HB 1478-2_ Filed 04/29/2007, 20:53
Adopted 04/29/2007
CONFERENCE COMMITTEE REPORT
DIGEST FOR EHB 1478
Citations Affected: IC 3-8-1-23.5; IC 3-11-2-12.8; IC 6-1.1; IC 6-2.5-5-8; IC 6-3.5; IC 6-9;
IC 8-18-21-13; IC 8-22-3.6-3; IC 12-19; IC 12-29; IC 13-18-8-2; IC 14-30; IC 14-33-9-1;
IC 20-45; IC 20-46-7; IC 21-14-2; IC 33-37-7-8; IC 36-7; IC 36-8; IC 36-9; IC 36-12-14-2.
Synopsis: Taxation. CONFERENCE COMMITTEE REPORT TO EHB 1478. Provides that in
2008, the standard deduction available for real property that qualifies for the homestead credit
may not exceed $45,000. Provides that beginning in 2009, the maximum deduction decreases
$1,000 each year until it reaches $40,000. Authorizes a county to adopt an additional county
adjusted gross income tax (CAGIT) rate or an additional county option income tax (COIT) rate.
Provides that the tax rate shall be set by the department of local government finance (DLGF) at
an amount sufficient to raise tax revenue to replace the estimated increase in the following year
of certain property tax levies in the county. Specifies that the tax rate may not exceed 1%.
Provides that in the first year the tax rate is imposed, the tax rate shall be set for each of the
following two years. Provides that the tax rate set for the first year must be increased a specified
amount above the amount needed to replace the tax levy growth, and that the excess tax revenue
raised in the first year must be deposited in the county stabilization fund. Establishes a county
stabilization fund in each county that imposes the additional tax rate. Provides that if the certified
distributions exceed the estimated replacement amount used to determine the tax rate, the excess
shall be deposited in the county stabilization fund. Specifies when money shall be distributed
from the county stabilization fund. Provides that the tax rate may not be reduced or rescinded,
but that the tax rate may be increased each year to replace the property tax levy growth that
would otherwise occur in the following year. Authorizes a county to impose an additional CAGIT
or COIT tax rate for public safety. Specifies the conditions under which a county may impose the
additional tax rate for public safety and specifies the maximum additional tax rate. Requires this
tax revenue to be distributed to the county and municipalities in the county and to be used for
public safety purposes. Provides that a county may impose a CAGIT or COIT tax rate of not more
than 1% for: (1) property tax replacement credits; (2) an increase in the homestead credit
percentage; or (3) property tax replacement credits for qualified residential property. Provides
that the assessed value growth quotient for a particular year for civil taxing units in Lake County
is zero unless this tax rate for property tax relief will be in effect at a rate of 1% in Lake County
for that calendar year. Provides that ordinances imposing, increasing, decreasing, or rescinding
CAGIT, COIT, and the county economic development income tax must be adopted after March
31 and before August 1 of a year. Provides that the ordinances take effect October 1 of a year.
Abolishes county boards of tax adjustment on December 31, 2008. Establishes a county board
of tax and capital projects review (review board) in each county on January 1, 2009. Provides
that in counties other than Marion County, a review board consists of members appointed from
various fiscal bodies within the county and two individuals elected on a nonpartisan basis.
Specifies the membership of the review board in Marion County. Provides that in those counties
that have a county board of tax adjustment, the review board has the powers and duties held by
a county board of tax adjustment before the county board of tax adjustment is abolished.
Requires the fiscal body of each political subdivision in a county to do the following every two
years: (1) Hold a public hearing on a proposed capital projects plan. (2) Adopt a capital projects
plan. Requires a capital projects plan to apply to at least the five years immediately following the
year the capital projects plan is adopted. Requires a review board to review and provide a written
report concerning each capital projects plan. Provides that a political subdivision may not: (1)
begin construction of a capital project; (2) enter into contracts for the construction of a capital
project; (3) issue bonds for a capital project; or (4) take certain other actions concerning a capital
project; unless the review board approves the capital project. Provides that the approval of the
DLGF is not required for an issuance of bonds that has been approved by the review board.
Provides that a capital project must be reviewed by a review board only if the capital project: (1)
is a controlled project for purposes of the petition and remonstrance procedures; and (2) will cost
the political subdivision more than $7,000,000. Provides that review board approval is not
required for water projects, wastewater projects, highway or road projects, or bridge projects.
Provides that the local government tax control board is abolished December 31, 2008. Beginning
in 2009, eliminates certain levy appeals for civil taxing units. Provides that after May 15, 2007,
the DLGF may not approve a school corporation's proposed bond issue that does not provide for
payments toward the principal of the bonds on at least an annual basis, lease rental agreement
that does not provide for repayments toward the present asset value of the lease at its inception
on at least an annual basis, or debt service fund loan to purchase school buses that does not
provide for payments toward the principal of the loan on at least an annual basis. Specifies that
in 2008 and 2009, the circuit breaker credit for taxes greater than 2% applies to homestead
property (rather than qualified residential property). Specifies that after 2009, the circuit breaker
credit for taxes greater than 2% applies to homestead property and that a circuit breaker credit
for taxes greater than 3% applies to property other than homestead property. Provides that a
school corporation's tuition support property tax levy may not be reduced because of a circuit
breaker credit. Provides that a redevelopment commission or the governing body of certain other
TIF districts may file with the county auditor a certified statement providing that for purposes
of computing and applying the circuit breaker credit, a taxpayer's property tax liability does not
include the liability for a tax increment replacement tax. Establishes a circuit breaker relief
appeal board. Provides that beginning in 2008, a county or two or more political subdivisions that
will have their property tax collections reduced by at least 2% in a year as a result of the
application of the circuit breaker credit may petition the board for relief from the application of
the circuit breaker credit. Requires a petitioning political subdivision to submit a proposed
financial plan to the board. Provides that the board may: (1) increase the threshold at which the
circuit breaker credit applies to a person's property tax liability; or (2) provide for a uniform
percentage reduction to circuit breaker credits otherwise provided in the county; if the governing
boards of all political subdivisions in the county agree to that plan. Allows Parke County to
impose an additional CAGIT rate of not more than 0.25% to: (1) fund the costs (including
pre-trial costs) of a capital trial that has been moved to another county for trial; and (2) to repay
money borrowed for that purpose. Increases the Allen County innkeeper's tax rate to 7%.
Authorizes Monroe County to adopt an additional COIT tax rate of not more than 0.25% to fund
a juvenile detention center. Raises the cap on the Vanderburgh County innkeepers' tax from 6%
to 8%. Provides that the additional county option income tax rate permitted in Howard County
must be adopted in increments of one hundredth percent. Provides that the portion of the judicial
salaries fee retained by a city or town shall be prioritized to fund city or town court operations.
Provides that, notwithstanding the December 31, 2006, statutory deadline for a political
subdivision to adopt an ordinance or resolution to provide local homestead credits in 2007, a
political subdivision may adopt such an ordinance or resolution after December 31, 2006, and
before June 1, 2007, to provide for a local homestead credit in 2007. Makes certain changes
concerning personal property abatement. Creates the annexation study committee. Makes other
changes. (This conference committee report does the following: (1) Provides that in 2008,
the standard deduction available for real property that qualifies for the homestead credit
may not exceed $45,000. Provides that beginning in 2009, the maximum deduction
decreases $1,000 each year until it reaches $40,000. (2) Specifies that the additional CAGIT
or COIT tax rate to freeze levy growth may not exceed 1%. Provides that the tax rate set
for the first year must be increased a specified amount above the amount needed to replace
the tax levy growth, and that the excess tax revenue raised in the first year must be
deposited in the county stabilization fund. (3) Provides that a county may impose a CAGIT
or COIT tax rate of not more than 1% for: (1) property tax replacement credits; (2) an
increase in the homestead credit percentage; or (3) property tax replacement credits for
qualified residential property. Provides that the assessed value growth quotient for a
particular year for civil taxing units in Lake County is zero unless this tax rate for property
tax relief will be in effect at a rate of 1% in Lake County for that calendar year. (4)
Authorizes a county to impose an additional CAGIT or COIT tax rate for public safety.
Specifies the conditions under which a county may impose the additional tax rate for public
safety and specifies the maximum additional tax rate. (5) Deletes the property tax reduction
trust fund from the bill. (6) Specifies that in 2008 and 2009, the circuit breaker credit for
taxes greater than 2% applies to homestead property (rather than qualified residential
property). Specifies that after 2009, the circuit breaker credit for taxes greater than 2%
applies to homestead property and that a circuit breaker credit for taxes greater than 3%
applies to property other than homestead property. (7) Provides that a school corporation's
tuition support property tax levy collections may not be reduced because of a circuit
breaker credit. (8) Specifies that the two elected members of the county board of tax and
capital projects review shall be elected on a nonpartisan basis. Specifies the membership
of the board in Marion County. (9) Provides that approval by the county board of tax and
capital projects review is not required for water projects, wastewater projects, highway or
road projects, or bridge projects. Deletes a provision allowing a board to modify a
proposed capital project. (10) Adds the provision concerning approval of a school
corporation's proposed bond issue, lease rental agreement, or debt service fund loan to
purchase school buses. (11) Deletes the state pick-up of tuition support levies, family and
children's fund levies, and costs of juvenile incarceration. (12) Deletes the provisions
specifying that the department of child services shall pay expenses that were payable before
January 1, 2008, from county family and children's funds. (13) Deletes the provision that
would eliminate property tax replacement credits after 2007. (14) Deletes the provision that
would abolish the property tax replacement fund. (15) Deletes the provision that would
eliminate homestead credits after 2011. (16) Deletes the provision concerning contracts to
discover omitted or undervalued property. (17) Adds the provisions concerning county
option income tax in Howard County. (18) Deletes the provision concerning the state rainy
day fund. (19) Deletes the assessment methods to be used in the assessment of a water based
adult entertainment center, including a riverboat. (20) Deletes the provisions concerning
annexation in Porter County. (21) Adds the provision concerning the additional Parke
County CAGIT for capital trial costs. (22) Adds the provision authorizing a redevelopment
commission or the governing body of certain other TIF districts to provide that for
purposes of the circuit breaker credit, a taxpayer's property tax liability does not include
the liability for a tax increment replacement tax. (23) Adds a provision concerning sales tax
exemptions for transactions in which a person acquires an aircraft for rental or leasing in
the ordinary course of the person's business. (24) Provides that the portion of the judicial
salaries fee retained by a city or town shall be prioritized to fund city or town court
operations. (25) Makes other changes.)
Effective: Upon passage; January 1, 2006 (retroactive); January 1, 2007 (retroactive); May 15,
2007 (retroactive); July 1, 2007; January 1, 2008.
Text Box
Adopted Rejected
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CONFERENCE COMMITTEE REPORT
MR. SPEAKER:
Your Conference Committee appointed to confer with a like committee from the Senate
upon Engrossed Senate Amendments to Engrossed House Bill No. 1478 respectfully reports
that said two committees have conferred and agreed as follows to wit:
that the House recede from its dissent from all Senate amendments and that
the House now concur in all Senate amendments to the bill and that the bill
be further amended as follows:
Delete the title and insert the following:
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
Delete everything after the enacting clause and insert the following:
SOURCE: IC 3-8-1-23.5; (07)CC147804.1. -->
SECTION 1. IC 3-8-1-23.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2007]: Sec. 23.5. A candidate for election as a member of the
county board of tax and capital projects review in 2008 and
thereafter must have resided in the county for at least one (1) year
before the election.
SOURCE: IC 3-11-2-12.8; (07)CC147804.2. -->
SECTION 2. IC 3-11-2-12.8 IS ADDED TO THE INDIANA CODE
AS A
NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2007]:
Sec. 12.8. (a) County board of tax and capital projects
review offices to be elected at the general election shall be placed
on the general election ballot after the offices described in sections
12 and 12.9 of this chapter.
(b) County board of tax and capital projects review offices shall
be placed in a separate column on the ballot.
(c) If the ballot contains a candidate for a county board of tax
and capital projects review office, the ballot must also contain a
statement that reads substantially as follows: "To vote for a
candidate for this office, make a voting mark on or in the square to
the left of the candidate's name. Vote for not more than two (2)
candidates for this office.".
SOURCE: IC 6-1.1-12-37; (07)CC147804.3. -->
SECTION 3. IC 6-1.1-12-37, AS AMENDED BY P.L.162-2006,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]: Sec. 37. (a) Each year a person who is entitled to
receive the homestead credit provided under IC 6-1.1-20.9 for property
taxes payable in the following year is entitled to a standard deduction
from the assessed value of the real property, mobile home not assessed
as real property, or manufactured home not assessed as real property
that qualifies for the homestead credit. The auditor of the county shall
record and make the deduction for the person qualifying for the
deduction.
(b) Except as provided in section 40.5 of this chapter, the total
amount of the deduction that a person may receive under this section
for a particular year is the lesser of:
(1) one-half (1/2) of the assessed value of the real property,
mobile home not assessed as real property, or manufactured home
not assessed as real property; or
(2) for property taxes first due and payable:
(A) before January 1, 2007, thirty-five thousand dollars
($35,000);
(B) after December 31, 2006, and before January 1, 2008,
2009, forty-five thousand dollars ($45,000); and
(C) after December 31, 2007, thirty-five thousand dollars
($35,000). 2008, and before January 1, 2010, forty-four
thousand dollars ($44,000);
(D) after December 31, 2009, and before January 1, 2011,
forty-three thousand dollars ($43,000);
(E) after December 31, 2010, and before January 1, 2012,
forty-two thousand dollars ($42,000);
(F) after December 31, 2011, and before January 1, 2013,
forty-one thousand dollars ($41,000); and
(G) after December 31, 2012, forty thousand dollars
($40,000).
(c) A person who has sold real property, a mobile home not assessed
as real property, or a manufactured home not assessed as real property
to another person under a contract that provides that the contract buyer
is to pay the property taxes on the real property, mobile home, or
manufactured home may not claim the deduction provided under this
section with respect to that real property, mobile home, or
manufactured home.
SOURCE: IC 6-1.1-12.1-1; (07)CC147804.4. -->
SECTION 4. IC 6-1.1-12.1-1, AS AMENDED BY P.L.154-2006,
SECTION 24, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2006 (RETROACTIVE)]: Sec. 1. For purposes of this
chapter:
(1) "Economic revitalization area" means an area which is within
the corporate limits of a city, town, or county which has become
undesirable for, or impossible of, normal development and
occupancy because of a lack of development, cessation of growth,
deterioration of improvements or character of occupancy, age,
obsolescence, substandard buildings, or other factors which have
impaired values or prevent a normal development of property or
use of property. The term "economic revitalization area" also
includes:
(A) any area where a facility or a group of facilities that are
technologically, economically, or energy obsolete are located
and where the obsolescence may lead to a decline in
employment and tax revenues; and
(B) a residentially distressed area, except as otherwise
provided in this chapter.
(2) "City" means any city in this state, and "town" means any town
incorporated under IC 36-5-1.
(3) "New manufacturing equipment" means tangible personal
property that a deduction applicant:
(A) installs after February 28, 1983, and on or before the
approval deadline determined under section 9 of this chapter,
in an area that is declared an economic revitalization area after
February 28, 1983, in which a deduction for tangible personal
property is allowed;
(B) uses in the direct production, manufacture, fabrication,
assembly, extraction, mining, processing, refining, or finishing
of other tangible personal property, including but not limited
to use to dispose of solid waste or hazardous waste by
converting the solid waste or hazardous waste into energy or
other useful products;
(C) acquires for use as described in clause (B):
(i) in an arms length transaction from an entity that is not an
affiliate of the deduction applicant, for use as described in
clause (B); and if the tangible personal property has been
previously used in Indiana before the installation
described in clause (A); or
(ii) in any manner, if the tangible personal property has
never been previously used in Indiana before the
installation described in clause (A); and
(D) has never used for any purpose in Indiana before the
installation described in clause (A).
However, notwithstanding any other law, the term includes
tangible personal property that is used to dispose of solid waste or
hazardous waste by converting the solid waste or hazardous waste
into energy or other useful products and was installed after March
1, 1993, and before March 2, 1996, even if the property was
installed before the area where the property is located was
designated as an economic revitalization area or the statement of
benefits for the property was approved by the designating body.
(4) "Property" means a building or structure, but does not include
land.
(5) "Redevelopment" means the construction of new structures,
in economic revitalization areas, either:
(A) on unimproved real estate; or
(B) on real estate upon which a prior existing structure is
demolished to allow for a new construction.
(6) "Rehabilitation" means the remodeling, repair, or betterment
of property in any manner or any enlargement or extension of
property.
(7) "Designating body" means the following:
(A) For a county that does not contain a consolidated city, the
fiscal body of the county, city, or town.
(B) For a county containing a consolidated city, the
metropolitan development commission.
(8) "Deduction application" means:
(A) the application filed in accordance with section 5 of this
chapter by a property owner who desires to obtain the
deduction provided by section 3 of this chapter;
(B) the application filed in accordance with section 5.4 of this
chapter by a person who desires to obtain the deduction
provided by section 4.5 of this chapter; or
(C) the application filed in accordance with section 5.3 of this
chapter by a property owner that desires to obtain the
deduction provided by section 4.8 of this chapter.
(9) "Designation application" means an application that is filed
with a designating body to assist that body in making a
determination about whether a particular area should be
designated as an economic revitalization area.
(10) "Hazardous waste" has the meaning set forth in
IC 13-11-2-99(a). The term includes waste determined to be a
hazardous waste under IC 13-22-2-3(b).
(11) "Solid waste" has the meaning set forth in IC 13-11-2-205(a).
However, the term does not include dead animals or any animal
solid or semisolid wastes.
(12) "New research and development equipment" means tangible
personal property that:
(A) a deduction applicant installs after June 30, 2000, 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) laboratory equipment;
(ii) research and development equipment;
(iii) computers and computer software;
(iv) telecommunications equipment; or
(v) testing equipment;
(C) the deduction applicant uses in research and development
activities devoted directly and exclusively to experimental or
laboratory research and development for new products, new
uses of existing products, or improving or testing existing
products;
(D) the deduction applicant acquires for purposes described
in this subdivision:
(i) in an arms length transaction from an entity that is not an
affiliate of the deduction applicant, for purposes described
in this subdivision; and if the tangible personal property
has been previously used in Indiana before the
installation described in clause (A); or
(ii) in any manner, if the tangible personal property has
never been previously used in Indiana before the
installation described in clause (A); and
(E) the deduction applicant has never used for any purpose in
Indiana before the installation described in clause (A).
The term does not include equipment installed in facilities used
for or in connection with efficiency surveys, management studies,
consumer surveys, economic surveys, advertising or promotion,
or research in connection with literacy, history, or similar
projects.
(13) "New logistical distribution equipment" means tangible
personal property that:
(A) 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) the deduction applicant acquires for the storage or
distribution of goods, services, or information:
(i) in an arms length transaction from an entity that is not an
affiliate of the deduction applicant, and uses for the storage
or distribution of goods, services, or information; and if the
tangible personal property has been previously used in
Indiana before the installation described in clause (A);
and
(ii) in any manner, if the tangible personal property has
never been previously used in Indiana before the
installation described in clause (A); and
(D) the deduction applicant has never used for any purpose in
Indiana before the installation described in clause (A).
(14) "New information technology equipment" means tangible
personal property that:
(A) 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
(vii) fiber optics;
(C) the deduction applicant acquires in an arms length
transaction from an entity that is not an affiliate of the
deduction applicant; and
(D) the deduction applicant never used for any purpose in
Indiana before the installation described in clause (A).
(15) "Deduction applicant" means an owner of tangible personal
property who makes a deduction application.
(16) "Affiliate" means an entity that effectively controls or is
controlled by a deduction applicant or is associated with a
deduction applicant under common ownership or control, whether
by shareholdings or other means.
(17) "Eligible vacant building" means a building that:
(A) is zoned for commercial or industrial purposes; and
(B) is unoccupied for at least one (1) year before the owner of
the building or a tenant of the owner occupies the building, as
evidenced by a valid certificate of occupancy, paid utility
receipts, executed lease agreements, or any other evidence of
occupation that the department of local government finance
requires.
SOURCE: IC 6-1.1-17-3; (07)CC147804.5. -->
SECTION 5. IC 6-1.1-17-3, AS AMENDED BY P.L.162-2006,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]: Sec. 3. (a) The proper officers of a political subdivision
shall formulate its estimated budget and its proposed tax rate and tax
levy on the form prescribed by the department of local government
finance and approved by the state board of accounts. The political
subdivision shall give notice by publication to taxpayers of:
(1) the estimated budget;
(2) the estimated maximum permissible levy;
(3) the current and proposed tax levies of each fund; and
(4) the amounts of excessive levy appeals to be requested.
In the notice, the political subdivision shall also state the time and
place at which a public hearing will be held on these items. The notice
shall be published twice in accordance with IC 5-3-1 with the first
publication at least ten (10) days before the date fixed for the public
hearing. Beginning in 2009, the duties required by this subsection must
be completed before August 10 of the calendar year. A political
subdivision shall provide the estimated budget and levy information
required for the notice under subsection (b) to the county auditor on the
schedule determined by the department of local government finance.
(b) Beginning in 2009, before August 10 of a calendar year, the
county auditor shall mail to the last known address of each person
liable for any property taxes, as shown on the tax duplicate, or to the
last known address of the most recent owner shown in the transfer
book, a statement that includes:
(1) the assessed valuation as of the assessment date in the current
calendar year of tangible property on which the person will be
liable for property taxes first due and payable in the immediately
succeeding calendar year and notice to the person of the
opportunity to appeal the assessed valuation under
IC 6-1.1-15-1(b);
(2) the amount of property taxes for which the person will be
liable to each political subdivision on the tangible property for
taxes first due and payable in the immediately succeeding
calendar year, taking into account all factors that affect that
liability, including:
(A) the estimated budget and proposed tax rate and tax levy
formulated by the political subdivision under subsection (a);
(B) any deductions or exemptions that apply to the assessed
valuation of the tangible property;
(C) any credits that apply in the determination of the tax
liability; and
(D) the county auditor's best estimate of the effects on the tax
liability that might result from actions of:
(i) the county board of tax adjustment (before January 1,
2009) or the county board of tax and capital projects
review (after December 31, 2008); or
(ii) the department of local government finance;
(3) a prominently displayed notation that:
(A) the estimate under subdivision (2) is based on the best
information available at the time the statement is mailed; and
(B) based on various factors, including potential actions by:
(i) the county board of tax adjustment (before January 1,
2009) or the county board of tax and capital projects
review (after December 31, 2008); or
(ii) the department of local government finance;
it is possible that the tax liability as finally determined will
differ substantially from the estimate;
(4) comparative information showing the amount of property
taxes for which the person is liable to each political subdivision
on the tangible property for taxes first due and payable in the
current year; and
(5) the date, time, and place at which the political subdivision will
hold a public hearing on the political subdivision's estimated
budget and proposed tax rate and tax levy as required under
subsection (a).
(c) The department of local government finance shall:
(1) prescribe a form for; and
(2) provide assistance to county auditors in preparing;
statements under subsection (b). Mailing the statement described in
subsection (b) to a mortgagee maintaining an escrow account for a
person who is liable for any property taxes shall not be construed as
compliance with subsection (b).
(d) The board of directors of a solid waste management district
established under IC 13-21 or IC 13-9.5-2 (before its repeal) may
conduct the public hearing required under subsection (a):
(1) in any county of the solid waste management district; and
(2) in accordance with the annual notice of meetings published
under IC 13-21-5-2.
(e) The trustee of each township in the county shall estimate the
amount necessary to meet the cost of township assistance in the
township for the ensuing calendar 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.
(f) A county shall adopt with the county budget and the department
of local government finance shall certify under section 16 of this
chapter a tax rate sufficient to raise the levy necessary to pay the
following:
(1) The cost of child services (as defined in IC 12-19-7-1) of the
county payable from the family and children's fund.
(2) The cost of children's psychiatric residential treatment
services (as defined in IC 12-19-7.5-1) of the county payable from
the children's psychiatric residential treatment services fund.
A budget, tax rate, or tax levy adopted by a county fiscal body or
approved or modified by a county board of tax adjustment that is less
than the levy necessary to pay the costs described in subdivision (1) or
(2) shall not be treated as a final budget, tax rate, or tax levy under
section 11 of this chapter.
SOURCE: IC 6-1.1-17-5; (07)CC147804.6. -->
SECTION 6. IC 6-1.1-17-5, AS AMENDED BY P.L.169-2006,
SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]: Sec. 5. (a) The officers of political subdivisions shall
meet each year to fix the budget, tax rate, and tax levy of their
respective subdivisions for the ensuing budget year as follows:
(1) The fiscal body of a consolidated city and county, not later
than the last meeting of the fiscal body in September.
(2) The fiscal body of a municipality, not later than September 30.
(3) The board of school trustees of a school corporation that is
located in a city having a population of more than one hundred
five thousand (105,000) but less than one hundred twenty
thousand (120,000), not later than:
(A) the time required in section 5.6(b) of this chapter; or
(B) September 20 if a resolution adopted under section 5.6(d)
of this chapter is in effect.
(4) The proper officers of all other political subdivisions, not later
than September 20.
Except in a consolidated city and county and in a second class city, the
public hearing required by section 3 of this chapter must be completed
at least ten (10) days before the proper officers of the political
subdivision meet to fix the budget, tax rate, and tax levy. In a
consolidated city and county and in a second class city, that public
hearing, by any committee or by the entire fiscal body, may be held at
any time after introduction of the budget.
(b) Ten (10) or more taxpayers may object to a budget, tax rate, or
tax levy of a political subdivision fixed under subsection (a) by filing
an objection petition with the proper officers of the political
subdivision not more than seven (7) days after the hearing. The
objection petition must specifically identify the provisions of the
budget, tax rate, and tax levy to which the taxpayers object.
(c) If a petition is filed under subsection (b), 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.
(d) This subsection does not apply to a school corporation. Each
year at least two (2) days before the first meeting after September 20
of the county board of tax adjustment (before January 1, 2009) or the
county board of tax and capital projects review (after December
31, 2008) held under IC 6-1.1-29-4, a political subdivision shall file
with the county auditor:
(1) a statement of the tax rate and levy fixed by the political
subdivision for the ensuing budget year;
(2) two (2) copies of the budget adopted by the political
subdivision for the ensuing budget year; and
(3) two (2) copies of any findings adopted under subsection (c).
Each year the county auditor shall present these items to the county
board of tax adjustment (before January 1, 2009) or the county
board of tax and capital projects review (after December 31, 2008)
at the board's first meeting under IC 6-1.1-29-4 after September 20
of that year.
(e) In a consolidated city and county and in a second class city, the
clerk of the fiscal body shall, notwithstanding subsection (d), file the
adopted budget and tax ordinances with the county board of tax
adjustment (before January 1, 2009) or the county board of tax and
capital projects review (after December 31, 2008) within two (2)
days after the ordinances are signed by the executive, or within two (2)
days after action is taken by the fiscal body to override a veto of the
ordinances, whichever is later.
(f) If a fiscal body does not fix the budget, tax rate, and tax levy of
the political subdivisions for the ensuing budget year as required under
this section, the most recent annual appropriations and annual tax levy
are continued for the ensuing budget year.
SOURCE: IC 6-1.1-17-5.6; (07)CC147804.7. -->
SECTION 7. IC 6-1.1-17-5.6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 5.6. (a) This section
applies only to a school corporation that is located in a city having a
population of more than one hundred five thousand (105,000) but less
than one hundred twenty thousand (120,000).
(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
September 20.
(c) Each year, at least two (2) days before the first meeting
after
September 20 of the county board of tax adjustment
(before January
1, 2009) or the county board of tax and capital projects review
(after December 31, 2008) held under IC 6-1.1-29-4, the school
corporation shall file with the county auditor:
(1) a statement of the tax rate and tax levy fixed 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 of local
government finance under section 16(i) of this chapter that
specifies a proposed revision, reduction, or increase in the budget
adopted by the school corporation for the ensuing budget year.
Each year the county auditor shall present these items to the county
board of tax adjustment (before January 1, 2009) or the county
board of tax and capital projects review (after December 31, 2008)
at the board's first meeting after September 20 of that 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.
SOURCE: IC 6-1.1-17-6; (07)CC147804.8. -->
SECTION 8. IC 6-1.1-17-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 6. (a) The county board
of tax adjustment
(before January 1, 2009) or the county board of
tax and capital projects review (after December 31, 2008) shall
review the budget, tax rate, and tax levy of each political subdivision
filed with the county auditor under section 5 or 5.6 of this chapter. The
board shall revise or reduce, but not increase, any budget, tax rate, or
tax levy in order:
(1) to limit the tax rate to the maximum amount permitted under
IC 6-1.1-18; and
(2) to limit the budget to the amount of revenue to be available in
the ensuing budget year for the political subdivision.
(b) The county board of tax adjustment
(before January 1, 2009)
or the county board of tax and capital projects review (after
December 31, 2008) 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.
(c) When the county board of tax adjustment
(before January 1,
2009) or the county board of tax and capital projects review (after
December 31, 2008) makes a revision or reduction in a budget, tax
rate, or tax levy, it shall file with the county auditor a written order
which indicates the action taken. If the board reduces the budget, it
shall also indicate the reason for the reduction in the order. The
chairman of the county board shall sign the order.
SOURCE: IC 6-1.1-17-7; (07)CC147804.9. -->
SECTION 9. IC 6-1.1-17-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 7. If the boundaries of
a political subdivision cross one (1) or more county lines, the budget,
tax levy, and tax rate fixed by the political subdivision shall be filed
with the county auditor of each affected county in the manner
prescribed in section 5 or 5.6 of this chapter. The board of tax
adjustment of the county which contains the largest portion of the value
of property taxable by the political subdivision, as determined from the
abstracts of taxable values last filed with the auditor of state, has
jurisdiction over the budget, tax rate, and tax levy to the same extent as
if the property taxable by the political subdivision were wholly within
the county. The secretary of the county board of tax adjustment (before
January 1, 2009) or the county board of tax and capital projects
review (after December 31, 2008) shall notify the county auditor of
each affected county of the action of the board. Appeals from actions
of the county board of tax adjustment (before January 1, 2009) or the
county board of tax and capital projects review (after December
31, 2008) may be initiated in any affected county.
SOURCE: IC 6-1.1-17-8; (07)CC147804.10. -->
SECTION 10. IC 6-1.1-17-8, AS AMENDED BY P.L.2-2006,
SECTION 37, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]: Sec. 8. (a) If the county board of tax adjustment
(before January 1, 2009) or the county board of tax and capital
projects review (after December 31, 2008) determines that the
maximum aggregate tax rate permitted within a political subdivision
under IC 6-1.1-18 is inadequate, the county board shall, subject to the
limitations prescribed in IC 20-45-4, file its written recommendations
in duplicate with the county auditor. The board shall include with its
recommendations:
(1) an analysis of the aggregate tax rate within the political
subdivision;
(2) a recommended breakdown of the aggregate tax rate among
the political subdivisions whose tax rates compose the aggregate
tax rate within the political subdivision; and
(3) any other information that the county board considers relevant
to the matter.
(b) The county auditor shall forward one (1) copy of the county
board's recommendations to the department of local government
finance and shall retain the other copy in the county auditor's office.
The department of local government finance shall, in the manner
prescribed in section 16 of this chapter, review the budgets by fund, tax
rates, and tax levies of the political subdivisions described in
subsection (a)(2).
SOURCE: IC 6-1.1-17-9; (07)CC147804.11. -->
SECTION 11. IC 6-1.1-17-9 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 9. (a) The county board
of tax adjustment
(before January 1, 2009) or the county board of
tax and capital projects review (after December 31, 2008) shall
complete the duties assigned to it under this chapter on or before
October 1st of each year, except that in a consolidated city and county
and in a county containing a second class city, the duties of this board
need not be completed until November 1 of each year.
(b) If the county board of tax adjustment (before January 1, 2009)
or the county board of tax and capital projects review (after
December 31, 2008) fails to complete the duties assigned to it within
the time prescribed in this section or to reduce aggregate tax rates so
that they do not exceed the maximum rates permitted under
IC 6-1.1-18, the county auditor shall calculate and fix the tax rate
within each political subdivision of the county so that the maximum
rate permitted under IC 6-1.1-18 is not exceeded.
(c) When the county auditor calculates and fixes tax rates, he the
county auditor shall send a certificate notice of the rate he has fixed
those rates to each political subdivision of the county. He The county
auditor shall send these notices within five (5) days after publication
of the notice required by section 12 of this chapter.
(d) When the county auditor calculates and fixes tax rates, his that
action shall be treated as if it were the action of the county board of tax
adjustment (before January 1, 2009) or the county board of tax and
capital projects review (after December 31, 2008).
SOURCE: IC 6-1.1-17-10; (07)CC147804.12. -->
SECTION 12. IC 6-1.1-17-10 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 10. When the aggregate
tax rate within a political subdivision, as approved or modified by the
county board of tax adjustment (before January 1, 2009) or the
county board of tax and capital projects review (after December
31, 2008), exceeds the maximum aggregate tax rate prescribed in
IC 6-1.1-18-3(a), the county auditor shall certify the budgets, tax rates,
and tax levies of the political subdivisions whose tax rates compose the
aggregate tax rate within the political subdivision, as approved or
modified by the county board, to the department of local government
finance for final review. For purposes of this section, the maximum
aggregate tax rate limit exceptions provided in IC 6-1.1-18-3(b) do not
apply.
SOURCE: IC 6-1.1-17-11; (07)CC147804.13. -->
SECTION 13. IC 6-1.1-17-11 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 11. A budget, tax rate,
or tax levy of a political subdivision, as approved or modified by the
county board of tax adjustment (before January 1, 2009) or the
county board of tax and capital projects review (after December
31, 2008), is final unless:
(1) action is taken by the county auditor in the manner provided
under section 9 of this chapter;
(2) the action of the county board is subject to review by the
department of local government finance under section 8 or 10 of
this chapter; or
(3) an appeal to the department of local government finance is
initiated with respect to the budget, tax rate, or tax levy.
SOURCE: IC 6-1.1-17-12; (07)CC147804.14. -->
SECTION 14. IC 6-1.1-17-12 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 12. As soon as the
budgets, tax rates, and tax levies are approved or modified by the
county board of tax adjustment
(before January 1, 2009) or the
county board of tax and capital projects review (after December
31, 2008), the county auditor shall within fifteen (15) days prepare a
notice of the tax rates to be charged on each one hundred dollars ($100)
of assessed valuation for the various funds in each taxing district. The
notice shall also inform the taxpayers of the manner in which they may
initiate an appeal of the county board's action. The county auditor shall
post the notice at the county courthouse and publish it in two (2)
newspapers which represent different political parties and which have
a general circulation in the county.
SOURCE: IC 6-1.1-17-14; (07)CC147804.15. -->
SECTION 15. IC 6-1.1-17-14, AS AMENDED BY P.L.234-2005,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]: Sec. 14. The county auditor shall initiate an appeal to
the department of local government finance if the county fiscal body,
or the county board of tax adjustment (before January 1, 2009), or the
county board of tax and capital projects review (after December
31, 2008) reduces:
(1) a township assistance tax rate below the rate necessary to meet
the estimated cost of township assistance;
(2) a family and children's fund tax rate below the rate necessary
to collect the levy recommended by the department of child
services; or
(3) a children's psychiatric residential treatment services fund tax
rate below the rate necessary to collect the levy recommended by
the department of child services.
SOURCE: IC 6-1.1-17-15; (07)CC147804.16. -->
SECTION 16. IC 6-1.1-17-15 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 15. A political
subdivision may appeal to the department of local government finance
for an increase in its tax rate or tax levy as fixed by the county board of
tax adjustment (before January 1, 2009), the county board of tax
and capital projects review (after December 31, 2008), or the county
auditor. To initiate the appeal, the political subdivision must file a
statement with the department of local government finance not later
than ten (10) days after publication of the notice required by section 12
of this chapter. The legislative body of the political subdivision must
authorize the filing of the statement by adopting a resolution. The
resolution must be attached to the statement of objections, and the
statement must be signed by the following officers:
(1) In the case of counties, by the board of county commissioners
and by the president of the county council.
(2) In the case of all other political subdivisions, by the highest
executive officer and by the presiding officer of the legislative
body.
SOURCE: IC 6-1.1-18-2; (07)CC147804.17. -->
SECTION 17. IC 6-1.1-18-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 2. The state may not
impose a tax rate on tangible property in excess of thirty-three
hundredths of one cent ($0.0033) on each one hundred dollars ($100)
of assessed valuation. The state tax rate is not subject to review by
county boards of tax adjustment (before January 1, 2009), county
boards of tax and capital projects review (after December 31,
2008), or county auditors. This section does not apply to political
subdivisions of the state.
SOURCE: IC 6-1.1-18-3; (07)CC147804.18. -->
SECTION 18. IC 6-1.1-18-3, AS AMENDED BY P.L.2-2006,
SECTION 41, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]: Sec. 3. (a) Except as provided in subsection (b), the
sum of all tax rates for all political subdivisions imposed on tangible
property within a political subdivision may not exceed:
(1) forty-one and sixty-seven hundredths cents ($0.4167) on each
one hundred dollars ($100) of assessed valuation in territory
outside the corporate limits of a city or town; or
(2) sixty-six and sixty-seven hundredths cents ($0.6667) on each
one hundred dollars ($100) of assessed valuation in territory
inside the corporate limits of a city or town.
(b) The proper officers of a political subdivision shall fix tax rates
which are sufficient to provide funds for the purposes itemized in this
subsection. The portion of a tax rate fixed by a political subdivision
shall not be considered in computing the tax rate limits prescribed in
subsection (a) if that portion is to be used for one (1) of the following
purposes:
(1) To pay the principal or interest on a funding, refunding, or
judgment funding obligation of the political subdivision.
(2) To pay the principal or interest on an outstanding obligation
issued by the political subdivision if notice of the sale of the
obligation was published before March 9, 1937.
(3) To pay the principal or interest upon:
(A) an obligation issued by the political subdivision to meet an
emergency which results from a flood, fire, pestilence, 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, or IC 36-5-2-11 to enable a city, town, or county
to acquire necessary equipment or facilities for municipal or
county government.
(4) To pay the principal or interest upon an obligation issued in
the manner provided in 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.
(5) To pay a judgment rendered against the political subdivision.
(6) To meet the requirements of the family and children's fund for
child services (as defined in IC 12-19-7-1).
(7) To meet the requirements of the county hospital care for the
indigent fund.
(8) 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).
(c) Except as otherwise provided in IC 6-1.1-19, IC 6-1.1-18.5,
IC 20-45, or IC 20-46, a county board of tax adjustment (before
January 1, 2009), a county board of tax and capital projects review
(after December 31, 2008), a county auditor, or the department of
local government finance may review the portion of a tax rate
described in subsection (b) only to determine if it exceeds the portion
actually needed to provide for one (1) of the purposes itemized in that
subsection.
SOURCE: IC 6-1.1-18.5-2; (07)CC147804.19. -->
SECTION 19. IC 6-1.1-18.5-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2. (a) As used in
this section, "Indiana nonfarm personal income" means the estimate of
total nonfarm personal income for Indiana in a calendar year as
computed by the federal Bureau of Economic Analysis using any actual
data for the calendar year and any estimated data determined
appropriate by the federal Bureau of Economic Analysis.
(b) Subject to subsection (c), for purposes of determining a civil
taxing unit's maximum permissible ad valorem property tax levy for an
ensuing calendar year, the civil taxing unit shall use the assessed value
growth quotient determined in the last STEP of the following STEPS:
STEP ONE: For each of the six (6) calendar years immediately
preceding the year in which a budget is adopted under
IC 6-1.1-17-5 for the ensuing calendar year, divide the Indiana
nonfarm personal income for the calendar year by the Indiana
nonfarm personal income for the calendar year immediately
preceding that calendar year, rounding to the nearest
one-thousandth (0.001).
STEP TWO: Determine the sum of the STEP ONE results.
STEP THREE: Divide the STEP TWO result by six (6), rounding
to the nearest one-thousandth (0.001).
STEP FOUR: Determine the lesser of the following:
(A) The STEP THREE quotient.
(B) One and six-hundredths (1.06).
(c) This subsection applies only to civil taxing units in Lake
County. Notwithstanding any other provision, for property taxes
first due and payable after December 31, 2007, the assessed value
growth quotient used to determine a civil taxing unit's maximum
permissible ad valorem property tax levy under this chapter for a
particular calendar year is zero (0) unless a tax rate of one percent
(1%) will be in effect under IC 6-3.5-1.1-26 or IC 6-3.5-6-32 in
Lake County for that calendar year.
