Bill Text: IN HB1072 | 2012 | Regular Session | Enrolled
Bill Title: Tax administration.
Spectrum: Bipartisan Bill
Status: (Enrolled - Dead) 2012-03-19 - Signed by the Governor [HB1072 Detail]
Download: Indiana-2012-HB1072-Enrolled.html
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
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AN ACT to amend the Indiana Code concerning taxation.
Be it enacted by the General Assembly of the State of Indiana:
SECTION 2. IC 4-10-13-5 IS REPEALED [EFFECTIVE JULY 1, 2012].
valuation of real property.
(3) The total assessed valuation of personal property belonging to
steam and electric railways and to public utilities.
(4) The total number of taxpayers and the total assessed valuation
of household goods and personal effects, excluding boats subject
to the boat excise tax under IC 6-6-11.
(5) The total number of units assessed and the assessed valuation
of each of the following items of personal property:
(A) Privately owned, noncommercial passenger cars.
(B) Commercial passenger cars.
(C) Trucks and tractors.
(D) Motorcycles.
(E) Buses.
(F) Mobile homes.
(G) Boats.
(H) Airplanes.
(I) Farm machinery.
(J) Livestock.
(K) Crops.
(6) The total number of taxpayers and the total valuation of
inventories and other personal property belonging to retail
establishments, wholesale establishments, manufacturing
establishments, and commercial establishments.
(b) The department of local government finance is hereby
authorized to prescribe and promulgate the forms as are necessary for
the obtaining of such information from local assessing officials. The
local assessing officials are directed to comply with this section.
SECTION 3. IC 4-33-6-1, AS AMENDED BY P.L.233-2007,
SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
APRIL 1, 2012]: Sec. 1. (a) The commission may issue to a person a
license to own a riverboat subject to the numerical and geographical
limitation of owner's licenses under this section, section 3.5 of this
chapter, and IC 4-33-4-17. However, not more than ten (10) owner's
licenses may be in effect at any time. Except as provided in subsection
(b), those ten (10) licenses are as follows:
(1) Two (2) licenses for a riverboat that operates from the largest
city located in the counties described under IC 4-33-1-1(1). of
Gary.
(2) One (1) license for a riverboat that operates from the second
largest city located in the counties described under
IC 4-33-1-1(1). of Hammond.
(3) One (1) license for a riverboat that operates from the third
largest city located in the counties described under
IC 4-33-1-1(1). of East Chicago.
(4) One (1) license for a city located in the counties described
under IC 4-33-1-1(1). This license may not be issued to a city
described in subdivisions (1) through (3).
(5) A total of five (5) licenses for riverboats that operate upon the
Ohio River from the following counties:
(A) Vanderburgh County.
(B) Harrison County.
(C) Switzerland County.
(D) Ohio County.
(E) Dearborn County.
The commission may not issue a license to an applicant if the
issuance of the license would result in more than one (1) riverboat
operating from a county described in this subdivision.
(b) If a city described in subsection (a)(2) or (a)(3) conducts two (2)
elections under section 20 of this chapter, and the voters of the city do
not vote in favor of permitting riverboat gambling at either of those
elections, the license assigned to that city under subsection (a)(2) or
(a)(3) may be issued to any city that:
(1) does not already have a riverboat operating from the city; and
(2) is located in a county described in IC 4-33-1-1(1).
(c) In addition to its power to issue owner's licenses under
subsection (a), the commission may also enter into a contract under
IC 4-33-6.5 with respect to the operation of one (1) riverboat on behalf
of the commission in a historic hotel district.
(d) A person holding an owner's license may not move the person's
riverboat from the county in which the riverboat was docked on
January 1, 2007, to any other county.
SECTION 4. IC 5-1-18-6, AS AMENDED BY P.L.219-2007,
SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 6. A political subdivision that issues bonds or
enters into a lease after December 31, 2005, shall supply the
department with information concerning the bond issue or lease not
later than December 31 of the year in a debt issuance report not later
than one (1) month after the date on which the bonds are issued or
the lease is executed.
SECTION 5. IC 5-1-18-7, AS ADDED BY P.L.199-2005,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 7. (a) Except as provided by subsection (b), the
bond issue information debt issuance report required by section 6 of
this chapter must be submitted on a form prescribed by the department
and must include the following information concerning bonds:
(1) The par value of the bond issue.
(2) A schedule of maturities and interest rates.
(3) The purposes of the bond issue.
(4) The itemized costs of issuance information, including fees for
bond counsel, other legal counsel, underwriters, and financial
advisors.
(5) The type of bonds that are issued. and
(6) Other information as required by the department.
A copy of the official statement and bond covenants, if any, must be
supplied with this information.
(b) The department may establish a procedure that permits A
political subdivision or a person acting on behalf of a political
subdivision to transfer all or part of the information shall submit the
debt issuance report information described in subsection (a) to the
department in a uniform format through a secure connection over the
Internet or through other electronic means. electronically, in the
manner prescribed by the department.
(c) For taxes due and payable for an assessment date after
January 15, 2012, the department may not approve an
appropriation or a property tax levy that is associated with a debt
unless the debt issuance report for the debt has been submitted to
the department, unless the department has granted a waiver under
subsection (d).
(d) The department may for good cause grant a waiver to the
requirement under subsection (c) and approve an appropriation or
a property tax levy, notwithstanding a political subdivision's
failure to submit a required debt issuance report.
SECTION 6. IC 5-1-18-8, AS ADDED BY P.L.199-2005,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 8. (a) Except as provided by subsection (b), the
lease information required by section 6 of this chapter must be
submitted on a form prescribed by the department and must include the
following information concerning leases:
(1) The term of the lease.
(2) The annual and total amount of lease rental payments due
under the lease.
(3) The purposes of the lease.
(4) The itemized costs incurred by the political subdivision with
respect to the preparation and execution of the lease, including
fees for legal counsel and other professional advisors.
(5) If all or part of the lease rental payments are used by the lessor
as debt service payments for bonds issued for the acquisition,
construction, renovation, improvement, expansion, or use of a
building, structure, or other public improvement for the political
subdivision:
(A) the name of the lessor;
(B) the par value of the bond issue; and
(C) the purposes of the bond issue. and
(6) Other information as required by the department.
(b) The department may establish a procedure that permits A
political subdivision or a person acting on behalf of a political
subdivision to transfer all or part of the information shall submit the
debt issuance report information described in subsection (a) to the
department in a uniform format through the Internet or other electronic
means, as determined electronically, in the manner prescribed by the
department.
(c) For taxes due and payable for an assessment date after
January 15, 2012, the department may not approve an
appropriation or a property tax levy that is associated with a debt
unless the debt issuance report for the debt has been submitted to
the department, unless the department has granted a waiver under
subsection (d).
(d) The department may for good cause grant a waiver to the
requirement under subsection (c) and approve an appropriation or
a property tax levy, notwithstanding a political subdivision's
failure to submit a required debt issuance report.
SECTION 7. IC 5-1-18-9, AS ADDED BY P.L.199-2005,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 9. (a) This subsection applies to reporting that
occurs before January 1, 2013. Each political subdivision that has any
outstanding bonds or leases shall submit a report to the department
before March 1 of 2006 and each year thereafter that includes a
summary of all the outstanding bonds of the political subdivision as of
January 1 of that year. The report must:
(1) distinguish the outstanding bond issues and leases on the basis
of the type of bond or lease, as determined by the department;
(2) include a comparison of the political subdivision's outstanding
indebtedness compared to any applicable statutory or
constitutional limitations on indebtedness;
(3) include other information as required by the department; and
(4) be submitted on a form prescribed by the department or
through the Internet or other electronic means, as determined by
the department.
(b) This subsection applies to reporting that occurs after December 31, 2012. The department may annually require each political subdivision to verify to the department that the list of indebtedness and related details in the department's database are current and accurate.
SECTION 8. IC 5-11-1-4, AS AMENDED BY P.L.172-2011, SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 4. (a) The state examiner shall require from every municipality and every state or local governmental unit, entity, or instrumentality financial reports covering the full period of each fiscal year. These reports shall be prepared, verified, and filed with the state examiner not later than sixty (60) days after the close of each fiscal year.
(b) The department of local government finance may not approve the budget of a political subdivision or a supplemental appropriation for a political subdivision until the political subdivision files an annual report under subsection (a) for the preceding calendar year.
SECTION 9. IC 5-11-13-1, AS AMENDED BY P.L.172-2011, SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 1. (a) Every state, county, city, town, township, or school official, elective or appointive, who is the head of or in charge of any office, department, board, or commission of the state or of any county, city, town, or township, and every state, county, city, town, or township employee or agent who is the head of, or in charge of, or the executive officer of any department, bureau, board, or commission of the state, county, city, town, or township, and every executive officer by whatever title designated, who is in charge of any state educational institution or of any other state, county, or city institution, shall during the month of January of each year prepare, make, and sign a
employees, and agents need be made from the state or any county, city,
town, township, or school unit in any one year. The certification must
be filed electronically in the manner prescribed under
IC 5-14-3.8-7.
(b) The department of local government finance may not approve
the budget of a county, city, town, or township or a supplemental
appropriation for a county, city, town, or township until the county,
city, town, or township files an annual report under subsection (a) for
the preceding calendar year.
SECTION 10. IC 5-14-3.8-7, AS ADDED BY P.L.172-2011,
SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 7. The department may require that prescribed
forms be submitted in an electronic format. The department, working
with the office of technology established by IC 4-13.1-2-1 or
another organization that is part of a state educational institution,
shall develop and maintain a secure, web-based system that
facilitates electronic submission of the forms under this section.
Political subdivisions shall submit forms under this section through
the web-based system as prescribed by the department.
SECTION 11. IC 5-28-16-3, AS ADDED BY P.L.4-2005,
SECTION 34, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 3. (a) An application requesting a grant or
loan from the fund must be targeted to one (1) or more of the areas
listed in section 2 of this chapter.
(b) A successful applicant for a grant or loan from the fund must
meet the requirements of this section and be approved by the board. An
application for a grant or loan from the fund must be made on an
application form prescribed by the board. An applicant shall provide all
information that the board finds necessary to make the determinations
required by this chapter.
(c) All applications for a grant or loan from the fund must include
the following:
(1) A fully elaborated technical research or business plan,
whichever applies, that is appropriate for review by outside
experts as provided in this chapter.
(2) A detailed financial analysis that includes the commitment of
resources by other entities that will be involved in the project.
(3) A statement of the economic development potential of the
project, such as:
(A) a statement of the way in which support from the fund will
lead to significantly increased funding from federal or private
sources and from private sector research partners; or
(B) a projection of the jobs to be created.
(4) The identity, qualifications, and obligations of the applicant.
(5) Any other information that the board considers appropriate.
An applicant for a grant or loan from the fund may request that certain information that is submitted by the applicant be kept confidential. However, an applicant's projection of the jobs to be created by a project may not be kept confidential. The board shall make a determination of confidentiality as soon as is practicable. If the board determines that the information should not be kept confidential, the applicant may withdraw the application, and the board must return the information before making it part of any public record.
(d) An application for a grant or loan from the fund submitted by an academic researcher must be made through the office of the president of the researcher's academic institution with the express endorsement of the institution's president. An application for a grant or loan from the fund submitted by a private researcher must be made through the office of the highest ranking officer of the researcher's institution with the express endorsement of the institution. Any other application must be made through the office of the highest ranking officer of the entity submitting the application. In the case of an application for a grant or loan from the fund that is submitted jointly by one (1) or more researchers or entities, the application must be endorsed by each institution or entity as required by this subsection.
SECTION 12. IC 6-1.1-1-3, AS AMENDED BY P.L.146-2008, SECTION 46, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 3. (a) Except as provided in subsection (b), "assessed value" or "assessed valuation" means an amount equal to:
(1) for assessment dates before March 1, 2001, thirty-three and one-third percent (33 1/3%) of the true tax value of property; and
(2) for assessment dates after February 28, 2001, the true tax value of property.
(b) For purposes of calculating a budget, rate, or levy under IC 6-1.1-17, IC 6-1.1-18, IC 6-1.1-18.5, IC 6-1.1-20, IC 20-46-4, IC 20-46-5, and IC 20-46-6, "assessed value" or "assessed valuation" does not include the net assessed value of tangible property excluded and kept separately on a tax duplicate by a county auditor under IC 6-1.1-17-0.5.
SECTION 13. IC 6-1.1-3-24 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE MARCH 1, 2011 (RETROACTIVE)]: Sec. 24. (a) In determining the assessed value of various sizes of outdoor advertising signs for the 2011 through 2014 assessment dates, a taxpayer and assessing
official shall use the following table without any adjustments:
At least 48 feet, illuminated $5,000
At least 48 feet, non-illuminated $4,000
At least 26 feet and under 48 feet, illuminated $4,000
At least 26 feet and under 48 feet,
non-illuminated $3,300
Under 26 feet, illuminated $3,200
Under 26 feet, non-illuminated $2,600
At least 50 feet, non-illuminated $1,500
At least 40 feet and under 50 feet, illuminated $2,000
At least 40 feet and under 50 feet,
non-illuminated $1,300
At least 30 feet and under 40 feet, illuminated $2,000
At least 30 feet and under 40 feet,
non-illuminated $1,300
At least 20 feet and under 30 feet, illuminated $1,600
At least 20 feet and under 30 feet,
non-illuminated $1,000
Under 20 feet, illuminated $1,600
Under 20 feet, non-illuminated $1,000
(b) During the 2012 legislative interim, the commission on state tax and financing policy shall study the assessment of outdoor signs. Before January 1, 2013, the commission shall report to the general assembly on any suggested changes in the law with regard to assessing outdoor signs.
(c) This section expires July 1, 2015.
SECTION 14. IC 6-1.1-11-8 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 8. (a) On or before August 1 of each year, the county auditor of each county shall forward to the department of local government finance the duplicate copies of all approved exemption applications.
(b) The department of local government finance
application.
(c) With respect to the approved applications forwarded under
subsection (a), the department shall annually report to the executive
director of the legislative services agency:
(1) the number forwarded;
(2) the number subjected to field investigation by the department;
and
(3) the number denied by the department;
during the year ending on July 1 of the year. The department must
submit the report under this subsection not later than August 1 of the
year and in an electronic format under IC 5-14-6.
(d) (c) The department shall adopt rules under IC 4-22-2 with
respect to exempt real property to:
(1) provide just valuations; and
(2) ensure that assessments are:
(A) made; and
(B) recorded;
in accordance with law.
SECTION 15. IC 6-1.1-12-26.1 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2012 (RETROACTIVE)]: Sec. 26.1. (a)
This section applies only to a solar power device that is installed
after December 31, 2011.
(b) This section does not apply to a solar power device that is
owned or operated by a person that provides electricity at
wholesale or retail for consideration other than a person that:
(1) participates in a net metering or feed-in-tariff program
offered by an electric utility with respect to the solar power
device; or
(2) is the owner or host of the solar power device site and a
person consumes on the site the equivalent amount of
electricity that is generated by the solar power device on an
annual basis even if the electricity is sold to a public utility,
including a solar power device directly serving a public
utility's business operations site.
(c) For purposes of this section, "solar power device" means a
device, such as a solar thermal, a photovoltaic, or other solar
energy system, that is designed to use the radiant light or heat from
the sun to produce electricity.
