0.5) if the unit of measure by which gasoline
is sold is a half-gallon.
(3) Twenty-six thousand four hundred seventeen one hundred
thousandths (0.26417) if the unit of measure by which gasoline
is sold is a liter.
(4) An equivalent gallon conversion index specified by the
department if the unit of measure by which gasoline is sold is
not described in subdivision (1), (2), or (3).
SOURCE: IC 6-3.1-31; (06)IN1399.1.15. -->
SECTION 15. IC 6-3.1-31 IS ADDED TO THE INDIANA CODE
AS A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2006 (RETROACTIVE)]:
Chapter 31. Credit for Sales Tax on Home Heating Energy
Sec. 1. The definitions in IC 6-2.5 apply throughout this chapter.
Sec. 2. As used in this chapter, "covered transaction" means a
retail transaction:
(1) involving the sale or furnishing of heating energy by a
heating energy supplier to a consumer or residential rental
housing lessor; and
(2) for which the charges:
(A) are invoiced in a single bill or statement for payment
by the consumer or residential rental housing lessor; and
(B) include any charges described in IC 6-2.5-1-5(c).
Sec. 3. As used in this chapter, "consumer or residential rental
housing lessor" means a person that receives heating energy from
a heating energy supplier primarily for:
(1) personal, family, or household residential purposes; or
(2) use in a residential dwelling or building, including a
building (as defined in IC 8-1-2-36.5(a)) served by a master
meter, as described in IC 8-1-2-36.5, that is primarily rented
to tenants who use the rented facilities primarily for personal,
family, or household residential purposes.
The term includes a person who receives heating energy through
a program administered by the division of family and children
under IC 12-14-11.
Sec. 4. As used in this chapter, "credit" refers to a credit
granted under this chapter.
Sec. 5. As used in this chapter, "heating energy" means
electricity, oil, gas, coal, propane, or any other fuel for use as the
principal source of heating in a residential dwelling or residential
building, including a building (as defined in IC 8-1-2-36.5(a))
served by a master meter, as described in IC 8-1-2-36.5.
Sec. 6. As used in this section, "heating energy supplier" means
a person, including a trustee or receiver appointed by a court,
engaged in furnishing or selling heating energy in Indiana.
Sec. 7. As used in this chapter, "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.
Sec. 8. As used in this chapter, "state tax liability" means a
taxpayer's total tax liability that is incurred under:
(1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);
(2) IC 6-5.5 (the financial institutions tax); and
(3) IC 27-1-18-2 (the insurance premiums tax);
as computed after the application of the credits that under
IC 6-3.1-1-2 are to be applied before the credit provided by this
chapter.
Sec. 9. As used in this chapter, "taxpayer" means an individual
or entity that has any state tax liability.
Sec. 10. A taxpayer that pays a gross retail tax or use tax under
IC 6-2.5 for a covered transaction in the taxpayer's taxable year is
entitled to a credit against the taxpayer's state tax liability.
Sec. 11. The amount of the credit is equal to the amount of gross
retail tax or use tax paid in the taxpayer's taxable year for the
covered transaction.
Sec. 12. If a pass through entity is entitled to a credit but does
not have state tax liability against which the tax credit may be
applied, a shareholder, partner, or member of the pass through
entity is entitled to a tax credit equal to:
(1) the tax credit determined for the pass through entity for
the taxable year; multiplied by
(2) the percentage of the pass through entity's distributive
income to which the shareholder, partner, or member is
entitled.
Sec. 13. If the amount of the taxpayer's credit in a taxable year
exceeds the taxpayer's state tax liability for the taxable year, the
taxpayer may carry the excess over to the taxpayer's following
taxable years. The amount of the credit carryover from a taxable
year shall be reduced to the extent that the carryover is used by the
taxpayer to obtain a credit under this chapter for any subsequent
taxable year. A taxpayer is not entitled to a carryback or a refund
of any unused credit amount.
Sec. 14. To receive the credit provided by this chapter, a
taxpayer must claim the credit on the taxpayer's state tax return
or returns in the manner prescribed by the department. The
taxpayer shall submit to the department all information that the
department determines is necessary for the calculation of the credit
provided by this chapter.
SOURCE: IC 6-3.5-4-1; (06)IN1399.1.16. -->
SECTION 16. IC 6-3.5-4-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 1. As used in The
following definitions apply throughout this chapter:
(1) "Adopting entity" means any of the following:
(A) The county council, for a county in which the county
adjusted gross income tax is in effect on January 1 of a
year in which an ordinance is adopted under this chapter.
(B) The county income tax council, for a county in which
the county option income tax is in effect on January 1 of a
year in which an ordinance is adopted under this chapter.
(C) The county council or the county income tax council,
whichever acts first, for a county not covered by clause (A)
or (B).
(2) "Branch office" means a branch office of the bureau of motor
vehicles.
(3) "County council" includes the city-county council of a county
that contains a consolidated city of the first class.
(4) "County income tax council" refers to a county income tax
council established by IC 6-3.5-6-2.
(5) "Motor vehicle" means a vehicle which is subject to the
annual license excise tax imposed under IC 6-6-5.
(6) "Municipal legislative body" refers to any of the
following:
(A) A legislative body described in IC 36-1-2-9(4).
(B) A legislative body described in IC 36-1-2-9(5).
(7) "Municipality" has the meaning set forth in IC 36-1-2-11.
(8) "Net annual license excise tax" means the tax due under
IC 6-6-5 after the application of the adjustments and credits
provided by that chapter.
(9) "Surtax" means the annual license excise surtax imposed by
a county council under this chapter.
SOURCE: IC 6-3.5-4-2; (06)IN1399.1.17. -->
SECTION 17. IC 6-3.5-4-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2. (a)
The county
council An adopting entity of any county
may, subject to the
limitation limitations imposed by
subsection subsections (c)
and (f)
and section 2.5 of this chapter, adopt an ordinance to impose an
annual license excise surtax at the same rate or amount on each motor
vehicle listed in subsection (b) that is registered in the county. The
county council adopting entity may
initially impose the surtax either:
(1) at a rate of not less than two percent (2%) nor more than ten
percent (10%); or
(2) at a specific amount of at least seven dollars and fifty cents
($7.50) and not more than twenty-five dollars ($25).
However, the surtax on a vehicle may not be less than seven dollars and
fifty cents ($7.50). The
county council adopting entity shall state the
surtax rate or amount in the ordinance which imposes the tax.
(b) The license excise surtax applies to the following vehicles:
(1) Passenger vehicles.
(2) Motorcycles.
(3) Trucks with a declared gross weight that does not exceed
eleven thousand (11,000) pounds.
(c) The
county council adopting entity may not adopt an ordinance
to impose the surtax unless it concurrently adopts an ordinance under
IC 6-3.5-5 to impose the wheel tax.
(d) Notwithstanding any other provision of this chapter or
IC 6-3.5-5, ordinances adopted by a county council before
June 1,
1983, March 15, 2006, to impose or change the annual license excise
surtax and the annual wheel tax in the county remain in effect until the
ordinances are amended or repealed under this chapter or IC 6-3.5-5.
(e) Except as otherwise provided in an adopting or amending
ordinance, the rate of the surtax is increased in each year that
begins after the year in which the initial surtax ordinance or an
amendment to the surtax ordinance first applies in a county. The
increase is the surtax rate in effect for the immediately preceding
year multiplied by the increase in the Federal Highway
Administration Price Trends for Federal-Aid Highway
Construction Composite Index published by the Federal Highway
Administration. An increase under this subsection in the surtax
rates under an ordinance that first applied in a county before
January 1, 2006, shall be computed as if 2006 were the first year in
which the ordinance applied in the county if:
(1) the adopting entity has not adopted an ordinance imposing
the surtax in the county;
(2) the legislative body of a municipality in that county adopts
an ordinance under section 2.5 of this chapter imposing the
surtax in the municipality; and
(3) an ordinance subsequently adopted by the adopting entity
does not apply to motor vehicles registered in the
municipality.
SOURCE: IC 6-3.5-4-2.5; (06)IN1399.1.18. -->
SECTION 18. IC 6-3.5-4-2.5 IS ADDED TO THE INDIANA
CODE AS A
NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]:
Sec. 2.5 (a) This section applies to
a municipality in any county in which the surtax is not in effect on
January 1, 2007.
(b) The municipal legislative body may, subject to the limitation
imposed by subsection (c), adopt an ordinance to impose an annual
license excise surtax at the same rate or amount on each motor
vehicle listed in subsection (c) that is registered in the municipality.
The municipal legislative body may initially impose the surtax
either at a:
(1) rate of at least two percent (2%) but not more than ten
percent (10%); or
(2) specific amount of at least seven dollars and fifty cents
($7.50) but not more than twenty-five dollars ($25).
However, the surtax on a vehicle must be at least seven dollars and
fifty cents ($7.50). The municipal legislative body shall state the
surtax rate or amount in the ordinance that imposes the tax.
(c) The license excise surtax applies to the following vehicles:
(1) Passenger vehicles.
(2) Motorcycles.
(3) Trucks with a declared gross weight that does not exceed
eleven thousand (11,000) pounds.
(d) The municipal legislative body may not adopt an ordinance
to impose the surtax unless it concurrently adopts an ordinance
under IC.6-3.5-5 to impose the wheel tax.
(e) Except as otherwise provided in an adopting or amending
ordinance, the rate of the surtax is increased in each year that
begins after the year in which the initial surtax ordinance or an
amendment to the surtax ordinance first applies in a municipality.
The increase is the surtax rate in effect for the immediately
preceding year multiplied by the increase in the Federal Highway
Administration Price Trends for Federal-Aid Highway
Construction Composite Index published by the Federal Highway
Administration.
(f) The municipal legislative body may not adopt an ordinance
under this section if the adopting entity of the county in which the
municipality is located has previously adopted an ordinance to
impose the surtax under section 2 of this chapter.
SOURCE: IC 6-3.5-4-4.5; (06)IN1399.1.19. -->
SECTION 19. IC 6-3.5-4-4.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 4.5. (a) After January 1 but
before July 1 of any year, the municipal legislative body may,
subject to the limitations imposed by subsection (b), adopt an
ordinance to rescind the surtax. If the municipal legislative body
adopts such an ordinance, the surtax does not apply to a motor
vehicle registered after December 31 of the year the ordinance is
adopted.
(b) The municipal legislative body may not adopt an ordinance
to rescind the surtax unless it concurrently adopts an ordinance
under IC.6-3.5-5 to rescind the wheel tax. In addition, the
municipal legislative body may not adopt an ordinance to rescind
the surtax if the municipality has pledged the surtax to any bonds,
leases, or other obligations of the municipality.
SOURCE: IC 6-3.5-4-3; (06)IN1399.1.20. -->
SECTION 20. IC 6-3.5-4-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3.
(a) If
a county
council an adopting entity adopts an ordinance imposing the surtax
after December 31 but before July 1 of the following year, a motor
vehicle is subject to the tax if it is registered in the county after
December 31 of the year in which the ordinance is adopted. If
a county
council an adopting entity adopts an ordinance imposing the surtax
after June 30 but before the following January 1, a motor vehicle is
subject to the tax if it is registered in the county after December 31 of
the year following the year in which the ordinance is adopted.
However, in the first year the surtax is effective, the surtax does not
apply to the registration of a motor vehicle for the registration year that
commenced in the calendar year preceding the year the surtax is first
effective.
(b) If a municipal legislative body adopts an ordinance imposing
the surtax after December 31 but before July 1 of the following
year, a motor vehicle is subject to the tax if it is registered in the
municipality after December 31 of the year in which the ordinance
is adopted. If a municipal legislative body adopts an ordinance
imposing the surtax after June 30 but before the following January
1, a motor vehicle is subject to the tax if it is registered in the
municipality after December 31 of the year following the year in
which the ordinance is adopted. However, in the first year the
surtax is effective, the surtax does not apply to the registration of
a motor vehicle for the registration year that commenced in the
calendar year preceding the year the surtax is first effective.
SOURCE: IC 6-3.5-4-4; (06)IN1399.1.21. -->
SECTION 21. IC 6-3.5-4-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 4. (a) After January
1 but before July 1 of any year, the county council adopting entity
may, subject to the limitations imposed by subsection (b), adopt an
ordinance to rescind the surtax. If the county council adopting entity
adopts such an ordinance, the surtax does not apply to a motor vehicle
registered after December 31 of the year the ordinance is adopted.
(b) The county council adopting entity may not adopt an ordinance
to rescind the surtax unless it concurrently adopts an ordinance under
IC 6-3.5-5 to rescind the wheel tax. In addition, the county council
adopting entity may not adopt an ordinance to rescind the surtax if:
(1) any portion of a loan obtained by the county under IC 8-14-8
is unpaid; or if
(2) any bonds issued by the county under:
(A) IC 8-14-9; or
(B) IC 8-18-22;
are outstanding;
(3) the county has pledged revenues from the surtax to any
bonds, leases, obligations, or other evidences of indebtedness
of the county; or
(4) a municipality in the county has pledged revenues from the
surtax to any bonds, leases, obligations, or other evidences of
indebtedness of the municipality.
SOURCE: IC 6-3.5-4-5; (06)IN1399.1.22. -->
SECTION 22. IC 6-3.5-4-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5. (a) The
county
council adopting entity may, subject to the limitations imposed by
subsection (b), adopt an ordinance to increase or decrease the surtax
rate or amount. The new surtax rate or amount must be within the range
of rates or amounts prescribed by section 2 of this chapter. A new rate
or amount that is established by an ordinance that is adopted after
December 31 but before July 1 of the following year applies to motor
vehicles registered after December 31 of the year in which the
ordinance to change the rate or amount is adopted. A new rate or
amount that is established by an ordinance that is adopted after June 30
but before January 1 of the following year applies to motor vehicles
registered after December 31 of the year following the year in which
the ordinance is adopted.
(b) The county council adopting entity may not adopt an ordinance
to decrease the surtax rate or amount under this section if:
(1) any portion of a loan obtained by the county under IC 8-14-8
is unpaid; or if
(2) any bonds issued by the county under:
(A) IC 8-14-9; or
(B) IC 8-18-22;
are outstanding;
(3) the county has pledged revenues from the surtax to any
bonds, leases, obligations, or other evidences of indebtedness
of the county; or
(4) a municipality in the county has pledged revenues from the
surtax to any bonds, leases, obligations, or other evidences of
indebtedness of the municipality.