SOURCE: IC 6-1.1-18.5-3; (07)CC147804.20. -->
SECTION 20. IC 6-1.1-18.5-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3. (a) Except as
otherwise provided in this chapter and IC 6-3.5-8-12, a civil taxing unit
that is treated as not being located in an adopting county under section
4 of this chapter may not impose an ad valorem property tax levy for an
ensuing calendar year that exceeds the amount determined in the last
STEP of the following STEPS:
STEP ONE: Add the civil taxing unit's maximum permissible ad
valorem property tax levy for the preceding calendar year to the
part of the civil taxing unit's certified share, if any, that was used
to reduce the civil taxing unit's ad valorem property tax levy under
STEP EIGHT of subsection (b) for that preceding calendar year.
STEP TWO: Multiply the amount determined in STEP ONE by
the amount determined in the last STEP of section 2(b) of this
chapter.
STEP THREE: Determine the lesser of one and fifteen hundredths
(1.15) or the quotient (rounded to the nearest ten-thousandth
(0.0001)), of the assessed value of all taxable property subject to
the civil taxing unit's ad valorem property tax levy for the ensuing
calendar year, divided by the assessed value of all taxable
property that is subject to the civil taxing unit's ad valorem
property tax levy for the ensuing calendar year and that is
contained within the geographic area that was subject to the civil
taxing unit's ad valorem property tax levy in the preceding
calendar year.
STEP FOUR: Determine the greater of the amount determined in
STEP THREE or one (1).
STEP FIVE: Multiply the amount determined in STEP TWO by
the amount determined in STEP FOUR.
STEP SIX: Add the amount determined under STEP TWO to the
amount determined under subsection (c).
STEP SEVEN: Determine the greater of the amount determined
under STEP FIVE or the amount determined under STEP SIX.
(b) Except as otherwise provided in this chapter and IC 6-3.5-8-12,
a civil taxing unit that is treated as being located in an adopting county
under section 4 of this chapter may not impose an ad valorem property
tax levy for an ensuing calendar year that exceeds the amount
determined in the last STEP of the following STEPS:
STEP ONE: Add the civil taxing unit's maximum permissible ad
valorem property tax levy for the preceding calendar year to the
part of the civil taxing unit's certified share, if any, used to reduce
the civil taxing unit's ad valorem property tax levy under STEP
EIGHT of this subsection for that preceding calendar year.
STEP TWO: Multiply the amount determined in STEP ONE by
the amount determined in the last STEP of section 2(b) of this
chapter.
STEP THREE: Determine the lesser of one and fifteen hundredths
(1.15) or the quotient of the assessed value of all taxable property
subject to the civil taxing unit's ad valorem property tax levy for
the ensuing calendar year divided by the assessed value of all
taxable property that is subject to the civil taxing unit's ad
valorem property tax levy for the ensuing calendar year and that
is contained within the geographic area that was subject to the
civil taxing unit's ad valorem property tax levy in the preceding
calendar year.
STEP FOUR: Determine the greater of the amount determined in
STEP THREE or one (1).
STEP FIVE: Multiply the amount determined in STEP TWO by
the amount determined in STEP FOUR.
STEP SIX: Add the amount determined under STEP TWO to the
amount determined under subsection (c).
STEP SEVEN: Determine the greater of the amount determined
under STEP FIVE or the amount determined under STEP SIX.
STEP EIGHT: Subtract the amount determined under STEP FIVE
of subsection (e) from the amount determined under STEP
SEVEN of this subsection.
(c) If a civil taxing unit in the immediately preceding calendar year
provided an area outside its boundaries with services on a contractual
basis and in the ensuing calendar year that area has been annexed by
the civil taxing unit, the amount to be entered under STEP SIX of
subsection (a) or STEP SIX of subsection (b), as the case may be,
equals the amount paid by the annexed area during the immediately
preceding calendar year for services that the civil taxing unit must
provide to that area during the ensuing calendar year as a result of the
annexation. In all other cases, the amount to be entered under STEP
SIX of subsection (a) or STEP SIX of subsection (b), as the case may
be, equals zero (0).
(d) This subsection applies only to civil taxing units located in a
county having a county adjusted gross income tax rate for resident
county taxpayers (as defined in IC 6-3.5-1.1-1) of one percent (1%) as
of January 1 of the ensuing calendar year. For each civil taxing unit, the
amount to be added to the amount determined in subsection (e), STEP
FOUR, is determined using the following formula:
STEP ONE: Multiply the civil taxing unit's maximum permissible
ad valorem property tax levy for the preceding calendar year by
two percent (2%).
STEP TWO: For the determination year, the amount to be used as
the STEP TWO amount is the amount determined in subsection
(f) for the civil taxing unit. For each year following the
determination year the STEP TWO amount is the lesser of:
(A) the amount determined in STEP ONE; or
(B) the amount determined in subsection (f) for the civil taxing
unit.
STEP THREE: Determine the greater of:
(A) zero (0); or
(B) the civil taxing unit's certified share for the ensuing
calendar year minus the greater of:
(i) the civil taxing unit's certified share for the calendar year
that immediately precedes the ensuing calendar year; or
(ii) the civil taxing unit's base year certified share.
STEP FOUR: Determine the greater of:
(A) zero (0); or
(B) the amount determined in STEP TWO minus the amount
determined in STEP THREE.
Add the amount determined in STEP FOUR to the amount determined
in subsection (e), STEP THREE, as provided in subsection (e), STEP
FOUR.
(e) For each civil taxing unit, the amount to be subtracted under
subsection (b), STEP EIGHT, is determined using the following
formula:
STEP ONE: Determine the lesser of the civil taxing unit's base
year certified share for the ensuing calendar year, as determined
under section 5 of this chapter, or the civil taxing unit's certified
share for the ensuing calendar year.
STEP TWO: Determine the greater of:
(A) zero (0); or
(B) the remainder of:
(i) the amount of federal revenue sharing money that was
received by the civil taxing unit in 1985; minus
(ii) the amount of federal revenue sharing money that will be
received by the civil taxing unit in the year preceding the
ensuing calendar year.
STEP THREE: Determine the lesser of:
(A) the amount determined in STEP TWO; or
(B) the amount determined in subsection (f) for the civil taxing
unit.
STEP FOUR: Add the amount determined in subsection (d),
STEP FOUR, to the amount determined in STEP THREE.
STEP FIVE: Subtract the amount determined in STEP FOUR
from the amount determined in STEP ONE.
(f) As used in this section, a taxing unit's "determination year"
means the latest of:
(1) calendar year 1987, if the taxing unit is treated as being
located in an adopting county for calendar year 1987 under
section 4 of this chapter;
(2) the taxing unit's base year, as defined in section 5 of this
chapter, if the taxing unit is treated as not being located in an
adopting county for calendar year 1987 under section 4 of this
chapter; or
(3) the ensuing calendar year following the first year that the
taxing unit is located in a county that has a county adjusted gross
income tax rate of more than one-half percent (0.5%) on July 1 of
that year.
The amount to be used in subsections (d) and (e) for a taxing unit
depends upon the taxing unit's certified share for the ensuing calendar
year, the taxing unit's determination year, and the county adjusted gross
income tax rate for resident county taxpayers (as defined in
IC 6-3.5-1.1-1) that is in effect in the taxing unit's county on July 1 of
the year preceding the ensuing calendar year. For the determination
year and the ensuing calendar years following the taxing unit's
determination year, the amount is the taxing unit's certified share for
the ensuing calendar year multiplied by the appropriate factor
prescribed in the following table:
COUNTIES WITH A TAX RATE OF 1/2%
Subsection (e)
Year
Factor
For the determination year and each ensuing
calendar year following the determination year 0
COUNTIES WITH A TAX RATE OF 3/4%
Subsection (e)
Year
Factor
For the determination year and each ensuing
calendar year following the determination year 1/2
COUNTIES WITH A TAX RATE OF 1.0%
Subsection (d)
Subsection (e)
Year Factor
Factor
For the determination year 1/6
1/3
For the ensuing calendar year
following the determination year 1/4
1/3
For the ensuing calendar year
following the determination year
by two (2) years 1/3
1/3
(g) This subsection applies only to property taxes first due and
payable after December 31, 2007. This subsection applies only to
a civil taxing unit that is located in a county for which a county
adjusted gross income tax rate is first imposed or is increased in a
particular year under IC 6-3.5-1.1-24 or a county option income
tax rate is first imposed or is increased in a particular year under
IC 6-3.5-6-30. Notwithstanding any provision in this section or any
other section of this chapter and except as provided in subsection
(h), the maximum permissible ad valorem property tax levy
calculated under this section for the ensuing calendar year for a
civil taxing unit subject to this section is equal to the civil taxing
unit's maximum permissible ad valorem property tax levy for the
current calendar year.
(h) This subsection applies only to property taxes first due and
payable after December 31, 2007. In the case of a civil taxing unit
that:
(1) is partially located in a county for which a county adjusted
gross income tax rate is first imposed or is increased in a
particular year under IC 6-3.5-1.1-24 or a county option
income tax rate is first imposed or is increased in a particular
year under IC 6-3.5-6-30; and
(2) is partially located in a county that is not described in
subdivision (1);
the department of local government finance shall, notwithstanding
subsection (g), adjust the portion of the civil taxing unit's
maximum permissible ad valorem property tax levy that is
attributable (as determined by the department of local government
finance) to the county or counties described in subdivision (2). The
department of local government finance shall adjust this portion
of the civil taxing unit's maximum permissible ad valorem
property tax levy so that, notwithstanding subsection (g), this
portion is allowed to increase as otherwise provided in this section.
If the department of local government finance increases the civil
taxing unit's maximum permissible ad valorem property tax levy
under this subsection, any additional property taxes imposed by
the civil taxing unit under the adjustment shall be paid only by the
taxpayers in the county or counties described in subdivision (2).
SOURCE: IC 6-1.1-18.5-7; (07)CC147804.21. -->
SECTION 21. IC 6-1.1-18.5-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 7. (a) A civil taxing
unit is not subject to the levy limits imposed by section 3 of this chapter
for an ensuing calendar year if the civil taxing unit did not adopt an ad
valorem property tax levy for the immediately preceding calendar year.
(b) If under subsection (a) a civil taxing unit is not subject to the
levy limits imposed under section 3 of this chapter for a calendar year,
the civil taxing unit shall refer its proposed budget, ad valorem
property tax levy, and property tax rate for that calendar year to the
local government tax control board established by section 11 of this
chapter
(before January 1, 2009) or the county board of tax and
capital projects review (after December 31, 2008) before the tax levy
is advertised. The local government tax control board
(before January
1, 2009) or the county board of tax and capital projects review
(after December 31, 2008) shall then review and make a
recommendation to the department of local government finance on the
civil taxing unit's budget, ad valorem property tax levy, and property
tax rate for that calendar year. The department of local government
finance shall make a final determination of the civil taxing unit's
budget, ad valorem property tax levy, and property tax rate for that
calendar year. However, a civil taxing unit may not impose a property
tax levy for a year if the unit did not exist as of March 1 of the
preceding year.
SOURCE: IC 6-1.1-18.5-8; (07)CC147804.22. -->
SECTION 22. IC 6-1.1-18.5-8 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 8. (a) The ad valorem
property tax levy limits imposed by section 3 of this chapter do not
apply to ad valorem property taxes imposed by a civil taxing unit if the
civil taxing unit is committed to levy the taxes to pay or fund either:
(1) bonded indebtedness; or
(2) lease rentals under a lease with an original term of at least five
(5) years.
(b)
This subsection does not apply to bonded indebtedness
incurred or leases executed for a capital project approved by a
county board of tax and capital projects review under IC 6-1.1-29.5
after December 31, 2008. A civil taxing unit must file a petition
requesting approval from the department of local government finance
to incur bonded indebtedness or execute a lease with an original term
of at least five (5) years not later than twenty-four (24) months after the
first date of publication of notice of a preliminary determination under
IC 6-1.1-20-3.1(2), unless the civil taxing unit demonstrates that a
longer period is reasonable in light of the civil taxing unit's facts and
circumstances. A civil taxing unit must obtain approval from the
department of local government finance before the civil taxing unit
may:
(1) incur the bonded indebtedness; or
(2) enter into the lease.
Before January 1, 2009, the department of local government finance
may seek recommendations from the local government tax control
board established by section 11 of this chapter when determining
whether to authorize incurring the bonded indebtedness or the
execution of the lease.
(c) The department of local government finance shall render a
decision within three (3) months after the date it receives a request for
approval under subsection (b). However, the department of local
government finance may extend this three (3) month period by an
additional three (3) months if, at least ten (10) days before the end of
the original three (3) month period, the department sends notice of the
extension to the executive officer of the civil taxing unit. A civil taxing
unit may petition for judicial review of the final determination of the
department of local government finance under this section. The petition
must be filed in the tax court not more than forty-five (45) days after
the department enters its order under this section.
(d) A civil taxing unit does not need approval under subsection (b)
to obtain temporary loans made in anticipation of and to be paid from
current revenues of the civil taxing unit actually levied and in the
course of collection for the fiscal year in which the loans are made.
(e) For purposes of computing the ad valorem property tax levy
limits imposed on a civil taxing unit by section 3 of this chapter, the
civil taxing unit's ad valorem property tax levy for a calendar year does
not include that part of its levy that is committed to fund or pay bond
indebtedness or lease rentals with an original term of five (5) years in
subsection (a).
(f) A taxpayer may petition for judicial review of the final
determination of the department of local government finance under this
section. The petition must be filed in the tax court not more than thirty
(30) days after the department enters its order under this section.
SOURCE: IC 6-1.1-18.5-11; (07)CC147804.23. -->
SECTION 23. IC 6-1.1-18.5-11 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 11. (a) A local
government tax control board is established. The board consists of nine
(9) members, seven (7) of whom are voting members and two (2) of
whom are nonvoting members.
(b) The seven (7) voting members shall be appointed as follows:
(1) One (1) member appointed by the state board of accounts.
(2) One (1) member appointed by the department of local
government finance.
(3) Five (5) members appointed by the governor. Three (3) of the
members appointed by the governor must be citizens of Indiana
who do not hold a political or elective office in state or local
government. The governor may seek the recommendation of
representatives of the cities, towns, and counties before
appointing the other two (2) members to the board.
(c) The two (2) 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.
(d) All members of the local government tax control board shall
serve at the will of the board or person that appointed them.
(e) The local government tax control board shall annually hold an
organizational meeting. At this organizational meeting the board shall
elect a chairman and a secretary from its membership. The board shall
meet after each organizational meeting as often as its business requires.
(f) The department of local government finance shall provide the
local government tax control board with rooms, staff, and secretarial
assistance for its meetings.
(g) Members of the local government tax control board shall serve
without compensation, except as provided in subsections (h) and (i).
(h) Each member of the local government tax control 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.
(i) Each member of the local government tax control 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.
(j) The local government tax control board is abolished
December 31, 2008.
SOURCE: IC 6-1.1-18.5-12; (07)CC147804.24. -->
SECTION 24. IC 6-1.1-18.5-12, AS AMENDED BY P.L.67-2006,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]: Sec. 12. (a) Any civil taxing unit that determines that
it cannot carry out its governmental functions for an ensuing calendar
year under the levy limitations imposed by section 3 of this chapter
may:
(1) before September 20 of the calendar year immediately
preceding the ensuing calendar year; or
(2) in the case of a request described in section 16 of this chapter,
before:
(A) December 31of the calendar year immediately preceding
the ensuing calendar year; or
(B) with the approval of the county fiscal body of the county
in which the civil taxing unit is located, March 1 of the
ensuing calendar year;
appeal to the department of local government finance for relief from
those levy limitations. In the appeal the civil taxing unit must state that
it will be unable to carry out the governmental functions committed to
it by law unless it is given the authority that it is petitioning for. The
civil taxing unit must support these allegations by reasonably detailed
statements of fact.
(b) The department of local government finance shall promptly
deliver to the local government tax control board
(before January 1,
2009) or the county board of tax and capital projects review (after
December 31, 2008) every appeal petition it receives under subsection
(a) and any materials it receives relevant to those appeals. Upon receipt
of an appeal petition, the local government tax control board
or the
county board of tax and capital projects review shall immediately
proceed to the examination and consideration of the merits of the civil
taxing unit's appeal.
(c) In considering an appeal, the local government tax control board
or the county board of tax and capital projects review has the power
to conduct hearings, require any officer or member of the appealing
civil taxing unit to appear before it, or require any officer or member
of the appealing civil taxing unit to provide the board with any relevant
records or books.
(d) If an officer or member:
(1) fails to appear at a hearing of the local government tax control
board
or the county board of tax and capital projects review
after having been given written notice from the local government
tax control board
or the county board of tax and capital
projects review requiring that person's attendance; or
(2) fails to produce for the local government tax control board's
or the county board of tax and capital projects review's use
the books and records that the local government tax control board
or the county board of tax and capital projects review by
written notice required the officer or member to produce;
then the local government tax control board or the county board of
tax and capital projects review 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.
(e) Upon the filing of an affidavit under subsection (d), 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 appear before the
local government tax control board or the county board of tax and
capital projects review, to provide information to the local
government tax control board or the county board of tax and capital
projects review, or to produce books and records for the local
government tax control board's or the county board of tax and
capital projects review's use, as the case may be. Disobedience of the
summons constitutes, and is punishable as, a contempt of the circuit
court that issued the summons.
(f) All expenses incident to the filing of an affidavit under
subsection (d) 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.
(g) The fiscal officer of a civil taxing unit that appeals under section
16 of this chapter for relief from levy limitations shall immediately file
a copy of the appeal petition with the county auditor and the county
treasurer of the county in which the unit is located.
SOURCE: IC 6-1.1-18.5-13; (07)CC147804.25. -->
SECTION 25. IC 6-1.1-18.5-13, AS AMENDED BY P.L.154-2006,
SECTION 47, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]: Sec. 13. With respect to an appeal filed under section
12 of this chapter, the local government tax control board
(before
January 1, 2009) or the county board of tax and capital projects
review (after December 31, 2008) may recommend that a civil taxing
unit receive any one (1) or more of the following types of relief:
(1)
A levy increase may not be granted under this subdivision
for property taxes first due and payable after December 31,
2009. Permission to the civil taxing unit to increase its levy in
excess of the limitations established under section 3 of this
chapter, if in the judgment of the local government tax control
board the increase is reasonably necessary due to increased costs
of the civil taxing unit resulting from annexation, consolidation,
or other extensions of governmental services by the civil taxing
unit to additional geographic areas or persons.
(2)
A levy increase may not be granted under this subdivision
for property taxes first due and payable after December 31,
2009. Permission to the civil taxing unit to increase its levy in
excess of the limitations established under section 3 of this
chapter, if the local government tax control board finds that the
civil taxing unit needs the increase to meet the civil taxing unit's
share of the costs of operating a court established by statute
enacted after December 31, 1973. Before recommending such an
increase, the local government tax control board shall consider all
other revenues available to the civil taxing unit that could be
applied for that purpose. The maximum aggregate levy increases
that the local government tax control board may recommend for
a particular court equals the civil taxing unit's estimate of the
unit's share of the costs of operating a court for the first full
calendar year in which it is in existence. For purposes of this
subdivision, costs of operating a court include:
(A) the cost of personal services (including fringe benefits);
(B) the cost of supplies; and
(C) any other cost directly related to the operation of the court.
(3) Permission to the civil taxing unit to increase its levy in excess
of the limitations established under section 3 of this chapter, if the
local government tax control board finds that the quotient
determined under STEP SIX of the following formula is equal to
or greater than one and two-hundredths (1.02):
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 (0.0001)) of the sum of the civil taxing
unit's total assessed value of all taxable property and the total
assessed value of property tax deductions in the unit under
IC 6-1.1-12-41 or IC 6-1.1-12-42 in the particular calendar
year, divided by the sum of the civil taxing unit's total assessed
value of all taxable property and the total assessed value of
property tax deductions in the unit under IC 6-1.1-12-41 or
IC 6-1.1-12-42 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).
STEP FOUR: Compute separately, for each of the calendar
years determined in STEP ONE, the quotient (rounded to the
nearest ten-thousandth (0.0001)) of the sum of the total
assessed value of all taxable property in all counties and the
total assessed value of property tax deductions in all counties
under IC 6-1.1-12-41 or IC 6-1.1-12-42 in the particular
calendar year, divided by the sum of the total assessed value
of all taxable property in all counties and the total assessed
value of property tax deductions in all counties under
IC 6-1.1-12-41 or IC 6-1.1-12-42 in the calendar year
immediately preceding the particular calendar year.
STEP FIVE: Divide the sum of the three (3) quotients
computed in STEP FOUR by three (3).
STEP SIX: Divide the STEP THREE amount by the STEP
FIVE amount.
The civil taxing unit may increase its levy by a percentage not
greater than the percentage by which the STEP THREE amount
exceeds the percentage by which the civil taxing unit may
increase its levy under section 3 of this chapter based on the
assessed value growth quotient determined under section 2 of this
chapter.
(4)
A levy increase may not be granted under this subdivision
for property taxes first due and payable after December 31,
2009. Permission to the civil taxing unit to increase its levy in
excess of the limitations established under section 3 of this
chapter, if the local government tax control board finds that the
civil taxing unit needs the increase to pay the costs of furnishing
fire protection for the civil taxing unit through a volunteer fire
department. For purposes of determining a township's need for an
increased levy, the local government tax control board shall not
consider the amount of money borrowed under IC 36-6-6-14
during the immediately preceding calendar year. However, any
increase in the amount of the civil taxing unit's levy recommended
by the local government tax control board under this subdivision
for the ensuing calendar year may not exceed the lesser of:
(A) ten thousand dollars ($10,000); or
(B) twenty percent (20%) of:
(i) the amount authorized for operating expenses of a
volunteer fire department in the budget of the civil taxing
unit for the immediately preceding calendar year; plus
(ii) the amount of any additional appropriations authorized
during that calendar year for the civil taxing unit's use in
paying operating expenses of a volunteer fire department
under this chapter; minus
(iii) the amount of money borrowed under IC 36-6-6-14
during that calendar year for the civil taxing unit's use in
paying operating expenses of a volunteer fire department.
(5)
A levy increase may not be granted under this subdivision
for property taxes first due and payable after December 31,
2009. Permission to a civil taxing unit to increase its levy in
excess of the limitations established under section 3 of this
chapter in order to raise revenues for pension payments and
contributions the civil taxing unit is required to make under
IC 36-8. The maximum increase in a civil taxing unit's levy that
may be recommended under this subdivision for an ensuing
calendar year equals the amount, if any, by which the pension
payments and contributions the civil taxing unit is required to
make under IC 36-8 during the ensuing calendar year exceeds the
product of one and one-tenth (1.1) multiplied by the pension
payments and contributions made by the civil taxing unit under
IC 36-8 during the calendar year that immediately precedes the
ensuing calendar year. For purposes of this subdivision, "pension
payments and contributions made by a civil taxing unit" does not
include that part of the payments or contributions that are funded
by distributions made to a civil taxing unit by the state.
(6) A levy increase may not be granted under this subdivision
for property taxes first due and payable after December 31,
2009. Permission to increase its levy in excess of the limitations
established under section 3 of this chapter if the local government
tax control board finds that:
(A) the township's township assistance ad valorem property
tax rate is less than one and sixty-seven hundredths cents
($0.0167) per one hundred dollars ($100) of assessed
valuation; and
(B) the township needs the increase to meet the costs of
providing township assistance under IC 12-20 and IC 12-30-4.
The maximum increase that the board may recommend for a
township is the levy that would result from an increase in the
township's township assistance ad valorem property tax rate of
one and sixty-seven hundredths cents ($0.0167) per one hundred
dollars ($100) of assessed valuation minus the township's ad
valorem property tax rate per one hundred dollars ($100) of
assessed valuation before the increase.
(7) A levy increase may not be granted under this subdivision
for property taxes first due and payable after December 31,
2009. Permission to a civil taxing unit to increase its levy in
excess of the limitations established under section 3 of this
chapter if:
(A) the increase has been approved by the legislative body of
the municipality with the largest population where the civil
taxing unit provides public transportation services; and
(B) the local government tax control board finds that the civil
taxing unit needs the increase to provide adequate public
transportation services.
The local government tax control board shall consider tax rates
and levies in civil taxing units of comparable population, and the
effect (if any) of a loss of federal or other funds to the civil taxing
unit that might have been used for public transportation purposes.
However, the increase that the board may recommend under this
subdivision for a civil taxing unit may not exceed the revenue that
would be raised by the civil taxing unit based on a property tax
rate of one cent ($0.01) per one hundred dollars ($100) of
assessed valuation.
(8) A levy increase may not be granted under this subdivision
for property taxes first due and payable after December 31,
2009. Permission to a civil taxing unit to increase the unit's levy
in excess of the limitations established under section 3 of this
chapter if the local government tax control board finds that:
(A) the civil taxing unit is:
(i) a county having a population of more than one hundred
forty-eight thousand (148,000) but less than one hundred
seventy thousand (170,000);
(ii) a city having a population of more than fifty-five
thousand (55,000) but less than fifty-nine thousand (59,000);
(iii) a city having a population of more than twenty-eight
thousand seven hundred (28,700) but less than twenty-nine
thousand (29,000);
(iv) a city having a population of more than fifteen thousand
four hundred (15,400) but less than sixteen thousand six
hundred (16,600); or
(v) a city having a population of more than seven thousand
(7,000) but less than seven thousand three hundred (7,300);
and
(B) the increase is necessary to provide funding to undertake
removal (as defined in IC 13-11-2-187) and remedial action
(as defined in IC 13-11-2-185) relating to hazardous
substances (as defined in IC 13-11-2-98) in solid waste
disposal facilities or industrial sites in the civil taxing unit that
have become a menace to the public health and welfare.
The maximum increase that the local government tax control
board may recommend for such a civil taxing unit is the levy that
would result from a property tax rate of six and sixty-seven
hundredths cents ($0.0667) for each one hundred dollars ($100)
of assessed valuation. For purposes of computing the ad valorem
property tax levy limit imposed on a civil taxing unit under
section 3 of this chapter, the civil taxing unit's ad valorem
property tax levy for a particular year does not include that part of
the levy imposed under this subdivision. In addition, a property
tax increase permitted under this subdivision may be imposed for
only two (2) calendar years.
(9) A levy increase may not be granted under this subdivision
for property taxes first due and payable after December 31,
2009. Permission for a county:
(A) having a population of more than eighty thousand (80,000)
but less than ninety thousand (90,000) to increase the county's
levy in excess of the limitations established under section 3 of
this chapter, if the local government tax control board finds
that the county needs the increase to meet the county's share of
the costs of operating a jail or juvenile detention center,
including expansion of the facility, if the jail or juvenile
detention center is opened after December 31, 1991;
(B) that operates a county jail or juvenile detention center that
is subject to an order that:
(i) was issued by a federal district court; and
(ii) has not been terminated;
(C) that operates a county jail that fails to meet:
(i) American Correctional Association Jail Construction
Standards; and
(ii) Indiana jail operation standards adopted by the
department of correction; or
(D) that operates a juvenile detention center that fails to meet
standards equivalent to the standards described in clause (C)
for the operation of juvenile detention centers.
Before recommending an increase, the local government tax
control board shall consider all other revenues available to the
county that could be applied for that purpose. An appeal for
operating funds for a jail or a juvenile detention center shall be
considered individually, if a jail and juvenile detention center are
both opened in one (1) county. The maximum aggregate levy
increases that the local government tax control board may
recommend for a county equals the county's share of the costs of
operating the jail or a juvenile detention center for the first full
calendar year in which the jail or juvenile detention center is in
operation.
(10) A levy increase may not be granted under this subdivision
for property taxes first due and payable after December 31,
2009. Permission for a township to increase its levy in excess of
the limitations established under section 3 of this chapter, if the
local government tax control board finds that the township needs
the increase so that the property tax rate to pay the costs of
furnishing fire protection for a township, or a portion of a
township, enables the township to pay a fair and reasonable
amount under a contract with the municipality that is furnishing
the fire protection. However, for the first time an appeal is granted
the resulting rate increase may not exceed fifty percent (50%) of
the difference between the rate imposed for fire protection within
the municipality that is providing the fire protection to the
township and the township's rate. A township is required to appeal
a second time for an increase under this subdivision if the
township wants to further increase its rate. However, a township's
rate may be increased to equal but may not exceed the rate that is
used by the municipality. More than one (1) township served by
the same municipality may use this appeal.
(11) A levy increase may not be granted under this subdivision
for property taxes first due and payable after December 31,
2009. Permission for a township to increase its levy in excess of
the limitations established under section 3 of this chapter, if the
local government tax control board finds that the township has
been required, for the three (3) consecutive years preceding the
year for which the appeal under this subdivision is to become
effective, to borrow funds under IC 36-6-6-14 to furnish fire
protection for the township or a part of the township. However,
the maximum increase in a township's levy that may be allowed
under this subdivision is the least of the amounts borrowed under
IC 36-6-6-14 during the preceding three (3) calendar years. A
township may elect to phase in an approved increase in its levy
under this subdivision over a period not to exceed three (3) years.
A particular township may appeal to increase its levy under this
section not more frequently than every fourth calendar year.
(12) A levy increase may not be granted under this subdivision
for property taxes first due and payable after December 31,
2009. Permission to a city having a population of more than
twenty-nine thousand (29,000) but less than thirty-one thousand
(31,000) to increase its levy in excess of the limitations
established under section 3 of this chapter if:
(A) an appeal was granted to the city under this section to
reallocate property tax replacement credits under IC 6-3.5-1.1
in 1998, 1999, and 2000; and
(B) the increase has been approved by the legislative body of
the city, and the legislative body of the city has by resolution
determined that the increase is necessary to pay normal
operating expenses.
The maximum amount of the increase is equal to the amount of
property tax replacement credits under IC 6-3.5-1.1 that the city
petitioned under this section to have reallocated in 2001 for a
purpose other than property tax relief.
(13) A levy increase may be granted under this subdivision
only for property taxes first due and payable after December
31, 2009. Permission to a civil taxing unit to increase its levy
in excess of the limitations established under section 3 of this
chapter if the civil taxing unit cannot carry out its
governmental functions for an ensuing calendar year under
the levy limitations imposed by section 3 of this chapter.
SOURCE: IC 6-1.1-18.5-13.5; (07)CC147804.26. -->
SECTION 26. IC 6-1.1-18.5-13.5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 13.5. A levy increase
may not be granted under this section for property taxes first due
and payable after December 31, 2009. With respect to an appeal filed
under section 12 of this chapter, the local government tax control board
may recommend that the department of local government finance give
permission to a town having a population of more than three hundred
seventy-five (375) but less than five hundred (500) located in a county
having a population of more than seventy-one thousand (71,000) but
less than seventy-one thousand four hundred (71,400) to increase its
levy in excess of the limitations established under section 3 of this
chapter, if the local government tax control board finds that the town
needs the increase to pay the costs of furnishing fire protection for the
town. However, any increase in the amount of the town's levy
recommended by the local government tax control board under this
section for the ensuing calendar year may not exceed the greater of:
(1) twenty-five thousand dollars ($25,000); or
(2) twenty percent (20%) of the sum of:
(A) the amount authorized for the cost of furnishing fire
protection in the town's budget for the immediately preceding
calendar year; plus
(B) the amount of any additional appropriations authorized
under IC 6-1.1-18-5 during that calendar year for the town's
use in paying the costs of furnishing fire protection.
SOURCE: IC 6-1.1-18.5-13.6; (07)CC147804.27. -->
SECTION 27. IC 6-1.1-18.5-13.6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 13.6. A levy increase
may not be granted under this section for property taxes first due
and payable after December 31, 2009. For an appeal filed under
section 12 of this chapter, the local government tax control board may
recommend that the department of local government finance give
permission to a county to increase its levy in excess of the limitations
established under section 3 of this chapter if the local government tax
control board finds that the county needs the increase to pay for:
(1) a new voting system; or
(2) the expansion or upgrade of an existing voting system;
under IC 3-11-6.
SOURCE: IC 6-1.1-18.5-14; (07)CC147804.28. -->
SECTION 28. IC 6-1.1-18.5-14 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 14. (a) The local
government tax control board (before January 1, 2009) or the county
board of tax and capital projects review (after December 31, 2008)
may recommend to the department of local government finance a
correction of any advertising error, mathematical error, or error in data
made at the local level for any calendar year that affects the
determination of the limitations established by section 3 of this chapter
or the tax rate or levy of a civil taxing unit. The department of local
government finance may on its own initiative correct such an
advertising error, mathematical error, or error in data for any civil
taxing unit.
(b) A correction made under subsection (a) for a prior calendar year
shall be applied to the civil taxing unit's levy limitations, rate, and levy
for the ensuing calendar year to offset any cumulative effect that the
error caused in the determination of the civil taxing unit's levy
limitations, rate, or levy for the ensuing calendar year.
SOURCE: IC 6-1.1-18.5-15; (07)CC147804.29. -->
SECTION 29. IC 6-1.1-18.5-15 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 15. (a) The department
of local government finance, upon receiving a recommendation made
under section 13 or 14 of this chapter, shall enter an order adopting,
rejecting, or adopting in part and rejecting in part the recommendation
of the local government tax control board (before January 1, 2009) or
the county board of tax and capital projects review (after
December 31, 2008).
(b) A civil taxing unit may petition for judicial review of the final
determination of the department of local government finance under
subsection (a). 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
order under subsection (a).
SOURCE: IC 6-1.1-18.5-16; (07)CC147804.30. -->
SECTION 30. IC 6-1.1-18.5-16 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 16. (a) A civil taxing
unit may request permission from the local government tax control
board
(before January 1, 2009) or the county board of tax and
capital projects review (after December 31, 2008) to impose an ad
valorem property tax levy that exceeds the limits imposed by section 3
of this chapter if:
(1) the civil taxing unit experienced a property tax revenue
shortfall that resulted from erroneous assessed valuation figures
being provided to the civil taxing unit;
(2) the erroneous assessed valuation figures were used by the civil
taxing unit in determining its total property tax rate; and
(3) the error in the assessed valuation figures was found after the
civil taxing unit's property tax levy resulting from that total rate
was finally approved by the department of local government
finance.
(b) A civil taxing unit may request permission from the local
government tax control board
(before January 1, 2009) or the county
board of tax and capital projects review (after December 31, 2008)
to impose an ad valorem property tax levy that exceeds the limits
imposed by section 3 of this chapter if the civil taxing unit experienced
a property tax revenue shortfall because of the payment of refunds that
resulted from appeals under this article and IC 6-1.5.
(c) If the local government tax control board (before January 1,
2009) or the county board of tax and capital projects review (after
December 31, 2008) determines that a shortfall described in subsection
(a) or (b) has occurred, it shall recommend to the department of local
government finance that the civil taxing unit be allowed to impose a
property tax levy exceeding the limit imposed by section 3 of this
chapter, and the department may adopt such recommendation.
However, the maximum amount by which the civil taxing unit's levy
may be increased over the limits imposed by section 3 of this chapter
equals the remainder of the civil taxing unit's property tax levy for the
particular calendar year as finally approved by the department of local
government finance minus the actual property tax levy collected by the
civil taxing unit for that particular calendar year.
(d) Any property taxes collected by a civil taxing unit over the limits
imposed by section 3 of this chapter under the authority of this section
may not be treated as a part of the civil taxing unit's maximum
permissible ad valorem property tax levy for purposes of determining
its maximum permissible ad valorem property tax levy for future years.
(e) If the department of local government finance authorizes an
excess tax levy under this section, it shall take appropriate steps to
insure that the proceeds are first used to repay any loan made to the
civil taxing unit for the purpose of meeting its current expenses.
SOURCE: IC 6-1.1-20-3.2; (07)CC147804.31. -->
SECTION 31. IC 6-1.1-20-3.2, AS AMENDED BY P.L.2-2006,
SECTION 55, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]: Sec. 3.2. If a sufficient petition requesting the
application of a petition and remonstrance process has been filed as set
forth in section 3.1 of this chapter, a political subdivision may not
impose property taxes to pay debt service or lease rentals without
completing the following procedures:
(1) The proper officers of the political subdivision shall give
notice of the applicability of the petition and remonstrance
process by:
(A) publication in accordance with IC 5-3-1; and
(B) first class mail to the organizations described in section
3.1(1)(B) of this chapter.
A notice under this subdivision must include a statement that any
owners of real property within the political subdivision who want
to petition in favor of or remonstrate against the proposed debt
service or lease payments must file petitions and remonstrances
in compliance with subdivisions (2) through (4) not earlier than
thirty (30) days or later than sixty (60) days after publication in
accordance with IC 5-3-1.
(2) Not earlier than thirty (30) days or later than sixty (60) days
after the notice under subdivision (1) is given:
(A) petitions (described in subdivision (3)) in favor of the
bonds or lease; and
(B) remonstrances (described in subdivision (3)) against the
bonds or lease;
may be filed by an owner or owners of real property within the
political subdivision. 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 and remonstrance 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 within the political subdivision
the number of petition or remonstrance forms requested by the
owner or owners. Each form must be accompanied by instructions
detailing the requirements that:
(A) the carrier and signers must be owners of real 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 10 of this chapter.
Persons requesting forms may not be required to identify
themselves and may be allowed to pick up additional copies to
distribute to other property owners. The county auditor may not
issue a petition or remonstrance 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
or remonstrance form that is distributed under this subdivision.
(4) The petitions and remonstrances must be verified in the
manner prescribed by the state board of accounts and filed with
the county auditor within the sixty (60) day period described in
subdivision (2) in the manner set forth in section 3.1 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 within fifteen (15)
business days of the filing of a petition or remonstrance under
subdivision (4), whichever applies, containing ten thousand
(10,000) signatures or less. The county auditor may take an
additional five (5) days to review and certify the petition or
remonstrance for each additional five thousand (5,000) signatures
up to a maximum of sixty (60) days. The certificate must state the
number of petitioners and remonstrators that are owners of real
property within the political subdivision.
(6) If a greater number of owners of real 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 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 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 of local government finance if required by:
(A) IC 6-1.1-18.5-8; or
(B) IC 20-46-7-8, IC 20-46-7-9, and IC 20-46-7-10.
SOURCE: IC 6-1.1-20-3.4; (07)CC147804.32. -->
SECTION 32. IC 6-1.1-20-3.4 IS ADDED TO THE INDIANA
CODE AS A
NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2007]:
Sec. 3.4. (a) Notwithstanding any
other provision of this chapter, the executive of a political
subdivision may initiate the petition and remonstrance process
under this chapter for the approval or disapproval of a proposed
controlled project of the political subdivision that has been
disapproved under IC 6-1.1-29.5 by the county board of tax and
capital projects review.
(b) The executive of a political subdivision may initiate the
petition and remonstrance process under this chapter for a
proposed controlled project that has been disapproved by the
county board of tax and capital projects review by giving notice of
the applicability of the petition and remonstrance process as
provided in section 3.2(1) of this chapter not more than sixty (60)
days after the county board of tax and capital projects review
disapproves the proposed controlled project.
(c) Section 3.2 of this chapter applies to a petition and
remonstrance process initiated under this section. However, a
sufficient petition requesting the application of a petition and
remonstrance process is not required to be filed as set forth in
section 3.1 of this chapter before the executive of a political
subdivision may initiate the petition and remonstrance process as
provided in this section.
(d) If the number of owners of real property within the political
subdivision and registered voters residing within the political
subdivision that sign a petition in favor of the proposed controlled
project is greater than the number of owners of real property
within the political subdivision and registered voters residing
within the political subdivision that sign a remonstrance against
the proposed controlled project, the political subdivision may
undertake the proposed controlled project, notwithstanding the
disapproval of the proposed controlled project by the county board
of tax and capital projects review under IC 6-1.1-29.5.
SOURCE: IC 6-1.1-20-5; (07)CC147804.33. -->
SECTION 33. IC 6-1.1-20-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 5. (a) When the proper
officers of a political subdivision decide to issue bonds in a total
amount which exceeds five thousand dollars ($5,000), they shall give
notice of the decision by:
(1) posting; and
(2) publication once each week for two (2) weeks.
The notice required by this section shall be posted in three (3) public
places in the political subdivision and published in accordance with
IC 5-3-1-4. The decision to issue bonds may be a preliminary decision.
