MADAM PRESIDENT:
The Senate Committee on Tax and Fiscal Policy, to which was referred House Bill No. 1001,
has had the same under consideration and begs leave to report the same back to the Senate
with the recommendation that said bill be AMENDED as follows:
Delete the title and insert the following:
A BILL FOR AN ACT concerning taxation and to make an
appropriation.
Delete everything after the enacting clause and insert the following:
the authority at which at least three (3) members of the authority
are physically present at the place where the meeting is conducted.
(b) A member of the authority may participate in a meeting of
the authority by using a means of communication that permits:
(1) all other members participating in the meeting; and
(2) all members of the public physically present at the place
where the meeting is conducted;
to simultaneously communicate with each other during the meeting.
(c) A member who participates in a meeting under subsection
(b) is considered to be present at the meeting.
(d) The memoranda of the meeting prepared under
IC 5-14-1.5-4 must also state the name of each member who:
(1) was physically present at the place where the meeting was
conducted;
(2) participated in the meeting by using a means of
communication described in subsection (b); and
(3) was absent.
Each member who participated in the meeting by using a means of
communication described in subsection (b) must sign the
memoranda of the meeting within sixty (60) days after the date of
the meeting.
a change in legal or equitable title to that lot.
(g) No petition to the department of local government finance is
necessary with respect to an assessment or reassessment made under
this section.
(h) Subject to subsection (i), land in inventory may not be
reassessed until the next assessment date following the earliest of:
(1) the date on which title to the land is transferred by:
(A) the land developer; or
(B) a successor land developer that acquires title to the
land;
to a person that is not a land developer;
(2) the date on which construction of a structure begins on the
land; or
(3) the date on which a building permit is issued for
construction of a building or structure on the land.
(i) Subsection (h) applies regardless of whether the land in
inventory is rezoned while a land developer holds title to the land.
that county as required by the department in order to determine
statewide average assessed values of homesteads under this
subsection. If a county auditor does not provide the information
required by the department under this subsection, the department
may estimate the assessed values of homesteads in that county as
necessary to carry out this subsection. Before August 1 of 2006 and
each year thereafter, the department shall notify each county
auditor of the amount determined under STEP FOUR of this
subsection.
consumer surveys, economic surveys, advertising or promotion, or
research in connection with literacy, history, or similar projects.
(13) "New logistical distribution equipment" means tangible
personal property that:
(A) is installed a deduction applicant installs after June 30,
2004, and on or before the approval deadline determined under
section 9 of this chapter, in an economic revitalization area in
which a deduction for tangible personal property is allowed;
(B) consists of:
(i) racking equipment;
(ii) scanning or coding equipment;
(iii) separators;
(iv) conveyors;
(v) fork lifts or lifting equipment (including "walk behinds");
(vi) transitional moving equipment;
(vii) packaging equipment;
(viii) sorting and picking equipment; or
(ix) software for technology used in logistical distribution;
(C) is used the deduction applicant uses for the storage or
distribution of goods, services, or information; and
(D) before being used as described in clause (C), was the
deduction applicant never used by its owner for any purpose
in Indiana before the installation described in clause (A).
(14) "New information technology equipment" means tangible
personal property that:
(A) is installed a deduction applicant installs after June 30,
2004, and on or before the approval deadline determined under
section 9 of this chapter, in an economic revitalization area in
which a deduction for tangible personal property is allowed;
(B) consists of equipment, including software, used in the
fields of:
(i) information processing;
(ii) office automation;
(iii) telecommunication facilities and networks;
(iv) informatics;
(v) network administration;
(vi) software development; and
petition or remonstrance by:
(A) using students to transport written materials to their
residences or in any way directly involving students in a
school organized promotion of a position; or
(B) including a statement within another communication sent
to the students' residences.
However, this section does not prohibit an employee of the political
subdivision from carrying out duties with respect to a petition or
remonstrance that are part of the normal and regular conduct of the
employee's office or agency.
(b) A person may not solicit or collect signatures for a petition or
remonstrance on property owned or controlled by the political
subdivision.
(c) The staff and employees of a school corporation may not
personally identify a student as the child of a parent or guardian
who supports or opposes a petition or remonstrance.
property taxes first due and payable in the immediately succeeding
calendar year.
(b) (c) An ordinance adopted under this section must specify the
categories of residential property listed in section 4 of this chapter that
are eligible for the credit provided under this chapter.
proceeds under subsection (a) (b) for that calendar year in the amount
by which the property tax collections of the political subdivision in that
calendar year are reduced as a result of the application of the credit
under this chapter for that calendar year.
(c) (d) If the county fiscal officer distributes money to political
subdivisions under subsection (b), (c), the political subdivisions that
receive the distributions shall repay the loan under subsection (a) (b)
over the term of the loan. Each political subdivision that receives a
distribution under subsection (b): (c):
(1) shall:
(A) appropriate for each year in which the loan is to be repaid
an amount sufficient to pay the part of the principal and
interest on the loan attributable to the distribution received by
the political subdivision under subsection (b); (c); and
(B) raise property tax revenue in each year in which the loan is
to be repaid in the amount necessary to meet the appropriation
under clause (A); and
(2) other than the county, shall transfer to the county fiscal officer
money dedicated under this section to repayment of the loan in
time to allow the county to meet the loan repayment schedule.
(d) (e) Property taxes imposed under subsection (c)(1)(B) (d)(1)(B)
are subject to levy limitations under IC 6-1.1-18.5 or IC 6-1.1-19.
(e) (f) The obligation to:
(1) repay; or
(2) contribute to the repayment of;
the loan under subsection (a) (b) is not a basis for a political
subdivision to obtain an excessive tax levy under IC 6-1.1-18.5 or
IC 6-1.1-19.
(f) (g) The application of the credit under this chapter results in a
reduction of the property tax collections of each political subdivision in
which the credit is applied. A political subdivision may not increase its
property tax levy to make up for that reduction.
(h) The county auditor shall in each calendar year notify each
political subdivision in which the credit under this chapter is
applied of the reduction referred to in subsection (b) for the
political subdivision for that year.
subsequent to the filing of an auditor's abstract which change
assessments therein or add assessments of omitted property affecting
taxes for such assessment year.
(g) "Total county tax levy" means the sum of:
(1) the remainder of:
(A) the aggregate levy of all taxes for all taxing units in a
county which are to be paid in the county for a stated
assessment year as reflected by the auditor's abstract for the
assessment year, adjusted, however, for any postabstract
adjustments which change the amount of the aggregate levy;
minus
(B) the sum of any increases in property tax levies of taxing
units of the county that result from appeals described in:
(i) IC 6-1.1-18.5-13(4) and IC 6-1.1-18.5-13(5) filed after
December 31, 1982; plus
(ii) the sum of any increases in property tax levies of taxing
units of the county that result from any other appeals
described in IC 6-1.1-18.5-13 filed after December 31, 1983;
plus
(iii) IC 6-1.1-18.6-3 (children in need of services and
delinquent children who are wards of the county); minus
(C) the total amount of property taxes imposed for the stated
assessment year by the taxing units of the county under the
authority of IC 12-1-11.5 (repealed), IC 12-2-4.5 (repealed),
IC 12-19-5, or IC 12-20-24; minus
(1) the total amount of:
(A) controlled property taxes imposed in the county that
does not exceed the sum of the controlled levy limits of
each political subdivision in the county, as determined
under IC 6-12;
(D) (B) that part of the total amount of property taxes to be
paid during the stated assessment year that will be used to pay
for interest or principal due on debt that:
(i) is entered into after December 31, 1983; before January
1, 1984;
(ii) is not debt that is issued under IC 5-1-5 to refund debt
incurred before January 1, 1984; and or
a school corporation's maximum permissible general fund
levy for certain transfer tuition costs; plus
(viii) an appeal filed under IC 6-1.1-19-5.4 for an increase in
a school corporation's maximum permissible general fund
levy for transportation operating costs; minus
(H) the amount of property taxes imposed by a school
corporation that is attributable to the passage, after 1983, of a
referendum for an excessive tax levy under IC 6-1.1-19,
including any increases in these property taxes that are
attributable to the adjustment set forth in IC 6-1.1-19-1.5 or
any other law; minus
(I) for each township in the county, the lesser of:
(i) the sum of the amount determined in IC 6-1.1-18.5-19(a)
STEP THREE or IC 6-1.1-18.5-19(b) STEP THREE,
whichever is applicable, plus the part, if any, of the
township's ad valorem property tax levy for calendar year
1989 that represents increases in that levy that resulted from
an appeal described in IC 6-1.1-18.5-13(4) filed after
December 31, 1982; or
(ii) the amount of property taxes imposed in the township for
the stated assessment year under the authority of
IC 36-8-13-4; minus
(J) for each participating unit in a fire protection territory
established under IC 36-8-19-1, the amount of property taxes
levied by each participating unit under IC 36-8-19-8 and
IC 36-8-19-8.5 less the maximum levy limit for each of the
participating units that would have otherwise been available for
fire protection services under IC 6-1.1-18.5-3 and
IC 6-1.1-18.5-19 for that same year; minus
(K) for each county, the sum of:
(i) the amount of property taxes imposed in the county for
the repayment of loans under IC 12-19-5-6 (repealed) that is
included in the amount determined under IC 12-19-7-4(a)
STEP SEVEN for property taxes payable in 1995, or for
property taxes payable in each year after 1995, the amount
determined under IC 12-19-7-4(b); and
(ii) the amount of property taxes imposed in the county
attributable to appeals granted under IC 6-1.1-18.6-3 that is
included in the amount determined under IC 12-19-7-4(a)
STEP SEVEN for property taxes payable in 1995, or the
amount determined under IC 12-19-7-4(b) for property taxes
payable in each year after 1995; plus
(2) all taxes to be paid in the county in respect to mobile home
assessments currently assessed for the year in which the taxes
stated in the abstract are to be paid. plus
(3) the amounts, if any, of county adjusted gross income taxes that
were applied by the taxing units in the county as property tax
replacement credits to reduce the individual levies of the taxing
units for the assessment year, as provided in IC 6-3.5-1.1; plus
(4) the amounts, if any, by which the maximum permissible ad
valorem property tax levies of the taxing units of the county were
reduced under IC 6-1.1-18.5-3(b) STEP EIGHT for the stated
assessment year; plus
(5) the difference between:
(A) the amount determined in IC 6-1.1-18.5-3(e) STEP FOUR;
minus
(B) the amount the civil taxing units' levies were increased
because of the reduction in the civil taxing units' base year
certified shares under IC 6-1.1-18.5-3(e).
(h) "December settlement sheet" means the certificate of settlement
filed by the county auditor with the auditor of state, as required under
IC 6-1.1-27-3.
(i) "Tax duplicate" means the roll of property taxes which each
county auditor is required to prepare on or before March 1 of each year
under IC 6-1.1-22-3.
(j) "Eligible property tax replacement amount" is, except as
otherwise provided by law, equal to the sum of the following:
(1) Sixty percent (60%) of the total county tax levy imposed by
each school corporation in a county for its general fund for a stated
assessment year.
(2) The result of:
(A) twenty percent (20%) of the total county tax levy (less
sixty percent (60%) of the levy for the general fund of a school
corporation that is part of the total county tax levy) imposed in
a county on real property for a stated assessment year; minus
(B) twenty percent (20%) of the total county tax levy (less
sixty percent (60%) of the levy for the general fund of a
school corporation that is part of the total county tax levy)
imposed in a county on real property for which a C
corporation is liable for the property taxes for a stated
assessment year.
(3) The following percentage of the total county tax levy (less
sixty percent (60%) of the levy for the general fund of a
school corporation that is part of the total county tax levy)
imposed in a county on real property for which a C
corporation is liable for the property taxes for a stated
assessment year:
(A) For property taxes first due and payable in 2007,
nineteen percent (19%).
(B) For property taxes first due and payable in 2008,
eighteen percent (18%).
(C) For property taxes first due and payable in 2009,
seventeen percent (17%).
(D) For property taxes first due and payable in 2010,
sixteen percent (16%).
(E) For property taxes first due and payable in 2011 and
thereafter, fifteen percent (15%).
(3) (4) Twenty percent (20%) of the total county tax levy (less
sixty percent (60%) of the levy for the general fund of a school
corporation that is part of the total county tax levy) imposed in a
county on tangible personal property, excluding business personal
property, for an assessment year.
(k) "Business personal property" means tangible personal property
(other than real property) that is being:
(1) held for sale in the ordinary course of a trade or business; or
(2) held, used, or consumed in connection with the production of
income.
(l) "Taxpayer's property tax replacement credit amount" means,
except as otherwise provided by law, the sum of the following:
(1) Sixty percent (60%) of a taxpayer's tax liability in a calendar
year for taxes imposed by a school corporation for its general fund
for a stated assessment year.
(2) The result of:
(A) twenty percent (20%) of a taxpayer's tax liability for a
stated assessment year for a total county tax levy (less sixty
percent (60%) of the levy for the general fund of a school
corporation that is part of the total county tax levy) on real
property; minus
(B) twenty percent (20%) of a taxpayer's tax liability for
a stated assessment year for a total county tax levy (less
sixty percent (60%) of the levy for the general fund of a
school corporation that is part of the total county tax levy)
imposed in a county on real property for which a C
corporation is liable for the property taxes for a stated
assessment year.
(3) The following percentage of a taxpayer's tax liability for
a stated assessment year for a total county tax levy (less sixty
percent (60%) of the levy for the general fund of a school
corporation that is part of the total county tax levy) imposed
in a county on real property for which a C corporation is
liable for the property taxes for a stated assessment year:
(A) For property taxes first due and payable in 2007,
nineteen percent (19%).
(B) For property taxes first due and payable in 2008,
eighteen percent (18%).
(C) For property taxes first due and payable in 2009,
seventeen percent (17%).
(D) For property taxes first due and payable in 2010,
sixteen percent (16%).
(E) For property taxes first due and payable in 2011 and
thereafter, fifteen percent (15%).
(3) (4) Twenty percent (20%) of a taxpayer's tax liability for a
stated assessment year for a total county tax levy (less sixty
percent (60%) of the levy for the general fund of a school
corporation that is part of the total county tax levy) on tangible
personal property other than business personal property.
(m) "Tax liability" means tax liability as described in section 5 of
this chapter.
subsection (b). The budget agency shall give notice of its determination
to the members of the board and, in an electronic format under
IC 5-14-6, the general assembly. If the budget agency determines that
the amount determined under subsection (b) will not be exceeded in a
particular year, the board shall increase for that year the percentages
used to determine a taxpayer's property tax replacement credit amount
and the homestead credit percentage applicable under IC 6-1.1-20.9-2
so that the total amount of property tax replacement credits granted in
Indiana under section 5 of this chapter and homestead credits granted
in Indiana under IC 6-1.1-20.9-2 at least equals the amount determined
under subsection (b). In making adjustments under this subsection, the
board shall increase percentages in the following order until the total of
property tax replacement credits granted under section 5 of this chapter
and homestead credits granted under IC 6-1.1-20.9-2 for the year at
least equals the amount determined under subsection (b):
(1) The homestead credit percentage specified in IC 6-1.1-20.9-2
until the homestead percentage reaches the lesser of:
(A) thirty percent (30%); or
(B) the percentage at which the total of property tax
replacement credits granted under section 5 of this chapter and
homestead credits granted under IC 6-1.1-20.9-2 for the year
at least equals the amount determined under subsection (b).
(2) If the amount determined under subsection (b) is not exceeded
after increasing the homestead percentage under subdivision (1),
the board shall increase the property tax replacement credit
percentage specified in section 2(j)(1) and 2(l)(1) of this chapter
until the property tax replacement percentage reaches the lesser of:
(A) seventy percent (70%); or
(B) the percentage at which the total of property tax
replacement credits granted under section 5 of this chapter and
homestead credits granted under IC 6-1.1-20.9-2 for the year,
as adjusted under this subsection, at least equals the amount
determined under subsection (b).
(3) If the amount determined under subsection (b) is not exceeded
after making all possible increases in credit percentages under
subdivisions (1) and (2), the board shall increase the property tax
replacement credit percentages specified in section 2(j)(2), 2(j)(3),
2(j)4), 2(l)(2), and 2(l)(3), and 2(l)(4) of this chapter to the
percentage at the total of property tax replacement credits granted
under section 5 of this chapter and homestead credits granted
under IC 6-1.1-20.9-2 for the year, as adjusted under this
subsection, at least equals the amount determined under
subsection (b).
(d) The adjusted percentages set under subsection (c):
(1) are the percentages that apply under:
(A) section 5 of this chapter to determine a taxpayer's property
tax replacement credit amount; and
(B) IC 6-1.1-20.9-2 to determine a taxpayer's homestead
credit; and
(2) must be used by the:
(A) department in estimating the eligible property tax
replacement amount under section 3 of this chapter; and
(B) department of local government finance in making its
certification under section 3(b) of this chapter;
and for all other purposes under this chapter and IC 6-1.1-20.9
related to distributions under this chapter;
for the particular year covered by a budget agency's determination under
subsection (c).
property of the taxpayer as is evidenced by the tax duplicate for the
taxes payable in that year, plus the amount by which the tax payable by
the taxpayer had been reduced due to the application of county adjusted
gross income tax revenues to the extent the county adjusted gross
income tax revenues were included in the determination of the total
county tax levy for that year, as provided in sections 2(g) and 3 of this
chapter; adjusted, however, for any change in assessed valuation which
may have been made pursuant to a postabstract adjustment if the change
is set forth on the tax statement or on a corrected tax statement stating
the taxpayer's tax liability, as prepared by the county treasurer in
accordance with IC 6-1.1-22-8(a). However, except when using the
term under section 2(l)(1) of this chapter, the tax liability of a taxpayer
does not include the amount of any property tax owed by the taxpayer
that is attributable to that part of any property tax levy subtracted under
section 2(g)(1)(B), 2(g)(1)(C), 2(g)(1)(D), 2(g)(1)(E), 2(g)(1)(F),
2(g)(1)(G), 2(g)(1)(H), 2(g)(1)(I), 2(g)(1)(J), or 2(g)(1)(K) of this
chapter in computing the total county tax levy.
(c) The credit for taxes payable in a particular year with respect to
mobile homes which are assessed under IC 6-1.1-7 is equivalent to the
taxpayer's property tax replacement credit amount for the taxes payable
with respect to the assessments. plus the adjustments stated in this
section.
(d) Each taxpayer in a taxing district that contains all or part of an
economic development district that meets the requirements of section
5.5 of this chapter is entitled to an additional credit for property tax
replacement. This credit is equal to the product of:
(1) the STEP TWO quotient determined under section 4(a)(3) of
this chapter for the taxing district; multiplied by
(2) the taxpayer's taxes levied in the taxing district that are
allocated to a special fund under IC 6-1.1-39-5.
statement of current and delinquent taxes and special assessments;
or
(2) transmit by written, electronic, or other means to a mortgagee
maintaining an escrow account for a person who is liable for any
property taxes or special assessments, as shown on the tax
duplicate or special assessment records a statement of current and
delinquent taxes and special assessments.
(b) The county treasurer may include the following in the statement:
(1) An itemized listing for each property tax levy, including:
(A) the amount of the tax rate;
(B) the entity levying the tax owed; and
(C) the dollar amount of the tax owed.
(2) Information designed to inform the taxpayer or mortgagee
clearly and accurately of the manner in which the taxes billed in
the tax statement are to be used.
A form used and the method by which the statement and information,
if any, are transmitted must be approved by the state board of accounts.
The county treasurer may mail or transmit the statement and
information, if any, one (1) time each year at least fifteen (15) days
before the date on which the first or only installment is due. Whenever
a person's tax liability for a year is due in one (1) installment under
IC 6-1.1-7-7 or section 9 of this chapter, a statement that is mailed must
include the date on which the installment is due and denote the amount
of money to be paid for the installment. Whenever a person's tax
liability is due in two (2) installments, a statement that is mailed must
contain the dates on which the first and second installments are due and
denote the amount of money to be paid for each installment.
(c) All payments of property taxes and special assessments shall be
made to the county treasurer. The county treasurer, when authorized by
the board of county commissioners, may open temporary offices for the
collection of taxes in cities and towns in the county other than the
county seat.
(d) Before July 1, 2004, the department of local government finance
shall designate five (5) counties to participate in a pilot program to
implement the requirements of subsection (e). The department shall
immediately notify the county treasurer, county auditor, and county
assessor in writing of the designation under this subsection. The
legislative body of a county not designated for participation in the pilot
program may adopt an ordinance to implement the requirements of
subsection (e). The legislative body shall submit a copy of the ordinance
to the department of local government finance, which shall monitor the
county's implementation of the requirements of subsection (e) as if the
county were a participant in the pilot program. The requirements of
subsection (e) apply:
(1) only in:
(A) a county designated to participate in a pilot program under
this subsection, for property taxes first due and payable after
December 31, 2004, and before January 1, 2008; or
(B) a county adopting an ordinance under this subsection, for
property taxes first due and payable after December 31, 2003,
or December 31, 2004 (as determined in the ordinance), and
before January 1, 2008; and
(2) in all counties for taxes first due and payable after December
31, 2007.
(e) Subject to subsection (d), regardless of whether a county
treasurer transmits a statement of current and delinquent taxes and
special assessments to a person liable for the taxes under subsection
(a)(1) or to a mortgagee under subsection (a)(2), the county treasurer
shall mail the following information to the last known address of each
person liable for the property taxes or special assessments or to the last
known address of the most recent owner shown in the transfer book.
The county treasurer shall mail the information not later than the date
the county treasurer transmits a statement for the property under
subsection (a)(1) or (a)(2). The county treasurer, county auditor, and
county assessor shall cooperate to generate the information to be
included on the form. The information that must be provided is the
following:
(1) A breakdown showing the total property tax and special
assessment liability and the amount of the taxpayer's liability that
will be distributed to each taxing unit in the county.
(2) A comparison showing any change in the assessed valuation
for the property as compared to the previous year.
(3) A comparison showing any change in the property tax and
special assessment liability for the property as compared to the
previous year. The information required under this subdivision
must identify:
(A) the amount of the taxpayer's liability distributable to each
taxing unit in which the property is located in the current year
and in the previous year; and
(B) the percentage change, if any, in the amount of the
taxpayer's liability distributable to each taxing unit in which
the property is located from the previous year to the current
year.
(4) An explanation of the following:
(A) The homestead credit and all property tax deductions.
(B) The procedure and deadline for filing for the homestead
credit and each deduction.
(C) The procedure that a taxpayer must follow to:
(i) appeal a current assessment; or
(ii) petition for the correction of an error related to the
taxpayer's property tax and special assessment liability.
(D) The forms that must be filed for an appeal or a petition
described in clause (C).
The department of local government finance shall provide the
explanation required by this subdivision to each county treasurer.
(5) A checklist that shows:
(A) the homestead credit and all property tax deductions; and
(B) whether the homestead credit and each property tax
deduction applies in the current statement for the property
transmitted under subsection (a)(1) or (a)(2).
(f) The information required to be mailed under subsection (e) must
be simply and clearly presented and understandable to the average
individual.
(g) A county that incurs:
(1) initial computer programming costs directly related to
implementation of the requirements of subsection (e); or
(2) printing costs directly related to mailing information under
subsection (e);
shall submit an itemized statement of the costs to the department of
local government finance for reimbursement from the state. The
treasurer of state shall pay a claim approved by the department of local
government finance and submitted under this section on a warrant of the
auditor of state. However, the treasurer of state may not pay any
additional claims under this subsection after the total amount of claims
paid reaches fifty thousand dollars ($50,000).
(h) This section expires January 1, 2008.
the date on which the installment is due and denote the amount of
money to be paid for the installment. Whenever a person's tax
liability is due in two (2) installments, a statement that is mailed
must contain the dates on which the first and second installments
are due and denote the amount of money to be paid for each
installment.
(e) All payments of property taxes and special assessments shall
be made to the county treasurer. The county treasurer, when
authorized by the board of county commissioners, may open
temporary offices for the collection of taxes in cities and towns in
the county other than the county seat.
(f) The county treasurer, county auditor, and county assessor
shall cooperate to generate the information to be included in the
statement under subsection (c).
(g) The information to be included in the statement under
subsection (c) must be simply and clearly presented and
understandable to the average individual.
other tangible personal property; and
(3) was acquired by its owner acquires for use as described in
subdivision (2); and
(4) was never before used by its owner for any purpose in Indiana
before the installation described in subdivision (1).
other sources within Indiana include furnishing utility services to
an end user in Indiana for consumption in Indiana, regardless of
whether the:
(1) utility services are delivered through the pipelines,
transmission lines, or other property of another person;
(2) taxpayer providing the utility service is or is not a resident
or a domiciliary of Indiana; or
(3) transaction is subject to a deduction under IC 6-2.3-5-5.
consumed for the purpose for which the utility services
deduction was given.
Sec. 5. A person is entitled to a credit against the utility services
use tax imposed on the retail consumption of utility services equal
to the amount, if any, of utility services use tax paid to another
state. Payment of a general sales tax, purchase tax, or use tax to
another state does not qualify for a credit under this section.
Sec. 6. The person who consumes utility services is personally
liable for the utility services use tax.
Sec. 7. The department shall establish procedures for the
collection of the utility services use tax from users, including
deposit and reporting requirements, deposit dates, and reporting
dates. Failure to comply with the procedures is subject to the
penalties in IC 6-8.1.
Sec. 8. Any seller of utility services may elect to register with the
department to collect utility services use tax on behalf of persons
liable for the utility services use tax imposed under this chapter. A
seller must comply with the collection and reporting procedures
specified by the department only if the seller enters into an
agreement with the department under this section.
Sec. 9. (a) This subsection applies only to a person who receives
utility services from a seller that enters into an agreement under
section 8 of this chapter. The person liable for the utility services
use tax shall pay the tax to the seller from whom the person
purchased the utility services, and the seller shall collect the tax as
an agent for the state, if the seller has departmental permission
from the department to collect the tax.
(b) In all other cases, the person liable for the utility services use
tax shall pay the utility services use tax directly to the department.
Sec. 10. When a seller collects the utility services use tax from
a person, the seller shall, upon request, issue a receipt to that
person for the utility services use tax collected.
Sec. 11. If:
(1) the department assesses the utility services use tax against
a person for the person's retail consumption of utility
services; and
(2) the person has already paid the utility services use tax in
relation to the utility services to a seller permitted to collect
the utility services use tax under section 8 of this chapter;
the person may avoid paying the utility services use tax to the
department if the person can produce a receipt or other written
evidence showing that the person paid the utility services use tax
to the seller.
Sec. 12. (a) An individual who:
(1) is an employee, officer, or member of a corporation,
partnership, or limited liability company; and
(2) has a duty to remit utility services use tax to the
department under an agreement entered into under section 8
of this chapter or under section 9(b) of this chapter by virtue
of the individual's responsibilities within the corporation,
partnership, or limited liability company;
holds those taxes in trust for the state and is personally liable for
the payment of those taxes, plus any penalties and interest
attributable to those taxes, to the state.
(b) If an individual described in subsection (a) knowingly fails
to collect or remit the specified taxes to the state, the individual
commits a Class D felony.
personal property described in this subsection, if:
(1) the state gross retail or use tax has been previously imposed on
the sale or use of that property; or
(2) the ultimate purchaser or recipient of that property would have
been exempt from the state gross retail and use taxes if that
purchaser or recipient had directly purchased the property from the
supplier for addition to the structure or facility.
(d) The use tax is imposed on a person who:
(1) manufactures, fabricates, or assembles tangible personal
property from materials either within or outside Indiana; and
(2) uses, stores, distributes, or consumes tangible personal
property in Indiana.