SOURCE: IC 6-3.5-4-5.5; (06)IN1399.1.23. -->
SECTION 23. IC 6-3.5-4-5.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 5.5. (a) The municipal
legislative body may, subject to the limitations imposed by
subsection (b), adopt an ordinance to increase or decrease the
surtax rate or amount. The new surtax rate or amount must be
within the range of rates or amounts prescribed by section 2.5 of
this chapter. A new rate or amount that is established by an
ordinance that is adopted after December 31 but before July 1 of
the following year applies to motor vehicles registered after
December 31 of the year in which the ordinance to change the rate
or amount is adopted. A new rate or amount that is established by
an ordinance that is adopted after June 30 but before January 1 of
the following year applies to motor vehicles registered after
December 31 of the year following the year in which the ordinance
is adopted.
(b) The municipal legislative body may not adopt an ordinance
to decrease the surtax rate or amount under this section if the
municipality has pledged revenues from the surtax to any bonds,
leases, obligations, or other evidences of indebtedness of the
municipality.
SOURCE: IC 6-3.5-4-6; (06)IN1399.1.24. -->
SECTION 24. IC 6-3.5-4-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 6.
(a) If
a county
council an adopting entity adopts an ordinance to impose, rescind, or
change the rate or amount of the surtax, the
county council adopting
entity shall send a copy of the ordinance to the commissioner of the
bureau of motor vehicles.
(b) If the municipal legislative body adopts an ordinance to
impose, rescind, or change the rate or amount of the surtax, the
municipal legislative body shall send a copy of the ordinance to the
commissioner of the bureau of motor vehicles.
SOURCE: IC 6-3.5-4-7; (06)IN1399.1.25. -->
SECTION 25. IC 6-3.5-4-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 7. (a) A person
may not register a motor vehicle in a county that has adopted the surtax
unless the person pays the surtax due, if any, to the bureau of motor
vehicles. The amount of the surtax due equals the greater of seven
dollars and fifty cents ($7.50), the amount established under section 2
of this chapter, or the product of:
(1) the amount determined under section 7.3 of this chapter for
the vehicle, as adjusted under section 7.4 of this chapter;
multiplied by
(2) the surtax rate in effect at the time of registration, after the
application of the index described in section 2(e) of this
chapter.
The bureau of motor vehicles shall collect the surtax due, if any, at the
time a motor vehicle is registered. However, the bureau may utilize its
branch offices to collect the surtax.
(b) A person may not register a motor vehicle in a municipality
that has adopted the surtax unless the person pays the surtax due,
if any, to the bureau of motor vehicles. The amount of the surtax
due equals the greater of seven dollars and fifty cents ($7.50), the
amount established under section 2.5 of this chapter, or the
product of:
(1) the amount determined under section 7.3 of this chapter
for the vehicle, as adjusted under section 7.4 of this chapter;
multiplied by
(2) the surtax rate in effect at the time of registration, after
the application of the index described in section 2.5(e) of this
chapter.
SOURCE: IC 6-3.5-4-8; (06)IN1399.1.26. -->
SECTION 26. IC 6-3.5-4-8 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 8.
(a) The surtax
collected by a branch office shall be deposited daily by the branch
manager in a separate account in a depository designated by the state
board of finance.
(b) On or before the tenth day of the month following the month
in which surtax is collected at a branch office, the branch office
manager shall remit the surtax to the fiscal officer of the
municipality that imposed the surtax. Concurrently with the
remittance, the branch office manager shall file a surtax collections
report with the municipal fiscal officer. The branch manager shall
prepare the report on forms prescribed by the state board of
accounts.
SOURCE: IC 6-3.5-4-11; (06)IN1399.1.27. -->
SECTION 27. IC 6-3.5-4-11 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 11. If surtax is
collected directly by the bureau of motor vehicles, instead of at a
branch office, the commissioner of the bureau shall:
(1) remit the surtax to, and file a surtax collections report with,
the appropriate:
(A) county treasurer; or
(B) municipal fiscal officer; and
(2) file a surtax collections report with the appropriate:
(A) county auditor; or
(B) municipal fiscal officer;
in the same manner and at the same time that a branch office manager
is required to remit and report under section 9 of this chapter.
SOURCE: IC 6-3.5-4-13; (06)IN1399.1.28. -->
SECTION 28. IC 6-3.5-4-13 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 13. (a) In the case
of a county that does not contain a consolidated city of the first class,
the county treasurer shall deposit the surtax revenues in a fund to be
known as the "_________ County Surtax Fund".
(b) Before the twentieth day of each month, the county auditor shall
allocate the money deposited in the county surtax fund during that
month among the county and the cities and the towns in the county.
The county auditor shall allocate the money to counties, cities, and
towns under IC 8-14-2-4(c)(1) through IC 8-14-2-4(c)(3).
(c) Before the twenty-fifth day of each month, the county treasurer
shall distribute to the county and the cities and towns in the county the
money deposited in the county surtax fund during that month. The
county treasurer shall base the distribution on allocations made by the
county auditor for that month under subsection (b).
(d) A county, city, or town may only use the surtax revenues it
receives under this section to construct, reconstruct, repair, or maintain
streets and roads under its jurisdiction.
(e) A county, city, or town may pledge surtax revenues received
under this section in accordance with IC 5-1-14-4.
SOURCE: IC 6-3.5-4-13.5; (06)IN1399.1.29. -->
SECTION 29. IC 6-3.5-4-13.5 IS ADDED TO THE INDIANA
CODE AS A
NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]:
Sec. 13.5. (a) In the case of a
municipality other than a consolidated city, the municipal fiscal
officer shall deposit the surtax revenues in a fund to be known as
the "(City or Town) of_________(name of municipality) Surtax
Fund".
(b) The municipality may use the surtax revenues it receives
under this section to construct, reconstruct, repair, or maintain
streets and roads under its jurisdiction.
(c) Revenues received by a municipality under this section may
be pledged in accordance with IC 5-1-14-4.
SOURCE: IC 6-3.5-5-1; (06)IN1399.1.30. -->
SECTION 30. IC 6-3.5-5-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 1. As used in The
following definitions apply throughout this chapter:
(1) "Adopting entity" means any of the following:
(A) The county council, for a county in which the county
adjusted gross income tax is in effect on January 1 of a
year in which an ordinance is adopted under this chapter.
(B) The county income tax council, for a county in which
the county option income tax is in effect on January 1 of a
year in which an ordinance is adopted under this chapter.
(C) The county council or the county income tax council,
whichever acts first, for a county not covered by clause (A)
or (B).
(2) "Branch office" means a branch office of the bureau of motor
vehicles.
(3) "Bus" has the meaning set forth in IC 9-13-2-17(a).
(4) "County council" includes the city-county council of a county
that contains a consolidated city of the first class.
(5) "County income tax council" refers to a county income tax
council established by IC 6-3.5-6-2.
(6) "Municipal legislative body" refers to any of the
following:
(A) A legislative body described in IC 36-1-2-9(4).
(B) A legislative body described in IC 36-1-2-9(5).
(7) "Municipality" has the meaning set forth in IC 36-1-2-11.
(8) "Political subdivision" has the meaning set forth in
IC 34-6-2-110.
(9) "Recreational vehicle" has the meaning set forth in
IC 9-13-2-150.
(10) "Semitrailer" has the meaning set forth in IC 9-13-2-164(a).
(11) "State agency" has the meaning set forth in IC 34-4-16.5-2.
(12) "Tractor" has the meaning set forth in IC 9-13-2-180.
(13) "Trailer" has the meaning set forth in IC 9-13-2-184(a).
(14) "Truck" has the meaning set forth in IC 9-13-2-188(a).
(15) "Wheel tax" means the tax imposed under this chapter.
SOURCE: IC 6-3.5-5-2; (06)IN1399.1.31. -->
SECTION 31. IC 6-3.5-5-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2. (a) The
county
council adopting entity of any county may, subject to the
limitation
limitations imposed by
subsection subsections (b)
and (e) and section
2.5 of this chapter, adopt an ordinance to impose an annual wheel tax
on each vehicle which:
(1) is included in one (1) of the classes of vehicles listed in
section 3 of this chapter;
(2) is not exempt from the wheel tax under section 4 of this
chapter; and
(3) is registered in the county.
(b) The
county council adopting entity of a county may not adopt
an ordinance to impose the wheel tax unless it concurrently adopts an
ordinance under IC 6-3.5-4 to impose the annual license excise surtax.
(c) The
county council adopting entity may impose the wheel tax
at a different rate for each of the classes of vehicles listed in section 3
of this chapter. In addition, the county council may establish different
rates within the classes of buses, semitrailers, trailers, tractors, and
trucks based on weight classifications of those vehicles that are
established by the bureau of motor vehicles for use throughout Indiana.
However, the
initial wheel tax rate for a particular class or weight
classification of vehicles may not be less than five dollars ($5) and may
not exceed forty dollars ($40). The
county council adopting entity
shall state the initial wheel tax rates in the ordinance that imposes the
tax.
(d) Except as otherwise provided in an adopting or amending
ordinance, the rate of the wheel tax is increased in each year that
begins after the year in which the initial wheel tax ordinance or an
amendment to the wheel tax ordinance first applies in a county.
The increase is the wheel tax rate in effect for the immediately
preceding year multiplied by the increase in the Federal Highway
Administration Price Trends for Federal-Aid Highway
Construction Composite Index published by the Federal Highway
Administration. An increase under this subsection in the wheel tax
rates under an ordinance that first applied in a county before
January 1, 2006, shall be computed as if 2006 were the first year in
which the ordinance applied in the county.
(e) If:
(1) the adopting entity of a county has not adopted an
ordinance imposing the wheel tax in the county;
(2) the legislative body of a municipality in that county adopts
an ordinance under section 2.5 of this chapter imposing the
wheel tax in the municipality; and
(3) an ordinance subsequently adopted by the adopting entity
of the county does not apply to motor vehicles registered in
the municipality.
SOURCE: IC 6-3.5-5-2.5; (06)IN1399.1.32. -->
SECTION 32. IC 6-3.5-5-2.5 IS ADDED TO THE INDIANA
CODE AS A
NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]:
Sec. 2.5. (a) This section applies to
a municipality in any county in which the wheel tax is not in effect
on January 1, 2007.
(b) The municipal legislative body may, subject to the limitation
imposed by subsection (c), adopt an ordinance to impose an annual
wheel tax on each vehicle that:
(1) is included in one (1) of the classes of vehicles listed in
section 3 of this chapter;
(2) is not exempt from the wheel tax under section 4 of this
chapter; and
(3) is registered in the municipality.
(c) The municipal legislative body may not adopt an ordinance
to impose the wheel tax unless it concurrently adopts an ordinance
under IC.6-3.5-4 to impose the annual license excise surtax.
(d) The municipal legislative body may impose the wheel tax at
a different rate for each of the classes of vehicles listed in section
3 of this chapter. In addition, the municipal legislative body may
establish different rates within the classes of buses, semitrailers,
trailers, tractors, and trucks based on weight classifications of
those vehicles that are established by the bureau of motor vehicles
for use throughout Indiana. However, the initial wheel tax rate for
a particular class or weight classification of vehicles may not be
less than five dollars ($5) and may not exceed forty dollars ($40).
The municipal legislative body shall state the initial wheel tax rates
in the ordinance that imposes the tax.
(e) Except as otherwise provided in an adopting or amending
ordinance, the rate of the wheel tax is increased in each year that
begins after the later of December 31, 2006, or the year in which
the initial wheel tax ordinance or an amendment to the wheel tax
ordinance first applies in a municipality. The increase is the wheel
tax rate in effect for the immediately preceding year multiplied by
the increase in the Federal Highway Administration Price Trends
for Federal-Aid Highway Construction Composite Index published
by the Federal Highway Administration.
(f) The municipal legislative body may not adopt an ordinance
under this section if the adopting entity of the county in which the
municipality is located has previously adopted an ordinance to
impose the wheel tax under section 2 of this chapter.
SOURCE: IC 6-3.5-5-5; (06)IN1399.1.33. -->
SECTION 33. IC 6-3.5-5-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5. (a) If a county
council an adopting entity adopts an ordinance imposing the wheel
tax after December 31 but before July 1 of the following year, a vehicle
described in section 2(a) of this chapter is subject to the tax if it is
registered in the county after December 31 of the year in which the
ordinance is adopted. If a county council an adopting entity adopts an
ordinance imposing the wheel tax after June 30 but before the
following January 1, a vehicle described in section 2(a) of this chapter
is subject to the tax if it is registered in the county after December 31
of the year following the year in which the ordinance is adopted.
However, in the first year the tax is effective, the tax does not apply to
the registration of a motor vehicle for the registration year that
commenced in the calendar year preceding the year the tax is first
effective.
(b) If a municipal legislative body adopts an ordinance imposing
the wheel tax after December 31 but before July 1 of the following
year, a vehicle described in section 2.5(b) of this chapter is subject
to the tax if it is registered in the municipality after December 31
of the year in which the ordinance is adopted. If a municipal
legislative body adopts an ordinance imposing the wheel tax after
June 30 but before the following January 1, a vehicle described in
section 2.5(b) of this chapter is subject to the tax if it is registered
in the municipality after December 31 of the year following the
year in which the ordinance is adopted. However, in the first year
the tax is effective, the tax does not apply to the registration of a
motor vehicle for the registration year that commenced in the
calendar year preceding the year the tax is first effective.
SOURCE: IC 6-3.5-5-6; (06)IN1399.1.34. -->
SECTION 34. IC 6-3.5-5-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 6. (a) After January
1 but before July 1 of any year, the
county council adopting entity
may, subject to the limitations imposed by subsection (b), adopt an
ordinance to rescind the wheel tax. If the
county council adopting
entity adopts such an ordinance, the wheel tax does not apply to a
vehicle registered after December 31 of the year the ordinance is
adopted.
(b) The
county council adopting entity may not adopt an ordinance
to rescind the wheel tax unless it concurrently adopts an ordinance
under IC 6-3.5-4 to rescind the annual license excise surtax. In
addition, the county council adopting entity may not adopt an
ordinance to rescind the wheel tax if:
(1) any portion of a loan obtained by the county under IC 8-14-8
is unpaid; or if
(2) any bonds issued by the county under:
(A) IC 8-14-9; or
(B) IC 8-18-22;
are outstanding;
(3) the county has pledged revenues from the wheel tax to any
bonds, leases, obligations, or other evidences of indebtedness
of the county; or
(4) a municipality in the county has pledged revenues from the
wheel tax to any bonds, leases, obligations, or other evidences
of indebtedness of the municipality.