(b) This subsection does not apply to bonds issued for a
controlled project approved after December 31, 2008, by a county
board of tax and capital projects review under IC 6-1.1-29.5. Ten
(10) or more taxpayers who will be affected by the proposed issuance
of the bonds and who wish to object to the issuance on the grounds that
it is unnecessary or excessive may file a petition in the office of the
auditor of the county in which the political subdivision is located. The
petition must be filed within fifteen (15) days after the notice required
by subsection (a) is given, and it must contain the objections of the
taxpayers and facts which show that the proposed issue is unnecessary
or excessive. When taxpayers file a petition in the manner prescribed
in this subsection, the county auditor shall immediately forward a
certified copy of the petition and any other relevant information to the
department of local government finance.
SOURCE: IC 6-1.1-20-7; (07)CC147804.34. -->
SECTION 34. IC 6-1.1-20-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 7. (a) This section
does not apply to bonds, notes, or warrants issued for a controlled
project approved after December 31, 2008, by a county board of
tax and capital projects review under IC 6-1.1-29.5.
(b) When the proper officers of a political subdivision decide to
issue any bonds, notes, or warrants which will be payable from
property taxes and which will bear interest in excess of eight percent
(8%) per annum, the political subdivision shall submit the matter to the
department of local government finance for review. The department of
local government finance may either approve or disapprove the rate of
interest.
SOURCE: IC 6-1.1-20-9; (07)CC147804.35. -->
SECTION 35. IC 6-1.1-20-9 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 9. (a) When the proper
officers of a political subdivision decide to issue bonds payable from
property taxes to finance a public improvement, they shall adopt an
ordinance or resolution which sets forth their determination to issue the
bonds. Except as provided in subsection (b), the political subdivision
may not advertise for or receive bids for the construction of the
improvement until the expiration of the latter of:
(1) the time period within which taxpayers may file a petition for
review of or a remonstrance against the proposed issue; or
(2) the time period during which a petition for review of the
proposed issue is pending before the department of local
government finance (before January 1, 2009) or the county
board of tax and capital projects review (after December 31,
2008).
(b) This subsection applies before January 1, 2009. When a
petition for review of a proposed issue is pending before the
department of local government finance, the department may order the
political subdivision to advertise for and receive bids for the
construction of the public improvement. When the department of local
government finance issues such an order, the political subdivision shall
file a bid report with the department within five (5) days after the bids
are received, and the department shall render a final decision on the
proposed issue within fifteen (15) days after it receives the bid report.
Notwithstanding the provisions of this subsection, a political
subdivision may not enter into a contract for the construction of a
public improvement while a petition for review of the bond issue which
is to finance the improvement is pending before the department of local
government finance.
(c) This subsection applies after December 31, 2008. When a
petition for review of a proposed issue is pending before the county
board of tax and capital projects review, the board may order the
political subdivision to advertise for and receive bids for the
construction of the public improvement. When the county board of
tax and capital projects review issues such an order, the political
subdivision shall file a bid report with the board within five (5)
days after the bids are received, and the board shall render a final
decision on the proposed issue within fifteen (15) days after it
receives the bid report. Notwithstanding the provisions of this
subsection, a political subdivision may not enter into a contract for
the construction of a public improvement while a petition for
review of the bond issue that is to finance the improvement is
pending before the county board of tax and capital projects review.
SOURCE: IC 6-1.1-20.3; (07)CC147804.36. -->
SECTION 36. IC 6-1.1-20.3 IS ADDED TO THE INDIANA CODE
AS A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]:
Chapter 20.3. Distressed Political Subdivisions
Sec. 1. As used in this chapter, "circuit breaker board" refers
to the circuit breaker relief appeal board established by section 4
of this chapter.
Sec. 2. As used in this chapter, "distressed political subdivision"
means a political subdivision that will have the political
subdivision's property tax collections reduced by at least two
percent (2%) in a calendar year as a result of the application of the
credit under IC 6-1.1-20.6 for that calendar year.
Sec. 3. As used in this chapter, "political subdivision" has the
meaning set forth in IC 36-1-2-13.
Sec. 4. (a) The circuit breaker relief appeal board is established.
(b) The circuit breaker relief appeal board consists of the
following members:
(1) The director of the office of management and budget or
the director's designee. The director or the director's designee
shall serve as chairperson of the circuit breaker relief appeal
board.
(2) The commissioner of the department of local government
finance or the commissioner's designee.
(3) The commissioner of the department of state revenue or
the commissioner's designee.
(4) The state examiner of the state board of accounts or the
state examiner's designee.
(5) The following members appointed by the governor:
(A) One (1) member appointed from nominees submitted
by the Indiana Association of Cities and Towns.
(B) One (1) member appointed from nominees submitted
by the Association of Indiana Counties.
(C) One (1) member appointed from nominees submitted
by the Indiana Association of School Superintendents.
A member nominated and appointed under this subdivision
must be an elected official of a political subdivision.
(c) The members appointed under subsection (b)(5) serve at the
pleasure of the governor.
(d) Each member of the commission is entitled to
reimbursement for:
(1) traveling expenses as provided under IC 4-13-1-4; and
(2) other expenses actually incurred in connection with the
member's duties as provided in the state policies and
procedures established by the Indiana department of
administration and approved by the budget agency.
Sec. 5. (a) The department of local government finance shall
provide the circuit breaker board with the staff and assistance that
the circuit breaker board reasonably requires.
(b) The department of local government finance shall provide
from the department's budget funding to support the circuit
breaker board's duties under this chapter.
(c) The circuit breaker board may contract with accountants,
financial experts, and other advisors and consultants as necessary
to carry out the circuit breaker board's duties under this chapter.
Sec. 6. (a) For property taxes first due and payable in 2008 and
thereafter, the fiscal body of a county containing a distressed
political subdivision (or the fiscal bodies of two (2) or more
distressed political subdivisions acting jointly) may petition the
circuit breaker board for relief as authorized under this chapter
from the application of the credit under IC 6-1.1-20.6 for a
calendar year.
(b) A petition under subsection (a) must include a proposed
financial plan for political subdivisions in the county. The proposed
financial plan must include the following:
(1) Proposed budgets that would enable the distressed
political subdivisions in the county to cease being distressed
political subdivisions.
(2) Proposed efficiencies, consolidations, cost reductions, uses
of alternative or additional revenues, or other actions that
would enable the distressed political subdivisions in the
county to cease being distressed political subdivisions.
(c) The circuit breaker board may adopt procedures governing
the timing and required content of a petition under subsection (a).
Sec. 7. (a) If the fiscal body of a county (or the fiscal bodies of
two (2) or more distressed political subdivisions acting jointly)
submits a petition under section 6 of this chapter, the circuit
breaker board shall review the petition and assist in establishing a
financial plan for political subdivisions in the county.
(b) In reviewing a petition submitted under section 6 of this
chapter, the circuit breaker board:
(1) shall consider:
(A) the proposed financial plan;
(B) comparisons to similarly situated political subdivisions;
(C) the existing revenue and expenditures of political
subdivisions in the county; and
(D) any other factor considered relevant by the circuit
breaker board; and
(2) may establish subcommittees or temporarily appoint
nonvoting members to the circuit breaker board to assist in
the review.
Sec. 8. (a) The circuit breaker board may authorize relief as
provided in subsection (b) from the application of the credit under
IC 6-1.1-20.6 for a calendar year if the governing body of each
political subdivision in the county has adopted a resolution
agreeing to the terms of the financial plan.
(b) If the conditions of subsection (a) are satisfied, the circuit
breaker board may, notwithstanding IC 6-1.1-20.6, do either of the
following:
(1) Increase uniformly in the county the percentage threshold
(specified as a percentage of gross assessed value) at which the
credit under IC 6-1.1-20.6 applies to a person's property tax
liability.
(2) Provide for a uniform percentage reduction to credits
otherwise provided under IC 6-1.1-20.6 in the county.
(c) If the circuit breaker board provides relief described in
subsection (b) in a county, the circuit breaker board shall conduct
audits and reviews as necessary to determine whether the political
subdivisions in the county are abiding by the terms of the financial
plan agreed to under subsection (a).
SOURCE: IC 6-1.1-20.6-6.5; (07)CC147804.37. -->
SECTION 37. IC 6-1.1-20.6-6.5, AS ADDED BY P.L.162-2006,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]: Sec. 6.5. (a) This subsection applies only to property
taxes first due and payable after December 31, 2006, and before
January 1,
2007, 2008, attributable to qualified residential property
located in Lake County. A person is entitled to a credit each calendar
year under section 7(a) of this chapter against the person's property tax
liability for property taxes first due and payable in that calendar year
attributable to the person's qualified residential property. However, the
county fiscal body may, by ordinance adopted before January 1, 2007,
limit the application of the credit granted by this subsection to
homesteads.
(b) This subsection applies only to property taxes first due and
payable after December 31, 2007, and before January 1, 2010. A
person is entitled to a credit each calendar year under section 7(a) of
this chapter against the person's property tax liability for property taxes
first due and payable in that calendar year attributable to:
(1) the person's qualified residential property, in the case of a
calendar year before 2008; or
(2) the person's homestead (as defined in IC 6-1.1-20.9-1)
property, in the case of a calendar year after 2007 and before
2010.
(c) This subsection applies only to property taxes first due and
payable after December 31, 2009. A person is entitled to a credit each
calendar year under section 7(b) of this chapter against the person's
property tax liability for property taxes first due and payable in that
calendar year attributable to the person's real property and personal
property.
SOURCE: IC 6-1.1-20.6-7; (07)CC147804.38. -->
SECTION 38. IC 6-1.1-20.6-7, AS AMENDED BY P.L.162-2006,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]: Sec. 7. (a) In the case of a credit authorized under
section 6 of this chapter or provided by section 6.5(a) or 6.5(b) of this
chapter for property taxes first due and payable in a calendar year:
(1) a person is entitled to a credit against the person's property tax
liability for property taxes first due and payable in that calendar
year attributable to:
(A) the person's qualified residential property located in the
county,
in the case of a calendar year before 2008; or
(B) the person's homestead (as defined in IC 6-1.1-20.9-1)
property located in the county, in the case of a calendar
year after 2007 and before 2010; and
(2) the amount of the credit is the amount by which the person's
property tax liability attributable to:
(A) the person's qualified residential property,
in the case of
a calendar year before 2008; or
(B) the person's homestead property, in the case of a
calendar year after 2007 and before 2010;
for property taxes first due and payable in that calendar year exceeds
two percent (2%) of the gross assessed value that is the basis for
determination of property taxes on the qualified residential property
(in
the case of a calendar year before 2008) or the person's homestead
property (in the case of a calendar year after 2007 and before
2010) for property taxes first due and payable in that calendar year,
as
adjusted under subsection (c).
(b) In the case of a credit provided by section 6.5(c) of this chapter
for property taxes first due and payable in a calendar year:
(1) a person is entitled to a credit against the person's property tax
liability for property taxes first due and payable in that calendar
year attributable to the person's real property and personal
property located in the county; and
(2) the amount of the credit is
the amount by which the person's
property tax liability attributable to the person's real property and
personal property for property taxes first due and payable in that
calendar year exceeds two percent (2%) of the gross assessed
value that is the basis for determination of property taxes on the
real property and personal property for property taxes first due
and payable in that calendar year. equal to the following:
(A) In the case of property tax liability attributable to the
person's homestead property, the amount of the credit is
the amount by which the person's property tax liability
attributable to the person's homestead property for
property taxes first due and payable in that calendar year
exceeds two percent (2%) of the gross assessed value that
is the basis for determination of property taxes on the
homestead property for property taxes first due and
payable in that calendar year, as adjusted under subsection
(c).
(B) In the case of property tax liability attributable to
property other than homestead property, the amount of
the credit is the amount by which the person's property tax
liability attributable to the person's real property (other
than homestead property) and personal property for
property taxes first due and payable in that calendar year
exceeds three percent (3%) of the gross assessed value that
is the basis for determination of property taxes on the real
property (other than homestead property) and personal
property for property taxes first due and payable in that
calendar year, as adjusted under subsection (c).
(c) This subsection applies to property taxes first due and
payable after December 31, 2007. The amount of a credit to which
a person is entitled under subsection (a) or (b) in a county shall be
adjusted as determined in STEP FIVE of the following STEPS:
STEP ONE: Determine the total amount of the person's
property tax liability described in subsection (a)(1) or (b)(1)
(as applicable) that is for tuition support levy property taxes.
STEP TWO: Determine the total amount of the person's
property tax liability described in subsection (a)(1) or (b)(1)
(as applicable).
STEP THREE: Determine the result of:
(A) the STEP TWO amount; minus
(B) the STEP ONE amount.
STEP FOUR: Determine the result of:
(A) the STEP THREE amount; divided by
(B) the STEP TWO amount.
STEP FIVE: Multiply the credit to which the person is
entitled under subsection (a) or (b) by the STEP FOUR
amount.
Notwithstanding any other provision of this chapter, a school
corporation's tuition support property tax levy collections may not
be reduced because of a credit under this chapter.
SOURCE: IC 6-1.1-20.9-2; (07)CC147804.39. -->
SECTION 39. IC 6-1.1-20.9-2, AS AMENDED BY P.L.162-2006,
SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2008]: Sec. 2. (a) Except as otherwise provided in
section 5 of this chapter, an individual who on March 1 of a particular
year either owns or is buying a homestead under a contract that
provides the individual is to pay the property taxes on the homestead
is entitled each calendar year to a credit against the property taxes
which the individual pays on the individual's homestead. However,
only one (1) individual may receive a credit under this chapter for a
particular homestead in a particular year.
(b) The amount of the credit to which the individual is entitled
equals the product of:
(1) the percentage prescribed in subsection (d); multiplied by
(2) the amount of the individual's property tax liability, as that
term is defined in IC 6-1.1-21-5, which is:
(A) attributable to the homestead during the particular
calendar year; and
(B) determined after the application of the property tax
replacement credit under IC 6-1.1-21.
(c) For purposes of determining that part of an individual's property
tax liability that is attributable to the individual's homestead, all
deductions from assessed valuation which the individual claims under
IC 6-1.1-12 or IC 6-1.1-12.1 for property on which the individual's
homestead is located must be applied first against the assessed value
of the individual's homestead before those deductions are applied
against any other property.
(d) The percentage of the credit referred to in subsection (b)(1) is as
follows:
YEAR PERCENTAGE
OF THE CREDIT
1996 8%
1997 6%
1998 through 2002 10%
2003 through 2005 20%
2006 28%
2007 and thereafter 20%
However, the property tax replacement fund board established under
IC 6-1.1-21-10 shall increase the percentage of the credit provided in
the schedule for any year if the budget agency determines that an
increase is necessary to provide the minimum tax relief authorized
under IC 6-1.1-21-2.5. If the board increases the percentage of the
credit provided in the schedule for any year, the percentage of the
credit for the immediately following year is the percentage provided in
the schedule for that particular year, unless as provided in this
subsection the board must increase the percentage of the credit
provided in the schedule for that particular year. However, the
percentage credit allowed in a particular county for a particular year
shall be increased if on January 1 of a year an ordinance adopted by a
county income tax council was in effect in the county which increased
the homestead credit. The amount of the increase equals the amount
designated in the ordinance.
(e) Before October 1 of each year, the assessor shall furnish to the
county auditor the amount of the assessed valuation of each homestead
for which a homestead credit has been properly filed under this chapter.
(f) The county auditor shall apply the credit equally to each
installment of taxes that the individual pays for the property.
(g) Notwithstanding the provisions of this chapter, a taxpayer other
than an individual is entitled to the credit provided by this chapter if:
(1) an individual uses the residence as the individual's principal
place of residence;
(2) the residence is located in Indiana;
(3) the individual has a beneficial interest in the taxpayer;
(4) the taxpayer either owns the residence or is buying it under a
contract, recorded in the county recorder's office, that provides
that the individual is to pay the property taxes on the residence;
and
(5) the residence consists of a single-family dwelling and the real
estate, not exceeding one (1) acre, that immediately surrounds
that dwelling.
SOURCE: IC 6-1.1-21.2-15; (07)CC147804.40. -->
SECTION 40. IC 6-1.1-21.2-15 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 15. (a) A tax levied
under this chapter shall be certified by the department of local
government finance to the auditor of the county in which the district is
located and shall be:
(1) estimated and entered upon the tax duplicates by the county
auditor; and
(2) collected and enforced by the county treasurer;
in the same manner as state and county taxes are estimated, entered,
collected, and enforced.
(b) As the tax is collected by the county treasurer, it shall be
transferred to the governing body and accumulated and kept in the
special fund for the allocation area.
(c) A tax levied under this chapter:
(1) is exempt from the levy limitations imposed under
IC 6-1.1-18.5; and
(2) is not subject to IC 6-1.1-20.
(d) Notwithstanding any other provision of this chapter or
IC 6-1.1-20.6, a governing body may file with the county auditor a
certified statement providing that for purposes of computing and
applying a credit under IC 6-1.1-20.6 for a particular calendar
year, a taxpayer's property tax liability does not include the
liability for a tax levied under this chapter. The department of
local government finance shall adopt the form of the certified
statement that a governing body may file under this subsection.
The department of local government finance shall establish
procedures governing the filing of a certified statement under this
subsection. If a governing body files a certified statement under
this subsection, then for purposes of computing and applying a
credit under IC 6-1.1-20.6 for the specified calendar year, a
taxpayer's property tax liability does not include the liability for a
tax levied under this chapter.
(d) (e) A tax levied under this chapter and the use of revenues from
a tax levied under this chapter by a governing body do not create a
constitutional or statutory debt, pledge, or obligation of the governing
body, the district, or any unit.
SOURCE: IC 6-1.1-29-1; (07)CC147804.41. -->
SECTION 41. IC 6-1.1-29-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 1. (a) Except as
provided in section 9 of this chapter, each county shall have a county
board of tax adjustment composed of seven (7) members. The members
of the county board of tax adjustment shall be selected as follows:
(1) The county fiscal body shall appoint a member of the body to
serve as a member of the county board of tax adjustment.
(2) Either the executive of the largest city in the county or a
public official of any city in the county appointed by that
executive shall serve as a member of the board. However, if there
is no incorporated city in the county, the fiscal body of the largest
incorporated town of the county shall appoint a member of the
body to serve as a member of the county board of tax adjustment.
(3) The governing body of the school corporation, located entirely
or partially within the county, which has the greatest taxable
valuation of any school corporation of the county shall appoint a
member of the governing body to serve as a member of the county
board of tax adjustment.
(4) The remaining four (4) members of the county board of tax
adjustment must be residents of the county and freeholders and
shall be appointed by the board of commissioners of the county.
(b) This section expires December 31, 2008.
SOURCE: IC 6-1.1-29-1.5; (07)CC147804.42. -->
SECTION 42. IC 6-1.1-29-1.5 IS ADDED TO THE INDIANA
CODE AS A
NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2007]:
Sec. 1.5. (a) On January 1, 2009, there
is established in each county a county board of tax and capital
projects review. Except as provided by subsections (b)(7), (b)(8),
(c)(7), (c)(8), and (e), each member of the board must be an elected
official serving on the fiscal body of the taxing unit or the group of
taxing units that the individual represents. The board consists of
nine (9) members. All members except the county auditor are
voting members. However, the county auditor is entitled to vote to
break a tie vote.
(b) This subsection does not apply to a county containing a
consolidated city. For a county having at least two (2) cities, at least
two (2) towns, and at least two (2) school corporations, the
members of the county board of tax and capital projects review are
as follows:
(1) One (1) individual from the county fiscal body.
(2) One (1) individual from the fiscal body of the municipality
that has the greatest taxable assessed valuation in the county.
(3) One (1) individual from the fiscal body of the school
corporation that has the greatest taxable assessed valuation in
the county.
(4) One (1) individual from the fiscal bodies of the cities
within the county, excluding a municipality described in
subdivision (2).
(5) One (1) individual from the fiscal body of a school
corporation within the county (excluding a school corporation
described in subdivision (3)), appointed jointly by the fiscal
bodies of the school corporations. The appointment under this
subdivision must be made from the fiscal bodies of the school
corporations (excluding a school corporation described in
subdivision (3)) on a rotating basis determined by the school
corporations.
(6) One (1) individual from the fiscal bodies of the towns
within the county, excluding a town described in subdivision
(2).
(7) Two (2) individuals who are residents of the county and
are elected by the voters of the county under IC 3-11-2-12.8.
(8) The county auditor.
(c) This subsection does not apply to a county containing a
consolidated city. For a county not described in subsection (b), the
members of the county board of tax and capital projects review are
as follows:
(1) One (1) individual from the county fiscal body.
(2) One (1) individual from the fiscal body of the municipality
that has the greatest taxable assessed valuation in the county.
(3) One (1) individual from the fiscal body of the school
corporation that has the greatest taxable assessed valuation in
the county.
(4) One (1) individual from the fiscal bodies of the cities
within the county, or towns within the county in the case of a
county not having any cities. However, a municipality
described in subdivision (2) is excluded.
(5) One (1) individual from the fiscal bodies of the school
corporations within the county, excluding the school
corporation described in subdivision (3), unless that school
corporation is the only school corporation within the county.
If there is more than one (1) school corporation represented
under this subdivision, the appointment under this subdivision
must be made from the fiscal bodies of the school
corporations (excluding a school corporation described in
subdivision (3)) on a rotating basis determined by the school
corporations.
(6) One (1) individual from the fiscal bodies of the towns
within the county. However, a town described in subdivision
(2) and a town described in subdivision (4) are excluded.
(7) Two (2) individuals who are residents of the county and
are elected by the voters of the county under IC 3-11-2-12.8.
(8) The county auditor.
However, if the county has less than three (3) municipalities,
subsection (d), rather than subdivisions (2), (4), and (6), governs
the selection of members to represent those municipalities.
(d) If a county is subject to subsection (c) but has less than three
(3) municipalities, the members of the board who represent those
municipalities are determined in the following manner:
(1) If the county has two (2) municipalities, the members
representing those municipalities are two (2) individuals from
the fiscal body of the municipality that has the greatest
taxable assessed valuation and one (1) individual from the
fiscal body of the other municipality.
(2) If the county has only one (1) municipality, the members
representing that municipality are three (3) individuals from
the fiscal body of the municipality.
( e) The members of the county board of tax and capital projects
review in a county containing a consolidated city are as follows:
(1) One (1) individual appointed by the county executive.
(2) One (1) member appointed by the fiscal body of the largest
municipality in the county.
(3) One (1) individual appointed by the executive of the largest
municipality in the county.
(4) One (1) individual appointed jointly by the executives of all
municipalities in the county (other than the largest
municipality in the county).
(5) One (1) individual appointed jointly by the fiscal bodies of
all municipalities in the county (other than the largest
municipality in the county).
(6) The county auditor.
(7) The fiscal officer of the largest municipality in the county.
(8) One (1) individual from the fiscal body of the largest
school corporation in the county.
(9) One (1) individual appointed jointly by the fiscal officers
of all municipalities in the county (other than the largest
municipality in the county). An individual appointed under
this subdivision must be the fiscal officer of a municipality in
the county.
(f) Members of a county board of tax and capital projects
review shall be appointed or elected as provided in section 2 of this
chapter.
(g) For purposes of Article 2, Section 9 of the Constitution of the
State of Indiana, membership on a county board of tax and capital
projects review is not a lucrative office.
(h) A county board of tax and capital projects review is subject
to IC 5-14-1.5 and IC 5-14-3.
SOURCE: IC 6-1.1-29-2; (07)CC147804.43. -->
SECTION 43. IC 6-1.1-29-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 2.
(a) The seven (7)
members of the county board of tax adjustment shall be appointed
before April 15th of each year, and their appointments shall continue
in effect until April 15th of the following year. The four (4) freehold
members of the county board of tax adjustment may not be, or have
been during the year preceding their appointment, an official or
employee of a political subdivision. The four (4) freehold members
shall be appointed in such a manner that no more than four (4) of the
board members are members of the same political party.
This
subsection expires December 31, 2008.
(b) The following apply, notwithstanding any other provision:
(1) A member may not be appointed to a county board of tax
adjustment after December 31, 2008.
(2) The term of a member of a county board of tax adjustment
serving on December 31, 2008, expires on December 31, 2008.
(3) Each county board of tax adjustment is abolished on
December 31, 2008.
(c) On or before December 31 of 2008 and each even-numbered
year thereafter, each person or entity required to make an
appointment to a county board of tax and capital projects review
under section 1.5 of this chapter shall make the required
appointment or appointments of members who will represent the
person or entity on the county board of tax and capital projects
review. The appointments take effect January 1 of the following
odd-numbered year and continue in effect until December 31 of the
following even-numbered year. If a member is to be appointed by
one (1) entity, the appointment must be made by a majority vote of
the fiscal body in official session. If a member is to be appointed by
more than one (1) entity, the appointment must be made by a
majority vote of the total members of the entities taken in joint
session. If:
(1) a person or entity fails; or
(2) the entities, in the case of a joint appointment, fail;
to make a required appointment of a member by December 31 of
an even-numbered year, the county fiscal body shall make the
appointment.
(d) This subsection does not apply to a county containing a
consolidated city. At the general election in 2008 and every four (4)
years thereafter, the voters of each county shall under
IC 3-11-2-12.8 elect two (2) individuals who are residents of the
county as members of the county board of tax and capital projects
review. The term of office of a member elected under this
subsection begins January 1 of the year following the member's
election and ends December 31 of the fourth year following the
member's election. The two (2) members who are elected for a
position on the county board of tax and capital projects review are
determined as follows:
(1) The members shall be elected on a nonpartisan basis.
(2) Each prospective candidate must file a nomination petition
with the county election board not earlier than one hundred
four (104) days and not later than noon seventy-four (74) days
before the election at which the members are to be elected.
The nomination petition must include the following
information:
(A) The name of the prospective candidate.
(B) The signatures of at least one hundred (100) registered
voters residing in the county.
(C) A certification that the prospective candidate meets the
qualifications for candidacy imposed by this chapter.
(3) Only eligible voters residing in the county may vote for a
candidate.
(4) The two (2) candidates within the county who receive the
greatest number of votes in the county are elected.
(e) A member elected under this section may not be, or have
been during the year preceding the member's appointment or
election, an officer or employee of a political subdivision.
SOURCE: IC 6-1.1-29-2.5; (07)CC147804.44. -->
SECTION 44. IC 6-1.1-29-2.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2007]: Sec. 2.5. (a) This section applies after
December 31, 2008.
(b) Five (5) members of the county board of tax and capital
projects review constitute a quorum.
(c) The county board of tax and capital projects review may
adopt rules for the transaction of business at its meetings.
(d) The affirmative votes of at least five (5) members of the
county board of tax and capital projects review are required for
the board to take action.
(e) The county auditor is the clerk of the county board of tax
and capital projects review and shall:
(1) preserve the board's records in the auditor's office;
(2) keep an accurate record of the board's proceedings; and
(3) record the ayes and nays on each vote of the board.
SOURCE: IC 6-1.1-29-3; (07)CC147804.45. -->
SECTION 45. IC 6-1.1-29-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 3. (a) If a vacancy
occurs in the membership of the county board of tax adjustment
(before January 1, 2009) or the county board of tax and capital
projects review (after December 31, 2008) with respect to an
appointment made by a fiscal body, the vacancy shall be filled in the
same manner provided for the original appointment.
(b) If a vacancy occurs after December 31, 2008, in the
membership of the county board of tax and capital projects review
with respect to a member elected under section 2(d) of this chapter,
the county fiscal body shall appoint an individual to fill the vacancy
for the remainder of the term.
SOURCE: IC 6-1.1-29-4; (07)CC147804.46. -->
SECTION 46. IC 6-1.1-29-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 4. (a) Except as
provided in subsection (b), each county board of tax adjustment
(before January 1, 2009) or county board of tax and capital
projects review (after December 31, 2008), except the board for a
consolidated city and county and for a county containing a second class
city, shall hold its first meeting of each year for the purpose of
reviewing budgets, tax rates, and levies on September 22 or on the
first business day after September 22, if September 22 is not a business
day. The board for a consolidated city and county and for a county
containing a second class city shall hold its first meeting of each year
for the purpose of reviewing budgets, tax rates, and levies on the
first Wednesday following the adoption of city and county budget, tax
rate, and tax levy ordinances. The board shall hold the first meeting at
the office of the county auditor. At the first meeting of each year, the
board shall elect a chairman and a vice-chairman. After the first this
meeting, the board shall continue to meet from day to day at any
convenient place until its business is completed. However, the board
must, except as provided in subsection (b), complete its duties on or
before the date prescribed in IC 6-1.1-17-9(a). After the first meeting,
the board may hold subsequent meetings at any convenient place.
(b) This section does not limit the ability of the county board of
tax and capital projects review to meet after December 31, 2008, at
any time during a year to carry out its duties under IC 6-1.1-29.5.
SOURCE: IC 6-1.1-29-5; (07)CC147804.47. -->
SECTION 47. IC 6-1.1-29-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 5. The county auditor
shall serve as clerk of the county board of tax adjustment. The clerk
shall keep a complete record of all the board's proceedings. The clerk
may not vote on matters before the board. This section expires
December 31, 2008.
SOURCE: IC 6-1.1-29-6; (07)CC147804.48. -->
SECTION 48. IC 6-1.1-29-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 6. (a) The four (4)
freehold members of the county board of tax adjustment shall receive
compensation on a per diem basis for each day of actual service. The
rate of this compensation is the same as the rate that the freehold
members of the county property tax assessment board of appeals of that
county receive. The county auditor shall keep an attendance record of
each meeting of the county board of tax adjustment. At the close of
each annual session, the county auditor shall certify to the county board
of commissioners the number of days actually served by each freehold
member. The county board of commissioners may not allow claims for
service on the county board of tax adjustment for more days than the
number of days certified by the county auditor. This subsection
expires December 31, 2008.
(b) A member of the county board of tax and capital projects
review who is elected under section 1.5 of this chapter shall receive
compensation from the county on a per diem basis for each day of
actual service on the board. The rate of the compensation is equal
to the rate that members of the county property tax assessment
board of appeals in the county receive under IC 6-1.1-28-3. The
county auditor shall keep an attendance record of each meeting of
the county board of tax and capital projects review. The county
auditor shall certify to the county executive the number of days
actually served by each elected member. The county executive may
not allow claims for service on the county board of tax and capital
projects review for more days than the number of days certified by
the county auditor. Appointed members of the county board of tax
and capital projects review are not entitled to per diem
compensation.
SOURCE: IC 6-1.1-29-7; (07)CC147804.49. -->
SECTION 49. IC 6-1.1-29-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 7. A county board of
tax adjustment (before January 1, 2009) or the county board of tax
and capital projects review (after December 31, 2008) may require
an official of a political subdivision of the county to appear before the
board. In addition, the board may require such an official to provide the
board with information which is related to the budget, tax rate, or tax
levy of the political subdivision.
SOURCE: IC 6-1.1-29-8; (07)CC147804.50. -->
SECTION 50. IC 6-1.1-29-8 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 8. A county board of
tax adjustment
(before January 1, 2009) or the county board of tax
and capital projects review (after December 31, 2008) may employ
an examiner of the state board of accounts to assist the county board
with its duties. If the board desires to employ an examiner, it shall
adopt a resolution which states the number of days that the examiner
is to serve, when the county board files a copy of the resolution with
the chief examiner of the state board of accounts, the state board of
accounts shall assign an examiner to the county board of tax adjustment
(before January 1, 2009) or the county board of tax and capital
projects review (after December 31, 2008) for the number of days
stated in the resolution. When an examiner of the state board of
accounts is employed by a county board of tax adjustment (before
January 1, 2009) or a county board of tax and capital projects
review (after December 31, 2008) under this section, the county shall
pay the expenses related to his the examiner's services in the same
manner that expenses are to be paid under IC 1971, 5-11-4-3.
SOURCE: IC 6-1.1-29-9; (07)CC147804.51. -->
SECTION 51. IC 6-1.1-29-9, AS AMENDED BY P.L.2-2006,
SECTION 66, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]: Sec. 9. (a) This subsection expires December 31,
2008. A county council may adopt an ordinance to abolish the county
board of tax adjustment. This ordinance must be adopted by July 1 and
may not be rescinded in the year it is adopted. Notwithstanding
IC 6-1.1-17, IC 6-1.1-18, IC 20-45, IC 20-46, IC 12-19-7, IC 12-19-7.5,
IC 36-8-6, IC 36-8-7, IC 36-8-7.5, IC 36-8-11, IC 36-9-3, IC 36-9-4,
and IC 36-9-13, if such an ordinance is adopted, this section governs
the treatment of tax rates, tax levies, and budgets that would otherwise
be reviewed by a county board of tax adjustment under IC 6-1.1-17.
(b) This subsection applies after December 31, 2008. Subject to
subsection (e), a county board of tax and capital projects review
may not review or modify tax rates, tax levies, and budgets if the
county council:
(1) adopts an ordinance to abolish the county board of tax
adjustment before January 1, 2009; or
(2) adopts an ordinance before July 2 of any year to prohibit
the county board of tax and capital projects review from
carrying out such reviews.
An ordinance described in this subsection may not be rescinded in
the year it is adopted. Notwithstanding IC 6-1.1-17, IC 6-1.1-18,
IC 8-18-21-13, IC 12-19-7, IC 12-19-7.5, IC 14-30-2-19,
IC 14-30-4-16, IC 14-33-9-1, IC 20-45, IC 20-46, IC 36-7-15.1-26.9,
IC 36-8-6, IC 36-8-7, IC 36-8-7.5, IC 36-8-11, IC 36-9-3, IC 36-9-4,
and IC 36-9-13, if such an ordinance is adopted and has not been
rescinded, this section governs the treatment of tax rates, tax levies,
and budgets that would otherwise be reviewed by a county board
of tax and capital projects review. If an ordinance described in
subdivision (1) or (2) has been adopted in a county and has not
been rescinded, the county board of tax and capital projects review
may not review tax rates, tax levies, and budgets (other than for
capital projects) under IC 6-1.1-17-3, IC 6-1.1-17-5,
IC 6-1.1-17-5.6, IC 6-1.1-17-6, IC 6-1.1-17-7, IC 6-1.1-17-9,
IC 6-1.1-17-10, IC 6-1.1-17-11, IC 6-1.1-17-12, IC 6-1.1-17-14,
IC 6-1.1-17-15, IC 6-1.1-29-4(a), IC 8-18-21-13, IC 12-19-7,
IC 12-19-7.5, IC 14-30-2-19, IC 14-30-4-16, IC 14-33-9-1, IC 20-45,
IC 20-46, IC 36-7-15.1-26.9, IC 36-8-6, IC 36-8-7, IC 36-8-7.5,
IC 36-8-11, IC 36-9-3, IC 36-9-4, or IC 36-9-13.
(b) (c) The time requirements set forth in IC 6-1.1-17 govern all
filings and notices.
(c) (d) If an ordinance described in subsection (a) or (b) is
adopted and has not been rescinded, a tax rate, tax levy, or budget
that otherwise would be reviewed by the county board of tax
adjustment (before January 1, 2009) or the county board of tax and
capital projects review (after December 31, 2008) is considered and
must be treated for all purposes as if the county board of tax adjustment
approved the tax rate, tax levy, or budget. This includes the notice of
tax rates that is required under IC 6-1.1-17-12.
(e) This section does not prohibit a county board of tax and
capital projects review from reviewing tax rates, tax levies, and
budgets for informational purposes as necessary to carry out its
duties under IC 6-1.1-29.5.
SOURCE: IC 6-1.1-29.5; (07)CC147804.52. -->
SECTION 52. IC 6-1.1-29.5 IS ADDED TO THE INDIANA CODE
AS A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]:
Chapter 29.5. Capital Projects Review
Sec. 0.5. This chapter applies only to a capital project that meets
both of the following conditions:
(1) The capital project is a controlled project (as defined in
IC 6-1.1-20-1.1), except as provided in subdivision (2).
(2) Notwithstanding IC 6-1.1-20-1.1(2), the capital project will
cost the political subdivision more than seven million dollars
($7,000,000).
Sec. 1. (a) As used in this chapter, "capital project" means any:
(1) acquisition of land;
(2) site improvements;
(3) infrastructure improvements;
(4) construction of buildings or structures;
(5) rehabilitation, renovation, or enlargement of buildings or
structures; or
(6) acquisition or improvement of machinery, equipment,
furnishings, or facilities required for the operation of
buildings, structures, or infrastructure;
(or any combination of subdivisions (1) through (6)) by a political
subdivision.
(b) The term does not include projects for the construction,
reconstruction, improvement, enlargement, extension, or
maintenance of any of the following:
(1) Wastewater treatment.
(2) Sewer systems, including storm water management.
(3) Water storage, water distribution (including water lines),
and other drinking water systems.
(4) Water management or water supply.
(5) Drainage or flood control.
(6) Any works (as defined in IC 13-11-2-269(1)) for a water
project.
(7) Any works (as defined in IC 13-11-2-269(2)) for a sewage
project.
(8) Highways or roads.
(9) Bridges.
(10) Any other water project, sewer project, bridge project, or
highway or road project.
Sec. 2. As used in this chapter, "fiscal body" has the meaning set
forth in IC 36-1-2-6.
Sec. 3. As used in this chapter, "political subdivision" has the
meaning set forth in IC 36-1-2-13.
Sec. 4. As used in this chapter, "review board" refers to the
county board of tax and capital projects review established in a
county under IC 6-1.1-29.
Sec. 5. (a) The fiscal body of each political subdivision shall do
the following:
(1) After January 1 and before October 1 of 2009 and every
two (2) years thereafter:
(A) hold a public hearing on a proposed capital projects
plan for the political subdivision; and
(B) adopt a capital projects plan by ordinance or
resolution.
(2) Submit a copy of the capital projects plan and the
ordinance or resolution to the review board not later than
fifteen (15) days following the adoption of the capital projects
plan.
(b) If a political subdivision contains territory in more than one
(1) county, the fiscal body shall transmit a copy of the capital
projects plan and the ordinance or resolution to the review board
of each county in which the political subdivision contains territory.
Sec. 6. (a) The department of local government finance shall by
rule prescribe the format of a capital projects plan. A capital
projects plan must apply to at least the five (5) years immediately
following the year the capital projects plan is adopted and must
include the following components for each year covered by the
capital projects plan:
(1) A general description of the political subdivision.
(2) A description of facilities owned by the political
subdivision and the use of the facilities.
(3) The location and general description of each proposed
capital project and the intended use of each proposed capital
project.
(4) The estimated total cost of each proposed capital project.
(5) Identification of all sources of funds expected to be used
for each proposed capital project.
(6) The planning, development, and construction schedule of
each proposed capital project.
(7) Any other element required by the department of local
government finance.
(b) The department of local government finance shall by rule
establish a procedure for amendment of a capital projects plan in
the case of an emergency.
Sec. 7. Before a public hearing on a proposed capital projects
plan is held by the fiscal body of a political subdivision under
section 5(a)(1) of this chapter, the fiscal body shall publish a
summary of the proposed capital projects plan and a notice of the
hearing in accordance with IC 5-3-1-2(b).
Sec. 8. When the fiscal body of a political subdivision holds a
public hearing on a proposed capital projects plan under section
5(a)(1) of this chapter, the fiscal body shall allow the public the
opportunity to testify concerning the proposed capital projects
plan. However, the fiscal body may limit testimony at the public
hearing to a reasonable time stated at the opening of the public
hearing.
Sec. 9. (a) The review board shall hold a public hearing on a
proposed capital projects plan submitted by a political subdivision.
The review board shall allow the public the opportunity to testify
concerning the proposed capital projects plan.
(b) The review board shall provide the fiscal body of a political
subdivision with a written report concerning the review board's
findings and recommendations concerning the fiscal body's capital
projects plan not more than sixty (60) business days after the
review board's receipt of the capital projects plan.
(c) If the fiscal body of a political subdivision receives a written
report under subsection (b) that makes a recommendation against
an element included in the political subdivision's capital projects
plan, the political subdivision may retain that element in the capital
projects plan only if the fiscal body at a public meeting addresses
the review board's concerns and enters into the record of the
public meeting an explanation of why that element should be
retained in the capital projects plan.