(d) The owner of real property equipped with a solar power
device that is assessed as a real property improvement may have
deducted annually from the assessed value of the real property an
amount equal to:
(1) the assessed value of the real property with the solar
power device included; minus
(2) the assessed value of the real property without the solar
power device.
(e) The owner of a solar power device that is assessed as:
(1) distributable property under IC 6-1.1-8; or
(2) personal property;
may have deducted annually the assessed value of the solar power
device.
SECTION 16. IC 6-1.1-12-27.1, AS AMENDED BY P.L.113-2010,
SECTION 26, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2012 (RETROACTIVE)]: Sec. 27.1. Except as provided
in sections 36 and 44 of this chapter and subject to section 45 of this
chapter, a person who desires to claim the deduction provided by
section 26 or 26.1 of this chapter must file a certified statement in
duplicate, on forms prescribed by the department of local government
finance, with the auditor of the county in which the real property, or
mobile home, manufactured home, or solar power device is subject
to assessment. With respect to real property or a solar power device
that is assessed as distributable property under IC 6-1.1-8 or as
personal property, the person must file the statement during the year
for which the person desires to obtain the deduction. Except as
provided in sections 36 and 44 of this chapter and subject to section 45
of this chapter, with respect to a mobile home which is not assessed as
real property, the person must file the statement during the twelve (12)
months before March 31 of each year for which the person desires to
obtain the deduction. The person must:
(1) own the real property, mobile home, or manufactured home or
own the solar power device; or
(2) be buying the real property, mobile home, or manufactured
home, or solar power device under contract; or
(3) be leasing the real property from the real property owner
and be subject to assessment and property taxation with
respect to the solar power device;
on the date the statement is filed under this section. The statement may
be filed in person or by mail. If mailed, the mailing must be postmarked
on or before the last day for filing. On verification of the statement by
the assessor of the township in which the real property, or mobile
home, manufactured home, or solar power device is subject to
assessment, or the county assessor if there is no township assessor for
the township, the county auditor shall allow the deduction.
SECTION 17. IC 6-1.1-12-37, AS AMENDED BY P.L.172-2011, SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 37. (a) The following definitions apply throughout this section:
(1) "Dwelling" means any of the following:
(A) Residential real property improvements that an individual uses as the individual's residence, including a house or garage.
(B) A mobile home that is not assessed as real property that an individual uses as the individual's residence.
(C) A manufactured home that is not assessed as real property that an individual uses as the individual's residence.
(2) "Homestead" means an individual's principal place of residence:
(A) that is located in Indiana;
(B) that:
(i) the individual owns;
(ii) the individual is buying under a contract; recorded in the county recorder's office, that provides that the individual is to pay the property taxes on the residence;
(iii) the individual is entitled to occupy as a tenant-stockholder (as defined in 26 U.S.C. 216) of a cooperative housing corporation (as defined in 26 U.S.C. 216); or
(iv) is a residence described in section 17.9 of this chapter that is owned by a trust if the individual is an individual described in section 17.9 of this chapter; and
(C) that consists of a dwelling and the real estate, not exceeding one (1) acre, that immediately surrounds that dwelling.
Except as provided in subsection (k), the term does not include property owned by a corporation, partnership, limited liability company, or other entity not described in this subdivision.
(b) Each year a homestead is eligible for a standard deduction from the assessed value of the homestead for an assessment date. The deduction provided by this section applies to property taxes first due and payable for an assessment date only if an individual has an interest in the homestead described in subsection (a)(2)(B) on:
(1) the assessment date; or
(2) any date in the same year after an assessment date that a statement is filed under subsection (e) or section 44 of this chapter, if the property consists of real property.
Subject to subsection (c), the auditor of the county shall record and
make the deduction for the individual or entity qualifying for the
deduction.
(c) 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) sixty percent (60%) 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) forty-five thousand dollars ($45,000).
(d) 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.
(e) Except as provided in sections 17.8 and 44 of this chapter and
subject to section 45 of this chapter, an individual who desires to claim
the deduction provided by this section must file a certified statement in
duplicate, on forms prescribed by the department of local government
finance, with the auditor of the county in which the homestead is
located. The statement must include:
(1) the parcel number or key number of the property and the name
of the city, town, or township in which the property is located;
(2) the name of any other location in which the applicant or the
applicant's spouse owns, is buying, or has a beneficial interest in
residential real property;
(3) the names of:
(A) the applicant and the applicant's spouse (if any):
(i) as the names appear in the records of the United States
Social Security Administration for the purposes of the
issuance of a Social Security card and Social Security
number; or
(ii) that they use as their legal names when they sign their
names on legal documents;
if the applicant is an individual; or
(B) each individual who qualifies property as a homestead
under subsection (a)(2)(B) and the individual's spouse (if any):
(i) as the names appear in the records of the United States
Social Security Administration for the purposes of the
issuance of a Social Security card and Social Security
number; or
(ii) that they use as their legal names when they sign their names on legal documents;
if the applicant is not an individual; and
(4) either:
(A) the last five (5) digits of the applicant's Social Security number and the last five (5) digits of the Social Security number of the applicant's spouse (if any); or
(B) if the applicant or the applicant's spouse (if any) do not have a Social Security number, any of the following for that individual:
(i) The last five (5) digits of the individual's driver's license number.
(ii) The last five (5) digits of the individual's state identification card number.
(iii) If the individual does not have a driver's license or a state identification card, the last five (5) digits of a control number that is on a document issued to the individual by the federal government and determined by the department of local government finance to be acceptable.
If a form or statement provided to the county auditor under this section, IC 6-1.1-22-8.1, or IC 6-1.1-22.5-12 includes the telephone number or part or all of the Social Security number of a party or other number described in subdivision (4)(B) of a party, the telephone number and the Social Security number or other number described in subdivision (4)(B) included are confidential. The statement may be filed in person or by mail. If the statement is mailed, the mailing must be postmarked on or before the last day for filing. The statement applies for that first year and any succeeding year for which the deduction is allowed. With respect to real property, the statement must be completed and dated in the calendar year for which the person desires to obtain the deduction and filed with the county auditor on or before January 5 of the immediately succeeding calendar year. With respect to a mobile home that is not assessed as real property, the person must file the statement during the twelve (12) months before March 31 of the year for which the person desires to obtain the deduction.
(f) If an individual who is receiving the deduction provided by this section or who otherwise qualifies property for a deduction under this section:
(1) changes the use of the individual's property so that part or all of the property no longer qualifies for the deduction under this section; or
(2) is no longer eligible for a deduction under this section on
another parcel of property because:
(A) the individual would otherwise receive the benefit of more
than one (1) deduction under this chapter; or
(B) the individual maintains the individual's principal place of
residence with another individual who receives a deduction
under this section;
the individual must file a certified statement with the auditor of the
county, notifying the auditor of the change of use, not more than sixty
(60) days after the date of that change. An individual who fails to file
the statement required by this subsection is liable for any additional
taxes that would have been due on the property if the individual had
filed the statement as required by this subsection plus a civil penalty
equal to ten percent (10%) of the additional taxes due. The civil penalty
imposed under this subsection is in addition to any interest and
penalties for a delinquent payment that might otherwise be due. One
percent (1%) of the total civil penalty collected under this subsection
shall be transferred by the county to the department of local
government finance for use by the department in establishing and
maintaining the homestead property data base under subsection (i) and,
to the extent there is money remaining, for any other purposes of the
department. This amount becomes part of the property tax liability for
purposes of this article.
(g) The department of local government finance shall adopt rules or
guidelines concerning the application for a deduction under this
section.
(h) This subsection does not apply to property in the first year for
which a deduction is claimed under this section if the sole reason that
a deduction is claimed on other property is that the individual or
married couple maintained a principal residence at the other property
on March 1 in the same year in which an application for a deduction is
filed under this section or, if the application is for a homestead that is
assessed as personal property, on March 1 in the immediately
preceding year and the individual or married couple is moving the
individual's or married couple's principal residence to the property that
is the subject of the application. Except as provided in subsection (n),
the county auditor may not grant an individual or a married couple a
deduction under this section if:
(1) the individual or married couple, for the same year, claims the
deduction on two (2) or more different applications for the
deduction; and
(2) the applications claim the deduction for different property.
(i) The department of local government finance shall provide secure
access to county auditors to a homestead property data base that
includes access to the homestead owner's name and the numbers
required from the homestead owner under subsection (e)(4) for the sole
purpose of verifying whether an owner is wrongly claiming a deduction
under this chapter or a credit under IC 6-1.1-20.4, IC 6-1.1-20.6, or
IC 6-3.5.
(j) A county auditor may require an individual to provide
evidence proving that the individual's residence is the individual's
principal place of residence as claimed in the certified statement
filed under subsection (e). The county auditor may limit the
evidence that an individual is required to submit to a state income
tax return, a valid driver's license, or a valid voter registration
card showing that the residence for which the deduction is claimed
is the individual's principal place of residence. The department of
local government finance shall work with county auditors to develop
procedures to determine whether a property owner that is claiming a
standard deduction or homestead credit is not eligible for the standard
deduction or homestead credit because the property owner's principal
place of residence is outside Indiana.
(k) As used in this section, "homestead" includes property that
satisfies each of the following requirements:
(1) The property is located in Indiana and consists of a dwelling
and the real estate, not exceeding one (1) acre, that immediately
surrounds that dwelling.
(2) The property is the principal place of residence of an
individual.
(3) The property is owned by an entity that is not described in
subsection (a)(2)(B).
(4) The individual residing on the property is a shareholder,
partner, or member of the entity that owns the property.
(5) The property was eligible for the standard deduction under
this section on March 1, 2009.
(l) If a county auditor terminates a deduction for property described
in subsection (k) with respect to property taxes that are:
(1) imposed for an assessment date in 2009; and
(2) first due and payable in 2010;
on the grounds that the property is not owned by an entity described in
subsection (a)(2)(B), the county auditor shall reinstate the deduction if
the taxpayer provides proof that the property is eligible for the
deduction in accordance with subsection (k) and that the individual
residing on the property is not claiming the deduction for any other
property.
(m) For assessments dates after 2009, the term "homestead" includes:
(1) a deck or patio;
(2) a gazebo; or
(3) another residential yard structure, as defined in rules adopted by the department of local government finance (other than a swimming pool);
that is assessed as real property and attached to the dwelling.
(n) A county auditor shall grant an individual a deduction under this section regardless of whether the individual and the individual's spouse claim a deduction on two (2) different applications and each application claims a deduction for different property if the property owned by the individual's spouse is located outside Indiana and the individual files an affidavit with the county auditor containing the following information:
(1) The names of the county and state in which the individual's spouse claims a deduction substantially similar to the deduction allowed by this section.
(2) A statement made under penalty of perjury that the following are true:
(A) That the individual and the individual's spouse maintain separate principal places of residence.
(B) That neither the individual nor the individual's spouse has an ownership interest in the other's principal place of residence.
(C) That neither the individual nor the individual's spouse has, for that same year, claimed a standard or substantially similar deduction for any property other than the property maintained as a principal place of residence by the respective individuals.
A county auditor may require an individual or an individual's spouse to provide evidence of the accuracy of the information contained in an affidavit submitted under this subsection. The evidence required of the individual or the individual's spouse may include state income tax returns, excise tax payment information, property tax payment information, driver license information, and voter registration information.
(o) If:
(1) a property owner files a statement under subsection (e) to claim the deduction provided by this section for a particular property; and
(2) the county auditor receiving the filed statement determines that the property owner's property is not eligible for the deduction;
the county auditor shall inform the property owner of the county auditor's determination in writing. If a property owner's property is not eligible for the deduction because the county auditor has determined that the property is not the property owner's principal place of residence, the property owner may appeal the county auditor's determination to the county property tax assessment board of appeals as provided in IC 6-1.1-15. The county auditor shall inform the property owner of the owner's right to appeal to the county property tax assessment board of appeals when the county auditor informs the property owner of the county auditor's determination under this subsection.
SECTION 18. IC 6-1.1-12-41, AS AMENDED BY P.L.146-2008, SECTION 118, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 41. (a) This section does not apply to assessment years beginning after December 31, 2005.
(b) As used in this section, "assessed value of inventory" means the assessed value determined after the application of any deductions or adjustments that apply by statute or rule to the assessment of inventory, other than the deduction allowed under subsection (f).
(c) As used in this section, "county income tax council" means a council established by IC 6-3.5-6-2.
(d) As used in this section, "fiscal body" has the meaning set forth in IC 36-1-2-6.
(e) As used in this section, "inventory" has the meaning set forth in IC 6-1.1-3-11 (repealed).
(f) An ordinance may be adopted in a county to provide that a deduction applies to the assessed value of inventory located in the county. The deduction is equal to one hundred percent (100%) of the assessed value of inventory located in the county for the appropriate year of assessment. An ordinance adopted under this section in a particular year applies:
(1) if adopted before March 31, 2004, to each subsequent assessment year ending before January 1, 2006; and
(2) if adopted after March 30, 2004, and before June 1, 2005, to the March 1, 2005, assessment date.
An ordinance adopted under this section may be consolidated with an ordinance adopted under
(g) An ordinance may not be adopted under subsection (f) after May 30, 2005. However, an ordinance adopted under this section:
(1) before March 31, 2004, may be amended after March 30, 2004; and
(2) before June 1, 2005, may be amended after May 30, 2005;
to consolidate an ordinance adopted under IC 6-3.5-7-26.
(h) The entity that may adopt the ordinance permitted under subsection (f) is:
(1) the county income tax council if the county option income tax is in effect on January 1 of the year in which an ordinance under this section is adopted;
(2) the county fiscal body if the county adjusted gross income tax is in effect on January 1 of the year in which an ordinance under this section is adopted; or
(3) the county income tax council or the county fiscal body, whichever acts first, for a county not covered by subdivision (1) or (2).
To adopt an ordinance under subsection (f), 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. The entity that adopts the ordinance shall provide a certified copy of the ordinance to the department of local government finance before February 1.
(i) A taxpayer is not required to file an application to qualify for the deduction permitted under subsection (f).
(j) The department of local government finance shall incorporate the deduction established in this section in the personal property return form to be used each year for filing under IC 6-1.1-3-7 or IC 6-1.1-3-7.5 to permit the taxpayer to enter the deduction on the form. If a taxpayer fails to enter the deduction on the form, the township assessor, or the county assessor if there is no township assessor for the township, shall:
(1) determine the amount of the deduction; and
(2) within the period established in IC 6-1.1-16-1, issue a notice of assessment to the taxpayer that reflects the application of the deduction to the inventory assessment.
(k) The deduction established in this section must be applied to any inventory assessment made by:
(1) an assessing official;
(2) a county property tax board of appeals; or
(3) the department of local government finance.
SECTION 19. IC 6-1.1-15-10, AS AMENDED BY P.L.146-2008, SECTION 139, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 10. (a) If a petition for review to any board or a proceeding for judicial review in the tax court regarding
an assessment or increase in assessment is pending, the taxes resulting
from the assessment or increase in assessment are, notwithstanding the
provisions of IC 6-1.1-22-9, not due until after the petition for review,
or the proceeding for judicial review, is finally adjudicated and the
assessment or increase in assessment is finally determined. However,
even though a petition for review or a proceeding for judicial review is
pending, the taxpayer shall pay taxes on the tangible property when the
property tax installments come due, unless the collection of the taxes
is enjoined under IC 33-26-6-2 pending a final determination in the
proceeding for judicial review. The amount of taxes which the taxpayer
is required to pay, pending the final determination of the assessment or
increase in assessment, shall be based on:
(1) the assessed value reported by the taxpayer on the taxpayer's
personal property return if a personal property assessment, or an
increase in such an assessment, is involved; or
(2) an amount based on the immediately preceding year's
assessment of real property if an assessment, or increase in
assessment, of real property is involved.