SOURCE: IC 6-3.5-5-6.5; (06)IN1399.1.35. -->
SECTION 35. IC 6-3.5-5-6.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 6.5. (a) After January 1 but
before July 1 of any year, the municipal legislative body may,
subject to the limitations imposed by subsection (b), adopt an
ordinance to rescind the wheel tax. If the municipal legislative body
adopts such an ordinance, the wheel tax does not apply to a vehicle
registered after December 31 of the year the ordinance is adopted.
(b) The municipal legislative body may not adopt an ordinance
to rescind the wheel tax unless it concurrently adopts an ordinance
under IC.6-3.5-4 to rescind the annual license excise surtax. In
addition, the municipal legislative body may not adopt an
ordinance to rescind the surtax if the municipality has pledged the
wheel tax to any bonds, leases, obligations, or other evidences of
indebtedness of the municipality.
SOURCE: IC 6-3.5-5-7; (06)IN1399.1.36. -->
SECTION 36. IC 6-3.5-5-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 7. (a) The county
council adopting entity may, subject to the limitations imposed by
subsection (b), adopt an ordinance to increase or decrease the wheel tax
rates. The new wheel tax rates must be within the range of rates
prescribed by section 2 of this chapter. New rates that are established
by an ordinance that is adopted after December 31 but before July 1 of
the following year apply to vehicles registered after December 31 of the
year in which the ordinance to change the rates is adopted. New rates
that are established by an ordinance that is adopted after June 30 but
before July 1 of the following year apply to motor vehicles registered
after December 31 of the year following the year in which the
ordinance is adopted.
(b) The county council adopting entity may not adopt an ordinance
to decrease the wheel tax rate under this section if:
(1) any portion of a loan obtained by the county under IC 8-14-8
is unpaid; or if
(2) any bonds issued by the county under:
(A) IC 8-14-9; or
(B) IC 8-18-22;
are outstanding;
(3) the county has pledged revenues from the wheel tax to any
bonds, leases, obligations, or other evidences of indebtedness
of the county; or
(4) a municipality in the county has pledged revenues from the
wheel tax to any bonds, leases, obligations, or other evidences
of indebtedness of the municipality.
SOURCE: IC 6-3.5-5-7.5; (06)IN1399.1.37. -->
SECTION 37. IC 6-3.5-5-7.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 7.5. (a) The municipal
legislative body may, subject to the limitations imposed by
subsection (b), adopt an ordinance to increase or decrease the
wheel tax rates. The new wheel tax rates must be within the range
of rates prescribed by section 2.5 of this chapter. New rates that
are established by an ordinance that is adopted after December 31
but before July 1 of the following year apply to vehicles registered
after December 31 of the year in which the ordinance to change the
rates is adopted. New rates that are established by an ordinance
that is adopted after June 30 but before July 1 of the following year
apply to motor vehicles registered after December 31 of the year
following the year in which the ordinance is adopted.
(b) The municipal legislative body may not adopt an ordinance
to decrease the wheel tax rate under this section if the municipality
has pledged revenues from the wheel tax to any bonds, leases,
obligations, or other evidences of indebtedness of the municipality.
SOURCE: IC 6-3.5-5-8; (06)IN1399.1.38. -->
SECTION 38. IC 6-3.5-5-8 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 8. (a) If a county
council an adopting entity adopts an ordinance to impose, rescind, or
change the rates of the wheel tax, the county council adopting entity
shall send a copy of the ordinance to the commissioner of the bureau
of motor vehicles.
(b) If a municipal legislative body adopts an ordinance to
impose, rescind, or change the rates of the wheel tax, the municipal
legislative body shall send a copy of the ordinance to the
commissioner of the bureau of motor vehicles.
SOURCE: IC 6-3.5-5-9; (06)IN1399.1.39. -->
SECTION 39. IC 6-3.5-5-9 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 9. (a) A person
may not register a vehicle in a county which has adopted the wheel tax
unless he pays the wheel tax due, if any, to the bureau of motor
vehicles. The amount of the wheel tax due is based on the wheel tax
rate, for that class of vehicle, in effect at the time of registration, after
the application of the index described in section 2(d) of this
chapter. The bureau of motor vehicles shall collect the wheel tax due,
if any, at the time a motor vehicle is registered. However, the bureau
may utilize its branch offices to collect the wheel tax.
(b) A person may not register a vehicle in a municipality that
has adopted the wheel tax unless the person pays the wheel tax due,
if any, to the bureau of motor vehicles. The amount of the wheel
tax due is based on the wheel tax rate, for that class of vehicle, in
effect at the time of registration, after the application of the index
described in section 2.5(e) of this chapter. The bureau of motor
vehicles shall collect the wheel tax due, if any, at the time a motor
vehicle is registered. However, the bureau may use its branch
offices to collect the wheel tax.
SOURCE: IC 6-3.5-5-11; (06)IN1399.1.40. -->
SECTION 40. IC 6-3.5-5-11 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 11. (a) On or
before the tenth day of the month following the month in which wheel
tax is collected at a branch office, the branch office manager shall remit
the wheel tax to the county treasurer of the county that imposed the
wheel tax. Concurrently with the remittance, the branch office manager
shall file a wheel tax collections report with the county treasurer and
the county auditor. The branch manager shall prepare the report on
forms prescribed by the state board of accounts.
(b) On or before the tenth day of the month following the month
in which the wheel tax is collected at a branch office, the branch
office manager shall remit the wheel tax to the fiscal officer of the
municipality that imposed the wheel tax. Concurrently with the
remittance, the branch office manager shall file a wheel tax
collections report with the municipal fiscal officer. The branch
manager shall prepare the report on forms prescribed by the state
board of accounts.
SOURCE: IC 6-3.5-5-13; (06)IN1399.1.41. -->
SECTION 41. IC 6-3.5-5-13 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 13. If the wheel tax
is collected directly by the bureau of motor vehicles, instead of at a
branch office, the commissioner of the bureau shall:
(1) remit the wheel tax to, and file a wheel tax collections report
with, the appropriate:
(A) county treasurer; or
(B) municipal fiscal officer; and
(2) file a wheel tax collections report with the appropriate:
(A) county auditor; or
(B) municipal fiscal officer.
in the same manner and at the same time that a branch office manager
is required to remit and report under section 11 of this chapter.
SOURCE: IC 6-3.5-5-15; (06)IN1399.1.42. -->
SECTION 42. IC 6-3.5-5-15 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 15. (a) In the case
of a county that does not contain a consolidated city, the county
treasurer shall deposit the wheel tax revenues in a fund to be known as
the "County Wheel Tax Fund".
(b) Before the twentieth day of each month, the county auditor shall
allocate the money deposited in the county wheel tax fund during that
month among the county and the cities and the towns in the county.
The county auditor shall allocate the money to counties, cities, and
towns under IC 8-14-2-4(c)(1) through IC 8-14-2-4(c)(3).
(c) Before the twenty-fifth day of each month, the county treasurer
shall distribute to the county and the cities and towns in the county the
money deposited in the county wheel tax fund during that month. The
county treasurer shall base the distribution on allocations made by the
county auditor for that month under subsection (b).
(d) A county, city, or town may only use the wheel tax revenues it
receives under this section:
(1) to construct, reconstruct, repair, or maintain streets and roads
under its jurisdiction; or
(2) as a contribution to an authority established under IC 36-7-23.
(e) A county, city, or town may pledge wheel tax revenues
received under this section in accordance with IC 5-1-14-4.
SOURCE: IC 6-3.5-5-15.5; (06)IN1399.1.43. -->
SECTION 43. IC 6-3.5-5-15.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 15.5. (a) In the case of a
municipality other than a consolidated city, the municipal fiscal
officer shall deposit the wheel tax revenues in a fund to be known
as the "(City or Town) of _______ (name of municipality) Wheel
Tax Fund".
(b) A municipality may use the wheel tax revenues it receives
under this section only:
(1) to construct, reconstruct, repair, or maintain streets and
roads under its jurisdiction; or
(2) as a contribution to an authority established under
IC.36-7-23.
(c) Revenues received by a municipality under this section may
be pledged in accordance with IC 5-1-14-4.
SOURCE: IC 6-7-1-30.1; (06)IN1399.1.44. -->
SECTION 44. IC 6-7-1-30.1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 30.1. (a)
Two-thirds (2/3) of the money in the cigarette tax fund is annually
appropriated to the cities and towns of this state and to certain local
governmental entities.
(b) The amount which is allocated to each city or town under this
section equals the product of:
(1) the total amount appropriated under subsection (a); multiplied
by
(2) a fraction, the numerator of which is the population of the city
or town, and the denominator of which is the total population of
all the cities and towns of Indiana.
(c) The auditor of state shall calculate and distribute the amount
allocated to each city or town under this section on or before June 1
and December 1 of each year. To make these semiannual distributions,
the auditor of state shall issue warrants drawn on the cigarette tax fund
to the officials designated in subsection (d) or (e).
(d) For a consolidated city, or a city or town which is located in the
same county as the consolidated city, the auditor of state shall issue a
warrant for:
(1) three-fourteenths (3/14) of the money allocated to the city or
town under subsection (b) to the fiscal officer of the city or town;
and
(2) the remaining eleven-fourteenths (11/14) of the money to the
treasurer of that county.
The fiscal officer of the city or town shall deposit the money distributed
to
him the fiscal officer under this subsection in the city's or town's
general fund. The county treasurer shall annually deposit three hundred
fifty thousand dollars ($350,000) which
he the county treasurer
receives under this subsection in the capital improvement bond fund of
the county. The remainder of the money which the county treasurer
receives under this subsection is appropriated to the department of
transportation of the consolidated city. The county treasurer shall serve
as custodian of the money so appropriated to the department.
(e) For a city or town which is not located in the same county as a
consolidated city, the auditor of state shall issue a warrant for the total
amount allocated to the city or town under subsection (b) to the fiscal
officer of the city or town.
The fiscal officer shall deposit
three-fourteenths (3/14) of the money in the city's or town's general
fund, and he shall deposit the remaining eleven-fourteenths (11/14) of
the money in the city's or town's cumulative capital improvement fund.
The fiscal body of the city or town shall annually determine, by
ordinance or resolution, the part of the allocated amount to be
deposited in the city's or town's:
(1) general fund; and
(2) cumulative capital improvement fund.
SOURCE: IC 6-8.1-1-1; (06)IN1399.1.45. -->
SECTION 45. IC 6-8.1-1-1, AS AMENDED BY P.L.214-2005,
SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
MAY 1, 2006]: Sec. 1. "Listed taxes" or "taxes" includes only the
pari-mutuel taxes (IC 4-31-9-3 through IC 4-31-9-5); the river boat
admissions tax (IC 4-33-12); the river boat wagering tax (IC 4-33-13);
the gross income tax (IC 6-2.1) (repealed); the utility receipts tax
(IC 6-2.3); the state gross retail and use taxes (IC 6-2.5); the adjusted
gross income tax (IC 6-3); the supplemental net income tax (IC 6-3-8)
(repealed); the county adjusted gross income tax (IC 6-3.5-1.1); the
county option income tax (IC 6-3.5-6); the county economic
development income tax (IC 6-3.5-7); the municipal option income tax
(IC 6-3.5-8); the auto rental excise tax (IC 6-6-9); the financial
institutions tax (IC 6-5.5); the gasoline tax (IC 6-6-1.1); the alternative
fuel permit fee (IC 6-6-2.1); the special fuel tax (IC 6-6-2.5); the motor
carrier fuel tax (IC 6-6-4.1); a motor fuel tax collected under a
reciprocal agreement under IC 6-8.1-3; the motor vehicle excise tax
(IC 6-6-5); the commercial vehicle excise tax (IC 6-6-5.5); the
hazardous waste disposal tax (IC 6-6-6.6); the cigarette tax (IC 6-7-1);
the beer excise tax (IC 7.1-4-2); the liquor excise tax (IC 7.1-4-3); the
wine excise tax (IC 7.1-4-4); the hard cider excise tax (IC 7.1-4-4.5);
the malt excise tax (IC 7.1-4-5); the petroleum severance tax
(IC 6-8-1); the various innkeeper's taxes (IC 6-9 and IC 6-10-6); the
various food and beverage taxes (IC 6-9); the county admissions tax
(IC 6-9-13 and IC 6-9-28); a local sales tax (IC 6-10-3); a local food
and beverage tax (IC 6-10-4); a supplemental local income tax
(IC 6-10-6); the oil inspection fee (IC 16-44-2); the emergency and
hazardous chemical inventory form fee (IC 6-6-10); the penalties
assessed for oversize 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.
SOURCE: IC.6-10; (06)IN1399.1.46. -->
SECTION 46. IC.6-10 IS ADDED TO THE INDIANA CODE AS
A
NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE MAY 1,
2006]:
ARTICLE 10. HOMETOWN MATTERS
Chapter 1. General Policy; Purpose; Applicability
Sec. 1. The general assembly finds and determines the following:
(1) The diversification of revenue sources for financing cities,
towns, and counties is critical to the economic well-being of
Indiana and its communities.
(2) Reducing the reliance of cities, towns, and counties on ad
valorem property taxes to fund their capital and noncapital
needs will serve to encourage investment in Indiana, further
enhancing the economic well-being of Indiana and its
communities.
(3) Encouraging the use of nonproperty tax revenues,
whenever feasible, by cities, towns, and counties will improve
the quality of life in the Indiana's communities.
(4) For some communities, property tax revenues are the only
viable source of funding, and those communities should not be
penalized for factors beyond their control.
(5) Reducing reliance on property taxes by cities, towns, and
counties will in turn reduce the amount of money required to
make distributions from the state property tax replacement
fund.
(6) Encouraging diversity of local government revenue
sources will encourage cities, towns, and counties to operate
more effectively and efficiently.
Sec. 2. The purposes of this article are to do the following:
(1) Encourage cities, towns, and counties to reduce their
reliance on ad valorem property taxes by authorizing the
imposition of local food and beverage, innkeeper's, sales, and
supplemental income taxes to provide revenues to:
(A) replace property tax revenues; and
(B) provide additional revenue for cities, towns, and
counties.
(2) Reduce the required distributions from the state property
tax replacement fund.
Sec. 3. (a) This article applies only to cities, towns, and counties.
(b) This article does not apply to townships, school corporations,
or any other municipal corporation that is not a city, town, or
county.
(c) This article does not apply to special taxing districts.
Chapter 2. Definitions
Sec. 1. Except as otherwise provided in this article, the
definitions in IC.36-1-2 and this chapter apply throughout this
article.