Sec. 10. (a) The fiscal body of a political subdivision that intends
to construct, acquire, or carry out a capital project subject to this
chapter:
(1) must submit the plan of the capital project to the review
board in the manner provided by this chapter; and
(2) except as provided in section 14 of this chapter, may not:
(A) begin construction or acquisition of the capital project;
(B) enter into contracts for the construction or acquisition
of the capital project;
(C) procure supplies necessary for construction or
acquisition of the capital project;
(D) issue bonds, notes, or warrants, or otherwise borrow
money for the capital project;
(E) enter into a lease or other agreement that would
provide debt service for bonds or other obligations issued
by the political subdivision or another entity to finance the
capital project; or
(F) approve any of the actions described in clauses (A)
through (E) by another entity;
unless the review board approves the capital project under
section 13 of this chapter.
(b) If a political subdivision contains territory in more than one
(1) county, the fiscal body of the political subdivision must submit
the proposed capital project to the review board of each of those
counties.
(c) The fiscal body of a political subdivision may not artificially
divide a capital project into multiple capital projects in order to
avoid the requirements of this section.
Sec. 11. (a) Before the fiscal body of a political subdivision may
submit a capital project described in section 10 of this chapter to
the review board, the fiscal body shall:
(1) hold a public hearing on the proposed capital project; and
(2) prepare a feasibility study that supports the scope and cost
of the proposed capital project.
Before a public hearing on a proposed capital project is held by the
fiscal body of a political subdivision under this section, the fiscal
body shall publish a description of the proposed capital project and
a notice of the hearing in accordance with IC 5-3-1-2(b).
(b) The fiscal body of a political subdivision may consider
multiple capital projects at a public hearing held under this
section.
(c) When the fiscal body of a political subdivision holds a public
hearing under this section, the fiscal body shall allow any person
an opportunity to be heard in the presence of others who are
present to testify with respect to the proposed capital project.
However, the fiscal body may limit testimony at a public hearing
to a reasonable time stated at the opening of the public hearing.
(d) After holding a public hearing under this section and
considering all information submitted by persons testifying at the
hearing, the fiscal body of a political subdivision may adopt an
ordinance or resolution requesting approval of the proposed
capital project by the review board. The fiscal body shall
immediately transmit a copy of the ordinance or resolution to the
review board. If the political subdivision contains territory in more
than one (1) county, the fiscal body shall transmit a copy of the
ordinance or resolution to the review board of each of those
counties.
Sec. 12. (a) Before taking action on a request for approval of a
proposed capital project described in section 10 of this chapter, a
review board must conduct a public hearing on the proposed
project. If a public hearing is scheduled under this section, the
review board shall publish a description of the proposed capital
project and a notice of the hearing in accordance with
IC 5-3-1-2(b).
(b) The review board may consider multiple capital projects at
a public hearing held under this section.
(c) The review board may require the fiscal body of a political
subdivision that submits a request for approval of a capital project
to provide plans, specifications, cost estimates, estimated impacts
on tax rates, and other relevant information concerning that
project.
(d) When a review board holds a public hearing under this
section, the review board shall allow the public an opportunity to
testify concerning the proposed capital project. However, the
review board may limit testimony at a public hearing to a
reasonable time stated at the opening of the public hearing.
Sec. 13. (a) After considering all information submitted at the
hearing under section 12 of this chapter by the fiscal body of the
political subdivision and by persons testifying at the hearing, the
review board may approve or disapprove a proposed capital
project. The review board may consider the following factors when
reviewing a proposed capital project:
(1) The age, condition, and adequacy of existing facilities.
(2) The cost per square foot of the proposed capital project.
(3) The relative priority the proposed capital project should
have among other capital projects proposed within the
county.
(4) The estimated impact the proposed capital project would
have on tax rates.
(5) Any other factors considered pertinent by the review
board.
(b) A review board may not disapprove a proposed capital
project that is required by a court order.
(c) If a review board does not issue a decision with respect to a
proposed capital project within ninety (90) days after the review
board's receipt of the plan of the capital project under section 11
of this chapter, the capital project is considered approved by the
review board as submitted.
(d) If a proposed capital project is submitted to the review
boards of two (2) or more counties as required by section 10(b) of
this chapter and the project is disapproved by any of the review
boards, the project is considered to be disapproved.
(e) All orders of the review board under this section shall be
filed with the affected political subdivision and with the
department of local government finance.
Sec. 14. If the review board disapproves a capital project under
section 13 of this chapter, the political subdivision that proposed
the project may take any action under section 10(a)(2) of this
chapter with regard to the capital project if:
(1) not more than sixty (60) days after the review board's
disapproval, the political subdivision initiates the petition and
remonstrance process under IC 6-1.1-20-3.4; and
(2) the capital project is approved in the petition and
remonstrance process under IC 6-1.1-20.
SOURCE: IC 6-2.5-5-8; (07)CC147804.53. -->
SECTION 53. IC 6-2.5-5-8, AS AMENDED BY SEA 500-2007, IS
AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2007]:
Sec. 8. (a) As used in this section, "new motor vehicle" has the
meaning set forth in IC 9-13-2-111.
(b) Transactions involving tangible personal property other than a
new motor vehicle are exempt from the state gross retail tax if the
person acquiring the property acquires it for resale, rental, or leasing in
the ordinary course of the person's business without changing the form
of the property.
(c) The following transactions involving a new motor vehicle are
exempt from the state gross retail tax:
(1) A transaction in which a person that has a franchise in effect
at the time of the transaction for the vehicle trade name, trade or
service mark, or related characteristics acquires a new motor
vehicle for resale, rental, or leasing in the ordinary course of the
person's business.
(2) A transaction in which a person that is a franchisee appointed
by a manufacturer or converter manufacturer licensed under
IC 9-23 acquires a new motor vehicle that has at least one (1)
trade name, service mark, or related characteristic as a result of
modification or further manufacture by the manufacturer or
converter manufacturer for resale, rental, or leasing in the
ordinary course of the person's business.
(3) A transaction in which a person acquires a new motor vehicle
for rental or leasing in the ordinary course of the person's
business.
(d) The rental or leasing of accommodations to a promoter by a
political subdivision (including a capital improvement board) or the
state fair commission is not exempt from the state gross retail tax, if the
rental or leasing of the property by the promoter is exempt under
IC 6-2.5-4-4.
(e) This subsection applies only after June 30, 2008. A transaction
in which a person acquires an aircraft for rental or leasing in the
ordinary course of the person's business is not exempt from the state
gross retail tax unless the person establishes, under guidelines adopted
by the department in the manner provided in IC 4-22-2-37.1 for the
adoption of emergency rules, that the annual amount of the lease
revenue derived from leasing the aircraft is equal to or greater than:
(1) ten percent (10%) of the greater of the original cost or the
book value of the aircraft, if the original cost of the aircraft was
less than one million dollars ($1,000,000); or
(2) seven and five-tenths percent (7.5%) of the greater of the
original cost or the book value of the aircraft, if the original cost
of the aircraft was at least one million dollars ($1,000,000).
SOURCE: IC 6-3.5-1.1-2; (07)CC147804.54. -->
SECTION 54. IC 6-3.5-1.1-2, AS AMENDED BY P.L.162-2006,
SECTION 27, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 2. (a) The county council of any county in
which the county option income tax will not be in effect on
July
October 1 of a year under an ordinance adopted during a previous
calendar year may impose the county adjusted gross income tax on the
adjusted gross income of county taxpayers of its county effective July
1 of that year.
(b) Except as provided in section 2.3, 2.5,
2.6, 2.7, 2.8, 2.9, 3.3, 3.5,
or 3.6,
24, 25, or 26 of this chapter, the county adjusted gross income
tax may be imposed at a rate of one-half of one percent (0.5%),
three-fourths of one percent (0.75%), or one percent (1%) on the
adjusted gross income of resident county taxpayers of the county. Any
county imposing the county adjusted gross income tax must impose the
tax on the nonresident county taxpayers at a rate of one-fourth of one
percent (0.25%) on their adjusted gross income. If the county council
elects to decrease the county adjusted gross income tax, the county
council may decrease the county adjusted gross income tax rate in
increments of one-tenth of one percent (0.1%).
(c) To impose the county adjusted gross income tax, the county
council must, after
January 1 March 31 but before
April August 1 of
a year, adopt an ordinance. The ordinance must substantially state the
following:
"The ________ County Council imposes the county adjusted
gross income tax on the county taxpayers of ________ County.
The county adjusted gross income tax is imposed at a rate of
_____ percent (_____%) on the resident county taxpayers of the
county and one-fourth of one percent (0.25%) on the nonresident
county taxpayers of the county. This tax takes effect July October
1 of this year.".
(d) Any ordinance adopted under this section takes effect July
October 1 of the year the ordinance is adopted.
(e) The auditor of a county shall record all votes taken on
ordinances presented for a vote under the authority of this section and
immediately send a certified copy of the results to the department by
certified mail.
(f) If the county adjusted gross income tax had previously been
adopted by a county under IC 6-3.5-1 (before its repeal on March 15,
1983) and that tax was in effect at the time of the enactment of this
chapter, then the county adjusted gross income tax continues in that
county at the rates in effect at the time of enactment until the rates are
modified or the tax is rescinded in the manner prescribed by this
chapter. If a county's adjusted gross income tax is continued under this
subsection, then the tax shall be treated as if it had been imposed under
this chapter and is subject to rescission or reduction as authorized in
this chapter.
SOURCE: IC 6-3.5-1.1-2.3; (07)CC147804.55. -->
SECTION 55. IC 6-3.5-1.1-2.3, AS ADDED BY P.L.162-2006,
SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 2.3. (a) This section applies to Jasper County.
(b) The county council may, by ordinance, determine that additional
county adjusted gross income tax revenue is needed in the county to:
(1) finance, construct, acquire, improve, renovate, or equip:
(A) jail facilities;
(B) juvenile court, detention, and probation facilities;
(C) other criminal justice facilities; and
(D) related buildings and parking facilities;
located in the county, including costs related to the demolition of
existing buildings and the acquisition of land; and
(2) repay bonds issued or leases entered into for the purposes
described in subdivision (1).
(c) The county council may, by ordinance, determine that additional
county adjusted gross income tax revenue is needed in the county to
operate or maintain any of the facilities described in subsection
(b)(1)(A) through (b)(1)(D) that are located in the county. The county
council may make a determination under both this subsection and
subsection (b).
(d) In addition to the rates permitted by section 2 of this chapter, the
county council may impose the county adjusted gross income tax at a
rate of:
(1) fifteen-hundredths percent (0.15%);
(2) two-tenths percent (0.2%); or
(3) twenty-five hundredths percent (0.25%);
on the adjusted gross income of county taxpayers if the county council
makes a finding and determination set forth in subsection (b) or (c).
(e) If the county council imposes the tax under this section to pay
for the purposes described in both subsections (b) and (c), when:
(1) the financing, construction, acquisition, improvement,
renovation, and equipping described in subsection (b) are
completed; and
(2) all bonds issued or leases entered into to finance the
construction, acquisition, improvement, renovation, and
equipping described in subsection (b) are fully paid;
the county council shall, subject to subsection (d), establish a tax rate
under this section by ordinance such that the revenue from the tax does
not exceed the costs of operating and maintaining the jail facilities
described in subsection (b)(1)(A). The tax rate may not be imposed at
a rate greater than is necessary to carry out the purposes described in
subsections (b) and (c), as applicable.
(f) An ordinance adopted under this section before June 1, 2006, or
April August 1 in a subsequent year applies to the imposition of county
income taxes after June September 30 in that year. An ordinance
adopted under this section after May 31, 2006, and March July 31 of
a subsequent year initially applies to the imposition of county option
income taxes after June September 30 of the immediately following
year.
(g) The tax imposed under this section may be imposed only until
the latest of the following:
(1) The date on which the financing, construction, acquisition,
improvement, renovation, and equipping described in subsection
(b) are completed.
(2) The date on which the last of any bonds issued or leases
entered into to finance the construction, acquisition,
improvement, renovation, and equipping described in subsection
(b) are fully paid.
(3) The date on which an ordinance adopted under subsection (c)
is rescinded.
(h) The term of the bonds issued (including any refunding bonds) or
a lease entered into under subsection (b)(2) may not exceed twenty (20)
years.
(i) The county treasurer shall establish a criminal justice facilities
revenue fund to be used only for purposes described in this section.
County adjusted gross income tax revenues derived from the tax rate
imposed under this section shall be deposited in the criminal justice
facilities revenue fund before making a certified distribution under
section 11 of this chapter.
(j) County adjusted gross income tax revenues derived from the tax
rate imposed under this section:
(1) may be used only for the purposes described in this section;
(2) 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; 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).
(k) Notwithstanding any other law, money remaining in the criminal
justice facilities revenue fund established under subsection (i) after the
tax imposed by this section is terminated under
subsection (f)
subsection (g) shall be transferred to the county highway fund to be
used for construction, resurfacing, restoration, and rehabilitation of
county highways, roads, and bridges.
SOURCE: IC 6-3.5-1.1-2.6; (07)CC147804.56. -->
SECTION 56. IC 6-3.5-1.1-2.6 IS ADDED TO THE INDIANA
CODE AS A
NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]:
Sec. 2.6. (a) This section applies to
Parke County.
(b) The county council may, by ordinance, determine that
additional county adjusted gross income tax revenue is needed in
the county to:
(1) fund the costs (including pre-trial costs) of a capital trial
that has been moved to another county for trial; and
(2) to repay money borrowed for the purpose described in
subdivision (1).
(c) In addition to the rates permitted by section 2 of this
chapter, if the county council makes a determination described in
subsection (b), the county council may by ordinance impose the
county adjusted gross income tax at a rate not to exceed the lesser
of:
(1) a rate necessary to carry out the purposes of subsection
(b); or
(2) twenty-five hundredths percent (0.25%);
on the adjusted gross income of county taxpayers.
(d) The tax imposed under this section may be imposed only
until the later of the following:
(1) The date on which the costs described in subsection (b),
including the repayment of money borrowed for the purposes
described in subsection (b), are fully paid.
(2) The date on which an ordinance adopted under subsection
(c) is rescinded.
(e) The term of any borrowing described in subsection (b)(2)
may not exceed three (3) years.
(f) The county treasurer shall establish a capital trial revenue
fund to be used only for purposes described in this section. County
adjusted gross income tax revenues derived from the tax rate
imposed under this section shall be deposited in the capital trial
revenue fund before making a certified distribution under section
11 of this chapter.
(g) County adjusted gross income tax revenues derived from the
tax rate imposed under this section:
(1) may be used only for the purposes described in this
section;
(2) 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; and
(3) may be pledged for the payment of costs described in
subsection (b).
(h) Notwithstanding any other law, money remaining in the
capital trial revenue fund established under subsection (f) after the
tax imposed by this section is terminated under subsection (d) shall
be transferred to the county general fund to be used for criminal
justice costs.
SOURCE: IC 6-3.5-1.1-3; (07)CC147804.57. -->
SECTION 57. IC 6-3.5-1.1-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3. (a) The county
council may increase the county adjusted gross income tax rate
imposed upon the resident county taxpayers of the county. To increase
the rate, the county council must, after January 1 March 31 but before
April August 1 of a year, adopt an ordinance. The ordinance must
substantially state the following:
"The ________ County Council increases the county adjusted
gross income tax rate imposed upon the resident county taxpayers
of the county from ________ percent (___%) to _______ percent
(___%). This tax rate increase takes effect July October 1 of this
year.".
(b) Any ordinance adopted under this section takes effect July
October 1 of the year the ordinance is adopted.
(c) The auditor of a county shall record all votes taken on
ordinances presented for a vote under the authority of this section and
immediately send a certified copy of the results to the department by
certified mail.
SOURCE: IC 6-3.5-1.1-3.1; (07)CC147804.58. -->
SECTION 58. IC 6-3.5-1.1-3.1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3.1. (a) The county
council may decrease the county adjusted gross income tax rate
imposed upon the resident county taxpayers of the county. To decrease
the rate, the county council must, after
January 1 March 31 but before
April August 1 of a year, adopt an ordinance. The ordinance must
substantially state the following:
"The ________ County Council decreases the county adjusted
gross income tax rate imposed upon the resident county taxpayers
of the county from _____ percent (___%) to _____ percent
(___%). This tax rate decrease takes effect
July October 1 of this
year.".
(b) A county council may not decrease the county adjusted gross
income tax rate if the county or any commission, board, department, or
authority that is authorized by statute to pledge the county adjusted
gross income tax has pledged the county adjusted gross income tax for
any purpose permitted by IC 5-1-14 or any other statute.
(c) Any ordinance adopted under this section takes effect
July
October 1 of the year the ordinance is adopted.
(d) The auditor of a county shall record all votes taken on
ordinances presented for a vote under the authority of this section and
immediately send a certified copy of the results to the department by
certified mail.
(e) Notwithstanding IC 6-3.5-7, and except as provided in
subsection (f), a county council that decreases the county adjusted
gross income tax rate in a year may not in the same year adopt or
increase the county economic development income tax under
IC 6-3.5-7.
(f) This subsection applies only to a county having a population of
more than one hundred ten thousand (110,000) but less than one
hundred fifteen thousand (115,000). The county council may adopt or
increase the county economic development income tax rate under
IC 6-3.5-7 in the same year that the county council decreases the
county adjusted gross income tax rate if the county economic
development income tax rate plus the county adjusted gross income tax
rate in effect after the county council decreases the county adjusted
gross income tax rate is less than the county adjusted gross income tax
rate in effect before the adoption of an ordinance under this section
decreasing the rate of the county adjusted gross income tax.
SOURCE: IC 6-3.5-1.1-3.5; (07)CC147804.59. -->
SECTION 59. IC 6-3.5-1.1-3.5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3.5. (a) This
section applies only to a county having a population of more than
thirteen thousand five hundred (13,500) but less than fourteen thousand
(14,000).
(b) The county council of a county described in subsection (a) may,
by ordinance, determine that additional county adjusted gross income
tax revenue is needed in the county to fund the operation and
maintenance of a jail and justice center.
(c) Notwithstanding section 2 of this chapter, if the county council
adopts an ordinance under subsection (b), the county council may
impose the county adjusted gross income tax at a rate of one and
three-tenths percent (1.3%) on adjusted gross income. However, a
county may impose the county adjusted gross income tax at a rate of
one and three-tenths percent (1.3%) for only eight (8) years. After the
county has imposed the county adjusted gross income tax at a rate of
one and three-tenths percent (1.3%) for eight (8) years, 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 three-tenths percent
(1.3%), the county council may decrease the rate or rescind the tax in
the manner provided under this chapter.
(d) If a county imposes the county adjusted gross income tax at a
rate of one and three-tenths percent (1.3%) under this section, the
revenue derived from a tax rate of three-tenths percent (0.3%) on
adjusted gross income:
(1) shall be paid to the county treasurer;
(2) may be used only to pay the costs of operating and
maintaining a jail and justice center; and
(3) may not be considered by the department of local government
finance under any provision of IC 6-1.1-18.5, including the
determination of the county's maximum permissible property tax
levy.
(e) Notwithstanding section 3 of this chapter, the county fiscal body
may adopt an ordinance under this section before June 1.
SOURCE: IC 6-3.5-1.1-4; (07)CC147804.60. -->
SECTION 60. IC 6-3.5-1.1-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 4. (a) The county
adjusted gross income tax imposed by a county council under this
chapter remains in effect until rescinded.
(b) Except as provided in subsection (e), the county council may
rescind the county adjusted gross income tax by adopting an ordinance
to rescind the tax after
January 1 March 31 but before
June August 1
of a year.
(c) Any ordinance adopted under this section takes effect July
October 1 of the year the ordinance is adopted.
(d) The auditor of a county shall record all votes taken on
ordinances presented for a vote under the authority of this section and
immediately send a certified copy of the results to the department by
certified mail.
(e) A county council may not rescind the county adjusted gross
income tax or take any action that would result in a civil taxing unit in
the county having a smaller certified share than the certified share to
which the civil taxing unit was entitled when the civil taxing unit
pledged county adjusted gross income tax if the civil taxing unit or any
commission, board, department, or authority that is authorized by
statute to pledge county adjusted gross income tax has pledged county
adjusted gross income tax for any purpose permitted by IC 5-1-14 or
any other statute. The prohibition in this section does not apply if the
civil taxing unit pledges legally available revenues to fully replace the
civil taxing unit's certified share that has been pledged.
SOURCE: IC 6-3.5-1.1-9; (07)CC147804.61. -->
SECTION 61. IC 6-3.5-1.1-9, AS AMENDED BY P.L.207-2005,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 9. (a) Revenue derived from the imposition of
the county adjusted gross income tax shall, in the manner prescribed by
this section, be distributed to the county that imposed it. The amount
to be distributed to a county during an ensuing calendar year equals the
amount of county adjusted gross income tax revenue that the
department, after reviewing the recommendation of the budget agency,
determines has been:
(1) received from that county for a taxable year ending before the
calendar year in which the determination is made; and
(2) reported on an annual return or amended return processed by
the department in the state fiscal year ending before July 1 of the
calendar year in which the determination is made;
as adjusted (as determined after review of the recommendation of the
budget agency) for refunds of county adjusted gross income tax made
in the state fiscal year.
(b) Before August 2 of each calendar year, the department, after
reviewing the recommendation of the budget agency, shall certify to the
county auditor of each adopting county the amount determined under
subsection (a) plus the amount of interest in the county's account that
has accrued and has not been included in a certification made in a
preceding year. The amount certified is the county's "certified
distribution" for the immediately succeeding calendar year. The amount
certified shall be adjusted under subsections (c), (d), (e), (f),
and (g),
and (h). The department shall provide with the certification an
informative summary of the calculations used to determine the certified
distribution.
The department shall also certify information
concerning the part of the certified distribution that is attributable
to a tax rate under section 24, 25, or 26 of this chapter. This
information must be certified to the county auditor and to the
department of local government finance not later than September
1 of each calendar year. The part of the certified distribution that
is attributable to a tax rate under section 24, 25, or 26 of this
chapter may be used only as specified in those provisions.
(c) The department shall certify an amount less than the amount
determined under subsection (b) if the department, after reviewing the
recommendation of the budget agency, determines that the reduced
distribution is necessary to offset overpayments made in a calendar
year before the calendar year of the distribution. The department, after
reviewing the recommendation of the budget agency, may reduce the
amount of the certified distribution over several calendar years so that
any overpayments are offset over several years rather than in one (1)
lump sum.
(d) The department, after reviewing the recommendation of the
budget agency, shall adjust the certified distribution of a county to
correct for any clerical or mathematical errors made in any previous
certification under this section. The department, after reviewing the
recommendation of the budget agency, may reduce the amount of the
certified distribution over several calendar years so that any adjustment
under this subsection is offset over several years rather than in one (1)
lump sum.
(e) The department, after reviewing the recommendation of the
budget agency, shall adjust the certified distribution of a county to
provide the county with the distribution required under section 10(b)
of this chapter.
(f) This subsection applies to a county that:
(1) initially imposes the county adjusted gross income tax; or
(2) increases the county adjusted income tax rate;
under this chapter in the same calendar year in which the department
makes a certification under this section. The department, after
reviewing the recommendation of the budget agency, shall adjust the
certified distribution of a county to provide for a distribution in the
immediately following calendar year and in each calendar year
thereafter. The department shall provide for a full transition to
certification of distributions as provided in subsection (a)(1) through
(a)(2) in the manner provided in subsection (c).
(g) The department, after reviewing the recommendation of the
budget agency, shall adjust the certified distribution of a county to
provide the county with the distribution required under section 3.3 of
this chapter beginning not later than the tenth month after the month in
which additional revenue from the tax authorized under section 3.3 of
this chapter is initially collected.
(h) This subsection applies in the year in which a county initially
imposes a tax rate under section 24 of this chapter.
Notwithstanding any other provision, the department shall adjust
the part of the county's certified distribution that is attributable to
the tax rate under section 24 of this chapter to provide for a
distribution in the immediately following calendar year equal to
the result of:
(1) the sum of the amounts determined under STEP ONE
through STEP FOUR of IC 6-3.5-1.5-1(a) in the year in which
the county initially imposes a tax rate under section 24 of this
chapter; multiplied by
(2) two (2).
SOURCE: IC 6-3.5-1.1-10; (07)CC147804.62. -->
SECTION 62. IC 6-3.5-1.1-10, AS AMENDED BY P.L.147-2006,
SECTION 2, AS AMENDED BY P.L.162-2006, SECTION 29, AND
AS AMENDED BY P.L.2-2006, SECTION 68, IS CORRECTED AND
AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON
PASSAGE]: Sec. 10. (a) Except as provided in subsection (b), one-half
(1/2) of each adopting county's certified distribution for a calendar year
shall be distributed from its account established under section 8 of this
chapter to the appropriate county treasurer on May 1 and the other
one-half (1/2) on November 1 of that calendar year.
(b) This subsection applies to a county having a population of more
than one hundred forty-five thousand (145,000) but less than one
hundred forty-eight thousand (148,000). Notwithstanding section 9 of
this chapter, the initial certified distribution certified for a county under
section 9 of this chapter shall be distributed to the county treasurer
from the account established for the county under section 8 of this
chapter according to the following schedule during the eighteen (18)
month period beginning on July 1 of the year in which the county
initially adopts an ordinance under section 2 of this chapter:
(1) One-fourth (1/4) on October 1 of the calendar year in which
the ordinance was adopted.
(2) One-fourth (1/4) on January 1 of the calendar year following
the year in which the ordinance was adopted.
(3) One-fourth (1/4) on May 1 of the calendar year following the
year in which the ordinance was adopted.
(4) One-fourth (1/4) on November 1 of the calendar year
following the year in which the ordinance was adopted.
Notwithstanding section 11 of this chapter, the part of the certified
distribution received under subdivision (1) that would otherwise be
allocated to a civil taxing unit or school corporation as property tax
replacement credits under section 11 of this chapter shall be set aside
and treated for the calendar year when received by the civil taxing unit
or school corporation as a levy excess subject to IC 6-1.1-18.5-17 or
IC 6-1.1-19-1.7. IC 20-44-3. Certified distributions made to the county
treasurer for calendar years following the eighteen (18) month period
described in this subsection shall be made as provided in subsection
(a).
(c) Except for:
(1) revenue that must be used to pay the costs of:
(A) financing, constructing, acquiring, improving, renovating,
equipping, operating, or maintaining facilities and buildings;
(B) debt service on bonds; or
(C) lease rentals;
under section 2.3 of this chapter;
(1) (2) revenue that must be used to pay the costs of operating a
jail and juvenile detention center under section 2.5(d) of this
chapter;
(2) (3) revenue that must be used to pay the costs of:
(A) financing, constructing, acquiring, improving, renovating,
or equipping, operating, or maintaining facilities and
buildings;
(B) debt service on bonds; or
(C) lease rentals;
under section 2.8 of this chapter;
(3) (4) revenue that must be used to pay the costs of construction,
improvement, renovation, or remodeling of a jail and related
buildings and parking structures under section 2.7, 2.9, or 3.3 of
this chapter;
(4) (5) revenue that must be used to pay the costs of operating and
maintaining a jail and justice center under section 3.5(d) of this
chapter; or
(5) (6) revenue that must be used to pay the costs of constructing,
acquiring, improving, renovating, or equipping a county
courthouse under section 3.6 of this chapter;
(7) revenue under section 2.6 of this chapter; or
(8) revenue attributable to a tax rate under section 24, 25, or
26 of this chapter;
distributions made to a county treasurer under subsections (a) and (b)
shall be treated as though they were property taxes that were due and
payable during that same calendar year. Except as provided by
subsection (b) and sections 24, 25, and 26 of this chapter, the
certified distribution shall be distributed and used by the taxing units
and school corporations as provided in sections 11 through 15 of this
chapter.
(d) All distributions from an account established under section 8 of
this chapter shall be made by warrants issued by the auditor of the state
to the treasurer of the state ordering the appropriate payments.
SOURCE: IC 6-3.5-1.1-11; (07)CC147804.63. -->
SECTION 63. IC 6-3.5-1.1-11, AS AMENDED BY P.L.147-2006,
SECTION 3, AND AS AMENDED BY P.L.162-2006, SECTION 30,
IS CORRECTED AND AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 11. (a) Except for:
(1) revenue that must be used to pay the costs of:
(A) financing, constructing, acquiring, improving, renovating,
equipping, operating, or maintaining facilities and buildings;
(B) debt service on bonds; or
(C) lease rentals;
under section 2.3 of this chapter;
(1) (2) revenue that must be used to pay the costs of operating a
jail and juvenile detention center under section 2.5(d) of this
chapter;
(2) (3) revenue that must be used to pay the costs of:
(A) financing, constructing, acquiring, improving, renovating,
or equipping,
operating, or maintaining facilities and
buildings;
(B) debt service on bonds; or
(C) lease rentals;
under section 2.8 of this chapter;
(3) (4) revenue that must be used to pay the costs of construction,
improvement, renovation, or remodeling of a jail and related
buildings and parking structures under section 2.7, 2.9, or 3.3 of
this chapter;
(4) (5) revenue that must be used to pay the costs of operating and
maintaining a jail and justice center under section 3.5(d) of this
chapter; or
(5) (6) revenue that must be used to pay the costs of constructing,
acquiring, improving, renovating, or equipping a county
courthouse under section 3.6 of this chapter; or
(7) revenue attributable to a tax rate under section 24, 25, or
26 of this chapter;
the certified distribution received by a county treasurer shall, in the
manner prescribed in this section, be allocated, distributed, and used
by the civil taxing units and school corporations of the county as
certified shares and property tax replacement credits.
(b) Before August 10 of each calendar year, each county auditor
shall determine the part of the certified distribution for the next
succeeding calendar year that will be allocated as property tax
replacement credits and the part that will be allocated as certified
shares. The percentage of a certified distribution that will be allocated
as property tax replacement credits or as certified shares depends upon
the county adjusted gross income tax rate for resident county taxpayers
in effect on August 1 of the calendar year that precedes the year in
which the certified distribution will be received by two (2) years. The
percentages are set forth in the following table:
PROPERTY
COUNTY
TAX
ADJUSTED GROSS
REPLACEMENT
CERTIFIED
INCOME TAX RATE
CREDITS
SHARES
0.5%
50%
50%
0.75%
33 1/3%
66 2/3%
1%
25%
75%
(c) The part of a certified distribution that constitutes property tax
replacement credits shall be distributed as provided under sections 12,
13, and 14 of this chapter.
(d) The part of a certified distribution that constitutes certified
shares shall be distributed as provided by section 15 of this chapter.
SOURCE: IC 6-3.5-1.1-15; (07)CC147804.64. -->
SECTION 64. IC 6-3.5-1.1-15, AS AMENDED BY P.L.207-2005,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]: Sec. 15. (a) As used in this section, "attributed
allocation amount" of a civil taxing unit for a calendar year means the
sum of:
(1) the allocation amount of the civil taxing unit for that calendar
year; plus
(2) the current ad valorem property tax levy 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 civil taxing unit; plus
(3) in the case of a county, an amount equal to the property taxes
imposed by the county in 1999 for the county's welfare fund and
welfare administration fund.
(b) The part of a county's certified distribution that is to be used as
certified shares shall be allocated only among the county's civil taxing
units. Each civil taxing unit of a county is entitled to receive a certified
share during a calendar year in an amount determined in STEP TWO
of the following formula:
STEP ONE: Divide:
(A) the attributed allocation amount of the civil taxing unit
during that calendar year; by
(B) the sum of the attributed allocation amounts of all the civil
taxing units of the county during that calendar year.
STEP TWO: Multiply the part of the county's certified
distribution that is to be used as certified shares by the STEP
ONE amount.
(c) The local government tax control board established by
IC 6-1.1-18.5-11 (before January 1, 2009) or the county board of
tax and capital projects review (after December 31, 2008) shall
determine the attributed levies of civil taxing units that are entitled to
receive certified shares during a calendar year. If the ad valorem
property tax levy of any special taxing district, authority, board, or
other entity is attributed to another civil taxing unit under subsection
(a)(2), then the special taxing district, authority, board, or other entity
shall not be treated as having an attributed allocation amount of its
own. The local government tax control board (before January 1, 2009)
or the county board of tax and capital projects review (after
December 31, 2008) shall certify the attributed allocation amounts to
the appropriate county auditor. The county auditor shall then allocate
the certified shares among the civil taxing units of the auditor's county.
(d) Certified shares received by a civil taxing unit shall be treated
as additional revenue for the purpose of fixing its budget for the
calendar year during which the certified shares will be received. The
certified shares may be allocated to or appropriated for any purpose,
including property tax relief or a transfer of funds to another civil
taxing unit whose levy was attributed to the civil taxing unit in the
determination of its attributed allocation amount.
SOURCE: IC 6-3.5-1.1-23; (07)CC147804.65. -->
SECTION 65. IC 6-3.5-1.1-23 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 23. (a) A pledge of
county adjusted gross income tax revenues under this chapter (other
than tax revenue attributable to a tax rate under section 24, 25, or
26 of this chapter) is enforceable in accordance with IC 5-1-14.
(b) With respect to obligations for which a pledge has been made
under this chapter, the general assembly covenants with the county and
the purchasers or owners of those obligations that this chapter will not
be repealed or amended in any manner that will adversely affect the
collection of the tax imposed under this chapter as long as the principal
of or interest on those obligations is unpaid.
SOURCE: IC 6-3.5-1.1-24; (07)CC147804.66. -->
SECTION 66. IC 6-3.5-1.1-24 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 24. (a) In a county in which
the county adjusted gross income tax is in effect, the county council
may, before August 1 of a year, adopt an ordinance to impose or
increase (as applicable) a tax rate under this section.
(b) In a county in which neither the county adjusted gross
income tax nor the county option income tax is in effect, the county
council may, before August 1 of a year, adopt an ordinance to
impose a tax rate under this section.
(c) An ordinance adopted under this section takes effect October
1 of the year in which the ordinance is adopted. If a county council
adopts an ordinance to impose or increase a tax rate under this
section, the county auditor shall send a certified copy of the
ordinance to the department and the department of local
government finance by certified mail.
(d) A tax rate under this section is in addition to any other tax
rates imposed under this chapter and does not affect the purposes
for which other tax revenue under this chapter may be used.
(e) The following apply only in the year in which a county
council first imposes a tax rate under this section.
(1) The county council shall, in the ordinance imposing the tax
rate, specify the tax rate for each of the following two (2)
years.
(2) The tax rate that must be imposed in the county from
October 1 of the year in which the tax rate is imposed through
September 30 of the following year is equal to the result of:
(A) the tax rate determined for the county under
IC 6-3.5-1.5-1(a) in the year in which the tax rate is
increased; multiplied by
(B) two (2).
(3) The tax rate that must be imposed in the county from
October 1 of the following year through September 30 of the
year after the following year is the tax rate determined for the
county under IC 6-3.5-1.5-1(b). The tax rate under this
subdivision continues in effect in later years unless the tax
rate is increased under this section.
(4) The levy limitations in IC 6-1.1-18.5-3(g),
IC 6-1.1-18.5-3(h), IC 12-19-7-4(b), IC 12-19-7.5-6(b), and
IC 12-29-2-2(c) apply to property taxes first due and payable
in the ensuing calendar year and to property taxes first due
and payable in the calendar year after the ensuing calendar
year.
(f) The following apply only in a year in which a county council
increases a tax rate under this section.
(1) The county council shall, in the ordinance increasing the
tax rate, specify the tax rate for the following year.
(2) The tax rate that must be imposed in the county from
October 1 of the year in which the tax rate is increased
through September 30 of the following year is equal to the
result of:
(A) the tax rate determined for the county under
IC 6-3.5-1.5-1(a) in that year; plus
(B) the tax rate currently in effect in the county under this
section.
The tax rate under this subdivision continues in effect in later
years unless the tax rate is increased under this section.
(3) The levy limitations in IC 6-1.1-18.5-3(g),
IC 6-1.1-18.5-3(h), IC 12-19-7-4(b), IC 12-19-7.5-6(b), and
IC 12-29-2-2(c) apply to property taxes first due and payable
in the ensuing calendar year.
(g) The department of local government finance shall determine
the following property tax replacement distribution amounts:
STEP ONE: Determine the sum of the amounts determined
under STEP ONE through STEP FOUR of IC 6-3.5-1.5-1(a)
for the county in the preceding year.
STEP TWO: For distribution to each civil taxing unit that in
the year had a maximum permissible property tax levy
limited under IC 6-1.1-18.5-3(g), determine the result of:
(1) the quotient of:
(A) the part of the amount determined under STEP ONE
of IC 6-3.5-1.5-1(a) in the preceding year that was
attributable to the civil taxing unit; divided by
(B) the STEP ONE amount; multiplied by
(2) the tax revenue received by the county treasurer under
this section.
STEP THREE: For distribution to the county for deposit in
the county family and children's fund, determine the result of:
(1) the quotient of:
(A) the amount determined under STEP TWO of
IC 6-3.5-1.5-1(a) in the preceding year; divided by
(B) the STEP ONE amount; multiplied by
(2) the tax revenue received by the county treasurer under
this section.
STEP FOUR: For distribution to the county for deposit in the
county children's psychiatric residential treatment services
fund, determine the result of:
(1) the quotient of:
(A) the amount determined under STEP THREE of
IC 6-3.5-1.5-1(a) in the preceding year; divided by
(B) the STEP ONE amount; multiplied by
(2) the tax revenue received by the county treasurer under
this section.
STEP FIVE: For distribution to the county for community
mental health center purposes, determine the result of:
(1) the quotient of:
(A) the amount determined under STEP FOUR of
IC 6-3.5-1.5-1(a) in the preceding year; divided by
(B) the STEP ONE amount; multiplied by
(2) the tax revenue received by the county treasurer under
this section.
Except as provided in subsection (m), the county treasurer shall
distribute the portion of the certified distribution that is
attributable to a tax rate under this section as specified in this
section. The county treasurer shall make the distributions under
this subsection at the same time that distributions are made to civil
taxing units under section 15 of this chapter.
(h) Notwithstanding sections 3.1 and 4 of this chapter, a county
council may not decrease or rescind a tax rate imposed under this
chapter.
(i) The tax rate under this section shall not be considered for
purposes of computing:
(1) the maximum income tax rate that may be imposed in a
county under section 2 of this chapter or any other provision
of this chapter; or
(2) the maximum permissible property tax levy under STEP
EIGHT of IC 6-1.1-18.5-3(b).
(j) The tax levy under this section shall not be considered for
purposes of computing the total county tax levy under
IC 6-1.1-21-2(g)(3), IC 6-1.1-21-2(g)(4), or IC 6-1.1-21-2(g)(5).
(k) A distribution under this section shall be treated as a part of
the receiving civil taxing unit's property tax levy for that year for
purposes of fixing the budget of the civil taxing unit and for
determining the distribution of taxes that are distributed on the
basis of property tax levies.
(l) If a county council imposes a tax rate under this section, the
portion of county adjusted gross income tax revenue dedicated to
property tax replacement credits under section 11 of this chapter
may not be decreased.
(m) In the year following the year in a which a county first
imposes a tax rate under this section, one-half (1/2) of the tax
revenue that is attributable to the tax rate under this section must
be deposited in the county stabilization fund established under
subsection (o).
(n) A pledge of county adjusted gross income taxes does not
apply to revenue attributable to a tax rate under this section.
(o) A county stabilization fund is established in each county that
imposes a tax rate under this section. The county stabilization fund
shall be administered by the county auditor. If for a year the
certified distributions attributable to a tax rate under this section
exceed the amount calculated under STEP ONE through STEP
FOUR of IC 6-3.5-1.5-1(a) that is used by the department of local
government finance and the department of state revenue to
determine the tax rate under this section, the excess shall be
deposited in the county stabilization fund. Money shall be
distributed from the county stabilization fund in a year by the
county auditor to political subdivisions entitled to a distribution of
tax revenue attributable to the tax rate under this section if:
(1) the certified distributions attributable to a tax rate under
this section are less than the amount calculated under STEP
ONE through STEP FOUR of IC 6-3.5-1.5-1(a) that is used by
the department of local government finance and the
department of state revenue to determine the tax rate under
this section for a year; or
(2) the certified distributions attributable to a tax rate under
this section in a year are less than the certified distributions
attributable to a tax rate under this section in the preceding
year.
However, subdivision (2) does not apply to the year following the
first year in which certified distributions of revenue attributable to
the tax rate under this section are distributed to the county.
(p) Notwithstanding any other provision, a tax rate imposed
under this section may not exceed one percent (1%).
(q) The department of local government finance and the
department of state revenue may take any actions necessary to
carry out the purposes of this section.
SOURCE: IC 6-3.5-1.1-25; (07)CC147804.67. -->
SECTION 67. IC 6-3.5-1.1-25 IS ADDED TO THE INDIANA
CODE AS A
NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]:
Sec. 25. (a) As used in this section,
"public safety" refers to the following:
(1) A police and law enforcement system to preserve public
peace and order.