(b) If the petition for review or the proceeding for judicial review is
not finally determined by the last installment date for the taxes, the
taxpayer, upon showing of cause by a taxing official or at the tax court's
discretion, may be required to post a bond or provide other security in
an amount not to exceed the taxes resulting from the contested
assessment or increase in assessment.
(c) Each county auditor shall keep separate on the tax duplicate a
record of that portion of the assessed value of property that is described
in IC 6-1.1-17-0.5(b). When establishing rates and calculating state
school support, the department of local government finance shall
exclude from assessed value in the county the net assessed value of
property kept separate on the tax duplicate by the county auditor under
IC 6-1.1-17-0.5.
SECTION 20. IC 6-1.1-17-0.5, AS AMENDED BY
P.L.182-2009(ss), SECTION 113, IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 0.5. (a) For purposes
of this section, "net assessed value" has the meaning set forth in
IC 6-1.1-1-3(a). means assessed value after the application of
deductions, exemptions, and abatements.
(b) The county auditor may exclude and keep separate on the tax
duplicate for taxes payable in a calendar year the net assessed value of
tangible property that meets the following conditions:
(1) The net assessed value of the property is at least nine percent
(9%) of the net assessed value of all tangible property subject to
taxation by a taxing unit. district.
(2) The property is or has been part of a bankruptcy estate that is
subject to protection under the federal bankruptcy code.
(3) The owner of the property has discontinued all business
operations on the property.
(4) There is a high probability that the taxpayer will not pay
property taxes due on the property in the following year.
(c) This section does not limit, restrict, or reduce in any way the
property tax liability on the property.
(d) For each taxing unit district located in the county, the county
auditor may reduce for a calendar year the taxing unit's district's net
assessed value that is certified to the department of local government
finance under section 1 of this chapter and used to set tax rates for the
taxing unit district for taxes first due and payable in the immediately
succeeding calendar year. The county auditor may reduce a taxing
unit's district's net assessed value under this subsection only to enable
the taxing unit district to absorb the effects of reduced property tax
collections in the immediately succeeding calendar year that are
expected to result from any or a combination of the following:
(1) Successful appeals of the assessed value of property located
in the taxing unit. district.
(2) Deductions under IC 6-1.1-12-37 and IC 6-1.1-12-37.5 that
result from the granting of applications for the standard deduction
for the calendar year under IC 6-1.1-12-37 or IC 6-1.1-12-44 after
the county auditor certifies net assessed value as described in this
section.
(3) Deductions that result from the granting of applications for
deductions for the calendar year under IC 6-1.1-12-44 after the
county auditor certifies net assessed value as described in this
section.
(4) Reassessments of real property under IC 6-1.1-4-11.5.
Not later than December 31 of each year, the county auditor shall send
a certified statement, under the seal of the board of county
commissioners, to the fiscal officer of each political subdivision of the
county and to the department of local government finance. The
certified statement must list any adjustments to the amount of the
reduction under this subsection and the information submitted under
section 1 of this chapter that are necessary. The county auditor shall
keep separately on the tax duplicate the amount of any reductions made
under this subsection. The maximum amount of the reduction
authorized under this subsection is determined under subsection (e).
(e) The amount of the reduction in a taxing unit's district's net
assessed value for a calendar year under subsection (d) may not exceed
two percent (2%) of the net assessed value of tangible property subject
to assessment in the taxing unit district in that calendar year.
(f) The amount of a reduction under subsection (d) may not be
offered in a proceeding before the:
(1) county property tax assessment board of appeals;
(2) Indiana board; or
(3) Indiana tax court;
as evidence that a particular parcel has been improperly assessed.
SECTION 21. IC 6-1.1-17-1, AS AMENDED BY P.L.1-2010,
SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 1. (a) On or before August 1 of each year, the
county auditor shall send a certified statement, under the seal of the
board of county commissioners, to the fiscal officer of each political
subdivision of the county and the department of local government
finance. The statement shall contain:
(1) information concerning the assessed valuation in the political
subdivision for the next calendar year;
(2) an estimate of the taxes to be distributed to the political
subdivision during the last six (6) months of the current calendar
year;
(3) the current assessed valuation as shown on the abstract of
charges;
(4) the average growth in assessed valuation in the political
subdivision over the preceding three (3) budget years, excluding
years in which a general reassessment occurs, determined
according to procedures established by the department of local
government finance;
(5) the amount of the political subdivision's net assessed
valuation reduction determined under section 0.5(d) of this
chapter;
(6) for counties with taxing units that cross into or intersect with
other counties, the assessed valuation as shown on the most
current abstract of property; and
(7) any other information at the disposal of the county auditor that
might affect the assessed value used in the budget adoption
process.
(b) The estimate of taxes to be distributed shall be based on:
(1) the abstract of taxes levied and collectible for the current
calendar year, less any taxes previously distributed for the
calendar year; and
(2) any other information at the disposal of the county auditor
which might affect the estimate.
(c) The fiscal officer of each political subdivision shall present the
county auditor's statement to the proper officers of the political
subdivision.
(d) Subject to subsection (e), after the county auditor sends a
certified statement under subsection (a) or an amended certified
statement under this subsection with respect to a political subdivision
and before the department of local government finance certifies its
action with respect to the political subdivision under section 16(f) of
this chapter, the county auditor may amend the information concerning
assessed valuation included in the earlier certified statement. The
county auditor shall send a certified statement amended under this
subsection, under the seal of the board of county commissioners, to:
(1) the fiscal officer of each political subdivision affected by the
amendment; and
(2) the department of local government finance.
(e) Except as provided in subsection (f), before the county auditor
makes an amendment under subsection (d), the county auditor must
provide an opportunity for public comment on the proposed
amendment at a public hearing. The county auditor must give notice of
the hearing under IC 5-3-1. If the county auditor makes the amendment
as a result of information provided to the county auditor by an assessor,
the county auditor shall give notice of the public hearing to the
assessor.
(f) The county auditor is not required to hold a public hearing under
subsection (e) if:
(1) the amendment under subsection (d) is proposed to correct a
mathematical error made in the determination of the amount of
assessed valuation included in the earlier certified statement;
(2) the amendment under subsection (d) is proposed to add to the
amount of assessed valuation included in the earlier certified
statement assessed valuation of omitted property discovered after
the county auditor sent the earlier certified statement; or
(3) the county auditor determines that the amendment under
subsection (d) will not result in an increase in the tax rate or tax
rates of the political subdivision.
SECTION 22. IC 6-1.1-17-1, AS AMENDED BY SEA 19-2012,
SECTION 33, AND AS AMENDED BY EHB 1072-2012, SECTION
21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2013]: Sec. 1. (a) On or before August 1 of each year,
the county auditor shall send a certified statement, under the seal of the
board of county commissioners, to the fiscal officer of each political
subdivision of the county and the department of local government
finance. The statement shall must contain:
(1) information concerning the assessed valuation in the political
subdivision for the next calendar year;
(2) an estimate of the taxes to be distributed to the political
subdivision during the last six (6) months of the current calendar
year;
(3) the current assessed valuation as shown on the abstract of
charges;
(4) the average growth in assessed valuation in the political
subdivision over the preceding three (3) budget years, adjusted
according to procedures established by the department of local
government finance to account for reassessment under
IC 6-1.1-4-4 or IC 6-1.1-4-4.2;
(5) the amount of the political subdivision's net assessed valuation
reduction determined under section 0.5(d) of this chapter;
(6) for counties with taxing units that cross into or intersect with
other counties, the assessed valuation as shown on the most
current abstract of property; and
(7) any other information at the disposal of the county auditor that
might affect the assessed value used in the budget adoption
process.
(b) The estimate of taxes to be distributed shall be based on:
(1) the abstract of taxes levied and collectible for the current
calendar year, less any taxes previously distributed for the
calendar year; and
(2) any other information at the disposal of the county auditor
which might affect the estimate.
(c) The fiscal officer of each political subdivision shall present the
county auditor's statement to the proper officers of the political
subdivision.
(d) Subject to subsection (e), after the county auditor sends a
certified statement under subsection (a) or an amended certified
statement under this subsection with respect to a political subdivision
and before the department of local government finance certifies its
action with respect to the political subdivision under section 16(f) of
this chapter, the county auditor may amend the information concerning
assessed valuation included in the earlier certified statement. The
county auditor shall send a certified statement amended under this
subsection, under the seal of the board of county commissioners, to:
(1) the fiscal officer of each political subdivision affected by the
amendment; and
(2) the department of local government finance.
(e) Except as provided in subsection (f), before the county auditor makes an amendment under subsection (d), the county auditor must provide an opportunity for public comment on the proposed amendment at a public hearing. The county auditor must give notice of the hearing under IC 5-3-1. If the county auditor makes the amendment as a result of information provided to the county auditor by an assessor, the county auditor shall give notice of the public hearing to the assessor.
(f) The county auditor is not required to hold a public hearing under subsection (e) if:
(1) the amendment under subsection (d) is proposed to correct a mathematical error made in the determination of the amount of assessed valuation included in the earlier certified statement;
(2) the amendment under subsection (d) is proposed to add to the amount of assessed valuation included in the earlier certified statement assessed valuation of omitted property discovered after the county auditor sent the earlier certified statement; or
(3) the county auditor determines that the amendment under subsection (d) will not result in an increase in the tax rate or tax rates of the political subdivision.
SECTION 23. IC 6-1.1-17-3, AS AMENDED BY P.L.182-2009(ss), SECTION 114, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: 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 or appropriate fiscal body, if the political subdivision is subject to section 20 of this chapter, 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.
year. The first publication must be before September 14, and the
second publication must be before September 21 of the year. The
political subdivision shall pay for the publishing of the notice.
(b) 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.
(c) 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.
(d) This subsection expires January 1, 2009. 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.
SECTION 24. IC 6-1.1-17-3.5, AS AMENDED BY
P.L.182-2009(ss), SECTION 115, IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 3.5. (a) This section
does not apply to civil taxing units located in a county in which a
county board of tax adjustment reviews budgets, tax rates, and tax
levies. This section does not apply to a civil taxing unit that has its
proposed budget and proposed property tax levy approved under
section 20 or 20.3 of this chapter or IC 36-3-6-9.
(b) This section applies to a civil taxing unit other than a county. If
a civil taxing unit will impose property taxes due and payable in the
ensuing calendar year, the civil taxing unit shall file the following
information in the manner prescribed by the department of local
government finance with the fiscal body of the county in which the
civil taxing unit is located:
(1) A statement of the proposed or estimated tax rate and tax levy
for the civil taxing unit for the ensuing budget year. and
(2) In the case of a taxing unit other than a school
corporation, a copy of the civil taxing unit's proposed budget for
the ensuing budget year.
(c) In the case of a civil taxing unit located in more than one (1)
county, the civil taxing unit shall file the information under subsection
(b) with the fiscal body of the county in which the greatest part of the
civil taxing unit's net assessed valuation is located.
(d) A civil taxing unit must file the information under subsection (b)
at least forty-five (45) days before the civil taxing unit fixes its tax rate
and tax levy and adopts its budget under this chapter. before
September 2 of a year.
(e) A county fiscal body shall complete the following at least fifteen
(15) days before the civil taxing unit fixes its tax rate and tax levy and
adopts its budget under this chapter: in a manner prescribed by the
department of local government finance before October 2 of a
year:
(1) Review any proposed or estimated tax rate or tax levy or
proposed budget filed by a civil taxing unit with the county fiscal
body under this section.
(2) In the case of a taxing unit other than a school
corporation, review any proposed or estimated budget filed by
a taxing unit with the county fiscal body under this section.
(2) (3) In the case of a taxing unit other than a school
corporation, issue a nonbinding recommendation to a civil taxing
unit regarding the civil taxing unit's proposed or estimated tax rate
or tax levy or proposed budget.
(f) The recommendation under subsection (e) must include a
comparison of any increase in the civil taxing unit's budget or tax levy
to:
(1) the average increase in Indiana nonfarm personal income for
the preceding six (6) calendar years and the average increase in
nonfarm personal income for the county for the preceding six (6)
calendar years; and
(2) increases in the budgets and tax levies of other civil taxing
units in the county.
(g) The department of local government finance must provide each
county fiscal body with the most recent available information
concerning increases in Indiana nonfarm personal income and
increases in county nonfarm personal income.
(h) If a civil taxing unit fails to file the information required by
subsection (b) with the fiscal body of the county in which the civil
taxing unit is located by the time prescribed in subsection (d), the most
recent annual appropriations and annual tax levy of that civil taxing
unit are continued for the ensuing budget year.
(i) If a county fiscal body fails to complete the requirements of
subsection (e) before the deadline in subsection (e) for any civil taxing
unit subject to this section, the most recent annual appropriations and
annual tax levy of the county are continued for the ensuing budget year.
SECTION 25. IC 6-1.1-17-8.5, AS ADDED BY P.L.154-2006,
SECTION 43, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 8.5. (a) If a county auditor reduces a taxing unit's
net assessed valuation under section 0.5(d) of this chapter, the
department of local government finance shall, in the manner prescribed
in section 16 of this chapter, review the budget, tax rate, and tax levy
of the taxing unit.
(b) The county auditor may appeal to the department of local
government finance to reduce a taxing unit's net assessed valuation by
an amount that exceeds the limits set forth in section 0.5(e) of this
chapter. The department of local government finance:
(1) may require the county auditor to submit supporting
information with the county auditor's appeal;
(2) shall consider the appeal at the time of the review required by
subsection (a); and
(3) may approve, modify and approve, or reject the amount of the
reduction sought in the appeal.
SECTION 26. IC 6-1.1-17-16, AS AMENDED BY
P.L.182-2009(ss), SECTION 123, IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 16. (a) Subject to the
limitations and requirements prescribed in this section, the department
of local government finance may revise, reduce, or increase a political
subdivision's budget by fund, tax rate, or tax levy which the department
reviews under section 8 or 10 of this chapter.
(b) Subject to the limitations and requirements prescribed in this
section, the department of local government finance may review,
revise, reduce, or increase the budget by fund, tax rate, or tax levy of
any of the political subdivisions whose tax rates compose the aggregate
tax rate within a political subdivision whose budget, tax rate, or tax
levy is the subject of an appeal initiated under this chapter.
(c) Except as provided in subsections (j) and (k), before the
department of local government finance reviews, revises, reduces, or
increases a political subdivision's budget by fund, tax rate, or tax levy
under this section, the department must hold a public hearing on the
budget, tax rate, and tax levy. The department of local government
finance shall hold the hearing in the county in which the political
subdivision is located. The department of local government finance
may consider the budgets by fund, tax rates, and tax levies of several
political subdivisions at the same public hearing. At least five (5) days
before the date fixed for a public hearing, the department of local
government finance shall give notice of the time and place of the
hearing and of the budgets by fund, levies, and tax rates to be
considered at the hearing. The department of local government finance
shall publish the notice in two (2) newspapers of general circulation
published in the county. However, if only one (1) newspaper of general
circulation is published in the county, the department of local
government finance shall publish the notice in that newspaper.