(d) (e) Notwithstanding any other provision of this section, the use
tax is not imposed on the keeping, retaining, or exercising of any right
or power over tangible personal property, if:
(1) the property is delivered into Indiana by or for the purchaser of
the property;
(2) the property is delivered in Indiana for the sole purpose of
being processed, printed, fabricated, or manufactured into,
attached to, or incorporated into other tangible personal property;
and
(3) the property is subsequently transported out of state for use
solely outside Indiana.
transaction in any of the following transactions:
(1) The power subsidiary or person provides, installs, constructs,
services, or removes tangible personal property which is used in
connection with the furnishing of the services or commodities
listed in subsection (b).
(2) The power subsidiary or person sells the services or
commodities listed in subsection (b) to another public utility or
power subsidiary described in this section or a person described in
section 6 of this chapter.
(3) The power subsidiary or person sells the services or
commodities listed in subsection (b) to a person for use in
manufacturing, mining, production, refining, oil extraction,
mineral extraction, irrigation, agriculture, or horticulture.
However, this exclusion for sales of the services and commodities
only applies if the services are consumed as an essential and
integral part of an integrated process that produces tangible
personal property and those sales are separately metered for the
excepted uses listed in this subdivision, or if those sales are not
separately metered but are predominately used by the purchaser
for the excepted uses listed in this subdivision.
(4) The power subsidiary or person sells the services or
commodities listed in subsection (b) and all the following
conditions are satisfied:
(A) The services or commodities are sold to a business that
after June 30, 2004:
(i) relocates all or part of its operations to a facility; or
(ii) expands all or part of its operations in a facility;
located in a military base (as defined in IC 36-7-30-1(c)), a
military base reuse area established under IC 36-7-30, the part
of an economic development area established under
IC 36-7-14.5-12.5 that is or formerly was a military base (as
defined in IC 36-7-30-1(c)), a military base recovery site
designated under IC 6-3.1-11.5, or a qualified military base
enhancement area established under IC 36-7-34.
(B) The business uses the services or commodities in the
facility described in clause (A) not later than five (5) years after
the operations that are relocated to the facility or expanded in
the facility commence.
(C) The sales of the services or commodities are separately
metered for use by the relocated or expanded operations.
(D) In the case of a business that uses the services or
commodities in a qualified military base enhancement area, the
business must satisfy at least one (1) of the following criteria:
(i) The business is a participant in the technology transfer
program conducted by the qualified military base (as defined
in IC 36-7-34-3).
(ii) The business is a United States Department of Defense
contractor.
(iii) The business and the qualified military base have a
mutually beneficial relationship evidenced by a memorandum
of understanding between the business and the United States
Department of Defense.
However, this subdivision does not apply to a business that
substantially reduces or ceases its operations at another location
in Indiana in order to relocate its operations in an area described
in this subdivision, unless the department determines that the
business had existing operations in the area described in this
subdivision and that the operations relocated to the area are an
expansion of the business's operations in the area.
(5) The power subsidiary or person sells services or
commodities that:
(A) are referred to in subsection (b); and
(B) qualify as home energy (as defined in IC 12-14-11-2);
to a person who acquires the services or commodities after
June 30, 2006, and before July 1, 2007, through a program
administered by the division of family resources under
IC 12-14-11.
program administered by the division of family resources under
IC 12-14-11.
possession of the seller until the full purchase price is paid;
(D) expenses incurred in attempting to collect any debt; and
(E) repossessed property.
(3) The deduction shall be claimed on the return for the period
during which the receivable is written off as uncollectible in the
claimant's books and records and is eligible to be deducted for
federal income tax purposes. For purposes of this subdivision, a
claimant who is not required to file federal income tax returns may
deduct an uncollectible receivable on a return filed for the period
in which the receivable is written off as uncollectible in the
claimant's books and records and would be eligible for a bad debt
deduction for federal income tax purposes if the claimant were
required to file a federal income tax return.
(4) If the amount of uncollectible receivables claimed as a
deduction by a retail merchant for a particular reporting period
exceeds the amount of the retail merchant's taxable sales for that
reporting period, the retail merchant may file a refund claim under
IC 6-8.1-9. However, the deadline for the refund claim shall be
measured from the due date of the return for the reporting period
on which the deduction for the uncollectible receivables could first
be claimed.
(5) If a retail merchant's filing responsibilities have been assumed
by a certified service provider (as defined in IC 6-2.5-11-2), the
certified service provider may claim, on behalf of the retail
merchant, any deduction or refund for uncollectible receivables
provided by this section. The certified service provider must credit
or refund the full amount of any deduction or refund received to
the retail merchant.
(6) For purposes of reporting a payment received on a previously
claimed uncollectible receivable, any payments made on a debt or
account shall be applied first proportionally to the taxable price of
the property and the state gross retail tax or use tax thereon, and
secondly to interest, service charges, and any other charges.
(7) A retail merchant claiming a deduction for an uncollectible
receivable may allocate that receivable among the states that are
members of the streamlined sales and use tax agreement if the
books and records of the retail merchant support that allocation.
gross income of any taxpayer that placed Section 179 property (as
defined in Section 179 of the Internal Revenue Code) in service in
the current taxable year or in an earlier taxable year equal to the
amount of adjusted gross income that would have been computed
had an election for federal income tax purposes not been made for
the year in which the property was placed in service to take
deductions under Section 179 of the Internal Revenue Code in a
total amount exceeding twenty-five thousand dollars ($25,000).
(22) Add an amount equal to the amount that a taxpayer claimed
as a deduction for domestic production activities for the taxable
year under Section 199 of the Internal Revenue Code for federal
income tax purposes.
(b) In the case of corporations, the same as "taxable income" (as
defined in Section 63 of the Internal Revenue Code) adjusted as follows:
(1) Subtract income that is exempt from taxation under this article
by the Constitution and statutes of the United States.
(2) Add an amount equal to any deduction or deductions allowed
or allowable pursuant to Section 170 of the Internal Revenue
Code.
(3) Add an amount equal to any deduction or deductions allowed
or allowable pursuant to Section 63 of the Internal Revenue Code
for taxes based on or measured by income and levied at the state
level by any state of the United States.
(4) Subtract an amount equal to the amount included in the
corporation's taxable income under Section 78 of the Internal
Revenue Code.
(5) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that owns property for which bonus
depreciation was allowed in the current taxable year or in an
earlier taxable year equal to the amount of adjusted gross income
that would have been computed had an election not been made
under Section 168(k) of the Internal Revenue Code to apply bonus
depreciation to the property in the year that it was placed in
service.
(6) Add an amount equal to any deduction allowed under Section
172 of the Internal Revenue Code.
(7) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that placed Section 179 property (as
defined in Section 179 of the Internal Revenue Code) in service in
the current taxable year or in an earlier taxable year equal to the
amount of adjusted gross income that would have been computed
had an election for federal income tax purposes not been made for
the year in which the property was placed in service to take
deductions under Section 179 of the Internal Revenue Code in a
total amount exceeding twenty-five thousand dollars ($25,000).
(8) Add an amount equal to the amount that a taxpayer claimed as
a deduction for domestic production activities for the taxable year
under Section 199 of the Internal Revenue Code for federal income
tax purposes.
(9) Add to the extent required by IC 6-3-2-20 the amount of
intangible expenses (as defined in IC 6-3-2-20) and any
directly related intangible interest expenses (as defined in
IC 6-3-2-20) for the taxable year that reduced the
corporation's taxable income (as defined in Section 63 of the
Internal Revenue Code) for federal income tax purposes.
(c) In the case of life insurance companies (as defined in Section
816(a) of the Internal Revenue Code) that are organized under Indiana
law, the same as "life insurance company taxable income" (as defined
in Section 801 of the Internal Revenue Code), adjusted as follows:
(1) Subtract income that is exempt from taxation under this article
by the Constitution and statutes of the United States.
(2) Add an amount equal to any deduction allowed or allowable
under Section 170 of the Internal Revenue Code.
(3) Add an amount equal to a deduction allowed or allowable
under Section 805 or Section 831(c) of the Internal Revenue Code
for taxes based on or measured by income and levied at the state
level by any state.
(4) Subtract an amount equal to the amount included in the
company's taxable income under Section 78 of the Internal
Revenue Code.
(5) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that owns property for which bonus
depreciation was allowed in the current taxable year or in an
earlier taxable year equal to the amount of adjusted gross income
that would have been computed had an election not been made
under Section 168(k) of the Internal Revenue Code to apply bonus
depreciation to the property in the year that it was placed in
service.
(6) Add an amount equal to any deduction allowed under Section
172 or Section 810 of the Internal Revenue Code.
(7) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that placed Section 179 property (as
defined in Section 179 of the Internal Revenue Code) in service in
the current taxable year or in an earlier taxable year equal to the
amount of adjusted gross income that would have been computed
had an election for federal income tax purposes not been made for
the year in which the property was placed in service to take
deductions under Section 179 of the Internal Revenue Code in a
total amount exceeding twenty-five thousand dollars ($25,000).
(8) Add an amount equal to the amount that a taxpayer claimed as
a deduction for domestic production activities for the taxable year
under Section 199 of the Internal Revenue Code for federal income
tax purposes.
(d) In the case of insurance companies subject to tax under Section
831 of the Internal Revenue Code and organized under Indiana law, the
same as "taxable income" (as defined in Section 832 of the Internal
Revenue Code), adjusted as follows:
(1) Subtract income that is exempt from taxation under this article
by the Constitution and statutes of the United States.
(2) Add an amount equal to any deduction allowed or allowable
under Section 170 of the Internal Revenue Code.
(3) Add an amount equal to a deduction allowed or allowable
under Section 805 or Section 831(c) of the Internal Revenue Code
for taxes based on or measured by income and levied at the state
level by any state.
(4) Subtract an amount equal to the amount included in the
company's taxable income under Section 78 of the Internal
Revenue Code.
(5) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that owns property for which bonus
depreciation was allowed in the current taxable year or in an
earlier taxable year equal to the amount of adjusted gross income
that would have been computed had an election not been made
under Section 168(k) of the Internal Revenue Code to apply bonus
depreciation to the property in the year that it was placed in
service.
(6) Add an amount equal to any deduction allowed under Section
172 of the Internal Revenue Code.
(7) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that placed Section 179 property (as
defined in Section 179 of the Internal Revenue Code) in service in
the current taxable year or in an earlier taxable year equal to the
amount of adjusted gross income that would have been computed
had an election for federal income tax purposes not been made for
the year in which the property was placed in service to take
deductions under Section 179 of the Internal Revenue Code in a
total amount exceeding twenty-five thousand dollars ($25,000).
(8) Add an amount equal to the amount that a taxpayer claimed as
a deduction for domestic production activities for the taxable year
under Section 199 of the Internal Revenue Code for federal income
tax purposes.
(e) In the case of trusts and estates, "taxable income" (as defined for
trusts and estates in Section 641(b) of the Internal Revenue Code)
adjusted as follows:
(1) Subtract income that is exempt from taxation under this article
by the Constitution and statutes of the United States.
(2) Subtract an amount equal to the amount of a September 11
terrorist attack settlement payment included in the federal adjusted
gross income of the estate of a victim of the September 11 terrorist
attack or a trust to the extent the trust benefits a victim of the
September 11 terrorist attack.
(3) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that owns property for which bonus
depreciation was allowed in the current taxable year or in an
earlier taxable year equal to the amount of adjusted gross income
that would have been computed had an election not been made
under Section 168(k) of the Internal Revenue Code to apply bonus
depreciation to the property in the year that it was placed in
service.
(4) Add an amount equal to any deduction allowed under Section
172 of the Internal Revenue Code.
(5) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that placed Section 179 property (as
defined in Section 179 of the Internal Revenue Code) in service in
the current taxable year or in an earlier taxable year equal to the
amount of adjusted gross income that would have been computed
had an election for federal income tax purposes not been made for
the year in which the property was placed in service to take
deductions under Section 179 of the Internal Revenue Code in a
total amount exceeding twenty-five thousand dollars ($25,000).
(6) Add an amount equal to the amount that a taxpayer claimed as
a deduction for domestic production activities for the taxable year
under Section 199 of the Internal Revenue Code for federal income
tax purposes.
(f) This subsection applies only to the extent that an individual paid
property taxes in 2004 that were imposed for the March 1, 2002,
assessment date or the January 15, 2003, assessment date. The
maximum amount of the deduction under subsection (a)(17) is equal to
the amount determined under STEP FIVE of the following formula:
STEP ONE: Determine the amount of property taxes that the
taxpayer paid after December 31, 2003, in the taxable year for
property taxes imposed for the March 1, 2002, assessment date
and the January 15, 2003, assessment date.
STEP TWO: Determine the amount of property taxes that the
taxpayer paid in the taxable year for the March 1, 2003,
assessment date and the January 15, 2004, assessment date.
STEP THREE: Determine the result of the STEP ONE amount
divided by the STEP TWO amount.
STEP FOUR: Multiply the STEP THREE amount by two
thousand five hundred dollars ($2,500).
STEP FIVE: Determine the sum of the STEP FOUR amount and
two thousand five hundred dollars ($2,500).
from sources within Indiana", for the purposes of this article, shall mean
and include:
(1) income from real or tangible personal property located in this
state;
(2) income from doing business in this state;
(3) income from a trade or profession conducted in this state;
(4) compensation for labor or services rendered within this state;
and
(5) income from stocks, bonds, notes, bank deposits, patents,
copyrights, secret processes and formulas, good will, trademarks,
trade brands, franchises, and other intangible personal property if
the receipt from the intangible is attributable to Indiana under
section 2.2 of this chapter.
In the case of nonbusiness income described in subsection (g), only so
much of such income as is allocated to this state under the provisions of
subsections (h) through (k) shall be deemed to be derived from sources
within Indiana. In the case of business income, only so much of such
income as is apportioned to this state under the provision of subsection
(b) shall be deemed to be derived from sources within the state of
Indiana. In the case of compensation of a team member (as defined in
section 2.7 of this chapter) only the portion of income determined to be
Indiana income under section 2.7 of this chapter is considered derived
from sources within Indiana. In the case of a corporation that is a life
insurance company (as defined in Section 816(a) of the Internal
Revenue Code) or an insurance company that is subject to tax under
Section 831 of the Internal Revenue Code, only so much of the income
as is apportioned to Indiana under subsection (r) is considered derived
from sources within Indiana.
(b) Except as provided in subsection (l), if business income of a
corporation or a nonresident person is derived from sources within the
state of Indiana and from sources without the state of Indiana, then the
business income derived from sources within this state shall be
determined by multiplying the business income derived from sources
both within and without the state of Indiana by a fraction the numerator
of which is the property factor plus the payroll factor plus the sales
factor, and the denominator of which is three (3). However, after a
period of two (2) consecutive quarters of income growth and one (1)
additional quarter (regardless of any income growth), the fraction shall
be computed as follows: the following:
(1) For all taxable years that begin within the first calendar year
immediately following the period, after December 31, 2006, and
before January 1, 2008, a fraction. The:
(A) numerator of the fraction is the sum of the property factor
plus the payroll factor plus one hundred thirty-three percent
(133%) the product of the sales factor multiplied by three
(3); and the
(B) denominator of the fraction is three and thirty-three
hundredths (3.33). five (5).
(2) For all taxable years that begin within the second calendar year
following the period, after December 31, 2007, and before
January 1, 2009, a fraction. The:
(A) numerator of the fraction is the property factor plus the
payroll factor plus one hundred sixty-seven percent (167%) the
product of the sales factor multiplied by four and
sixty-seven hundredths (4.67); and the
(B) denominator of the fraction is three six and sixty-seven
hundredths (3.67). (6.67).
(3) For all taxable years beginning on or after January 1 of the
third calendar year following the period, December 31, 2008, and
before January 1, 2010, a fraction. The:
(A) numerator of the fraction is the property factor plus the
payroll factor plus two hundred percent (200%) the product
of the sales factor multiplied by eight (8); and the
(B) denominator of the fraction is four (4). ten (10).
(4) For all taxable years beginning after December 31, 2009,
and before January 1, 2011, a fraction. The:
(A) numerator of the fraction is the property factor plus
the payroll factor plus the product of the sales factor
multiplied by eighteen (18); and
(B) denominator of the fraction is twenty (20).
(5) For all taxable years beginning after December 31, 2010,
the sales factor.
For purposes of this subsection, income growth occurs when the state's
nonfarm personal income for a calendar quarter increases in comparison
with the state's nonfarm personal income for the immediately preceding
quarter at an annualized compound rate of five percent (5%) or more,
as determined by the budget agency based on current dollar figures
provided by the Bureau of Economic Analysis of the United States
Department of Commerce or its successor agency. The annualized
compound rate shall be computed in accordance with the formula
(1+N)4-1, where N equals the percentage change in the state's current
dollar nonfarm personal income from one (1) quarter to the next. As
soon as possible after two (2) consecutive quarters of income growth,
the budget agency shall advise the department of the growth.
(c) The property factor is a fraction, the numerator of which is the
average value of the taxpayer's real and tangible personal property
owned or rented and used in this state during the taxable year and the
denominator of which is the average value of all the taxpayer's real and
tangible personal property owned or rented and used during the taxable
year. However, with respect to a foreign corporation, the denominator
does not include the average value of real or tangible personal property
owned or rented and used in a place that is outside the United States.
Property owned by the taxpayer is valued at its original cost. Property
rented by the taxpayer is valued at eight (8) times the net annual rental
rate. Net annual rental rate is the annual rental rate paid by the taxpayer
less any annual rental rate received by the taxpayer from subrentals. The
average of property shall be determined by averaging the values at the
beginning and ending of the taxable year, but the department may
require the averaging of monthly values during the taxable year if
reasonably required to reflect properly the average value of the
taxpayer's property.
(d) The payroll factor is a fraction, the numerator of which is the
total amount paid in this state during the taxable year by the taxpayer
for compensation, and the denominator of which is the total
compensation paid everywhere during the taxable year. However, with
respect to a foreign corporation, the denominator does not include
compensation paid in a place that is outside the United States.
Compensation is paid in this state if:
(1) the individual's service is performed entirely within the state;
(2) the individual's service is performed both within and without
this state, but the service performed without this state is incidental
to the individual's service within this state; or
(3) some of the service is performed in this state and:
(A) the base of operations or, if there is no base of operations,
the place from which the service is directed or controlled is in
this state; or
(B) the base of operations or the place from which the service
is directed or controlled is not in any state in which some part
of the service is performed, but the individual is a resident of
this state.
(e) The sales factor is a fraction, the numerator of which is the total
sales of the taxpayer in this state during the taxable year, and the
denominator of which is the total sales of the taxpayer everywhere
during the taxable year. Sales include receipts from intangible property
and receipts from the sale or exchange of intangible property. However,
with respect to a foreign corporation, the denominator does not include
sales made in a place that is outside the United States. Receipts from
intangible personal property are derived from sources within Indiana if
the receipts from the intangible personal property are attributable to
Indiana under section 2.2 of this chapter. Regardless of the f.o.b. point
or other conditions of the sale, sales of tangible personal property are
in this state if:
(1) the property is delivered or shipped to a purchaser who is
within Indiana, other than the United States government; within
this state, regardless of the f.o.b. point or other conditions of the
sale; or
(2) the property is shipped from an office, a store, a warehouse, a
factory, or other place of storage in this state and:
(A) the purchaser is the United States government; or
(B) the taxpayer is not taxable in the state of the purchaser.
Gross receipts derived from commercial printing as described in
IC 6-2.5-1-10 shall be treated as sales of tangible personal property for
purposes of this chapter.
(f) Sales, other than receipts from intangible property covered by
subsection (e) and sales of tangible personal property, are in this state
if:
(1) the income-producing activity is performed in this state; or
interests, the department shall distribute, apportion, or allocate the
income derived from sources within the state of Indiana between and
among those organizations, trades, or businesses in order to fairly
reflect and report the income derived from sources within the state of
Indiana by various taxpayers.
(n) For purposes of allocation and apportionment of income under
this article, a taxpayer is taxable in another state if:
(1) in that state the taxpayer is subject to a net income tax, a
franchise tax measured by net income, a franchise tax for the
privilege of doing business, or a corporate stock tax; or
(2) that state has jurisdiction to subject the taxpayer to a net
income tax regardless of whether, in fact, the state does or does
not.
(o) Notwithstanding subsections (l) and (m), the department may
not, under any circumstances, require that income, deductions, and
credits attributable to a taxpayer and another entity be reported in a
combined income tax return for any taxable year, if the other entity is:
(1) a foreign corporation; or
(2) a corporation that is classified as a foreign operating
corporation for the taxable year by section 2.4 of this chapter.
(p) Notwithstanding subsections (l) and (m), the department may not
require that income, deductions, and credits attributable to a taxpayer
and another entity not described in subsection (o)(1) or (o)(2) be
reported in a combined income tax return for any taxable year, unless
the department is unable to fairly reflect the taxpayer's adjusted gross
income for the taxable year through use of other powers granted to the
department by subsections (l) and (m).
(q) Notwithstanding subsections (o) and (p), one (1) or more
taxpayers may petition the department under subsection (l) for
permission to file a combined income tax return for a taxable year. The
petition to file a combined income tax return must be completed and
filed with the department not more than thirty (30) days after the end of
the taxpayer's taxable year. A taxpayer filing a combined income tax
return must petition the department within thirty (30) days after
the end of the taxpayer's taxable year to discontinue filing a
combined income tax return.
(r) This subsection applies to a corporation that is a life insurance
company (as defined in Section 816(a) of the Internal Revenue Code)
or an insurance company that is subject to tax under Section 831 of the
Internal Revenue Code. The corporation's adjusted gross income that is
derived from sources within Indiana is determined by multiplying the
corporation's adjusted gross income by a fraction:
(1) the numerator of which is the direct premiums and annuity
considerations received during the taxable year for insurance upon
property or risks in the state; and
(2) the denominator of which is the direct premiums and annuity
considerations received during the taxable year for insurance upon
property or risks everywhere.
The term "direct premiums and annuity considerations" means the gross
premiums received from direct business as reported in the corporation's
annual statement filed with the department of insurance.
States and would be a member of the same affiliated group as
the taxpayer if the corporation were organized under the laws
of the United States.
(4) "Intangible expenses" means the following amounts to the
extent these amounts are allowed as deductions in
determining taxable income under Section 63 of the Internal
Revenue Code before the application of any net operating loss
deduction and special deductions for the taxable year:
(A) Expenses, losses, and costs directly for, related to, or
in connection with the acquisition, use, maintenance,
management, ownership, sale, exchange, or any other
disposition of intangible property.
(B) Royalty, patent, technical, and copyright fees.
(C) Licensing fees.
(D) Other substantially similar expenses and costs.
(5) "Intangible property" means patents, patent applications,
trade names, trademarks, service marks, copyrights, trade
secrets, and substantially similar types of intangible assets.
(6) "Interest expenses" means amounts that are allowed as
deductions under Section 163 of the Internal Revenue Code in
determining taxable income under Section 63 of the Internal
Revenue Code before the application of any net operating loss
deductions and special deductions for the taxable year.
(7) "Makes a disclosure" means a taxpayer provides the
following information regarding a transaction with a member
of the same affiliated group or a foreign corporation involving
an intangible expense and any directly related intangible
interest expense with the taxpayer's tax return on the forms
prescribed by the department:
(A) The name of the recipient.
(B) The state or country of domicile of the recipient.
(C) The amount paid to the recipient.
(D) A copy of federal Form 851, Affiliation Schedule, as
filed with the taxpayer's federal consolidated tax return.
(E) The information needed to determine the taxpayer's
status under the exceptions listed in subsection (c).
(8) "Recipient" means:
between the taxpayer and the recipient did not have
Indiana tax avoidance as a principal purpose; and
(C) the transactions were made at a commercially
reasonable rate and at terms comparable to an arm's
length transaction.
(7) The taxpayer makes a disclosure and, at the request of the
department, can establish by a preponderance of the evidence
that:
(A) the recipient paid, accrued, or incurred a liability to an
unrelated party during the taxable year for an equal or
greater amount that was directly for, related to, or in
connection with the same intangible property giving rise to
the intangible expenses; and
(B) the transactions giving rise to the intangible expenses
and any directly related intangible interest expenses
between the taxpayer and the recipient did not have
Indiana tax avoidance as a principal purpose.
estimated tax as provided in Section 6654 of the Internal Revenue
Code, there shall be added to the tax a penalty in an amount prescribed
by IC 6-8.1-10-2.1(b).
(d) Every corporation subject to the adjusted gross income tax
liability imposed by this article shall be required to report and pay an
estimated tax equal to twenty-five percent (25%) of such corporation's
estimated adjusted gross income tax liability for the taxable year. A
taxpayer who uses a taxable year that ends on December 31 shall file
the taxpayer's estimated adjusted gross income tax returns and pay the
tax to the department on or before April 20, June 20, September 20, and
December 20 of the taxable year. If a taxpayer uses a taxable year that
does not end on December 31, the due dates for filing estimated
adjusted gross income tax returns and paying the tax are on or before
the twentieth day of the fourth, sixth, ninth, and twelfth months of the
taxpayer's taxable year. The department shall prescribe the manner and
forms for such reporting and payment.
(e) The penalty prescribed by IC 6-8.1-10-2.1(b) shall be assessed
by the department on corporations failing to make payments as required
in subsection (d) or (g). However, no penalty shall be assessed as to any
estimated payments of adjusted gross income tax which equal or
exceed:
(1) twenty percent (20%) of the final tax liability for such taxable
year; or
(2) twenty-five percent (25%) of the final tax liability for the
taxpayer's previous taxable year.
In addition, the penalty as to any underpayment of tax on an estimated
return shall only be assessed on the difference between the actual
amount paid by the corporation on such estimated return and
twenty-five percent (25%) of the corporation's final adjusted gross
income tax liability for such taxable year.
(f) The provisions of subsection (d) requiring the reporting and
estimated payment of adjusted gross income tax shall be applicable only
to corporations having an adjusted gross income tax liability which,
after application of the credit allowed by IC 6-3-3-2 (repealed), shall
exceed one thousand dollars ($1,000) for its taxable year.
(g) If the department determines that a corporation's:
(1) estimated quarterly adjusted gross income tax liability for the
current year; or
(2) average estimated quarterly adjusted gross income tax liability
for the preceding year;
exceeds, before January 1, 1998, twenty thousand dollars ($20,000),
and, after December 31, 1997, ten thousand dollars ($10,000), after the
credit allowed by IC 6-3-3-2 (repealed), the corporation shall pay the
estimated adjusted gross income taxes due by electronic funds transfer
(as defined in IC 4-8.1-2-7) or by delivering in person or overnight by
courier a payment by cashier's check, certified check, or money order to
the department. The transfer or payment shall be made on or before the
date the tax is due.
(h) Subject to subsection (i), if a corporation's adjusted gross
income tax payment is made by electronic funds transfer, the
corporation is not required to file an estimated adjusted gross income
tax return.
(i) The reports required by the department to administer the
county income tax under IC 6-11-11 shall be filed on the schedule
determined by the department.
report and remit the sales and withholding taxes due within twenty (20)
days after the end of each month.
(d) If the department determines that an entity's:
(1) estimated monthly withholding tax remittance for the current
year; or
(2) average monthly withholding tax remittance for the preceding
year;
exceeds ten thousand dollars ($10,000), the entity shall remit the
monthly withholding taxes due by electronic fund transfer (as defined
in IC 4-8.1-2-7) or by delivering in person or by overnight courier a
payment by cashier's check, certified check, or money order to the
department. The transfer or payment shall be made on or before the date
the remittance is due.
(e) Subject to subsection (f), if an entity's withholding tax
remittance is made by electronic fund transfer, the entity is not required
to file a monthly withholding tax return.
(f) The reports required by the department to administer the
county income tax under IC 6-11-11 shall be filed on the schedule
determined by the department.
logistical distribution facilities;
(6) costs associated with retooling existing machinery and
equipment;
(7) costs associated with the construction of special purpose
buildings and foundations for use in the computer, software,
biological sciences, or telecommunications industry; and
(8) costs associated with the purchase before January 1, 2008, of
machinery, equipment, or special purpose buildings used to make
motion pictures or audio productions;
that are certified by the corporation under this chapter as being eligible
for the credit under this chapter.