Sec. 2. "Adjusted gross income" has the meaning set forth in
IC.6-3-1-3.5(a). However, in the case of a taxpayer who is not a
resident of the unit that has imposed a supplemental local income
tax under IC.6-10-6, the term includes only adjusted gross income
derived from the taxpayer's principal place of business or
employment.
Sec. 3. "Adopting entity" means:
(1) for a county:
(A) the county income tax council if the county option
income tax is in effect on January 1 of the year in which an
ordinance is considered under this article;
(B) the county fiscal body if the county adjusted gross
income tax is in effect on January 1 of the year in which an
ordinance is considered under this article; or
(C) either:
(i) the county income tax council; or
(ii) the county fiscal body;
whichever acts first, for a county not covered by clause (A)
or (B); and
(2) for a municipality, the municipal fiscal body.
Sec. 4. "Bonds" has the meaning set forth in IC.5-1-11-1.
Sec. 5. "Capital" means any project or program that is capital
in nature, involves the formation of capital for funding, or may be
capitalized under generally accepted accounting principles. The
term includes acquisition of real or personal property, creation or
improvement of infrastructure, and acquisition, improvement,
construction, or installation of buildings, structures, and
equipment.
Sec. 6. "County income tax council" means a council established
by IC.6-3.5-6-2.
Sec. 7. "Department" means the department of state revenue.
Sec. 8. "Hometown revenue option" refers to the following:
(1) A local sales tax.
(2) A local food and beverage tax.
(3) A local innkeeper's tax.
(4) A supplemental local income tax.
Sec. 9. "Obligations" has the meaning set forth in IC.5-1-3-1(b).
Sec. 10. "Operating" refers to an expense that is not capital in
nature.
Sec. 11. "Taxpayer" means the following:
(1) For a county, an individual who, for a year:
(A) resides in the county on January 1 of a calendar year;
or
(B) maintains a principal place of business or employment
in the county on January 1 of a calendar year.
(2) For a city or town, an individual who, for a year:
(A) resides in the city or town on January 1 of a calendar
year; or
(B) maintains a principal place of business or employment
in the city or town on January 1 of a calendar year.
Sec. 12. (a) "Unit" means a county, city, or town.
(b) The term does not include a township.
Chapter 3. Local Sales Taxes
Sec. 1. (a) The adopting entity of a county may adopt an
ordinance to impose an excise tax known as the unit's local sales
tax on transactions described in section 2 of this chapter in the
county.
(b) After March 31, 2007, the adopting entity of a municipality
may adopt an ordinance to impose an excise tax known as the
unit's local sales tax on transactions described in section 2 of this
chapter in the municipality, if the adopting entity of the county in
which a majority of the territory of the municipality is located has
not previously adopted a local sales tax under this chapter.
(c) An adopting entity that is a county income tax council must
use the procedures set forth in IC.6-3.5-6 concerning the imposition
of the county option income tax to adopt an ordinance to:
(1) impose;
(2) repeal; or
(3) increase or decrease the rate of;
a local sales tax under this chapter.
(d) The adopting entity that adopts the ordinance shall provide
a certified copy of the ordinance to the department.
(e) The ordinance takes effect on the first day of the month
specified in the ordinance. However, the effective date may not be
any sooner than the first day of the month that follows, by at least
forty-five (45) days, the month in which the ordinance is adopted.
Sec. 2. A local sales tax imposed under this chapter applies to
any transaction on which the state gross retail is imposed under
IC.6-2.5 and that occurs in the unit imposing the tax.
Sec. 3. (a) The local sales tax may be imposed at a rate specified
by the adopting entity in an ordinance. The rate must be in
increments of twenty-five hundredths of one percent (0.25%) up to
a maximum of one percent (1%).
(b) An ordinance adopted by the adopting entity of a county
must specify the basis upon which revenues from the local sales tax
will be distributed. Except as provided in section 4(a) of this
chapter, revenues may be distributed according to the following:
(1) Population.
(2) Location of collection.
(3) Any combination of subdivision (1) or (2).
Except as provided in section 4(a) of this chapter, if the ordinance
fails to specify a formula for distribution, revenues from the local
sales tax shall be distributed according to population.
(c) Except as provided in section 4(b) of this chapter, if the
adopting entity of a municipality adopts an ordinance to impose a
local sales tax under this chapter, the revenues from the local sales
tax must be distributed to the municipality.
Sec. 4. (a) The adopting entities of two (2) or more adjacent
counties may adopt substantially identical ordinances:
(1) to impose the local sales tax under this chapter in their
respective counties; and
(2) to provide for the distribution of revenues from the local
sales tax in any manner the counties consider appropriate.
However, a distribution of revenues under this subsection must
include a distribution of revenues from the local sales tax to all
municipalities in each county in an amount not less than the
amount that would be distributed to the municipalities based upon
population.
(b) The adopting entities of two (2) or more municipalities in a
county or in adjacent counties may adopt substantially identical
ordinances:
(1) to impose the local sales tax under this chapter in their
respective municipalities; and
(2) to provide for the distribution of revenues from the local
sales tax in any manner the municipalities consider
appropriate.
Sec. 5. (a) If a unit has outstanding bonds, leases, obligations, or
other evidences of indebtedness, that are payable from a local sales
tax imposed under this chapter, the tax may not be repealed or
decreased below a rate that would produce one and twenty-five
hundredths (1.25) times the total of the highest annual payment
requirements due from the local sales tax on those bonds, leases,
obligations, or other evidences of indebtedness, to their final
maturity.
(b) For purposes of subsection (a), the determination of a tax
rate sufficient to produce one and twenty-five hundredths (1.25)
times the total of the highest annual payment requirements shall be
based on an average of the immediately preceding three (3) years
collections for the local sales tax, if the tax has been imposed for
the last preceding three (3) years. If the local sales tax has not been
imposed for the last preceding three (3) years, the tax may not be
reduced below a rate that would produce one and twenty-five
hundredths (1.25) times the total of the highest annual payment
requirements due from local sale tax on those bonds, leases,
obligations, or other evidences of indebtedness, based upon a study
by a qualified accountant or financial adviser.
(c) If no bonds, leases, obligations, or other evidences of
indebtedness of a unit are outstanding that are payable from a
local sales tax imposed under this chapter, the tax may be repealed
or the rate reduced at the discretion of the adopting entity.
Sec. 6. Revenue from the tax shall be collected, deposited, and
used as provided by IC 6-10-11.
Chapter 4. Local Food and Beverage Tax
Sec. 1. (a) The adopting entity of a county may adopt an
ordinance to impose an excise tax known as the unit's local food
and beverage tax on transactions described in section 2 of this
chapter in the county.
(b) After March 31, 2007, the adopting entity of a municipality
may adopt an ordinance to impose an excise tax known as the
unit's local food and beverage tax on transactions described in
section 2 of this chapter in the municipality, if the adopting entity
of the county in which a majority of the territory of the
municipality is located has not previously adopted a local food and
beverage tax under this chapter.
(c) An adopting entity that is a county income tax council must
use the procedures set forth in IC.6-3.5-6 concerning the imposition
of the county option income tax to adopt an ordinance to:
(1) impose;
(2) repeal; or
(3) increase or decrease the rate of;
a local food and beverage tax under this chapter.
(d) The adopting entity that adopts the ordinance shall provide
a certified copy of the ordinance to the department.
(e) The ordinance takes effect on the first day of the month
specified in the ordinance. However, the effective date may not be
any sooner than the first day of the month that follows, by at least
forty-five (45) days, the month the ordinance is adopted.
(f) A tax under this chapter is in addition to any food and
beverage tax under IC 6-9.
Sec. 2. (a) Except as provided in subsection (c), a food and
beverage tax imposed under this chapter applies to any transaction
in which food or a 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 described in subsection (a)(1) include
transactions in which food or a beverage is:
(1) served by a retail merchant off the merchant's premises;
(2) sold by a retail merchant who ordinarily bags, wraps, or
packages the food or beverage for immediate consumption on
or near the retail merchant's premises, including food or
beverages sold on a "take out" or "to go" basis; or
(3) sold by a street vendor.
(c) A food and beverage tax imposed 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 the
transaction is exempt, from the state gross retail tax imposed under
IC.6-2.5.
Sec. 3. The food and beverage tax imposed under this chapter is
imposed on the gross retail income received by the retail merchant
from the transaction at a rate specified by the adopting entity in an
ordinance. The rate must be in increments of twenty-five
hundredths of one percent (0.25%) up to a maximum of one
percent (1%).
Sec. 4. (a) For purposes of this chapter, the gross retail income
received by the retail merchant from a transaction does not
include:
(1) the amount of tax imposed on the transaction under
IC.6-2.5;
(2) the amount of tax imposed under IC 6-9, if any; or
(3) the amount of tax imposed under IC.6-10-4, if any.
(b) An ordinance adopted by the adopting entity of a county
must specify the basis upon which revenues from the local food and
beverage tax will be distributed. Except as provided in section 4(a)
of this chapter, revenues may be distributed according to the
following:
(1) Population.
(2) Location of collection.
(3) Any combination of subdivisions (1) and (2).
Except as provided in section 5(a) of this chapter, if the ordinance
fails to specify a formula for distribution, revenues from the local
food and beverage tax shall be distributed according to population.
(c) Except as provided in section 5(b) of this chapter, if the
adopting entity of a municipality adopts an ordinance to impose a
local food and beverage tax under this chapter, the revenues from
the local food and beverage tax must be distributed to the
municipality.
Sec. 5. (a) The adopting entities of two (2) or more adjacent
counties may adopt substantially identical ordinances to impose the
local food and beverage tax under this chapter in their respective
counties and to provide for the distribution of revenues from the
local food and beverage tax in any manner the counties consider
appropriate. However, a distribution of revenues under this
subsection must include a distribution of revenues from the local
food and beverage tax to all municipalities in each county in an
amount not less than the amount that would be distributed to the
municipalities based upon population.
(b) The adopting entities of two (2) or more municipalities in a
county or in adjacent counties may adopt substantially identical
ordinances to impose the local food and beverage tax under this
chapter in their respective municipalities and to provide for the
distribution of revenues from the local food and beverage tax in
any manner the municipalities consider appropriate.
Sec. 6. (a) If a unit has outstanding bonds, leases, obligations, or
other evidences of indebtedness, that are payable from a food and
beverage tax imposed under this chapter, the tax may not be
decreased below a rate that would produce one and twenty-five
hundredths (1.25) times the total of the highest annual payment
requirements from food and beverage tax due on those bonds,
leases, obligations, or other evidences of indebtedness, to their final
maturity.
(b) For purposes of subsection (a), the determination of a tax
rate sufficient to produce one and twenty-five hundredths (1.25)
times the total of the highest annual payment requirements shall be
based on an average of the immediately preceding three (3) years
collections for the food and beverage tax, if the food and beverage
tax has been imposed for the last preceding three (3) years. If the
food and beverage tax has not been imposed for the last preceding
three (3) years, the tax may not be reduced below a rate that would
produce one and twenty-five hundredths (1.25) times the total of
the highest annual payment requirements due from food and
beverage tax on those bonds, leases, obligations, or other evidences
of indebtedness, based upon a study by a qualified accountant or
financial advisor.
(c) If no bonds, leases, obligations, or other evidences of
indebtedness of a unit are outstanding that are payable from a food
and beverage tax imposed under this chapter, the adopting entity
that imposed the local food and beverage tax may adopt an
ordinance to repeal or decrease the rate of the food and beverage
tax under this chapter.
Sec. 7. Revenue from the tax shall be collected, deposited, and
used as provided by IC 6-10-11.
Chapter 5. Local Innkeeper's Taxes
Sec. 1. (a) The adopting entity of a county may adopt an
ordinance to impose an excise tax known as the unit's local
innkeeper's tax on transactions described in section 2 of this
chapter in the county.
(b) After March 31, 2007, the adopting entity of a municipality
may adopt an ordinance to impose an excise tax known as the
unit's local innkeeper's tax on transactions described in section 2
of this chapter in the municipality, if the adopting entity of the
county in which a majority of the territory of the municipality is
located has not previously adopted a local innkeeper's tax under
this chapter.
(c) An adopting entity that is a county income tax council must
use the procedures set forth in IC.6-3.5-6 concerning the imposition
of the county option income tax to adopt an ordinance to impose,
repeal, or increase or decrease the rate of, a local innkeeper's tax
under this chapter.
(d) The adopting entity that adopts the ordinance shall provide
a certified copy of the ordinance to the department.
(e) The ordinance takes effect on the first day of the month
specified in the ordinance. However, the effective date may not be
any sooner than the first day of the month that follows, by at least
forty-five (45) days, the month the ordinance is adopted.
(f) A tax under this chapter is in addition to any innkeeper's tax
under IC 6-9.
Sec. 2. (a) A local innkeeper's tax imposed under this chapter is
levied on every person engaged in the business of renting or
furnishing, for periods of less than thirty (30) days, any room or
rooms, lodgings, or accommodations in any:
(1) hotel;
(2) motel;
(3) boat motel;
(4) inn;
(5) college or university memorial union;
(6) college or university residence hall or dormitory; or
(7) tourist cabin;
located in the county.
(b) The tax does not apply to gross income received in a
transaction in which:
(1) a student rents lodgings in a college or university residence
while that student participates in a course of study for which
the student receives college credit from a college or university
located in the county; or
(2) a person rents a room, lodgings, or accommodations for a
period of thirty (30) days or more.
Sec. 3. (a) The local innkeeper's tax may be imposed at the rate
specified by the adopting entity in the ordinance imposing the tax.
However, the rate may not exceed eight percent (8%) on the gross
retail income derived from lodging income only and is in addition
to:
(1) the state gross retail tax imposed under IC 6-2.5;
(2) a local sales tax imposed under IC 6-10-3, if any; or
(3) an innkeeper's tax imposed under IC 6-9, if any.
(b) An ordinance adopted by the adopting entity of a county
must specify the basis upon which revenues from the innkeeper's
tax will be distributed. Except as provided in section 4(a) of this
chapter, revenues may be distributed according to the following:
(1) Population.
(2) Location of collection.
(3) Any combination of subdivisions (1) and (2).
Except as provided in section 4(a) of this chapter, if the ordinance
fails to specify a formula for distribution, revenues from the local
innkeeper's tax shall be distributed according to population.
(c) Except as provided in section 4(b) of this chapter, if the
adopting entity of a municipality adopts an ordinance to impose a
local innkeeper's tax under this chapter, the revenues from the
innkeeper's tax must be distributed to the municipality.