(d) Except as provided in subsection (i), IC 20-46, or IC 6-1.1-18.5,
the department of local government finance may not increase a political
subdivision's budget by fund, tax rate, or tax levy to an amount which
exceeds the amount originally fixed by the political subdivision.
However, if the department of local government finance determines
that IC 5-3-1-2.3(b) applies to the tax rate, tax levy, or budget of the
political subdivision, the maximum amount by which the department
may increase the tax rate, tax levy, or budget is the amount originally
fixed by the political subdivision, and not the amount that was
incorrectly published or omitted in the notice described in
IC 5-3-1-2.3(b). The department of local government finance shall give
the political subdivision written notification electronically in the
manner prescribed by the department of local government finance
specifying any revision, reduction, or increase the department proposes
in a political subdivision's tax levy or tax rate. The political subdivision
has ten (10) calendar days from the date the political subdivision
receives the notice to provide a written response to electronically in
the manner prescribed by the department of local government
finance's Indianapolis office. finance. The response may include
budget reductions, reallocation of levies, a revision in the amount of
miscellaneous revenues, and further review of any other item about
which, in the view of the political subdivision, the department is in
error. The department of local government finance shall consider the
adjustments as specified in the political subdivision's response if the
response is provided as required by this subsection and shall deliver a
final decision to the political subdivision.
(e) The department of local government finance may not approve a
levy for lease payments by a city, town, county, library, or school
corporation if the lease payments are payable to a building corporation
for use by the building corporation for debt service on bonds and if:
(1) no bonds of the building corporation are outstanding; or
(2) the building corporation has enough legally available funds on
hand to redeem all outstanding bonds payable from the particular
lease rental levy requested.
(f) The department of local government finance shall certify its
action to:
(1) the county auditor;
(2) the political subdivision if the department acts pursuant to an
appeal initiated by the political subdivision;
(3) the taxpayer that initiated an appeal under section 13 of this
chapter, or, if the appeal was initiated by multiple taxpayers, the
first ten (10) taxpayers whose names appear on the statement filed
to initiate the appeal; and
(4) a taxpayer that owns property that represents at least ten
percent (10%) of the taxable assessed valuation in the political
subdivision.
(g) The following may petition for judicial review of the final
determination of the department of local government finance under
subsection (f):
(1) If the department acts under an appeal initiated by a political
subdivision, the political subdivision.
(2) If the department:
(A) acts under an appeal initiated by one (1) or more taxpayers
under section 13 of this chapter; or
(B) fails to act on the appeal before the department certifies its
action under subsection (f);
a taxpayer who signed the statement filed to initiate the appeal.
(3) If the department acts under an appeal initiated by the county
auditor under section 14 of this chapter, the county auditor.
(4) A taxpayer that owns property that represents at least ten
percent (10%) of the taxable assessed valuation in the political
subdivision.
The petition must be filed in the tax court not more than forty-five (45)
days after the department certifies its action under subsection (f).
(h) The department of local government finance is expressly
directed to complete the duties assigned to it under this section not later
than February 15th of each year for taxes to be collected during that
year.
(i) Subject to the provisions of all applicable statutes, the
department of local government finance may increase a political
subdivision's tax levy to an amount that exceeds the amount originally
fixed by the political subdivision if the increase is:
(1) requested in writing by the officers of the political
subdivision;
(2) either:
(A) based on information first obtained by the political
subdivision after the public hearing under section 3 of this
chapter; or
(B) results from an inadvertent mathematical error made in
determining the levy; and
(3) published by the political subdivision according to a notice
provided by the department.
(j) The department of local government finance shall annually
review the budget by fund of each school corporation not later than
April 1. The department of local government finance shall give the
school corporation written notification specifying any revision,
reduction, or increase the department proposes in the school
corporation's budget by fund. A public hearing is not required in
connection with this review of the budget.
(k) The department of local government finance may hold a hearing
under subsection (c) only if the notice required in section 12 of this
chapter is published at least ten (10) days before the date of the
hearing.
SECTION 27. IC 6-1.1-17-20, AS AMENDED BY P.L.113-2010,
SECTION 29, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 20. (a) This section applies to each governing
body of a taxing unit that
(1) is not comprised of a majority of officials who are elected to
serve on the governing body. and
(2) either:
(A) is:
(i) a conservancy district subject to IC 14-33-9;
(ii) a solid waste management district subject to IC 13-21;
or
(iii) a fire protection district subject to IC 36-8-11-18; or
(B) has a percentage increase in the proposed budget for the
taxing unit for the ensuing calendar year that is more than the
result of:
(i) the assessed value growth quotient determined under
IC 6-1.1-18.5-2 for the ensuing calendar year; minus
(ii) one (1).
For purposes of this section, an individual who qualifies to be appointed to a governing body or serves on a governing body because of the individual's status as an elected official of another taxing unit shall be treated as an official who was not elected to serve on the governing body.
(b) As used in this section, "taxing unit" has the meaning set forth in IC 6-1.1-1-21, except that the term does not include
(c) If:
(1) the assessed valuation of a taxing unit is entirely contained within a city or town; or
(2) the assessed valuation of a taxing unit is not entirely contained within a city or town but the taxing unit was originally established by the city or town;
the governing body shall submit its proposed budget and property tax levy to the city or town fiscal body. The proposed budget and levy shall be submitted
(d) If subsection (c) does not apply, the governing body of the taxing unit shall submit its proposed budget and property tax levy to the county fiscal body in the county where the taxing unit has the most assessed valuation. The proposed budget and levy shall be submitted
(e) The fiscal body of the city, town, or county (whichever applies) shall review each budget and proposed tax levy and adopt a final budget and tax levy for the taxing unit. The fiscal body may reduce or modify but not increase the proposed budget or tax levy.
(f) If a taxing unit fails to file the information required in subsection
(c) or (d), whichever applies, with the appropriate fiscal body by the
time prescribed by this section, the most recent annual appropriations
and annual tax levy of that taxing unit are continued for the ensuing
budget year.
(g) If the appropriate fiscal body fails to complete the requirements
of subsection (e) before the adoption deadline in section 5 of this
chapter for any taxing unit subject to this section, the most recent
annual appropriations and annual tax levy of the city, town, or county,
whichever applies, are continued for the ensuing budget year.
SECTION 28. IC 6-1.1-17-20.3 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2012]: Sec. 20.3. (a) This section applies only
to the governing body of a public library that:
(1) is not comprised of a majority of officials who are elected
to serve on the governing body; and
(2) has a percentage increase in the proposed budget for the
taxing unit for the ensuing calendar year that is more than the
result of:
(A) the assessed value growth quotient determined under
IC 6-1.1-18.5-2 for the ensuing calendar year; minus
(B) one (1).
For purposes of this section, an individual who qualifies to be
appointed to a governing body or serves on a governing body
because of the individual's status as an elected official of another
taxing unit shall be treated as an official who was not elected to
serve on the governing body.
(b) This section does not apply to an entity whose tax levies are
subject to review and modification by a city-county legislative body
under IC 36-3-6-9.
(c) If:
(1) the assessed valuation of a public library is entirely
contained within a city or town; or
(2) the assessed valuation of a public library is not entirely
contained within a city or town but the public library was
originally established by the city or town;
the governing body shall submit its proposed budget and property
tax levy to the city or town fiscal body in the manner prescribed by
the department of local government finance before September 2 of
a year. However, the governing body shall submit its proposed
budget and property tax levy to the county fiscal body in the
manner provided in subsection (d), rather than to the city or town
fiscal body, if more than fifty percent (50%) of the parcels of real
property within the jurisdiction of the public library are located
outside the city or town.
(d) If subsection (c) does not apply, the governing body of the
public library shall submit its proposed budget and property tax
levy to the county fiscal body in the county where the public
library has the most assessed valuation. The proposed budget and
levy shall be submitted to the county fiscal body in the manner
prescribed by the department of local government finance before
September 2 of a year.
(e) The fiscal body of the city, town, or county (whichever
applies) shall review each budget and proposed tax levy and adopt
a final budget and tax levy for the public library. The fiscal body
may reduce or modify but not increase the proposed budget or tax
levy.
(f) If a public library fails to file the information required in
subsection (c) or (d), whichever applies, with the appropriate fiscal
body by the time prescribed by this section, the most recent annual
appropriations and annual tax levy of that public library are
continued for the ensuing budget year.
(g) If the appropriate fiscal body fails to complete the
requirements of subsection (e) before the adoption deadline in
section 5 of this chapter for any public library subject to this
section, the most recent annual appropriations and annual tax levy
of the city, town, or county, whichever applies, are continued for
the ensuing budget year.
SECTION 29. IC 6-1.1-18-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 5. (a) If the proper
officers of a political subdivision desire to appropriate more money for
a particular year than the amount prescribed in the budget for that year
as finally determined under this article, they shall give notice of their
proposed additional appropriation. The notice shall state the time and
place at which a public hearing will be held on the proposal. The notice
shall be given once in accordance with IC 5-3-1-2(b).
(b) If the additional appropriation by the political subdivision is
made from a fund that receives:
(1) distributions from the motor vehicle highway account
established under IC 8-14-1-1 or the local road and street account
established under IC 8-14-2-4; or
(2) revenue from property taxes levied under IC 6-1.1;
the political subdivision must report the additional appropriation to the
department of local government finance. If the additional appropriation
is made from a fund described under this subsection, subsections (f),
(g), (h), and (i) apply to the political subdivision.
(c) However, if the additional appropriation is not made from a fund
described under subsection (b), subsections (f), (g), (h), and (i) do not
apply to the political subdivision. Subsections (f), (g), (h), and (i) do
not apply to an additional appropriation made from the cumulative
bridge fund if the appropriation meets the requirements under
IC 8-16-3-3(c).
(d) A political subdivision may make an additional appropriation
without approval of the department of local government finance if the
additional appropriation is made from a fund that is not described
under subsection (b). However, the fiscal officer of the political
subdivision shall report the additional appropriation to the department
of local government finance.
(e) After the public hearing, the proper officers of the political
subdivision shall file a certified copy of their final proposal and any
other relevant information to the department of local government
finance.
(f) When the department of local government finance receives a
certified copy of a proposal for an additional appropriation under
subsection (e), the department shall determine whether sufficient funds
are available or will be available for the proposal. The determination
shall be made in writing and sent to the political subdivision not more
than fifteen (15) days after the department of local government finance
receives the proposal.
(g) In making the determination under subsection (f), the
department of local government finance shall limit the amount of the
additional appropriation to revenues available, or to be made available,
which have not been previously appropriated.
(h) If the department of local government finance disapproves an
additional appropriation under subsection (f), the department shall
specify the reason for its disapproval on the determination sent to the
political subdivision.
(i) A political subdivision may request a reconsideration of a
determination of the department of local government finance under this
section by filing a written request for reconsideration. A request for
reconsideration must:
(1) be filed with the department of local government finance
within fifteen (15) days of the receipt of the determination by the
political subdivision; and
(2) state with reasonable specificity the reason for the request.
The department of local government finance must act on a request for
reconsideration within fifteen (15) days of receiving the request.
(j) This subsection applies to an additional appropriation by a political subdivision that must have the political subdivision's annual appropriations and annual tax levy adopted by a city, town, or county fiscal body under IC 6-1.1-17-20 or by a legislative or fiscal body under IC 36-3-6-9. The fiscal or legislative body of the city, town, or county that adopted the political subdivision's annual appropriation and annual tax levy must adopt the additional appropriation by ordinance before the department of local government finance may approve the additional appropriation.
(k) This subsection applies to a public library that:
(1) is required to submit the public library's budgets, tax rates, and tax levies for nonbinding review under IC 6-1.1-17-3.5; and
(2) is not required to submit the public library's budgets, tax rates, and tax levies for binding review and approval under IC 6-1.1-17-20.
If a public library subject to this subsection proposes to make an additional appropriation for a year, and the additional appropriation would result in the budget for the library for that year increasing (as compared to the previous year) by a percentage that is greater than the result of the assessed value growth quotient determined under IC 6-1.1-18.5-2 for the calendar year minus one (1), the additional appropriation must first be approved by the city, town, or county fiscal body described in IC 6-1.1-17-20.3(c) or IC 6-1.1-17-20(d), as appropriate.
SECTION 30. IC 6-1.1-18-12, AS AMENDED BY P.L.172-2011, SECTION 34, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2013]: Sec. 12. (a) For purposes of this section, "maximum rate" refers to the maximum:
(1) property tax rate or rates; or
(2) special benefits tax rate or rates;
referred to in the statutes listed in subsection (d).
(b) The maximum rate for taxes first due and payable after 2003 is the maximum rate that would have been determined under subsection (e) for taxes first due and payable in 2003 if subsection (e) had applied for taxes first due and payable in 2003.
(c) The maximum rate must be adjusted each year to account for the change in assessed value of real property that results from:
(1) an annual adjustment of the assessed value of real property under IC 6-1.1-4-4.5; or
(2) a general reassessment of real property under IC 6-1.1-4-4.
(d) The statutes to which subsection (a) refers are:
(1) IC 8-10-5-17;
(2) IC 8-22-3-11;
(3) IC 8-22-3-25;
(4) IC 12-29-1-1;
(5) IC 12-29-1-2;
(6) IC 12-29-1-3;
(7) IC 12-29-3-6;
(8) IC 13-21-3-12;
(9) IC 13-21-3-15;
(10) IC 14-27-6-30;
(11) IC 14-33-7-3;
(12) IC 14-33-21-5;
(13) IC 15-14-7-4;
(14) IC 15-14-9-1;
(15) IC 15-14-9-2;
(16) IC 16-20-2-18;
(17) IC 16-20-4-27;
(18) IC 16-20-7-2;
(19) IC 16-22-14;
(20) IC 16-23-1-29;
(21) IC 16-23-3-6;
(22) IC 16-23-4-2;
(23) IC 16-23-5-6;
(24) IC 16-23-7-2;
(25) IC 16-23-8-2;
(26) IC 16-23-9-2;
(27) IC 16-41-15-5;
(28) IC 16-41-33-4;
(29) IC 20-46-2-3 (before its repeal on January 1, 2009);
(30) IC 20-46-6-5;
(31) IC 20-49-2-10;
(32) IC 36-1-19-1;
(33) IC 23-14-66-2;
(34) IC 23-14-67-3;
(35) IC 36-7-13-4;
(36) IC 36-7-14-28;
(37) IC 36-7-15.1-16;
(38) IC 36-8-19-8.5;
(39) IC 36-9-6.1-2;
(40) IC 36-9-17.5-4;
(41) IC 36-9-27-73;
(42) IC 36-9-29-31;
(43) IC 36-9-29.1-15;
(44) IC 36-10-6-2;
(45) IC 36-10-7-7;
(46) IC 36-10-7-8;
(47) IC 36-10-7.5-19;
(48) IC 36-10-13-5;
(49) IC 36-10-13-7;
(50) IC 36-10-14-4;
(51) IC 36-12-7-7;
(52) IC 36-12-7-8;
(53) IC 36-12-12-10;
(54) a statute listed in IC 6-1.1-18.5-9.8; and
(A) establishes a maximum rate for any part of the:
(i) property taxes; or
(ii) special benefits taxes;
imposed by a political subdivision; and
(B) does not exempt the maximum rate from the adjustment under this section.