(2) A firefighting and fire prevention system.
(3) Emergency ambulance services (as defined in
IC 16-18-2-107).
(4) Emergency medical services (as defined in
IC 16-18-2-110).
(5) Emergency action (as defined in IC 13-11-2-65).
(6) A probation department of a court.
(7) Confinement, supervision, services under a community
corrections program (as defined in IC 35-38-2.6-2), or other
correctional services for a person who has been:
(A) diverted before a final hearing or trial under an
agreement that is between the county prosecuting attorney
and the person or the person's custodian, guardian, or
parent and that provides for confinement, supervision,
community corrections services, or other correctional
services instead of a final action described in clause (B) or
(C);
(B) convicted of a crime; or
(C) adjudicated as a delinquent child or a child in need of
services.
(8) A juvenile detention facility under IC 31-31-8.
(9) A juvenile detention center under IC 31-31-9.
(10) A county jail.
(11) A communications system (as defined in IC 36-8-15-3) or
an enhanced emergency telephone system (as defined in
IC 36-8-16-2).
(12) Medical and health expenses for jail inmates and other
confined persons.
(13) Pension payments for any of the following:
(A) A member of the fire department (as defined in
IC 36-8-1-8) or any other employee of a fire department.
(B) A member of the police department (as defined in
IC 36-8-1-9), a police chief hired under a waiver under
IC 36-8-4-6.5, or any other employee hired by a police
department.
(C) A county sheriff or any other member of the office of
the county sheriff.
(D) Other personnel employed to provide a service
described in this section.
(b) If a county council has imposed a tax rate under section 24
of this chapter and has imposed a tax rate under section 26 of this
chapter, the county council may also adopt an ordinance to impose
an additional tax rate under this section to provide funding for
public safety.
(c) A tax rate under this section may not exceed the lesser of:
(A) twenty-five hundredths of one percent (0.25%); or
(B) the tax rate imposed under section 26 of this chapter.
(d) If a county council adopts an ordinance to impose a tax rate
under this section, the county auditor shall send a certified copy of
the ordinance to the department and the department of local
government finance by certified mail.
(e) A tax rate under this section is in addition to any other tax
rates imposed under this chapter and does not affect the purposes
for which other tax revenue under this chapter may be used.
(f) The county auditor shall distribute the portion of the
certified distribution that is attributable to a tax rate under this
section to the county and to each municipality in the county. The
amount that shall be distributed to the county or municipality is
equal to the result of:
(1) the portion of the certified distribution that is attributable
to a tax rate under this section; multiplied by
(2) a fraction equal to:
(A) the attributed allocation amount (as defined in
IC 6-3.5-1.1-15) of the county or municipality for the
calendar year; divided by
(B) the sum of the attributed allocation amounts of the
county and each municipality in the county for the
calendar year.
The county auditor shall make the distributions required by this
subsection not more than thirty (30) days after receiving the
portion of the certified distribution that is attributable to a tax rate
under this section. Tax revenue distributed to a county or
municipality under this subsection must be deposited into a
separate account or fund and may be appropriated by the county
or municipality only for public safety purposes.
(g) The department of local government finance may not
require a county or municipality receiving tax revenue under this
section to reduce the county's or municipality's property tax levy
for a particular year on account of the county's or municipality's
receipt of the tax revenue.
(h) The tax rate under this section and the tax revenue
attributable to the tax rate under this section shall not be
considered for purposes of computing:
(1) the maximum income tax rate that may be imposed in a
county under section 2 of this chapter or any other provision
of this chapter;
(2) the maximum permissible property tax levy under STEP
EIGHT of IC 6-1.1-18.5-3(b); or
(3) the total county tax levy under IC 6-1.1-21-2(g)(3),
IC 6-1.1-21-2(g)(4), or IC 6-1.1-21-2(g)(5).
(i) The tax rate under this section may be imposed or rescinded
at the same time and in the same manner that the county may
impose or increase a tax rate under section 24 of this chapter.
(j) The department of local government finance and the
department of state revenue may take any actions necessary to
carry out the purposes of this section.
SOURCE: IC 6-3.5-1.1-26; (07)CC147804.68. -->
SECTION 68. IC 6-3.5-1.1-26 IS ADDED TO THE INDIANA
CODE AS A
NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]:
Sec. 26. (a) A county council may
impose a tax rate under this section to provide property tax relief
to political subdivisions in the county. A county council is not
required to impose any other tax before imposing a tax rate under
this section.
(b) A tax rate under this section may be imposed in increments
of five hundredths of one percent (0.05%) determined by the
county council. A tax rate under this section may not exceed one
percent (1%).
(c) A tax rate under this section is in addition to any other tax
rates imposed under this chapter and does not affect the purposes
for which other tax revenue under this chapter may be used.
(d) If a county council adopts an ordinance to impose or
increase a tax rate under this section, the county auditor shall send
a certified copy of the ordinance to the department and the
department of local government finance by certified mail.
(e) A tax rate under this section may be imposed, increased,
decreased, or rescinded by a county council at the same time and
in the same manner that the county council may impose or increase
a tax rate under section 24 of this chapter.
(f) Tax revenue attributable to a tax rate under this section may
be used for any combination of the following purposes, as specified
by ordinance of the county council:
(1) The tax revenue may be used to provide local property tax
replacement credits at a uniform rate to all taxpayers in the
county. Any tax revenue that is attributable to the tax rate
under this section and that is used to provide local property
tax replacement credits under this subdivision shall be
distributed to civil taxing units and school corporations in the
county in the same manner that certified distributions are
allocated as property tax replacement credits under section 12
of this chapter. The department of local government finance
shall provide each county auditor with the amount of
property tax replacement credits that each civil taxing unit
and school corporation in the auditor's county is entitled to
receive under this subdivision. The county auditor shall then
certify to each civil taxing unit and school corporation the
amount of property tax replacement credits the civil taxing
unit or school corporation is entitled to receive under this
subdivision during that calendar year.
(2) The tax revenue may be used to uniformly increase the
homestead credit percentage in the county. The additional
homestead credits shall be treated for all purposes as
property tax levies. The additional homestead credits do not
reduce the basis for determining the state homestead credit
under IC 6-1.1-20.9. The additional homestead credits shall be
applied to the net property taxes due on the homestead after
the application of all other assessed value deductions or
property tax deductions and credits that apply to the amount
owed under IC 6-1.1. The department of local government
finance shall determine the additional homestead credit
percentage for a particular year based on the amount of tax
revenue that will be used under this subdivision to provide
additional homestead credits in that year.
(3) The tax revenue may be used to provide local property tax
replacement credits at a uniform rate for all qualified
residential property (as defined in IC 6-1.1-20.6-4) in the
county. Any tax revenue that is attributable to the tax rate
under this section and that is used to provide local property
tax replacement credits under this subdivision shall be
distributed to civil taxing units and school corporations in the
county in the same manner that certified distributions are
allocated as property tax replacement credits under section 12
of this chapter. The department of local government finance
shall provide each county auditor with the amount of
property tax replacement credits that each civil taxing unit
and school corporation in the auditor's county is entitled to
receive under this subdivision. The county auditor shall then
certify to each civil taxing unit and school corporation the
amount of property tax replacement credits the civil taxing
unit or school corporation is entitled to receive under this
subdivision during that calendar year.
(g) The tax rate under this section and the tax revenue
attributable to the tax rate under this section shall not be
considered for purposes of computing:
(1) the maximum income tax rate that may be imposed in a
county under section 2 of this chapter or any other provision
of this chapter;
(2) the maximum permissible property tax levy under STEP
EIGHT of IC 6-1.1-18.5-3(b); or
(3) the total county tax levy under IC 6-1.1-21-2(g)(3),
IC 6-1.1-21-2(g)(4), or IC 6-1.1-21-2(g)(5).
(h) Tax revenue under this section shall be treated as a part of
the receiving civil taxing unit's or school corporation's property
tax levy for that year for purposes of fixing the budget of the civil
taxing unit or school corporation and for determining the
distribution of taxes that are distributed on the basis of property
tax levies.
(i) The department of local government finance and the
department of state revenue may take any actions necessary to
carry out the purposes of this section.
SOURCE: IC 6-3.5-1.5; (07)CC147804.69. -->
SECTION 69. IC 6-3.5-1.5 IS ADDED TO THE INDIANA CODE
AS A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]:
Chapter 1.5. Calculation of Levy Freeze Amounts
Sec. 1. (a) The department of local government finance and the
department of state revenue shall, before July 1 of each year,
jointly calculate the county adjusted income tax rate or county
option income tax rate (as applicable) that must be imposed in a
county to raise income tax revenue in the following year equal to
the sum of the following STEPS:
STEP ONE: Determine the greater of zero (0) or the result of:
(1) the department of local government finance's estimate
of the sum of the maximum permissible ad valorem
property tax levies calculated under IC 6-1.1-18.5 for all
political subdivisions in the county for the ensuing
calendar year (before any adjustment under
IC 6-1.1-18.5-3(g) or IC 6-1.1-18.5-3(h) for the ensuing
calendar year); minus
(2) the sum of the maximum permissible ad valorem
property tax levies calculated under IC 6-1.1-18.5 for all
political subdivisions in the county for the current calendar
year.
In the case of a civil taxing unit that is located in more than
one (1) county, the department of local government finance
shall, for purposes of making the determination under this
subdivision, apportion the civil taxing unit's maximum
permissible ad valorem property tax levy among the counties
in which the civil taxing unit is located.
STEP TWO: Determine the greater of zero (0) or the result
of:
(1) the department of local government finance's estimate
of the family and children property tax levy that will be
imposed by the county under IC 12-19-7-4 for the ensuing
calendar year (before any adjustment under
IC 12-19-7-4(b) for the ensuing calendar year); minus
(2) the county's family and children property tax levy
imposed by the county under IC 12-19-7-4 for the current
calendar year.
STEP THREE: Determine the greater of zero (0) or the result
of:
(1) the department of local government finance's estimate
of the children's psychiatric residential treatment services
property tax levy that will be imposed by the county under
IC 12-19-7.5-6 for the ensuing calendar year (before any
adjustment under IC 12-19-7.5-6(b) for the ensuing
calendar year); minus
(2) the children's psychiatric residential treatment services
property tax imposed by the county under IC 12-19-7.5-6
for the current calendar year.
STEP FOUR: Determine the greater of zero (0) or the result
of:
(1) the department of local government finance's estimate
of the county's maximum community mental health centers
property tax levy under IC 12-29-2-2 for the ensuing
calendar year (before any adjustment under
IC 12-29-2-2(c) for the ensuing calendar year); minus
(2) the county's maximum community mental health
centers property tax levy under IC 12-29-2-2 for the
current calendar year.
(b) In the case of a county that wishes to impose a tax rate under
IC 6-3.5-1.1-24 or IC 6-3.5-6-30 (as applicable) for the first time,
the department of local government finance and the department of
state revenue shall jointly estimate the amount that will be
calculated under subsection (a) in the second year after the tax rate
is first imposed. The department of local government finance and
the department of state revenue shall calculate the tax rate under
IC 6-3.5-1.1-24 or IC 6-3.5-6-30 (as applicable) that must be
imposed in the county in the second year after the tax rate is first
imposed to raise income tax revenue equal to the estimate under
this subsection.
(c) The department and the department of local government
finance shall make the calculations under subsections (a) and (b)
based on the best information available at the time the calculation
is made.
(d) For purposes of calculating a tax rate under this section, the
department of local government shall round up to the nearest
one-tenth of one percent (0.1%).
Sec. 2. The department of local government finance shall, before
July 1 of each year, certify the amount calculated for a county
under section 1 of this chapter to the county auditor.
Sec. 3. The department of local government finance and the
department of state revenue may take any actions necessary to
carry out the purposes of this chapter.
SOURCE: IC 6-3.5-6-8; (07)CC147804.70. -->
SECTION 70. IC 6-3.5-6-8 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 8. (a) The county
income tax council of any county in which the county adjusted gross
income tax will not be in effect on
July October 1 of a year under an
ordinance adopted during a previous calendar year may impose the
county option income tax on the adjusted gross income of county
taxpayers of its county effective
July October 1 of that same year.
(b)
Except as provided in sections 30, 31, and 32 of this chapter,
the county option income tax may initially be imposed at a rate of
two-tenths of one percent (0.2%) on the resident county taxpayers of
the county and at a rate of five hundredths of one percent (0.05%) for
all other county taxpayers.
(c) To impose the county option income tax, a county income tax
council must, after
January 1 March 31 but before
April August 1 of
the year, pass an ordinance. The ordinance must substantially state the
following:
"The _____________ County Income Tax Council imposes the
county option income tax on the county taxpayers of
_____________ County. The county option income tax is
imposed at a rate of two-tenths of one percent (0.2%) on the
resident county taxpayers of the county and at a rate of five
hundredths of one percent (0.05%) on all other county taxpayers.
This tax takes effect
July October 1 of this year.".
(d)
Except as provided in sections 30, 31, and 32 of this chapter,
if the county option income tax is imposed on the county taxpayers of
a county, then the county option income tax rate that is in effect for
resident county taxpayers of that county increases by one-tenth of one
percent (0.1%) on each succeeding July October 1 until the rate equals
six-tenths of one percent (0.6%).
(e) The county option income tax rate in effect for the county
taxpayers of a county who are not resident county taxpayers of that
county is at all times one-fourth (1/4) of the tax rate imposed upon
resident county taxpayers.
(f) The auditor of a county shall record all votes taken on ordinances
presented for a vote under this section and immediately send a certified
copy of the results to the department by certified mail.
SOURCE: IC 6-3.5-6-9; (07)CC147804.71. -->
SECTION 71. IC 6-3.5-6-9 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 9. (a) If on January
1 March 31 of a calendar year the county option income tax rate in
effect for resident county taxpayers equals six tenths of one percent
(0.6%), then excluding a tax rate imposed under section 30, 31, or
32 of this chapter, the county income tax council of that county may
after January 1 March 31 and before April August 1 of that year pass
an ordinance to increase its tax rate for resident county taxpayers. If a
county income tax council passes an ordinance under this section, its
county option income tax rate for resident county taxpayers increases
by one tenth of one percent (0.1%) each succeeding July October 1
until its rate reaches a maximum of one percent (1%), excluding a tax
rate imposed under section 30, 31, or 32 of this chapter.
(b) The auditor of the county shall record any vote taken on an
ordinance proposed under the authority of this section and immediately
send a certified copy of the results to the department by certified mail.
SOURCE: IC 6-3.5-6-10; (07)CC147804.72. -->
SECTION 72. IC 6-3.5-6-10 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 10. If during a
particular calendar year the county council of a county adopts an
ordinance to impose the county adjusted gross income tax in its county
on July October 1 of that year and the county option income tax
council of the county adopts an ordinance to impose the county option
income tax in the county on July October 1 of that year, the county
option income tax takes effect in that county and the county adjusted
gross income tax shall not take effect in that county.
SOURCE: IC 6-3.5-6-11; (07)CC147804.73. -->
SECTION 73. IC 6-3.5-6-11 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 11. (a) This
section does not apply to a tax rate imposed under section 30 of this
chapter.
(a) (b) The county income tax council of any county may adopt an
ordinance to permanently freeze the county option income tax rates at
the rate in effect for its county on January 1 March 31 of a year.
(b) (c) To freeze the county option income tax rates, a county
income tax council must, after January 1 March 31 but before April
August 1 of a year, adopt an ordinance. The ordinance must
substantially state the following:
"The __________ County Income Tax Council permanently
freezes the county option income tax rates at the rate in effect on
January 1 March 31 of the current year.".
(c) (d) An ordinance adopted under the authority of this section
remains in effect until rescinded. The county income tax council may
rescind such an ordinance after January 1 March 31 but before April
August 1 of any calendar year. Such an ordinance shall take effect July
October 1 of that same calendar year.
(d) (e) If a county income tax council rescinds an ordinance as
adopted under this section, the county option income tax rate shall
automatically increase by one-tenth of one percent (0.01%) until:
(1) the tax rate is again frozen under another ordinance adopted
under this section; or
(2) the tax rate equals six tenths of one percent (0.6%) (if the
frozen tax rate equaled an amount less than six tenths of one
percent (0.6%)) or one percent (1%) (if the frozen tax rate equaled
an amount in excess of six tenths of one percent (0.6%)).
(e) (f) The county auditor shall record any vote taken on an
ordinance proposed under the authority of this section and immediately
send a certified copy of the results to the department by certified mail.
SOURCE: IC 6-3.5-6-12; (07)CC147804.74. -->
SECTION 74. IC 6-3.5-6-12 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 12. (a) The county
option income tax imposed by a county income tax council under this
chapter remains in effect until rescinded.
(b) Subject to subsection (c), the county income tax council of a
county may rescind the county option income tax by passing an
ordinance to rescind the tax after January 1 March 31 but before April
August 1 of a year.
(c) A county income tax council may not rescind the county option
income tax or take any action that would result in a civil taxing unit in
the county having a smaller distributive share than the distributive
share to which it was entitled when it pledged county option income
tax, if the civil taxing unit or any commission, board, department, or
authority that is authorized by statute to pledge county option income
tax, has pledged county option income tax for any purpose permitted
by IC 5-1-14 or any other statute.
(d) The auditor of a county shall record all votes taken on a
proposed ordinance presented for a vote under the authority of this
section and immediately send a certified copy of the results to the
department by certified mail.
SOURCE: IC 6-3.5-6-12.5; (07)CC147804.75. -->
SECTION 75. IC 6-3.5-6-12.5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 12.5. (a) The
county income tax council may adopt an ordinance to decrease the
county option income tax rate in effect.
(b) To decrease the county option income tax rate, the county
income tax council must adopt an ordinance after
January 1 March 31
but before
April August 1 of a year. The ordinance must substantially
state the following:
"The ______________ County Income Tax Council decreases the
county option income tax rate from __________ percent (___ %)
to __________ percent (___ %). This ordinance takes effect
July
October 1 of this year.".
(c) A county income tax council may not decrease the county option
income tax if the county or any commission, board, department, or
authority that is authorized by statute to pledge the county option
income tax has pledged the county option income tax for any purpose
permitted by IC 5-1-14 or any other statute.
(d) An ordinance adopted under this subsection takes effect July
October 1 of the year in which the ordinance is adopted.
(e) The county auditor shall record the votes taken on an ordinance
under this subsection and shall send a certified copy of the ordinance
to the department by certified mail not more than thirty (30) days after
the ordinance is adopted.
(f) Notwithstanding IC 6-3.5-7, a county income tax council that
decreases the county option income tax in a year may not in the same
year adopt or increase the county economic development income tax
under IC 6-3.5-7.
SOURCE: IC 6-3.5-6-13; (07)CC147804.76. -->
SECTION 76. IC 6-3.5-6-13 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 13. (a) A county
income tax council of a county in which the county option income tax
is in effect may adopt an ordinance to increase the percentage credit
allowed for homesteads in its county under IC 6-1.1-20.9-2.
(b) A county income tax council may not increase the percentage
credit allowed for homesteads by an amount that exceeds the amount
determined in the last STEP of the following formula:
STEP ONE: Determine the amount of the sum of all property tax
levies for all taxing units in a county which are to be paid in the
county in 2003 as reflected by the auditor's abstract for the 2002
assessment year, adjusted, however, for any postabstract
adjustments which change the amount of the levies.
STEP TWO: Determine the amount of the county's estimated
property tax replacement under IC 6-1.1-21-3(a) for property
taxes first due and payable in 2003.
STEP THREE: Subtract the STEP TWO amount from the STEP
ONE amount.
STEP FOUR: Determine the amount of the county's total county
levy (as defined in IC 6-1.1-21-2(g)) for property taxes first due
and payable in 2003.
STEP FIVE: Subtract the STEP FOUR amount from the STEP
ONE amount.
STEP SIX: Subtract the STEP FIVE result from the STEP THREE
result.
STEP SEVEN: Divide the STEP THREE result by the STEP SIX
result.
STEP EIGHT: Multiply the STEP SEVEN result by
eight-hundredths (0.08).
STEP NINE: Round the STEP EIGHT product to the nearest
one-thousandth (0.001) and express the result as a percentage.
(c) The increase of the homestead credit percentage must be
uniform for all homesteads in a county.
(d) In the ordinance that increases the homestead credit percentage,
a county income tax council may provide for a series of increases or
decreases to take place for each of a group of succeeding calendar
years.
(e) An ordinance may be adopted under this section after January 1
March 31 but before June August 1 of a calendar year.
(f) An ordinance adopted under this section takes effect on January
1 of the next succeeding calendar year.
(g) Any ordinance adopted under this section for a county is
repealed for a year if on January 1 of that year the county option
income tax is not in effect.
SOURCE: IC 6-3.5-6-14; (07)CC147804.77. -->
SECTION 77. IC 6-3.5-6-14 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 14. If for any
taxable year a county taxpayer is subject to different tax rates for the
county option income tax imposed by a particular county, the taxpayer's
county option income tax rate for that county and that taxable year is
the rate determined in the last STEP of the following STEPS:
STEP ONE: Multiply the number of months in the taxpayer's
taxable year that precede July October 1 by the rate in effect
before the rate change.
STEP TWO: Multiply the number of months in the taxpayer's
taxable year that follow June September 30 by the rate in effect
after the rate change.
STEP THREE: Divide the sum of the amounts determined under
STEPS ONE and TWO by twelve (12).
SOURCE: IC 6-3.5-6-17; (07)CC147804.78. -->
SECTION 78. IC 6-3.5-6-17, AS AMENDED BY P.L.207-2005,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 17. (a) Revenue derived from the imposition
of the county option income tax shall, in the manner prescribed by this
section, be distributed to the county that imposed it. The amount that
is to be distributed to a county during an ensuing calendar year equals
the amount of county option income tax revenue that the department,
after reviewing the recommendation of the budget agency, determines
has been:
(1) received from that county for a taxable year ending in a
calendar year preceding the calendar year in which the
determination is made; and
(2) reported on an annual return or amended return processed by
the department in the state fiscal year ending before July 1 of the
calendar year in which the determination is made;
as adjusted (as determined after review of the recommendation of the
budget agency) for refunds of county option income tax made in the
state fiscal year.
(b) Before August 2 of each calendar year, the department, after
reviewing the recommendation of the budget agency, shall certify to the
county auditor of each adopting county the amount determined under
subsection (a) plus the amount of interest in the county's account that
has accrued and has not been included in a certification made in a
preceding year. The amount certified is the county's "certified
distribution" for the immediately succeeding calendar year. The amount
certified shall be adjusted, as necessary, under subsections (c), (d),
and
(e),
and (f). The department shall provide with the certification an
informative summary of the calculations used to determine the certified
distribution.
The department shall also certify information
concerning the part of the certified distribution that is attributable
to a tax rate under section 30, 31, or 32 of this chapter. This
information must be certified to the county auditor and to the
department of local government finance not later than September
1 of each calendar year. The part of the certified distribution that
is attributable to a tax rate under section 30, 31, or 32 of this
chapter may be used only as specified in those provisions.
(c) The department shall certify an amount less than the amount
determined under subsection (b) if the department, after reviewing the
recommendation of the budget agency, determines that the reduced
distribution is necessary to offset overpayments made in a calendar
year before the calendar year of the distribution. The department, after
reviewing the recommendation of the budget agency, may reduce the
amount of the certified distribution over several calendar years so that
any overpayments are offset over several years rather than in one (1)
lump sum.
(d) The department, after reviewing the recommendation of the
budget agency, shall adjust the certified distribution of a county to
correct for any clerical or mathematical errors made in any previous
certification under this section. The department, after reviewing the
recommendation of the budget agency, may reduce the amount of the
certified distribution over several calendar years so that any adjustment
under this subsection is offset over several years rather than in one (1)
lump sum.
(e) This subsection applies to a county that:
(1) initially imposed the county option income tax; or
(2) increases the county option income tax rate;
under this chapter in the same calendar year in which the department
makes a certification under this section. The department, after
reviewing the recommendation of the budget agency, shall adjust the
certified distribution of a county to provide for a distribution in the
immediately following calendar year and in each calendar year
thereafter. The department shall provide for a full transition to
certification of distributions as provided in subsection (a)(1) through
(a)(2) in the manner provided in subsection (c).
(f) This subsection applies in the year a county initially imposes
a tax rate under section 30 of this chapter. Notwithstanding any
other provision, the department shall adjust the part of the
county's certified distribution that is attributable to the tax rate
under section 30 of this chapter to provide for a distribution in the
immediately following calendar year equal to the result of:
(1) the sum of the amounts determined under STEP ONE
through STEP FOUR of IC 6-3.5-1.5-1(a) in the year in which
the county initially imposes a tax rate under section 30 of this
chapter; multiplied by
(2) the following:
(A) In a county containing a consolidated city, one and
five-tenths (1.5).
(B) In a county other than a county containing a
consolidated city, two (2).
(f) (g) One-twelfth (1/12) of each adopting county's certified
distribution for a calendar year shall be distributed from its account
established under section 16 of this chapter to the appropriate county
treasurer on the first day of each month of that calendar year.
(g) (h) Upon receipt, each monthly payment of a county's certified
distribution shall be allocated among, distributed to, and used by the
civil taxing units of the county as provided in sections 18 and 19 of this
chapter.
(h) (i) All distributions from an account established under section
16 of this chapter shall be made by warrants issued by the auditor of
state to the treasurer of state ordering the appropriate payments.
SOURCE: IC 6-3.5-6-18; (07)CC147804.79. -->
SECTION 79. IC 6-3.5-6-18, AS AMENDED BY P.L.162-2006,
SECTION 31, AND AS AMENDED BY P.L.184-2006, SECTION 6,
IS CORRECTED AND AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 18. (a) The revenue a county
auditor receives under this chapter shall be used to:
(1) replace the amount, if any, of property tax revenue lost due to
the allowance of an increased homestead credit within the county;
(2) fund the operation of a public communications system and
computer facilities district as provided in an election, if any, made
by the county fiscal body under IC 36-8-15-19(b);
(3) fund the operation of a public transportation corporation as
provided in an election, if any, made by the county fiscal body
under IC 36-9-4-42;
(4) make payments permitted under IC 36-7-15.1-17.5;
(5) make payments permitted under subsection (i);
(6) make distributions of distributive shares to the civil taxing
units of a county; and
(7) make the distributions permitted under
section sections 27, 28,
and 29,
30, 31, 32, and 33 of this chapter.
(b) The county auditor shall retain from the payments of the county's
certified distribution, an amount equal to the revenue lost, if any, due
to the increase of the homestead credit within the county. This money
shall be distributed to the civil taxing units and school corporations of
the county as though they were property tax collections and in such a
manner that no civil taxing unit or school corporation shall suffer a net
revenue loss due to the allowance of an increased homestead credit.
(c) The county auditor shall retain:
(1) the amount, if any, specified by the county fiscal body for a
particular calendar year under subsection (i), IC 36-7-15.1-17.5,
IC 36-8-15-19(b), and IC 36-9-4-42 from the county's certified
distribution for that same calendar year; and
(2) the amount of an additional tax rate imposed under section
27,
28, or 29,
30, 31, 32, or 33 of this chapter.
The county auditor shall distribute amounts retained under this
subsection to the county.
(d) All certified distribution revenues that are not retained and
distributed under subsections (b) and (c) shall be distributed to the civil
taxing units of the county as distributive shares.
(e) The amount of distributive shares that each civil taxing unit in
a county is entitled to receive during a month equals the product of the
following:
(1) The amount of revenue that is to be distributed as distributive
shares during that month; multiplied by
(2) A fraction. The numerator of the fraction equals the allocation
amount for the civil taxing unit for the calendar year in which the
month falls. The denominator of the fraction equals the sum of the
allocation amounts of all the civil taxing units of the county for
the calendar year in which the month falls.
(f) The department of local government finance shall provide each
county auditor with the fractional amount of distributive shares that
each civil taxing unit in the auditor's county is entitled to receive
monthly under this section.
(g) Notwithstanding subsection (e), if a civil taxing unit of an
adopting county does not impose a property tax levy that is first due
and payable in a calendar year in which distributive shares are being
distributed under this section, that civil taxing unit is entitled to receive
a part of the revenue to be distributed as distributive shares under this
section within the county. The fractional amount such a civil taxing
unit is entitled to receive each month during that calendar year equals
the product of the following:
(1) The amount to be distributed as distributive shares during that
month; multiplied by
(2) A fraction. The numerator of the fraction equals the budget of
that civil taxing unit for that calendar year. The denominator of
the fraction equals the aggregate budgets of all civil taxing units
of that county for that calendar year.
(h) If for a calendar year a civil taxing unit is allocated a part of a
county's distributive shares by subsection (g), then the formula used in
subsection (e) to determine all other civil taxing units' distributive
shares shall be changed each month for that same year by reducing the
amount to be distributed as distributive shares under subsection (e) by
the amount of distributive shares allocated under subsection (g) for that
same month. The department of local government finance shall make
any adjustments required by this subsection and provide them to the
appropriate county auditors.
(i) Notwithstanding any other law, a county fiscal body may pledge
revenues received under this chapter (other than revenues
attributable to a tax rate imposed under section 30, 31, or 32 of this
chapter) to the payment of bonds or lease rentals to finance a qualified
economic development tax project under IC 36-7-27 in that county or
in any other county if the county fiscal body determines that the project
will promote significant opportunities for the gainful employment or
retention of employment of the county's residents.
SOURCE: IC 6-3.5-6-28; (07)CC147804.80. -->
SECTION 80. IC 6-3.5-6-28, AS ADDED BY P.L.214-2005,
SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2007 (RETROACTIVE)]: Sec. 28. (a) This section
applies only to Howard County.
(b) Maintaining low property tax rates is essential to economic
development, and the use of county option income tax revenues as
provided in this
chapter section and as needed in the county to fund the
operation and maintenance of a jail and juvenile detention center,
rather than the use of property taxes, promotes that purpose.
(c) In addition to the rates permitted by sections 8 and 9 of this
chapter, the county fiscal body may impose the a county option income
tax at a rate of that does not exceed twenty-five hundredths percent
(0.25%) on the adjusted gross income of resident county taxpayers. if
The tax rate may be adopted in any increment of one hundredth
percent (0.01%). Before the county fiscal body makes may adopt a
tax rate under this section, the county fiscal body must make the
finding and determination set forth in subsection (d). Section 8(e) of
this chapter applies to the application of the additional tax rate to
nonresident taxpayers.
(d) In order to impose the county option income tax as provided in
this section, the county fiscal body must adopt an ordinance:
(1) finding and determining that revenues from the county option
income tax are needed in the county to fund the operation and
maintenance of a jail, a juvenile detention center, or both; and
(2) agreeing to freeze the part of any property tax levy imposed in
the county for the operation of the jail or juvenile detention
center, or both, covered by the ordinance at the rate imposed in
the year preceding the year in which a full year of additional
county option income tax is certified for distribution to the county
under this section for the term in which an ordinance is in effect
under this section.
(e) If the county fiscal body makes a determination under subsection
(d), the county fiscal body may adopt a tax rate under subsection (c).
Subject to the limitations in subsection (c), the county fiscal body may
amend an ordinance adopted under this section to increase, decrease,
or rescind the additional tax rate imposed under this section. As soon
as practicable after the adoption of an ordinance under this section, the
county fiscal body shall send a certified copy of the ordinance to the
county auditor, the department of local government finance, and the
department of state revenue. An ordinance adopted under this section
before April 1 in a year applies to the imposition of county income
taxes after June 30 in that year. An ordinance adopted under this
section after March 31 of a year initially applies to the imposition of
county option income taxes after June 30 of the immediately following
year.
(f) The county treasurer shall establish a county jail revenue fund to
be used only for the purposes described in this section. County option
income tax revenues derived from the tax rate imposed under this
section shall be deposited in the county jail revenue fund before
making a certified distribution under section 18 of this chapter.
(g) County option income tax revenues derived from the tax rate
imposed under this section:
(1) may only be used for the purposes described in this section;
and
(2) 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.
(h) The department of local government finance shall enforce an
agreement under subsection (d)(2).
(i) The department, after reviewing the recommendation of the
budget agency, shall adjust the certified distribution of a county to
provide for an increased distribution of taxes in the immediately
following calendar year after the county adopts an increased tax rate
under this section and in each calendar year thereafter. The department
shall provide for a full transition to certification of distributions as
provided in section 17(a)(1) through 17(a)(2) of this chapter in the
manner provided in section 17(c) of this chapter.
(j) The department shall separately designate a tax rate imposed
under this section in any tax form as the Howard County jail
operating and maintenance income tax.
SOURCE: IC 6-3.5-6-29; (07)CC147804.81. -->
SECTION 81. IC 6-3.5-6-29, AS ADDED BY P.L.162-2006,
SECTION 32, AND AS ADDED BY P.L.184-2006, SECTION 7, IS
CORRECTED AND AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 29. (a) This section applies only
to Scott County. Scott County is a county in which:
(1) maintaining low property tax rates is essential to economic
development; and
(2) the use of additional county option income tax revenues as
provided in this section, rather than the use of property taxes, to
fund:
(A) the financing, construction, acquisition, improvement,
renovation, equipping, operation, or maintenance of jail
facilities; and
(B) the repayment of bonds issued or leases entered into for
the purposes described in clause (A), except operation or
maintenance;
promotes the purpose of maintaining low property tax rates.
(b) The county fiscal body may impose the county option income tax
on the adjusted gross income of resident county taxpayers at a rate, in
addition to the rates permitted by sections 8 and 9 of this chapter, not
to exceed twenty-five hundredths percent (0.25%). Section 8(e) of this
chapter applies to the application of the additional rate to nonresident
taxpayers.
(c) To impose the county option income tax as provided in this
section, the county fiscal body must adopt an ordinance finding and
determining that additional revenues from the county option income tax
are needed in the county to fund:
(1) the financing, construction, acquisition, improvement,
renovation, equipping, operation, or maintenance of jail facilities;
and
(2) the repayment of bonds issued or leases entered into for the
purposes described in subdivision (1), except operation or
maintenance.
(d) If the county fiscal body makes a determination under subsection
(c), the county fiscal body may adopt an additional tax rate under
subsection (b). Subject to the limitations in subsection (b), the county
fiscal body may amend an ordinance adopted under this section to
increase, decrease, or rescind the additional tax rate imposed under this
section. As soon as practicable after the adoption of an ordinance under
this section, the county fiscal body shall send a certified copy of the
ordinance to the county auditor, the department of local government
finance, and the department. An ordinance adopted under this section
before June 1, 2006, or April August 1 in a subsequent year applies to
the imposition of county income taxes after June 30 (in the case of an
ordinance adopted before June 1, 2006) or September 30 (in the
case of an ordinance adopted in 2007 or thereafter) in that year. An
ordinance adopted under this section after May 31, 2006, and or March
July 31 of a subsequent year initially applies to the imposition of
county option income taxes after June 30 (in the case of an ordinance
adopted before June 1, 2006) or September 30 (in the case of an
ordinance adopted in 2007 or thereafter) of the immediately
following year.
(e) If the county imposes an additional tax rate under this section,
the county treasurer shall establish a county jail revenue fund to be
used only for the purposes described in this section. County option
income tax revenues derived from the tax rate imposed under this
section shall be deposited in the county jail revenue fund before
making a certified distribution under section 18 of this chapter.
(f) County option income tax revenues derived from an additional
tax rate imposed under this section:
(1) may be used only for the purposes described in this section;
(2) 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; and
(3) may be pledged for the repayment of bonds issued or leases
entered into to fund the purposes described in subsection (c)(1),
except operation or maintenance.
(g) If the county imposes an additional tax rate under this section,
the department, after reviewing the recommendation of the budget
agency, shall adjust the certified distribution of the county to provide
for an increased distribution of taxes in the immediately following
calendar year after the county adopts the increased tax rate and in each
calendar year thereafter. The department shall provide for a full
transition to certification of distributions as provided in section
17(a)(1) through 17(a)(2) of this chapter in the manner provided in
section 17(c) of this chapter.
SOURCE: IC 6-3.5-6-26; (07)CC147804.82. -->
SECTION 82. IC 6-3.5-6-26 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 26. (a) A pledge of
county option income tax revenues under this chapter (other than
revenues attributable to a tax rate imposed under section 30, 31, or
32 of this chapter) is enforceable in accordance with IC 5-1-14.
(b) With respect to obligations for which a pledge has been made
under this chapter, the general assembly covenants with the county and
the purchasers or owners of those obligations that this chapter will not
be repealed or amended in any manner that will adversely affect the tax
collected under this chapter as long as the principal of or interest on
those obligations is unpaid.
SOURCE: IC 6-3.5-6-30; (07)CC147804.83. -->
SECTION 83. IC 6-3.5-6-30 IS ADDED TO THE INDIANA CODE
AS A
NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]:
Sec. 30. (a) In a county in which the county
option income tax is in effect, the county income tax council may,
before August 1 of a year, adopt an ordinance to impose or
increase (as applicable) a tax rate under this section.
(b) In a county in which neither the county option adjusted
gross income tax nor the county option income tax is in effect, the
county income tax council may, before August 1 of a year, adopt an
ordinance to impose a tax rate under this section.
(c) An ordinance adopted under this section takes effect October
1 of the year in which the ordinance is adopted. If a county income
tax council adopts an ordinance to impose or increase a tax rate
under this section, the county auditor shall send a certified copy of
the ordinance to the department and the department of local
government finance by certified mail.
(d) A tax rate under this section is in addition to any other tax
rates imposed under this chapter and does not affect the purposes
for which other tax revenue under this chapter may be used.
(e) The following apply only in the year in which a county
income tax council first imposes a tax rate under this section.
(1) The county income tax council shall, in the ordinance
imposing the tax rate, specify the tax rate for each of the
following two (2) years.
(2) The tax rate that must be imposed in the county from
October 1 of the year in which the tax rate is imposed through
September 30 of the following year is equal to the result of:
(A) the tax rate determined for the county under
IC 6-3.5-1.5-1(a) in that year; multiplied by
(B) the following:
(i) In a county containing a consolidated city, one and
five-tenths (1.5).
(ii) In a county other than a county containing a
consolidated city, two (2).
(3) The tax rate that must be imposed in the county from
October 1 of the following year through September 30 of the
year after the following year is the tax rate determined for the
county under IC 6-3.5-1.5-1(b). The tax rate under this
subdivision continues in effect in later years unless the tax
rate is increased under this section.
(4) The levy limitations in IC 6-1.1-18.5-3(g),
IC 6-1.1-18.5-3(h), IC 12-19-7-4(b), IC 12-19-7.5-6(b), and
IC 12-29-2-2(c) apply to property taxes first due and payable
in the ensuing calendar year and to property taxes first due
and payable in the calendar year after the ensuing calendar
year.
(f) The following apply only in a year in which a county income
tax council increases a tax rate under this section.
(1) The county income tax council shall, in the ordinance
increasing the tax rate, specify the tax rate for the following
year.
(2) The tax rate that must be imposed in the county from
October 1 of the year in which the tax rate is increased
through September 30 of the following year is equal to the
result of:
(A) the tax rate determined for the county under
IC 6-3.5-1.5-1(a) in the year the tax rate is increased; plus
(B) the tax rate currently in effect in the county under this
section.
The tax rate under this subdivision continues in effect in later
years unless the tax rate is increased under this section.
(3) The levy limitations in IC 6-1.1-18.5-3(g),
IC 6-1.1-18.5-3(h), IC 12-19-7-4(b), IC 12-19-7.5-6(b), and
IC 12-29-2-2(c) apply to property taxes first due and payable
in the ensuing calendar year.
(g) The department of local government finance shall determine
the following property tax replacement distribution amounts:
STEP ONE: Determine the sum of the amounts determined
under STEP ONE through STEP FOUR of IC 6-3.5-1.5-1(a)
for the county in the preceding year.
STEP TWO: For distribution to each civil taxing unit that in
the year had a maximum permissible property tax levy
limited under IC 6-1.1-18.5-3(g), determine the result of:
(1) the quotient of:
(A) the part of the amount determined under STEP ONE
of IC 6-3.5-1.5-1(a) in the preceding year that was
attributable to the civil taxing unit; divided by
(B) the STEP ONE amount; multiplied by
(2) the tax revenue received by the county treasurer under
this section.