Sec. 4. (a) The adopting entities of two (2) or more adjacent
counties may adopt substantially identical ordinances to impose the
local innkeeper's tax under this chapter in their respective counties
and to provide for the distribution of revenues from the local food
and beverage tax in any manner the counties consider appropriate.
However, a distribution of revenues under this subsection must
include a distribution of revenues from the local innkeeper's tax to
all municipalities in each county in an amount not less than the
amount that would be distributed to the municipalities based upon
the location of collection.
(b) The adopting entities of two (2) or more municipalities in a
county or in adjacent counties may adopt substantially identical
ordinances to impose the local innkeeper's tax under this chapter
in their respective municipalities and to provide for the
distribution of revenues from the local innkeeper's tax in any
manner the municipalities consider appropriate.
Sec. 5. (a) If a unit has outstanding bonds, leases, obligations, or
other evidences of indebtedness that are payable from a local
innkeeper's tax imposed under this chapter, the tax may not be
decreased below a rate that would produce one and twenty-five
hundredths (1.25) times the total of the highest annual payment
requirements due from local innkeeper's tax on those bonds, leases,
obligations, or other evidences of indebtedness to their final
maturity.
(b) For purposes of subsection (a), the determination of a tax
rate sufficient to produce one and twenty-five hundredths (1.25)
times the total of the highest annual payment requirements shall be
based on an average of the immediately preceding three (3) years
collections for the food and beverage tax, if the local innkeeper's
tax has been imposed for the last preceding three (3) years. If the
local innkeeper's tax has not been imposed for the last preceding
three (3) years, the tax may not be reduced below a rate that would
produce one and twenty-five hundredths (1.25) times the total of
the highest annual payment requirements due from local
innkeeper's tax on those bonds, leases, obligations, or other
evidences of indebtedness, based upon a study by a qualified
accountant or financial advisor.
(c) If no bonds, leases, obligations, or other evidences of
indebtedness of a unit are outstanding that are payable from a
local innkeeper's tax imposed under this chapter, the adopting
entity that imposed the local innkeeper's tax may adopt an
ordinance to repeal or decrease the rate of the local innkeeper's tax
under this chapter.
Sec. 6. Revenue from the tax shall be collected, deposited, and
used as provided by IC 6-10-11.
Chapter 6. Supplemental Local Income Tax
Sec. 1. (a) The adopting entity of a county may adopt an
ordinance to impose a supplemental local income tax on the
adjusted gross income of taxpayers.
(b) After March 1, 2007, the adopting entity of a municipality
may adopt an ordinance to impose a supplemental local income tax
on the adjusted gross income of taxpayers, if the adopting entity of
the county in which a majority of the territory of the municipality
is located has not previously adopted a supplemental local income
tax under this chapter.
(c) An adopting entity that is a county income tax council must
use the procedures set forth in IC 6-3.5-6 concerning the adoption
of the county option income tax to adopt an ordinance to impose,
repeal, increase, or decrease the rate or rates of a supplemental
local income tax under this chapter.
(d) The adopting entity that adopts the ordinance shall provide
a certified copy of the ordinance to the department.
(e) If an ordinance imposing a supplemental local income tax
under this chapter is adopted before May 1 of a year, the ordinance
takes effect on July 1 of that year. If an ordinance imposing a
supplemental local income tax under this chapter is adopted after
April 30 of a year, the ordinance takes effect January 1 of the year
following the year in which the ordinance is adopted.
Sec. 2. (a) A supplement local income tax imposed under this
chapter may be imposed on the adjusted gross income of taxpayers
as follows:
(1) The adjusted gross income earned by a resident within the
jurisdiction of the adopting entity regardless of the location
the income was earned.
(2) Adjusted gross income earned by a nonresident of the
jurisdiction of the adopting entity if:
(A) the adjusted gross income is earned within the
jurisdiction of the adopting entity; and
(B) the adopting entity has imposed the nonresident tax.
(b) If the adopting entity desires to impose a nonresident tax, the
adopting entity must make findings, supported by facts, that the
presence of nonresident employees imposes additional demands for
public safety and other services within the jurisdiction of the
adopting entity.
Sec. 3. (a) An adopting entity may impose a supplemental local
income tax at two (2) different rates, with one (1) rate for residents
of the adopting entity and a different rate for nonresidents of the
adopting entity who earn income within the jurisdiction of the
adopting entity.
(b) A rate must be specified in the ordinance. A rate must be in
increments of one-tenth of one percent (0.1%) or twenty-five
hundredths of one percent (0.25%).
(c) An ordinance adopted by the adopting entity of a county
must specify the basis upon which revenues from the supplemental
local income tax will be distributed. Except as provided in section
4(a) of this chapter, revenues may be distributed according to the
following:
(1) Population.
(2) Location of collection.
(3) Any combination of subdivisions (1) and (2).
Except as provided in section 4(a) of this chapter, if the ordinance
fails to specify a formula for distribution, revenues from the
supplemental local income tax shall be distributed according to
population.
(d) Except as provided in section 4(b) of this chapter, if the
adopting entity of a municipality adopts an ordinance to impose a
supplemental local income tax under this chapter, the revenues
from the supplemental local income tax must be distributed to the
municipality.
Sec. 4. (a) The adopting entities of two (2) or more adjacent
counties may adopt substantially identical ordinances to impose the
supplemental local income tax under this chapter in their
respective counties and to provide for the distribution of revenues
from the supplemental local income tax in any manner the counties
consider appropriate. However, a distribution of revenues under
this subsection must include a distribution of revenues from the
supplemental local income tax to all municipalities in each county
in an amount not less than the amount that would be distributed to
the municipalities based upon population.
(b) The adopting entities of two (2) or more municipalities in a
county or in adjacent counties may adopt substantially identical
ordinances to impose the supplemental local income tax under this
chapter in their respective municipalities and to provide for the
distribution of revenues from the supplemental local income tax in
any manner the municipalities consider appropriate.
Sec. 5. (a) If for a taxable year a taxpayer is (or a taxpayer and
a taxpayer's spouse who file a joint return are) allowed a credit for
the elderly or the disabled under Section 22 of the Internal
Revenue Code, the taxpayer is (or a taxpayer and a taxpayer's
spouse who file a joint return are) entitled to a credit against the
taxpayer's (or the taxpayer's and the taxpayer's spouse's) income
tax liability under this chapter for that same taxable year. The
amount of the credit equals the lesser of:
(1) the product of:
(A) the taxpayer's (or the taxpayer's and the taxpayer's
spouse's) credit for the elderly or the totally disabled for
that same taxable year; multiplied by
(B) a fraction for which the numerator is the income tax
rate and the denominator is fifteen-hundredths (0.15); or
(2) the amount of local income tax imposed on the local
taxpayer (or the local taxpayer and the local taxpayer's
spouse).
(b) If a local taxpayer and the local taxpayer's spouse file a joint
return and are subject to different income tax rates under this
chapter for the same taxable year, they shall compute the credit
under this section using the formula provided by subsection (a),
except that they shall use the average of the two (2) income tax
rates as the numerator referred to in subsection (a)(1)(B).
Sec. 6. (a) If a unit has outstanding bonds, leases, obligations, or
other evidences of indebtedness that are payable from an income
tax imposed under this chapter, the local income tax may not be
decreased below a rate that would produce one and twenty-five
hundredths (1.25) times the total of the highest annual payment
requirements due from local income tax on those bonds, leases,
obligations, or other evidences of indebtedness to their final
maturity.
(b) For purposes of subsection (a), the determination of a tax
rate sufficient to produce one and twenty-five hundredths (1.25)
times the total of the highest annual payment requirements shall be
based on an average of the immediately preceding three (3) years
tax collections for the tax, if the tax has been imposed for the last
preceding three (3) years. If the local income tax has not been
imposed for the last preceding three (3) years, the income tax may
not be reduced below a rate that would produce one and
twenty-five hundredths (1.25) times the total of the highest annual
payment requirements due from local income tax on those bonds,
leases, obligations, or other evidences of indebtedness, based upon
a study by a qualified accountant or financial advisor.
(c) If no bonds, leases, obligations, or other evidences of
indebtedness of the unit are outstanding that are payable from an
income tax imposed under this chapter, the adopting entity that
imposed the tax may adopt an ordinance to repeal a supplemental
local income tax under this chapter.
Sec. 7. Revenue from the tax shall be collected, deposited, and
used as provided IC 6-10-11.
Chapter 7. Collection Procedures for Local Sales Taxes
Sec. 1. A local sales tax imposed under IC.6-10-3 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. 2. A local sales tax imposed under IC.6-10-3 is a listed tax
for purposes of IC.6-8.1.
Sec. 3. (a) If a county has imposed a local sales tax under
IC.6-10-3, the department shall notify the county fiscal officer of
the amount of tax paid in the county.
(b) If a municipality has imposed a local sales tax under
IC 6-10-3, the department shall notify the municipal fiscal officer
of the amount of tax paid in the municipality.
(c) The amounts received from a local sales tax imposed under
IC.6-10-3 shall be paid monthly by the treasurer of state on
warrants issued by the auditor of state to the fiscal officer of the
unit that imposed the tax.
Sec. 4. The unit's fiscal officer shall establish a local sales tax
revenue fund into which all amounts received monthly from the
treasurer of state under this chapter shall be deposited.
Chapter 8. Collection Procedures for Local Food and Beverage
Taxes
Sec. 1. A local food and beverage tax imposed under IC.6-10-4
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. 2. A local food and beverage tax imposed under IC.6-10-4
is a listed tax for the purposes of IC.6-8.1.
Sec. 3. (a) If a county has imposed a local food and beverage tax
under IC.6-10-4, the department shall notify the county fiscal
officer of the amount of tax paid in the county.
(b) If a municipality has imposed a local food and beverage tax
under IC 6-10-4, the department shall notify the municipal fiscal
officer of the amount of tax paid in the municipality.
(c) The amounts received from a local food and beverage tax
imposed under IC.6-10-4 shall be paid monthly by the treasurer of
state on warrants issued by the auditor of state to the fiscal officer
of the unit that imposed the tax.
Sec. 4. The unit's fiscal officer shall establish a local food and
beverage tax revenue fund into which all amounts received
monthly from the treasurer of state under this chapter shall be
deposited.
Chapter 9. Collection Procedures for Local Innkeeper's Taxes
Sec. 1. A local innkeeper's tax imposed under IC.6-10-5 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. 2. A local innkeeper's tax imposed under IC.6-10-5 is a
listed tax for the purposes of IC.6-8.1.
Sec. 3. (a) If a county has imposed a local innkeeper's tax under
IC.6-10-5, the department shall notify the county fiscal officer of
the amount of tax paid in the county.
(b) If a municipality has imposed a local innkeeper's tax under
IC 6-10-5, the department shall notify the municipal fiscal officer
of the amount of tax paid in the municipality.
(c) The amounts received from a local innkeeper's tax imposed
under IC.6-10-5 shall be paid monthly by the treasurer of state on
warrants issued by the auditor of state to the fiscal officer of the
unit that imposed the tax.
Sec. 4. (a) The unit's fiscal officer shall establish a local
innkeeper's tax revenue fund into which all amounts received
monthly from the treasurer of state under this chapter shall be
deposited.
(b) Money in the local innkeeper's tax revenue fund shall be
transferred at least monthly to the hometown revenues fund
established under IC 6-10-11-1.
Chapter 10. Collection Procedures for Local Income Taxes
Sec. 1. (a) A special account within the state general fund shall
be established for each unit that is a recipient of revenues from a
supplemental local income tax imposed under IC.6-10-6.
(b) Revenue derived from the imposition of a supplemental local
income tax shall be deposited in that unit's account in the state
general fund, if the local income tax is imposed by the unit's fiscal
body.
(c) Income earned on money in an account established under
this section becomes part of that account.
(d) Money remaining in an account at the end of a fiscal year
does not revert to the state general fund but remains in that
account.
Sec. 2. (a) Revenue derived from the imposition of the
supplemental income tax shall, in the manner prescribed by this
chapter, be distributed to the unit that imposed the tax.
(b) Subject to section 3 of this chapter, the amount to be
distributed to a unit during an ensuing calendar year equals the
amount of supplemental local income tax revenue that the
department, after reviewing the recommendation of the budget
agency, determines has been:
(1) received from that unit for a taxable year ending before
the calendar year in which the determination is made; and
(2) reported on an annual return or amended return
processed by the department in the state fiscal year ending
before July 1 of the calendar year in which the determination
is made;
as adjusted (as determined after review of the recommendation of
the budget agency) for refunds of supplemental local income tax
made in the state fiscal year.
Sec. 3. (a) The amount determined under section 2 of this
chapter shall be adjusted as provided under this section.
(b) The department, after reviewing the recommendation of the
budget agency, shall adjust the distribution of a unit to an amount
less than the amount determined under section 2 of this chapter if
the department, after reviewing the recommendation of the budget
agency, determines that the reduced distribution is necessary to
offset overpayments made in a calendar year before the calendar
year of the distribution. The department, after reviewing the
recommendation of the budget agency, may reduce the amount of
a certified distribution over several calendar years so that any
overpayments are offset over several years rather than in one (1)
lump sum.
(c) The department, after reviewing the recommendation of the
budget agency, shall adjust the distribution of a unit to correct for
any clerical or mathematical errors made in any previous
certification under this chapter. The department, after reviewing
the recommendation of the budget agency, may reduce the amount
of the distribution over several calendar years so that any
adjustment under this subsection is offset over several years rather
than in one (1) lump sum.
(d) This subsection applies to a unit that:
(1) initially imposes the supplemental local income tax; or
(2) increases the supplemental income tax rate;
under this chapter in the same calendar year in which the
department makes a certification under this section. The
department, after reviewing the recommendation of the budget
agency, shall adjust the distribution of a unit to provide for a
distribution in the immediately following calendar year and in each
calendar year thereafter. The department shall provide for a full
transition to certification of distributions as provided in section 2
of this chapter over the number of years determined by the
department, after review of the recommendation of the budget
agency.
Sec. 4. Before August 2 of each calendar year, the department,
after reviewing the recommendation of the budget agency, shall
certify to the fiscal officer of each adopting unit the amount
determined under section 2 of this chapter (as adjusted under
section 3 of this chapter) plus the amount of interest in the unit's
account that has accrued and has not been included in a
certification made in a preceding year. The amount certified is the
unit's "certified distribution" for the ensuing year.