(b) The term does not include property that can be readily moved
outside Indiana.
may impose the county adjusted gross income tax at a rate of one and
one-tenth percent (1.1%) on adjusted gross income for fiscal years
beginning before July 1, 2011. However, a county may impose the
county adjusted gross income tax at a rate of one and one-tenth percent
(1.1%) for only eight (8) years. For fiscal years beginning after the
county has imposed the county adjusted gross income tax at a rate of
one and one-tenth percent (1.1%) for eight (8) years June 30, 2011, the
rate is reduced to one percent (1%). If the county council imposes the
county adjusted gross income tax at a rate of one and one-tenth percent
(1.1%), the county council may decrease the rate or rescind the tax in
the manner provided under this chapter.
(d) (e) If a county imposes the county adjusted gross income tax at
a rate of one and one-tenth percent (1.1%) under this section, the
revenue derived from a tax rate of one-tenth percent (0.1%) on adjusted
gross income:
(1) shall be paid to the county treasurer;
(2) may be used only to pay the costs of operating a jail and
juvenile detention center opened after July 1, 1998; and
(3) may not be considered by the department of local government
finance in determining the county's maximum permissible property
tax levy limit under IC 6-1.1-18.5.
finance in determining the county's maximum permissible property
tax levy limit under IC 6-1.1-18.5; and
(3) may be pledged to the repayment of bonds issued or leases
entered into for any or all the purposes described in subsection (b).
(g) Notwithstanding any other law, funds accumulated from the
county adjusted gross income tax imposed under this section after:
(1) the completion of the financing, construction, acquisition,
improvement, renovation, and equipping, operation, and
maintenance described in subsection (b);
(2) the payment or provision for payment of all the costs for
activities described in subdivision (1);
(3) the redemption of bonds issued; and
(4) the final payment of lease rentals due under a lease entered into
under this section;
shall be transferred to the county highway fund to be used for
construction, resurfacing, restoration, and rehabilitation of county
highways, roads, and bridges.
(h) In Jasper County, the additional county adjusted gross
income tax revenue may be used only to operate or maintain:
(1) jail facilities;
(2) juvenile court, detention, and probation facilities;
(3) other criminal justice facilities; and
(4) related buildings and parking facilities;
located in the county.
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 county
income tax (IC 6-11); 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); the various food and beverage taxes (IC 6-9); the county
admissions tax (IC 6-9-13 and IC 6-9-28); 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.
more persons in the county to collect the tax imposed under section
2 of this chapter. A designee may retain a fee from the tax collected
for each dog in an amount determined by the fiscal body not to
exceed seventy-five cents ($0.75). A designee shall remit the
balance of the money collected to the county treasurer by the tenth
day of each month.
Sec. 5. (a) If a county fiscal body adopts an ordinance under
section 2 of this chapter, the county treasurer shall establish a
county option dog tax fund.
(b) At the time a county option dog tax fund is established under
subsection (a), the county treasurer shall establish a canine
research account within the county option dog tax fund.
(c) Interest and investment income derived from money in a
county option dog tax fund becomes part of the county option dog
tax fund.
(d) Money in a county's county option dog tax fund at the end
of a calendar year does not revert to the county's general fund.
Sec. 6. (a) A county treasurer that receives county option dog
tax revenue under section 4 of this chapter shall deposit the money
in the county option dog tax fund according to the following
allocation:
(1) Twenty percent (20%) for the canine research account.
(2) Eighty percent (80%) for the uses designated by the fiscal
body of the county under subsection (c).
(b) If an ordinance adopted under section 2 of this chapter is in
effect in a county, the county auditor shall issue a warrant to the
treasurer of state for the amount of money accumulated in the
canine research account on or before each of the following dates:
(1) January 31.
(2) April 30.
(3) July 31.
(4) October 31.
If an ordinance adopted under section 2 of this chapter is rescinded
under section 3 of this chapter, the county auditor shall issue a
warrant to the auditor of state for the amount of money
accumulated in the canine research account within ninety (90) days
after the date on which the ordinance is rescinded.
dollars ($2) per year for each dog that a person harbors or keeps
in or near the person's premises in the municipality, regardless of
who owns the dog. The person who harbors or keeps the dog is
liable for the tax.
(c) The fiscal body of a municipality that imposes a tax under
subsection (a) shall determine the manner in which the tax is to be
collected. The tax may be expended for any lawful purpose of the
municipality.
(d) A tax imposed under this section is in addition to a tax
imposed under section 2 of this chapter.
of controlled property taxes that are eligible for a state distribution
under IC 6-1.1-21 to replace revenue lost from the granting of
homestead credits under IC 6-1.1-20.9 and property tax
replacement credits under IC 6-1.1-21-5.
Sec. 8. "Controlled tax limit" refers to the maximum total
combination of controlled property taxes and controlled income
taxes that may be imposed in a county in a year for a political
subdivision, as determined under IC 6-12.
Sec. 9. "Council" refers to the county income tax council
established in a county under IC 6-11-3.
Sec. 10. "County's total allowable tax increase amounts" refers
to the sum of the annual controlled tax increases allowed in a
county for each year after 2006.
Sec. 11. "Department" refers to the department of local
government finance.
Sec. 12. "Eligible civil taxing unit" refers to a political
subdivision eligible for a distribution of excluded taxes imposed
under IC 6-11-8.
Sec. 13. "Excluded taxes" refers to any part of a:
(1) property tax levy or property tax rate; or
(2) county income tax or county income tax rate;
that is not subject to the limitations imposed under IC 6-12.
Sec. 14. "Imposed" refers to:
(1) with respect to a property tax, the year in which the
property tax is first due and payable (or would be first due
and payable if the statement for the property taxes had been
mailed before the date specified in IC 6-1.1-22-8); and
(2) with respect to an income tax, the year in which the tax is
imposed on adjusted gross income regardless of when the tax
is due.
Sec. 15. "Out-of-state resident", as it relates to a particular
county, means an individual who:
(1) is not a resident of the county on the date specified in
IC 6-11-4;
(2) maintains the individual's principal place of business or
employment in the county on the date specified in IC 6-11-4;
and
part in the county is allocated a percentage of a total of one
hundred (100) votes that may be cast. Each school corporation that
is located in any part in the county is allocated a percentage of a
total of fifty (50) votes that may be cast.
(b) Subject to subsection (d), the percentage of votes that a city
or town is allocated for a year equals the same percentage that the
population of the city or town bears to the population of the
county. In the case of a city or town that lies within more than one
(1) county, the county auditor of each county shall base the
allocations required by subsection (a) on the population of that
part of the city or town that lies within the county for which the
allocations are being made.
(c) Subject to subsection (d), the percentage that the county is
allocated for a year equals the same percentage that the population
of all areas in the county not located in a city or town bears to the
population of the county.
(d) In the case of Marion County, the county, the consolidated
city, all included towns (as described in IC 36-3-1-7), and the
remainder of the county that is not in an excluded city (as
described in IC 36-3-1-7) shall be treated as one (1) political
subdivision whose fiscal body is the fiscal body of the consolidated
city.
(e) The percentage of votes that a school corporation is
allocated for a year equals the same percentage that the population
of the school corporation in the county has to the total population
of the county.
(f) On or before January 1 of each year (or in 2006, before July
2), the county auditor shall certify to each member of the council
the number of votes, rounded to the nearest one hundredth (0.01),
the council has for that year.
Sec. 4. A council takes an action by adopting an ordinance.
Sec. 5. Except as otherwise provide in this article, a council may
adopt an ordinance to amend or rescind a previously adopted
ordinance.
Sec. 6. A member of the council may exercise its votes on the
council for or against a proposed ordinance by:
(1) passing a resolution that contains the text of an ordinance
being proposed to the council; and
(2) transmitting the resolution to the county auditor of the
county.
Sec. 7. A resolution passed by a member of the council exercises
all of the votes of the member. Except as permitted by the
department, the votes on a resolution may not be changed during
the year.
Sec. 8. A resolution must be substantially in the following
general form:
"The (insert name of political subdivision's fiscal body) casts its
(insert number of political subdivision's votes) votes (for or
against) the proposed ordinance of the (insert name of the county)
County Income Tax Council, which reads as follows:
(Insert text of ordinance being proposed to members of the
council).".
Sec. 9. The text of a resolution and a proposed ordinance
contained in a resolution must be substantially in the form
prescribed by the department.
Sec. 10. A proposed ordinance adopting, increasing, or
decreasing a tax rate must state that the tax rate in the proposed
ordinance is subject to adjustment by the department before
November 1 of the year, as necessary, to correct any error in the
data or computations on which the estimated tax rate is based or
to reflect changes in the department's forecast of economic
conditions that will affect the amount of taxes raised by the tax
rate.
Sec. 11. Subject to this article, a council may adopt an ordinance
to do any of the following:
(1) Adopt, amend, or rescind an ordinance adopted under
IC 6-11-7-10.
(2) Adopt a tax and set a tax rate for the county under
IC 6-11-8 or IC 6-11-9.
(3) Increase or decrease a tax rate imposed in the county
under IC 6-11-8 or IC 6-11-9.
(4) Rescind a tax imposed under IC 6-11-8 or IC 6-11-9 in the
county.
(5) Adopt, amend, or rescind any other action authorized
under this article.
Sec. 12. An ordinance adopted by the council before September
16 initially applies to the ensuing year. Unless waived by the
department for good cause, an ordinance adopted after September
15 in a year initially applies to the year following the year of
adoption by two (2) years.
Sec. 13. Except as provided by this article, an ordinance
adopted by a council remains in effect until the earlier of:
(1) the date specified in the ordinance; or
(2) the date on which a subsequent ordinance amending or
rescinding the ordinance is effective.
Sec. 14. Any member of the council may present a proposed
ordinance to the council for passage.
Sec. 15. (a) A member of the council may present an ordinance
to the council for passage by:
(1) providing:
(A) in the case of a resolution for a proposed ordinance
under IC 6-11-7-10, the county auditor and the fiscal
officer of each member of the council; and
(B) the public;
with notice of the date, time, and place that a public hearing
will be held on a resolution proposing an ordinance to the
council;
(2) conducting the public hearing; and
(3) after the hearing, passing the resolution proposing the
ordinance.
(b) The notice required by subsection (a) must be given in
accordance with IC 5-3-1.
Sec. 16. (a) This section applies only to the hearing conducted
for a proposed ordinance under IC 6-11-7-10.
(b) Notice must be given under:
(1) section 15(a)(1)(A) of this chapter before August 2; and
(2) section 15(a)(1)(B) of this chapter before August 7;
to be effective for the ensuing year.
(c) The hearing required under section 15 of this chapter must
be conducted as part of the hearing required under IC 6-13-6.
Sec. 17. After passing a resolution proposing an ordinance, a
member initiating the proposed ordinance shall distribute a copy
of the proposed ordinance to the county auditor of the county and
a certified tally of the member's vote on the proposed ordinance.
The county auditor shall treat any proposed ordinance presented
to the county auditor under this section as a casting of all that
member's votes in favor of the proposed ordinance.
Sec. 18. The county auditor shall deliver copies of a proposed
ordinance that is received from a member under section 17 of this
chapter to all the other members of the council not later than ten
(10) days after receiving the proposed ordinance.
Sec. 19. (a) Once a member receives a resolution containing a
proposed ordinance from the county auditor, the member shall:
(1) provide the public with notice of the date, time, and place
a public hearing will be held on the proposed ordinance;
(2) conduct the hearing, except for a resolution for a proposed
ordinance under IC 6-11-7-10 if a hearing has been conducted
as required in section 16 of this chapter; and
(3) vote on the proposed ordinance;
not later than thirty (30) days after receipt of the proposed
ordinance.
(b) The notice required by subsection (a) must be given in
accordance with IC 5-3-1.
Sec. 20. After voting on a resolution concerning a proposed
ordinance received under section 17 of this chapter, a member
voting on the proposed ordinance shall distribute a copy of the
proposed ordinance and a certified tally of the member's vote on
the proposed ordinance to the county auditor.
Sec. 21. The county auditor shall record all votes taken on
ordinances presented to the members of the council for a vote.
Sec. 22. The county auditor shall treat the ordinance as adopted
if the proposed ordinance receives at least seventy-six (76) votes
from the members of the council.
Sec. 23. If the council adopts an ordinance, the county auditor
shall immediately send a certified copy of the:
(1) ordinance; and
(2) results of the vote on the ordinance;
to the department and the department of state revenue by certified
mail.
Sec. 24. Not later than ten (10) days after an ordinance is
adopted, the county auditor shall publish a notice of the action
under IC 5-3-1.
Chapter 4. Determination of Residency
Sec. 1. For purposes of this article, an individual shall be treated
as a resident of the county in which the individual:
(1) maintains a home, if the individual maintains only one (1)
home in Indiana;
(2) if subdivision (1) does not apply, is registered to vote;
(3) if subdivision (1) or (2) does not apply, registers the
individual's personal automobile; or
(4) if subdivision (1), (2), or (3) does not apply, spends the
majority of the individual's time spent in Indiana during the
taxable year in question.
Sec. 2. Subject to section 3 of this chapter, the residence or
principal place of business or employment of an individual is to be
determined on January 1 of the year in which the individual's
taxable year commences. If an individual changes the location of
the individual's residence or principal place of employment or
business to another county in Indiana during a year, the
individual's liability for the tax is not affected.
Sec. 3. If an individual becomes a resident for purposes of
IC 36-7-27 during a year because the individual:
(1) changes the location of the individual's residence to a
county in which the individual begins employment or business
at a qualified economic development tax project (as defined in
IC 36-7-27-9); or
(2) changes the location of the individual's principal place of
employment or business to a qualified economic development
tax project and does not reside in another county in which the
tax is in effect;
the individual's adjusted gross income attributable to employment
or business at the qualified economic development tax project is
taxable only by the county containing the qualified economic
development tax project.
Chapter 5. Exempt Taxpayers
economic forecast data available to the department before the later
of November 1 or the date set by the department.
Sec. 3. The total tax imposed under section 1 of this chapter
shall be treated as a controlled tax.
Sec. 4. For purposes of this chapter, a county's total allowable
tax increase amount under this chapter is equal to the sum of each
political subdivision's total allowable tax increase amounts allowed
in the county after 2006.
Sec. 5. For purposes of this chapter, a political subdivision's
total allowable tax increase amount under this chapter is equal to
the sum of the annual controlled tax increase amounts allowed in
the county for the political subdivisions in each year after 2006.
Sec. 6. For purposes of this chapter, a political subdivision's
annual controlled tax increase in a county for any particular year
is the amount determined under STEP THREE of the following
formula:
STEP ONE: Subtract the political subdivision's controlled tax
limit in the county for the immediately preceding year from
the political subdivision's controlled tax limit in the county for
the ensuing year.
STEP TWO: Subtract the political subdivision's controlled
levy limit in the county for the immediately preceding year
from the political subdivision's controlled levy limit in the
county for the ensuing year.
STEP THREE: Subtract the STEP TWO amount from the
STEP ONE amount.
Sec. 7. Subject to section 8 of this chapter, a negative result for
a political subdivision under section 6 of this chapter reduces the
political subdivision's total allowable tax increase amount that may
be funded from taxes imposed under this chapter.
Sec. 8. A political subdivision's total allowable tax increase
amount under this chapter may not be less than zero (0).
Sec. 9. (a) This section applies to a school corporation.
(b) A separate annual controlled tax increase and total
allowable tax increase amount shall be computed for each of the
following:
(1) A school corporation's school general fund and charter
schools taxes imposed under IC 6-1.1-19-1.5.
(2) A school corporation's transportation fund taxes imposed
under IC 21-2-11.5-3.
(3) A school corporation's school bus replacement fund taxes
imposed under IC 21-2-11.5-3.
(c) None of the separate school corporation's total allowable tax
increase amounts under subsection (b) may be less than zero (0).
Sec. 10. Subject to section 11 of this chapter, instead of funding
all of a county's total allowable tax increase amount from county
income taxes, a council may adopt an ordinance to fund the annual
controlled tax increases attributable to one (1) or more years from
controlled property taxes. Adoption of the ordinance does not
increase the controlled levy limit of any political subdivision in the
county. Notice of the proposed ordinance must be given under
IC 6-11-3-15 before the date specified in IC 6-11-3-16. If an
ordinance adopted under this section applies to the annual
controlled tax increases attributable to a particular year the
ordinance must require that all of the annual controlled tax
increases attributable to the particular year be funded by
controlled property taxes.
Sec. 11. A council, either through an ordinance terminating a
tax or an ordinance reducing the tax rate, may not decrease a tax
imposed under this chapter below the tax rate necessary to
continue the part of an allocation of taxes to a political subdivision
that the political subdivision has pledged to pay or fund bonds,
leases, or another obligation permitted by IC 5-1-14 or another
law.
Sec. 12. Subject to IC 6-13-22-11 concerning the treatment of
distributions to a county that qualify as excess revenue, the part of
the tax imposed under this chapter is allocated among the political
subdivisions in the county in proportion to the part of the county's
total allowable tax increase amount that is:
(1) attributable to each political subdivision; and
(2) funded by taxes under this article.
Any annual controlled tax increase that is not funded by taxes
under this chapter as the result of the adoption of an ordinance
under section 10 of this chapter may not be considered in
determining a political subdivision's allocation of taxes under this
section.
Sec. 13. Subject to any law limiting the use of a political
subdivision's revenues, a political subdivision may use taxes
allocated to a political subdivision under this chapter for any
governmental or public purpose, including any purpose for which
a county adjusted gross income tax, a county option income tax, or
a county economic development tax could be used before 2007.
Sec. 14. The county auditor shall retain from taxes allocated to
a political subdivision under this chapter an amount equal to any:
(1) reserve or settlement required under IC 6-11-13;
(2) assignment authorized under IC 6-11-14; or
(3) special allocation authorized under IC 6-11-15;
that is payable from taxes imposed under this chapter in the
manner and under the schedule determined under IC 6-11-13.
Sec. 15. The remainder of an allocation of taxes imposed under
this chapter shall be distributed to the political subdivisions in the
county in the manner and under the schedule determined under
IC 6-11-13.
Sec. 16. A political subdivision shall deposit the amount
distributed to the political subdivision under this chapter among
the funds of the political subdivision as provided in the political
subdivision's budget for the year in which the tax being distributed
was imposed, including any amount budgeted for deposit in the
political subdivision's rainy day fund. Money deposited in a fund
under this section may be used for any purpose for which money
in the fund may be used or transferred to another fund as
authorized by law.
Sec. 17. The amount raised under this chapter and retained by
a county auditor as an assignment or a special allocation may be
used only for the purposes of the assignment or the special
allocation.
Sec. 18. Subject to IC 6-13-22-11 concerning excess revenue, an
amount retained in excess of the amount necessary for the purposes
of a reserve, a settlement, an assignment, or a special allocation
shall be distributed to the political subdivision from which the
amount was retained. The amount distributed under this section
does not reduce the controlled tax limit or allocation amount for a
political subdivision in any year.
Chapter 8. Optional Additional Income Tax
Sec. 1. In addition to a tax in effect in the county under
IC 6-11-7 or IC 6-11-9, or both, a council may adopt an additional
tax under this chapter for the county.
Sec. 2. The tax rate imposed for a tax under this chapter in a
county may not exceed the greater of the following:
(1) One percent (1%).
(2) The rate determined under sections 5 and 6 of this
chapter, if sections 5 and 6 of this chapter apply to the county.
Sec. 3. A tax imposed under section 1 of this chapter (including
a tax described in section 4 of this chapter) shall be treated as an
excluded tax.
Sec. 4. An ordinance adopted in a county before April 1, 2006,
that would have initially imposed any of the following in 2007 or
authorized the continuation of any of the following after 2006 if
IC 6-3.5-1.1, IC 6-3.5-6, and IC 6-3.5-7 had not been repealed shall
be treated after 2006 as an ordinance adopted under section 1 of
this chapter:
(1) County adjusted gross income tax.
(2) County option income tax.
(3) County economic development tax.
Sec. 5. Subject to the reductions under section 6 of this chapter,
the tax rate imposed in 2007 under section 4 of this chapter is equal
to the combined:
(1) county adjusted gross income tax rate or county option
income tax; and
(2) county economic development rate;
that the county would have imposed in 2007 (after deducting any
part of the tax rate attributable to a law listed in IC 6-11-9-11) if
IC 6-3.5-1.1, IC 6-3.5-6, and IC 6-3.5-7 had not been repealed.
Sec. 6. Section 4 of this chapter does not prohibit a council from
adopting an ordinance after June 30, 2006, to increase the tax rate
determined under section 5 of this chapter as long as the total tax
rate imposed under this chapter does not exceed the maximum rate
specified in section 2 of this chapter.
IC 13-11-2-47) or a joint solid waste management district (as
defined in IC 13-11-2-113) if a majority of the members of
each of the county fiscal bodies of the counties within the
district passes a resolution approving an allocation of taxes
under this chapter.
(d) An eligible civil unit's allocation factor for a year is the
eligible civil taxing unit's controlled tax limit for a year.
(e) The tax imposed under this chapter shall be allocated under
Option 1 in section 18 of this chapter.
Sec. 12. (a) This section applies to a county that would have
received a certified distribution of county adjusted gross income
tax, county option income tax, or county economic development tax
in 2007 if IC 6-3.5-1.1, IC 6-3.5-6, and IC 6-3.5-7 had not been
repealed.
(b) Subject to section 10 of this chapter, the tax option ratios
that apply in the county are:
(1) the ratios adopted by the council by ordinance; or
(2) the ratios determined under sections 13 through 17 of this
chapter, if subdivision (1) does not apply.
Sec. 13. (a) The Option 1 ratio in a county is:
(1) if the county received a 2006 certified distribution of
county option income taxes that was distributed under
IC 6-3.5-6-18(e) and also received a 2006 certified
distribution of county economic development taxes, the
quotient determined by dividing:
(A) the county option income tax rate, excluding any part
of the rate attributable to a law listed in IC 6-11-9-11, that
would have been in effect in the county in 2007 and
distributed under IC 6-3.5-6-18(e) if IC 6-3.5-6 had not
been repealed; by
(B) the sum of the county adjusted gross income tax rate,
county option income tax rate, and county economic
development income tax rate that would have been in effect
in the county in 2007, excluding any part of the rate
attributable to a law listed in IC 6-11-9-11, if IC 6-3.5-1.1,
IC 6-3.5-6, and IC 6-3.5-7 had not been repealed;
(2) if the county did not receive a 2006 certified distribution
of county option income taxes that was distributed under
IC 6-3.5-6-18(e), zero (0); and
(3) if the county received a 2006 certified distribution of
county option income taxes that was distributed under
IC 6-3.5-6-18(e), and did not receive a 2006 certified
distribution of county economic development taxes, one (1).
(b) The Option 1 eligible civil units are the following:
(1) Any political subdivision that has the power to impose a
property tax, other than a school corporation or a county
solid waste management district (as defined in IC 13-11-2-47)
or a joint solid waste management district (as defined in
IC 13-11-2-113).
(2) A county solid waste management district (as defined in
IC 13-11-2-47) or a joint solid waste management district (as
defined in IC 13-11-2-113) if a majority of the members of
each of the county fiscal bodies of the counties within the
district passes a resolution approving an allocation of taxes
under this chapter.
A resolution passed under IC 6-3.5-6-1.3 (before its repeal) that
would have applied to a distribution of county adjusted gross
income taxes or county option income taxes in 2007 if IC 6-3.5-1.1
and IC 6-3.5-6 had not been repealed shall be treated as a
resolution adopted under section 1 of this chapter.
(c) An Option 1 eligible civil unit's allocation factor for a year
is the sum of the following:
(1) The eligible civil taxing unit's controlled tax limit for a
year.
(2) For an eligible civil taxing unit in a county that received a
certified distribution of county adjusted gross income taxes,
county option income taxes, or county economic development
income taxes in 2006, an amount equal to the property taxes
imposed on taxable property by the county in 1999 for the
county's welfare fund and welfare administration fund in the
county.
(3) For an eligible civil taxing unit in a county that received a
certified distribution of county adjusted gross income taxes,
county option income taxes, or county economic development
income taxes in 2006, an amount equal to the property taxes
levied in the county to fund or pay bonded indebtedness, lease
rentals, or other obligations permitted by IC 5-1-14 or
another law that were issued or entered into before July 1,
2005, including any refunding bonds or successor leases to the
extent that the term does not exceed the term of the original
obligation.
(4) For an eligible civil taxing unit in a county that received a
certified distribution of county adjusted gross income taxes,
county option income taxes, or county economic development
income taxes in 2006, an amount equal to the lesser of the
fixed rate levies (as defined in IC 6-15-1-3) imposed on
taxable property by the civil taxing unit in the county in:
(A) the year of distribution; or
(B) 2006.
Sec. 14. (a) The Option 2 ratio in a county is equal to:
(1) if the county received a 2006 certified distribution of
county option income taxes that was distributed under
IC 6-3.5-6-18.5 (repealed), one (1); or
(2) if the county did not receive a 2006 certified distribution
of county option income taxes that was distributed under
IC 6-3.5-6-18.5 (repealed), zero (0).
(b) The Option 2 eligible civil units are any entity that would
have been eligible to receive a distribution under IC 6-3.5-6-18.5
if IC 6-3.5-6 had not been repealed.
(c) An Option 2 eligible civil unit's allocation factor for a year
is the sum of the following:
(1) The eligible civil taxing unit's controlled tax limit for a
year.
(2) For an eligible civil taxing unit in a county that received a
certified distribution of county economic development income
taxes in 2006, an amount equal to the property taxes imposed
on taxable property by the county in 1999 for the county's
welfare fund and welfare administration fund in the county.
Sec. 15. (a) The Option 3 ratio in a county is equal to:
(1) if the county received a 2006 certified distribution of
county adjusted gross income taxes and also received a 2006
certified distribution of county economic development taxes,
the quotient determined by dividing:
(A) the county adjusted gross income tax rate, excluding
any part of the rate attributable to a law listed in
IC 6-11-9-11, that would have been in effect in the county
in 2007 and distributed under IC 6-3.5-1.1-15 if
IC 6-3.5-1.1 had not been repealed; by
(B) the sum of the county adjusted gross income tax rate,
county option income tax rate, and county economic
development income tax rate that would have been in effect
in the county in 2007, excluding any part of the rate
attributable to a law listed in IC 6-11-9-11, if IC 6-3.5-1.1,
IC 6-3.5-6, and IC 6-3.5-7 had not been repealed;
(2) if the county did not receive a 2006 certified distribution
of county adjusted gross income taxes, zero (0); or
(3) if the county received a 2006 certified distribution of
county adjusted gross income taxes but did not receive a 2006
certified distribution of county economic income taxes, one
(1).
(b) The Option 3 eligible civil units are the following:
(1) Any political subdivision that has the power to impose a
property tax, other than a school corporation or a county
solid waste management district (as defined in IC 13-11-2-47)
or a joint solid waste management district (as defined in
IC 13-11-2-113).
(2) A county solid waste management district (as defined in
IC 13-11-2-47) or a joint solid waste management district (as
defined in IC 13-11-2-113) if a majority of the members of
each of the county fiscal bodies of the counties within the
district passes a resolution approving an allocation of taxes
under this chapter.
A resolution passed under IC 6-3.5-1.1-1.3 (before its repeal) that
would have applied to a distribution of county adjusted gross
income taxes or county option income taxes in 2007 if IC 6-3.5-1.1
and IC 6-3.5-6 had not been repealed shall be treated as a
resolution adopted under section 1 of this chapter.
(c) An Option 3 eligible civil unit's allocation factor for a year
is the sum of the following:
(1) The eligible civil taxing unit's controlled tax limit for a
year.
(2) The controlled tax limit for a year of any special taxing
district, authority, board, or other entity formed to discharge
governmental services or functions on behalf of or ordinarily
attributable to the eligible civil taxing unit.