STEP THREE: For distribution to the county for deposit in
the county family and children's fund, determine the result of:
(1) the quotient of:
(A) the amount determined under STEP TWO of
IC 6-3.5-1.5-1(a) in the preceding year; divided by
(B) the STEP ONE amount; multiplied by
(2) the tax revenue received by the county treasurer under
this section.
STEP FOUR: For distribution to the county for deposit in the
county children's psychiatric residential treatment services
fund, determine the result of:
(1) the quotient of:
(A) the amount determined under STEP THREE of
IC 6-3.5-1.5-1(a) in the preceding year; divided by
(B) the STEP ONE amount; multiplied by
(2) the tax revenue received by the county treasurer under
this section.
STEP FIVE: For distribution to the county for community
mental health center purposes, determine the result of:
(1) the quotient of:
(A) the amount determined under STEP FOUR of
IC 6-3.5-1.5-1(a) in the preceding year; divided by
(B) the STEP ONE amount; multiplied by
(2) the tax revenue received by the county treasurer under
this section.
Except as provided in subsection (m), the county treasurer shall
distribute the portion of the certified distribution that is
attributable to a tax rate under this section as specified in this
section. The county treasurer shall make the distributions under
this subsection at the same time that distributions are made to civil
taxing units under section 18 of this chapter.
(h) Notwithstanding sections 12 and 12.5 of this chapter, a
county income tax council may not decrease or rescind a tax rate
imposed under this chapter.
(i) The tax rate under this section shall not be considered for
purposes of computing:
(1) the maximum income tax rate that may be imposed in a
county under section 8 or 9 of this chapter or any other
provision of this chapter; or
(2) the maximum permissible property tax levy under STEP
EIGHT of IC 6-1.1-18.5-3(b).
(j) The tax levy under this section shall not be considered for
purposes of computing the total county tax levy under
IC 6-1.1-21-2(g)(3), IC 6-1.1-21-2(g)(4), or IC 6-1.1-21-2(g)(5).
(k) A distribution under this section shall be treated as a part of
the receiving civil taxing unit's property tax levy for that year for
purposes of fixing its budget and for determining the distribution
of taxes that are distributed on the basis of property tax levies.
(l) If a county income tax council imposes a tax rate under this
section, the county option income tax rate dedicated to locally
funded homestead credits in the county may not be decreased.
(m) In the year following the year in which a county first
imposes a tax rate under this section:
(1) one-third (1/3) of the tax revenue that is attributable to the
tax rate under this section must be deposited in the county
stabilization fund established under subsection (o), in the case
of a county containing a consolidated city; and
(2) one-half (1/2) of the tax revenue that is attributable to the
tax rate under this section must be deposited in the county
stabilization fund established under subsection (o), in the case
of a county not containing a consolidated city.
(n) A pledge of county option income taxes does not apply to
revenue attributable to a tax rate under this section.
(o) A county stabilization fund is established in each county that
imposes a tax rate under this section. The county stabilization fund
shall be administered by the county auditor. If for a year the
certified distributions attributable to a tax rate under this section
exceed the amount calculated under STEP ONE through STEP
FOUR of IC 6-3.5-1.5-1(a) that is used by the department of local
government finance and the department of state revenue to
determine the tax rate under this section, the excess shall be
deposited in the county stabilization fund. Money shall be
distributed from the county stabilization fund in a year by the
county auditor to political subdivisions entitled to a distribution of
tax revenue attributable to the tax rate under this section if:
(1) the certified distributions attributable to a tax rate under
this section are less than the amount calculated under STEP
ONE through STEP FOUR of IC 6-3.5-1.5-1(a) that is used by
the department of local government finance and the
department of state revenue to determine the tax rate under
this section for a year; or
(2) the certified distributions attributable to a tax rate under
this section in a year are less than the certified distributions
attributable to a tax rate under this section in the preceding
year.
However, subdivision (2) does not apply to the year following the
first year in which certified distributions of revenue attributable to
the tax rate under this section are distributed to the county.
(p) Notwithstanding any other provision, a tax rate imposed
under this section may not exceed one percent (1%).
(q) The department of local government finance and the
department of state revenue may take any actions necessary to
carry out the purposes of this section.
(r) Notwithstanding any other provision, in Lake County the
county council (and not the county income tax council) is the entity
authorized to take actions concerning the additional tax rate under
this section.
SOURCE: IC 6-3.5-6-31; (07)CC147804.84. -->
SECTION 84. IC 6-3.5-6-31 IS ADDED TO THE INDIANA CODE
AS A
NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]:
Sec. 31. (a) As used in this section, "public
safety" refers to the following:
(1) A police and law enforcement system to preserve public
peace and order.
(2) A firefighting and fire prevention system.
(3) Emergency ambulance services (as defined in
IC 16-18-2-107).
(4) Emergency medical services (as defined in
IC 16-18-2-110).
(5) Emergency action (as defined in IC 13-11-2-65).
(6) A probation department of a court.
(7) Confinement, supervision, services under a community
corrections program (as defined in IC 35-38-2.6-2), or other
correctional services for a person who has been:
(A) diverted before a final hearing or trial under an
agreement that is between the county prosecuting attorney
and the person or the person's custodian, guardian, or
parent and that provides for confinement, supervision,
community corrections services, or other correctional
services instead of a final action described in clause (B) or
(C);
(B) convicted of a crime; or
(C) adjudicated as a delinquent child or a child in need of
services.
(8) A juvenile detention facility under IC 31-31-8.
(9) A juvenile detention center under IC 31-31-9.
(10) A county jail.
(11) A communications system (as defined in IC 36-8-15-3) or
an enhanced emergency telephone system (as defined in
IC 36-8-16-2).
(12) Medical and health expenses for jail inmates and other
confined persons.
(13) Pension payments for any of the following:
(A) A member of the fire department (as defined in
IC 36-8-1-8) or any other employee of a fire department.
(B) A member of the police department (as defined in
IC 36-8-1-9), a police chief hired under a waiver under
IC 36-8-4-6.5, or any other employee hired by a police
department.
(C) A county sheriff or any other member of the office of
the county sheriff.
(D) Other personnel employed to provide a service
described in this section.
(b) The county income tax council may adopt an ordinance to
impose an additional tax rate under this section to provide funding
for public safety if:
(1) the county income tax council has imposed a tax rate
under section 30 of this chapter, in the case of a county
containing a consolidated city; or
(2) the county income tax council has imposed a tax rate
under section 30 of this chapter and has also imposed a tax
rate under section 32 of this chapter, in the case of a county
other than a county containing a consolidated city.
(c) A tax rate under this section may not exceed the following:
(1) Five-tenths of one percent (0.5%), in the case of a county
containing a consolidated city.
(2) The lesser of:
(A) twenty-five hundredths of one percent (0.25%); or
(B) the tax rate imposed under section 32 of this chapter;
in the case of a county other than a county containing a
consolidated city.
(d) If a county income tax council adopts an ordinance to impose
a tax rate under this section, the county auditor shall send a
certified copy of the ordinance to the department and the
department of local government finance by certified mail.
(e) A tax rate under this section is in addition to any other tax
rates imposed under this chapter and does not affect the purposes
for which other tax revenue under this chapter may be used.
(f) The county auditor shall distribute the portion of the
certified distribution that is attributable to a tax rate under this
section to the county and to each municipality in the county. The
amount that shall be distributed to the county or municipality is
equal to the result of:
(1) the portion of the certified distribution that is attributable
to a tax rate under this section; multiplied by
(2) a fraction equal to:
(A) the total property taxes being collected in the county by
the county or municipality for the calendar year; divided
by
(B) the sum of the total property taxes being collected in
the county by the county and each municipality in the
county for the calendar year.
The county auditor shall make the distributions required by this
subsection not more than thirty (30) days after receiving the
portion of the certified distribution that is attributable to a tax rate
under this section. Tax revenue distributed to a county or
municipality under this subsection must be deposited into a
separate account or fund and may be appropriated by the county
or municipality only for public safety purposes.
(g) The department of local government finance may not
require a county or municipality receiving tax revenue under this
section to reduce the county's or municipality's property tax levy
for a particular year on account of the county's or municipality's
receipt of the tax revenue.
(h) The tax rate under this section and the tax revenue
attributable to the tax rate under this section shall not be
considered for purposes of computing:
(1) the maximum income tax rate that may be imposed in a
county under section 8 or 9 of this chapter or any other
provision of this chapter;
(2) the maximum permissible property tax levy under STEP
EIGHT of IC 6-1.1-18.5-3(b); or
(3) the total county tax levy under IC 6-1.1-21-2(g)(3),
IC 6-1.1-21-2(g)(4), or IC 6-1.1-21-2(g)(5).
(i) The tax rate under this section may be imposed or rescinded
at the same time and in the same manner that the county may
impose or increase a tax rate under section 30 of this chapter.
(j) The department of local government finance and the
department of state revenue may take any actions necessary to
carry out the purposes of this section.
(k) Notwithstanding any other provision, in Lake County the
county council (and not the county income tax council) is the entity
authorized to take actions concerning the additional tax rate under
this section.
SOURCE: IC 6-3.5-6-32; (07)CC147804.85. -->
SECTION 85. IC 6-3.5-6-32 IS ADDED TO THE INDIANA CODE
AS A
NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]:
Sec. 32. (a) A county income tax council may
impose a tax rate under this section to provide property tax relief
to political subdivisions in the county. A county income tax council
is not required to impose any other tax before imposing a tax rate
under this section.
(b) A tax rate under this section may be imposed in increments
of five hundredths of one percent (0.05%) determined by the
county income tax council. A tax rate under this section may not
exceed one percent (1%).
(c) A tax rate under this section is in addition to any other tax
rates imposed under this chapter and does not affect the purposes
for which other tax revenue under this chapter may be used.
(d) If a county income tax council adopts an ordinance to impose
or increase a tax rate under this section, the county auditor shall
send a certified copy of the ordinance to the department and the
department of local government finance by certified mail.
(e) A tax rate under this section may be imposed, increased,
decreased, or rescinded at the same time and in the same manner
that the county income tax council may impose or increase a tax
rate under section 30 of this chapter.
(f) Tax revenue attributable to a tax rate under this section may
be used for any combination of the following purposes, as specified
by ordinance of the county income tax council:
(1) The tax revenue may be used to provide local property tax
replacement credits at a uniform rate to civil taxing units and
school corporations in the county. The amount of property tax
replacement credits that each civil taxing unit and school
corporation in a county is entitled to receive under this
subdivision during a calendar year equals the product of:
(A) the tax revenue attributable to a tax rate under this
section that is dedicated to property tax replacement
credits under this subdivision; multiplied by
(B) the following fraction:
(i) The numerator of the fraction equals the total
property taxes being collected in the county by the civil
taxing unit or school corporation during the calendar
year of the distribution.
(ii) The denominator of the fraction equals the sum of
the total property taxes being collected in the county by
all civil taxing units and school corporations of the
county during the calendar year of the distribution.
The department of local government finance shall provide
each county auditor with the amount of property tax
replacement credits that each civil taxing unit and school
corporation in the auditor's county is entitled to receive under
this subdivision. The county auditor shall then certify to each
civil taxing unit and school corporation the amount of
property tax replacement credits the civil taxing unit or
school corporation is entitled to receive under this subdivision
during that calendar year. The county auditor shall also
certify these distributions to the county treasurer. Except as
provided in subsection (g), the local property tax replacement
credits shall be treated for all purposes as property tax levies.
(2) The tax revenue may be used to uniformly increase the
homestead credit percentage in the county. The additional
homestead credits shall be treated for all purposes as
property tax levies. The additional homestead credits do not
reduce the basis for determining the state homestead credit
under IC 6-1.1-20.9. The additional homestead credits shall be
applied to the net property taxes due on the homestead after
the application of all other assessed value deductions or
property tax deductions and credits that apply to the amount
owed under IC 6-1.1. The department of local government
finance shall determine the additional homestead credit
percentage for a particular year based on the amount of tax
revenue that will be used under this subdivision to provide
additional homestead credits in that year.
(3) The tax revenue may be used to provide local property tax
replacement credits at a uniform rate for all qualified
residential property (as defined in IC 6-1.1-20.6-4) in the
county. The amount of property tax replacement credits that
each civil taxing unit and school corporation in a county is
entitled to receive under this subdivision during a calendar
year equals the product of:
(A) the tax revenue attributable to a tax rate under this
section that is dedicated to property tax replacement
credits under this subdivision; multiplied by
(B) the following fraction:
(i) The numerator of the fraction equals the total
property taxes being collected in the county by the civil
taxing unit or school corporation during the calendar
year of the distribution.
(ii) The denominator of the fraction equals the sum of
the total property taxes being collected in the county by
all civil taxing units and school corporations of the
county during the calendar year of the distribution.
The department of local government finance shall provide
each county auditor with the amount of property tax
replacement credits that each civil taxing unit and school
corporation in the auditor's county is entitled to receive under
this subdivision. The county auditor shall then certify to each
civil taxing unit and school corporation the amount of
property tax replacement credits the civil taxing unit or
school corporation is entitled to receive under this subdivision
during that calendar year. The county auditor shall also
certify these distributions to the county treasurer. Except as
provided in subsection (g), the local property tax replacement
credits shall be treated for all purposes as property tax levies.
(g) The tax rate under this section shall not be considered for
purposes of computing:
(1) the maximum income tax rate that may be imposed in a
county under section 8 or 9 of this chapter or any other
provision of this chapter; or
(2) the maximum permissible property tax levy under STEP
EIGHT of IC 6-1.1-18.5-3(b).
(h) Tax revenue under this section shall be treated as a part of
the receiving civil taxing unit's or school corporation's property
tax levy for that year for purposes of fixing the budget of the civil
taxing unit or school corporation and for determining the
distribution of taxes that are distributed on the basis of property
tax levies.
(i) The department of local government finance and the
department of state revenue may take any actions necessary to
carry out the purposes of this section.
(j) Notwithstanding any other provision, in Lake County the
county council (and not the county income tax council) is the entity
authorized to take actions concerning the tax rate under this
section.
SOURCE: IC 6-3.5-6-33; (07)CC147804.86. -->
SECTION 86. IC 6-3.5-6-33 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 33. (a) This section applies only to Monroe
County.
(b) Maintaining low property tax rates is essential to economic
development, and the use of county option income tax revenues as
provided in this chapter and as needed in the county to fund the
operation and maintenance of a juvenile detention center and other
facilities to provide juvenile services, rather than the use of
property taxes, promotes that purpose.
(c) In addition to the rates permitted by sections 8 and 9 of this
chapter, the county fiscal body may impose an additional county
option income tax at a rate of not more than twenty-five
hundredths percent (0.25%) on the adjusted gross income of
resident county taxpayers if the county fiscal body makes the
finding and determination set forth in subsection (d). Section 8(e)
of this chapter applies to the application of the additional rate to
nonresident taxpayers.
(d) In order to impose the county option income tax as provided
in this section, the county fiscal body must adopt an ordinance:
(1) finding and determining that revenues from the county
option income tax are needed in the county to fund the
operation and maintenance of a juvenile detention center and
other facilities necessary to provide juvenile services; and
(2) agreeing to freeze for the term in which an ordinance is in
effect under this section the part of any property tax levy
imposed in the county for the operation of the juvenile
detention center and other facilities covered by the ordinance
at the rate imposed in the year preceding the year in which a
full year of additional county option income tax is certified for
distribution to the county under this section.
(e) If the county fiscal body makes a determination under
subsection (d), the county fiscal body may adopt a tax rate under
subsection (c). Subject to the limitations in subsection (c), the
county fiscal body may amend an ordinance adopted under this
section to increase, decrease, or rescind the additional tax rate
imposed under this section. As soon as practicable after the
adoption of an ordinance under this section, the county fiscal body
shall send a certified copy of the ordinance to the county auditor,
the department of local government finance, and the department
of state revenue. An ordinance adopted under this section before
August 1 in a year applies to the imposition of county income taxes
after September 30 in that year. An ordinance adopted under this
section after July 31 of a year initially applies to the imposition of
county option income taxes after September 30 of the immediately
following year.
(f) The county treasurer shall establish a county juvenile
detention center revenue fund to be used only for the purposes
described in this section. County option income tax revenues
derived from the tax rate imposed under this section shall be
deposited in the county juvenile detention center revenue fund
before a certified distribution is made under section 18 of this
chapter.
(g) County option income tax revenues derived from the tax rate
imposed under this section:
(1) may be used only for the purposes described in this
section; and
(2) 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.
(h) The department of local government finance shall enforce an
agreement made under subsection (d)(2).
(i) The department, after reviewing the recommendation of the
budget agency, shall adjust the certified distribution of a county to
provide for an increased distribution of taxes in the immediately
following calendar year after the county adopts an increased tax
rate under this section and in each calendar year thereafter. The
department shall provide for a full transition to certification of
distributions as provided in section 17(a)(1) through 17(a)(2) of this
chapter in the manner provided in section 17(c) of this chapter.
SOURCE: IC 6-3.5-7-5; (07)CC147804.87. -->
SECTION 87. IC 6-3.5-7-5, AS AMENDED BY P.L.162-2006,
SECTION 33, AND AS AMENDED BY P.L.184-2006, SECTION 8,
IS CORRECTED AND AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 5. (a) Except as provided in
subsection (c), the county economic development income tax may be
imposed on the adjusted gross income of county taxpayers. The entity
that may impose the tax is:
(1) the county income tax council (as defined in IC 6-3.5-6-1) if
the county option income tax is in effect on
January 1 March 31
of the year the county economic development income tax is
imposed;
(2) the county council if the county adjusted gross income tax is
in effect on
January 1 March 31 of the year the county economic
development tax is imposed; or
(3) the county income tax council or the county council,
whichever acts first, for a county not covered by subdivision (1)
or (2).
To impose the county economic development income tax, a county
income tax council shall use the procedures set forth in IC 6-3.5-6
concerning the imposition of the county option income tax.
(b) Except as provided in subsections (c), (g), (k), (p), and (r), the
county economic development income tax may be imposed at a rate of:
(1) one-tenth percent (0.1%);
(2) two-tenths percent (0.2%);
(3) twenty-five hundredths percent (0.25%);
(4) three-tenths percent (0.3%);
(5) thirty-five hundredths percent (0.35%);
(6) four-tenths percent (0.4%);
(7) forty-five hundredths percent (0.45%); or
(8) five-tenths percent (0.5%);
on the adjusted gross income of county taxpayers.
(c) Except as provided in subsection (h), (i), (j), (k), (l), (m), (n), (o),
(p),
or (s),
or (v), (w), or (x), the county economic development
income tax rate plus the county adjusted gross income tax rate, if any,
that are in effect on January 1 of a year may not exceed one and
twenty-five hundredths percent (1.25%). Except as provided in
subsection (g), (p), (r), (t), or (u), (w), or (x), the county economic
development tax rate plus the county option income tax rate, if any, that
are in effect on January 1 of a year may not exceed one percent (1%).
(d) To impose, increase, decrease, or rescind the county economic
development income tax, the appropriate body must, after January 1
March 31 but before April August 1 of a year, adopt an ordinance.
The ordinance to impose the tax must substantially state the following:
"The ________ County _________ imposes the county economic
development income tax on the county taxpayers of _________
County. The county economic development income tax is imposed at
a rate of _________ percent (____%) on the county taxpayers of the
county. This tax takes effect July October 1 of this year.".
(e) Any ordinance adopted under this chapter takes effect July 1 of
the year the ordinance is adopted.
(f) The auditor of a county shall record all votes taken on ordinances
presented for a vote under the authority of this chapter and shall, not
more than ten (10) days after the vote, send a certified copy of the
results to the commissioner of the department by certified mail.
(g) This subsection applies to a county having a population of more
than one hundred forty-eight thousand (148,000) but less than one
hundred seventy thousand (170,000). Except as provided in subsection
(p), in addition to the rates permitted by subsection (b), the:
(1) county economic development income tax may be imposed at
a rate of:
(A) fifteen-hundredths percent (0.15%);
(B) two-tenths percent (0.2%); or
(C) twenty-five hundredths percent (0.25%); and
(2) county economic development income tax rate plus the county
option income tax rate that are in effect on January 1 of a year
may equal up to one and twenty-five hundredths percent (1.25%);
if the county income tax council makes a determination to impose rates
under this subsection and section 22 of this chapter.
(h) For a county having a population of more than forty-one
thousand (41,000) but less than forty-three thousand (43,000), except
as provided in subsection (p), the county economic development
income tax rate plus the county adjusted gross income tax rate that are
in effect on January 1 of a year may not exceed one and thirty-five
hundredths percent (1.35%) if the county has imposed the county
adjusted gross income tax at a rate of one and one-tenth percent (1.1%)
under IC 6-3.5-1.1-2.5.
(i) For a county having a population of more than thirteen thousand
five hundred (13,500) but less than fourteen thousand (14,000), except
as provided in subsection (p), the county economic development
income tax rate plus the county adjusted gross income tax rate that are
in effect on January 1 of a year may not exceed one and fifty-five
hundredths percent (1.55%).
(j) For a county having a population of more than seventy-one
thousand (71,000) but less than seventy-one thousand four hundred
(71,400), except as provided in subsection (p), the county economic
development income tax rate plus the county adjusted gross income tax
rate that are in effect on January 1 of a year may not exceed one and
five-tenths percent (1.5%).
(k) This subsection applies to a county having a population of more
than twenty-seven thousand four hundred (27,400) but less than
twenty-seven thousand five hundred (27,500). Except as provided in
subsection (p), in addition to the rates permitted under subsection (b):
(1) the county economic development income tax may be imposed
at a rate of twenty-five hundredths percent (0.25%); and
(2) the sum of the county economic development income tax rate
and the county adjusted gross income tax rate that are in effect on
January 1 of a year may not exceed one and five-tenths percent
(1.5%);
if the county council makes a determination to impose rates under this
subsection and section 22.5 of this chapter.
(l) For a county having a population of more than twenty-nine
thousand (29,000) but less than thirty thousand (30,000), except as
provided in subsection (p), the county economic development income
tax rate plus the county adjusted gross income tax rate that are in effect
on January 1 of a year may not exceed one and five-tenths percent
(1.5%).
(m) For:
(1) a county having a population of more than one hundred
eighty-two thousand seven hundred ninety (182,790) but less than
two hundred thousand (200,000); or
(2) a county having a population of more than forty-five thousand
(45,000) but less than forty-five thousand nine hundred (45,900);
except as provided in subsection (p), the county economic development
income tax rate plus the county adjusted gross income tax rate that are
in effect on January 1 of a year may not exceed one and five-tenths
percent (1.5%).
(n) For a county having a population of more than six thousand
(6,000) but less than eight thousand (8,000), except as provided in
subsection (p), the county economic development income tax rate plus
the county adjusted gross income tax rate that are in effect on January
1 of a year may not exceed one and five-tenths percent (1.5%).
(o) This subsection applies to a county having a population of more
than thirty-nine thousand (39,000) but less than thirty-nine thousand
six hundred (39,600). Except as provided in subsection (p), in addition
to the rates permitted under subsection (b):
(1) the county economic development income tax may be imposed
at a rate of twenty-five hundredths percent (0.25%); and
(2) the sum of the county economic development income tax rate
and:
(A) the county adjusted gross income tax rate that are in effect
on January 1 of a year may not exceed one and five-tenths
percent (1.5%); or
(B) the county option income tax rate that are in effect on
January 1 of a year may not exceed one and twenty-five
hundredths percent (1.25%);
if the county council makes a determination to impose rates under this
subsection and section 24 of this chapter.
(p) In addition:
(1) the county economic development income tax may be imposed
at a rate that exceeds by not more than twenty-five hundredths
percent (0.25%) the maximum rate that would otherwise apply
under this section; and
(2) the:
(A) county economic development income tax; and
(B) county option income tax or county adjusted gross income
tax;
may be imposed at combined rates that exceed by not more than
twenty-five hundredths percent (0.25%) the maximum combined
rates that would otherwise apply under this section.
However, the additional rate imposed under this subsection may not
exceed the amount necessary to mitigate the increased ad valorem
property taxes on homesteads (as defined in IC 6-1.1-20.9-1)
or
residential property (as defined in section 26 of this chapter), as
appropriate under the ordinance adopted by the adopting body in the
county, resulting from the deduction of the assessed value of inventory
in the county under IC 6-1.1-12-41 or IC 6-1.1-12-42.
(q) If the county economic development income tax is imposed as
authorized under subsection (p) at a rate that exceeds the maximum
rate that would otherwise apply under this section, the certified
distribution must be used for the purpose provided in section 25(e) or
26 of this chapter to the extent that the certified distribution results
from the difference between:
(1) the actual county economic development tax rate; and
(2) the maximum rate that would otherwise apply under this
section.
(r) This subsection applies only to a county described in section 27
of this chapter. Except as provided in subsection (p), in addition to the
rates permitted by subsection (b), the:
(1) county economic development income tax may be imposed at
a rate of twenty-five hundredths percent (0.25%); and
(2) county economic development income tax rate plus the county
option income tax rate that are in effect on January 1 of a year
may equal up to one and twenty-five hundredths percent (1.25%);
if the county council makes a determination to impose rates under this
subsection and section 27 of this chapter.
(s) Except as provided in subsection (p), the county economic
development income tax rate plus the county adjusted gross income tax
rate that are in effect on January 1 of a year may not exceed one and
five-tenths percent (1.5%) if the county has imposed the county
adjusted gross income tax under IC 6-3.5-1.1-3.3.
(t) This subsection applies to Howard County. Except as provided
in subsection (p), the sum of the county economic development income
tax rate and the county option income tax rate that are in effect on
January 1 of a year may not exceed one and twenty-five hundredths
percent (1.25%).
(u) This subsection applies to Scott County. Except as provided in
subsection (p), the sum of the county economic development income
tax rate and the county option income tax rate that are in effect on
January 1 of a year may not exceed one and twenty-five hundredths
percent (1.25%).
(v) This subsection applies to Jasper County. Except as provided in
subsection (p), the sum of the county economic development income tax
rate and the county adjusted gross income tax rate that are in effect on
January 1 of a year may not exceed one and five-tenths percent (1.5%).
(w) The income tax rate limits imposed by subsection (c) or (x)
or any other provision of this chapter do not apply to:
(1) a county adjusted gross income tax rate imposed under
IC 6-3.5-1.1-24, IC 6-3.5-1.1-25, or IC 6-3.5-1.1-26; or
(2) a county option income tax rate imposed under
IC 6-3.5-6-30, IC 6-3.5-6-31, or IC 6-3.5-6-32.
For purposes of computing the maximum combined income tax
rate under subsection (c) or (x) or any other provision of this
chapter that may be imposed in a county under IC 6-3.5-1.1,
IC 6-3.5-6, and this chapter, a county's county adjusted gross
income tax rate or county option income tax rate for a particular
year does not include the county adjusted gross income tax rate
imposed under IC 6-3.5-1.1-24, IC 6-3.5-1.1-25, or IC 6-3.5-1.1-26
or the county option income tax rate imposed under IC 6-3.5-6-30,
IC 6-3.5-6-31, or IC 6-3.5-6-32.
(x) This subsection applies to Monroe County. Except as
provided in subsection (p), if an ordinance is adopted under
IC 6-3.5-6-33, the sum of the county economic development income
tax rate and the county option income tax rate that are in effect on
January 1 of a year may not exceed one and twenty-five
hundredths percent (1.25%).
SOURCE: IC 6-3.5-7-6; (07)CC147804.88. -->
SECTION 88. IC 6-3.5-7-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 6. (a) The body
imposing the tax may decrease or increase the county economic
development income tax rate imposed upon the county taxpayers as
long as the resulting rate does not exceed the rates specified in section
5(b) and 5(c) or 5(g) of this chapter. The rate imposed under this
section must be adopted at one (1) of the rates specified in section 5(b)
of this chapter. To decrease or increase the rate, the appropriate body
must, after January 1 March 31 but before April August 1 of a year,
adopt an ordinance. The ordinance must substantially state the
following:
"The ________ County __________ increases (decreases) the
county economic development income tax rate imposed upon the
county taxpayers of the county from _____ percent (___%) to
_____ percent (___%). This tax rate increase (decrease) takes
effect July October 1 of this year.".
(b) Any ordinance adopted under this section takes effect July
October 1 of the year the ordinance is adopted.
(c) The auditor of a county shall record all votes taken on
ordinances presented for a vote under the authority of this section and
immediately send a certified copy of the results to the department by
certified mail.
SOURCE: IC 6-3.5-7-7; (07)CC147804.89. -->
SECTION 89. IC 6-3.5-7-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 7. (a) The county
economic development income tax imposed under this chapter remains
in effect until rescinded.
(b) Subject to section 14 of this chapter, the body imposing the
county economic development income tax may rescind the tax by
adopting an ordinance to rescind the tax after January 1 March 31 but
before April August 1 of a year.
(c) Any ordinance adopted under this section takes effect July
October 1 of the year the ordinance is adopted.
(d) The auditor of a county shall record all votes taken on
ordinances presented for a vote under the authority of this section and
immediately send a certified copy of the results to the department by
certified mail.
SOURCE: IC 6-3.5-7-25; (07)CC147804.90. -->
SECTION 90. IC 6-3.5-7-25, AS AMENDED BY P.L.199-2005,
SECTION 24, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 25. (a) This section applies only to a county
that has adopted an ordinance under IC 6-1.1-12-41(f).
(b) For purposes of this section, "imposing entity" means the entity
that adopted the ordinance under IC 6-1.1-12-41(f).
(c) The imposing entity may adopt an ordinance to provide for the
use of the certified distribution described in section 16(c) of this
chapter for the purpose provided in subsection (e). A county income
tax council that adopts an ordinance under this subsection shall use the
procedures set forth in IC 6-3.5-6 concerning the adoption of an
ordinance for the imposition of the county option income tax. Except
as provided in subsection (j), an ordinance must be adopted under this
subsection after
January 1 March 31 but before
June August 1 of a
calendar year. The ordinance may provide for an additional rate under
section 5(p) of this chapter. An ordinance adopted under this
subsection:
(1) first applies to the certified distribution described in section
16(c) of this chapter made in the calendar year that immediately
succeeds the calendar year in which the ordinance is adopted;
(2) must specify the calendar years to which the ordinance
applies; and
(3) must specify that the certified distribution must be used to
provide for:
(A) uniformly applied increased homestead credits as provided
in subsection (f); or
(B) allocated increased homestead credits as provided in
subsection (h).
An ordinance adopted under this subsection may be combined with an
ordinance adopted under section 26 of this chapter.
(d) If an ordinance is adopted under subsection (c), the percentage
of the certified distribution specified in the ordinance for use for the
purpose provided in subsection (e) shall be:
(1) retained by the county auditor under subsection (i); and
(2) used for the purpose provided in subsection (e) instead of the
purposes specified in the capital improvement plans adopted
under section 15 of this chapter.
(e) If an ordinance is adopted under subsection (c), the imposing
entity shall use the certified distribution described in section 16(c) of
this chapter to increase the homestead credit allowed in the county
under IC 6-1.1-20.9 for a year to offset the effect on homesteads in the
county resulting from a county deduction for inventory under
IC 6-1.1-12-41.
(f) If the imposing entity specifies the application of uniform
increased homestead credits under subsection (c)(3)(A), the county
auditor shall, for each calendar year in which an increased homestead
credit percentage is authorized under this section, determine:
(1) the amount of the certified distribution that is available to
provide an increased homestead credit percentage for the year;
(2) the amount of uniformly applied homestead credits for the
year in the county that equals the amount determined under
subdivision (1); and
(3) the increased percentage of homestead credit that equates to
the amount of homestead credits determined under subdivision
(2).
(g) The increased percentage of homestead credit determined by the
county auditor under subsection (f) applies uniformly in the county in
the calendar year for which the increased percentage is determined.
(h) If the imposing entity specifies the application of allocated
increased homestead credits under subsection (c)(3)(B), the county
auditor shall, for each calendar year in which an increased homestead
credit is authorized under this section, determine:
(1) the amount of the certified distribution that is available to
provide an increased homestead credit for the year; and
(2) an increased percentage of homestead credit for each taxing
district in the county that allocates to the taxing district an amount
of increased homestead credits that bears the same proportion to
the amount determined under subdivision (1) that the amount of
inventory assessed value deducted under IC 6-1.1-12-41 in the
taxing district for the immediately preceding year's assessment
date bears to the total inventory assessed value deducted under
IC 6-1.1-12-41 in the county for the immediately preceding year's
assessment date.
(i) The county auditor shall retain from the payments of the county's
certified distribution an amount equal to the revenue lost, if any, due to
the increase of the homestead credit within the county. The money shall
be distributed to the civil taxing units and school corporations of the
county:
(1) as if the money were from property tax collections; and
(2) in such a manner that no civil taxing unit or school
corporation will suffer a net revenue loss because of the
allowance of an increased homestead credit.
(j) An entity authorized to adopt:
(1) an ordinance under subsection (c); and
(2) an ordinance under IC 6-1.1-12-41(f);
may consolidate the two (2) ordinances. The limitation under
subsection (c) that an ordinance must be adopted after January 1 of a
calendar year does not apply if a consolidated ordinance is adopted
under this subsection. However, notwithstanding subsection (c)(1), the
ordinance must state that it first applies to certified distributions in the
calendar year in which property taxes are initially affected by the
deduction under IC 6-1.1-12-41.
SOURCE: IC 6-3.5-7-26; (07)CC147804.91. -->
SECTION 91. IC 6-3.5-7-26, AS AMENDED BY P.L.162-2006,
SECTION 34, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 26. (a) This section applies only to homestead
and property tax replacement credits for property taxes first due and
payable after calendar year 2006.
(b) The following definitions apply throughout this section:
(1) "Adopt" includes amend.
(2) "Adopting entity" means:
(A) the entity that adopts an ordinance under
IC 6-1.1-12-41(f); or
(B) any other entity that may impose a county economic
development income tax under section 5 of this chapter.
(3) "Homestead" refers to tangible property that is eligible for a
homestead credit under IC 6-1.1-20.9.
(4) "Residential" refers to the following:
(A) Real property, a mobile home, and industrialized housing
that would qualify as a homestead if the taxpayer had filed for
a homestead credit under IC 6-1.1-20.9.
(B) Real property not described in clause (A) designed to
provide units that are regularly used to rent or otherwise
furnish residential accommodations for periods of thirty (30)
days or more, regardless of whether the tangible property is
subject to assessment under rules of the department of local
government finance that apply to:
(i) residential property; or
(ii) commercial property.
(c) An adopting entity may adopt an ordinance to provide for the use
of the certified distribution described in section 16(c) of this chapter for
the purpose provided in subsection (e). An adopting entity that adopts
an ordinance under this subsection shall use the procedures set forth in
IC 6-3.5-6 concerning the adoption of an ordinance for the imposition
of the county option income tax. An ordinance must be adopted under
this subsection after January 1, 2006, and before June 1, 2006, or, in a
year following 2006, after
January 1 March 31 but before
April
August 1 of a calendar year. The ordinance may provide for an
additional rate under section 5(p) of this chapter. An ordinance adopted
under this subsection:
(1) first applies to the certified distribution described in section
16(c) of this chapter made in the later of the calendar year that
immediately succeeds the calendar year in which the ordinance is
adopted or calendar year 2007; and
(2) must specify that the certified distribution must be used to
provide for one (1) of the following, as determined by the
adopting entity:
(A) Uniformly applied increased homestead credits as
provided in subsection (f).
(B) Uniformly applied increased residential credits as
provided in subsection (g).
(C) Allocated increased homestead credits as provided in
subsection (i).
(D) Allocated increased residential credits as provided in
subsection (j).
An ordinance adopted under this subsection may be combined with an
ordinance adopted under section 25 of this chapter.
(d) If an ordinance is adopted under subsection (c), the percentage
of the certified distribution specified in the ordinance for use for the
purpose provided in subsection (e) shall be:
(1) retained by the county auditor under subsection (k); and
(2) used for the purpose provided in subsection (e) instead of the
purposes specified in the capital improvement plans adopted
under section 15 of this chapter.
(e) If an ordinance is adopted under subsection (c), the adopting
entity shall use the certified distribution described in section 16(c) of
this chapter to increase:
(1) if the ordinance grants a credit described in subsection
(c)(2)(A) or (c)(2)(C), the homestead credit allowed in the county
under IC 6-1.1-20.9 for a year; or
(2) if the ordinance grants a credit described in subsection
(c)(2)(B) or (c)(2)(D), the property tax replacement credit allowed
in the county under IC 6-1.1-21-5 for a year for the residential
property;
to offset the effect on homesteads or residential property, as applicable,
in the county resulting from the statewide deduction for inventory
under IC 6-1.1-12-42. The amount of an additional residential property
tax replacement credit granted under this section may not be
considered in computing the amount of any homestead credit to which
the residential property may be entitled under IC 6-1.1-20.9 or another
law other than IC 6-1.1-20.6.
(f) If the imposing entity specifies the application of uniform
increased homestead credits under subsection (c)(2)(A), the county
auditor shall, for each calendar year in which an increased homestead
credit percentage is authorized under this section, determine:
(1) the amount of the certified distribution that is available to
provide an increased homestead credit percentage for the year;
(2) the amount of uniformly applied homestead credits for the
year in the county that equals the amount determined under
subdivision (1); and
(3) the increased percentage of homestead credit that equates to
the amount of homestead credits determined under subdivision
(2).
(g) If the imposing entity specifies the application of uniform
increased residential credits under subsection (c)(2)(B), the county
auditor shall determine for each calendar year in which an increased
homestead credit percentage is authorized under this section:
(1) the amount of the certified distribution that is available to
provide an increased residential property tax replacement credit
percentage for the year;
(2) the amount of uniformly applied residential property tax
replacement credits for the year in the county that equals the
amount determined under subdivision (1); and
(3) the increased percentage of residential property tax
replacement credit that equates to the amount of residential
property tax replacement credits determined under subdivision
(2).
(h) The increased percentage of homestead credit determined by the
county auditor under subsection (f) or the increased percentage of
residential property tax replacement credit determined by the county
auditor under subsection (g) applies uniformly in the county in the
calendar year for which the increased percentage is determined.
(i) If the imposing entity specifies the application of allocated
increased homestead credits under subsection (c)(2)(C), the county
auditor shall, for each calendar year in which an increased homestead
credit is authorized under this section, determine:
(1) the amount of the certified distribution that is available to
provide an increased homestead credit for the year; and
(2) except as provided in subsection (l), an increased percentage
of homestead credit for each taxing district in the county that
allocates to the taxing district an amount of increased homestead
credits that bears the same proportion to the amount determined
under subdivision (1) that 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.
(j) If the imposing entity specifies the application of allocated
increased residential property tax replacement credits under subsection
(c)(2)(D), the county auditor shall determine for each calendar year in
which an increased residential property tax replacement credit is
authorized under this section:
(1) the amount of the certified distribution that is available to
provide an increased residential property tax replacement credit
for the year; and
(2) except as provided in subsection (l), an increased percentage
of residential property tax replacement credit for each taxing
district in the county that allocates to the taxing district an amount
of increased residential property tax replacement credits that
bears the same proportion to the amount determined under
subdivision (1) that 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.
(k) The county auditor shall retain from the payments of the county's
certified distribution an amount equal to the revenue lost, if any, due to
the increase of the homestead credit or residential property tax
replacement credit within the county. The money shall be distributed
to the civil taxing units and school corporations of the county:
(1) as if the money were from property tax collections; and
(2) in such a manner that no civil taxing unit or school
corporation will suffer a net revenue loss because of the
allowance of an increased homestead credit or residential property
tax replacement credit.
(l) Subject to the approval of the imposing entity, the county auditor
may adjust the increased percentage of:
(1) homestead credit determined under subsection (i)(2) if the
county auditor determines that the adjustment is necessary to
achieve an equitable reduction of property taxes among the
homesteads in the county; or
(2) residential property tax replacement credit determined under
subsection (j)(2) if the county auditor determines that the
adjustment is necessary to achieve an equitable reduction of
property taxes among the residential property in the county.
SOURCE: IC 6-3.5-7-27; (07)CC147804.92. -->
SECTION 92. IC 6-3.5-7-27 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 27. (a) This section
applies to a county that:
(1) operates a courthouse that is subject to an order that:
(A) is issued by a federal district court;
(B) applies to an action commenced before January 1, 2003;
and
(C) requires the county to comply with the federal Americans
with Disabilities Act; and
(2) has insufficient revenues to finance the construction,
acquisition, improvement, renovation, equipping, and operation
of the courthouse facilities and related facilities.