(e) For property tax rates imposed for property taxes first due and payable after December 31, 2012, the new maximum rate under a statute listed in subsection (d) is the tax rate determined under STEP
STEP ONE: Except as provided in subsection (g), determine the maximum rate for the political subdivision levying a property tax or special benefits tax under the statute for the year preceding the year in which the annual adjustment or general reassessment takes effect.
STEP TWO:
STEP THREE: Determine the three (3) calendar years that immediately precede the ensuing calendar year and in which a statewide general reassessment of real property does not first take effect.
STEP FOUR:
one-hundredth percent (0.01%)) in the assessed value (before the
adjustment, if any, under IC 6-1.1-4-4.5) of the taxable property
from the preceding year.
STEP FIVE: Divide the sum of the three (3) quotients computed
in STEP FOUR by three (3).
STEP SIX: Determine the greater of the following:
(A) Zero (0).
(B) The STEP FIVE result.
STEP SIX: SEVEN: Determine the greater of the following:
(A) Zero (0).
(B) The result of the STEP TWO percentage minus the STEP
FIVE SIX percentage.
STEP SEVEN: EIGHT: Determine the quotient of the STEP
ONE tax rate divided by the sum of one (1) plus the STEP SIX
SEVEN percentage. increase.
(f) The department of local government finance shall compute the
maximum rate allowed under subsection (e) and provide the rate to
each political subdivision with authority to levy a tax under a statute
listed in subsection (d).
(g) This subsection applies to STEP TWO and STEP FOUR of
subsection (e) for taxes first due and payable after 2011. If the assessed
value change used in the STEPS was not an increase, the STEPS are
applied using instead:
(1) the actual percentage decrease (rounded to the nearest
one-hundredth percent (0.01%)) in the assessed value (before the
adjustment, if any, under IC 6-1.1-4-4.5) of the taxable property;
or
(2) zero (0) if the assessed value did not increase or decrease.
(g) This subsection applies only when calculating the maximum
rate for taxes due and payable in calendar year 2013. The STEP
ONE result is the greater of the following:
(1) The actual maximum rate established for property taxes
first due and payable in calendar year 2012.
(2) The maximum rate that would have been established for
property taxes first due and payable in calendar year 2012 if
the maximum rate had been established under the formula
under this section, as amended in the 2012 session of the
general assembly.
SECTION 31. IC 6-1.1-18-12.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 12.5. (a) The following
definitions apply throughout this section:
(1) "Covered cumulative or capital projects fund" refers to a
fund:
(A) that was listed in a prior cumulative or capital projects
fund adjustment law; and
(B) for which the ad valorem property tax rate certified by
the department of local government finance for property
taxes first due and payable in calendar year 2012 is equal
to the maximum tax rate permitted by law after the
applicable prior cumulative or capital projects fund
adjustment law.
(2) "Fiscal body" has the meaning set forth in IC 36-1-2-6.
(3) "Office" refers to the office of management and budget.
(4) "Prior assessed value adjustment law" refers to section 12
of this chapter, section 13 of this chapter (repealed), and
IC 6-1.1-18.5-9.8, as effective on January 1, 2012, before the
application of the amendments made by HEA 1072-2012.
(5) "Current assessed value adjustment law" refers to section
12 of this chapter, as effective January 1, 2013, after applying
the amendments made by HEA 1072-2012.
(b) Before June 1, 2012, the office shall calculate and certify to
a taxing unit's fiscal body (for each of a taxing unit's covered
cumulative or capital projects funds) the greater of zero (0) or the
result of:
(1) the amount of the property tax levy that could have been
imposed for the covered cumulative or capital projects fund
for property taxes first due and payable in 2012, if the taxing
unit had imposed the maximum property tax rate that would
have been permitted by law after applying the current
assessed value adjustment law as if the current assessed value
adjustment law had been in effect and applied to the
calculation in calendar year 2012; minus
(2) the amount of the property tax levy that results from the
property tax rate that the department of local government
certified under IC 6-1.1-17-16 for the covered cumulative or
capital projects fund for property taxes first due and payable
in calendar year 2012, after applying the prior assessed value
adjustment law.
(c) After receiving the certifications required under subsection
(b), the taxing unit's fiscal body may, for one (1) or more of the
taxing unit's covered cumulative or capital projects funds, adopt
an ordinance or a resolution to request a loan under this section to
replace part or all of the amount certified under this section to the
taxing unit for the fund or funds. To be eligible for a loan under
this section, the resolution must:
(1) identify each covered cumulative or capital projects fund
for which the taxing unit is seeking a loan;
(2) specify the amount of the loan that the taxing unit is
seeking for each covered cumulative or capital projects fund;
(3) agree to impose a property tax levy in calendar year 2013
for the taxing unit's debt service fund to repay in compliance
with this section the total amount loaned; and
(4) be certified and received by the office before July 1, 2012.
(d) If the office receives before July 1, 2012, a certified
ordinance or resolution that qualifies the taxing unit for a loan
under this section, the office shall, before July 15, 2012, distribute
to the taxing unit from the state general fund the lesser of the
following for each covered cumulative or capital projects fund for
which the taxing unit has requested a loan:
(1) The amount requested.
(2) The amount that the office certified for that fund.
No interest or fee may be charged on the amount loaned under this
subsection. An amount sufficient to make the distributions
required by this section are appropriated to the office from the
state general fund in the state fiscal year beginning July 1, 2012,
and ending June 30, 2013.
(e) A taxing unit that receives a loan under this section for one
(1) or more covered cumulative or capital projects funds shall
deposit the loan in the covered cumulative or capital projects funds
for which the taxing unit sought a loan, in proportion to the
amount received for each fund. The amount deposited may be used
for any of the lawful purposes of that fund.
(f) This subsection applies to a taxing unit that receives a loan
under this section. The taxing unit is obligated to repay the amount
distributed under this section. The taxing unit shall impose a
property tax levy for the taxing unit's debt service fund for
property taxes first due and payable in calendar year 2013, equal
to the total amount loaned to the taxing unit under this section. The
property tax levy under this subsection shall be treated as
protected taxes (as defined in IC 6-1.1-20.6-9.8). The taxing unit
shall repay the total amount loaned to the taxing unit under this
section in two (2) equal installments in calendar year 2013 with the
first installment due on the June settlement date specified in
6-1.1-27-3 and the second installment due on the December
settlement specified in IC 6-1.1-27-3.
(g) This subsection does not apply to grants from the federal
government. Upon the failure of a taxing unit to pay an installment
of a loan under this section when due, the treasurer of state may
withhold the amount of the unpaid installment, on the schedule
determined by the office, from any funds held by the state that
would otherwise be due to the taxing unit and deposit the amount
in the fund from which the loan was made. If the amount is
withheld from a distribution to the county auditor under IC 6-3.5
or another statute that provides for the allocation of the
distribution among more than one (1) taxing unit, the amount
withheld reduces the allocation of only the taxing unit for which
the amount was withheld.
(h) The amount of a loan does not create a debt of the taxing
unit for purposes of the Constitution of the State of Indiana.
(i) This SECTION expires January 1, 2015.
SECTION 32. IC 6-1.1-18-13, AS AMENDED BY SEA 19-2012,
SECTION 35, IS REPEALED [EFFECTIVE JANUARY 1, 2013]. Sec.
13. (a) The maximum property tax rate levied under IC 20-46-6 by each
school corporation for the school corporation's capital projects fund
must be adjusted each year to account for the change in assessed value
of real property that results from:
(1) an annual adjustment of the assessed value of real property
under IC 6-1.1-4-4.5; or
(2) a general reassessment of real property under IC 6-1.1-4-4.
(b) The new maximum rate under this section is the tax rate
determined under STEP SEVEN of the following formula:
STEP ONE: Determine the maximum rate for the school
corporation for the year preceding the year in which the annual
adjustment or general reassessment takes effect.
STEP TWO: Determine the actual percentage increase (rounded
to the nearest one-hundredth percent (0.01%)) in the assessed
value (before the adjustment, if any, under IC 6-1.1-4-4.5) of the
taxable property from the year preceding the year the annual
adjustment or general reassessment takes effect to the year that
the annual adjustment or general reassessment is effective.
STEP THREE: Determine the three (3) calendar years that
immediately precede the ensuing calendar year and in which a
statewide general reassessment of real property does not first
become effective.
STEP FOUR: Compute separately, for each of the calendar years
determined in STEP THREE, the actual percentage increase
(rounded to the nearest one-hundredth percent (0.01%)) in the
assessed value (before the adjustment, if any, under
IC 6-1.1-4-4.5) of the taxable property from the preceding year.
STEP FIVE: Divide the sum of the three (3) quotients computed
in STEP FOUR by three (3).
STEP SIX: Determine the greater of the following:
(A) Zero (0).
(B) The result of the STEP TWO percentage minus the STEP
FIVE percentage.
STEP SEVEN: Determine the quotient of the STEP ONE tax rate
divided by the sum of one (1) plus the STEP SIX percentage
increase.
(c) The department of local government finance shall compute the
maximum rate allowed under subsection (b) and provide the rate to
each school corporation.
SECTION 33. IC 6-1.1-18.5-9.8, AS AMENDED BY P.L.172-2011,
SECTION 38, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2013]: Sec. 9.8. (a) For purposes of determining the
property tax levy limit imposed on a city, town, or county under section
3 of this chapter, the city, town, or county's ad valorem property tax
levy for a particular calendar year does not include an amount equal to
the lesser of:
(1) the amount of ad valorem property taxes that would be first
due and payable to the city, town, or county during the ensuing
calendar year if the taxing unit imposed the maximum permissible
property tax rate per one hundred dollars ($100) of assessed
valuation that the civil taxing unit may impose for the particular
calendar year under the authority of IC 36-9-14.5 (in the case of
a county) or IC 36-9-15.5 (in the case of a city or town); or
(2) the excess, if any, of:
(A) the property taxes imposed by the city, town, or county
under the authority of:
IC 3-11-6-9;
IC 8-16-3;
IC 8-16-3.1;
IC 8-22-3-25;
IC 14-27-6-48;
IC 14-33-9-3;
IC 16-22-8-41;
IC 16-22-5-2 through IC 16-22-5-15;
IC 16-23-1-40;
IC 36-8-14;
IC 36-9-4-48;
IC 36-9-14;
IC 36-9-14.5;
IC 36-9-15;
IC 36-9-15.5;
IC 36-9-16;
IC 36-9-16.5;
IC 36-9-17;
IC 36-9-26;
IC 36-9-27-100;
IC 36-10-3-21; or
IC 36-10-4-36;
that are first due and payable during the ensuing calendar year; over
(B) the property taxes imposed by the city, town, or county under the authority of the citations listed in clause (A) that were first due and payable during calendar year 1984.
percentage change (rounded to the nearest one-hundredth percent
(0.01%)) in the assessed value (before the adjustment, if any,
under IC 6-1.1-4-4.5) of the taxable property from the preceding
year.
STEP FIVE: Divide the sum of the three (3) quotients computed
in STEP FOUR by three (3).
STEP SIX: Determine the greater of the following:
(A) Zero (0).
(B) The result of the STEP TWO percentage minus the STEP
FIVE percentage.
STEP SEVEN: Determine the quotient of the STEP ONE tax rate
divided by the sum of one (1) plus the STEP SIX percentage
increase.
(d) The department of local government finance shall compute the
maximum rate allowed under subsection (c) and provide the rate to
each political subdivision with authority to levy a tax under a statute
listed in subsection (a).
(e) This subsection applies to STEP TWO and STEP FOUR of
subsection (c) for taxes first due and payable after 2011. If the assessed
value change used in the STEPS was not an increase, the STEPS are
applied using instead:
(1) the actual percentage decrease (rounded to the nearest
one-hundredth percent (0.01%)) in the assessed value (before the
adjustment, if any, under IC 6-1.1-4-4.5) of the taxable property;
or
(2) zero (0) if the assessed value did not increase or decrease.
SECTION 34. IC 6-1.1-18.5-9.9 IS REPEALED [EFFECTIVE
JANUARY 1, 2013]. Sec. 9.9. (a) The department of local government
finance shall adjust the maximum property tax rate levied under the
statutes listed in section 9.8(a) of this chapter, IC 20-46-3-6, or
IC 20-46-6-5 in each county for property taxes first due and payable in:
(1) 2004;
(2) the year the county first applies the deduction under
IC 6-1.1-12-41, if the county first applies that deduction for
property taxes first due and payable in 2005 or 2006; and
(3) 2007, if the county does not apply the deduction under
IC 6-1.1-12-41 for any year.
(b) If the county does not apply the deduction under IC 6-1.1-12-41
for property taxes first due and payable in 2004, the department shall
compute the adjustment under subsection (a)(1) to allow a levy for the
fund for which the property tax rate is levied that equals the levy that
would have applied for the fund if exemptions under
IC 6-1.1-10-29(b)(2) (repealed) did not apply for the 2003 assessment
date.
(c) If the county applies the deduction under IC 6-1.1-12-41 for
property taxes first due and payable in 2004, the department shall
compute the adjustment under subsection (a)(1) to allow a levy for the
fund for which the property tax rate is levied that equals the levy that
would have applied for the fund if:
(1) exemptions under IC 6-1.1-10-29(b)(2) (repealed); and
(2) deductions under IC 6-1.1-12-41;
did not apply for the 2003 assessment date.
(d) The department shall compute the adjustment under subsection
(a)(2) to allow a levy for the fund for which the property tax rate is
levied that equals the levy that would have applied for the fund if
deductions under IC 6-1.1-12-41 did not apply for the assessment date
of the year that immediately precedes the year for which the adjustment
is made.
(e) The department shall compute the adjustment under subsection
(a)(3) to allow a levy for the fund for which the property tax rate is
levied that equals the levy that would have applied for the fund if
deductions under IC 6-1.1-12-42 did not apply for the 2006 assessment
date.
SECTION 35. IC 6-1.1-20.6-9.8, AS ADDED BY P.L.172-2011,
SECTION 42, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 9.8. (a) This section applies to property taxes first
due and payable after December 31, 2009.
(b) As used in The following definitions this section: apply
throughout this section:
(1) "exempt taxes" "Debt service obligations of a political
subdivision" refers to:
(A) the principal and interest payable during a calendar
year on bonds; and
(B) lease rental payments payable during a calendar year
on leases;
of a political subdivision payable from ad valorem property
taxes.
(2) "Protected taxes" refers to the following:
(A) Property taxes that are exempted from the application of
a credit granted under section 7 or 7.5 of this chapter by
section 7(b), 7(c), 7.5(b), or 7.5(c) of this chapter or another
law. and (2) "nonexempt taxes"
(B) Property taxes imposed by a political subdivision to
pay for debt service obligations of a political subdivision
that are not exempted from the application of a credit
granted under section 7 or 7.5 of this chapter by section
7(b), 7(c), 7.5(b), or 7.5(c) of this chapter or any other law.
Property taxes described in this subsection are subject to
the credit granted under section 7 or 7.5 of this chapter by
section 7(b), 7(c), 7.5(b), or 7.5(c) regardless of their
designation as protected taxes.
(3) "Unprotected taxes" refers to property taxes that are not
exempt protected taxes.
(c) The total amount collected from exempt protected taxes shall
be allocated to the fund for which the exempt protected taxes were
imposed as if no credit were granted under section 7 or 7.5 of this
chapter. The total amount of the loss in revenue resulting from the
granting of credits under section 7 or 7.5 of this chapter must reduce
only the amount of nonexempt unprotected property taxes distributed
to a fund in proportion to the nonexempt unprotected rate tax imposed
for that fund relative to the total of all nonexempt unprotected tax
rates imposed by the taxing unit.