(3) The amount of federal revenue sharing funds and certified
shares that were used by the eligible civil taxing unit (or any
special taxing district, authority, board, or other entity
formed to discharge governmental services or functions on
behalf of or ordinarily attributable to the eligible civil taxing
unit) to reduce its ad valorem property tax levies below the
limits imposed by IC 6-1.1-18.5 (repealed) in 2006.
(4) For a county that received a certified distribution of
county adjusted gross income taxes, county option income
taxes, or county economic development income taxes in 2006,
an amount equal to the property taxes imposed on taxable
property by the county in 1999 for the county's welfare fund
and welfare administration fund in the county.
Sec. 16. (a) The Option 4 ratio in a county is equal to:
(1) if the county also received a 2006 certified distribution of
county economic development income taxes that was
distributed under IC 6-3.5-7-12(b) and also received a 2006
certified distribution of county adjusted gross income taxes or
county option income taxes, the quotient determined by
dividing:
(A) the county economic development income tax rate,
excluding any part of the rate attributable to a law listed
in IC 6-11-9-11, that would have been in effect in the
county in 2007 and distributed under IC 6-3.5-7-12(b) if
IC 6-3.5-7 had not been repealed; by
(B) the sum of the county adjusted gross income tax rate,
county option income tax rate, and county economic
development income tax rate that would have been in effect
in the county in 2007, excluding any part of the rate
attributable to a law listed in IC 6-11-9-11, if IC 6-3.5-1.1,
IC 6-3.5-6, and IC 6-3.5-7 had not been repealed;
(2) if the county did not receive a 2006 certified distribution
of county economic development income taxes, zero (0);
(3) if the county received a 2006 certified distribution of
county economic development income taxes that was
distributed under IC 6-3.5-7-12(c), zero (0); or
(4) if the county received a 2006 certified distribution of
county economic development income taxes that was
distributed under IC 6-3.5-7-12(b) but did not receive a 2006
certified distribution of county adjusted gross income tax or
county option income tax, one (1).
(b) The Option 4 eligible civil units are the following:
(1) The county.
(2) Each city and town in the county.
(c) An Option 4 eligible civil unit's allocation factor for a year
is the sum of the following:
(1) The eligible civil taxing unit's controlled tax limit for a
year.
(2) For an eligible civil taxing unit in a county that received a
certified distribution of county adjusted gross income taxes,
county option income taxes, or county economic development
income taxes in 2006, an amount equal to the property taxes
imposed on taxable property by the county in 1999 for the
county's welfare fund and welfare administration fund in the
county.
(3) For an eligible civil taxing unit in a county that received a
certified distribution of county adjusted gross income taxes,
county option income taxes, or county economic development
income taxes in 2006, an amount equal to the property taxes
levied in the county to fund or pay bonded indebtedness, lease
rentals, or other obligations permitted by IC 5-1-14 or
another law that were issued or entered into before July 1,
2005, including any refunding bonds or successor leases to the
extent that the term does not exceed the term of the original
obligation.
(4) For an eligible civil taxing unit in a county that received a
certified distribution of county adjusted gross income taxes,
county option income taxes, or county economic development
income taxes in 2006, an amount equal to the lesser of the
fixed rate levies (as defined in IC 6-15-1-3) imposed on
taxable property by the civil taxing unit in the county in:
(A) the year of distribution; or
(B) 2006.
Sec. 17. (a) The Option 5 ratio in a county is equal to:
(1) if the county received a 2006 certified distribution of
county economic development income taxes that was
distributed under IC 6-3.5-7-12(c) and also received a 2006
certified distribution of county adjusted gross income taxes or
county option income taxes, the quotient determined by
dividing:
(A) the county economic development income tax rate,
excluding any part of the rate attributable to a law listed
in IC 6-11-9-11, that would have been in effect in the
county in 2007 and distributed under IC 6-3.5-7-12(c) if
IC 6-3.5-7 had not been repealed; by
(B) the sum of the county adjusted gross income tax rate,
county option income tax rate, and county economic
development income tax rate that would have been in effect
in the county in 2007, excluding any part of the rate
attributable to a law listed in IC 6-11-9-11, if IC 6-3.5-1.1,
IC 6-3.5-6, and IC 6-3.5-7 had not been repealed;
(2) if the county did not receive a 2006 certified distribution
of county economic development income taxes, zero (0);
(3) if the county received a 2006 certified distribution of
county economic development income taxes that was
distributed under IC 6-3.5-7-12(b), zero (0); or
(4) if the county received a 2006 certified distribution of
county economic development income taxes that was
distributed under IC 6-3.5-7-12(c) but did not receive a 2006
certified distribution of county adjusted gross income tax or
county option income tax, one (1).
(b) The Option 5 eligible civil units are the following:
(1) The county.
(2) Each city and town in the county.
eligible civil taxing units of the county during the current
year.
STEP SIX: If the STEP THREE result is greater than zero
(0), the STEP ONE amount shall be distributed by multiplying
the STEP ONE amount by the ratio established under this
chapter.
STEP SEVEN: For each eligible civil taxing unit determine
the STEP FIVE ratio multiplied by the STEP TWO amount.
STEP EIGHT: For each eligible civil taxing unit determine
the difference between the STEP SEVEN amount minus the
product of the STEP ONE amount multiplied by the ratio
established under this chapter. The STEP THREE excess
shall be distributed as provided in STEP NINE only to the
eligible civil taxing units that have a STEP EIGHT difference
greater than or equal to zero (0).
STEP NINE: For the eligible civil taxing units qualifying for
a distribution under STEP EIGHT, each eligible civil taxing
unit's share equals the STEP THREE excess multiplied by the
ratio of:
(A) the Option 2 allocation factor for the eligible civil
taxing unit; divided by
(B) the sum of the Option 2 allocation factors for all
eligible civil taxing units of the county during the current
year.
Sec. 20. The amount allocated to an eligible civil taxing unit
under Option 3 is the amount determined under STEP SIX of the
following formula:
STEP ONE: Determine the amount of revenue to be
distributed under this chapter.
STEP TWO: Multiply the STEP ONE amount by the county's
Option 3 ratio.
STEP THREE: Determine the Option 3 allocation factor for
the eligible civil taxing unit for the year of distribution.
STEP FOUR: Determine the sum of the Option 3 allocation
factors for all eligible civil units in the county for the year of
distribution.
STEP FIVE: Divide the STEP THREE result by the STEP
FOUR result.
STEP SIX: Multiply the STEP FIVE result by the STEP
TWO result.
Sec. 21. The amount allocated to an eligible civil taxing unit
under Option 4 is the amount determined under STEP SIX of the
following formula:
STEP ONE: Determine the amount of revenue to be
distributed under this chapter.
STEP TWO: Multiply the STEP ONE amount by the county's
Option 4 ratio.
STEP THREE: Determine the Option 4 allocation factor for
the eligible civil taxing unit for the year of distribution.
STEP FOUR: Determine the sum of the Option 4 allocation
factors for all eligible civil units in the county for the year of
distribution.
STEP FIVE: Divide the STEP THREE result by the STEP
FOUR result.
STEP SIX: Multiply the STEP FIVE result by the STEP
TWO amount.
Sec. 22. The amount allocated to an eligible civil taxing unit
under Option 5 is the amount determined under STEP SIX of the
following formula:
STEP ONE: Determine the amount of revenue to be
distributed under this chapter.
STEP TWO: Multiply the STEP ONE amount by the county's
Option 5 ratio.
STEP THREE: Determine the Option 5 allocation factor for
the eligible civil taxing unit for the year of distribution.
STEP FOUR: Determine the sum of the Option 5 allocation
factors for all eligible civil units in the county for the year of
distribution.
STEP FIVE: Divide the STEP THREE result by the STEP
FOUR result.
STEP SIX: Multiply the STEP FIVE result by the STEP
TWO amount.
Sec. 23. A council, either through an ordinance terminating a
tax or an ordinance reducing the tax rate, may not decrease a tax
imposed under this chapter below the tax rate necessary to
continue the part of an allocation of taxes to a civil taxing unit that
the civil taxing unit has pledged to pay or fund bonds, leases, or
another obligation permitted by IC 5-1-14 or another law. For
purposes of this section, a pledge of county adjusted gross income
taxes (before the repeal of IC 6-3.5-1 or IC 6-3.5-1.1), county
option income taxes (before the repeal of IC 6-3.5-6), or county
economic development taxes (before the repeal of IC 6-3.5-7) shall
be treated as a pledge of an allocation of taxes under this chapter.
Sec. 24. Subject IC 6-13-19 or any other law limiting the use of
a civil taxing unit's revenues, a civil taxing unit may use taxes
allocated to a civil taxing unit under this chapter for any
governmental or public purpose, including any purpose for which
a county adjusted gross income tax, a county option income tax, or
a county economic development tax could be used before 2007.
Sec. 25. The county auditor shall retain from taxes allocated to
a civil taxing unit under this chapter an amount equal to any:
(1) reserve or settlement under IC 6-11-13;
(2) assignment under IC 6-11-14; or
(3) special allocation under IC 6-11-16;
that is payable from taxes imposed under this chapter in the
manner and under the schedule determined under IC 6-11-13.
Sec. 26. The remainder of an eligible civil unit's allocation of
taxes imposed under this chapter shall be distributed to the eligible
civil taxing unit in the manner and under the schedule determined
under IC 6-11-13.
Sec. 27. An eligible taxing unit shall deposit the amount
distributed to the political subdivision under this chapter as
provided in the budget for the year among the funds of the year in
which the distributed taxes were imposed, including any amount
budgeted for deposit in the political subdivision's rainy day fund.
Money deposited in a fund under this section may be used for any
purpose for which money in the fund may be used or transferred
to another fund as authorized by law.
Sec. 28. The amount raised under this chapter and retained by
a county auditor as an assignment or a special allocation may be
used only for the purposes of the assignment or the special
allocation.
Sec. 29. Subject to IC 6-13-22-11 concerning excess revenue, an
amount retained in excess of the amount necessary for the purposes
of a reserve, a settlement, an assignment, or a special allocation
shall be distributed to the civil taxing unit from which the amount
was retained. The amount distributed under this section does not
reduce the controlled tax limit or allocation amount for a civil
taxing unit in any year.
Chapter 9. Excluded Taxes
Sec. 1. In addition to the tax rate in effect in the county under
IC 6-11-7 or IC 6-11-8, or both, the governing body specified in
any of the following may adopt an additional tax rate for the
county under this chapter.
Sec. 2. An additional tax rate adopted under this chapter
(including a tax described in section 3 of this chapter) shall be
treated as an excluded tax.
Sec. 3. An ordinance adopted in a county before April 1, 2006,
that would have imposed any of the additional rates listed in
IC 6-11-9-11 after 2006 if IC 6-3.5-1.1, IC 6-3.5-6, and IC 6-3.5-7
had not been repealed shall be treated after 2006 as an ordinance
adopted under section 1 of this chapter.
Sec. 4. The tax rate imposed under section 3 of this chapter is
equal to the combined total of the additional tax rates listed in
IC 6-11-9-11 that the county would have imposed in 2007 if
IC 6-3.5-1.1, IC 6-3.5-6, and IC 6-3.5-7 had not been repealed.
Sec. 5. The tax rate imposed under section 3 of this chapter
applies to 2007 and each year thereafter until the earlier of the
following:
(1) The tax expires by law.
(2) The tax is rescinded or the tax rate is reduced by the
council under this article.
Sec. 6. A fiscal body or council, either through an ordinance
terminating a tax or an ordinance reducing the tax rate, may not
decrease an excluded tax imposed under this chapter below the tax
rate necessary to continue the part of an allocation of taxes to a
political subdivision that the political subdivision has pledged to
pay or fund bonds, leases, or another obligation permitted by
IC 5-1-14 or another law. For purposes of this section, a pledge of
county adjusted gross income taxes (before the repeal of IC 6-3.5-1
or IC 6-3.5-1.1), county option income taxes (before the repeal of
IC 6-3.5-6), or county economic development taxes (before the
repeal of IC 6-3.5-7) under a law listed in IC 6-11-9-11 shall be
treated as a pledge of an allocation of taxes under this article.
Sec. 7. The county auditor shall retain from the distribution of
taxes made to the county the amount of each excluded tax imposed
in the county.
Sec. 8. The amount raised by an excluded tax, after deducting
any necessary reserves and settlements under IC 6-11-13, may be
used only for the purposes allowed under the law under which it
was imposed or its successor law. Any amount raised in excess of
the amount necessary for the purposes of the excluded tax shall be
treated as excess revenue under IC 6-13-22-11 and applied to
reduce the excluded tax rate for the following year or the later year
determined by the department. Except as otherwise provided by
law, IC 36-1-8-5 applies to an unused and unencumbered balance
remaining from an excluded tax when the purposes for the
excluded tax have been fulfilled.
Sec. 9. (a) Except to the extent waived for a year by the
department, an additional tax rate is imposed in each county at the
lesser of the following:
(1) The rate necessary, after deducting any amount being
raised as property taxes to replace money in a rainy day fund
used as a temporary loan to a debt service fund, to maintain
the balance of the rainy day funds of each political subdivision
at six percent (6%) of the budget in the immediately
preceding year for the political subdivision in the county; or
(2) twenty percent (20%) of the increase in the tax rate
imposed in the county under IC 6-11-7.
(b) The additional rate under this section is an excluded tax.
(c) The county auditor shall retain the amount of the additional
tax rate under this section as a special allocation. The retained
amount shall be allocated among political subdivisions for deposit
in each political subdivision's rainy day fund in proportion to the
controlled tax limits for each political subdivision in the county
until the political subdivision's rainy day fund balance is at least six
percent (6%) of the political subdivision's controlled tax limit.
(d) The council may adopt an ordinance to increase the
additional tax imposed under this section. The county auditor shall
retain the amount of the additional tax rate under this subsection
as a special allocation. The retained amount shall be allocated
among political subdivisions for deposit in each political
subdivision's rainy day fund in proportion to the controlled tax
limits of each political subdivision in the county.
Sec. 10. (a) This section applies to any county, regardless of
whether the county has adopted an ordinance under:
(1) IC 6-11-15 to provide additional property tax replacement
credits or homestead credits from the part of a tax that is a
controlled tax imposed under IC 6-11-7;
(2) IC 6-11-16 to provide additional property tax replacement
credits or homestead credits from the part of an optional
additional county income tax imposed as an excluded tax
under IC 6-11-8; or
(3) another provision of this chapter to provide additional
property tax replacement credits or homestead credits.
(b) In addition to any other additional tax rate imposed under
this article, a council may adopt an additional tax rate to replace
revenue lost to a political subdivision as the result of granting an
additional homestead credit under this section. A county that
adopted an ordinance under IC 6-3.5-7-26 (before its repeal) shall
be treated as if the county adopted an ordinance under this section.
The amount of the additional tax is an excluded tax.
(c) The additional tax rate may not exceed twenty-five
hundredths of one percent (0.25%).
(d) An additional homestead credit is established in each county
to which this section applies to offset the effect on homesteads in
the county resulting from the statewide deduction for inventory
under IC 6-1.1-12-42. The department shall set the percentage of
the homestead credit so that the total amount of additional
homestead credits granted equals the amount of the additional tax
collected under this section. The homestead credit adopted under
this section shall be applied as specified in the ordinance. The
ordinance may provide that the additional tax be:
(1) uniformly applied to increase the homestead credit
granted under IC 6-1.1-20.9 for all homesteads in the county;
or
(2) applied to increase the homestead credit granted under
IC 6-1.1-20.9 for all homesteads in the county in the same
proportion as the amount of inventory assessed value
deducted under IC 6-1.1-12-42 in the taxing district for the
immediately preceding year's assessment date bears to the
total inventory assessed value deducted under IC 6-1.1-12-42
in the county for the immediately preceding year's assessment
date.
(e) The county auditor shall retain the amount necessary for the
homestead credit as a special allocation. The retained amount shall
be allocated among political subdivisions in proportion to property
tax revenue lost as the result of granting additional homestead
credits under this section.
(f) Money received under this section shall be treated for all
purposes as property tax levies.
Sec. 11. (a) This section applies to an additional tax imposed
under any of the following before April 1, 2006, and that would
have been in effect for a year after 2006 if IC 6-3.5-1.1, IC 6-3.5-6,
and IC 6-3.5-7 had not been repealed:
(1) IC 6-3.5-1.1-2.5 (repealed).
(2) IC 6-3.5-1.1-2.7 (repealed).
(3) IC 6-3.5-1.1-2.8 (repealed).
(4) IC 6-3.5-1.1-2.9 (repealed).
(5) IC 6-3.5-1.1-3.3 (repealed).
(6) IC 6-3.5-1.1-3.5 (repealed).
(7) IC 6-3.5-1.1-3.6 (repealed).
(8) IC 6-3.5-6-27 (repealed).
(9) IC 6-3.5-6-28 (repealed).
(10) IC 6-3.5-7-22 (repealed).
(11) IC 6-3.5-7-24 (repealed).
(12) IC 6-3.5-7-25 (repealed).
(13) IC 6-3.5-7-27 (repealed).
(b) An additional tax rate is imposed in a county after 2006 for
the purposes each law described in subsection (a). The amount of
the additional tax rate is the tax rate imposed in 2006 under a law
described in subsection (a). The additional tax rate is an excluded
tax.
(c) An additional tax rate imposed under this section continues
until the earliest of the following:
(1) The date the additional tax rate is rescinded or reduced by
the body establishing the additional rate.
(2) The date that the purpose for which the tax rate was
imposed is accomplished.
(3) The date that the law described in subsection (a) would
have terminated the additional tax rate.
(d) The county auditor shall retain the amount of the additional
tax rate as a special allocation. The retained amount shall be
allocated as provided in the applicable law described in subsection
(a).
Sec. 12. (a) This section applies to any county, regardless of
whether the county has adopted an ordinance under:
(1) IC 6-11-15 to provide additional property tax replacement
credits or homestead credits from the part of a tax that is a
controlled tax imposed under IC 6-11-7;
(2) IC 6-11-16 to provide additional property tax replacement
credits or homestead credits from the part of an optional
additional county income tax imposed as an excluded tax
under IC 6-11-8; or
(3) another provision of this chapter to provide additional
property tax replacement credits or homestead credits.
(b) In addition to any other additional tax rate imposed under
this article, a council may adopt an additional tax rate to replace
revenue lost to a political subdivision as the result of granting an
additional property tax replacement credit under this section. The
amount of the additional tax is an excluded tax.
(c) The additional tax rate may not exceed one percent (1%).
(d) An additional property tax replacement credit is established
in each county to which this section applies. The department shall
set the percentage of the property tax replacement credit so that
the total amount of additional property tax replacement credits
granted equals the amount of the additional tax collected under
this section. The additional property tax replacement credit shall
be uniformly applied to all taxpayer property tax liability for
controlled property taxes imposed by the political subdivision.
(e) The county auditor shall retain the amount necessary for the
property tax replacement credit as a special allocation. The
retained amount shall be allocated among political subdivisions in
proportion to property tax revenue lost as the result of granting
additional property tax replacement credits under this section.
(f) Money received under this section shall be treated for all
purposes as property tax levies.
Chapter 10. Credits
Sec. 1. (a) Except as provided in subsection (b), if for a
particular taxable year a resident is liable for an income tax
imposed by a county, city, town, or other local governmental entity
located outside Indiana, that resident is entitled to a credit against
the tax liability imposed under this article for that same taxable
year. The amount of the credit equals the amount of tax imposed
by the other governmental entity on income derived from sources
outside Indiana and subject to the tax under this article. However,
the credit provided by this section may not reduce a resident's tax
liability under this article to an amount less than would have been
owed if the income subject to taxation by the other governmental
entity had been ignored.
(b) The credit provided by this section does not apply to a
resident to the extent that the other governmental entity provides
for a credit to the resident for the amount of taxes owed under this
article.
(c) To claim the credit provided by this section, a resident must
provide the department of state revenue with satisfactory evidence
that the taxpayer is entitled to the credit.
Sec. 2. (a) If for a particular taxable year a taxpayer is, or a
taxpayer and the taxpayer's spouse who file a joint return are,
allowed a credit for the elderly or totally disabled under Section 22
of the Internal Revenue Code, the taxpayer is, or the taxpayer and
the taxpayer's spouse are, entitled to a credit against the tax
liability under this article for that same taxable year. The amount
of the credit equals the lesser of:
(1) the product of:
(A) the credit for the elderly or totally disabled for that
same taxable year; multiplied by
(B) a fraction, the:
(i) numerator of which is the tax rate imposed under this
article against the taxpayer or the taxpayer and the
taxpayer's spouse; and
(ii) denominator of which is fifteen-hundredths (0.15); or
(2) the amount of tax imposed on the taxpayer or the taxpayer
and the taxpayer's spouse.
(b) If a taxpayer and the taxpayer's spouse file a joint return
and are subject to different county income tax rates for the same
taxable year, the taxpayer and the taxpayer's spouse shall compute
the credit under this section by using the formula provided by
subsection (a), except that they shall use the average of the two (2)
county income tax rates imposed against them as the numerator
referred to in subsection (a)(1)(B)(i).
Chapter 11. Administration
Sec. 1. Except as otherwise provided in this article, all
provisions of the adjusted gross income tax law (IC 6-3)
concerning:
(1) definitions;
(2) declarations of estimated tax;
(3) filing of returns;
(4) deductions or exemptions from adjusted gross income;
(5) remittances;
(6) incorporation of the provisions of the Internal Revenue
Code;
(7) penalties and interest; and
(8) exclusion of military pay credits for withholding;
apply to the imposition, collection, and administration of the tax
imposed by this article.
Sec. 2. The provisions of IC 6-3-1-3.5(a)(6), IC 6-3-3-3,
IC 6-3-3-5, IC 6-3-4-4.1(h), IC 6-3-4-8.1(e), and IC 6-3-5-1 do not
apply to the tax imposed by this article.
Sec. 3. Each employer, including an employer making payments
by electronic funds transfer, shall report to the department of state
revenue for each reporting period the amount of tax withholdings
attributable to each county. The report must be made before the
later of the time that an employer that is not making an electronic
funds transfer is required to pay to the department of state revenue
amounts withheld during the reporting period or the date specified
by the department of state revenue.
Sec. 4. A taxpayer required to file estimated or annual state
adjusted gross income tax returns under IC 6-3-4-4.1, including
taxpayers making payments by electronic funds transfer, shall file
estimated tax returns and make payments of the tax imposed by
this article to the department of state revenue at the time or times
and in the installments specified under IC 6-3-4-4.1 for making
estimated state adjusted gross income tax returns by taxpayers not
making an electronic funds transfer.
Chapter 12. Collection and Distribution of Revenue to a County
Sec. 1. (a) A special account within the state general fund shall
be established for each county that adopts the tax. Estimated tax
payments, wage withholding payments, and other revenue derived
from the imposition of the tax by a county shall be deposited in that
county's account in the state general fund on at least a monthly
basis as the revenue is received.
(b) Overpayments of the county's tax deposited in a county's
account and other amounts deposited in a county's account in
error shall be withdrawn from the account whenever the amount
of the excess deposit is determined. If the amount that must be
withdrawn from a county's account exceeds the amount in the
account, the budget agency shall advance to the county's account
from the state general fund the amount necessary to make the
withdrawal. The advance shall be repaid from the account on the
schedule determined by the budget agency.
(c) Income earned on money held in a county's account becomes
a part of that account.
(d) Revenue remaining in a county's account at the end of a
fiscal year does not revert to the state general fund.
Sec. 2. The auditor of state shall distribute money in a county's
account, less the reserve that the department of state revenue
determines is necessary to meet probable withdrawals from the
fund for overpayments and other erroneous deposits, at least
monthly.
Sec. 3. All distributions from an account shall be made by
warrants issued by the auditor of state to the treasurer of state
ordering the appropriate payments.
Sec. 4. The department of state revenue shall at least annually
distribute to the county auditor for a county imposing a tax and to
the department sufficient information for the county auditor and
the department to determine that the distributions made to the
county are correct and complete. To the extent that the information
distributed under this section is confidential information under
IC 6-8.1-7, the department of state revenue shall require the
recipients to enter into an agreement under IC 6-8.1-7-1(b) before
providing the information.
Sec. 5. The department of state revenue, in addition to offsetting
withdrawals and the repayment of advances to an account against
money deposited in an account, may on a settlement date seek
repayment from a county of money erroneously distributed to the
county. The county auditor shall reimburse the county's account
for overpayments from county income tax distributions held by the
county. The amount of the reimbursement shall be proportionately
deducted from all allocations made to the political subdivisions in
the county except allocations made to pay or fund any bonds, lease
obligations, or other obligations (as defined in IC 5-1-3-1) for
which county adjusted gross income tax, county option income tax,
county economic development tax, or county income tax is pledged.
If the amount held by the county is insufficient to reimburse the
county's account, the county fiscal body may authorize an advance
of money from the county general fund to make the reimbursement.
The advance shall be repaid on the schedule determined by the
county fiscal body.
Chapter 13. Distribution of Revenue by the County Auditor
Sec. 1. When taxes are distributed to a county under IC 6-11-12,
the county auditor shall:
(1) determine the part of the distribution that is attributable
to the part of the tax imposed under IC 6-11-7, IC 6-11-8, and
each additional excluded tax rate imposed under IC 6-11-9;
(2) determine the part of each political subdivision's allocation
of taxes imposed under IC 6-11-7 and IC 6-11-8 that must be
retained under this article, including amounts retained as a
result of assignments of taxes made by a political subdivision
under IC 6-11-14; and
(3) distribute the remainder of the taxes among the political
subdivisions in the county according to the formulas
established under this article.
Sec. 2. Amounts retained under section 1 of this chapter shall be
distributed as required to carry out the purposes of the special
allocation or other purpose for which the taxes are retained.
Sec. 3. To assist county auditors, the department shall compute
allocations, amounts that must be retained, and amounts to be
distributed for each purpose.
Sec. 4. The department shall establish a schedule for
transmitting the information computed under section 3 of this
chapter to each county auditor. The information must be
accompanied by sufficient supporting work papers for the county
auditor to verify the accuracy and completeness of the
computations.
Sec. 5. A county auditor shall provide each affected political
subdivision, individual, or other entity entitled to a distribution
with:
(1) advance notice of the policies established under this
chapter; and
(2) sufficient documentation for the entity to verify the
accuracy and completeness of the entity's distributions under
this article.
The county auditor shall give the notices and documentation under
this section on the schedule, if any, specified by the department.
Sec. 6. Subject to this chapter and any other law, a council may
adopt an ordinance to establish the:
(1) schedule on which distributions are made;
(2) amount of reserve that the county auditor shall retain to
reimburse the state for any overpayment to the county under
IC 6-11-12;
under this section.
(f) Money received under this section shall be treated for all
purposes as property tax levies.
Sec. 5. (a) This section applies to a county that received a
certified distribution of county adjusted gross income taxes in
2006.
(b) In addition to any other property tax replacement credit or
homestead credit granted under this chapter, part of the amount
that would otherwise be allocated to each eligible civil taxing unit,
as determined under IC 6-11-8-15, under IC 6-11-8 must be
retained to replace revenue lost to an eligible civil taxing unit as the
result of granting additional property tax replacement credits
under this section.
(c) The amount to be retained is the amount raised by the tax
rate that is equal to the part of the county adjusted gross income
tax rate that was imposed to raise the part of the county's 2006
certified distribution that was:
(1) allocated to eligible civil taxing units (as determined under
IC 6-11-8-15) as certified shares; and
(2) used as additional property tax replacement credits.
(d) An additional property tax replacement credit is established
in each county to which this section applies. The department shall
set the percentage of property tax replacement credits so that the
total amount of additional property tax replacement credits
granted equals the amount of the tax retained under this section.