Sec. 5. The department shall provide the adopting unit with:
(1) the amount of the unit's certified distribution for the
ensuing year; and
(2) an informative summary of the calculations used to
determine the certified distribution.
Sec. 6. The department shall distribute to a unit the unit's
certified distribution in twelve (12) equal monthly installments.
Chapter 11. Use of Hometown Revenues
Sec. 1. (a) After an adopting entity has imposed one (1) or more
hometown revenue options under this article, the fiscal officer of
the unit must establish a hometown revenue fund, consisting of a
revenue stabilization account and a general account.
(b) For the first three (3) years in which the unit receives a
distribution of revenues from a hometown revenue option, the
unit's fiscal officer must deposit an amount of hometown revenues
in the revenue stabilization account sufficient to accumulate a
balance in the account, at the end of the third year, that is at least
equal to the total amount of hometown revenues received in the
first year of distribution. If the unit's distribution of hometown
revenues received in a year is less than the amount included in the
unit's budget for the year, money on deposit in the revenue
stabilization account may be used to fund the shortfall. Any
amounts withdrawn from the reserve stabilization account must be
restored from the next distribution of any hometown revenues
before applying hometown revenues under section 2 of this
chapter. Money in the revenue stabilization account may not be
taken into account when determining the unit's maximum
permissible rate under IC 6-1.1-18 or levy under IC 6-1.1-18.5. The
remaining hometown revenues shall be deposited in the general
account and may be used as provided in section 2 of this chapter.
(c) Except as provided in subsection (b), after meeting the
requirement for funding the revenue stabilization account,
beginning with the fourth year in which the unit receives a
distribution of hometown revenues, the revenues must first be used
to provide property tax relief to taxpayers or classes of taxpayers,
to the extent permitted by the Constitution of the State of Indiana,
in the following amount for the year:
(1) For municipalities:
Per capita
Percentage of
municipal
revenues required for
property tax
property tax reduction
More than $450 75%
More than $350
but not more than $450 50%
At least $250
but not more than $350 25%
Less than $250 0%
(2) For counties:
Per capita
Percentage of
county
revenues required for
property tax
property tax reduction
More than $450 75%
More than $350
but not more than $450 50%
At least $250
but not more than $350 25%
Less than $250 0%
The department of local government finance shall certify to each
affected unit the total dollar amount of property tax relief that
must be provided under this subsection for a particular year.
(d) Hometown revenues remaining after satisfying the
requirements of subsection (c) in any particular year shall be
deposited in the general account and may be treated by each unit
as additional revenue for the purposes set forth in section 2 of this
chapter.
(e) A unit's maximum permissible rate under IC 6-1.1-18 or levy
under IC 6-1.1-18.5 shall be computed without regard to the
provisions of this article and shall not be adjusted to reflect the
receipt, distribution, or use of any hometown revenue by a unit
under this article.
Sec. 2. (a) A unit may treat the revenue remaining after
satisfying section 1 of this chapter as additional revenue for the
purposes of fixing its budget for the budget year and the
department of local government finance may not reduce a unit's:
(1) property tax rate for a fund;
(2) property tax levy; or
(3) maximum permissible levy for a particular year;
by the amount of revenue described in this section received from
a tax imposed under this article.
(b) A unit may use the additional revenue for any one (1) or
more of the following purposes:
(1) To provide property tax relief to taxpayers or classes of
taxpayers, to the extent permitted by the Constitution of the
State of Indiana.
(2) To provide additional operating revenue for the unit.
(3) To pay debt service or lease rentals on:
(A) bonds;
(B) leases;
(C) obligations; or
(D) any other evidence of indebtedness of the unit.
(4) For any other purpose that the fiscal body determines is
necessary, wise, and in the best interest of the residents of the
unit.
(c) Notwithstanding section 1 of this chapter, if a governing
body (as defined in IC 6-1.1-21.2-6) has bonds, leases, obligations,
or other evidences of indebtedness payable in whole or in part from
tax increment revenues (as defined in IC 6-1.1-21.2-10), the unit's
fiscal officer must first apply any hometown revenues received
under this article to the payment of those bonds, leases, obligations,
or other evidences of indebtedness if the governing body certifies
that, without the application of hometown revenues, the rights of
holders or owners of the bonds, leases, or other obligations will be
impaired or adversely affected by the property tax reduction
provided for under this chapter.
Chapter 12. Covenants
Sec. 1. The general assembly covenants with the respective units
and the purchasers and owners of bonds, leases, obligations, or any
other evidences of indebtedness of a unit payable from a tax
imposed under this article that this article will not be repealed or
amended in any manner that will adversely affect the imposition or
collection of a tax imposed under this article so long as the
principal, interest, or lease rentals due under those bonds, leases,
obligations, or other evidences of indebtedness of a unit that are
payable from a tax imposed under this article remain unpaid.
SOURCE: IC 8-14-1-5; (06)IN1399.1.47. -->
SECTION 47. IC 8-14-1-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5. (a) All funds
allocated to cities and towns from the motor vehicle highway account
shall be used by the cities and towns for the:
(1) engineering, land acquisition, construction, reconstruction,
repair, maintenance, oiling, sprinkling, snow removal, weed and
tree cutting and cleaning of their highways,
as herein defined, and
including
also any curbs;
and the
(2) city's or town's share of the cost of the separation of the grades
of crossing of public highways and railroads;
the
(3) purchase or lease of highway construction and maintenance
equipment;
the
(4) purchase, erection, operation and maintenance of traffic signs
and signals, and safety zones and devices; and
the
(5) painting of structures, objects,
and surfaces in highways for
purposes of safety and traffic regulation.
All of
such the funds shall be budgeted as provided by law.
(b) In addition to purposes for which funds may be expended under
subsections (a) and (c) of this section, monies allocated to cities and
towns under this chapter may be expended for law enforcement
purposes, subject to the following limitations:
(1) For cities and towns with a population of less than five
thousand (5,000), no more than fifteen percent (15%) may be
spent for law enforcement purposes.
(2) For cities and towns other than those specified in subdivision
(1) of this subsection, no more than ten percent (10%) may be
spent for law enforcement purposes.
(c) In addition to purposes for which funds may be expended under
subsections (a) and (b) of this section, monies allocated to cities and
towns under this chapter may be expended for the payment of principal
and interest on bonds sold primarily to finance road, street, or
thoroughfare projects
and for the payment of the indirect costs
associated with municipal street departments.
(d) A city or town may combine funds allocated under this
chapter with funds allocated under IC 8-14-2.
SOURCE: IC 8-14-2-5; (06)IN1399.1.48. -->
SECTION 48. IC 8-14-2-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5. (a) Money from
the local road and street account shall be used exclusively by the cities,
towns, and counties for:
(1) engineering, land acquisition, construction, resurfacing,
maintenance, restoration, or rehabilitation of both local and
arterial road and street systems;
(2) the payment of principal and interest on bonds sold primarily
to finance road, street, or thoroughfare projects;
(3) any local costs required to undertake a recreational or
reservoir road project under IC 8-23-5; or
(4) the purchase, rental, or repair of highway equipment.
(b) In addition to the purposes specified in subsection (a), cities,
towns, and counties may use money from the local road and street
account for:
(1) oiling, sprinkling, snow removal, weed and tree cutting,
and cleaning of their highways, including any curbs;
(2) the city's or town's share of the cost of the separation of
the grades of crossing of public highways and railroads;
(3) the purchase, erection, operation and maintenance of
traffic signs and signals, and safety zones and devices; and
(4) the painting of structures, objects, and surfaces in
highways for purposes of safety and traffic regulation.
(c) A city or town may combine funds allocated under this
chapter with funds allocated under IC 8-14-1.
SOURCE: IC 22-2-2-4; (06)IN1399.1.49. -->
SECTION 49. IC 22-2-2-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 4. (a) Every employer
employing four (4) or more employees during a work week shall:
(1) in any work week beginning on or after July 1, 1968, in which
he the employer is subject to the provisions of this chapter, pay
each of
his the employer's employees wages of not less than one
dollar and twenty-five cents ($1.25) per hour;
(2) in any work week beginning on or after July 1, 1977, in which
he the employer is subject to this chapter, pay each of
his the
employer's employees wages of not less than one dollar and fifty
cents ($1.50) per hour;
(3) in any work week beginning on or after January 1, 1978, in
which
he the employer is subject to this chapter, pay each of
his
the employer's employees wages of not less than one dollar and
seventy-five cents ($1.75) per hour; and
(4) in any work week beginning on or after January 1, 1979, in
which he the employer is subject to this chapter, pay each of his
the employer's employees wages of not less than two dollars ($2)
per hour.
(b) Except as provided in subsection (c), every employer employing
at least two (2) employees during a work week shall, in any work week
in which the employer is subject to this chapter, pay each of the
employees in any work week beginning on and after July 1, 1990, and
before October 1, 1998, wages of not less than three dollars and
thirty-five cents ($3.35) per hour.
(c) An employer subject to subsection (b) is permitted to apply a "tip
credit" in determining the amount of cash wage paid to tipped
employees. In determining the wage an employer is required to pay a
tipped employee, the amount paid the employee by the employee's
employer shall be an amount equal to:
(1) the cash wage paid the employee, which for purposes of the
determination shall be not less than the cash wage required to be
paid to employees covered under the federal Fair Labor Standards
Act of 1938, as amended (29 U.S.C. 203(m)(1)) on August 20,
1996, which amount is two dollars and thirteen cents ($2.13) an
hour; and
(2) an additional amount on account of the tips received by the
employee, which amount is equal to the difference between the
wage specified in subdivision (1) and the wage in effect under
subsections (b), (f), and (g), (h), (i), (j), and (l).
An employer is responsible for supporting the amount of tip credit
taken through reported tips by the employees.
(d) No employer having employees subject to any provisions of this
section shall discriminate, within any establishment in which
employees are employed, between employees on the basis of sex by
paying to employees in such establishment a rate less than the rate at
which he the employer pays wages to employees of the opposite sex
in such establishment for equal work on jobs the performance of which
requires equal skill, effort, and responsibility, and which are performed
under similar working conditions, except where such payment is made
pursuant to:
(1) a seniority system;
(2) a merit system;
(3) a system which measures earnings by quantity or quality of
production; or
(4) a differential based on any other factor other than sex.
(e) An employer who is paying a wage rate differential in violation
of subsection (d) shall not, in order to comply with subsection (d),
reduce the wage rate of any employee, and no labor organization, or its
agents, representing employees of an employer having employees
subject to subsection (d) shall cause or attempt to cause such an
employer to discriminate against an employee in violation of
subsection (d).
(f) Except as provided in subsection (c), every employer employing
at least two (2) employees during a work week shall, in any work week
in which the employer is subject to this chapter, pay each of the
employees in any work week beginning on or after October 1, 1998,
and before March 1, 1999, wages of not less than four dollars and
twenty-five cents ($4.25) per hour.
(g) Except as provided in subsections (c) and
(i), (l), every employer
employing at least two (2) employees during a work week shall, in any
work week in which the employer is subject to this chapter, pay each
of the employees in any work week beginning on or after March 1,
1999,
and before September 1, 2006, wages of not less than five
dollars and fifteen cents ($5.15) an hour.
(h) Except as provided in subsections (c) and (l), every employer
employing at least two (2) employees during a work week shall, in
any work week in which the employer is subject to this chapter,
pay each of the employees in any work week beginning on or after
September 1, 2006, and before March 1, 2007, wages of not less
than five dollars and sixty-five cents ($5.65) an hour.
(i) Except as provided in subsections (c) and (l), every employer
employing at least two (2) employees during a work week shall, in
any work week in which the employer is subject to this chapter,
pay each of the employees in any work week beginning on or after
March 1, 2007, and before September 1, 2007, wages of not less
than six dollars and fifteen cents ($6.15) an hour.
(j) Except as provided in subsections (c) and (l), every employer
employing at least two (2) employees during a work week shall, in
any work week in which the employer is subject to this chapter,
pay each of the employees in any work week beginning on or after
September 1, 2007, wages of not less than seven dollars ($7) an
hour.
(h) (k) This section does not apply if an employee:
(1) provides companionship services to the aged and infirm (as
defined in 29 CFR 552.6); and
(2) is employed by an employer or agency other than the family
or household using the companionship services, as provided in 29
CFR 552.109 (a).
(i) (l) This subsection applies only to an employee who has not
attained the age of twenty (20) years. Instead of the rates prescribed by
subsections (c), (f), and (g), (h), (i), and (j), an employer may pay an
employee of the employer, during the first ninety (90) consecutive
calendar days after the employee is initially employed by the employer,
a wage which is not less than:
(1) four dollars and twenty-five cents ($4.25) per hour, effective
March 1, 1999;
(2) four dollars and seventy-five cents ($4.75) per hour,
effective September 1, 2006;
(3) five dollars and twenty-five cents ($5.25) per hour,
effective March 1, 2007; and
(4) six dollars and ten cents ($6.10) per hour, effective
September 1, 2007.
However, no employer may take any action to displace employees
(including partial displacements such as reduction in hours, wages, or
employment benefits) for purposes of hiring individuals at the wage
authorized in this subsection.
(j) (m) Except as otherwise provided in this section, no employer
shall employ any employee for a work week longer than forty (40)
hours unless the employee receives compensation for employment in
excess of the hours above specified at a rate not less than one and
one-half (1.5) times the regular rate at which he the employee is
employed.
(k) (n) For purposes of this section the following apply:
(1) "Overtime compensation" means the compensation required
by subsection (j). (m).
(2) "Compensatory time" and "compensatory time off" mean
hours during which an employee is not working, which are not
counted as hours worked during the applicable work week or
other work period for purposes of overtime compensation, and for
which the employee is compensated at the employee's regular
rate.
(3) "Regular rate" means the rate at which an employee is
employed is considered to include all remuneration for
employment paid to, or on behalf of, the employee, but is not
considered to include the following:
(A) Sums paid as gifts, payments in the nature of gifts made at
Christmas time or on other special occasions, as a reward for
service, the amounts of which are not measured by or
dependent on hours worked, production, or efficiency.
(B) Payments made for occasional periods when no work is
performed due to vacation, holiday, illness, failure of the
employer to provide sufficient work, or other similar cause,
reasonable payments for traveling expenses, or other expenses,
incurred by an employee in the furtherance of
his the
employer's interests and properly reimbursable by the
employer, and other similar payments to an employee which
are not made as compensation for
his the employee's hours of
employment.