(b) A county described in this section possesses unique fiscal
challenges in financing, renovating, equipping, and operating the
county courthouse facilities and related facilities because the county
consistently has one of the highest unemployment rates in Indiana.
Maintaining low property tax rates is essential to economic
development in the county. The use of economic development income
tax revenues under this section for the purposes described in subsection
(c) promotes that purpose.
(c) In addition to actions authorized by section 5 of this chapter, a
county council may, using the procedures set forth in this chapter,
adopt an ordinance to impose an additional county economic
development income tax on the adjusted gross income of county
taxpayers. The ordinance imposing the additional tax must include a
finding that revenues from additional tax are needed to pay the costs of:
(1) constructing, acquiring, improving, renovating, equipping, or
operating the county courthouse or related facilities;
(2) repaying any bonds issued, or leases entered into, for
constructing, acquiring, improving, renovating, equipping, or
operating the county courthouse or related facilities; and
(3) economic development projects described in the county's
capital improvement plan.
(d) The tax rate imposed under this section may not exceed
twenty-five hundredths percent (0.25%).
(e) If the county council adopts an ordinance to impose an
additional tax under this section, the county auditor shall immediately
send a certified copy of the ordinance to the department by certified
mail. The county treasurer shall establish a county facilities revenue
fund to be used only for the purposes described in subsection (c)(1) and
(c)(2). The amount of county economic development income tax
revenues derived from the tax rate imposed under this section that are
necessary to pay the costs described in subsection (c)(1) and (c)(2)
shall be deposited into the county facilities revenue fund before a
certified distribution is made under section 12 of this chapter. The
remainder shall be deposited into the economic development income
tax funds of the county's units.
(f) County economic development income tax revenues derived
from the tax rate imposed under this section may not be used for
purposes other than those described in this section.
(g) County economic development income tax revenues derived
from the tax rate imposed under this section that are deposited into the
county facilities revenue fund may not be considered by the department
of local government finance in determining the county's ad valorem
property tax levy for an ensuing calendar year under IC 6-1.1-18.5.
(h) Notwithstanding section 5 of this chapter, an ordinance may be
adopted under this section at any time. If the ordinance is adopted
before June August 1 of a year, a tax rate imposed under this section
takes effect July October 1 of that year. If the ordinance is adopted
after May July 31 of a year, a tax rate imposed under this section takes
effect on the January October 1 immediately following adoption of the
ordinance.
(i) For a county adopting an ordinance before June 1 in a year, in
determining the certified distribution under section 11 of this chapter
for the calendar year beginning with the immediately following January
1 and each calendar year thereafter, the department shall take into
account the certified ordinance mailed to the department under
subsection (e). For a county adopting an ordinance after May 31, the
department shall issue an initial or a revised certified distribution for
the calendar year beginning with the immediately following January 1.
Except for a county adopting an ordinance after May 31, a county's
certified distribution shall be distributed on the dates specified under
section 16 of this chapter. In the case of a county adopting an ordinance
after May 31, the county, beginning with the calendar year beginning
on the immediately following January 1, shall receive the entire
certified distribution for the calendar year on November 1 of the year.
(j) Notwithstanding any other law, funds accumulated from the
county economic development income tax imposed under this section
and deposited into the county facilities revenue fund or any other
revenues of the county may be deposited into a nonreverting fund of
the county to be used for operating costs of the courthouse facilities,
juvenile detention facilities, or related facilities. Amounts in the county
nonreverting fund may not be used by the department of local
government finance to reduce the county's ad valorem property tax levy
for an ensuing calendar year under IC 6-1.1-18.5.
SOURCE: IC 6-9-2.5-6; (07)CC147804.93. -->
SECTION 93. IC 6-9-2.5-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 6. (a) The county
council may levy tax on every person engaged in the business of
renting or furnishing, for periods of less than thirty (30) days, any room
or rooms, lodgings, or accommodations in any commercial hotel,
motel, inn, tourist camp, or tourist cabin located in a county described
in section 1 of this chapter. Such tax shall not exceed the rate of six
eight percent (6%) (8%) on the gross income derived from lodging
income only and shall be in addition to the state gross retail tax
imposed on such persons by IC 6-2.5.
(b) The county fiscal body may adopt an ordinance to require that
the tax be reported on forms approved by the county treasurer and that
the tax shall be paid monthly to the county treasurer. If such an
ordinance is adopted, the tax shall be paid to the county treasurer not
more than twenty (20) days after the end of the month the tax is
collected. If such an ordinance is not adopted, the tax shall be imposed,
paid, and collected in exactly the same manner as the state gross retail
tax is imposed, paid, and collected pursuant to IC 6-2.5.
(c) All of the provisions of IC 6-2.5 relating to rights, duties,
liabilities, procedures, penalties, definitions, exemptions, and
administration shall be applicable to the imposition and administration
of the tax imposed by this section except to the extent such provisions
are in conflict or inconsistent with the specific provisions of this
chapter or the requirements of the county treasurer. Specifically and not
in limitation of the foregoing sentence, the terms "person" and "gross
income" shall have the same meaning in this section as they have in
IC 6-2.5. If the tax is paid to the department of state revenue, the
returns to be filed for the payment of the tax under this section may be
either a separate return or may be combined with the return filed for the
payment of the state gross retail tax as the department of state revenue
may, by rule or regulation, determine.
(d) If the tax is paid to the department of state revenue, the amounts
received from such tax shall be paid quarterly by the treasurer of state
to the county treasurer upon warrants issued by the auditor of state.
(e) The tax imposed under subsection (a) does not apply to the
renting or furnishing of rooms, lodgings, or accommodations to a
person for a period of thirty (30) days or more.
SOURCE: IC 6-9-2.5-7.5; (07)CC147804.94. -->
SECTION 94. IC 6-9-2.5-7.5, AS AMENDED BY P.L.168-2005,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]: Sec. 7.5. (a) The county treasurer shall establish a
tourism capital improvement fund.
(b) The county treasurer shall deposit money in the tourism capital
improvement fund as follows:
(1) Before January 1, 2000, if the rate set under section 6 of this
chapter is greater than two percent (2%), the county treasurer
shall deposit in the tourism capital improvement fund an amount
equal to the money received under section 6 of this chapter minus
the amount generated by a two percent (2%) rate.
(2) After December 31, 1999, and before January 1, 2003, the
county treasurer shall deposit in the tourism capital improvement
fund the amount of money received under section 6 of this chapter
that is generated by a one percent (1%) rate.
(3) After December 31, 2002, and (1) Before January 1, 2010, the
county treasurer shall deposit in the tourism capital improvement
fund the amount of money received under section 6 of this chapter
that is generated by a one three and one-half percent (1.5%)
(3.5%) rate.
(4) (2) After December 31, 2009, the county treasurer shall
deposit in the tourism capital improvement fund the amount of
money received under section 6 of this chapter that is generated
by a two four and one-half percent (2.5%) (4.5%) rate.
(c) The commission may transfer money in the tourism capital
improvement fund to:
(1) the county government, a city government, or a separate body
corporate and politic in a county described in section 1 of this
chapter; or
(2) any Indiana nonprofit corporation;
for the purpose of making capital improvements in the county that
promote conventions, tourism, or recreation. The commission may
transfer money under this section only after approving the transfer.
Transfers shall be made quarterly or less frequently under this section.
SOURCE: IC 6-9-9-3; (07)CC147804.95. -->
SECTION 95. IC 6-9-9-3 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2007]: Sec. 3. (a) The tax imposed by section
2 of this chapter shall be at the rate of six seven percent (6%) (7%) on
the gross income derived from lodging income only.
(b) At least one-sixth (1/6) two-sevenths (2/7) of the tax proceeds
paid to the capital improvement board of managers under this chapter
must be used to provide grants to the convention and visitor bureau in
the county to be used solely for the purpose of the development and
promotion of the tourism and convention industry within the county.
(c) The capital improvement board of managers may establish
budgetary requirements for the convention and visitors bureau. If the
convention and visitors bureau fails to conform, the board may elect to
suspend funding until the bureau complies.
SOURCE: IC 8-18-21-13; (07)CC147804.96. -->
SECTION 96. IC 8-18-21-13 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 13. The annual
operating budget of a toll road authority is subject to review by the
county board of tax adjustment (before January 1, 2009) or the
county board of tax and capital projects review (after December
31, 2008) and then by the department of local government finance as
in the case of other political subdivisions.
SOURCE: IC 8-22-3.6-3; (07)CC147804.97. -->
SECTION 97. IC 8-22-3.6-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 3. (a) An authority that
is located in a:
(1) city having a population of more than ninety thousand
(90,000) but less than one hundred five thousand (105,000);
(2) county having a population of more than one hundred five
thousand (105,000) but less than one hundred ten thousand
(110,000); or
(3) county having a population of more than three hundred
thousand (300,000) but less than four hundred thousand
(400,000);
may enter into a lease of an airport project with a lessor for a term not
to exceed fifty (50) years and the lease may provide for payments to be
made by the airport authority from property taxes levied under
IC 8-22-3-17, taxes allocated under IC 8-22-3.5-9, any other revenues
available to the airport authority, or any combination of these sources.
(b) A lease may provide that payments by the authority to the lessor
are required only to the extent and only for the period that the lessor is
able to provide the leased facilities in accordance with the lease. The
terms of each lease must be based upon the value of the facilities leased
and may not create a debt of the authority or the eligible entity for
purposes of the Constitution of the State of Indiana.
(c) A lease may be entered into by the authority only after a public
hearing by the board at which all interested parties are provided the
opportunity to be heard. After the public hearing, the board may adopt
an ordinance authorizing the execution of the lease if it finds that the
service to be provided throughout the term of the lease will serve the
public purpose of the authority and is in the best interest of the
residents of the authority district.
(d) Upon execution of a lease providing for payments by the
authority in whole or in part from the levy of property taxes under
IC 8-22-3-17, the board shall publish notice of the execution of the
lease and its approval in accordance with IC 5-3-1. Fifty (50) or more
taxpayers residing in the authority district who will be affected by the
lease and who may be of the opinion that no necessity exists for the
execution of the lease or that the payments provided for in the lease are
not fair and reasonable may file a petition in the office of the county
auditor within thirty (30) days after the publication of the notice of
execution and approval. The petition must set forth the petitioners'
names, addresses, and objections to the lease and the facts showing that
the execution of the lease is unnecessary or unwise or that the
payments provided for in the lease are not fair and reasonable, as the
case may be.
(e) Upon the filing of a petition under subsection (d), the county
auditor shall immediately certify a copy of the petition, together with
any other data necessary to present the questions involved, to the
department of local government finance (before January 1, 2009) or
the county board of tax and capital projects review (after
December 31, 2008). Upon receipt of the certified petition and
information, the department of local government finance or the county
board of tax and capital projects review shall fix a time and place for
a hearing in the authority district, which must be not less than five (5)
or more than thirty (30) days after the time is fixed. Notice of the
hearing shall be given by the department of local government finance
to the members of the board, and to the first fifty (50) petitioners on the
petition, by a letter signed by one (1) member of the state board of tax
commissioners or the county board of tax and capital projects
review and enclosed with fully prepaid postage sent to those persons
at their usual place of residence, at least five (5) days before the date
of the hearing. The decision of the department of local government
finance or the county board of tax and capital projects review on
the appeal, upon the necessity for the execution of the lease, and as to
whether the payments under it are fair and reasonable, is final.
(f) An authority entering into a lease payable from any sources
permitted under this chapter may:
(1) pledge the revenue to make payments under the lease pursuant
to IC 5-1-14-4; or
(2) establish a special fund to make the payments.
(g) Lease rentals may be limited to money in the special fund so that
the obligations of the airport authority to make the lease rental
payments are not considered debt of the unit or the district for purposes
of the Constitution of the State of Indiana.
(h) Except as provided in this section, no approvals of any
governmental body or agency are required before the authority enters
into a lease under this section.
(i) An action to contest the validity of the lease or to enjoin the
performance of any of its terms and conditions must be brought within
thirty (30) days after the later of:
(1) the public hearing described in subsection (c); or
(2) the publication of the notice of the execution and approval of
the lease described in subsection (d), if the lease is payable in
whole or in part from tax levies.
However, if the lease is payable in whole or in part from tax levies and
an appeal has been taken to the department of local government finance
or the county board of tax and capital projects review, an action to
contest the validity or enjoin the performance must be brought within
thirty (30) days after the decision of the department of local
government finance or the county board of tax and capital projects
review.
(j) If an authority exercises an option to buy an airport project from
a lessor, the authority may subsequently sell the airport project, without
regard to any other statute, to the lessor at the end of the lease term at
a price set forth in the lease or at fair market value established at the
time of the sale by the authority through auction, appraisal, or arms
length negotiation. If the airport project is sold at auction, after
appraisal, or through negotiation, the board shall conduct a hearing
after public notice in accordance with IC 5-3-1 before the sale. Any
action to contest the sale must be brought within fifteen (15) days of
the hearing.
SOURCE: IC 12-19-7-3; (07)CC147804.98. -->
SECTION 98. IC 12-19-7-3, AS AMENDED BY P.L.234-2005,
SECTION 56, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 3. (a) A family and children's fund is
established in each county. The fund shall be raised by a separate tax
levy (the county family and children property tax levy) that:
(1) is in addition to all other tax levies authorized; and
(2) shall be levied annually by the county fiscal body on all
taxable property in the county in the amount necessary to raise the
part of the fund that the county must raise to pay the items,
awards, claims, allowances, assistance, and other expenses set
forth in the annual budget under section 6 of this chapter.
(b) The tax imposed under this section shall be collected as other
state and county ad valorem taxes are collected.
(c) The following shall be paid into the county treasury and
constitute the family and children's fund:
(1) All receipts from the tax imposed under this section.
(2) All grants-in-aid, whether received from the federal
government or state government.
(3) Any local option income taxes distributed to the county to
replace growth in the family and children's fund levy.
(3) (4) Any other money required by law to be placed in the fund.
(d) The fund is available for the purpose of paying expenses and
obligations set forth in the annual budget that is submitted and
approved.
(e) Money in the fund at the end of a budget year does not revert to
the county general fund.
SOURCE: IC 12-19-7-4; (07)CC147804.99. -->
SECTION 99. IC 12-19-7-4, AS AMENDED BY P.L.234-2005,
SECTION 57, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 4. (a) Except as provided in subsection (b),
for taxes first due and payable in each year after 2005, each county
shall impose a county family and children property tax levy equal to the
county family and children property tax levy necessary to pay the costs
of the child services of the county for the next fiscal year.
(b) This subsection applies only to property taxes first due and
payable after December 31, 2007. This subsection applies only to
a county for which a county adjusted gross income tax rate is first
imposed or is increased in a particular year under IC 6-3.5-1.1-24
or a county option income tax rate is first imposed or is increased
in a particular year under IC 6-3.5-6-30. Notwithstanding any
provision in this section or any other section of this chapter, for a
county subject to this subsection, the county's family and children
property tax levy under this section for the ensuing calendar year
may not exceed the county's family and children property tax levy
for the current calendar year.
(b) (c) 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 and comply with
IC 6-1.1-17-3.
SOURCE: IC 12-19-7.5-6; (07)CC147804.100. -->
SECTION 100. IC 12-19-7.5-6, AS AMENDED BY P.L.234-2005,
SECTION 69, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 6. (a) Except as provided by subsection (b),
for taxes first due and payable in each year after 2005, each county
shall impose a county children's psychiatric residential treatment
services property tax levy equal to the county children's psychiatric
residential treatment services property tax levy necessary to pay the
costs of children's psychiatric residential treatment services of the
county for the next fiscal year.
(b) This subsection applies only to property taxes first due and
payable after December 31, 2007. This subsection applies only to
a county for which a county adjusted gross income tax rate is first
imposed or is increased in a particular year under IC 6-3.5-1.1-24
or a county option income tax rate is first imposed or is increased
in a particular year under IC 6-3.5-6-30. Notwithstanding any
provision in this section or any other section of this chapter, for a
county subject to this subsection, the maximum county children's
psychiatric residential treatment services property tax levy for the
ensuing calendar year is equal to the maximum county children's
psychiatric residential treatment services property tax levy in the
current year.
(b) (c) 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.
SOURCE: IC 12-29-1-5; (07)CC147804.101. -->
SECTION 101. IC 12-29-1-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 5. All general Indiana
statutes relating to the following apply to the issuance of county bonds
under this chapter:
(1) The filing of a petition requesting the issuance of bonds.
(2) The giving of notice of the following:
(A) The filing of the petition requesting the issuance of the
bonds.
(B) The determination to issue bonds.
(C) A hearing on the appropriation of the proceeds of the
bonds.
(3) The right of taxpayers to appear and be heard on the proposed
appropriation.
(4) The approval of the appropriation by the department of local
government finance (before January 1, 2009) or the county
board of tax and capital projects review (after December 31,
2008).
(5) The right of taxpayers to remonstrate against the issuance of
bonds.
SOURCE: IC 12-29-2-2; (07)CC147804.102. -->
SECTION 102. IC 12-29-2-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2. (a) A county
shall fund the operation of community mental health centers in the
amount determined under subsection (b), unless a lower tax levy
amount will be adequate to fulfill the county's financial obligations
under this chapter in any of the following situations:
(1) If the total population of the county is served by one (1)
center.
(2) If the total population of the county is served by more than one
(1) center.
(3) If the partial population of the county is served by one (1)
center.
(4) If the partial population of the county is served by more than
one (1) center.
(b) The amount of funding under subsection (a) for taxes first due
and payable in a calendar year is the following:
(1) For 2004, the amount is the amount determined under STEP
THREE of the following formula:
STEP ONE: Determine the amount that was levied within the
county to comply with this section from property taxes first
due and payable in 2002.
STEP TWO: Multiply the STEP ONE result by the county's
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) Except as provided in subsection (c), for 2005 and each year
thereafter, the result equal to:
(A) the amount that was levied 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) the county's assessed value growth quotient for the ensuing
calendar year, as determined under IC 6-1.1-18.5-2.
(c) This subsection applies only to property taxes first due and
payable after December 31, 2007. This subsection applies only to
a county for which a county adjusted gross income tax rate is first
imposed or is increased in a particular year under IC 6-3.5-1.1-24
or a county option income tax rate is first imposed or is increased
in a particular year under IC 6-3.5-6-30. Notwithstanding any
provision in this section or any other section of this chapter, for a
county subject to this subsection, the county's maximum property
tax levy under this section to fund the operation of community
mental health centers for the ensuing calendar year is equal to the
county's maximum property tax levy to fund the operation of
community mental health centers for the current calendar year.
SOURCE: IC 13-18-8-2; (07)CC147804.103. -->
SECTION 103. IC 13-18-8-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2. (a) If the
offender is a municipal corporation, the cost of:
(1) acquisition, construction, repair, alteration, or extension of the
necessary plants, machinery, or works; or
(2) taking other steps that are necessary to comply with the order;
shall be paid out of money on hand available for these purposes or out
of the general money of the municipal corporation not otherwise
appropriated.
(b) If there is not sufficient money on hand or unappropriated, the
necessary money shall be raised by the issuance of bonds. The bond
issue is subject only to the approval of the department of local
government finance (before January 1, 2009) or the county board of
tax and capital projects review (after December 31, 2008).
SOURCE: IC 14-30-2-19; (07)CC147804.104. -->
SECTION 104. IC 14-30-2-19 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 19. The commission
shall prepare an annual budget for the commission's operation and
other expenditures under IC 6-1.1-17. However, the annual budget is
not subject to review and modification by the county board of tax
adjustment (before January 1, 2009) or the county board of tax and
capital projects review (after December 31, 2008) of any county.
Notwithstanding any other law, the budget of the commission shall be
treated for all other purposes as if the appropriate county board of tax
adjustment (before January 1, 2009) or the county board of tax and
capital projects review (after December 31, 2008) had approved the
budget.
SOURCE: IC 14-30-4-16; (07)CC147804.105. -->
SECTION 105. IC 14-30-4-16 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 16. (a) The commission
shall prepare an annual budget for the commission's operation and
other expenditures under IC 6-1.1-17. The annual budget is subject to
review and modification by the county board of tax adjustment (before
January 1, 2009) or the county board of tax and capital projects
review (after December 31, 2008) of any participating county.
(b) The commission is not eligible for funding through the Wabash
River heritage corridor commission established by IC 14-13-6-6.
SOURCE: IC 14-33-9-1; (07)CC147804.106. -->
SECTION 106. IC 14-33-9-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 1. (a) The budget of a
district:
(1) must be prepared and submitted:
(A) at the same time;
(B) in the same manner; and
(C) with notice;
as is required by statute for the preparation of budgets by
municipalities; and
(2) is subject to the same review by:
(A) the county board of tax adjustment (before January 1,
2009) or the county board of tax and capital projects
review (after December 31, 2008); and
(B) the department of local government finance;
as is required by statute for the budgets of municipalities.
(b) If a district is established in more than one (1) county:
(1) except as provided in subsection (c), the budget shall be
certified to the auditor of the county in which is located the court
that had exclusive jurisdiction over the establishment of the
district; and
(2) notice must be published in each county having land in the
district. Any taxpayer in the district is entitled to be heard before
the county board of tax adjustment (before January 1, 2009) or
the county board of tax and capital projects review (after
December 31, 2008) having jurisdiction.
(c) If one (1) of the counties in a district contains either a first or
second class city located in whole or in part in the district, the budget:
(1) shall be certified to the auditor of that county; and
(2) is subject to review at the county level only by the county
board of tax adjustment (before January 1, 2009) or the county
board of tax and capital projects review (after December 31,
2008) of that county.
SOURCE: IC 20-45-2-3; (07)CC147804.107. -->
SECTION 107. IC 20-45-2-3, AS ADDED BY P.L.2-2006,
SECTION 168, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2007]: Sec. 3. (a) A school corporation that did
not impose a general fund tax levy for the preceding calendar year may
not collect a general fund tax levy for the ensuing calendar year until
the general fund tax levy (and the related budget, appropriations, and
general fund tax rate), after being adopted and advertised, is:
(1) considered by the proper county board of tax adjustment
(before January 1, 2009) or the county board of tax and
capital projects review (after December 31, 2008) as provided
by law;
(2) reviewed by the tax control board, which shall make its
recommendations in respect to the general fund tax levy to the
department; and
(3) approved by the department of local government finance.
(b) For purposes of this article, the school corporation's initial
maximum permissible tuition support levy must be based on the taxes
collectible in the first full calendar year after the approval.
(c) If territory is transferred from one (1) school corporation to
another under IC 20-4-4 (before its repeal), IC 20-3-14 (before its
repeal), IC 20-23-5, or IC 20-25-5, maximum permissible tuition
support levy and the other terms used in this article shall be interpreted
as though the assessed valuation of the territory had been transferred
before March 1, 1977, in accordance with rules and a final
determination by the department of local government finance.
SOURCE: IC 20-45-4-1; (07)CC147804.108. -->
SECTION 108. IC 20-45-4-1, AS ADDED BY P.L.2-2006,
SECTION 168, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2007]: Sec. 1. A county board of tax adjustment
(before January 1, 2009) or the county board of tax and capital
projects review (after December 31, 2008) may not approve or
recommend the approval of an excessive tax levy.
SOURCE: IC 20-45-4-2; (07)CC147804.109. -->
SECTION 109. IC 20-45-4-2, AS ADDED BY P.L.2-2006,
SECTION 168, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2007]: Sec. 2. If a school corporation adopts or
advertises an excessive tax levy, the county board of tax adjustment
(before January 1, 2009) or the county board of tax and capital
projects review (after December 31, 2008) that reviews the school
corporation's budget, tax levy, and tax rate shall reduce the excessive
tax levy to the maximum permissible tuition support levy.
SOURCE: IC 20-45-4-3; (07)CC147804.110. -->
SECTION 110. IC 20-45-4-3, AS ADDED BY P.L.2-2006,
SECTION 168, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2007]: Sec. 3. If a county board of tax
adjustment (before January 1, 2009) or the county board of tax and
capital projects review (after December 31, 2008) approves or
recommends the approval of an excessive tax levy for a school
corporation, the auditor of the county for which the county board of tax
adjustment (before January 1, 2009) or the county board of tax and
capital projects review (after December 31, 2008) is acting shall
reduce the excessive tax levy to the maximum permissible tuition
support levy. The reduction shall be set out in the notice required to be
published by the county auditor under IC 6-1.1-17-12. An appeal shall
be permitted as provided under IC 6-1.1-17 as modified by IC 6-1.1-19
and this article.
SOURCE: IC 20-45-4-4; (07)CC147804.111. -->
SECTION 111. IC 20-45-4-4, AS ADDED BY P.L.2-2006,
SECTION 168, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2007]: Sec. 4. Appeals from any action of a
county board of tax adjustment (before January 1, 2009), the county
board of tax and capital projects review (after December 31, 2008),
or a county auditor concerning a school corporation's budget, property
tax levy, or property tax rate may be taken as provided for by
IC 6-1.1-17 and IC 6-1.1-19. Notwithstanding IC 6-1.1-17 and
IC 6-1.1-19, a school corporation may appeal to the department of local
government finance for emergency financial relief for the ensuing
calendar year at any time before:
(1) September 20; or
(2) in the case of a request described in IC 20-45-6-5 or
IC 20-46-6-6, December 31;
of the calendar year immediately preceding the ensuing calendar year.
SOURCE: IC 20-45-5-3; (07)CC147804.112. -->
SECTION 112. IC 20-45-5-3, AS ADDED BY P.L.2-2006,
SECTION 168, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2007]: Sec. 3. The tax control board shall, after
the tax control board studies the appeal petition and related materials,
recommend to the department of local government finance that:
(1) the order of the county board of tax adjustment (before
January 1, 2009), the county board of tax and capital projects
review (after December 31, 2008), or the county auditor, in
respect of the appellant school corporation's budget, tax levy, or
tax rate for the ensuing calendar year, be approved;
(2) the order of the county board of tax adjustment (before
January 1, 2009), the county board of tax and capital projects
review (after December 31, 2008), or the county auditor
concerning the appellant school corporation's budget, tax levy, or
tax rate for the calendar year be disapproved and that the
appellant school corporation's budget, tax levy, or tax rate for the
calendar year be:
(A) reduced; or
(B) increased;
as specified in the tax control board's recommendation; or
(3) combined with a recommendation allowed under subdivision
(1) or (2), a new facility adjustment be granted to permit the
school corporation's tuition support levy to be increased if the
school corporation can show a need for the increase because of:
(A) the opening after December 31, 1972, of a new school
facility; or
(B) the reopening after July 1, 1988, of an existing facility
that:
(i) was not used for at least three (3) years immediately
before the reopening; and
(ii) is reopened to provide additional classroom space.
SOURCE: IC 20-45-6-2; (07)CC147804.113. -->
SECTION 113. IC 20-45-6-2, AS ADDED BY P.L.2-2006,
SECTION 168, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2007]: Sec. 2. (a) This section applies with
respect to every appeal petition of a school corporation that:
(1) is delivered to the tax control board by the department of local
government finance under IC 6-1.1-19-4.1; and
(2) includes a request for emergency financial relief.
(b) This section does not apply to an appeal petition described in
section 5 or 6 of this chapter.
(c) The tax control board shall, after studying the appeal petition
and related materials, make an appropriate recommendation to the
department of local government finance.
(d) If the appeal petition requests a referendum under IC 20-46-1,
the tax control board shall expedite the tax control board's review as
necessary to permit the referendum to be conducted without a special
election.
(e) In respect to the appeal petition, the tax control board may make
to the department of local government finance any of the
recommendations described in IC 20-45-5-3, subject to the limitations
described in IC 20-45-5-6.
(f) In addition to a recommendation under subsection (c) or (e), if
the tax control board concludes that the appellant school corporation
cannot, in a calendar year, carry out the public educational duty
committed to the appellant school corporation by law if the appellant
school corporation does not receive emergency financial relief for the
calendar year, the tax control board may recommend to the department
of local government finance that:
(1) the order of the county board of tax adjustment (before
January 1, 2009), the county board of tax and capital projects
review (after December 31, 2008), or the county auditor in
respect of the budget, tax levy, or tax rate of the appellant school
corporation be:
(A) approved; or
(B) disapproved and modified;
as specified in the tax control board's recommendation; and
(2) the appellant school corporation receive emergency financial
relief from the state:
(A) on terms to be specified by the tax control board in the tax
control board's recommendation; and
(B) in the form permitted under subsection (g).
(g) The tax control board may recommend emergency financial
relief for a school corporation under subsection (f) in the form of:
(1) a grant or grants from any funds of the state that are available
for that purpose;
(2) a loan or loans from any funds of the state that are available
for that purpose;
(3) permission to the appellant school corporation to borrow funds
from a source other than the state or assistance in obtaining the
loan;
(4) an advance or advances of funds that will become payable to
the appellant school corporation under any law providing for the
payment of state funds to school corporations;
(5) permission to the appellant school corporation to:
(A) cancel any unpaid obligation of the appellant school
corporation's general fund to the appellant school corporation's
capital projects fund; or
(B) use for general fund purposes:
(i) any unobligated balance in the appellant school
corporation's capital projects fund; and
(ii) the proceeds of any levy made or to be made by the
school corporation for;
the school corporation's capital projects fund;
(6) permission to use, for general fund purposes, any unobligated
balance in any debt service or other construction fund, including
any unobligated proceeds of a sale of the school corporation's
general obligation bonds; or
(7) a combination of the emergency financial relief described in
subdivisions (1) through (6).
SOURCE: IC 20-45-7-20; (07)CC147804.114. -->
SECTION 114. IC 20-45-7-20, AS ADDED BY P.L.2-2006,
SECTION 168, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2007]: Sec. 20. (a) The county auditor shall
compute the amount of the tax to be levied each year. Before August
2, the county auditor shall certify the amount to the county council.
(b) The tax rate shall be advertised and fixed by the county council
in the same manner as other property tax rates. The tax rate shall be
subject to all applicable law relating to review by the county board of
tax adjustment (before January 1, 2009) or the county board of tax
and capital projects review (after December 31, 2008) and the
department of local government finance.
(c) The department of local government finance shall certify the tax
rate at the time it certifies the other county tax rates.
(d) The department of local government finance shall raise or lower
the tax rate to the tax rate provided in this chapter, regardless of
whether the certified tax rate is below or above the tax rate advertised
by the county.
SOURCE: IC 20-45-8-20; (07)CC147804.115. -->
SECTION 115. IC 20-45-8-20, AS ADDED BY P.L.2-2006,
SECTION 168, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2007]: Sec. 20. The tax levy is subject to all
laws concerning review by the county board of tax adjustment (before
January 1, 2009) or the county board of tax and capital projects
review (after December 31, 2008) and the department of local
government finance.
SOURCE: IC 20-46-7-8; (07)CC147804.116. -->
SECTION 116. IC 20-46-7-8, AS AMENDED BY P.L.192-2006,
SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]: Sec. 8. (a) A school corporation must file a petition
requesting approval from the department of local government finance
to:
(1) incur bond indebtedness;
(2) enter into a lease rental agreement; or
(3) repay from the debt service fund loans made for the purchase
of school buses under IC 20-27-4-5;
not later than twenty-four (24) months after the first date of publication
of notice of a preliminary determination under IC 6-1.1-20-3.1(2),
unless the school corporation demonstrates that a longer period is
reasonable in light of the school corporation's facts and circumstances.
(b) A school corporation must obtain approval from the department
of local government finance before the school corporation may:
(1) incur the indebtedness;
(2) enter into the lease agreement; or
(3) repay the school bus purchase loan.
(c) This restriction does not apply to property taxes that a school
corporation levies to pay or fund bond or lease rental indebtedness
created or incurred before July 1, 1974. In addition, this restriction does
not apply to a lease agreement or a purchase agreement entered into
between a school corporation and the Indiana bond bank for the lease
or purchase of a school bus under IC 5-1.5-4-1(a)(5), if the lease
agreement or purchase agreement conforms with the school
corporation's ten (10) year school bus replacement plan approved by
the department of local government finance under IC 21-2-11.5-3.1.
(d) This section does not apply to:
(1) school bus purchase loans made by a school corporation that
will be repaid solely from the general fund of the school
corporation; or
(2) bonded indebtedness incurred or lease rental agreements
entered into for capital projects approved by a county board
of tax and capital projects review under IC 6-1.1-29.5 after
December 31, 2008.
SOURCE: IC 20-46-7-9; (07)CC147804.117. -->
SECTION 117. IC 20-46-7-9, AS ADDED BY P.L.2-2006,
SECTION 169, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2007]: Sec. 9. (a) This section applies only to
an obligation described in section 8 of this chapter. This section does
not apply to bonded indebtedness incurred or lease rental
agreements entered into for capital projects approved by a county
board of tax and capital projects review under IC 6-1.1-29.5 after
December 31, 2008.
(b) The department of local government finance may:
(1) approve;
(2) disapprove; or
(3) modify then approve;
a school corporation's proposed lease rental agreement, bond issue, or
school bus purchase loan. Before the department of local government
finance approves or disapproves a proposed lease rental agreement,
bond issue, or school bus purchase loan, the department of local
government finance may seek the recommendation of the tax control
board.
(c) The department of local government finance shall render a
decision not more than three (3) months after the date the department
of local government finance receives a request for approval under
section 8 of this chapter. However, the department of local government
finance may extend this three (3) month period by an additional three
(3) months if, at least ten (10) days before the end of the original three
(3) month period, the department of local government finance sends
notice of the extension to the executive officer of the school
corporation.
SOURCE: IC 20-46-7-10; (07)CC147804.118. -->
SECTION 118. IC 20-46-7-10, AS ADDED BY P.L.2-2006,
SECTION 169, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2007]: Sec. 10. (a) This section applies only to
an obligation described in section 8 of this chapter.
This section does
not apply to bonded indebtedness incurred or lease rental
agreements entered into for capital projects approved by a county
board of tax and capital projects review under IC 6-1.1-29.5 after
December 31, 2008.
(b) The department of local government finance may not approve a
school corporation's proposed lease rental agreement or bond issue to
finance the construction of additional classrooms unless the school
corporation first:
(1) establishes that additional classroom space is necessary; and
(2) conducts a feasibility study, holds public hearings, and hears
public testimony on using a twelve (12) month school term
(instead of the nine (9) month school term (as defined in
IC 20-30-2-7)) rather than expanding classroom space.
(c) A taxpayer may petition for judicial review of the final
determination of the department of local government finance under this
section. The petition must be filed in the tax court not more than thirty
(30) days after the department of local government finance enters its
order under this section.
SOURCE: IC 20-46-7-14; (07)CC147804.119. -->
SECTION 119. IC 20-46-7-14 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE MAY 15, 2007 (RETROACTIVE)]: Sec. 14. After May
15, 2007, the department of local government finance may not
approve under section 9 of this chapter a school corporation's
proposed:
(1) bond issue that does not provide for payments toward the
principal of the bonds on at least an annual basis in the
amount determined under the rules or guidelines adopted by
the department of local government finance;
(2) lease rental agreement that does not provide for
repayments toward the present asset value of the lease at its
inception on at least an annual basis in the amount
determined under the rules or guidelines adopted by the
department of local government finance; or
(3) debt service fund loan to purchase school buses that does
not provide for payments toward the principal of the loan on
at least an annual basis in the amount determined under the
rules or guidelines adopted by the department of local
government finance.
SOURCE: IC 33-37-7-8; (07)CC147804.120. -->
SECTION 120. IC 33-37-7-8, AS AMENDED BY P.L.174-2006,
SECTION 17, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]: Sec. 8. (a) The clerk of a city or town court shall
distribute semiannually to the auditor of state as the state share for
deposit in the state general fund fifty-five percent (55%) of the amount
of fees collected under the following:
(1) IC 33-37-4-1(a) (criminal costs fees).
(2) IC 33-37-4-2(a) (infraction or ordinance violation costs fees).
(3) IC 33-37-4-4(a) (civil costs fees).
(4) IC 33-37-4-6(a)(1)(A) (small claims costs fees).
(5) IC 33-37-5-17 (deferred prosecution fees).
(b) The city or town fiscal officer shall distribute monthly to the
county auditor as the county share twenty percent (20%) of the amount
of fees collected under the following:
(1) IC 33-37-4-1(a) (criminal costs fees).
(2) IC 33-37-4-2(a) (infraction or ordinance violation costs fees).
(3) IC 33-37-4-4(a) (civil costs fees).
(4) IC 33-37-4-6(a)(1)(A) (small claims costs fees).
(5) IC 33-37-5-17 (deferred prosecution fees).
(c) The city or town fiscal officer shall retain twenty-five percent
(25%) as the city or town share of the fees collected under the
following:
(1) IC 33-37-4-1(a) (criminal costs fees).
(2) IC 33-37-4-2(a) (infraction or ordinance violation costs fees).
(3) IC 33-37-4-4(a) (civil costs fees).
(4) IC 33-37-4-6(a)(1)(A) (small claims costs fees).
(5) IC 33-37-5-17 (deferred prosecution fees).
(d) The clerk of a city or town court shall distribute semiannually to
the auditor of state for deposit in the state user fee fund established in
IC 33-37-9 the following:
(1) Twenty-five percent (25%) of the drug abuse, prosecution,
interdiction, and corrections correction fees collected under
IC 33-37-4-1(b)(5).
(2) Twenty-five percent (25%) of the alcohol and drug
countermeasures fees collected under IC 33-37-4-1(b)(6),
IC 33-37-4-2(b)(4), and IC 33-37-4-3(b)(5).
(3) One hundred percent (100%) of the highway work zone fees
collected under IC 33-37-4-1(b)(9) and IC 33-37-4-2(b)(5).
(4) One hundred percent (100%) of the safe schools fee collected
under IC 33-37-5-18.
(5) One hundred percent (100%) of the automated record keeping
fee (IC 33-37-5-21).
(e) The clerk of a city or town court shall distribute monthly to the
county auditor the following:
(1) Seventy-five percent (75%) of the drug abuse, prosecution,
interdiction, and corrections fees collected under
IC 33-37-4-1(b)(5).
(2) Seventy-five percent (75%) of the alcohol and drug
countermeasures fees collected under IC 33-37-4-1(b)(6),
IC 33-37-4-2(b)(4), and IC 33-37-4-3(b)(5).
The county auditor shall deposit fees distributed by a clerk under this
subsection into the county drug free community fund established under
IC 5-2-11.
(f) The clerk of a city or town court shall distribute monthly to the
city or town fiscal officer (as defined in IC 36-1-2-7) one hundred
percent (100%) of the following:
(1) The late payment fees collected under IC 33-37-5-22.
(2) The small claims service fee collected under
IC 33-37-4-6(a)(1)(B) or IC 33-37-4-6(a)(2).
(3) The small claims garnishee service fee collected under
IC 33-37-4-6(a)(1)(C) or IC 33-37-4-6(a)(3).
The city or town fiscal officer (as defined in IC 36-1-2-7) shall deposit
fees distributed by a clerk under this subsection in the city or town
general fund.
(g) The clerk of a city or town court shall semiannually distribute to
the auditor of state for deposit in the state general fund one hundred
percent (100%) of the following:
(1) The public defense administration fee collected under
IC 33-37-5-21.2.
(2) The DNA sample processing fees collected under
IC 33-37-5-26.2.
(3) The court administration fees collected under IC 33-37-5-27.
(h) The clerk of a city or town court shall semiannually distribute to
the auditor of state for deposit in the judicial branch insurance
adjustment account established by IC 33-38-5-8.2 one hundred percent
(100%) of the judicial insurance adjustment fee collected under
IC 33-37-5-25.
(i) The clerk of a city or town court shall semiannually distribute to
the auditor of state for deposit in the state general fund seventy-five
percent (75%) of the judicial salaries fee collected under
IC 33-37-5-26. The city or town fiscal officer shall retain twenty-five
percent (25%) of the judicial salaries fee collected under
IC 33-37-5-26. as the city or town share. The funds retained by the
city or town shall be prioritized to fund city or town court
operations.
SOURCE: IC 36-7-14-27.5; (07)CC147804.121. -->
SECTION 121. IC 36-7-14-27.5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 27.5. (a) The
redevelopment commission may borrow money in anticipation of
receipt of the proceeds of taxes levied for the redevelopment district
bond fund and not yet collected, and may evidence this borrowing by
issuing warrants of the redevelopment district. However, the aggregate
principal amount of warrants issued in anticipation of and payable from
the same tax levy or levies may not exceed an amount equal to eighty
percent (80%) of that tax levy or levies, as certified by the department
of local government finance, or as determined by multiplying the rate
of tax as finally approved by the total assessed valuation (after
deducting all mortgage deductions) within the redevelopment district,
as most recently certified by the county auditor.