The additional property tax replacement credit shall be uniformly
applied to property tax liability on taxable property in the county
of each eligible civil taxing unit, as determined under IC 6-11-8-15,
for controlled property taxes.
(e) The county auditor shall retain the amount necessary for the
additional property tax replacement credit as a special allocation.
The retained amount shall be allocated among political
subdivisions in proportion to the property tax revenue lost as the
result of granting additional property tax replacement credits
under this section.
(f) Money received under this section shall be treated for all
purposes as property tax levies.
under this section. The department shall set the percentage of
property tax replacement credits so that the total amount of
additional property tax replacement credits granted equals the
amount of the tax retained under this section. The additional
property tax replacement credit shall be uniformly applied to all
taxpayer property tax liability for controlled property taxes
imposed by the political subdivision.
(d) The county auditor shall retain the amount necessary for the
additional property tax replacement credit as a special allocation.
The retained amount shall be allocated to the political subdivision
in proportion to the controlled property tax revenue lost as the
result of granting additional property tax replacement credits
under this section.
(e) Money received under this section shall be treated for all
purposes as controlled property tax levies.
Chapter 17. Actions Taken by Fiscal Body Other Than Council
Sec. 1. This chapter applies to an action that under this article
may be taken by a fiscal body that is not acting as a member of the
council.
Sec. 2. A fiscal body may take an action after publishing a notice
under IC 5-3-1.
Sec. 3. As soon as practical after its adoption, a certified copy
of an ordinance or resolution adopted by a fiscal body shall be
distributed to the:
(1) county auditor;
(2) department; and
(3) department of state revenue.
Sec. 4. An ordinance or resolution adopted by a fiscal body may
be amended or rescinded by adopting a subsequent ordinance or
resolution.
Sec. 5. An ordinance or resolution adopted by a fiscal body
before September 16 initially applies to the ensuing year. Unless
waived by the department for good cause, an ordinance or
resolution adopted after September 15 in a year initially applies to
the year following the year of adoption by two (2) years.
Chapter 18. Bonds
Sec. 1. Notwithstanding any other law, if a political subdivision
desires to issue obligations or enter into leases, payable wholly or
in part by the tax, the obligations of the political subdivision or any
lessor may be sold at public sale in accordance with IC 5-1-11 or
at negotiated sale.
Sec. 2. A pledge of tax revenues under this article is enforceable
in accordance with IC 5-1-14.
Sec. 3. With respect to obligations for which a pledge has been
made under this article, the general assembly covenants with the
county and the purchasers or owners of those obligations that this
article will not be repealed or amended in any manner that will
adversely affect the tax collected under this article as long as the
principal of or interest on those obligations is unpaid.
additional amount of property taxes is not eligible for:
(1) homestead credits under IC 6-1.1-20.9-2 and property tax
replacement credits under IC 6-1.1-21-5; and
(2) distributions under IC 6-1.1-21 to replace revenue lost
from the granting of homestead credits under IC 6-1.1-20.9-2
and property tax replacement credits under IC 6-1.1-21-5.
Sec. 6. A political subdivision's allocation of income taxes under
IC 6-11-7 is calculated based on the political subdivision's
controlled tax limit.
Sec. 7. A political subdivision is not required to spend the entire
amount of the political subdivision's controlled tax limit for a year
or impose property taxes equal to the amount of the political
subdivision's controlled levy limit.
Sec. 8. The use of controlled income taxes to increase the
amount of money in:
(1) the political subdivision's rainy day fund; or
(2) another fund that the political subdivision is saving under
a written plan approved by the department;
does not reduce the political subdivision's controlled tax limit or
controlled levy limit.
Sec. 9. The use of controlled income taxes as property tax
replacement credits, homestead credits, or other credits under
IC 6-11-15 does not reduce the political subdivision's controlled
tax limit or controlled levy limit.
Sec. 10. A temporary adjustment, as determined by the
department, in the amount of controlled income taxes or controlled
property taxes that are imposed for a political subdivision is
disregarded for purposes of determining the political subdivision's
controlled tax limit and controlled levy limit for the following year.
Sec. 11. The application of money from:
(1) the political subdivision's rainy day fund;
(2) an excess revenue fund account;
(3) excluded income taxes under IC 6-11-9 or IC 6-11-16; or
(4) another source;
to reduce the controlled income taxes or controlled property taxes
imposed for the political subdivision in a year shall be treated as a
temporary adjustment.
controlled levy limit calculated by the department.
Sec. 2. The department shall annually calculate a political
subdivision's controlled tax limit and controlled levy limit under
this article.
Sec. 3. (a) This section does not apply to a school corporation.
(b) Subject to any adjustment allowed or required under this
article, a political subdivision's controlled tax limit in a county for
the ensuing year is equal to the amount determined under STEP
SEVEN of the following formula:
STEP ONE: Determine the amount of controlled property
taxes, as adjusted under IC 6-13-4-10, and controlled income
taxes under IC 6-11-7 imposed in the county for the political
subdivision for the immediately preceding year, as certified by
the department and adjusted to eliminate the:
(A) effects of any temporary adjustments in the certified
amount; and
(B) cumulative effects of any incorrect data, computations,
and advertisements on the certified amount;
as determined by the department.
STEP TWO: Multiply the STEP ONE amount by the greater
of the political subdivision's:
(A) tax growth quotient; or
(B) assessed value growth quotient;
for the ensuing year.
STEP THREE: Determine the lesser of one and fifteen
hundredths (1.15) or the quotient of:
(A) the assessed value of all taxable property subject to the
political subdivision's controlled property tax levy for the
ensuing year; divided by
(B) the assessed value of all taxable property that is
subject to the political subdivision's controlled property
tax levy:
(i) for the ensuing year; and
(ii) that is contained in the geographic area that was
subject to the political subdivision's controlled property
tax levy in the preceding year.
STEP FOUR: Determine the greater of:
(A) the amount determined in STEP THREE; or
(B) one (1).
STEP FIVE: Multiply the amount determined in STEP TWO
by the amount determined in STEP FOUR.
STEP SIX: Add the amount determined under STEP TWO
and:
(A) the amount paid by the annexed area during the
immediately preceding year for services that the political
subdivision must provide to that area during the ensuing
year as a result of the annexation, if the boundary change
involved an annexation of an area to which the political
subdivision provided services on a contractual basis in the
immediately preceding year; or
(B) zero dollars ($0), if:
(i) the boundary change did not involve an annexation of
an area to which the political subdivision provided
services on a contractual basis in the immediately
preceding year; or
(ii) the political subdivision will not continue to provide
the services previously provided on a contractual basis
in the ensuing year.
STEP SEVEN: Determine the greater of STEP FIVE or STEP
SIX.
Sec. 4. A political subdivision's tax growth quotient for the
ensuing year is the amount determined under STEP FOUR of the
following formula:
STEP ONE: For each of the six (6) years preceding the year
by two (2), divide the Indiana nonfarm personal income for
the year by the Indiana nonfarm personal income for the year
immediately preceding that year, rounding to the nearest
one-thousandth (0.001).
STEP TWO: Determine the sum of the STEP ONE results.
STEP THREE: Divide the STEP TWO result by six (6),
rounding to the nearest one-thousandth (0.001).
STEP FOUR: Determine the lesser of the following:
(A) The STEP THREE quotient.
(B) One and six-hundredths (1.06).
Sec. 5. A political subdivision's assessed value growth quotient
for the ensuing year is the amount determined under STEP
THREE of the following formula:
STEP ONE: Determine the three (3) years that most
immediately precede the ensuing year and in which a
statewide general reassessment of real property does not first
become effective.
STEP TWO: Compute separately, for each of the years
determined in STEP ONE, the quotient (rounded to the
nearest ten-thousandth (0.0001)) of the:
(A) sum of:
(i) the political subdivision's total assessed value of all
taxable property; plus
(ii) the total assessed value of property tax deductions in
the political subdivision under IC 6-1.1-12-41 or
IC 6-1.1-12-42;
in the particular year; divided by
(B) the sum of:
(i) the political subdivision's total assessed value of all
taxable property; plus
(ii) the total assessed value of property tax deductions in
the political subdivision under IC 6-1.1-12-41 or
IC 6-1.1-12-42;
in the year immediately preceding the particular year.
STEP THREE: Divide the sum of the three (3) quotients
computed in STEP TWO by three (3).
Sec. 6. (a) A separate controlled tax limit shall be computed for
each of the following:
(1) The school corporation's school general fund and charter
schools under IC 6-1.1-19-1.5.
(2) The school corporation's transportation fund under
IC 21-2-11.5-3.
(3) The school corporation's school bus replacement fund
under IC 21-2-11.5-3.
(b) A school corporation's controlled tax limit for the:
(1) school corporation's school general fund and charter
schools under IC 6-1.1-19-1.5 is the maximum controlled tax
that may be imposed in the county under IC 6-1.1-19-1.5;
(2) school corporation's transportation fund under
IC 21-2-11.5-3 is the maximum controlled tax that may be
imposed in the county under IC 21-2-11.5-3; and
(3) school corporation's school bus replacement fund under
IC 21-2-11.5-3 is the maximum controlled tax that may be
imposed in the county under IC 21-2-11.5-3.
Sec. 7. The department shall compute a controlled tax limit for
each political subdivision that imposed a property tax in 2006 as
if this chapter applied to the political subdivision in 2006. The
controlled tax limit computed under this section shall be used in
computing a political subdivision's:
(1) 2007 controlled tax limit under section 3 of this chapter;
and
(2) annual controlled tax increase that is eligible to be funded
from income taxes under IC 6-11.
Sec. 8. The 2006 controlled tax limit for a political subdivision,
other than a school corporation, is the sum of the following:
(1) The remainder, without any adjustment under
IC 6-13-4-10, of the total amount of property taxes certified
by the department to be imposed in the county for the political
subdivision in 2006:
(A) after deducting the property taxes attributable to
excluded taxes, as certified by the department; and
(B) adjusted to eliminate the:
(i) cumulative effects of any temporary adjustments in
the certified amount; and
(ii) cumulative effects of any incorrect data,
computations, and advertisements on the certified
amount;
as determined by the department.
(2) The amounts, if any, of county adjusted gross income taxes
(before its repeal) that were applied by the taxing units in the
county as property tax replacement credits to reduce the
individual levies of the taxing units, as provided in
IC 6-3.5-1.1 (before its repeal) in 2006.
(3) The amounts, if any, by which the maximum permissible
ad valorem property tax levies of the taxing units of the
county were reduced under IC 6-1.1-18.5-3(b) STEP EIGHT
(before its repeal) in 2006.
(4) The difference between:
(A) the amount determined in IC 6-1.1-18.5-3(e) STEP
FOUR (before its repeal); minus
(B) the amount the civil taxing units' levies were increased
because of the reduction in the civil taxing units' base year
certified shares under IC 6-1.1-18.5-3(e) (before its
repeal);
in 2006.
Sec. 9. A school corporation's 2006 controlled tax limit is the
school corporation's controlled tax limit, as determined under
section 6 of this chapter for 2006.
Sec. 10. Except as permitted to be increased under IC 6-12-5-6,
a political subdivision's controlled levy limit for the ensuing year
is the lesser of the following:
(1) The political subdivision's controlled levy limit for the
immediately preceding year.
(2) The political subdivision's controlled tax limit for the
ensuing year.
Sec. 11. The department shall compute a controlled levy limit
for each political subdivision that imposed a property tax in 2006
as if this chapter applied to the political subdivision in 2006. The
controlled levy limit computed under this section shall be used in
computing a political subdivision's:
(1) 2007 controlled levy limit under section 10 of this chapter;
and
(2) annual controlled tax increase that is eligible to be funded
from income taxes under IC 6-11.
Sec. 12. A political subdivision's 2006 controlled levy limit is
equal to the political subdivision's 2006 controlled tax limit.
Sec. 13. (a) This section applies to the determination of the
controlled tax limit and controlled levy limit for a political
subdivision:
(1) for which no certified taxes were imposed in the
immediately preceding year; and
(2) that existed on March 1 of the preceding year.
(b) The controlled tax limit for a political subdivision described
in subsection (a) in the ensuing year is the amount certified under
subsection (c).
(c) The political subdivision shall refer its proposed budget for
the ensuing year to the department before July 2 of the
immediately preceding year. The department shall make the final
determination concerning the political subdivision's budget,
controlled levy limit, and controlled tax limit for the ensuing year
before the immediately following August 2. The amount certified
under this section is the political subdivision's controlled levy limit
and controlled tax limit for the ensuing year.
Chapter 5. Adjustments
Sec. 1. The department may make an adjustment for any of the
reasons specified in this article or IC 6-13. The department may
increase a controlled levy limit only as permitted under section 6
of this chapter.
Sec. 2. Subject to this article, an adjustment under this article
may be made on the department's own motion or after an appeal
under IC 6-13. To the extent possible, the department shall make
adjustments required by this article before certifying a political
subdivision's controlled tax limit and controlled tax levy to the
political subdivision under IC 6-13-5.
Sec. 3. An adjustment may be a:
(1) permanent adjustment that affects the computation of the
political subdivision's controlled tax limit or controlled tax
levy, or both, in all future years; or
(2) temporary adjustment that affects the computation of the
political subdivision's controlled tax limit or controlled tax
levy, or both, in only the years specified by the department;
as determined by the department. The department may make an
adjustment as a temporary adjustment only if the department
determines that a law specifies that the adjustment is temporary,
a permanent adjustment is not reasonably necessary to carry out
the continuing governmental responsibilities of a political
subdivision, or the conditions that justify the adjustment will not
have a continuing effect on the political subdivision.
Sec. 4. If an adjustment is temporary, the department shall
determine the years to which the adjustment applies.
Sec. 5. If a political subdivision is located in more than one (1)
county and an adjustment is not directly related to the controlled
taxes raised in a particular county, the department may apportion
the adjustment among the counties in which the political
subdivision is located in proportion to any of the following:
(1) Each county's share of the controlled taxes certified by the
department for the political subdivision in the immediately
preceding year, as determined without considering the
adjustment.
(2) Each county's share of the assessed valuation of taxable
property in the political subdivision, if an apportionment
under subdivision (1) does not justly reflect the obligation of
each county to provide funding for the political subdivision.
(3) The cost of the services provided to each county, if an
apportionment under subdivisions (1) and (2) do not justly
reflect the obligation of each county to provide funding for the
political subdivision.
(4) Any other formula that justly reflects the obligation of
each county to provide funding for the political subdivision,
if an apportionment under subdivisions (1) through (3) do not
justly reflect the obligation of each county to provide funding
for the political subdivision.
Sec. 6. The department may increase a political subdivision's
controlled levy limit only:
(1) as allowed under IC 6-11-4-13 concerning the
establishment of a controlled tax limit and controlled levy
limit for a new political subdivision;
(2) to make a temporary adjustment to fund a shortfall in
property taxes or correct the cumulative effects of incorrect
data, computations, or advertisements on property taxes in
appropriate circumstances; or
(3) by the amount by which another political subdivision's
controlled levy limit is reduced.
A political subdivision's controlled tax limit is increased by the
amount and for the years that an increase is granted under this
section.
Sec. 7. An adjustment under this article or IC 6-13 is subject to
judicial review in the same manner as an appeal under IC 6-13.
Sec. 8. The department may make an adjustment if a political
subdivision, in an appeal filed under IC 6-13, demonstrates that the
political subdivision cannot carry out the governmental functions
committed to it by law without the adjustment unless the political
subdivision is given the authority for which it petitions. The
amount of the adjustment is that which is reasonably necessary for
the political subdivision to carry out its governmental functions
committed to it by law.
Sec. 9. The department may make an adjustment if a political
subdivision, in an appeal filed under IC 6-13, demonstrates that the
adjustment is reasonably necessary to fund the operation of:
(1) a new facility opened by the political subdivision after
December 31, 1972; or
(2) an existing facility that has not been used for at least three
(3) years and that is being reopened by the political
subdivision after July 1, 1988.
The adjustment, if approved, shall be an amount equal to the
increase in costs resulting from the activity described in
subdivision (1) or (2). In determining the amount of the increased
costs, the department shall consider the costs to the political
subdivision of complying with safety, health, space, heat, or
lighting standards required by state or federal law or regulation
and the other physical operation costs that in the opinion of the
department justify an adjustment.
Sec. 10. The department may make an adjustment if a political
subdivision, in an appeal filed under IC 6-13, demonstrates that the
adjustment is reasonably necessary due to increased costs of the
political subdivision resulting from:
(1) annexation;
(2) consolidation; or
(3) other extensions of governmental services by the political
subdivision to additional geographic areas or persons.
The amount of the adjustment is the amount reasonably necessary
to pay the increased costs.
Sec. 11. The department may make an adjustment to eliminate
the effects of temporary adjustments made by the department.
Sec. 12. Subject to section 13 of this chapter, the department
may make an adjustment to eliminate the cumulative effects of
incorrect data, computations, or advertisements on controlled
taxes. If the adjustment is made for an ensuing year after income
tax rates have been certified, the department may order a
distribution from the political subdivision's rainy day fund for the
ensuing year to replace the amount lost in the ensuing year as a
result of the incorrect data, computations, or advertisements.
Sec. 13. The primary method of funding a shortfall is to order
a distribution from the rainy day fund to cover the shortfall. The
amount used to cover the shortfall would be replaced through the
imposition of an excluded income tax under IC 6-11-9 in the years
determined by the department. However, for good cause, the
department may make an adjustment to eliminate the effects of a
shortfall of controlled taxes.
Sec. 14. The department may make a temporary adjustment to
eliminate a political subdivision's excessive cash balances:
(1) that a political subdivision:
(A) has accumulated; or
(B) will accumulate in the ensuing year if an adjustment is
not made under this section; and
(2) that are available for the purposes for which a controlled
tax would otherwise be imposed.
Sec. 15. The department may not consider any of the following
as excessive cash balances:
(1) Money in a political subdivision's rainy day fund under
IC 36-1-8-5.1.
(2) Money that is being accumulated by a political subdivision
in a rainy day fund or for another purpose approved by the
department.
(3) Gifts, bequests, and grants from a private individual, the
federal government, or another entity.
(4) Money designated in a law as miscellaneous revenue or
otherwise designated by law or rule of the department as
revenue that is not to be considered in determining a political
subdivision's controlled tax limit.
(5) Excluded taxes.
(6) The proceeds of bonds or other obligations approved by
the department.
Sec. 16. The department shall consider money in a political
subdivision's excess revenue fund account under IC 6-13-22 as an
excessive cash balance.
Sec. 17. The department may make an adjustment to reflect a
reduction in the:
(1) political subdivision's services;
(2) political subdivision's cost of services; or
(3) geographic areas or persons served by the political
subdivision.
Sec. 18. The department shall make the adjustments reasonably
necessary to do the following:
(1) To pay the principal or interest on an obligation to meet
the requirements of the family and children's fund for child
services (as defined in IC 12-19-7-1) other than loans and
bonds payable under IC 6-15-3-8.
(2) To pay the principal or interest on an obligation to meet
the requirements of the children's psychiatric residential
treatment services fund for children's psychiatric residential
treatment services (as defined in IC 12-19-7.5-1) other than
loans and bonds payable under IC 6-15-3-8.
Chapter 6. Additional Relief and Requirements
Sec. 1. If grounds exist for an adjustment under this article or
IC 6-13, the department may do any of the following:
(1) Order a transfer of money from the political subdivision's
rainy day fund under IC 36-1-8-5.1 to temporarily replace the
amount of the shortfall.
(2) Order a transfer from the political subdivision's excess
revenue fund account.
(3) Grant any necessary permission for a grant or grants
from any funds of the state that are available for the purpose.
(4) Grant any necessary permission for a loan or loans from
any funds of the state that are available for the purpose.
(5) Grant any necessary permission for the political
subdivision to borrow funds from a source other than the
state or any necessary assistance in obtaining the loan.
(6) Grant any necessary permission for an advance or
advances of funds that will become payable to the political
subdivision under any law providing for the payment of state
funds to the political subdivision.
(7) Grant permission to the political subdivision to:
(A) cancel any unpaid obligation of the political
subdivision's general fund to the political subdivision's
cumulative building fund; or
(B) use, for general fund purposes, any unobligated
balance in the political subdivision's cumulative building
fund and the proceeds of any levy made or to be made by
the political subdivision for the political subdivision's
cumulative building fund.
(8) Grant permission, subject to any agreement with the
bondholders, to use, for general fund purposes, any
unobligated balance in any construction fund, including any
unobligated proceeds of a sale of the political subdivision's
general obligation bonds.
Sec. 2. (a) This section applies only to a school corporation.
(b) This section does not apply to an adjustment granted for any
of the following:
(1) An adjustment for the transportation fund that is
necessary because of a transportation operating cost increase
of at least ten percent (10%) over the preceding year as a
result of at least one (1) of the following:
(A) A fuel expense increase.
(B) A significant increase in the number of students
enrolled in the school corporation who need transportation
or a significant increase in the mileage traveled by the
school corporation's buses due to students enrolled in the
school corporation as compared to the previous year.
(C) A significant increase in the number of students
enrolled in special education who need transportation or
a significant increase in the mileage traveled by the school
corporation's buses due to students enrolled in special
education as compared to the previous year.
(D) Increased transportation operating costs due to
compliance with a court ordered desegregation plan.
(E) The closure of a school building within the school
corporation that results in a significant increase in the
distances that students must be transported to attend
school in another school building.
(2) An adjustment that is necessary because the amount of
total revenue actually received or estimated to be received by
the school corporation on behalf of students transferring to
the school corporation is less than the total transfer tuition
payments actually made or estimated to be made on behalf of
students transferring from the school corporation.
(c) Every school corporation with respect to which the
department authorizes an adjustment under IC 6-12-5-8 is, if the
school corporation accepts the adjustment, prohibited throughout
any year in which or for which the school corporation receives the
adjustment from taking any of the prohibited actions described in
this section without the prior approval of the department.
(d) The prohibited actions are any of the following:
(1) The acquisition of real estate for school building purposes,
the construction of new school buildings, or the remodeling or
renovation of existing school buildings.
(2) The making of a lease of real or personal property for an
annual rental or the incurring of any other contractual
obligation (except an employment contract for a new
employee, which contract is to supersede the contract of a
terminating employee) calling for an annual outlay by the
school corporation in excess of ten thousand dollars ($10,000).
(3) The purchase of personal property for a consideration in
excess of ten thousand dollars ($10,000).
(4) The adoption or advertising of a budget, tax levy, or tax
rate for any year.
(e) If a school corporation subject to the controls described in
this section takes any of the actions described in subsection (d)
without having obtained the prior approval of the department, the
department may take appropriate steps to reduce or terminate any
adjustment granted under IC 6-12-5 or any other relief granted
under section 1 of this chapter.
Sec. 3. (a) In addition to, or instead of, any adjustment under
IC 6-12-5, the department may permit a school corporation to
make a referendum tax levy for the ensuing year under this section
if a majority of the individuals voting in a referendum held in the
school corporation approves the school corporation making a
referendum tax levy.
(b) If the school corporation requests that the department take
the steps necessary to cause a referendum to be conducted, the
department shall proceed as follows:
(1) The question to be submitted to the voters in the
referendum must read as follows:
"For the __ (insert number) year or years immediately
following the holding of the referendum, shall the school
corporation impose a property tax rate that does not
exceed _____________ (insert amount) cents ($0.__)
(insert amount) on each one hundred dollars ($100) of
assessed valuation and that is in addition to the school
corporation's normal tax rate?".
The voters in a referendum may not approve a referendum
tax levy that is imposed for more than seven (7) years.
However, a referendum tax levy may be reimposed or
extended under this section.
(2) The department shall act under IC 3-10-9-3 to certify the
question to be voted on at the referendum to the county
election board of each county in which any part of the school
corporation lies. Each county clerk shall, upon receiving the
question certified by the department, call a meeting of the
county election board to make arrangements for the
referendum. The referendum shall be held in the next primary
or general election in which all the registered voters who are
residents of the school corporation are entitled to vote after
certification of the question under IC 3-10-9-3. However, if
the referendum would be held at a primary or general election
more than six (6) months after certification by the
department, the referendum shall be held at a special election
to be conducted not less than ninety (90) days after the
question is certified to the circuit court clerk or clerks by the
department. The school corporation shall notify each affected
county election board of the date on which the school
corporation desires that the referendum be held, and, if
practicable, the referendum shall be held on the day specified
by the school corporation. The referendum shall be held
under the direction of the county election board, which shall
take all steps necessary to carry out the referendum. If a
primary election, general election, or special election is held
during the sixty (60) days preceding or following the special
election described in this subdivision and is held in an election
district that includes some, but not all, of the school
corporation, the county election board may also adopt orders
to specify when the registration period for the elections cease
and resume under IC 3-7-13-10. Not less than ten (10) days
before the date on which the referendum is to be held, the
county election board shall cause notice of the question that is
to be voted upon at the referendum to be published in
accordance with IC 5-3-1. If the referendum is not conducted
at a primary or general election, the school corporation in
which the referendum is to be held shall pay all the costs of
holding the referendum.
(3) Each county election board shall cause the question
certified to the circuit court clerk by the tax control board to
be placed on the ballot in the form prescribed by IC 3-10-9-4.
The county election board shall also cause an adequate supply
of ballots and voting equipment to be delivered to the precinct
election board of each precinct in which the referendum is to
be held.
(4) The individuals entitled to vote in the referendum are all
the registered voters resident in the school corporation.
(5) Each precinct election board shall count the affirmative
votes and the negative votes cast in the referendum and shall
certify those two (2) totals to the county election board of each
county in which the referendum is held. The circuit court clerk
of each county shall, immediately after the votes cast in the
referendum have been counted, certify the results of the
referendum to the department. If a majority of the individuals
who voted in the referendum voted "yes" on the referendum
question, the department, upon being notified of the result of
the referendum, shall take prompt and appropriate steps to
notify the school corporation that the appellant school
corporation is authorized to collect, for the year that next
follows the year in which the referendum is held, a
referendum tax levy not greater than the amount approved in
the referendum. The referendum tax levy may be imposed for
the number of years approved by the voters following the
referendum for the school corporation in which the
referendum is held. If a majority of the individuals who voted
in the referendum voted "yes" on the referendum question,
the school corporation shall establish a referendum tax levy
fund under IC 21-2-11.6. A school corporation's referendum
tax levy may not be considered in the determination of the
school corporation's state tuition support under IC 21-3-1.7
or the determination of the school corporation's controlled
levy limit or controlled tax limit under this article and
IC 21-3-1.7. If a majority of the persons who voted in the
referendum did not vote "yes" on the referendum question,
the school corporation may not make any referendum levy for
its general fund, and another referendum under this section
may not be held for a period of one (1) year after the date of
the referendum.
Sec. 4. With respect to any political subdivision to which a loan
or an advance of state funds is made under section 1 of this
chapter, or for which a loan or an advance is recommended under
section 1 of this chapter for purposes other than for the purpose of
remedying a shortfall under IC 6-13-17-3, the department may
authorize an additional excluded property tax levy for a specified
year solely for the purpose of enabling the political subdivision to
repay the loan or advance. The department shall, in the
department's order, specify the amount of the authorized
additional excluded property tax levy and take appropriate steps
to ensure that the amount of the proceeds of the additional
excluded property tax levy that should be used for loan repayment
purposes is not used for any other purpose. The department may
not exercise the power described in this section for a particular
subdivision for more than one (1) year in any period of four (4)
consecutive years.
to a contract for architectural services for a school building
construction project.
(4) One (1) member, appointed by the speaker of the house of
representatives, who must be a financial adviser who is not
actively employed as a financial adviser to a school
corporation that is involved in a school building construction
project or who is not otherwise a party to a contract for
financial advisory services for a school building construction
project.
Sec. 6. The nonvoting members of the board shall be appointed
as follows:
(1) One (1) member of the house of representatives, appointed
by the speaker of the house.
(2) One (1) member of the senate, appointed by the president
pro tempore of the senate.