(C) Sums paid in recognition of services performed during a
given period if:
(i) both the fact that payment is to be made and the amount
of the payment are determined at the sole discretion of the
employer at or near the end of the period and not pursuant
to any prior contract, agreement, or promise causing the
employee to expect the payments regularly;
(ii) the payments are made pursuant to a bona fide profit
sharing plan or trust or bona fide thrift or savings plan,
meeting the requirements of the administrator set forth in
appropriately issued regulations, having due regard among
other relevant factors, to the extent to which the amounts
paid to the employee are determined without regard to hours
of work, production, or efficiency; or
(iii) the payments are talent fees paid to performers,
including announcers, on radio and television programs.
(D) Contributions irrevocably made by an employer to a
trustee or third person pursuant to a bona fide plan for
providing old age, retirement, life, accident, or health
insurance or similar benefits for employees.
(E) Extra compensation provided by a premium rate paid for
certain hours worked by the employee in any day or work
week because those hours are hours worked in excess of eight
(8) in a day or in excess of the maximum work week
applicable to the employee under subsection
(j) (m) or in
excess of the employee's normal working hours or regular
working hours, as the case may be.
(F) Extra compensation provided by a premium rate paid for
work by the employee on Saturdays, Sundays, holidays, or
regular days of rest, or on the sixth or seventh day of the work
week, where the premium rate is not less than one and one-half
(1.5) times the rate established in good faith for like work
performed in nonovertime hours on other days.
(G) Extra compensation provided by a premium rate paid to
the employee, in pursuance of an applicable employment
contract or collective bargaining agreement, for work outside
of the hours established in good faith by the contract or
agreement as the basic, normal, or regular workday (not
exceeding eight
(8) hours) or work week (not exceeding the
maximum work week applicable to the employee under
subsection
(j)) (m)) where the premium rate is not less than
one and one-half (1.5) times the rate established in good faith
by the contract or agreement for like work performed during
the workday or work week.
(l) (o) No employer shall be considered to have violated subsection
(j) (m) by employing any employee for a work week in excess of that
specified in subsection
(j) (m) without paying the compensation for
overtime employment prescribed therein if the employee is so
employed:
(1) in pursuance of an agreement, made as a result of collective
bargaining by representatives of employees certified as bona fide
by the National Labor Relations Board, which provides that no
employee shall be employed more than one thousand forty (1,040)
hours during any period of twenty-six (26) consecutive weeks; or
(2) in pursuance of an agreement, made as a result of collective
bargaining by representatives of employees certified as bona fide
by the National Labor Relations Board, which provides that
during a specified period of fifty-two (52) consecutive weeks the
employee shall be employed not more than two thousand two
hundred forty (2,240) hours and shall be guaranteed not less than
one thousand eight hundred forty (1,840) hours (or not less than
forty-six (46) weeks at the normal number of hours worked per
week, but not less than thirty (30) hours per week) and not more
than two thousand eighty (2,080) hours of employment for which
the employee shall receive compensation for all hours guaranteed
or worked at rates not less than those applicable under the
agreement to the work performed and for all hours in excess of
the guaranty which are also in excess of the maximum work week
applicable to the employee under subsection
(j) (m) or two
thousand eighty (2,080) in that period at rates not less than one
and one-half (1.5) times the regular rate at which the employee is
employed.
(m) (p) No employer shall be considered to have violated subsection
(j) (m) by employing any employee for a work week in excess of the
maximum work week applicable to the employee under subsection
(j)
(m) if the employee is employed pursuant to a bona fide individual
contract, or pursuant to an agreement made as a result of collective
bargaining by representatives of employees, if the duties of the
employee necessitate irregular hours of work, and the contract or
agreement includes the following:
(1) Specifies a regular rate of pay of not less than the minimum
hourly rate provided in subsections (c), (f), (g), and (h), (i), (j),
and (l) (whichever is applicable) and compensation at not less
than one and one-half (1.5) times that rate for all hours worked in
excess of the maximum work week.
(2) Provides a weekly guaranty of pay for not more than sixty (60)
hours based on the rates so specified.
(n) (q) No employer shall be considered to have violated subsection
(j) (m) by employing any employee for a work week in excess of the
maximum work week applicable to the employee under that subsection
if, pursuant to an agreement or understanding arrived at between the
employer and the employee before performance of the work, the
amount paid to the employee for the number of hours worked by him
the employee in the work week in excess of the maximum work week
applicable to the employee under that subsection:
(1) in the case of an employee employed at piece rates, is
computed at piece rates not less than one and one-half (1.5) times
the bona fide piece rates applicable to the same work when
performed during nonovertime hours;
(2) in the case of an employee performing two (2) or more kinds
of work for which different hourly or piece rates have been
established, is computed at rates not less than one and one-half
(1.5) times those bona fide rates applicable to the same work
when performed during nonovertime hours; or
(3) is computed at a rate not less than one and one-half (1.5) times
the rate established by the agreement or understanding as the
basic rate to be used in computing overtime compensation
thereunder, provided that the rate so established shall be
substantially equivalent to the average hourly earnings of the
employee, exclusive of overtime premiums, in the particular work
over a representative period of time;
and if the employee's average hourly earnings for the work week
exclusive of payments described in this section are not less than the
minimum hourly rate required by applicable law, and extra overtime
compensation is properly computed and paid on other forms of
additional pay required to be included in computing the regular rate.
(o) (r) Extra compensation paid as described in this section shall be
creditable toward overtime compensation payable pursuant to this
section.
(p) (s) No employer shall be considered to have violated subsection
(j) (m) by employing any employee of a retail or service establishment
for a work week in excess of the applicable work week specified
therein, if:
(1) the regular rate of pay of the employee is in excess of one and
one-half (1.5) times the minimum hourly rate applicable to the
employee under section 2 of this chapter; and
(2) more than half of the employee's compensation for a
representative period (not less than one (1) month) represents
commissions on goods or services.
In determining the proportion of compensation representing
commissions, all earnings resulting from the application of a bona fide
commission rate shall be considered commissions on goods or services
without regard to whether the computed commissions exceed the draw
or guarantee.
(q) (t) No employer engaged in the operation of a hospital or an
establishment which is an institution primarily engaged in the care of
the sick, the aged, or the mentally ill or defective who reside on the
premises shall be considered to have violated subsection (j) (m) if,
pursuant to an agreement or understanding arrived at between the
employer and the employee before performance of the work, a work
period of fourteen (14) consecutive days is accepted in lieu of the work
week of seven (7) consecutive days for purposes of overtime
computation and if, for his the employee's employment in excess of
eight (8) hours in any workday and in excess of eighty (80) hours in
that fourteen (14) day period, the employee receives compensation at
a rate not less than one and one-half (1.5) times the regular rate at
which the employee is employed.
(r) (u) No employer shall employ any employee in domestic service
in one (1) or more households for a work week longer than forty (40)
hours unless the employee receives compensation for that employment
in accordance with subsection (j). (m).
(s) (v) In the case of an employee of an employer engaged in the
business of operating a street, a suburban or an interurban electric
railway, or a local trolley or motorbus carrier (regardless of whether or
not the railway or carrier is public or private or operated for profit or
not for profit), in determining the hours of employment of such an
employee to which the rate prescribed by subsection (j) (m) applies,
there shall be excluded the hours the employee was employed in
charter activities by the employer if both of the following apply:
(1) The employee's employment in the charter activities was
pursuant to an agreement or understanding with the employer
arrived at before engaging in that employment.
(2) If employment in the charter activities is not part of the
employee's regular employment.
(t) (w) Any employer may employ any employee for a period or
periods of not more than ten (10) hours in the aggregate in any work
week in excess of the maximum work week specified in subsection
(j)
(m) without paying the compensation for overtime employment
prescribed in subsection
(j), (m), if during that period or periods the
employee is receiving remedial education that:
(1) is provided to employees who lack a high school diploma or
educational attainment at the eighth grade level;
(2) is designed to provide reading and other basic skills at an
eighth grade level or below; and
(3) does not include job specific training.
(u) (x) Subsection
(j) (m) does not apply to an employee of a motion
picture theater.
(v) (y) Subsection
(j) (m) does not apply to an employee of a
seasonal amusement or recreational establishment, an organized camp,
or a religious or nonprofit educational conference center that is exempt
under the federal Fair Labor Standards Act of 1938, as amended (29
U.S.C. 213).
SOURCE: IC 36-1-3.1; (06)IN1399.1.50. -->
SECTION 50. IC 36-1-3.1 IS ADDED TO THE INDIANA CODE
AS A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]:
Chapter 3.1. Cooperative Agreements
Sec. 1. (a) This chapter applies to cities, towns, and counties.
(b) This chapter does not apply to townships.
Sec. 2. (a) The policy of the state is to grant units broad powers
to enable units to operate more efficiently by eliminating
restrictions under existing law that:
(1) impede the efficient operation of; and
(2) inhibit cooperation among;
units.
(b) Encouraging efficiency by and cooperation between units
serves the public purposes of:
(1) reducing reliance on property taxes;
(2) enhancing the ability of units to provide critical and
necessary services; and
(3) strengthening the financial condition of state government.
Sec. 3. (a) This chapter contains full and complete authority for
cooperative agreements between units. Except as provided in this
chapter, no law, procedure, proceedings, publications, notices,
consents, approvals, orders, or acts by a unit or any other officer,
department, agency, or instrumentality of the state or any political
subdivision is required for a unit to enter into a cooperative
agreement with one (1) or more other units under this article.
(b) A unit may exercise the powers granted under this chapter
without complying with the provisions of any other law, statute, or
regulation.
Sec. 4. (a) This chapter shall be liberally construed to effect the
purposes of this chapter.
(b) To the extent the provisions of this chapter are inconsistent
with the provisions of any other general, special, or local law, the
provisions of this chapter are controlling and supersede all other
laws.
(c) This chapter is supplemental to all other laws governing or
regulating units.
Sec. 5. (a) Two (2) or more units may enter into a written
agreement to cooperate in:
(1) the delivery of any local governmental service to residents
of the participating units, including:
(A) public safety;
(B) emergency medical services;
(C) traffic management;
(D) land use regulation;
(E) public health;
(F) recreation;
(G) sanitation, including solid waste collection and
disposal;
(H) business activity regulation;
(I) maintenance of streets, roads, sidewalks, bridges, and
other rights-of-way;
(J) public transportation; and
(K) any other activity that the units determine is necessary
or desirable to provide more efficient local government to
their residents;
(2) the acquisition, financing, construction, renovating, repair,
and equipping of any capital project, local public
improvement, structure, system, or other project for which a
unit is authorized to issue bonds, enter into leases, or to
establish a fund under any statute listed in IC 6-1.1-18.5-9.8;
and
(3) the management, operation, and maintenance of any
capital project, local public improvement, structure, system,
or other project for which a unit is authorized to issue bonds,
enter into leases, or to establish a fund under any statute
listed in IC 6-1.1-18.5-9.8.
(b) The cooperative agreement must contain the following:
(1) A description of the activity to be conducted, the service to
be provided, or the project to be undertaken, managed,
operated, or maintained under the agreement.
(2) The duration of the agreement.
(3) The division of responsibilities for performance of the
agreement by the participating units.
(4) Provisions for altering, amending, and terminating the
agreement.
(5) The funding for all capital and noncapital services to be
provided under the agreement, including any provisions for:
(A) financing projects through bonds, leases, or other
obligations to be issued by one (1) or more of the
participating units; and
(B) the contribution of revenues by participating units.
(c) The cooperative agreement may provide that a unit:
(1) may appropriate and pledge any legally available revenues
to the payment of the bonds, leases, or other obligations of
another unit that is a party to the cooperative agreement; and
(2) will appropriate legally available revenues for any other
payment under the cooperative agreement;
if the unit's fiscal body finds that it is necessary, desirable, and in
the best interests of the residents of that unit.
Sec. 6. (a) Before a unit may enter into a cooperative agreement
under this chapter, the executive of each unit must make a written
recommendation to the unit's fiscal body concerning the proposed
cooperative agreement. The proposed form of cooperative
agreement must be submitted with the recommendation.
(b) The fiscal body of each unit must conduct a public hearing
on the recommendation and proposed cooperative agreement
within thirty (30) days of the receipt of the recommendation from
the executive. Notice of the public hearing, stating the time, date,
and place of the public hearing, must be published one (1) time, in
accordance with IC 5-3-1, at least ten (10) days before the hearing.
(c) At the conclusion of the public hearing, which may be
adjourned from time to time, the fiscal body may adopt a
resolution:
(1) accepting the recommendation of the executive and
approving the execution of the proposed cooperative
agreement;
(2) accepting the recommendation of the executive,
recommending certain modifications to the proposed
agreement and approving the execution of the cooperative
agreement as modified; or
(3) rejecting the recommendation of the executive.
(d) If the fiscal body of one (1) unit recommends modifications
to the proposed agreement, the fiscal body of all other units
participating in the proposed agreement must also approve the
recommendations.
Sec. 7. If the fiscal body adopts a resolution under section 6(c)(1)
or 6(c)(2) of this chapter, the executive shall execute the
cooperative agreement.
Sec. 8. An action to challenge the validity of an agreement under
this chapter must be brought within fifteen (15) days after the
effective date of the resolution of the last unit approving the
agreement.
Sec. 9. If a cooperative agreement under this chapter provides
for the appropriation and pledge of legally available revenues, the
fiscal body shall annually appropriate sufficient legally available
revenues to satisfy the unit's obligation under the agreement.
SOURCE: IC 36-1-7-16; (06)IN1399.1.51. -->
SECTION 51. IC 36-1-7-16 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 16. This chapter is not applicable to a
cooperative agreement entered into under IC 36-1-3.1. However,
the parties to a cooperative agreement under IC 36-1-3.1 may
incorporate any provision of this chapter the parties determine to
be necessary or desirable to accomplish the cooperative agreement.
SOURCE: IC 36-1-8-4; (06)IN1399.1.52. -->
SECTION 52. IC 36-1-8-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 4. (a) The fiscal
body of a political subdivision may, by ordinance or resolution, permit
the transfer of a prescribed amount
for a prescribed period, to a fund in
need of money for cash flow purposes from another fund of the
political subdivision if all these conditions are met:
(1) It must be necessary to
borrow transfer money to enhance the
fund that is in need of money for cash flow purposes.
(2) There must be sufficient money on deposit to the credit of the
other fund that can be temporarily transferred.
(3) Except as provided in
subsection subsections (b)
and (c), the
prescribed period must end during the budget year of the year in
which the transfer occurs.