SECTION 36. IC 6-1.1-20.6-10, AS AMENDED BY P.L.172-2011,
SECTION 43, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 10. (a) As used in this section, "debt service
obligations of a political subdivision" refers to:
(1) the principal and interest payable during a calendar year on
bonds; and
(2) lease rental payments payable during a calendar year on
leases;
of a political subdivision payable from ad valorem property taxes.
(b) Political subdivisions are required by law to fully fund the
payment of their debt obligations in an amount sufficient to pay any
debt service or lease rentals on outstanding obligations, regardless of
any reduction in property tax collections due to the application of tax
credits granted under this chapter. If the amount deposited in a fund
from which debt service obligations of the political subdivision are
paid is reduced as a result of the application of a credit granted under
this chapter below the amount needed to meet the debt service
obligations of a political subdivision as the obligations come due, the
political subdivision may transfer funds from one (1) or more of the
other funds of the political subdivision.
(c) Upon the failure of a political subdivision to pay any of the
political subdivision's debt service obligations during a calendar year
when due, the treasurer of state, upon being notified of the failure by
a claimant, shall pay the unpaid debt service obligations that are due
from money in the possession of the state that would otherwise be
available for distribution to the political subdivision under any other
law, deducting the payment from the amount distributed. A deduction
under this subsection must be made:
(1) first from distributions of county adjusted gross income tax
distributions under IC 6-3.5-1.1, county option income tax
distributions under IC 6-3.5-6, or county economic development
income tax distributions under IC 6-3.5-7 that would otherwise be
distributed to the county under the schedule in IC 6-3.5-1.1-10,
IC 6-3.5-1.1-21.1, IC 6-3.5-6-16, IC 6-3.5-6-17.3, IC 6-3.5-7-17,
and IC 6-3.5-7-17.3; and
(2) second from any other undistributed funds of the political
subdivision in the possession of the state.
(d) This section shall be interpreted liberally so that the state shall
to the extent legally valid ensure that the debt service obligations of
each political subdivision are paid when due. However, this section
does not create a debt of the state.
SECTION 37. IC 6-1.1-20.6-11, AS ADDED BY P.L.146-2008,
SECTION 227, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2012]: Sec. 11. The county auditor of each
county shall certify to the department of local government finance
(1) the total amount of credits that are allowed under this chapter
in the county for the calendar year; and
(2) shall annually publish a report on its Internet web site that
lists the amount that each taxing unit's distribution of property
taxes will be reduced under section 9.5 of this chapter as a result
of the granting of the credits.
If the amount of credits granted changes after the date the certification
is made, the county auditor shall submit an amended certification to the
department of local government finance. The initial certification and
the amended certifications shall be submitted to the department of local
government finance on the schedule prescribed by the department of
local government finance.
SECTION 38. IC 6-1.1-21.8-5, AS AMENDED BY P.L.146-2008,
SECTION 245, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2012]: Sec. 5. The maximum amount that the
board may loan to a qualified taxing unit is determined under STEP
FOUR of the following formula:
STEP ONE: Determine the amount of the taxpayer's property
taxes due and payable in November 2001 that are attributable to
the qualified taxing unit as determined by the department of local
government finance.
STEP TWO: Multiply the STEP ONE amount by one and thirty-one thousandths (1.031).
STEP THREE: Multiply the STEP TWO product by two (2).
STEP FOUR: Add the STEP ONE amount to the STEP THREE product.
However, in the case of a qualified taxing unit that is a school corporation, the amount determined under STEP FOUR shall be reduced by the board to the extent that the school corporation receives relief in the form of adjustments to the school corporation's net assessed valuation under IC 6-1.1-17-0.5 or assessed valuation under IC 6-1.1-19-5.3.
SECTION 39. IC 6-1.1-30-17, AS ADDED BY SEA 19-2012, SECTION 43, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 17. (a) Except as provided in subsection (c) and subject to subsection (d), the department of state revenue and the auditor of state shall, when requested by the department of local government finance, withhold a percentage of the distributions of county adjusted gross income tax distributions under IC 6-3.5-1.1, county option income tax distributions under IC 6-3.5-6, or county economic development income tax distributions under IC 6-3.5-7 that would otherwise be distributed to the county under the schedules in IC 6-3.5-1.1-10, IC 6-3.5-1.1-21.1, IC 6-3.5-6-17, IC 6-3.5-6-17.3, IC 6-3.5-7-16, and IC 6-3.5-7-17.3, if:
sent by that date under IC 6-1.1-17-1 to the department of local
government finance;
(7) (6) the county does not maintain a certified computer system
that meets the requirements of IC 6-1.1-31.5-3.5;
(8) (7) the county auditor has not transmitted the data described
in IC 36-2-9-20 to the department of local government finance in
the form and on the schedule specified by IC 36-2-9-20;
(9) (8) the county has not established a parcel index numbering
system under 50 IAC 23-8-1 in a timely manner;
(10) (9) a county official has not provided other information to the
department of local government finance in a timely manner as
required by the department of local government finance; or
(11) (10) the department of local government finance incurs
additional costs to assist a covered county (as defined in
IC 6-1.1-22.6-1) to issue tax statements within the time frame
specified in IC 6-1.1-22.6-18(b) for each year that the county
experienced delayed property taxes (as defined in
IC 6-1.1-22.6-2) before the year in which the county qualifies as
a covered county.
The percentage to be withheld is the percentage determined by the
department of local government finance. However, the percentage
withheld for a reason stated in subdivision (11) (10) may not exceed
the percentage needed to reimburse the department of local government
finance for the costs incurred by the department of local government
finance to take the actions necessary to permit a covered county (as
defined in IC 6-1.1-22.6-1) to issue reconciling tax statements for prior
year delayed property taxes (as defined in IC 6-1.1-22.6-2) within the
time frame specified in IC 6-1.1-22.6-18(b). The county governmental
taxing unit of a covered county (as defined in IC 6-1.1-22.6-1) shall
reimburse the department of local government finance for these
expenses. The amount withheld under subdivision (11) (10) reduces
only the amount that would otherwise be distributed to the county
governmental taxing unit of a covered county (as defined in
IC 6-1.1-22.6-1) and not money distributable to any other political
subdivision. The withholding of an amount under subdivision (11) (10)
does not relieve the county government of a covered county (as defined
in IC 6-1.1-22.6-1) from making bond or lease payments that would
otherwise be paid from withheld amounts or providing property tax
credits that would otherwise be provided under IC 6-3.5 from withheld
amounts. Subdivision (11) (10) does not apply to any county other than
a covered county (as defined in IC 6-1.1-22.6-1).
(b) Except as provided in subsection (e), money not distributed for
the reasons stated in subsection (a) shall be distributed to the county
when the department of local government finance determines that the
failure to:
(1) provide information; or
(2) pay a bill for services;
has been corrected.
(c) The restrictions on distributions under subsection (a) do not
apply if the department of local government finance determines that the
failure to:
(1) provide information; or
(2) pay a bill for services;
in a timely manner is justified by unusual circumstances.
(d) The department of local government finance shall give the
county auditor at least thirty (30) days notice in writing before the
department of state revenue or the auditor of state withholds a
distribution under subsection (a).
(e) Money not distributed for the reason stated in subsection (a)(3)
(a)(2) may be deposited in the fund established by IC 6-1.1-5.5-4.7(a).
Money deposited under this subsection is not subject to distribution
under subsection (b).
(f) This subsection applies to a county that will not receive a
distribution under IC 6-3.5-1.1, IC 6-3.5-6, or IC 6-3.5-7. At the request
of the department of local government finance, an amount permitted to
be withheld under subsection (a) may be withheld from any state
revenues that would otherwise be distributed to the county or one (1)
or more taxing units in the county.
SECTION 40. IC 6-1.1-37-11 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 11. (a) If a taxpayer is
entitled to a property tax refund or credit because an assessment is
decreased, the taxpayer shall also be paid, or credited with, interest on
the excess taxes that he the taxpayer paid at the rate of four percent
(4%) per annum.
(b) For purposes of this section and except as provided in subsection
(c), the interest shall be computed from the date on which the taxes
were paid or due, whichever is later, to the date of the refund or credit.
If a taxpayer is sent a provisional tax statement and is later sent a
final or reconciling tax statement, interest shall be computed after
the date on which the taxes were paid or first due under the
provisional tax statement, whichever is later, through the date of
the refund or credit.
(c) This subsection applies if a taxpayer who is entitled to a refund
or credit does not make a written request for the refund or credit to the
county auditor within forty-five (45) days after the final determination
of the county property tax assessment board of appeals, the state board
of tax commissioners, the department of local government finance, the
Indiana board, or the tax court that entitles the taxpayer to the refund
or credit. In the case of a taxpayer described in this subsection, the
interest shall be computed from the date on which the taxes were paid
or due to the date that is forty-five (45) days after the final
determination of the county property tax assessment board of appeals,
the state board of tax commissioners, the department of local
government finance, the Indiana board of tax review, or the Indiana tax
court. In any event, a property tax refund or credit must be issued not
later than ninety (90) days after the request is received.
SECTION 41. IC 6-1.1-41-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 3. (a) A political
subdivision that decides to establish a fund under this chapter must:
(1) give notice of the proposal to the affected taxpayers; and
(2) hold a public hearing on the proposal;
before presenting the proposal to the department of local government
finance for approval.
(b) Notice of the proposal and of the public hearing shall be given
by publication in accordance with IC 5-3-1.
(c) For a cumulative fund authorized under IC 3-11-6 or
IC 8-10-5-17, the political subdivision imposing a property tax levy
shall post a notice of the proposal and the public hearing in three (3)
public places in the political subdivision.
(d) A notice required by this section must describe the tax levy that
will be imposed for the fund.
(e) If a political subdivision adopts a proposal to establish a fund
or modify a tax rate under this chapter at a public hearing held in
accordance with this section, the political subdivision shall publish
notice of adoption in accordance with IC 5-3-1-2(i) in a manner
prescribed by the department of local government finance.
SECTION 42. IC 6-1.1-41-5 IS REPEALED [EFFECTIVE JULY
1, 2012]. Sec. 5. The department of local government finance shall
require that a notice of submission under section 3 of this chapter be
given to the taxpayers of the county. The notice shall be published in
one (1) publication and posted in the same manner as required by
section 3 of this chapter.
SECTION 43. IC 6-1.1-41-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 6. Not later than noon
thirty (30) days after the publication of the notice of adoption required
by section 3 of this chapter:
(1) at least ten (10) taxpayers in the taxing district, if the fund is authorized under IC 8-10-5-17, IC 8-16-3-1, IC 8-16-3.1-4, IC 14-27-6-48, IC 14-33-21-2, IC 36-8-14-2, IC 36-9-4-48, or IC 36-10-4-36;
(2) at least twenty (20) taxpayers in a county served by a hospital, if the fund is authorized under IC 16-22-4-1;
(3) at least thirty (30) taxpayers in a tax district, if the fund is authorized under IC 36-10-3-21 or IC 36-10-7.5-19;
(4) at least fifty (50) taxpayers in a municipality, township, or county, if subdivision (1), (2), (3), or (5) does not apply; or
(5) at least one hundred (100) taxpayers in the county, if the fund is authorized by IC 3-11-6;
may file a petition with the county auditor stating their objections to an action described in section 2 of this chapter. Upon the filing of the petition, the county auditor shall immediately certify the petition to the department of local government finance.
SECTION 44. IC 6-1.1-41-9 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 9. (a) After a hearing upon a proposal under section 7 of this chapter, the department of local government finance shall certify approval, disapproval, or modification of the proposal to the county auditor.
(b) A:
(1) taxpayer who signed a petition filed under section 6 of this chapter; or
(2) political subdivision against which a petition under section 6 of this chapter is filed;
may petition for judicial review of the final determination of the department of local government finance under subsection (a). The petition must be filed in the tax court not more than forty-five (45) days after the department certifies its action under subsection (a).
SECTION 45. IC 6-2.3-4-7 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2013]: Sec. 7. Gross receipts are exempt from the utility receipts tax if the gross receipts are received by a taxpayer from an electricity supplier (as defined in IC 8-1-2.3-2) as payment of severance damages or other compensation resulting from a change in assigned service area boundaries under IC 8-1-2.3-6(1), IC 8-1-2.3-6(2), or IC 8-1-2.3-6(3).
SECTION 46. IC 6-2.5-4-5, AS AMENDED BY HEA 1141-2012, SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2012 (RETROACTIVE)]: Sec. 5. (a) As used in this section, a "power subsidiary" means a corporation which is owned or
controlled by one (1) or more public utilities that furnish or sell
electrical energy, natural or artificial gas, water, steam, or steam heat
and which produces power exclusively for the use of those public
utilities.
(b) A power subsidiary or a person engaged as a public utility is a
retail merchant making a retail transaction when the subsidiary or
person furnishes or sells electrical energy, natural or artificial gas,
water, steam, or steam heating service to a person for commercial or
domestic consumption.
(c) Notwithstanding subsection (b), a power subsidiary or a person
engaged as a public utility is not a retail merchant making a retail
transaction in any of the following transactions:
(1) The power subsidiary or person provides, installs, constructs,
services, or removes tangible personal property which is used in
connection with the furnishing of the services or commodities
listed in subsection (b).
(2) The power subsidiary or person sells the services or
commodities listed in subsection (b) to another public utility or
power subsidiary described in this section or a person described
in section 6 of this chapter.
(3) The power subsidiary or person sells the services or
commodities listed in subsection (b) to a person for use in
manufacturing, mining, production, processing (after December
31, 2012), repairing (after December 31, 2012), refining,
recycling (as defined in IC 6-2.5-5-45.8), oil extraction, mineral
extraction, irrigation, agriculture, floriculture (after December
31, 2012), arboriculture (after December 31, 2012), or
horticulture. However, this exclusion for sales of the services and
commodities only applies if the services are consumed as an
essential and integral part of an integrated process that produces
tangible personal property and those sales are separately metered
for the excepted uses listed in this subdivision, or if those sales
are not separately metered but are predominately used by the
purchaser for the excepted uses listed in this subdivision.
(4) The power subsidiary or person sells the services or
commodities listed in subsection (b) and all the following
conditions are satisfied:
(A) The services or commodities are sold to a business that
after June 30, 2004:
(i) relocates all or part of its operations to a facility; or
(ii) expands all or part of its operations in a facility;
located in a military base (as defined in IC 36-7-30-1(c)), a
military base reuse area established under IC 36-7-30, the part
of an economic development area established under
IC 36-7-14.5-12.5 that is or formerly was a military base (as
defined in IC 36-7-30-1(c)), a military base recovery site
designated under IC 6-3.1-11.5, or a qualified military base
enhancement area established under IC 36-7-34.
(B) The business uses the services or commodities in the
facility described in clause (A) not later than five (5) years
after the operations that are relocated to the facility or
expanded in the facility commence.
(C) The sales of the services or commodities are separately
metered for use by the relocated or expanded operations.
(D) In the case of a business that uses the services or
commodities in a qualified military base enhancement area
established under IC 36-7-34-4(1), the business must satisfy at
least one (1) of the following criteria:
(i) The business is a participant in the technology transfer
program conducted by the qualified military base (as defined
in IC 36-7-34-3).