Sec. 7. A member of the board serves at the will of the member's
appointing authority.
Sec. 8. The board shall annually hold an organizational meeting.
At this organizational meeting, the board shall elect a chairperson
and a secretary from its membership. The board shall meet after
each organizational meeting as often as its business requires.
Sec. 9. The department shall provide the board with rooms,
staff, and secretarial assistance for its meetings.
Sec. 10. (a) Members of the board serve without compensation,
except as provided in this section.
(b) Each member of the board who is not a state employee is
entitled to receive both of the following:
(1) The minimum salary per diem provided by
IC 4-10-11-2.1(b).
(2) Reimbursement for travel expenses and other expenses
actually incurred in connection with the member's duties, as
provided in the state travel policies and procedures
established by the Indiana department of administration and
approved by the budget agency.
(c) Each member of the board who is a state employee is entitled
to reimbursement for travel expenses and other expenses actually
incurred in connection with the member's duties, as provided in the
state travel policies and procedures established by the Indiana
department of administration and approved by the budget agency.
Sec. 11. To carry out its responsibilities, the board has the
power to:
(1) conduct hearings; and
(2) require any officer or member of a political subdivision to:
(A) appear before the board; or
(B) provide the board with any relevant records or books.
Sec. 12. If an officer or a member:
(1) fails to appear at a hearing of the board after having been
given written notice from the board requiring attendance of
the officer or member; or
(2) fails to produce for the board's use the books and records
that the local government tax control board by written notice
required the officer or member to produce;
the board may file an affidavit in the circuit court in the
jurisdiction in which the officer or member may be found setting
forth the facts of the failure.
Sec. 13. Upon the filing of an affidavit under section 12 of this
chapter, the circuit court shall promptly issue a summons, and the
sheriff of the county within which the circuit court is sitting shall
serve the summons. The summons must command the officer or
member to:
(1) appear before the board;
(2) provide information to the board; or
(3) produce books and records for the board's use;
as the case may be.
Sec. 14. Disobedience of the summons constitutes, and is
punishable as, a contempt of the circuit court that issued the
summons.
Sec. 15. All expenses incident to the filing of an affidavit under
section 12 of this chapter and the issuance and service of a
summons shall be charged to the officer or member against whom
the summons is issued, unless the circuit court finds that the officer
or member was acting in good faith and with reasonable cause. If
the circuit court finds that the officer or member was acting in
good faith and with reasonable cause or if an affidavit is filed and
no summons is issued, the expenses shall be charged against the
county in which the affidavit was filed and shall be allowed by the
proper fiscal officers of that county.
Sec. 16. In considering an appeal, the board has the power to:
(1) conduct hearings; and
(2) require any officer or member of a political subdivision to:
(A) appear before the board; or
(B) provide the board with any relevant records or books.
Sec. 17. If an officer or a member:
(1) fails to appear at a hearing of the board after having been
given written notice from the board requiring attendance of
the officer or member; or
(2) fails to produce for the board's use the books and records
that the board by written notice required the officer or
member to produce;
the board may file an affidavit in the circuit court in the
jurisdiction in which the officer or member may be found setting
forth the facts of the failure.
Sec. 18. Upon the filing of an affidavit under section 17 of this
chapter, the circuit court shall promptly issue a summons, and the
sheriff of the county within which the circuit court is sitting shall
serve the summons. The summons must command the officer or
member to:
(1) appear before the board;
(2) provide information to the board; or
(3) produce books and records for the board's use;
as the case may be.
Sec. 19. Disobedience of the summons constitutes, and is
punishable as, a contempt of the circuit court that issued the
summons.
Sec. 20. All expenses incident to the filing of an affidavit under
section 17 of this chapter and the issuance and service of a
summons shall be charged to the officer or member against whom
the summons is issued, unless the circuit court finds that the officer
or member was acting in good faith and with reasonable cause. If
the circuit court finds that the officer or member was acting in
good faith and with reasonable cause or if an affidavit is filed and
no summons is issued, the expenses shall be charged against the
county in which the affidavit was filed and shall be allowed by the
proper fiscal officers of that county.
Chapter 4. General Provisions
Sec. 1. Except as provided by this article, a political subdivision
may not expend money that is not appropriated in conformity with
this article.
Sec. 2. Except as corrected under IC 6-13-5 or adjusted under
another provision of this article, the appropriation of any
combination of:
(1) property taxes; or
(2) income taxes;
may not exceed the amount of income taxes and the property taxes
advertised under IC 6-13-7.
Sec. 3. A:
(1) political subdivision's budget, property taxes, property tax
rates, and allocations of income tax; and
(2) county's income tax and income tax rate;
for the ensuing year must be imposed or made at the amount or
rate certified by the department, as adjusted after any appeal to
the tax court as allowed by law. The excess is void.
Sec. 4. The excess of an expenditure that does not comply with
section 1 of this chapter or the part of a tax that exceeds an amount
or a rate permitted under sections 2 and 3 of this chapter is void.
Sec. 5. The department may prescribe the forms that must be
used and the information to be included in forms used under this
article. A form prescribed by the department must be approved by
the state board of accounts.
Sec. 6. The department may delay the time in which any action
required under this article must be completed for just cause. Notice
of the delay must be given to the affected political subdivisions.
Sec. 7. A political subdivision shall:
(1) use the forms prescribed by the department and approved
by the state board of accounts; and
(2) comply with any change in a deadline made under section
6 of this chapter.
Sec. 8. The department shall enforce this article, IC 6-11,
IC 6-12, IC 6-14, IC 6-15, and all other laws governing budgets
and the imposition of property taxes and income taxes by a
political subdivision or the council.
Sec. 9. To the extent waived by the department, failure of the
council, a political subdivision, the local government control board,
or the department to complete any action within the time or time
limits provided by this article or any other law does not invalidate
any expenditure, tax, or tax rate. In exercising any waiver under
this section, the department shall give taxpayers a reasonable
opportunity to appeal budgets, taxes, and tax rates under this
article.
Sec. 10. After 2006, for the purposes of certifying property taxes
and property tax rates and applying homestead credits and
property tax replacement credits:
(1) the department;
(2) county auditors; and
(3) county treasurers;
shall compute, apply, and bill property taxes, property tax rates,
homestead credits, and property tax replacement credits rates in
counties that received a certified distribution of county adjusted
gross income tax in 2006 the same way that the department
calculates and applies property taxes, property tax rates,
homestead credits, and property tax replacement credits in other
counties.
Sec. 11. The department may establish the method by which
calculations for controlled tax limits, controlled levy limits, total
allowable tax increase amounts, annual controlled tax increases,
taxes, tax rates, allocations, distributions, property tax
replacement credits, homestead credits, and other related matters
are rounded whenever a law does not establish the method for
rounding.
Chapter 5. Exchange of Revenue Data and Assumptions;
Correction of Errors
Sec. 1. Each year before July 2 or a later date specified by the
department, a county auditor shall certify to the department the
property tax and assessed value information specified by the
department.
public about the county income tax.
Sec. 5. As soon as practicable after the public hearing, the
county auditor shall prepare a written summary of the meeting and
distribute the summary to the chair of each fiscal body that is a
member of the council.
Chapter 7. Estimated Budget; Property Tax Levies; Public
Notice
Sec. 1. The proper officers of a political subdivision shall
formulate an estimated budget for the political subdivision that
identifies the source of revenue for each proposed appropriation.
However, state and federal government distributions for township
assistance, unemployment relief, old age pensions, and other funds
that may at any time be made available under The Economic
Security Act or under any other federal act that provides for civil
and public works projects need not be made part of the budget.
Sec. 2. The political subdivision shall give notice by publication
to taxpayers of at least the following:
(1) The estimated budget for the ensuing year that identifies
the sources of revenue for each fund that the political
subdivision proposes to use to fund the budget.
(2) If any proposed ordinances are pending before the council
in the county, a separate explanation of any changes the
political subdivision will make in its budget or in the sources
of revenue that the political subdivision proposes to use to
fund its budget if the pending ordinances are adopted.
(3) The current and proposed property tax levies of each
fund.
(4) The amount by which the political subdivision is seeking to
increase the political subdivision's controlled tax limit or
controlled levy limit, or both, by appeal under this article, the
sources of revenue that the political subdivision intends to use
in the ensuing year to fund the amount under appeal, and an
explanation of the extent to which the appeal will permanently
increase the amount and rate of taxes imposed in subsequent
years.
(5) The explanation of the political subdivision's budget, taxes,
and other revenues that are required by the department.
Sec. 3. A notice under this chapter may not include an amount
for a cumulative fund sinking fund, or other fund with a fixed rate
levy that is subject to IC 6-15 if notice is not given to the
department in conformity with IC 6-15.
Sec. 4. A political subdivision that is located in more than one
(1) county must publish a notice in each county. The notice
published for a county must separately state the amount of taxes
to be raised in the county for the estimated budget.
Sec. 5. In the notice, the political subdivision shall state the date,
time, and place at which at least one (1) public hearing will be held
on the political subdivision's estimated budget and proposed
sources of revenues to fund the estimated budget.
Sec. 6. The notice must be published at least two (2) times before
the hearing in accordance with IC 5-3-1. The first publication of
the notice must occur at least ten (10) days before the date fixed for
the public hearing.
Sec. 7. A political subdivision shall conduct each public hearing
on the political subdivision's estimated budget and proposed taxes
and other sources of revenue to fund the estimated budget at the
date, time, and place specified in the notices published under this
chapter. However, the political subdivision may move the location
of a hearing to another room by posting a notice at the door where
the published notice indicates the meeting will be held if:
(1) moving to another room is necessary to accommodate all
persons who wish to attend the hearing or if circumstances
make the original meeting place unuseable; and
(2) the site of the relocated hearing is easily accessible from
the original meeting place.
Sec. 8. A political subdivision that is located in more than one
(1) county may conduct a hearing required under this chapter in
any county in which the political subdivision is located. The board
of directors of a solid waste management district established under
IC 13-21 or IC 13-9.5-2 (before its repeal) shall conduct the public
hearing required under this chapter in accordance with the annual
notice of meetings published under IC 13-21-5-2.
Sec. 9. Except to the extent waived by the department, if a fiscal
body does not formulate and publish:
(1) its estimated budget; and
(2) the proposed revenue sources needed to fund the estimated
budget;
as required under this chapter, the most recent annual
appropriations and estimated budget revenue sources needed to
fund the estimated budget shall be treated as the estimated
appropriations and estimated budget revenue sources needed to
fund the estimated budget formulated by the political subdivision
for the ensuing budget year.
Chapter 8. Objection to Estimated Budget or Proposed Taxes
After Hearing
Sec. 1. Ten (10) or more property taxpayers may object to:
(1) a political subdivision's budget; or
(2) the property taxes proposed to fund the budget;
or both, by filing an objection petition with the fiscal officer of the
political subdivision not more than seven (7) days after the hearing.
Sec. 2. The objection petition must specifically identify the
provisions of the:
(1) budget; and
(2) property taxes;
to which the taxpayers object.
Chapter 9. Adoption of Budget
Sec. 1. The fiscal body shall meet each year to adopt one (1) or
more ordinances to fix:
(1) a budget for the political subdivision that identifies the
sources of revenue for each appropriation; and
(2) the property tax levies and property tax rates necessary to
fund the adopted budget;
for the ensuing year.
Sec. 2. Subject to section 7 of this chapter, the fiscal body must
comply with section 1 of this chapter before October 1.
Sec. 3. Except for Indianapolis, Marion County, or a second
class city, the last public hearing specified in the notice under
IC 6-13-7 must be completed at least ten (10) days before the fiscal
body of the political subdivision takes final action under section 1
of this chapter. A public hearing, by any committee or by the entire
fiscal body, for Indianapolis, Marion County, or a second class city
may be held at any time after introduction of the budget.
Sec. 4. If a petition is filed under IC 6-13-8 before the date that
the fiscal body takes final action on the budget, property tax levies,
and property tax rates, the fiscal body of the political subdivision
shall adopt with its budget a finding concerning the objections in
the petition and any testimony presented at the adoption hearing.
Sec. 5. (a) After a political subdivision adopts one (1) or more
ordinances under section 1 of this chapter, the political subdivision
shall immediately file with the county auditor the information in
subsection (b).
(b) The political subdivision must file the number of copies of
the following specified by the department with the county auditor:
(1) The budget for the political subdivision that identifies the
sources of revenue for each appropriation.
(2) The property tax levies and property tax rates that the
political subdivision imposed to fund the adopted budget.
(3) Any findings adopted under section 4 of this chapter.
Sec. 6. Except to the extent waived by the department, if a fiscal
body does not:
(1) fix a budget; and
(2) impose property tax levies and property tax rates;
as required under this chapter, budget, property tax levies, and
property tax rates most recently adopted in accordance with law
shall be treated as the budget, property tax levies, and property
tax rates adopted by the political subdivision for the ensuing year.
Sec. 7. (a) This section applies only to a school corporation that
is engaged in a pilot project to operate under a budget year that is
not a year.
(b) Before February 1 of each year, the officers of the school
corporation shall meet to fix the budget for the school corporation
for the ensuing budget year, with notice given by the same officers.
However, if a resolution adopted under subsection (d) is in effect,
the officers shall meet to fix the budget for the ensuing budget year
before the date specified in section 2 of this chapter.
(c) The school corporation shall file with the county auditor:
(1) a statement of the budget revenue resources needed to
fund the budget adopted by the school corporation for the
ensuing budget year;
(2) two (2) copies of the budget adopted by the school
corporation for the ensuing budget year; and
(3) any written notification from the department under this
article that specifies a proposed revision, reduction, or
increase in the budget adopted by the school corporation for
the ensuing budget year.
(d) The governing body of the school corporation may adopt a
resolution to cease using a school year budget year and return to
using a calendar year budget year. A resolution adopted under this
subsection must be adopted after January 1 and before July 1. The
school corporation's initial calendar year budget year following the
adoption of a resolution under this subsection begins on January
1 of the year following the year the resolution is adopted. The first
six (6) months of the initial calendar year budget for the school
corporation must be consistent with the last six (6) months of the
final school year budget fixed by the department of local
government finance before the adoption of a resolution under this
subsection.
(e) A resolution adopted under subsection (d) may be rescinded
by a subsequent resolution adopted by the governing body. If the
governing body of the school corporation rescinds a resolution
adopted under subsection (d) and returns to a school year budget
year, the school corporation's initial school year budget year
begins on July 1 following the adoption of the rescinding resolution
and ends on June 30 of the following year. The first six (6) months
of the initial school year budget for the school corporation must be
consistent with the last six (6) months of the last calendar year
budget fixed by the department of local government finance before
the adoption of a rescinding resolution under this subsection.
Chapter 10. Review of Budget of Political Subdivision With
Unelected Board
Sec. 1. IC 36-3-6-9 and not section 2 of this chapter applies to
political subdivisions listed in IC 36-3-6-9.
Sec. 2. This chapter applies only:
(1) to each governing body of a political subdivision that is not
comprised of a majority of officials who are elected to serve
on the governing body; and
(2) if:
(A) either:
(i) the proposed budget of the political subdivision (other
than a public library) that is to be funded from property
taxes and income tax for the ensuing year is more than
five percent (5%) greater than the amount funded from
property taxes and income tax (or in 2006, county
adjusted gross income tax, county option income tax, or
county economic development tax) in the current year;
or
(ii) the proposed operating budget of a public library
that is to be funded from property taxes and income tax
for the ensuing year is more than five percent (5%)
greater than the amount funded from property taxes and
income tax (or in 2006 county adjusted gross income tax,
county option income tax, or county economic
development tax) in the current year;
(B) the political subdivision is not a school corporation;
and
(C) the political subdivision is not listed in IC 36-3-6-9.
Sec. 3. The governing body of a political subdivision other than
a public library shall submit its proposed budget, tax rates, and tax
levies to the fiscal body determined under section 4 of this chapter.
The governing body of a public library shall submit its proposed
operating budget and tax rates and tax levies for the operating
budget to the fiscal body determined under IC 36-12-1-14. The:
(1) proposed budget; and
(2) proposed tax levies needed to fund the proposed budget;
fixed by the governing body shall be submitted at least fourteen
(14) days before the appropriate fiscal body is required to hold
budget approval hearings under IC 6-13-7.
Sec. 4. (a) The appropriate fiscal body required to conduct a
review under section 5 of this chapter for a political subdivision
other than a public library is the fiscal body determined under this
section.
(b) If:
to fund expenditures in the ensuing year; or
(B) to be deposited in the political subdivision's rainy day
fund in the ensuing year.
Sec. 2. A petitioner may:
(1) before October 1 of the year immediately preceding the
ensuing year; or
(2) in the case of a request related to a:
(A) correction of computations or data under IC 6-13-5; or
(B) shortfall under IC 6-13-17;
that does not affect an income tax rate before January 1 of the
ensuing year;
appeal to the department for an adjustment described in section 1
of this chapter.
Sec. 3. In the appeal, the petitioner must state:
(1) the nature of the requested adjustment; and
(2) the grounds that authorize the adjustment.
The petitioner must support these allegations by reasonably
detailed statements of fact.
Sec. 4. A taxpayer that files a proper objection under:
(1) IC 6-13-12-1 concerning a budget, property tax rate, or
property tax levy that is the subject of an appeal under this
chapter is a party to the appeal under this chapter; and
(2) IC 6-13-12-2 concerning an income tax or income tax rate
that is the subject of an appeal under this chapter, is a party
to the appeal under this chapter.
Sec. 5. The department shall promptly deliver to the local
government tax control board every appeal petition it receives
under section 2 of this chapter and any materials it receives
relevant to those appeals.
Sec. 6. The department shall give expedited treatment to
matters related to the following:
(1) An income tax or income tax rate.
(2) An emergency request for relief by a school that requires
a referendum under IC 6-12.
Sec. 7. Upon receipt of an appeal petition, the local government
tax control board shall immediately proceed to the examination
and consideration of the merits of the petitioner's appeal.
Sec. 8. After the examination, the local government tax control
board shall make a recommendation to the department.
Sec. 9. The department, upon receiving a recommendation from
the local government tax control board, shall enter an order:
(1) adopting;
(2) rejecting; or
(3) adopting in part and rejecting in part;
the recommendation of the local government tax control board.
Sec. 10. The department may make only the adjustments
allowed by law. The department shall make the adjustments
necessary to fund any appropriation that is required by law.
Sec. 11. The petitioner or any affected political subdivision may
petition for judicial review of the final determination of the
department under this chapter. The action must be taken to the tax
court under IC 6-1.1-15 in the same manner that an action is taken
to appeal a final determination of the Indiana board. The petition
must be filed in the tax court not more than forty-five (45) days
after the department enters its final order under this chapter.
Chapter 14. State Review of Budgets and Budget Revenue
Resources
Sec. 1. The department shall review and certify under this
chapter the:
(1) budget, property tax levies, and property tax rates of each
political subdivision;
(2) income tax and income tax rate imposed by each county;
and
(3) allocations of income taxes to each political subdivision;
for an ensuing year.
Sec. 2. The department shall revise or reduce budgets, taxes, tax
rates, and allocations in order to limit:
(1) property tax rates, property tax levies, income taxes, and
income tax rates to the maximum amount permitted by law,
after making any adjustments allowed by law; and
(2) a budget to the amount of revenue, including cash balances
and transfers from a rainy day fund, that is available in the
ensuing year to the political subdivision to fund the budget.
Sec. 3. The department may increase:
(1) a part of a budget that is funded from controlled taxes; or
(2) the amount or rate of controlled taxes;
only as permitted under IC 6-12 and this article.
Sec. 4. The department shall make a revision or reduction in a
political subdivision's budget only with respect to the total amounts
budgeted for each office or department within each of the major
budget classifications prescribed by the state board of accounts.
Sec. 5. Before the department reviews, revises, reduces, or
increases:
(1) a political subdivision's budget, taxes, or tax rates;
(2) an income tax, an income tax rate, or an allocation of
income taxes; or
(3) a controlled tax limit or controlled levy limit;
the department must hold a public hearing on the matters
described in this section. The department shall hold the hearing in
the affected county. The department may hear matters affecting
more than one (1) political subdivision at the same public hearing.
Sec. 6. At least five (5) days before the date fixed for a public
hearing, the department shall give notice of the date, time, and
place of the hearing, the budgets, the taxes and tax rates, and the
allocations to be considered at the hearing. If any matter is under
appeal under IC 6-13-13, the department shall include a brief
description of the matter in the notice. The department 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.
Sec. 7. The department shall give the affected political
subdivisions written notification specifying any revision, reduction,
or increase the department proposes to make. If the adjustment is
a reduction in a budget, tax, tax rate, or allocation, a political
subdivision has one (1) week after the date the political subdivision
receives the notice to provide a written response to the
department's Indianapolis office specifying how to make the
required reductions in the amount budgeted for each office or
department. The department shall make reductions as specified in
the political subdivision's response if the response is provided as
required by this section and sufficiently specifies all necessary
reductions.
Sec. 8. The department may not approve taxes, tax rates, or
allocations for lease payments by a city, town, county, library, or
school corporation if the lease payments are payable to a building
corporation for use by the building corporation for debt service on
bonds and if:
(1) no bonds of the building corporation are outstanding; or
(2) the building corporation has enough legally available
funds on hand to redeem all outstanding bonds payable from
the particular lease rental levy requested.
Sec. 9. The department shall certify its actions to:
(1) the county auditor of each affected county; and
(2) each affected political subdivision.
Sec. 10. The following may petition for judicial review of the
final determination of the department under this chapter:
(1) The political subdivision.
(2) If an objection is filed under IC 6-13-12, a taxpayer who
signed the objection.
(3) The county auditor.
(4) With respect to income tax rates, the department of state
revenue.
The petition must be filed in the tax court not more than forty-five
(45) days after the department certifies its action under section 9
of this chapter.
Sec. 11. Except as otherwise provided, the department is
expressly directed to complete the duties assigned to it under this
chapter not later than:
(1) November 1 immediately preceding the ensuing year for
matters related to an income tax or income tax rate; and
(2) February 15 of the ensuing year for all other matters.
Sec. 12. The department shall annually review the budget of
each school corporation before April 2 each year. The department
shall give the school corporation written notification specifying any
revision, reduction, or increase the department proposes in the
school corporation's budget. A public hearing is not required in
connection with this review of the budget.
Chapter 15. Publication of Final Tax Rates
Sec. 1. After the county auditor has prepared the tax duplicate
for a year under IC 6-1.1-22-3, the county treasurer shall publish
the notice required under IC 6-1.1-22-4.
Sec. 2. As part of the notice required under IC 6-1.1-22-4, the
county treasurer also shall:
(1) give notice of the total county income tax rate imposed in
the county for the year; and
(2) separately identify the part of the total county income tax
rate that is imposed:
(A) under IC 6-11-7;
(B) as an excluded tax rate under IC 6-11-8; and
(C) under each law authorizing an excluded tax rate in
addition to the excluded rate imposed under IC 6-11-8;
and the general purpose of each of the separate rates.
Chapter 16. Supplemental Budgets
Sec. 1. If the fiscal body of a political subdivision desires to
appropriate more money for a particular year than the amount
prescribed in the budget for that year as finally determined under
this article, the fiscal body shall give notice of its proposed
additional appropriation. The notice must state the date, 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).
Sec. 2. After the public hearing, the political subdivision shall
file a certified copy of its final proposal and any other relevant
information to the department.
Sec. 3. If the additional appropriation by the political
subdivision is made from:
(1) a fund that receives 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;
(2) a fund that receives revenue from property taxes; or
(3) the cumulative bridge fund (and the appropriation meets
the requirements under IC 8-16-3-3(c));
the political subdivision must report the additional appropriation
to the department and comply with sections 4 through 8 of this
chapter.
Sec. 4. (a) This section applies only to an appropriation to which
section 3 of this chapter applies.
(b) When the department receives a certified copy of a proposal
for an additional appropriation, 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 receives the proposal.
Sec. 5. (a) This section applies only to an appropriation to which
section 3 of this chapter applies.
(b) In making the determination under section 4 of this chapter,
the department shall limit the amount of the additional
appropriation to revenues available, or to be made available, that
have not been previously appropriated.
Sec. 6. (a) This section applies only to an appropriation to which
section 3 of this chapter applies.
(b) If the department disapproves an additional appropriation
under section 4 of this chapter, the department shall specify the
reason for its disapproval on the determination sent to the political
subdivision.
Sec. 7. (a) This section applies only to an appropriation to which
section 3 of this chapter applies.
(b) A political subdivision may request a reconsideration of a
determination of the department under section 4 of this chapter by
filing a written request for reconsideration. A request for
reconsideration must:
(1) be filed with the department 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.
Sec. 8. (a) This section applies only to an appropriation
described in section 3 of this chapter.
(b) The department of local government finance must act on a
request for reconsideration within fifteen (15) days after receiving
the request.
Chapter 17. Permissible Adjustments in Controlled Taxes and
Excluded Taxes
rate was finally approved by the department.
(2) The payment of refunds in an appeal under IC 6-1.1 and
IC 6-1.5.
(3) An error described in IC 6-13-5.
(4) The payment of refunds of income tax under IC 6-8.1.
(5) The sum of the:
(A) property taxes collected for a fund; and
(B) income tax allocations transferred to the political
subdivision and available for the purposes of a fund;
are less than ninety-eight percent (98%) of the sum of the
property tax levy and income tax allocations certified by the
department for the fund.
(6) The granting of an appeal under IC 6-13-13 that
authorizes an increase in controlled taxes after the date that
department finally determines the income tax rate for a
county in which the political subdivision is located.
(b) If the department determines that any of the conditions
described in subsection (a) occurred, the department may do any
combination of the following:
(1) Order a transfer of money from the political subdivision's
rainy day fund to temporarily replace the amount of the
shortfall.
(2) Order a transfer from the political subdivision's excess
revenue fund account.
(3) Grant any necessary permission for a grant or grants
from any funds of the state that are available for the purpose.
(4) Grant any necessary permission for a loan or loans from
any funds of the state that are available for the purpose.
(5) Grant any necessary permission for the political
subdivision to borrow funds from a source other than the
state or assistance in obtaining the loan.
(6) Grant any necessary permission for an advance or
advances of funds that will become payable to the political
subdivision under any law providing for the payment of state
funds to the political subdivision.
(7) Grant permission to the political subdivision to:
(A) cancel any unpaid obligation of the political
subdivision's general fund to the political subdivision's
cumulative building fund; or
(B) use, for general fund purposes, any unobligated
balance in the political subdivision's cumulative building
fund and the proceeds of any levy made or to be made by
the political subdivision for the political subdivision's
cumulative building fund.
(8) Grant permission, subject to any agreement with the
bondholders, to use, for general fund purposes, any
unobligated balance in any construction fund, including any
unobligated proceeds of a sale of the political subdivision's
general obligation bonds.
(c) The department may take an action under this section as
part of an appeal under IC 6-13-13. A request may be combined
with a request under IC 6-13-5 to eliminate the effects of incorrect
data, computations, or advertisements.
(d) If the department of local government finance authorizes an
increase to make up a shortfall, the department shall take
appropriate steps to ensure that the proceeds are first used to
repay any loan made to the political subdivision for the purpose of
meeting its current expenses.
(e) For purposes of fixing its budget and for purposes of the
controlled tax limits, a political subdivision may not treat money
received to eliminate a shortfall as part of its controlled taxes for
the year unless the department determines that inclusion of the
amount is necessary to eliminate the cumulative effects of the
shortfall.
Chapter 18. Miscellaneous Budget Procedures
Sec. 1. The fiscal officer of a political subdivision may
appropriate funds received from an insurance company if the funds
are:
(1) received as a result of damage to property of the political
subdivision;
(2) appropriated for the purpose of repairing or replacing the
damaged property; and
(3) in fact expended to repair or replace the property within
the twelve (12) month period after they are received.
the amount necessary to meet the cost of township assistance in the
township for the ensuing year. The township board shall adopt
with the township budget a tax rate sufficient to meet the estimated
cost of township assistance. The taxes collected as a result of the
tax rate adopted under this subsection are credited to the township
assistance fund.