(4) The amount transferred must be returned to the other fund at
the end of the prescribed period.
(5) Only revenues derived from the levying and collection of
property taxes or special taxes or from operation of the political
subdivision may be included in the amount transferred.
(b) If the fiscal body of a political subdivision determines that an
emergency exists that requires an extension of the a prescribed period
of a transfer under this section, the prescribed period may be extended
for not more than six (6) months beyond the budget year of the year in
which the transfer occurs if the fiscal body does all 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; and
(C) the date the loan transferred funds 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.
(c) If the fiscal body of a political subdivision determines that
the interests of the political subdivision will be best served if the
transferred funds are not repaid, the transferred funds need not be
repaid if the fiscal body does all the following:
(1) Adopts an ordinance or resolution that contains:
(A) a statement that the fiscal body has determined the
interest of the political subdivision will be best served if the
transferred funds are not repaid;
(B) a statement that the fiscal officer has certified that the
transferred funds are:
(i) not in fact needed for the budget from which the
funds were transferred; and
(ii) unobligated and available for transfer; and
(C) a brief description of the basis for the determination.
(2) Immediately forwards the ordinance or resolution to the
department of local government finance.
(d) The political subdivision shall publish a notice one (1) time,
in accordance with IC 5-3-1, of a transfer made under this section.
SOURCE: IC 36-1-8-5; (06)IN1399.1.53. -->
SECTION 53. IC 36-1-8-5, AS AMENDED BY P.L.73-2005,
SECTION 171, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 5. (a) This section applies to all
funds raised by a general or special tax levy on all the taxable property
of a political subdivision.
(b) Whenever the purposes of a tax levy have been fulfilled and an
unused and unencumbered balance remains in the fund, the fiscal body
of the political subdivision shall order the balance of that fund to be
transferred as follows, unless a statute provides that it be transferred
otherwise:
(1) Funds of a county, to the general fund or rainy day fund of the
county, as provided in section 5.1 of this chapter.
(2) Funds of a municipality, to the general fund or rainy day fund
of the municipality, as provided in section 5.1 of this chapter.
(3) Funds of a township for redemption of township assistance
obligations, to the township assistance fund of the township or
rainy day fund of the township, as provided in section 5.1 of this
chapter.
(4) Funds of any other political subdivision, to the general fund or
rainy day fund of the political subdivision, as provided in section
5.1 of this chapter. However, if the political subdivision is
dissolved or does not have a general fund or rainy day fund, then
to the general fund of each of the units located in the political
subdivision in the same proportion that the assessed valuation of
the unit bears to the total assessed valuation of the political
subdivision.
(c) Whenever an unused and unencumbered balance remains in the
civil township fund of a township and a current tax levy 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 to a political subdivision's rainy day fund must may be
made after the last day of at any time during the political subdivision's
fiscal year. and before March 1 of the subsequent calendar year.
SOURCE: IC 36-1-8-5.1; (06)IN1399.1.54. -->
SECTION 54. IC 36-1-8-5.1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5.1. (a) A political
subdivision may establish a rainy day fund by the adoption of:
(1) an ordinance, in the case of a county, city, or town; or
(2) a resolution, in the case of any other political subdivision.
(b) 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) specified in the ordinance or resolution adopted under
this section; and
(ii) not otherwise prohibited by law.
(c) The rainy day fund is subject to the same appropriation process
as other funds that receive tax money.
(d) 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, to the rainy day fund.
(e) (d) 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) (e) 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.
SOURCE: IC 36-1-18; (06)IN1399.1.55. -->
SECTION 55. IC 36-1-18 IS ADDED TO THE INDIANA CODE
AS A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]:
Chapter 18. Interlocal Governmental Service Territories
Sec. 1. This chapter applies to cities, towns, and counties and to
any geographic area that is established as a governmental service
territory.
Sec. 2. As used in this chapter, "participating unit" refers to a
unit that adopts an ordinance under section 6 of this chapter.
Sec. 3. As used in this chapter, "provider unit" refers to the
participating unit that is responsible for providing the services
within the territory.
Sec. 4. As used in this chapter, "territory" refers to a
governmental service territory established under this chapter.
Sec. 5. (a) Subject to subsections (b) and (c), the legislative
bodies of at least two (2) contiguous units may establish a service
territory to provide any government service that these units
determine is necessary, wise, and in the best interest of the
residents of the units.
(b) Not more than one (1) unit within the proposed territory
may be designated as the provider unit for the territory.
(c) The boundaries of a territory need not coincide with those of
other political subdivisions.
Sec. 6. (a) To establish a governmental service territory, the
legislative bodies of each unit desiring to become a part of the
proposed territory must adopt identical ordinances after January
1 but before March 2 authorizing the unit to become a party to an
agreement for the establishment of a governmental service
territory. Before adopting an ordinance under this section, a
legislative body must hold a public hearing to receive public
comment on the proposed ordinance. The legislative body must
give notice of the hearing under IC 5-3-1.
(b) The notice required under this section shall include all the
following:
(1) A list naming the provider unit and all participating units
in the proposed territory.
(2) A description of the service to be provided.
(3) The date, time, and location of the hearing.
(4) The location where the public can inspect the proposed
ordinance.
(5) A statement as to whether the proposed ordinance
requires uniform tax rates or different tax rates within the
territory.
(6) The name and telephone number of a representative of the
unit who may be contacted for further information.
(c) The ordinance adopted under this section must include at
least the following:
(1) The boundaries of the proposed territory.
(2) The identity of the provider unit and all other
participating units desiring to be included within the
territory.
(3) Provisions requiring the parties to:
(A) use local option revenue under IC 6-10;
(B) impose a uniform tax rate upon all the taxable
property within the territory for the governmental
services; or
(C) impose different tax rates for the governmental
services for the units desiring to be included within the
territory, so long as a tax rate applies uniformly to all a
unit's taxable property within the territory.
(4) The agreement, or an executive summary of the
agreement, to establish the territory.
(d) An ordinance adopted under this section takes effect July 1
of the year the ordinance is adopted.
Sec. 7. A property tax levied under this chapter must be levied
at:
(1) a uniform rate upon all taxable property within the
territory; or
(2) different rates for the units included within the territory,
so long as a tax rate applies uniformly to all a unit's taxable
property within the territory.
Sec. 8. (a) Upon the adoption of identical ordinances under
section 6 of this chapter, the provider unit must establish a
governmental service fund from which all expenses of operating
and maintaining the governmental services within the territory,
including repairs, fees, salaries, depreciation on all depreciable
assets, rents, supplies, contingencies, and all other expenses
lawfully incurred within the territory shall be paid. The purposes
described in this subsection are the sole purposes of the fund and
money in the fund may not be used for any other expenses. Except
as allowed in subsections (d) and (e), the provider unit is not
authorized to transfer money out of the fund at any time.
(b) The fund consists of the following:
(1) All receipts from the tax imposed under this section.
(2) Any money transferred to the fund by the provider unit as
authorized under subsection (d).
(c) The provider unit, with the assistance of each of the other
participating units, shall annually budget the necessary money to
meet the expenses of providing the governmental services within
the territory, plus a reasonable operating balance, not to exceed
twenty percent (20%) of the budgeted expenses. After estimating
expenses and receipts of money, the provider unit shall establish
the property tax levy then required to fund the estimated budget.
The amount budgeted under this subsection shall be considered a
part of each of the participating unit's budget.
(d) If the amount levied in a particular year is insufficient to
cover the costs incurred in providing the governmental services
within the territory, the provider unit may transfer from available
sources to the governmental services fund the money needed to
cover those costs. In this case:
(1) the transfers from the local option revenue or the property
tax levy in the following year shall be increased by the amount
needed to cover the shortfall; and
(2) the provider unit is entitled to transfer the amount
described in subdivision (1) from the fund as reimbursement
to the provider unit.
(e) If the amount of local option revenue plus property taxes
levied in a particular year exceed the amount necessary to cover
the costs incurred in providing the governmental services within
the territory, the local option revenue transferred or the property
tax levy in the following year shall be reduced by the amount of
surplus money. All participating units must agree to the amount to
be transferred by adoption of identical ordinances specifying the
amount.
(f) The tax under this section is not subject to the tax levy
limitations imposed on civil taxing units under IC 6-1.1-18.5 for
any unit that is a participating unit in a governmental services
territory.
(g) For purposes of calculating a participating unit's maximum
permissible ad valorem property tax levy for the three (3) calendar
years in which the participating unit levies a tax to support the
territory, the unit's maximum permissible ad valorem property tax
levy for the preceding calendar year under IC 6-1.1-18.5-3(a) STEP
ONE or IC 6-1.1-18.5-3(b) STEP ONE is increased each year by an
amount equal to the difference between the:
(1) amount the unit will have to levy for the ensuing calendar
year in order to fund the unit's share of the governmental
services territory budget as provided in the ordinance making
the unit a participating unit in the territory; and
(2) unit's levy for those governmental services being provided
for the calendar year that immediately precedes the ensuing
calendar year in which the participating unit levies a tax to
support the territory.
Sec. 9. (a) The department of local government finance, when
approving a rate and levy fixed by the provider unit, shall verify
that a duplication of tax levies does not exist within participating
units, so that taxpayers do not bear two (2) levies for the same
service, except as provided by subsection (b) or (c).
(b) A unit that incurred indebtedness before becoming a
participating unit under this chapter for any governmental services
now being provided by the provider unit shall continue to repay
that indebtedness by levies within the boundaries of the unit until
the indebtedness is paid in full.
(c) A unit that agreed to the borrowing of money while a
participating unit under this chapter shall continue to repay the
unit's share of that indebtedness by transferring local option
revenue or imposing a property tax within the boundaries of the
unit until the indebtedness is paid in full.
Sec. 10. Any area that is part of a territory and that is annexed
by a municipality that is not a part of the territory ceases to be a
part of the territory when the municipality begins to provide the
governmental services to the area.
Sec. 11. In the same year that a tax levy is imposed under this
chapter, each respective participating unit's tax levies attributable
to providing the governmental services within the unit shall be
reduced by an amount equal to the amount levied for the
governmental services in the year immediately preceding the year
in which each respective unit became a participating unit.
Sec. 12. (a) If a unit elects to withdraw from a governmental
services territory established under this chapter, the unit must
after January 1 but before March 2 adopt an ordinance providing
for the withdrawal. An ordinance adopted under this section takes
effect July 1 of the year that the ordinance is adopted.
(b) If an ordinance is adopted under subsection (a):
(1) the unit's maximum permissible ad valorem property tax
levy with respect to the governmental services shall be
initially increased by the amount of the particular unit's
previous year levy under this chapter; and
(2) additional increases with respect to the governmental
services levy amounts are subject to the tax levy limitations
under IC 6-1.1-18.5, except for the part of the unit's levy that
is necessary to retire the unit's share of any debt incurred
while the unit was a participating unit.
Sec. 13. (a) This chapter contains full and complete authority for
the establishment of service territories by units. Except as provided
in this chapter, no law, procedure, proceedings, publications,
notices, consents, approvals, orders, or acts by a unit or any other
officer, department, agency, or instrumentality of the state or any
political subdivision is required for a unit to enter into an
agreement with one (1) or more other units under this article.
(b) A unit may exercise the powers granted under this chapter
without complying with the provisions of any other law, statute, or
regulation.
Sec. 14. (a) This chapter shall be liberally construed to effect the
purposes of this chapter.
(b) To the extent the provisions of this chapter are inconsistent
with the provisions of any other general, special, or local law, the
provisions of this chapter are controlling and supersede all other
laws.
(c) This chapter is supplemental to all other laws governing or
regulating units.
Sec. 15. An action to challenge the validity of an agreement
under this chapter must be brought within fifteen (15) days after
the effective date of the ordinance of the last unit approving the
agreement.
SOURCE: IC 6-1.1-21-2.5; (06)IN1399.1.56. -->
SECTION 56. IC 6-1.1-21-2.5 IS REPEALED [EFFECTIVE
JANUARY 1, 2006 (RETROACTIVE)].
SOURCE: ; (06)IN1399.1.57. -->
SECTION 57. P.L.246-2005, SECTION 10, IS AMENDED TO
READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2006
(RETROACTIVE)]: SECTION 10.
DISTRIBUTIONS FOR THE PROPERTY TAX REPLACEMENT
FUND BOARD
Property Tax Replacement Fund (IC 6-1.1-21)
Total Operating Expense 2,028,509, 197
2,028,509, 197
Notwithstanding IC 6-1.1-21, the foregoing appropriations are the
maximum amount that may be distributed. If the amount determined
under IC 6-1.1-21 exceeds the amount appropriated, the board shall
reduce the credit percentages proportionately so that the distributions
equal the appropriation.
SOURCE: ; (06)IN1399.1.58. -->
SECTION 58. [EFFECTIVE JANUARY 1, 2006
(RETROACTIVE)] (a) IC 6-1.1-21-5.7, as added by this act, applies
only to a general reassessment of real property under IC 6-1.1-4-4
that occurs after July 30, 2006.
(b) P.L.246-2005, SECTION 10, as amended by this act, applies
only to distributions to replace revenue lost as the result of
granting credits for property taxes first due and payable after
December 31, 2005.
SOURCE: ; (06)IN1399.1.59. -->
SECTION 59. [EFFECTIVE JANUARY 1, 2006
(RETROACTIVE)] (a) As used in this SECTION, "department"
refers to the department of state revenue established by
IC 6-8.1-2-1.
(b) IC 6-2.5-5-16.5 and IC 6-2.5-5-16.7, both as added by this
act, and IC 6-2.5-7-3, as amended by this act, apply to retail
transactions that occur after March 28, 2006.
(c) IC 6-3.1-31, as added by this act, applies to taxable years
beginning after December 31, 2005.
(d) The department may adopt temporary rules in the manner
provided for the adoption of emergency rules under IC 4-22-2-37.1
to implement any combination of IC 6-2.5-5-16.5, as added by this
act, IC 6-2.5-5-16.7, as added by this act, IC 6-2.5-7-3, as amended
by this act, or IC 6-3.1-31, as added by this act.
(e) A rule adopted under this SECTION expires on the earliest
of the following:
(1) The date a rule is adopted by the department under
IC 4-22-2 that repeals, amends, or supercedes the temporary
rule.
(2) The date another temporary rule is adopted under this
SECTION.
(3) The date specified in the temporary rule.
(4) July 1, 2007.
(f) This SECTION expires July 1, 2007.
SOURCE: ; (06)IN1399.1.60. -->
SECTION 60.
An emergency is declared for this act.