(ii) The business is a United States Department of Defense
contractor.
(iii) The business and the qualified military base have a
mutually beneficial relationship evidenced by a
memorandum of understanding between the business and
the United States Department of Defense.
(E) In the case of a business that uses the services or
commodities in a qualified military base enhancement area
established under IC 36-7-34-4(2), the business must satisfy at
least one (1) of the following criteria:
(i) The business is a participant in the technology transfer
program conducted by the qualified military base (as defined
in IC 36-7-34-3).
(ii) The business and the qualified military base have a
mutually beneficial relationship evidenced by a
memorandum of understanding between the business and
the qualified military base (as defined in IC 36-7-34-3).
However, this subdivision does not apply to a business that
substantially reduces or ceases its operations at another location
in Indiana in order to relocate its operations in an area described
in this subdivision, unless the department determines that the
business had existing operations in the area described in this
subdivision and that the operations relocated to the area are an
expansion of the business's operations in the area.
SECTION 47. IC 6-2.5-5-5.1, AS AMENDED BY P.L.172-2011,
SECTION 50, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 5.1. (a) As used in this section, "tangible personal
property" includes electrical energy, natural or artificial gas, water,
steam, and steam heat.
(b) Transactions involving tangible personal property are exempt
from the state gross retail tax if the person acquiring the property
acquires it for direct consumption as a material to be consumed in the
direct production of other tangible personal property in the person's
business of manufacturing, processing, refining, repairing, mining,
agriculture, horticulture, floriculture, or arboriculture. This exemption
includes transactions involving acquisitions of tangible personal
property used in commercial printing.
(c) A refund claim based on the exemption provided by this section
for electrical energy, natural or artificial gas, water, steam, and steam
heat may not cover transactions that occur more than eighteen (18)
thirty-six (36) months before the date of the refund claim.
SECTION 48. IC 6-2.5-5-9 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 9. (a) As used in this
section, "returnable containers" means containers customarily returned
by the buyer of the contents for reuse as containers.
(b) Sales of returnable containers are exempt from the state gross
retail tax if the transaction constitutes selling at retail as defined in
IC 6-2.5-4-1 and if the returnable containers contain contents.
(c) Sales of returnable containers are exempt from the state gross
retail tax if the containers are transferred empty for the purpose of
refilling.
(d) Sales of wrapping material and empty containers are exempt
from the state gross retail tax if the person acquiring the material or
containers acquires them for use as nonreturnable packages for:
(1) selling the contents that he the person adds; or
(2) shipping or delivering tangible personal property that:
(A) is owned by another person;
(B) is processed or serviced for the owner; and
(C) will be sold by that owner either in the same form or as
a part of other tangible personal property produced by
that owner in the owner's business of manufacturing,
assembling, constructing, refining, or processing.
SECTION 49. IC 6-2.5-5-30, AS AMENDED BY P.L.42-2011,
SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2012 (RETROACTIVE)]: Sec. 30. (a) Sales of tangible
personal property are exempt from the state gross retail tax if:
(1) the property constitutes, is incorporated into, or is consumed
in the operation of, a device, facility, or structure predominantly
used and acquired for the purpose of complying with any state,
local, or federal environmental quality statutes, regulations, or
standards; and
(2) the person acquiring the property is engaged in the business
of manufacturing, processing, refining, mining, recycling (as
defined in section 45.8 of this chapter), or agriculture.
(b) The portion of the sales price of tangible personal property
which is exempt from state gross retail and use taxes under this section
equals the product of:
(1) the total sales price; multiplied by
(2) one hundred percent (100%).
SECTION 50. IC 6-2.5-5-45.8 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2012 (RETROACTIVE)]: Sec. 45.8. (a)
For purposes of this section, IC 6-2.5-4-5, and section 30 of this
chapter, the following definitions apply:
(1) "Recycling" means the processing of recycling materials
and other tangible personal property into a product for sale
if the product is predominantly composed of recycling
materials. The term does not include the following:
(A) The demolition of improvements to real estate.
(B) The processing of tangible personal property primarily
for disposal in a licensed solid waste disposal facility rather
than for sale.
(C) The collection of recycling materials by licensed motor
vehicles.
(2) "Recycling materials" means tangible personal property,
including metal, paper, glass, plastic, textile, or rubber, that:
(A) is considered "scrap" by industry standards or has no
more than scrap value;
(B) is a byproduct of another person's manufacturing or
production process;
(C) was previously manufactured or incorporated into a
product;
(D) would otherwise reasonably be expected to be destined
for disposal in a licensed solid waste disposal facility; or
(E) has been removed or diverted from the solid waste
stream for sale, use, or reuse as raw materials, regardless
of whether or not the materials require subsequent
processing or separation from each other.
(3) "Processing of recycling materials" means:
(A) the activities involved in collecting or otherwise
receiving recycling materials and other tangible personal
property; and
(B) creating a product for sale by changing the original
form, use, or composition of the property (whether
manually, mechanically, chemically, or otherwise) through
weighing, sorting, grading, separating, shredding,
crushing, compacting, breaking, cutting, baling, shearing,
torching, wire-stripping, or other means.
(b) Transactions involving machinery, tools, and equipment are
exempt from the state gross retail tax if:
(1) the person acquiring that property acquires it for direct
use in the direct processing of recycling materials; and
(2) the person acquiring that property is occupationally
engaged in recycling.
(c) Transactions involving recycling materials and other
tangible personal property to be consumed in the processing of
recycling materials or to become a part of the product produced by
the processing of recycling materials are exempt from the state
gross retail tax if:
(1) the person acquiring that property acquires it for direct
use in the direct processing of recycling materials; and
(2) the person acquiring that property is occupationally
engaged in recycling.
SECTION 51. IC 6-2.5-6-1, AS AMENDED BY P.L.182-2009(ss),
SECTION 180, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2013]: Sec. 1. (a) Except as otherwise
provided in this section, each person liable for collecting the state gross
retail or use tax shall file a return for each calendar month and pay the
state gross retail and use taxes that the person collects during that
month. A person shall file the person's return for a particular month
with the department and make the person's tax payment for that month
to the department not more than thirty (30) days after the end of that
month, if that person's average monthly liability for collections of state
gross retail and use taxes under this section as determined by the
department for the preceding calendar year did not exceed one
thousand dollars ($1,000). If a person's average monthly liability for
collections of state gross retail and use taxes under this section as
determined by the department for the preceding calendar year exceeded
one thousand dollars ($1,000), that person shall file the person's return
for a particular month and make the person's tax payment for that
month to the department not more than twenty (20) days after the end
of that month.
(b) If a person files a combined sales and withholding tax report and
either this section or IC 6-3-4-8.1 requires sales or withholding tax
reports to be filed and remittances to be made within twenty (20) days
after the end of each month, then the person shall file the combined
report and remit the sales and withholding taxes due within twenty (20)
days after the end of each month.
(c) (b) Instead of the twelve (12) monthly reporting periods required
by subsection (a), the department may permit a person to divide a year
into a different number of reporting periods. The return and payment
for each reporting period is due not more than twenty (20) days after
the end of the period.
(d) (c) Instead of the reporting periods required under subsection
(a), the department may permit a retail merchant to report and pay the
merchant's state gross retail and use taxes for a period covering a
calendar year, if the retail merchant's state gross retail and use tax
liability in the previous calendar year does not exceed one thousand
dollars ($1,000). A retail merchant using a reporting period allowed
under this subsection must file the merchant's return and pay the
merchant's tax for a reporting period not later than the last day of the
month immediately following the close of that reporting period.
(e) (d) If a retail merchant reports the merchant's adjusted gross
income tax, or the tax the merchant pays in place of the adjusted gross
income tax, over a fiscal year not corresponding to the calendar year,
the merchant may, without prior departmental approval, report and pay
the merchant's state gross retail and use taxes over the merchant's fiscal
year that corresponds to the calendar year the merchant is permitted to
use under subsection (d). (c). However, the department may, at any
time, require the retail merchant to stop using the fiscal reporting
period.
(f) If a retail merchant files a combined sales and withholding tax
report, the reporting period for the combined report is the shortest
period required under:
(1) this section;
(2) IC 6-3-4-8; or
(3) IC 6-3-4-8.1.
(g) (e) If the department determines that a person's:
(1) estimated monthly gross retail and use tax liability for the
current year; or
(2) average monthly gross retail and use tax liability for the
preceding year;
exceeds five thousand dollars ($5,000), the person shall pay the
monthly gross retail and use taxes due by electronic funds transfer (as
defined in IC 4-8.1-2-7) or by delivering in person or by overnight
courier a payment by cashier's check, certified check, or money order
to the department. The transfer or payment shall be made on or before
the date the tax is due.
(h) (f) A person that registers as a retail merchant after December
31, 2009, shall report and remit state gross retail and use taxes through
the department's online tax filing program. This subsection does not
apply to a retail merchant that was a registered retail merchant before
January 1, 2010, but adds an additional place of business in accordance
with IC 6-2.5-8-1(e) after December 31, 2009.
(i) (g) A person:
(1) who has voluntarily registered as a seller under the
Streamlined Sales and Use Tax Agreement;
(2) who is not a Model 1, Model 2, or Model 3 seller (as defined
in the Streamlined Sales and Use Tax Agreement); and
(3) whose liability for collections of state gross retail and use
taxes under this section for the preceding calendar year as
determined by the department does not exceed one thousand
dollars ($1,000);
is not required to file a monthly gross retail and use tax return.
SECTION 52. IC 6-3-1-3.5, AS AMENDED BY P.L.229-2011,
SECTION 83, AS AMENDED BY P.L.171-2011, SECTION 4, AND
AS AMENDED BY P.L.172-2011, SECTION 53, IS CORRECTED
AND AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1,
2012]: Sec. 3.5. When used in this article, the term "adjusted gross
income" shall mean the following:
(a) In the case of all individuals, "adjusted gross income" (as
defined in Section 62 of the Internal Revenue Code), modified as
follows:
(1) Subtract income that is exempt from taxation under this article
by the Constitution and statutes of the United States.
(2) Add an amount equal to any deduction or deductions allowed
or allowable pursuant to Section 62 of the Internal Revenue Code
for taxes based on or measured by income and levied at the state
level by any state of the United States.
(3) Subtract one thousand dollars ($1,000), or in the case of a
joint return filed by a husband and wife, subtract for each spouse
one thousand dollars ($1,000).
(4) Subtract one thousand dollars ($1,000) for:
(A) each of the exemptions provided by Section 151(c) of the Internal Revenue Code;
(B) each additional amount allowable under Section 63(f) of the Internal Revenue Code; and
(C) the spouse of the taxpayer if a separate return is made by the taxpayer and if the spouse, for the calendar year in which the taxable year of the taxpayer begins, has no gross income and is not the dependent of another taxpayer.
(5) Subtract:
(A)
(B) five hundred dollars ($500) for each additional amount allowable under Section 63(f)(1) of the Internal Revenue Code if the adjusted gross income of the taxpayer, or the taxpayer and the taxpayer's spouse in the case of a joint return, is less than forty thousand dollars ($40,000).
This amount is in addition to the amount subtracted under subdivision (4).
(6) Subtract an amount equal to the lesser of:
(A) that part of the individual's adjusted gross income (as defined in Section 62 of the Internal Revenue Code) for that taxable year that is subject to a tax that is imposed by a political subdivision of another state and that is imposed on or measured by income; or
(B) two thousand dollars ($2,000).
(7) Add an amount equal to the total capital gain portion of a lump sum distribution (as defined in Section 402(e)(4)(D) of the Internal Revenue Code) if the lump sum distribution is received by the individual during the taxable year and if the capital gain portion of the distribution is taxed in the manner provided in Section 402 of the Internal Revenue Code.
(8) Subtract any amounts included in federal adjusted gross income under Section 111 of the Internal Revenue Code as a recovery of items previously deducted as an itemized deduction from adjusted gross income.
(9) Subtract any amounts included in federal adjusted gross income under the Internal Revenue Code which amounts were received by the individual as supplemental railroad retirement annuities under 45 U.S.C. 231 and which are not deductible under subdivision (1).
(A)
(B) the amount of property taxes that are paid during the taxable year in Indiana by the individual on the individual's principal place of residence.
federal adjusted gross income.
(19) (17) Add or subtract the amount necessary to make the
adjusted gross income of any taxpayer that owns property for
which bonus depreciation was allowed in the current taxable year
or in an earlier taxable year equal to the amount of adjusted gross
income that would have been computed had an election not been
made under Section 168(k) of the Internal Revenue Code to apply
bonus depreciation to the property in the year that it was placed
in service.
(20) (18) Add an amount equal to any deduction allowed under
Section 172 of the Internal Revenue Code.
(21) (19) Add or subtract the amount necessary to make the
adjusted gross income of any taxpayer that placed Section 179
property (as defined in Section 179 of the Internal Revenue Code)
in service in the current taxable year or in an earlier taxable year
equal to the amount of adjusted gross income that would have
been computed had an election for federal income tax purposes
not been made for the year in which the property was placed in
service to take deductions under Section 179 of the Internal
Revenue Code in a total amount exceeding twenty-five thousand
dollars ($25,000).
(22) (20) Add an amount equal to the amount that a taxpayer
claimed as a deduction for domestic production activities for the
taxable year under Section 199 of the Internal Revenue Code for
federal income tax purposes.
(23) (21) Subtract an amount equal to the amount of the taxpayer's
qualified military income that was not excluded from the
taxpayer's gross income for federal income tax purposes under
Section 112 of the Internal Revenue Code.
(24) (22) Subtract income that is:
(A) exempt from taxation under IC 6-3-2-21.7; and
(B) included in the individual's federal adjusted gross income
under the Internal Revenue Code.
(25) (23) Subtract any amount of a credit (including an advance
refund of the credit) that is provided to an individual under 26
U.S.C. 6428 (federal Economic Stimulus Act of 2008) and
included in the individual's federal adjusted gross income.
(26) (24) Add any amount of unemployment compensation
excluded from federal gross income, as defined in Section 61 of
the Internal Revenue Code, under Section 85(c) of the Internal
Revenue Code.
(27) (25) Add the amount excluded from gross income under
Section 108(a)(1)(e) of the Internal Revenue Code for the
discharge of debt on a qualified principal residence.
(28) (26) Add an amount equal to any income not included in
gross income as a result of the deferral of income arising from
business indebtedness discharged in connection with the
reacquisition after December 31, 2008, and before January 1,
2011, of an applicable debt instrument, as provided in Section
108(i) of the Internal Revenue Code. Subtract the amount
necessary from the adjusted gross income of any taxpayer that
added an amount to adjusted gross income in a previous year to
offset the amount included in federal gross income as a result of
the deferral of income arising from business indebtedness
discharged in connection with the reacquisition after December
31, 2008, and before January 1, 2011, of an applicable debt
instrument, as provided in Section 108(i) of the Internal Revenue
Code.
(29) (27) Add the amount necessary to make the adjusted gross
income of any taxpayer that placed qualified restaurant property
in service during the taxable year and that was classified as
15-year property under Section 168(e)(3)(E)(v) of the Internal
Revenue Code equal to the amount of adjusted gross income that
would have been computed had the classification not applied to
the property in the year that it was placed in service.
(30) (28) Add the amount necessary to make the adjusted gross
income of any taxpayer that placed qualified retail improvement
property in service during the taxable year and that was classified
as 15-year property under Section 168(e)(3)(E)(ix) of the Internal
Revenue Code equal to the amount of adjusted gross income that
would have been computed had the classification not applied to
the property in the year that it was placed in service.