Sec. 3. Each council and political subdivision shall fix tax rates
and make appropriations for the appropriate fund that are
sufficient to provide money for each purpose described in the
following:
(1) IC 6-12-5-24.
(2) IC 6-14-3-7.
Sec. 4. Regardless of whether an adjustment is made in any
political subdivision's controlled tax limit, each council and
political subdivision shall fix tax rates and make appropriations for
the appropriate fund that are sufficient for each the following:
(1) Medical assistance under IC 12-13-8-5.
(2) Hospital care for the indigent under IC 12-16-14-3.
(3) Community mental health centers under IC 12-29-2-2.
(4) Children with special health care needs under
IC 16-35-3-3.
(5) Any other law requiring the imposition of a tax for a
particular purpose or fund.
Chapter 22. Excess Revenue Account
Sec. 1. As used in this chapter, "account" refers to a political
subdivision's account in a fund.
Sec. 2. As used in this chapter, "excess revenue" refers to
revenue described in section 4 or 5 of this chapter.
Sec. 3. As used in this chapter, "fund" refers to an excess
revenue fund established in a county under this chapter.
Sec. 4. Imposition and collection of the part of a property tax
actually collected by a political subdivision for a year that exceeds
the amount of property taxes certified for the year is valid and may
not be contested on the grounds that the amount exceeds the
political subdivision's:
(1) controlled tax limit;
(2) certified tax; or
(3) tax limits imposed by any other law;
for the applicable year.
Sec. 5. Imposition and collection of the part of an income tax
actually collected by a county for a year that exceeds the amount
of income taxes certified for the year is valid and may not be
contested on the grounds that the amount exceeds:
(1) a political subdivision's:
(A) controlled tax limit;
(B) certified tax; or
(C) tax limits imposed by any other law;
for the applicable year; or
(2) the county's:
(A) certified tax; or
(B) tax limits imposed by any other law.
Sec. 6. An excess revenue fund is established in each county for
the deposit of excess revenue collected in a year.
Sec. 7. An account for each political subdivision in the county is
established in the fund.
Sec. 8. The county treasurer shall administer the fund. The
county treasurer shall invest the money in the fund not currently
needed to meet the obligations of the fund in the same manner as
other public funds may be invested. Interest that accrues from
these investments shall be deposited in the fund. The interest shall
be allocated among the accounts in the fund on the schedule
determined by the department in proportion to the balance in the
account on the date specified by the department.
Sec. 9. Money in the fund or an account in the fund at the end of
a year does not revert to the general fund of any political
subdivision but remains in the fund to be used exclusively for the
purposes of fund.
Sec. 10. The county treasurer shall deposit the excess revenue
collected in the year in the fund.
Sec. 11. The county treasurer shall deposit in a political
subdivision's account:
(1) excess revenue from property taxes imposed by the
political subdivision; and
(2) a proportionate share of the excess revenue collected from
income taxes;
if the sum of the excess property taxes and excess income taxes
exceeds the total amount of property taxes and income tax
allocations certified for the political subdivision for the year.
However, the department may establish procedures for retaining
a small amount of excess revenue in a general account for the
period determined by the department.
Sec. 12. A political subdivision shall:
(1) include the amount in the political subdivision's account
that exceeds one hundred dollars ($100) in the political
subdivision's budget fixed under this article; and
(2) reduce its property tax levies for the ensuing year by the
amount included in the political subdivision's budget under
subdivision (1).
Sec. 13. Except as provided by section 15 of this chapter, a
political subdivision may not spend money in its account until the
expenditure of the money has been included in a budget that has
been approved by the department.
Sec. 14. A transfer of money from the political subdivision's
revenue excess fund account that reduces the political subdivision's
allocation of controlled income taxes or the political subdivision's
levy of controlled property taxes shall be treated as a temporary
adjustment. The amount of the transfer shall be treated as
controlled taxes for the purposes of computing the political
subdivision's controlled tax limits and controlled levy limits for the
ensuing year.
Sec. 15. For the purposes of determining excise tax distributions
to a political subdivision and other distributions that are computed
on the property tax levies imposed by the political subdivision, the
department shall certify the amount of the distribution from an
account that qualifies as property taxes.
Sec. 16. Upon the receipt of a political subdivision's certified
budget, the county auditor shall transfer to the political subdivision
the amount of money in the political subdivision's account that the
department has certified for use by the political subdivision.
Sec. 17. A political subdivision may transfer money from its
account to any fund to reimburse the fund for amounts withheld
from the political subdivision as a result of general property tax
refunds paid under IC 6-1.1-26 or general income tax refunds paid
under IC 6-8.1.
Sec. 18. Money distributed from an account may be used for any
lawful purpose for which controlled taxes may be used.
is similar to a fund described in subdivisions (1) through (4),
as determined by the department.
(b) The term includes the following funds:
Department
Fund Department
Control Name for
Number Fund
0180 Debt Service
0181 Debt Payment
0182 Bond #2
0183 Bond #3
0184 Bond #4
0185 Bond #5
0186 School Pension Debt
0280 Bond-General Sinking
0281 Loan and Interest Payment
0282 Obligation Loan
0283 Lease Rental Payment
0580 Court House Lease Rental
0581 Court House Bond
0780 Bridge Bond and Interest
0781 Thoroughfare Bond
0783 Street Bond
0880 Hospital Lease Rental
0881 Hospital Bond
0882 Medical Center Bond
0883 Township Assistance Bond
0884 County Welfare Bond
0885 Township Assistance Loan
0886 County Welfare Loan
0889 Cumulative Hospital
0980 Levee Bond
0982 Flood Control Bond
0986 Storm Sewer Bond
1080 County Home Bond
1081 Equipment Bond
1180 Fire and Police Equipment Debt
judgment funding obligation of the political subdivision.
(2) To pay the principal or interest on an outstanding
obligation for which property taxes of the political subdivision
were pledged.
(3) To pay the principal or interest on:
(A) an obligation issued by the political subdivision to meet
an emergency that results from a flood, a fire, a pestilence,
a war, or any other major disaster; or
(B) a note issued under IC 36-2-6-18, IC 36-3-4-22,
IC 36-4-6-20, IC 36-5-2-11, or IC 36-9-4 to enable a city,
town, or county to acquire necessary equipment or
facilities.
(4) To pay the principal or interest on an obligation issued in
the manner provided in this article, IC 6-1.1-20-3 (before its
repeal), or IC 6-1.1-20-3.1 through IC 6-1.1-20-3.2 (before
their repeal).
(5) To pay a judgment rendered against the political
subdivision.
(6) To pay the principal or interest on an obligation to meet
the requirements of the family and children's fund for child
services (as defined in IC 12-19-7-1).
(7) To pay the principal or interest on an obligation to meet
the requirements of the children's psychiatric residential
treatment services fund for children's psychiatric residential
treatment services (as defined in IC 12-19-7.5-1).
Sec. 8. The department and a county income tax council may not
reduce a political subdivision's allocation of county income taxes
below the amount of the political subdivision's allocation of county
income taxes pledged by the political subdivision. A county income
tax council and the department are not required to increase a
political subdivision's allocation of county income taxes to
eliminate the effects on the political subdivision's budget resulting
from the pledge of the political subdivision's allocation to the
funding or payment of an obligation.
Sec. 9. The collection of money in excess of the amount certified
for a debt service fund is valid. The excess is subject to treatment
as excess revenue under IC 6-13-22.
than three (3) months after the hearing. If a decision is not
rendered within that time, the issue is considered approved unless
the department takes the extension provided for in this section. A
three (3) month extension of the period during which the decision
must be rendered may be taken by the department if the
department mails notice of the extension to the executive officer of
the political subdivision and to the first ten (10) taxpayers who
signed the petition at least ten (10) days before the end of the
original three (3) month period. If a decision is not rendered within
the extension period, the issue is considered approved.
Sec. 9. A:
(1) taxpayer who signed a petition under this chapter; or
(2) political subdivision against which a petition referred to in
this chapter is filed;
may petition for judicial review of the final determination of the
department under this chapter. The petition must be filed in the tax
court not more than forty-five (45) days after the department
renders its decision under this chapter.
Chapter 6. Review of Interest Rate
Sec. 1. This chapter applies when the proper officers of a
political subdivision decide to issue any bonds, notes, or warrants
that will:
(1) be payable from property taxes or income taxes; and
(2) bear interest in excess of eight percent (8%) per annum.
Sec. 2. A political subdivision may not impose property taxes or
income taxes to pay debt service for bonds, notes, or warrants to
which this chapter applies without:
(1) complying with this chapter; and
(2) approval of the interest rate by the department.
Sec. 3. The political subdivision shall submit the matter to the
department for review. A review under this section may be
combined with a review under IC 6-14-8 or IC 6-14-9.
Sec. 4. The department may either approve or disapprove the
rate of interest.
Chapter 7. Remonstrance and Petition Process for Controlled
Debt Service and Controlled Lease Rentals
Sec. 1. This chapter applies only to controlled debt service and
controlled lease rentals.
Sec. 2. For purposes of this chapter, a project is any project or
purpose for which a political subdivision may issue bonds or enter
into leases, including a sale-lease back of an existing building.
Sec. 3. For purposes of this chapter, a controlled project is any
project financed by bonds or a lease, except for the following:
(1) A project for which the political subdivision reasonably
expects to pay:
(A) debt service; or
(B) lease rentals;
from funds other than property taxes or income taxes.
However, a project that would otherwise be exempt under
this subdivision becomes a controlled project if the political
subdivision pledges property taxes or income taxes to pay
debt service or lease rentals if other funds are insufficient.
(2) A project that will not cost the political subdivision more
than two million dollars ($2,000,000).
(3) A project that is being refinanced to provide gross or net
present value savings to taxpayers.
(4) A project for which bonds were issued or leases were
entered into before January 1, 1996, or for which the state
board of tax commissioners (repealed) has approved the
issuance of bonds or the execution of leases before January 1,
1996.
(5) A project that is required by a court order holding that a
federal law mandates the project.
(6) A project for which the political subdivision complied with
IC 6-1.1-20 (before its repeal).
Sec. 4. A political subdivision may not impose property taxes or
income taxes to pay debt service or lease rentals without:
(1) completing the procedures in section 5 of this chapter; and
(2) if a sufficient petition requesting the application of a
petition and remonstrance process has been filed as set forth
in section 6 of this chapter, completing the procedures in
section 6 of this chapter.
Sec. 5. A political subdivision must do the following:
(1) The proper officers of a political subdivision shall:
accordance with IC 5-3-1.
(2) Not earlier than thirty (30) days or later than sixty (60)
days after the notice under subdivision (1) is given:
(A) petitions (as described in subdivision (3)) in favor of
the bonds or lease; and
(B) remonstrances (as described in subdivision (3)) against
the bonds or lease;
may be filed by an owner or owners of real property or a
tenant or tenants of residential property within the political
subdivision. A petition or remonstrance signed by a tenant of
residential property must be accompanied by an affidavit
setting forth the name of the landlord and the property
address of the tenant's leasehold. Each signature on a petition
must be dated, and the date of signature may not be before
the date on which the petition and remonstrance forms may
be issued under subdivision (3). A petition described in clause
(A) or a remonstrance described in clause (B) must be verified
in compliance with subdivision (4) before the petition or
remonstrance is filed with the county auditor under
subdivision (4).
(3) The state board of accounts shall design and, upon request
by the county auditor, deliver to the county auditor or the
county auditor's designated printer the petition,
remonstrance, and affidavit forms to be used solely in the
petition and remonstrance process described in this section.
The county auditor shall issue to an owner or owners of real
property or a tenant or tenants of residential property within
the political subdivision the number of petition, remonstrance,
or affidavit forms requested by the owner or owners or tenant
or tenants. Each form must be accompanied by instructions
detailing the requirements that:
(A) the carrier and signers must be owners of real
property or tenants of residential property;
(B) the carrier must be a signatory on at least one (1)
petition;
(C) after the signatures have been collected, the carrier
must swear or affirm before a notary public that the
carrier witnessed each signature;
(D) govern the closing date for the petition and
remonstrance period; and
(E) apply to the carrier under section 7 of this chapter.
Persons requesting petition, remonstrance, or affidavit forms
may not be required to identify themselves and may be
allowed to pick up additional copies to distribute to other
property owners or tenants of residential property. The
county auditor may not issue a petition, remonstrance, or
affidavit form earlier than twenty-nine (29) days after the
notice is given under subdivision (1). The county auditor shall
certify the date of issuance on each petition, remonstrance, or
affidavit form that is distributed under this subdivision.
(4) The petitions, remonstrances, and affidavits must be
verified in the manner prescribed by the state board of
accounts and filed with the county auditor within the thirty
(30) to sixty (60) day period described in subdivision (2) in the
manner set forth in section 5 of this chapter relating to
requests for a petition and remonstrance process.
(5) The county auditor must file a certificate and the petition
or remonstrance with the body of the political subdivision
charged with issuing bonds or entering into leases not later
than fifteen (15) business days after the filing of a petition or
remonstrance under subdivision (4), whichever applies,
containing ten thousand (10,000) signatures or fewer. The
county auditor may take an additional five (5) days to review
and certify the petition or remonstrance for each additional
five thousand (5,000) signatures, up to a maximum of sixty
(60) days. The certificate must state the number of petitioners
and remonstrators that are owners of real property and the
number of petitioners and remonstrators who are tenants of
residential property within the political subdivision.
(6) If a greater number of owners of real property plus
tenants of residential property within the political subdivision
sign a remonstrance than the number that signed a petition,
the bonds petitioned for may not be issued or the lease
petitioned for may not be entered into. The proper officers of
the political subdivision may not make a preliminary
determination to issue bonds or enter into a lease for the
controlled project defeated by the petition and remonstrance
process under this section or any other controlled project that
is not substantially different within one (1) year after the date
of the county auditor's certificate filed under subdivision (5).
Withdrawal of a petition carries the same consequences as a
defeat of the petition.
(7) After a political subdivision has gone through the petition
and remonstrance process set forth in this section, the
political subdivision is not required to follow any other
remonstrance or objection procedures under any other law
(including section 5 of this chapter) relating to bonds or leases
designed to protect owners of real property and tenants of
residential property within the political subdivision from the
imposition of property taxes to pay debt service or lease
rentals. However, the political subdivision must still receive
the approval of the department required under IC 6-14-8.
Sec. 7. (a) If a petition and remonstrance process is commenced
under section 6 of this chapter, during the sixty (60) day period
commencing with the notice under section 6(1) of this chapter, the
political subdivision seeking to issue bonds or enter into a lease for
the proposed controlled project may not promote a position on the
petition or remonstrance by doing any of the following:
(1) Allowing facilities or equipment, including mail and
messaging systems, owned by the political subdivision to be
used for public relations purposes to promote a position on
the petition or remonstrance unless equal access to the
facilities or equipment is given to persons with a position
opposite to that of the political subdivision.
(2) Making an expenditure of money from a fund controlled
by the political subdivision to promote a position on the
petition or remonstrance (except as necessary to explain the
project to the public) or to pay for the gathering of signatures
on a petition or remonstrance. This subdivision does not
prohibit a political subdivision from making an expenditure
of money to an attorney, an architect, a construction
manager, or a financial adviser for professional services
provided with respect to a controlled project.
(3) Using an employee to promote a position on the petition or
remonstrance during the employee's normal working hours or
paid overtime.
(4) In the case of a school corporation, promoting a position
on a petition or remonstrance by:
(A) using students to transport written materials to their
residences; or
(B) including a statement within another communication
sent to the students' residences.
However, this section does not prohibit an employee of the
political subdivision from carrying out duties with respect to
a petition or remonstrance that are part of the normal and
regular conduct of the employee's office or agency.
(b) A person may not solicit or collect signatures for a petition
or remonstrance on property owned or controlled by the political
subdivision.
Chapter 8. Review by Department
Sec. 1. Subject to section 2 of this chapter, this chapter applies
to the following:
(1) Bonded indebtedness.
(2) Lease rentals under a lease with an original term of at
least five (5) years.
Sec. 2. This chapter does not apply to the following:
(1) Temporary loans made in anticipation of and to be paid
from current revenues of the political subdivision actually
imposed and in the course of collection for the budget year in
which the loans are made.
(2) Bonded indebtedness that will be repaid through property
taxes or income taxes imposed under IC 12-19.
(3) Bonded indebtedness or lease rentals that were approved
under IC 6-1.1-18.5-8 (before its repeal) or IC 6-1.1-19-8
(before its repeal).
(4) Property taxes or income taxes that a school corporation
imposes to pay or fund bond or lease rental indebtedness
created or incurred before July 1, 1974.
the rate of an income tax in a county where the political subdivision
is located.
Sec. 9. Subject to section 10 of this chapter, the department
may:
(1) approve or disapprove the proposed bond issue or lease
agreement; or
(2) approve an alternative financing arrangement by:
(A) reducing the amount of the proposed bond issue or
lease agreement;
(B) modifying other terms of the proposed bond issue or
lease agreement;
(C) approving the use of other funding mechanisms that
are available to the political subdivision to cover all or
part of the costs that would be covered by the proposed
bond issue or lease agreement;
(D) modifying the scope of the proposed project, in the case
of bonds to be issued or a lease to be entered into for the
acquisition, construction, renovation, improvement, or
expansion of a building, a structure, or another public
improvement; or
(E) any combination of the methods described in clauses
(A) through (D).
Sec. 10. In determining whether to approve or disapprove a
proposed bond issue or lease agreement or to approve an
alternative financing arrangement, the department shall consider
the following factors:
(1) Whether the proposed bond issue or lease agreement is
unnecessary or excessive.
(2) With respect to a proposed bond issue or lease agreement
for the acquisition, construction, renovation, improvement,
expansion, or use of a building, a structure, or another public
improvement, whether the civil taxing unit has demonstrated
that an adequate source of funding will be available to cover
annual costs of operating, maintaining, and repairing the
building, structure, or public improvement.
(3) Whether an excessive impact on the political subdivision's
tax rate or on the rate of an income tax imposed in a county
where the political subdivision is located will result from:
(A) the issuance of the bonds or execution of the lease
agreement; and
(B) with respect to a proposed bond issue or lease
agreement for the acquisition, construction, renovation,
improvement, expansion, or use of a building, a structure,
or another public improvement, the annual costs of
operating, maintaining, and repairing the building,
structure, or public improvement.
(4) Whether any costs of acquiring, constructing, renovating,
improving, or expanding a building, a structure, or another
public improvement that are to be financed through the
issuance of bonds or execution of a lease are comparable to
the costs incurred for those purposes by other similarly
situated political subdivisions for similar projects.
(5) With respect to a proposed bond issue or lease agreement
for the acquisition, construction, renovation, improvement,
expansion, or use of a building, a structure, or another public
improvement, whether the building, structure, or public
improvement will be made available to residents of the
political subdivision for uses other than those planned by the
political subdivision.
(6) Any other pertinent matter, including matters described
in IC 6-14-4.
Sec. 11. (a) A political subdivision may petition for judicial
review of the final determination of the department under this
chapter.
(b) The petition for judicial review must be filed in the tax court
not more than forty-five (45) days after the department enters its
order under this chapter.
Sec. 12. A taxpayer may petition for judicial review of the final
determination of the department under this chapter. The petition
must be filed in the tax court not more than thirty (30) days after
the department enters its order under this chapter.
Chapter 9. School Bus Loan Review
Sec. 1. This chapter does not apply to school bus purchase loans
made by a school corporation that will be repaid solely from the
general fund of the school corporation.
Sec. 2. A school corporation must obtain approval from the
department before the school corporation may repay a school bus
purchase loan.
Sec. 3. Before it approves or disapproves a proposed school bus
purchase loan, the department may seek the recommendation of
the local government tax control board or the department of state
revenue.
Sec. 4. Subject to section 5 of this chapter, the department may
either:
(1) approve, disapprove, or modify then approve a school
corporation's proposed school bus purchase loan; or
(2) approve an alternative financing arrangement by:
(A) reducing the amount of the proposed school bus
purchase loan;
(B) modifying other terms of the proposed school bus
purchase loan;
(C) approving the use of other funding mechanisms that
are available to the school corporation to cover all or part
of the costs that would be covered by the proposed school
bus purchase loan;
(D) modifying the scope of the proposed purchase of school
buses; or
(E) any combination of the methods described in clauses
(A) through (D).
Sec. 5. In determining whether to approve or disapprove a
proposed school bus purchase loan, or to approve an alternative
financing arrangement, the department shall consider the following
factors:
(1) Whether the proposed school bus purchase loan is
unnecessary or excessive.
(2) Whether an excessive impact on the tax rates, fees, or
other charges imposed by the school corporation will result
from the annual costs of operating, maintaining, and repairing
the vehicles to be purchased with the loan.
(3) Any other pertinent matter.
Sec. 6. The department shall render a decision not more than
three (3) months after the date it receives a request for approval
under this chapter. However, the department may extend this three
(3) month period by an additional three (3) months if, at least ten
(10) days before the end of the original three (3) month period, the
department sends notice of the extension to the executive officer of
the school corporation.
Sec. 7. A school corporation may petition for judicial review of
the final determination of the department under this chapter. The
petition must be filed in the tax court not more than forty-five (45)
days after the department enters its order under this chapter.
Sec. 8. A taxpayer may petition for judicial review of the final
determination of the department under this chapter. The petition
must be filed in the tax court not more than thirty (30) days after
the department enters its order under this section.
Chapter 10. Jay County School Corporation
Sec. 1. The levy and property tax rate for an excessive levy
granted under IC 6-1.1-19-10.5 (repealed) before January 1, 2007,
is transferred to the Jay County School Corporation debt service
fund for property taxes first due and payable after December 31,
2006.
Sec. 2. The relief under section 1 of this chapter is granted as an
advance of state funds related to an intercept action to be paid
back to the treasurer of state in two hundred forty (240) payments
of:
(1) thirteen thousand eight hundred eighty-two dollars
($13,882) beginning on January 15, 2001, and ending May 15,
2003; and
(2) equal installment amounts beginning June 15, 2003, and
ending with final payment on December 31, 2020.
fund in the ensuing year.
Sec. 5. The department shall require that a notice of submission
under section 4 of this chapter be given to the taxpayers of the
county. The notice shall be published in one (1) publication and
posted in the same manner as required by section 3 of this chapter.
Sec. 6. Not later than noon of the day that is thirty (30) days
after the publication of the notice required by section 3 of this
chapter:
(1) at least ten (10) taxpayers in the taxing district, if the fund
is authorized under IC 8-10-5-17, IC 8-16-3-1, IC 8-16-3.1-4,
IC 14-27-6-48, IC 14-33-21-2, IC 36-8-14-2, IC 36-9-4-48, or
IC 36-10-4-36;
(2) at least twenty (20) taxpayers in a county served by a
hospital, if the fund is authorized under IC 16-22-4-1;
(3) at least thirty (30) taxpayers in a tax district, if the fund is
authorized under IC 36-10-3-21 or IC 36-10-7.5-19;
(4) at least fifty (50) taxpayers in a municipality, if
subdivisions (1), (2), (3), and (5) do not apply; or
(5) at least one hundred (100) taxpayers in the county, if the
fund is authorized by IC 3-11-6;
may file a petition with the county auditor stating their objections
to an action described in section 2 of this chapter. Upon the filing
of the petition, the county auditor shall immediately certify the
petition to the department.
Sec. 7. (a) The department shall within a reasonable time set a
date for a hearing on a petition filed under section 6 of this chapter.
(b) For a cumulative fund authorized under IC 3-11-6 or
IC 36-9-4-48, the hearing must be held in the county affected by the
proposed action.
Sec. 8. The department shall give notice of the hearing required
by section 7 of this chapter to:
(1) the county auditor; and
(2) the first ten (10) taxpayers whose names appear on the
petition filed under section 6 of this chapter.
The notice must be given by letter signed by the commissioner or
deputy commissioner of the department and sent by mail with
prepaid postage to the auditor and the taxpayers at their usual
places of residence at least five (5) days before the date set for the
hearing.
Sec. 9. (a) After a hearing on a proposal (if a hearing is
required) or after the proposal is submitted to the department
under section 4 of this chapter (if no hearing is required), the
department shall certify approval, disapproval, or modification of
the proposal to the county auditor.
(b) A:
(1) taxpayer who signed a petition filed under section 6 of this
chapter; or
(2) political subdivision submitting a proposal for approval;
may petition for judicial review of the final determination of the
department under subsection (a). The petition must be filed in the
tax court not more than forty-five (45) days after the department
certifies its action under subsection (a).
Sec. 10. To provide for a fund, a political subdivision may levy
a tax on all taxable property within the jurisdiction authorized to
establish the fund. The tax may not exceed the tax rate specified in
the statute authorizing the fund.
Sec. 11. If a political subdivision considers it advisable after the
levy has been approved, the governing body imposing the levy for
the political subdivision may reduce or rescind the annual levy.
Sec. 12. At least:
(1) ten (10) taxpayers in the tax district, if the fund is
authorized under IC 8-10-5-17, IC 8-16-3-1, IC 8-16-3.1-4,
IC 14-27-6-48, IC 14-33-21-2, IC 36-8-14-2, IC 36-9-4-48, or
IC 36-10-4-36; or
(2) fifty (50) taxpayers in the area where a property tax for a
fund is imposed, if subdivision (1) does not apply;
may file with the county auditor, by noon on August 1 of a year, a
petition for reduction or revision of the levy approved under this
chapter. The petition must state the taxpayers' objections to the
levy. The county auditor shall certify the petition to the
department, and the same procedure for notice and hearing must
be followed that was required for the original levy. After a hearing
on the petition, the department may confirm, reduce, or rescind the
levy. The department's action is final and conclusive.
preceding the year the annual adjustment or general
reassessment takes effect to the year that the annual
adjustment or general reassessment takes effect.
STEP THREE: Determine the three (3) years that
immediately precede the ensuing year and in which a
statewide general reassessment of real property does not first
take effect.
STEP FOUR: Compute separately, for each of the years
determined in STEP THREE, the actual percentage increase
(rounded to the nearest one-hundredth percent (0.01%)) in
the assessed value (before the adjustment, if any, under
IC 6-1.1-4-4.5) of the taxable property from the preceding
year.
STEP FIVE: Divide the sum of the three (3) quotients
computed in STEP FOUR by three (3).
STEP SIX: Determine the greater of the following:
(A) Zero (0).
(B) The result of the STEP TWO percentage minus the
STEP FIVE percentage.
STEP SEVEN: Determine the quotient of the STEP ONE tax
rate divided by the sum of one (1) plus the STEP SIX
percentage increase.
Sec. 6. The department shall compute the maximum rate
allowed under section 5 of this chapter and provide the rate to each
political subdivision with authority to levy a tax under a statute
listed in section 1 of this chapter.
tax rates for that preceding calendar year under, before 2007,
IC 6-1.1-17 and, after 2006, IC 6-13 and after eliminating the
effects of temporary excessive levy appeals and any other
temporary adjustments made to the levy taxes for the calendar
year; multiplied by
(2) the statewide average assessed value tax growth quotient using
all the county assessed value growth quotients determined under
IC 6-1.1-18.5-2 IC 6-12-4-4 for the year in which the tax levy
under this section will be first due and payable.
If the amount levied of tax in a particular year exceeds the amount
necessary to cover the costs payable from the fund, the levy tax in the
following year shall be reduced by the amount of surplus money as a
temporary adjustment to the county's controlled tax limit and
controlled levy limit.
become effective.
STEP TWO: Compute separately, for each of the calendar years
determined in STEP ONE, the quotient (rounded to the nearest
ten-thousandth) of the county's total assessed value of all taxable
property in the particular calendar year, divided by the county's
total assessed value of all taxable property in the calendar year
immediately preceding the particular calendar year.