(b) The warrants may be authorized and issued at any time after the
tax or taxes in anticipation of which they are issued have been levied
by the redevelopment commission. For purposes of this section, taxes
for any year are considered to be levied upon adoption by the
commission of a resolution prescribing the tax levies for the year.
However, the warrants may not be delivered and paid for before final
approval of the tax levy or levies by the county board of tax adjustment
(before January 1, 2009), the county board of tax and capital
projects review (after December 31, 2008), or, if appealed, by the
department of local government finance, unless the issuance of the
warrants has been approved by the department.
(c) All action that this section requires or authorizes the
redevelopment commission to take may be taken by resolution, which
need not be published or posted. The resolution takes effect
immediately upon its adoption by the redevelopment commission. An
action to contest the validity of tax anticipation warrants may not be
brought later than ten (10) days after the sale date.
(d) In their resolution authorizing the warrants, the redevelopment
commission must provide that the warrants mature at a time or times
not later than December 31 after the year in which the taxes in
anticipation of which the warrants are issued are due and payable.
(e) In their resolution authorizing the warrants, the redevelopment
commission may provide:
(1) the date of the warrants;
(2) the interest rate of the warrants;
(3) the time of interest payments on the warrants;
(4) the denomination of the warrants;
(5) the form either registered or payable to bearer, of the warrants;
(6) the place or places of payment of the warrants, either inside or
outside the state;
(7) the medium of payment of the warrants;
(8) the terms of redemption, if any, of the warrants, at a price not
exceeding par value and accrued interest;
(9) the manner of execution of the warrants; and
(10) that all costs incurred in connection with the issuance of the
warrants may be paid from the proceeds of the warrants.
(f) The warrants shall be sold for not less than par value, after notice
inviting bids has been published under IC 5-3-1. The redevelopment
commission may also publish the notice in other newspapers or
financial journals.
(g) Warrants and the interest on them are not subject to any
limitation contained in section 25.1 of this chapter, and are payable
solely from the proceeds of the tax levy or levies in anticipation of
which the warrants were issued. The authorizing resolution must
pledge a sufficient amount of the proceeds of the tax levy or levies to
the payment of the warrants and the interest.
SOURCE: IC 36-7-15.1-26.9; (07)CC147804.122. -->
SECTION 122. IC 36-7-15.1-26.9, AS AMENDED BY P.L.2-2006,
SECTION 192, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2007]: Sec. 26.9. (a) The definitions set forth
in section 26.5 of this chapter apply to this section.
(b) The fiscal officer of the consolidated city shall publish in the
newspaper in the county with the largest circulation all determinations
made under section 26.5 or 26.7 of this chapter that result in the
allowance or disallowance of credits. The publication of a
determination made under section 26.5 of this chapter shall be made
not later than June 20 of the year in which the determination is made.
The publication of a determination made under section 26.7 of this
chapter shall be made not later than December 5 of the year in which
the determination is made.
(c) If credits are granted under section 26.5(g) or 26.5(h) of this
chapter, whether in whole or in part, property taxes on personal
property (as defined in IC 6-1.1-1-11) that are equal to the aggregate
amounts of the credits for all taxpayers in the allocation area under
section 26.5(g) and 26.5(h) of this chapter shall be:
(1) allocated to the redevelopment district;
(2) paid into the special fund for that allocation area; and
(3) used for the purposes specified in section 26 of this chapter.
(d) The county auditor shall adjust the estimate of assessed
valuation that the auditor certifies under IC 6-1.1-17-1 for all taxing
units in which the allocation area is located. The county auditor may
amend this adjustment at any time before the earliest date a taxing unit
must publish the unit's proposed property tax rate under IC 6-1.1-17-3
in the year preceding the year in which the credits under section
26.5(g) or 26.5(h) of this chapter are paid. The auditor's adjustment to
the assessed valuation shall be:
(1) calculated to produce an estimated assessed valuation that will
offset the effect that paying personal property taxes into the
allocation area special fund under subsection (c) would otherwise
have on the ability of a taxing unit to achieve the taxing unit's tax
levy in the following year; and
(2) used by the county board of tax adjustment
(before January
1, 2009) or the county board of tax and capital projects review
(after December 31, 2008), the department of local government
finance, and each taxing unit in determining each taxing unit's tax
rate and tax levy in the following year.
(e) The amount by which a taxing unit's levy is adjusted as a result
of the county auditor's adjustment of assessed valuation under
subsection (d), and the amount of the levy that is used to make direct
payments to taxpayers under section 26.5(h) of this chapter, is not part
of the total county tax levy under IC 6-1.1-21-2(g) and is not subject to
IC 6-1.1-20.
(f) The ad valorem property tax levy limits imposed by
IC 6-1.1-18.5-3 and IC 20-45-3 do not apply to ad valorem property
taxes imposed that are used to offset the effect of paying personal
property taxes into an allocation area special fund during the taxable
year under subsection (d) or to make direct payments to taxpayers
under section 26.5(h) of this chapter. For purposes of computing the ad
valorem property tax levy limits imposed under IC 6-1.1-18.5-3 and
IC 20-45-3, a taxing unit's ad valorem property tax levy for a particular
calendar year does not include that part of the levy imposed to offset
the effect of paying personal property taxes into an allocation area
special fund under subsection (d) or to make direct payments to
taxpayers under section 26.5(h) of this chapter.
(g) Property taxes on personal property that are deposited in the
allocation area special fund:
(1) are subject to any pledge of allocated property tax proceeds
made by the redevelopment district under section 26(d) of this
chapter, including but not limited to any pledge made to owners
of outstanding bonds of the redevelopment district of allocated
taxes from that area; and
(2) may not be treated as property taxes used to pay interest or
principal due on debt under IC 6-1.1-21-2(g)(1)(D).
SOURCE: IC 36-8-6-5; (07)CC147804.123. -->
SECTION 123. IC 36-8-6-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 5. (a) If the local board
determines that the total amount of money available for a year will be
insufficient to pay the benefits, pensions, and retirement allowances the
local board is obligated to pay under this chapter, the local board shall,
before the date on which the budget of the municipality is adopted,
prepare an itemized estimate in the form prescribed by the state board
of accounts of the amount of money that will be receipted into and
disbursed from the 1925 fund during the next fiscal year. The estimated
receipts consist of the items enumerated in section 4(a) of this chapter.
The estimated disbursements consist of an estimate of the amount of
money that will be needed by the local board during the next fiscal year
to defray the expenses and obligations incurred and that will be
incurred by the local board in making the payments prescribed by this
chapter to retired members, to members who are eligible to and expect
to retire during the ensuing fiscal year, and to the dependents of
deceased members.
(b) The local board may provide in its annual budget and pay all
necessary expenses of operating the 1925 fund, including the payment
of all costs of litigation and attorney fees arising in connection with the
fund, as well as the payment of benefits and pensions. Notwithstanding
any other law, neither the municipal legislative body, the county board
of tax adjustment (before January 1, 2009), the county board of tax
and capital projects review (after December 31, 2008), nor the
department of local government finance may reduce an item of
expenditure.
(c) At the time when the estimates are prepared and submitted, the
local board shall also prepare and submit a certified statement showing:
(1) the name, age, and date of retirement of each retired member
and the monthly and yearly amount of the payment to which the
retired member is entitled;
(2) the name and age of each member who is eligible to and
expects to retire during the next fiscal year, the date on which the
member expects to retire, and the monthly and yearly amount of
the payment that the member will be entitled to receive; and
(3) the name and age of each dependent, the date on which the
dependent became a dependent, the date on which the dependent
will cease to be a dependent by reason of attaining the age at
which dependents cease to be dependents, and the monthly and
yearly amount of the payment to which the dependent is entitled.
(d) The total receipts shall be deducted from the total expenditures
stated in the itemized estimate and the amount of the excess of the
estimated expenditures over the estimated receipts shall be paid by the
municipality in the same manner as other expenses of the municipality
are paid. A tax levy shall be made annually for this purpose, as
provided in subsection (e). The estimates submitted shall be prepared
and filed in the same manner and form and at the same time that
estimates of other municipal offices and departments are prepared and
filed.
(e) The municipal legislative body shall levy an annual tax in the
amount and at the rate that are necessary to produce the revenue to pay
that part of the police pensions that the municipality is obligated to pay.
All money derived from the levy is for the exclusive use of the police
pensions and benefits. The amounts in the estimated disbursements, if
found to be correct and in conformity with the data submitted in the
certified statement, are a binding obligation upon the municipality. The
legislative body shall make a levy for them that will yield an amount
equal to the estimated disbursements, less the amount of the estimated
receipts. Notwithstanding any other law, neither the county board of tax
adjustment (before January 1, 2009), the county board of tax and
capital projects review (after December 31, 2008), nor the
department of local government finance may reduce the levy.
SOURCE: IC 36-8-7-14; (07)CC147804.124. -->
SECTION 124. IC 36-8-7-14 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 14. (a) The local board
shall meet annually and prepare an itemized estimate, in the form
prescribed by the state board of accounts, of the amount of money that
will be receipted into and disbursed from the 1937 fund during the next
fiscal year. The estimated receipts consist of the items enumerated in
section 8 of this chapter. The estimated disbursements must be divided
into two (2) parts, designated as part 1 and part 2.
(b) Part 1 of the estimated disbursements consists of an estimate of
the amount of money that will be needed by the local board during the
next fiscal year to defray the expenses and obligations incurred and that
will be incurred by the local board in making the payments prescribed
by this chapter to retired members, to members who are eligible to and
expect to retire during the next fiscal year, and to the dependents of
deceased members. Part 2 of the estimated disbursements consists of
an estimate of the amount of money that will be needed to pay death
benefits and other expenditures that are authorized or required by this
chapter.
(c) At the time when the estimates are prepared and submitted, the
local board shall also prepare and submit a certified statement showing
the following:
(1) The name, age, and date of retirement of each retired member
and the monthly and yearly amount of the payment to which the
retired member is entitled.
(2) The name and age of each member who is eligible to and
expects to retire during the next fiscal year, the date on which the
member expects to retire, and the monthly and yearly amount of
the payment that the member will be entitled to receive.
(3) The name and the age of each dependent, the date on which
the dependent became a dependent, the date on which the
dependent will cease to be a dependent by reason of attaining the
age at which dependents cease to be dependents, and the monthly
and yearly amount of the payment to which the dependent is
entitled.
(4) The amount that would be required for the next fiscal year to
maintain level cost funding during the active fund members'
employment on an actuarial basis.
(5) The amount that would be required for the next fiscal year to
amortize accrued liability for active members, retired members,
and dependents over a period determined by the local board, but
not to exceed forty (40) years.
(d) The total receipts shall be deducted from the total expenditures
as listed in the itemized estimate. The amount of the excess of the
estimated expenditures over the estimated receipts shall be paid by the
unit in the same manner as other expenses of the unit are paid, and an
appropriation shall be made annually for that purpose. The estimates
submitted shall be prepared and filed in the same manner and form and
at the same time that estimates of other offices and departments of the
unit are prepared and filed.
(e) The estimates shall be made a part of the annual budget of the
unit. When revising the estimates, the executive, the fiscal officer, and
other fiduciary officers may not reduce the items in part 1 of the
estimated disbursements.
(f) The unit's fiscal body shall make the appropriations necessary to
pay that proportion of the budget of the 1937 fund that the unit is
obligated to pay under subsection (d). In addition, the fiscal body may
make appropriations for purposes of subsection (c)(4), (c)(5), or both.
All appropriations shall be made to the local board for the exclusive
use of the 1937 fund. The amounts listed in part 1 of the estimated
disbursements, if found to be correct and in conformity with the data
submitted in the certified statement, are a binding obligation upon the
unit. Notwithstanding any other law, neither the county board of tax
adjustment (before January 1, 2009), the county board of tax and
capital projects review (after December 31, 2008), nor the
department of local government finance may reduce the appropriations
made to pay the amount equal to estimated disbursements minus
estimated receipts.
SOURCE: IC 36-8-7-22; (07)CC147804.125. -->
SECTION 125. IC 36-8-7-22 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 22. The 1937 fund may
not be, either before or after an order for distribution to members of the
fire department or to the surviving spouses or guardians of a child or
children of a deceased, disabled, or retired member, held, seized, taken,
subjected to, detained, or levied on by virtue of an attachment,
execution, judgment, writ, interlocutory or other order, decree, or
process, or proceedings of any nature issued out of or by a court in any
state for the payment or satisfaction, in whole or in part, of a debt,
damages, demand, claim, judgment, fine, or amercement of the
member or the member's surviving spouse or children. The 1937 fund
shall be kept and distributed only for the purpose of pensioning the
persons named in this chapter. The local board may, however, annually
expend an amount from the 1937 fund that it considers proper for the
necessary expenses connected with the fund. Notwithstanding any
other law, neither the fiscal body, the county board of tax adjustment
(before January 1, 2009), the county board of tax and capital
projects review (after December 31, 2008), nor the department of
local government finance may reduce these expenditures.
SOURCE: IC 36-8-7.5-10; (07)CC147804.126. -->
SECTION 126. IC 36-8-7.5-10 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 10. (a) If the local
board determines that the total amount of money available for a year
will be insufficient to pay the benefits, pensions, and retirement
allowances the local board is obligated to pay under this chapter, the
local board shall, before the date on which the budget of the police
special service district is adopted, prepare an itemized estimate in the
form prescribed by the state board of accounts of the amount of money
that will be receipted into and disbursed from the 1953 fund during the
next fiscal year. The estimated receipts consist of the items enumerated
in section 8 of this chapter. The estimated disbursements consist of an
estimate of the amount of money that will be needed by the local board
during the next fiscal year to defray the expenses and obligations
incurred and that will be incurred by the local board in making the
payments prescribed by this chapter to retired members, to members
who are eligible and expect to retire during the ensuing fiscal year, and
to the dependents of deceased members.
(b) At the time when the estimates are prepared and submitted, the
local board shall also prepare and submit a certified statement showing:
(1) the estimated number of beneficiaries from the 1953 fund
during the ensuing fiscal year in each of the various
classifications of beneficiaries as prescribed in this chapter, and
the names and amount of benefits being paid to those actively on
the list of beneficiaries at that time;
(2) the name, age, and length of service of each member of the
police department who is eligible to and expects to retire during
the ensuing fiscal year, and the monthly and yearly amounts of the
payment that the member will be entitled to receive; and
(3) the name and age of each dependent of a member of the police
department who is then receiving benefits, the date on which the
dependent commenced drawing benefits, and the date on which
the dependent will cease to be a dependent by reason of attaining
the age limit prescribed by this chapter, and the monthly and
yearly amounts of the payments to which each of the dependents
is entitled.
(c) After the amounts of receipts and disbursements shown in the
itemized estimate are fixed and approved by the executive, fiscal
officer, legislative body and other bodies, as provided by law for other
municipal funds, the total receipts shall be deducted from the total
expenditures stated in the itemized estimate, and the amount of the
excess shall be paid by the police special service district in the same
manner as other expenses of the district are paid. The legislative body
shall levy a tax and the money derived from the levy shall, when
collected, be credited exclusively to the 1953 fund. The tax shall be
levied in the amount and at the rate that is necessary to produce
sufficient revenue to equal the deficit. Notwithstanding any other law,
neither the county board of tax adjustment (before January 1, 2009),
the county board of tax and capital projects review (after
December 31, 2008), nor the department of local government finance
may reduce the tax levy.
SOURCE: IC 36-8-11-18; (07)CC147804.127. -->
SECTION 127. IC 36-8-11-18 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 18. (a) The board shall
annually budget the necessary money to meet the expenses of operation
and maintenance of the district, including repairs, fees, salaries,
depreciation on all depreciable assets, rents, supplies, contingencies,
bond redemption, and all other expenses lawfully incurred by the
district. After estimating expenses and receipts of money, the board
shall establish the tax levy required to fund the estimated budget.
(b) The budget must be approved by the fiscal body of the county,
the county board of tax adjustment (before January 1, 2009), the
county board of tax and capital projects review (after December
31, 2008), and the department of local government finance.
(c) Upon approval by the department of local government finance,
the board shall certify the approved tax levy to the auditor of the county
having land within the district. The auditor shall have the levy entered
on the county treasurer's tax records for collection. After collection of
the taxes the auditor shall issue a warrant on the treasurer to transfer
the revenues collected to the board, as provided by statute.
SOURCE: IC 36-8-11-22.1; (07)CC147804.128. -->
SECTION 128. IC 36-8-11-22.1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 22.1. (a) This section
applies to a district that consists of a municipality that is located in two
(2) counties.
(b) This section does not apply to a merged district under section 23
of this chapter.
(c) Sections 6 and 7 of this chapter apply to the petition.
(d) The board of fire trustees for the district shall be appointed as
prescribed by section 12 of this chapter. However, the legislative body
of each county within which the district is located shall jointly appoint
one (1) trustee from each township or part of a township contained in
the district and one (1) trustee from the municipality contained in the
district. The legislative body of each county shall jointly appoint a
member to fill a vacancy.
(e) Sections 13, 14, and 15 of this chapter relating to the board of
fire trustees apply to the board of the district. However, the county
legislative bodies serving the district shall jointly decide where the
board shall locate (or approve location of) its office.
(f) Sections 16, 17, 18, 19, and 21 of this chapter relating to the
taxing district, bonds, annual budget, tax levies, and disbanding of fire
departments apply to the district. However, the budget must be
approved by the county fiscal body and county board of tax adjustment
(before January 1, 2009) or the county board of tax and capital
projects review (after December 31, 2008) in each county in the
district. In addition, the auditor of each county in the district shall
perform the duties described in section 18(c) of this chapter.
SOURCE: IC 36-8-11-23; (07)CC147804.129. -->
SECTION 129. IC 36-8-11-23 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 23. (a) Any fire
protection district may merge with one (1) or more protection districts
to form a single district if at least one-eighth (1/8) of the aggregate
external boundaries of the districts coincide.
(b) The legislative body of the county where at least two (2) districts
are located (or if the districts are located in more than one (1) county,
the legislative body of each county) shall, if petitioned by freeholders
in the two (2) districts, adopt an ordinance merging the districts into a
single fire protection district.
(c) Freeholders who desire the merger of at least two (2) fire
protection districts must initiate proceedings by filing a petition in the
office of the county auditor of each county where a district is located.
The petition must be signed:
(1) by at least twenty percent (20%), with a minimum of five
hundred (500) from each district, of the freeholders owning land
within the district; or
(2) by a majority of the freeholders from the districts;
whichever is less.
(d) The petition described in subsection (c) must state the same
items listed in section 7 of this chapter. Sections 6, 8, and 9 of this
chapter apply to the petition and to the legislative body of each county
in the proposed district.
(e) The board of fire trustees for each district shall form a single
board, which shall continue to be appointed as prescribed by section 12
of this chapter. In addition, sections 13, 14, and 15 of this chapter
relating to the board of fire trustees apply to the board of the merged
district, except that if the merged district lies in more than one (1)
county, the county legislative bodies serving the combined district shall
jointly decide where the board shall locate (or approve relocation of)
its office.
(f) Sections 16, 17, 18, 19, and 21 of this chapter relating to the
taxing district, bonds, annual budget, tax levies, and disbanding of fire
departments apply to a merged district. However, the budget must be
approved by the county fiscal body and county board of tax adjustment
(before January 1, 2009) or the county board of tax and capital
projects review (after December 31, 2008) in each county in the
merged district. In addition, the auditor of each county in the district
shall perform the duties described in section 18(c) of this chapter.
SOURCE: IC 36-8-13-4.7; (07)CC147804.130. -->
SECTION 130. IC 36-8-13-4.7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 4.7. (a) For a township
that elects to have the township provide fire protection and emergency
services under section 3(c) of this chapter, the department of local
government finance shall adjust the township's maximum permissible
levy in the year following the year in which the change is elected, as
determined under IC 6-1.1-18.5-3, to reflect the change from providing
fire protection or emergency services under a contract between the
municipality and the township to allowing the township to impose a
property tax levy on the taxable property located within the corporate
boundaries of each municipality. For the ensuing calendar year, the
township's maximum permissible property tax levy shall be increased
by the product of:
(1) one and five-hundredths (1.05); multiplied by
(2) the amount the township contracted or billed to receive,
regardless of whether the amount was collected:
(A) in the year in which the change is elected; and
(B) as fire protection or emergency service payments from the
municipalities or residents of the municipalities covered by the
election under section 3(c) of this chapter.
The maximum permissible levy for a general fund or other fund of a
municipality covered by the election under section 3(c) of this chapter
shall be reduced for the ensuing calendar year to reflect the change to
allowing the township to impose a property tax levy on the taxable
property located within the corporate boundaries of the municipality.
The total reduction in the maximum permissible levies for all electing
municipalities must equal the amount that the maximum permissible
levy for the township is increased under this subsection for contracts
or billings, regardless of whether the amount was collected, less the
amount actually paid from sources other than property tax revenue.
(b) For purposes of determining a township's and each
municipality's maximum permissible ad valorem property tax levy
under IC 6-1.1-18.5-3 for years following the first year after the year in
which the change is elected, a township's and each municipality's
maximum permissible ad valorem property tax levy is the levy after the
adjustment made under subsection (a).
(c) The township may use the amount of a maximum permissible
property tax levy computed under this section in setting budgets and
property tax levies for any year in which the election in section 3(c) of
this chapter is in effect. A county board of tax adjustment (before
January 1, 2009) or the county board of tax and capital projects
review (after December 31, 2008) may not reduce a budget or tax levy
solely because the budget or levy is based on the maximum permissible
property tax levy computed under this section.
(d) Section 4.6 of this chapter does not apply to a property tax levy
or a maximum property tax levy subject to this section.
SOURCE: IC 36-8-15-19; (07)CC147804.131. -->
SECTION 131. IC 36-8-15-19 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 19. (a) This subsection
applies to a county not having a consolidated city. For the purpose of
raising money to fund the operation of the district, the county fiscal
body may impose, for property taxes first due and payable during each
year after the adoption of an ordinance establishing the district, an ad
valorem property tax levy on property within the district. The property
tax rate for that levy may not exceed five cents ($0.05) on each one
hundred dollars ($100) of assessed valuation.
(b) This subsection applies to a county having a consolidated city.
The county fiscal body may elect to fund the operation of the district
from part of the certified distribution, if any, that the county is to
receive during a particular calendar year under IC 6-3.5-6-17. To make
such an election, the county fiscal body must adopt an ordinance before
September 1 of the immediately preceding calendar year. The county
fiscal body must specify in the ordinance the amount of the certified
distribution that is to be used to fund the operation of the district. If the
county fiscal body adopts such an ordinance, it shall immediately send
a copy of the ordinance to the county auditor.
(c) Subject to subsections (d), (e), and (f), if an ordinance or
resolution is adopted changing the territory covered by the district or
the number of public agencies served by the district, the local
government tax control board (before January 1, 2009) or the county
board of tax and capital projects review (after December 31, 2008)
shall, for property taxes first due and payable during the year after the
adoption of the ordinance, adjust the maximum permissible ad valorem
property tax levy limits of the district and the units participating in the
district.
(d) If a unit by ordinance or resolution joins the district or elects to
have its public safety agencies served by the district, the local
government tax control board (before January 1, 2009) or the county
board of tax and capital projects review (after December 31, 2008)
shall reduce the maximum permissible ad valorem property tax levy of
the unit for property taxes first due and payable during the year after
the adoption of the ordinance or resolution. The reduction shall be
based on the amount budgeted by the unit for public safety
communication services in the year in which the ordinance was
adopted. If such an ordinance or resolution is adopted, the district shall
refer its proposed budget, ad valorem property tax levy, and property
tax rate for the following year to the board, which shall review and set
the budget, levy, and rate as though the district were covered by
IC 6-1.1-18.5-7.
(e) If a unit by ordinance or resolution withdraws from the district
or rescinds its election to have its public safety agencies served by the
district, the local government tax control board (before January 1,
2009) or the county board of tax and capital projects review (after
December 31, 2008) shall reduce the maximum permissible ad
valorem property tax levy of the district for property taxes first due and
payable during the year after the adoption of the ordinance or
resolution. The reduction shall be based on the amounts being levied
by the district within that unit. If such an ordinance or resolution is
adopted, the unit shall refer its proposed budget, ad valorem property
tax levy, and property tax rate for public safety communication services
to the board, which shall review and set the budget, levy, and rate as
though the unit were covered by IC 6-1.1-18.5-7.
(f) The adjustments provided for in subsections (c), (d), and (e) do
not apply to a district or unit located in a particular county if the county
fiscal body of that county does not impose an ad valorem property tax
levy under subsection (a) to fund the operation of the district.
SOURCE: IC 36-9-3-29; (07)CC147804.132. -->
SECTION 132. IC 36-9-3-29 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 29. The board shall
prepare an annual budget for the authority's operating and maintenance
expenditures and necessary capital expenditures. Each annual budget
is subject to review and modification by the:
(1) fiscal body of the county or municipality that establishes the
authority; and
(2) county board of tax adjustment (before January 1, 2009) or
the county board of tax and capital projects review (after
December 31, 2008) and the department of local government
finance under IC 6-1.1-17.
SOURCE: IC 36-9-4-47; (07)CC147804.133. -->
SECTION 133. IC 36-9-4-47 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 47. (a) The board of
directors of a public transportation corporation may:
(1) borrow money in anticipation of receipt of the proceeds of
taxes that have been levied by the board and have not yet been
collected; and
(2) evidence this borrowing by issuing warrants of the
corporation.
The money that is borrowed may be used by the corporation for
payment of principal and interest on its bonds or for payment of current
operating expenses.
(b) The warrants:
(1) bear the date or dates;
(2) mature at the time or times on or before December 31
following the year in which the taxes in anticipation of which the
warrants are issued are due and payable;
(3) bear interest at the rate or rates and are payable at the time or
times;
(4) may be in the denominations;
(5) may be in the forms, either registered or payable to bearer;
(6) are payable at the place or places, either inside or outside
Indiana;
(7) are payable in the medium of payment;
(8) are subject to redemption upon the terms, including a price not
exceeding par and accrued interest; and
(9) may be executed by the officers of the corporation in the
manner;
provided by resolution of the board of directors. The resolution may
also authorize the board to pay from the proceeds of the warrants all
costs incurred in connection with the issuance of the warrants.
(c) The warrants may be authorized and issued at any time after the
board of directors levies the tax or taxes in anticipation of which the
warrants are issued.
(d) The warrants may be sold for not less than par value after notice
inviting bids has been published in accordance with IC 5-3-1. The
board of directors may also publish the notice inviting bids in other
newspapers or financial journals.
(e) After the warrants are sold, they may be delivered and paid for
at one (1) time or in installments.
(f) The aggregate principal amount of warrants issued in
anticipation of and payable from the same tax levy or levies may not
exceed eighty percent (80%) of the levy or levies, as the amount of the
levy or levies is certified by the department of local government
finance, or as is determined by multiplying the rate of tax as finally
approved by the total assessed valuation of taxable property within the
taxing district of the public transportation corporation as most recently
certified by the county auditor.
(g) For purposes of this section, taxes for any year are considered to
be levied when the board of directors adopts the ordinance prescribing
the tax levies for the year. However, warrants may not be delivered and
paid for before final approval of a tax levy or levies by the county
board of tax adjustment (before January 1, 2009) or the county
board of tax and capital projects review (after December 31, 2008)
(or, if appealed, by the department of local government finance) unless
the issuance of the warrants has been approved by the department of
local government finance.
(h) The warrants and the interest on them are not subject to sections
43 and 44 of this chapter and are payable solely from the proceeds of
the tax levy or levies in anticipation of which the warrants were issued.
The authorizing resolution must pledge a sufficient amount of the
proceeds of the tax levy or levies to the payment of the warrants and
the interest.
(i) All actions of the board of directors under this section may be
taken by resolution, which need not be published or posted. The
resolution takes effect immediately upon its adoption by a majority of
the members of the board of directors.
(j) An action to contest the validity of any tax anticipation warrants
may not be brought later than ten (10) days after the sale date.
SOURCE: IC 36-9-13-35; (07)CC147804.134. -->
SECTION 134. IC 36-9-13-35 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 35. The annual
operating budget of a building authority is subject to review by the
county board of tax adjustment (before January 1, 2009) or the
county board of tax and capital projects review (after December
31, 2008) and then by the department of local government finance as
in the case of other political subdivisions.
SOURCE: IC 36-12-14-2; (07)CC147804.135. -->
SECTION 135. IC 36-12-14-2, AS ADDED BY P.L.199-2005,
SECTION 27, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]: Sec. 2. An appointed library board subject to section
1 of this chapter shall submit its proposed operating budget and
property tax levy for the operating budget to the following fiscal body
at least fourteen (14) days before the first meeting of the county board
of tax adjustment (before January 1, 2009) or the county board of
tax and capital projects review (after December 31, 2008) under
IC 6-1.1-29-4:
(1) If the library district is located entirely within the corporate
boundaries of a municipality, the fiscal body of the municipality.
(2) If the library district:
(A) is not described by subdivision (1); and
(B) is located entirely within the boundaries of a township;
the fiscal body of the township.
(3) If the library district is not described by subdivision (1) or (2),
the fiscal body of each county in which the library district is
located.
SOURCE: IC 21-14-2-12.5; (07)CC147804.136. -->
SECTION 136. IC 21-14-2-12.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2007] Sec. 12.5. This section applies to tuition
and mandatory fees that a board of trustees of a state educational
institution votes to increase after June 30, 2007.
(b) After the enactment of a state budget, the commission for
higher education shall recommend nonbinding tuition and
mandatory fee increase targets for each state educational
institution.
(c) The state educational institution shall submit a report to the
state budget committee concerning the financial and budgetary
factors considered by the board of trustees in determining the
amount of the increase.
(d) The state budget committee shall review the targets
recommended under subsection (b) and reports received under
subsection (c) and may request that a state educational institution
appear at a public meeting of the state budget committee
concerning the report.
SOURCE: IC 21-14-2-12; (07)CC147804.137. -->
SECTION 137. IC 21-14-2-12 IS REPEALED [EFFECTIVE JULY
1, 2007].
SOURCE: IC 20-12-1-12; (07)CC147804.138. -->
SECTION 138. IC 20-12-1-12, AS AMENDED BY HEA
1001-2007, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 12. (a) This section applies notwithstanding
IC 20-12-23-2, IC 20-12-36-4, IC 20-12-56-5, IC 20-12-57.5-11, and
IC 20-12-64-5.
(b) As used in this section, "academic year" has the meaning set
forth in IC 20-12-76-1.
(c) As used in this section, "state educational institution" has the
meaning set forth in IC 20-12-0.5-1.
(d) A state educational institution shall set tuition and fee rates for
a two (2) year period. The rates shall be set according to the procedure
set forth in subsection (e) and:
(1) on or before
June May 30 of the odd numbered year; or
(2)
sixty (60) thirty (30) days after the state budget bill is enacted
into law;
whichever is later.
(e) A state educational institution shall hold a public hearing before
adopting any proposed tuition and fee rate increases. The state
educational institution shall give public notice of the hearing at least
ten (10) days before the hearing. The public notice shall include the
specific proposal for tuition and fee rate increases and the expected
uses of the revenue to be raised by the proposed increases. The hearing
shall be held:
(1) on or before May 31 15 of each odd numbered year; or
(2) thirty-one (31) fifteen (15) days after the state budget bill is
enacted into law;
whichever is later.
(f) After a state educational institution's tuition and fee rates are set
under this section, the state educational institutions may adjust the
tuition and fee rates only if appropriations to the state educational
institution in the state budget act are reduced or withheld.
(g) If a state educational institution adjusts its tuition and fee rates
under subsection (f), the total revenue generated by the tuition and fee
rate adjustment must not exceed the amount by which appropriations
to the state educational institution in the state budget act were reduced
or withheld.
(h) For tuition and fees set by a state educational institution before
July 1, 2007, a state educational institution must appear before the state
budget committee before June 30, 2007. The state budget committee
shall review the tuition and fees proposed by the state educational
institution under section 8 of this chapter.
(i) After July 1, 2007, the commission for higher education shall
recommend biennially nonbinding tuition targets based on the mission
of the state educational institution. The board of trustees of a state
educational institution may set a tuition rate that exceeds the tuition
target only if the proposed tuition rate is reviewed by both the
commission for higher education and the state budget committee before
the later of the following:
(1) June 30 in the odd-numbered year.
(2) Sixty (60) days after the state budget is adopted for the
biennium beginning in the odd-numbered year.
SOURCE: ; (07)CC147804.139. -->
SECTION 139. [EFFECTIVE JULY 1, 2007] IC 6-1.1-29.5, as
added by this act, does not apply to any of the following:
(1) The issuance of bonds or other obligations or the entering
into a lease, if the preliminary determination to issue the
bonds or other obligations or to enter into the lease is made
before January 1, 2009.
(2) The construction of a capital project, if the construction
begins before January 1, 2009.
(3) The entering into a contract for the construction of a
capital project, if the contract is entered into before January
1, 2009.
(4) The procuring of supplies necessary for construction of a
capital project, if the supplies are procured or a contract for
the procuring of the supplies is entered into before January 1,
2009.
(5) The construction of a capital project, the entering into a
contract for the construction of a capital project, or the
procuring of supplies necessary for the construction of a
capital project, if the issuance of bonds or other obligations,
or the entering into a lease, to finance the capital project has
been approved by the department of local government finance
under IC 20-46-7 before January 1, 2009.
SOURCE: ; (07)CC147804.140. -->
SECTION 140. [EFFECTIVE JULY 1, 2007] (a) Any matter
pending before a county board of tax adjustment on December 31,
2008, is transferred to the county board of tax and capital projects
review for that county on January 1, 2009.
(b) Any property and obligations of a county board of tax
adjustment on December 31, 2008, are transferred to the county
board of tax and capital projects review for that county on
January 1, 2009.
( c) Each county board of tax adjustment is abolished on
December 31, 2008. The term of a member serving on a county
board of tax adjustment on December 31, 2008, expires December
31, 2008.
(d) This SECTION expires January 1, 2009.
SOURCE: ; (07)CC147804.141. -->
SECTION 141. [EFFECTIVE UPON PASSAGE] (a) The
legislative services agency shall prepare legislation for introduction
in the 2008 regular session of the general assembly to organize and
correct statutes affected by this act, if necessary.
(b) This SECTION expires January 1, 2009.
SOURCE: ; (07)CC147804.142. -->
SECTION 142. [EFFECTIVE UPON PASSAGE] An ordinance
adopted after January 1, 2007, and before April 1, 2007, under
IC 6-3.5-1.1, IC 6-3.5-6, and IC 6-3.5-7, all as in effect before
amendment by this act, takes effect October 1, 2007, and not July
1, 2007.
SOURCE: ; (07)CC147804.143. -->
SECTION 143. [EFFECTIVE UPON PASSAGE]
(a) As used in
this SECTION, "committee" refers to the annexation study
committee established by this SECTION.
(b) The annexation study committee is established. The
committee shall study:
(1) revising the statutes concerning municipal annexation of
territory. The committee's study may not include the
annexation statutes in IC 36-3-2; and
(2) whether "one and fifteen hundredths (1.15)" in STEP
THREE of IC 6-1.1-18.5-3(a) and STEP THREE of
IC 6-1.1-18.5-3(b) is sufficient to raise adequate property
taxes for a municipality annexing territory.
(c) The committee consists of sixteen (16) members appointed as
follows:
(1) Two (2) members of the house of representatives
appointed by the speaker of the house of representatives.
(2) Two (2) members of the house of representatives
appointed by the minority leader of the house of
representatives.
(3) Two (2) members of the senate appointed by the president
pro tempore of the senate.
(4) Two (2) members of the senate appointed by the minority
leader of the senate.
(5) One (1) member who is a member of the city council of a
second class city or third class city appointed by the president
pro tempore of the senate.
(6) One (1) member who is a member of the city council of a
second class city or third class city appointed by the speaker
of the house of representatives.
(7) One (1) member who is a member of the town council of a
town that is not located in Marion County appointed by the
president pro tempore of the senate.
(8) One (1) member who is a member of a county council of a
county other than Marion County appointed by the speaker
of the house of representatives.
(9) Two (2) members representing township government from
a county other than Marion County. The speaker of the house
of representatives and the president pro tempore of the senate
shall each appoint one (1) member.
(10) Two (2) members of the public that have experience in
preparing an annexation remonstrance. The speaker of the
house of representatives and the president pro tempore of the
senate shall each appoint one (1) member.
(d) Not more than one (1) member appointed under subsection
(c)(9) and one (1) member appointed under subsection (c)(10) may
be from the same political party.
(e) The legislative services agency shall staff the committee.
(f) The committee shall operate under the rules and procedures
of the legislative council for study committees.
(g) Each member of the committee who is not a member of the
general assembly is not entitled to the minimum salary per diem
provided by IC 4-10-11-2.1(b). The member is, however, entitled to
reimbursement for traveling expenses as provided under
IC 4-13-1-4 and other expenses actually incurred in connection
with the member's duties as provided in the state policies and
procedures established by the Indiana department of
administration and approved by the budget agency.
(h) Each member of the committee who is a member of the
general assembly is entitled to receive the same per diem, mileage,
and travel allowances paid to legislative members of interim study
committees established by the legislative council. Per diem,
mileage, and travel allowances paid under this subsection shall be
paid from appropriations made to the legislative council or the
legislative services agency.
(i) The affirmative votes of a majority of the legislator members
of the committee are required for the committee to take action on
any recommendation.
(j) The chairman of the legislative council shall appoint a
member of the committee to serve as chairperson.
(k) The committee shall prepare and submit a written report of
the committee's findings in an electronic format under IC 5-14-6
to the legislative council not later than November 1, 2007.
(l) This SECTION expires November 2, 2007.
SOURCE: ; (07)CC147804.144. -->
SECTION 144. [EFFECTIVE JANUARY 1, 2007
(RETROACTIVE)]:
(a) Notwithstanding the provisions in
IC 6-1.1-20.4-4 specifying that an ordinance or a resolution must
be adopted before December 31 for homestead credits to be
provided under IC 6-1.1-20.4 in the following year, a political
subdivision may adopt an ordinance or a resolution after
December 31, 2006, and before June 1, 2007, to provide for the use
of revenue for the purpose of providing a homestead credit under
IC 6-1.1-20.4 in 2007.
(b) If a political subdivision adopts an ordinance or a resolution
described in subsection (a):
(1) the local homestead credit under IC 6-1.1-20.4 shall be
applied in the political subdivision in 2007; and
(2) the department of local government finance may take any
action necessary to apply the local homestead credit in the
political subdivision in 2007.
(c) This SECTION expires December 31, 2008.
SOURCE: ; (07)CC147804.145. -->
SECTION 145. [EFFECTIVE UPON PASSAGE] Notwithstanding
the provisions in IC 6-3.5-6, before amendment by this act,
specifying that an ordinance establishing or increasing the rate of
a county option income tax in 2007 must be adopted before April
1, 2007, an ordinance adopted in 2007 to establish an additional
rate under IC 6-3.5-6-33, as added by this act, may be adopted
before June 1, 2007. An ordinance adopted under this SECTION
is effective on the later of the following:
(1) July 1, 2007.
(2) Fifteen (15) regular business days after the department of
state revenue receives a certified copy of the ordinance from
the county auditor.
SOURCE: ; (07)CC147804.146. -->
SECTION 146. [EFFECTIVE JANUARY 1, 2007
(RETROACTIVE)]: An ordinance adopted by the fiscal body for
Howard County that:
(1) was adopted before April 29, 2007; and
(2) would have been in compliance with IC 6-3.5-6-28, as
amended by this act, if this act had been enacted before the
ordinance was adopted;
is legalized and validated to the same extent as if this act had been
enacted before the ordinance was adopted.
SOURCE: ; (07)CC147804.147. -->
SECTION 147. [EFFECTIVE JULY 1, 2007] IC 6-1.1-12-37, as
amended by this act, applies to property taxes first due and
payable after December 31, 2007.
SOURCE: ; (07)CC147804.148. -->
SECTION 148.
An emergency is declared for this act.
(Reference is to EHB 1478 as reprinted April 11, 2007.)
Conference Committee Report
on
Engrossed House
Bill 1478
Text Box
S
igned by:
____________________________ ____________________________
Representative Kuzman Senator Kenley
Chairperson
____________________________ ____________________________
Representative Crawford Senator Broden
House Conferees Senate Conferees