STEP THREE: Divide the sum of the three (3) quotients
computed in STEP TWO by three (3). under IC 6-12-4-4 for
2007.
(d) Except as provided (c) Subject to the limitations in subsection
(e): (d), each county shall impose controlled taxes for hospital care
for the indigent equal to:
(1) for taxes first due and payable in 2009, 2008, each county
shall impose a hospital care for the indigent property tax levy
equal to the average of the annual amount of payable claims
attributed to the county under IC 12-16-7.5-4.5 during the state
fiscal years beginning:
(A) July 1, 2005;
(B) July 1, 2006; and
(C) July 1, 2007; and
(2) for all subsequent annual levies under this section, years, the
average annual amount of payable claims attributed to the county
under IC 12-16-7.5-4.5 during the three (3) most recently
completed state fiscal years.
(e) (d) A county may not impose an annual levy controlled taxes in
any year under subsection (d) (c) in an amount greater than the product
of:
(1) The greater of:
(A) the county's amount of controlled taxes imposed by the
county for hospital care for the indigent property tax levy for
taxes first due and payable in 2008; in 2007; or
(B) the amount of the county's maximum controlled taxes
certified for the county by the department of local
government finance for hospital care for the indigent property
tax levy as the amount was determined under this subsection
for taxes first due and payable in by the department of local
government finance in fixing the county's budget, taxes,
and tax rates for that preceding calendar year under,
before 2007, IC 6-1.1-17 and after 2006, IC 6-13 and after
eliminating the effects of temporary adjustments made to
the amount for the immediately preceding year; multiplied by
(2) the assessed value tax growth quotient determined in the last
STEP of the following STEPS:
STEP ONE: Determine the three (3) calendar years that most
immediately precede the ensuing calendar year and in which a
statewide general reassessment of real property does not first
become effective.
STEP TWO: Compute separately, for each of the calendar years
determined in STEP ONE, the quotient (rounded to the nearest
ten-thousandth) of the county's total assessed value of all taxable
property in the particular calendar year, divided by the county's
total assessed value of all taxable property in the calendar year
immediately preceding the particular calendar year.
STEP THREE: Divide the sum of the three (3) quotients
computed in STEP TWO by three (3). under IC 6-12-4-4 for the
year.
determined by the department of local government finance in
fixing the county's budget, taxes, and tax rates for that
preceding calendar year under, before 2007, IC 6-1.1-17 and
after 2006, IC 6-13 and after eliminating the effects of
temporary adjustments made to the certified amount for the
calendar year; multiplied by
(2) the greater of:
(A) the tax growth quotient for the ensuing calendar year
as determined under IC 6-12-4-4; or
(B) one (1).
ninety percent (90%) of the maximum permissible ad valorem
property tax levy amount of controlled taxes permitted for all
of the township's money under IC 6-1.1-18.5; IC 6-12; and
(D) has outstanding indebtedness that exceeds one and
eight-tenths percent (1.8%) of the township's adjusted value of
taxable property in the district as determined under IC 36-1-15;
or
(2) a township that:
(A) has been a controlled township during any part of the
preceding five (5) years;
(B) has a valid township assistance claim that the county
auditor cannot pay within thirty (30) days after the claim is
approved for payment under IC 12-2-1-31 (before its repeal)
or IC 12-20-20; and
(C) uses advances from the county from proceeds of bonds
issued under IC 12-2-1 (before its repeal) or this article.
assessed value growth quotient for the ensuing year 2003, as
determined under IC 6-1.1-18.5-2.
STEP THREE: Multiply the STEP TWO result by the county's
assessed value growth quotient for the ensuing year 2004, as
determined under IC 6-1.1-18.5-2.
(2) For 2005 and each year thereafter, the result equal to:
(A) (1) the amount that was levied of controlled taxes imposed
in the county to comply with this section from property taxes first
due and payable in the calendar year immediately preceding the
ensuing calendar year; multiplied by
(B) (2) the county's assessed tax value growth quotient for the
ensuing calendar year, as determined under IC 6-1.1-18.5-2.
IC 6-12-4-4.
calendar year; multiplied by
(2) the greater of:
(A) the county's assessed value tax growth quotient for the
ensuing calendar year, as determined under IC 6-1.1-18.5-2;
IC 6-12-4-4; or
(B) one (1).
When a year in which a statewide general reassessment of real property
first becomes effective is the year preceding the year that the property
tax levy under this subsection will be first due and payable, the amount
to be used in subdivision (2) equals the average of the amounts used in
determining the two (2) most recent adjustments in the county's levy
under this section. If the amount levied in a particular year exceeds the
amount necessary to cover the costs payable from the fund, the levy in
the following year shall be reduced by the amount of surplus money.
(b) The department of local government finance shall review each
county's property tax levy under this section and shall enforce the
requirements of this section with respect to that levy.
school year. The information shall be used to assist the department
of local government finance in computing tax rates and tax
amounts under IC 6-1.1-19-1.5. The department of education shall
submit the information to the department of local government
finance in the form and on the schedule required by the department
of local government finance.
year. IC 6-12-4-4 for the ensuing year.
(e) (c) Each school corporation may levy impose controlled taxes
for the calendar year a tax for the school bus replacement fund in
accordance with the school bus acquisition plan adopted under section
3.1 of this chapter.
(f) The tax rate and levy for each fund shall be established as a part
of the annual budget for the calendar year in accord with IC 6-1.1-17.
government finance. The petition must be filed before June 1 of the
year preceding the first year the school corporation desires to
impose the property tax and must include the following:
(1) The name of the school corporation.
(2) A settlement agreement among the parties to a
desegregation lawsuit that includes the program that will
improve or maintain racial balance in the school corporation.
(3) The proposed property tax levy.
(4) Any other item required by the department of local
government finance.
Sec. 5. Upon receiving a petition under this chapter, the
department of local government finance shall refer the petition to
the local government tax control board. The local government tax
control board shall consider the petition in the same manner as an
appeal under IC 6-16. The local government tax control board may
recommend to the department of local government finance that a
school corporation be allowed to establish a racial balance fund to
be funded by an ad valorem property tax levy. The amount of the
levy shall be determined each year, and the levy may not exceed the
lesser of the following:
(1) The revenue derived from a tax rate of eight and
thirty-three hundredths cents ($0.0833) for each one hundred
dollars ($100) of assessed valuation within the school
corporation.
(2) The revenue derived from a tax rate equal to the
difference between the maximum rate allowed for the school
corporation's capital projects fund under IC 21-2-15 minus
the actual capital projects fund rate that will be in effect for
the school corporation for a particular year.
Sec. 6. The department of local government finance shall review
the petition of the school corporation and:
(1) disapprove the petition if the petition does not comply with
this chapter;
(2) approve the petition; or
(3) approve the petition with modifications.
Sec. 7. A property tax levy under this chapter is in addition to,
and not part of, the school corporation's controlled tax limit and
controlled levy limit for purposes of determining the school
corporation's controlled tax limit and controlled levy limit.
Sec. 8. Money received from a property tax levy under this
chapter shall be deposited in the school corporation's racial
balance fund established under this chapter. Money in the fund
may be used only for education programs that improve or
maintain racial balance in the school corporation. Money in the
fund may not be used for:
(1) transportation; or
(2) capital improvements;
even though those costs may be attributable to the school
corporation's proposed programs for improving or maintaining
racial balance in the school corporation.
requiring a reduction in the amount distributed for tuition
support under this section; and
(3) three billion seven hundred forty-seven million two hundred
thousand dollars ($3,747,200,000) in 2007;
the amount to be distributed for tuition support under this chapter to
each school corporation during each of the last six (6) months of the
year shall be proportionately reduced so that the total reductions equal
the amount of the excess. The amount of the reduction for a particular
school corporation is equal to the total amount of the excess multiplied
by a fraction. The numerator of the fraction is the amount of the
distribution for tuition support that the school corporation would have
received if a reduction were not made under this section. The
denominator of the fraction is the total amount that would be distributed
for tuition support to all school corporations if a reduction were not
made under this section. However, the department of education shall
distribute the full amount of tuition support to school corporations
in the second six (6) months of 2006 in accordance with IC 21-1-30
and this article without a reduction under this section.
other fund that can be temporarily transferred.
(3) Except as provided in subsection (b), 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:
(A) the levying and collection of property taxes, income taxes,
or special taxes; or from
(B) 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 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 the following:
(1) Passes an ordinance or a resolution that contains the following:
(A) A statement that the fiscal body has determined that an
emergency exists.
(B) A brief description of the grounds for the emergency.
(C) The date the loan will be repaid that is not more than six
(6) months beyond the budget year in which the transfer
occurs.
(2) Immediately forwards the ordinance or resolution to the state
board of accounts and the department of local government finance.
rainy day fund before January 1, 2007; or
(B) does not reduce the balance in the rainy day fund to
less than six percent (6%) of the political subdivision's
budget for the year immediately preceding the year of the
expenditure.
(b) (d) The fund consists of money deposited in the rainy day
fund:
(1) under subsection (e);
(2) under section 5 of this chapter;
(3) under IC 6-11-9-9; and
(4) from money from any other source: an ordinance or a
resolution adopted under this section must specify the following:
(1) The purposes of the rainy day fund.
(2) The sources of funding for the rainy day fund, which may
include the following:
(A) Unused and unencumbered funds under:
(i) section 5 of this chapter;
(ii) IC 6-3.5-1.1-21.1;
(iii) IC 6-3.5-6-17.3; or
(iv) IC 6-3.5-7-17.3.
(B) any other funding source:
(i) (A) specified in the ordinance or resolution adopted under
this section; and
(ii) (B) not otherwise prohibited by law.
(e) Upon adoption of an ordinance or resolution authorizing a
transfer of money under subsection (c)(1) or (c)(6), the ordinance
or resolution must be submitted to the county auditor and the
department of local government finance. A transfer under
subsection (c)(1) or (c)(6) that reduces a controlled tax or tax rate
does not reduce the political subdivision's controlled tax limit or
controlled levy limit.
(c) (f) The expenditure of money transferred from a rainy day
fund to another fund is subject to the same appropriation process as
other funds that receive tax money.
(d) (g) In any fiscal year, a political subdivision may transfer under
section 5 of this chapter not more than ten percent (10%) of the political
subdivision's total annual budget for that fiscal year, adopted under
IC 6-1.1-17, IC 6-13, to the rainy day fund.
(e) A political subdivision may use only the funding sources
specified in subsection (b)(2)(A) or in the ordinance or resolution
establishing the rainy day fund. The political subdivision may adopt a
subsequent ordinance or resolution authorizing the use of another
funding source.
(f) The department of local government finance may not reduce the
actual or maximum permissible levy of a political subdivision as a
result of a balance in the rainy day fund of the political subdivision.
resident of the county in which the individual:
(1) maintains a home, if the individual maintains only one (1)
home in Indiana;
(2) if subdivision (1) does not apply, is registered to vote;
(3) if subdivision (1) or (2) does not apply, registers the
individual's personal automobile; or
(4) if subdivision (1), (2), or (3) does not apply, spends the
majority of the individual's time spent in Indiana during the
taxable year in question.
(repealed).
(4) Except in a county having a population of more than three
hundred thousand (300,000) but less than four hundred thousand
(400,000), a food and beverage tax imposed under IC 6-9.
(5) An optional additional county income tax under IC 6-11-8.
to wages earned for work in the certified technology park, until the
amount deposited equals the income tax incremental amount:
(A) The adjusted gross income tax.
(B) The county adjusted gross income tax.
(C) The county option income tax.
(D) The county economic development income tax.
(E) The optional additional county income tax (IC 6-11-8).
(c) Not more than a total of five million dollars ($5,000,000) may be
deposited in a particular incremental tax financing fund for a certified
technology park over the life of the certified technology park.
(d) On or before the twentieth day of each month, all amounts held
in the incremental tax financing fund established for a certified
technology park shall be distributed to the redevelopment commission
for deposit in the certified technology park fund established under
section 23 of this chapter.
county adjusted gross income tax (repealed), or optional additional
county income tax imposed under IC 6-11-8 is in effect on January
1 of that year, depends upon the number of years the county has
previously imposed a tax under this chapter and is determined under the
following table:
NUMBER
TAX RATE PER $100
OF YEARS
OF ASSESSED
VALUATION
0
$0.04
1 or more
$0.07
IC 6-1.1-19-10; IC 6-1.1-19-10.5; IC 6-1.1-19-11; IC 6-1.1-19-12;
IC 6-1.1-20; IC 6-1.1-29; IC 6-1.1-41; IC 12-13-8-4.
effective June 30, 2006) and IC 6-1.1-18.5-8 (as effective June 30,
2006), or IC 6-1.1-19-8 (as effective June 30, 2006), as appropriate,
and not IC 6-14, as added by this act, applies to petitions,
remonstrances, and the review of debt service or lease rentals for
a controlled project (as defined in IC 6-1.1-20-1.1 (before its repeal
by this act)) if a notice for the debt service or lease rentals has been
published under IC 6-1.1-20-3.1(2) (before its repeal by this act)
before July 1, 2006. However, an action required by the school
property tax control board shall be taken by the local government
tax control board established under IC 6-13-3, as added by this
act. Proceedings conducted under this subsection shall be treated
as if they had been conducted under IC 6-14, as added by this act,
for all purposes, including the issuance of obligations to refund an
obligation subject to this subsection.
(e) Notwithstanding IC 6-14, as added by this act, a petition for
approval of bond indebtedness, lease rentals, or bus purchase loans
filed with the department of local government finance under
IC 6-1.1-18.5-8 (as effective before July 1, 2006), IC 6-1.1-19-8 (as
effective before July 1, 2006), or IC 6-1.1-20 (as effective before
July 1, 2006), as appropriate, before July 1, 2006, shall be
reviewed and approved after June 30, 2006, under IC 6-1.1-18.5-8
(as effective before July 1, 2006), IC 6-1.1-19-8 (as effective before
July 1, 2006), or IC 6-1.1-20 (as effective before July 1, 2006), as
appropriate. However, an action required by the school property
tax control board shall be taken by the local government tax
control board established under IC 6-13-3, as added by this act.
Proceedings conducted under this subsection shall be treated as if
they had been conducted under IC 6-14, as added by this act, for
all purposes, including the issuance of obligations to refund an
obligation subject to this subsection.
(f) Notwithstanding IC 6-14, as added by this act, a bonding
bond or loan agreement that:
(1) is entered into before July 1, 2006;
(2) pledges county adjusted gross income tax, county option
income tax, or county economic development income tax; and
(3) was authorized and approved in conformity with the law in
effect at the time the agreement was entered into;
is valid to the same extent as if it had been authorized and
approved in compliance with all the requirements in IC 6-14, as
added by this act. Otherwise, IC 6-14, as added by this act, applies
to a pledge of county adjusted gross income tax, county option
income tax, or county economic development tax for the funding or
payment of bonded indebtedness or lease rentals to the same extent
as if it were a pledge of county income tax made under IC 6-11, as
added by this act. Any other loan, lease agreement, or bonded
indebtedness, or other obligation that was entered into by a
political subdivision before July 1, 2006, in conformity with the law
in effect at the time the agreement was entered into (including any
requirement requiring approval or review by the state board of tax
commissioners or the department of local government finance)
shall be treated after June 30, 2006, as if it had been entered into
under IC 6-14, as added by this act. Proceedings conducted under
this subsection shall be treated as if they had been conducted under
IC 6-14, as added by this act, for all purposes, including the
issuance of obligations to refund an obligation subject to this
subsection.
(g) An action that:
(1) is taken by a political subdivision before July 1, 2006; and
(2) complies with the requirements in IC 6-14, as added by this
act;
shall be treated after June 30, 2006, as meeting the requirements
of IC 6-14, as added by this act.
(h) IC 6-15, as added by this act, applies only to property taxes
first due and payable after December 31, 2006. An action that:
(1) is taken by a political subdivision before July 1, 2006; and
(2) complies with the requirements of IC 6-15, as added by this
act;
shall be treated after June 30, 2006, as meeting the requirements
of IC 6-15, as added by this act.
(i) The department of local government finance may adopt
temporary rules in the manner provided in IC 4-22-2-37.1 for the
adoption of emergency rules to implement this act. A temporary
rule adopted under this subsection expires on the earliest of the
following:
(1) The date specified in the temporary rule.
(2) The date another temporary rule adopted under this
subsection supersedes the temporary rule.
(3) The date that a rule that supersedes the temporary rule is
adopted under IC 4-22-2.
(4) July 1, 2008.
IC 6-1.1-17-16(e) (repealed by this act), IC 6-1.1-18.5-8 (repealed
by this act), IC 6-1.1-19-4.2 (repealed by this act), IC 6-1.1-19-4.6
(repealed by this act), or IC 6-1.1-19-8 (repealed by this act) shall
be treated as a reference to the appropriate requirements and
procedures in IC 6-14, as added by this act.
(d) After June 30, 2006, to the extent that there is a substantially
similar requirement or procedure enacted in this act, a reference
in a law, rule, policy, form, contract, or other document to
IC 6-1.1-17-16.7 (repealed by this act) or IC 6-1.1-18-12 (repealed
by this act) shall be treated as a reference to the appropriate
requirements and procedures in IC 6-13-16, as added by this act,
and IC 6-15, as added by this act.
(e) Each county board of tax adjustment is terminated on July 1,
2006. Political subdivision budgets, tax rates, and taxes for each
year after 2006 shall be reviewed in conformity with IC 6-13, as
added by this act. A reference in any law to the county board of tax
adjustment does not have the effect of creating any procedure or
requirement not included in IC 6-13, as added by this act.
(f) This act, including IC 6-12-3-4, as added by this act, does not
increase the amount of debt that a political subdivision may incur
under the Constitution of the State of Indiana or any law that limits
debt to a percentage of the assessed value in the political
subdivision.
(g) Any law that limits the amount of anticipation warrants that
a political subdivision may issue or other short term borrowing
that a political subdivision may make to a percentage of the levy
imposed for a particular purpose or fund shall be treated after
December 31, 2006, as a reference to the percentage of the levy and
county income taxes raised for the particular purpose or fund.
(h) A reference in IC 12-13-8-5, IC 12-16-14-3, IC 12-19-7-4,
IC 12-19-7.5-6, IC 12-29-2-2, IC 16-35-3-3, or IC 21-2-11.5-3, all
as amended by this act, to controlled taxes imposed for 2006 shall
be treated as a reference to taxes used to compute the affected
political subdivision's 2006 controlled tax limit under IC 6-12-4, as
added by this act.
construed to effectuate the intent of the general assembly to:
(1) provide county income taxes as an alternative source of
revenue for tax increases traditionally raised through annual
increases in property tax levies tied to the assessed value
growth quotient;
(2) establish general tax controls over controlled property
taxes and the county income taxes used to replace controlled
property taxes;
(3) provide necessary funding to carry out the essential
governmental functions of political subdivisions;
(4) establish a rainy day fund in each political subdivision as
the primary source of savings for political subdivisions to use
during times of economic distress, to provide funds to
temporarily fund shortfalls, and for cash flow needs;
(5) provide for the continued funding and payment after June
30, 2006, of debt and lease rentals incurred by political
subdivisions and allocation areas before July 1, 2006;
(6) limit state distributions to replace revenue lost from the
granting of property tax replacement credits and homestead
credits;
(7) provide additional public and administrative review of debt
and lease rental obligations; and
(8) grant the department of local government finance adequate
authority to implement this act to carry out the intent of the
general assembly.
(b) The repeal of a provision in IC 6-1.1 or IC 6-3.5 by this act
shall not be construed to mean that the general assembly is
rescinding any policy adopted in another act in the same session as
this act. The department of local government finance shall
administer IC 6-11 through IC 6-15, all as added by this act, in a
manner that implements policies adopted in other acts that are not
inconsistent with the policies adopted in IC 6-11 through IC 6-13,
all as added by this act.
(c) Except with respect to limitations on the allocation factors
that may be used to distribute income taxes under IC 6-11-8, as
added by this act, and expansion of the purposes for which local
income taxes may be used, it is the intent of the general assembly
that political subdivisions:
(1) be authorized to raise under the controlled tax limits
imposed by this act substantially similar revenue from
controlled property taxes and controlled income taxes under
IC 6-11-7, as added by this act, as the political subdivision
could have raised if IC 6-11 through IC 6-13, all as added by
this act, had not been enacted; and
(2) receive substantially similar distributions under IC 6-11-8,
as added by this act, as the political subdivision could have
received under the county adjusted gross income tax, county
option income tax, and county economic development income
tax.
(d) The legislative council shall provide for introduction of
corrective legislation in the 2007 session of the general assembly to:
(1) bring any law in conflict with this act (including any law
enacted in the 2006 session of the general assembly) into
conformity with this act;
(2) make any technical change necessary or appropriate as the
result of the passage of this act; and
(3) make any changes in IC 6-11 through IC 6-15, all as added
by this act, or other related amendments in this act that are
necessary to carry out the intent of the general assembly
expressed in this SECTION.
(e) The department of local government finance is authorized to
make the adjustments in taxes, tax rates, allocations, and
distributions otherwise required by IC 6-11 through IC 6-13, all as
added by this act, to carry out the intent of this SECTION in 2006
and 2007. In order to assist the general assembly with bringing the
provisions of IC 6-11 through IC 6-13, all as added by this act, into
conformity with the intent of the general assembly, the department
of local government finance shall submit an initial report of its
activities under this subsection before July 1, 2007, and a final
report, before November 1, 2007, to the general assembly in an
electronic format under IC 5-14-6 and to the governor. The
department of local government finance may submit additional
preliminary reports or recommendations as the department
determines appropriate to assist the general assembly with
carrying out subsection (d).
SECTION, "adopting entity" has the meaning set forth in
IC 6-3.5-7-26.
(b) Notwithstanding IC 6-3.5-7-5, IC 6-3.5-7-6, and
IC 6-3.5-7-26, an adopting entity may adopt or amend an
ordinance under IC 6-3.5-7-26 in 2006 before June 1, 2006. A tax
rate imposed in an ordinance adopted before June 1, 2006, applies
to the adjusted gross income of county taxpayers on July 1, 2006.
of the following from the state general fund for purposes of making
the distributions for tuition support described in IC 21-3-1.7-9,
beginning July 1, 2005, and ending June 30, 2006:
(1) Twenty million one hundred thousand dollars
($20,100,000).
(2) An amount sufficient to enable the department of education
to make tuition support distributions after December 31, 2005,
and before July 1, 2006, in accordance with IC 21-1-30 and
IC 21-3 without requiring a reduction in tuition support
distributions to school corporations in the first six (6) months
of 2006.
The amount appropriated under this SECTION is in addition to
the amount appropriated by P.L.246-2005, SECTION 9 to the
department of education for distribution for tuition support. The
amount appropriated under this subsection shall be distributed in
the same manner and on the same schedule as other distributions
for tuition support subject to P.L.246-2005, SECTION 9.
(b) The deficiency appropriation made by this SECTION is not
subject to transfer to any other fund or subject to transfer,
assignment, or reassignment for any other use or purpose by:
(1) the state board of finance, notwithstanding IC 4-9.1-1-7,
IC 4-13-2-23, or any other law; or
(2) the budget agency, notwithstanding IC 4-12-1-12 or any
other law.
denied.
(d) References to the Indiana Code in this SECTION refer to the
Indiana Code in effect on March 1, 2001, unless otherwise stated.
(e) Notwithstanding any other law, a taxpayer who complies with
the requirements of this SECTION is entitled to the property tax
deduction for new manufacturing equipment in the amounts and
for the number of years provided under IC 6-1.1-12.1-4.5, as
determined by the department under subsection (h).
(f) The taxpayer shall provide the department with copies of the
taxpayer's:
(1) statement of benefits; and
(2) applications for deductions from assessed value;
for new manufacturing equipment placed in service in an economic
revitalization area that the taxpayer filed in 2001.
(g) If there are any deficiencies in the taxpayer's filings described
in subsection (f), the department shall assist the taxpayer in
completing the information necessary to determine:
(1) the assessed value of the new manufacturing equipment;
and
(2) the number of years over which the taxpayer is entitled to
the deduction under this SECTION.
(h) The department shall determine:
(1) the amount of the assessed value of the new manufacturing
equipment;
(2) the number of years over which the taxpayer is entitled to
the deduction under this SECTION; and
(3) the percentages used to compute the taxpayer's deductions;
in accordance with IC 6-1.1-12.1-4.5(d) and IC 6-1.1-12.1-4.5(e) as
if the taxpayer's applications for deductions had been approved in
2001.
(i) Notwithstanding IC 6-1.1-26 (as in effect on January 1, 2006),
when the department has completed the department's
determinations under subsection (h), the department shall issue an
order to the county auditor of the county in which the economic
revitalization area is located:
(1) describing the department's determinations under
subsection (h); and
subsection (b) and the amount that should be refunded to the taxpayer.
(e) Upon receiving a claim filed under this SECTION, the county
auditor shall determine whether the claim is correct. If the county
auditor determines that the claim is correct, the county auditor shall
submit the claim under IC 6-1.1-26-4 to the county board of
commissioners for review. The only grounds for disallowing the claim
under IC 6-1.1-26-4 are that the claimant is not a person that meets the
qualifications described in subsection (b) or that the amount claimed is
not the amount due to the taxpayer. If the claim is allowed, the county
auditor shall, without an appropriation being required, issue a warrant
to the claimant payable from the county general fund for the amount due
the claimant under this SECTION. The amount of the refund must equal
the amount of the claim allowed. Notwithstanding IC 6-1.1-26-5, no
interest is payable on the refund.
(f) This SECTION shall be liberally construed in favor of the
taxpayer to give effect to the purposes of this SECTION.
(f) (g) This SECTION expires December 31, 2007.
SECTION, "eligible district" means a fire protection district
established under IC 36-8-11:
(1) that expanded its territory after 1998; and
(2) for which the quotient expressed as a percentage of:
(A) the taxable assessed value of all tangible property in the
district for the assessment date (as defined in IC 6-1.1-1-2) in
2004; divided by
(B) subject to subsection (b), the taxable assessed value of all
tangible property in the district for the assessment date (as
defined in IC 6-1.1-1-2) in 1999;
is at least one hundred fifty percent (150%).
(b) To account for the change in the definition of "assessed
value" reflected in IC 6-1.1-1-3(a)(1) and IC 6-1.1-1-3(a)(2), the
taxable assessed value to be used for purposes of subsection
(a)(2)(B) is the product of:
(1) the actual taxable assessed value; multiplied by
(2) three (3).
(c) An eligible district may, before September 20, 2006, appeal to
the department of local government finance for relief from the levy
limitations imposed by IC 6-1.1-18.5 for property taxes first due
and payable in 2007. In the appeal the district must:
(1) state that it will be unable to carry out the governmental
functions committed to it by law unless the appeal is approved;
and
(2) present evidence that it is an eligible district.
(d) The maximum increase in an eligible district's levy allowed
under this SECTION is four hundred twenty-five thousand dollars
($425,000).
(e) The department of local government finance shall process the
appeal in the same manner that the department processes appeals
under IC 6-1.1-18.5-12.
(f) For purposes of computing an eligible district's ad valorem
property tax levy for taxes first due and payable in 2008, the
district's maximum permissible ad valorem property tax levy for
property taxes first due and payable in 2007 under STEP ONE of
IC 6-1.1-18.5-3(a) or STEP ONE of IC 6-1.1-18.5-3(b) includes the
amount of any increase in the district's levy approved under this
SECTION for property taxes first due and payable in 2007.
(g) This SECTION expires January 1, 2009.
revenue under IC 4-22-2 that repeals, amends, or supersedes
the temporary rule.
(2) The date another temporary rule is adopted under this
SECTION that repeals, amends, or supersedes a previously
adopted temporary rule.
(3) The date specified in the temporary rule.
(4) July 1, 2007.
and when so amended that said bill do pass.
Committee Vote: Yeas 12, Nays 0.
Kenley