(31) (29) Add or subtract the amount necessary to make the
adjusted gross income of any taxpayer that claimed the special
allowance for qualified disaster assistance property under Section
168(n) of the Internal Revenue Code equal to the amount of
adjusted gross income that would have been computed had the
special allowance not been claimed for the property.
(31) (30) Add or subtract the amount necessary to make the
adjusted gross income of any taxpayer that made an election
under Section 179C of the Internal Revenue Code to expense
costs for qualified refinery property equal to the amount of
adjusted gross income that would have been computed had an
election for federal income tax purposes not been made for the
year.
(33) (31) Add or subtract the amount necessary to make the
adjusted gross income of any taxpayer that made an election
under Section 181 of the Internal Revenue Code to expense costs
for a qualified film or television production equal to the amount
of adjusted gross income that would have been computed had an
election for federal income tax purposes not been made for the
year.
(34) (32) Add or subtract the amount necessary to make the
adjusted gross income of any taxpayer that treated a loss from the
sale or exchange of preferred stock in:
(A) the Federal National Mortgage Association, established
under the Federal National Mortgage Association Charter Act
(12 U.S.C. 1716 et seq.); or
(B) the Federal Home Loan Mortgage Corporation, established
under the Federal Home Loan Mortgage Corporation Act (12
U.S.C. 1451 et seq.);
as an ordinary loss under Section 301 of the Emergency
Economic Stabilization Act of 2008 in the current taxable year or
in an earlier taxable year equal to the amount of adjusted gross
income that would have been computed had the loss not been
treated as an ordinary loss.
(33) Add the amount excluded from federal gross income under
Section 103 of the Internal Revenue Code for interest received on
an obligation of a state other than Indiana, or a political
subdivision of such a state, that is acquired by the taxpayer after
December 31, 2011.
(35) (34) Add the amount deducted from gross income under
Section 198 of the Internal Revenue Code for the expensing of
environmental remediation costs.
(36) (35) Add the amount excluded from gross income under
Section 408(d)(8) of the Internal Revenue Code for a charitable
distribution from an individual retirement plan.
(37) (36) Add the amount deducted from gross income under
Section 222 of the Internal Revenue Code for qualified tuition
and related expenses.
(38) (37) Add the amount deducted from gross income under
Section 62(2)(D) 62(a)(2)(D) of the Internal Revenue Code for
certain expenses of elementary and secondary school teachers.
(39) (38) Add the amount excluded from gross income under
Section 127 of the Internal Revenue Code as annual employer
provided education expenses.
(40) (39) Add the amount deducted from gross income under
Section 179E of the Internal Revenue Code for any qualified
advanced mine safety equipment property.
(41) (40) Add the monthly amount excluded from gross income
under Section 132(f)(1)(A) and 132(f)(1)(B) of the Internal
Revenue Code that exceeds one hundred dollars ($100) a month
for a qualified transportation fringe.
(42) (41) Add the amount deducted from gross income under
Section 221 of the Internal Revenue Code that exceeds the
amount the taxpayer could deduct under Section 221 of the
Internal Revenue Code before it was amended by the Tax Relief,
Unemployment Insurance Reauthorization, and Job Creation Act
of 2010 (P.L. 111-312).
(43) (42) Add the amount necessary to make the adjusted gross
income of any taxpayer that placed any qualified leasehold
improvement property in service during the taxable year and that
was classified as 15-year property under Section 168(e)(3)(E)(iv)
of the Internal Revenue Code equal to the amount of adjusted
gross income that would have been computed had the
classification not applied to the property in the year that it was
placed into service.
(44) (43) Add the amount necessary to make the adjusted gross
income of any taxpayer that placed a motorsports entertainment
complex in service during the taxable year and that was classified
as 7-year property under Section 168(e)(3)(C)(ii) of the Internal
Revenue Code equal to the amount of adjusted gross income that
would have been computed had the classification not applied to
the property in the year that it was placed into service.
(45) (44) Add the amount deducted under Section 195 of the
Internal Revenue Code for start-up expenditures that exceeds the
amount the taxpayer could deduct under Section 195 of the
Internal Revenue Code before it was amended by the Small
Business Jobs Act of 2010 (P.L. 111-240).
(46) (45) Add the amount necessary to make the adjusted gross
income of any taxpayer for which tax was not imposed on the net
recognized built-in gain of an S corporation under Section
1374(d)(7) of the Internal Revenue Code as amended by the Small
Business Jobs Act of 2010 (P.L. 111-240) equal to the amount of
adjusted gross income that would have been computed before
Section 1374(d)(7) of the Internal Revenue Code as amended by
the Small Business Jobs Act of 2010 (P.L. 111-240).
(35) (46) This subdivision does not apply to payments made for
services provided to a business that was enrolled and
participated in the E-Verify program (as defined in
IC 22-5-1.7-3) during the time the taxpayer conducted business
in Indiana in the taxable year. For a taxable year beginning after
June 30, 2011, add the amount of any trade or business deduction
allowed under the Internal Revenue Code for wages,
reimbursements, or other payments made for services provided
in Indiana by an individual for services as an employee, if the
individual was, during the period of service, prohibited from
being hired as an employee under 8 U.S.C. 1324a.
(b) In the case of corporations, the same as "taxable income" (as
defined in Section 63 of the Internal Revenue Code) adjusted as
follows:
(1) Subtract income that is exempt from taxation under this article
by the Constitution and statutes of the United States.
(2) Add an amount equal to any deduction or deductions allowed
or allowable pursuant to Section 170 of the Internal Revenue
Code.
(3) Add an amount equal to any deduction or deductions allowed
or allowable pursuant to Section 63 of the Internal Revenue Code
for taxes based on or measured by income and levied at the state
level by any state of the United States.
(4) Subtract an amount equal to the amount included in the
corporation's taxable income under Section 78 of the Internal
Revenue Code.
(5) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that owns property for which bonus
depreciation was allowed in the current taxable year or in an
earlier taxable year equal to the amount of adjusted gross income
that would have been computed had an election not been made
under Section 168(k) of the Internal Revenue Code to apply bonus
depreciation to the property in the year that it was placed in
service.
(6) Add an amount equal to any deduction allowed under Section
172 of the Internal Revenue Code.
(7) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that placed Section 179 property (as
defined in Section 179 of the Internal Revenue Code) in service
in the current taxable year or in an earlier taxable year equal to
the amount of adjusted gross income that would have been
computed had an election for federal income tax purposes not
been made for the year in which the property was placed in
service to take deductions under Section 179 of the Internal
Revenue Code in a total amount exceeding twenty-five thousand
dollars ($25,000).
(8) Add an amount equal to the amount that a taxpayer claimed as
a deduction for domestic production activities for the taxable year
under Section 199 of the Internal Revenue Code for federal
income tax purposes.
(9) Add to the extent required by IC 6-3-2-20 the amount of
intangible expenses (as defined in IC 6-3-2-20) and any directly
related intangible interest expenses (as defined in IC 6-3-2-20) for
the taxable year that reduced the corporation's taxable income (as
defined in Section 63 of the Internal Revenue Code) for federal
income tax purposes.
(10) Add an amount equal to any deduction for dividends paid (as
defined in Section 561 of the Internal Revenue Code) to
shareholders of a captive real estate investment trust (as defined
in section 34.5 of this chapter).
(11) Subtract income that is:
(A) exempt from taxation under IC 6-3-2-21.7; and
(B) included in the corporation's taxable income under the
Internal Revenue Code.
(12) Add an amount equal to any income not included in gross
income as a result of the deferral of income arising from business
indebtedness discharged in connection with the reacquisition after
December 31, 2008, and before January 1, 2011, of an applicable
debt instrument, as provided in Section 108(i) of the Internal
Revenue Code. Subtract from the adjusted gross income of any
taxpayer that added an amount to adjusted gross income in a
previous year the amount necessary to offset the amount included
in federal gross income as a result of the deferral of income
arising from business indebtedness discharged in connection with
the reacquisition after December 31, 2008, and before January 1,
2011, of an applicable debt instrument, as provided in Section
108(i) of the Internal Revenue Code.
(13) Add the amount necessary to make the adjusted gross income
of any taxpayer that placed qualified restaurant property in service
during the taxable year and that was classified as 15-year property
under Section 168(e)(3)(E)(v) of the Internal Revenue Code equal
to the amount of adjusted gross income that would have been
computed had the classification not applied to the property in the
year that it was placed in service.
(14) Add the amount necessary to make the adjusted gross income
of any taxpayer that placed qualified retail improvement property
in service during the taxable year and that was classified as
15-year property under Section 168(e)(3)(E)(ix) of the Internal
Revenue Code equal to the amount of adjusted gross income that
would have been computed had the classification not applied to
the property in the year that it was placed in service.
(15) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that claimed the special allowance
for qualified disaster assistance property under Section 168(n) of
the Internal Revenue Code equal to the amount of adjusted gross
income that would have been computed had the special allowance
not been claimed for the property.
(16) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that made an election under Section
179C of the Internal Revenue Code to expense costs for qualified
refinery property equal to the amount of adjusted gross income
that would have been computed had an election for federal
income tax purposes not been made for the year.
(17) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that made an election under Section
181 of the Internal Revenue Code to expense costs for a qualified
film or television production equal to the amount of adjusted
gross income that would have been computed had an election for
federal income tax purposes not been made for the year.
(18) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that treated a loss from the sale or
exchange of preferred stock in:
(A) the Federal National Mortgage Association, established
under the Federal National Mortgage Association Charter Act
(12 U.S.C. 1716 et seq.); or
(B) the Federal Home Loan Mortgage Corporation, established
under the Federal Home Loan Mortgage Corporation Act (12
U.S.C. 1451 et seq.);
as an ordinary loss under Section 301 of the Emergency
Economic Stabilization Act of 2008 in the current taxable year or
in an earlier taxable year equal to the amount of adjusted gross
income that would have been computed had the loss not been
treated as an ordinary loss.
(19) Add the amount deducted from gross income under Section
198 of the Internal Revenue Code for the expensing of
environmental remediation costs.
(20) Add the amount deducted from gross income under Section
179E of the Internal Revenue Code for any qualified advanced
mine safety equipment property.
(21) Add the amount necessary to make the adjusted gross income
of any taxpayer that placed any qualified leasehold improvement
property in service during the taxable year and that was
classified as 15-year property under Section 168(e)(3)(E)(iv) of
the Internal Revenue Code equal to the amount of adjusted gross
income that would have been computed had the classification not
applied to the property in the year that it was placed into service.
(22) Add the amount necessary to make the adjusted gross income
of any taxpayer that placed a motorsports entertainment complex
in service during the taxable year and that was classified as
7-year property under Section 168(e)(3)(C)(ii) of the Internal
Revenue Code equal to the amount of adjusted gross income that
would have been computed had the classification not applied to
the property in the year that it was placed into service.
(23) Add the amount deducted under Section 195 of the Internal
Revenue Code for start-up expenditures that exceeds the amount
the taxpayer could deduct under Section 195 of the Internal
Revenue Code before it was amended by the Small Business Jobs
Act of 2010 (P.L. 111-240).
(19) (24) This subdivision does not apply to payments made for
services provided to a business that was enrolled and
participated in the E-Verify program (as defined in
IC 22-5-1.7-3) during the time the taxpayer conducted business
in Indiana in the taxable year. For a taxable year beginning after
June 30, 2011, add the amount of any trade or business deduction
allowed under the Internal Revenue Code for wages,
reimbursements, or other payments made for services provided
in Indiana by an individual for services as an employee, if the
individual was, during the period of service, prohibited from
being hired as an employee under 8 U.S.C. 1324a.
(24) (25) Add the amount excluded from federal gross income
under Section 103 of the Internal Revenue Code for interest
received on an obligation of a state other than Indiana, or a
political subdivision of such a state, that is acquired by the
taxpayer after December 31, 2011.
(c) In the case of life insurance companies (as defined in Section
816(a) of the Internal Revenue Code) that are organized under Indiana
law, the same as "life insurance company taxable income" (as defined
in Section 801 of the Internal Revenue Code), adjusted as follows:
(1) Subtract income that is exempt from taxation under this article
by the Constitution and statutes of the United States.
(2) Add an amount equal to any deduction allowed or allowable
under Section 170 of the Internal Revenue Code.
(3) Add an amount equal to a deduction allowed or allowable
under Section 805 or Section 831(c) of the Internal Revenue Code
for taxes based on or measured by income and levied at the state
level by any state.
(4) Subtract an amount equal to the amount included in the
company's taxable income under Section 78 of the Internal
Revenue Code.
(5) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that owns property for which bonus
depreciation was allowed in the current taxable year or in an
earlier taxable year equal to the amount of adjusted gross income
that would have been computed had an election not been made
under Section 168(k) of the Internal Revenue Code to apply bonus
depreciation to the property in the year that it was placed in
service.
(6) Add an amount equal to any deduction allowed under Section
172 or Section 810 of the Internal Revenue Code.
(7) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that placed Section 179 property (as
defined in Section 179 of the Internal Revenue Code) in service
in the current taxable year or in an earlier taxable year equal to
the amount of adjusted gross income that would have been
computed had an election for federal income tax purposes not
been made for the year in which the property was placed in
service to take deductions under Section 179 of the Internal
Revenue Code in a total amount exceeding twenty-five thousand
dollars ($25,000).
(8) Add an amount equal to the amount that a taxpayer claimed as
a deduction for domestic production activities for the taxable year
under Section 199 of the Internal Revenue Code for federal
income tax purposes.
(9) Subtract income that is:
(A) exempt from taxation under IC 6-3-2-21.7; and
(B) included in the insurance company's taxable income under
the Internal Revenue Code.
(10) Add an amount equal to any income not included in gross
income as a result of the deferral of income arising from business
indebtedness discharged in connection with the reacquisition after
December 31, 2008, and before January 1, 2011, of an applicable
debt instrument, as provided in Section 108(i) of the Internal
Revenue Code. Subtract from the adjusted gross income of any
taxpayer that added an amount to adjusted gross income in a
previous year the amount necessary to offset the amount included
in federal gross income as a result of the deferral of income
arising from business indebtedness discharged in connection with
the reacquisition after December 31, 2008, and before January 1,
2011, of an applicable debt instrument, as provided in Section
108(i) of the Internal Revenue Code.
(11) Add the amount necessary to make the adjusted gross income
of any taxpayer that placed qualified restaurant property in service
during the taxable year and that was classified as 15-year property
under Section 168(e)(3)(E)(v) of the Internal Revenue Code equal
to the amount of adjusted gross income that would have been
computed had the classification not applied to the property in the
year that it was placed in service.
(12) Add the amount necessary to make the adjusted gross income
of any taxpayer that placed qualified retail improvement property
in service during the taxable year and that was classified as
15-year property under Section 168(e)(3)(E)(ix) of the Internal
Revenue Code equal to the amount of adjusted gross income that
would have been computed had the classification not applied to
the property in the year that it was placed in service.
(13) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that claimed the special allowance
for qualified disaster assistance property under Section 168(n) of
the Internal Revenue Code equal to the amount of adjusted gross
income that would have been computed had the special allowance
not been claimed for the property.
(14) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that made an election under Section
179C of the Internal Revenue Code to expense costs for qualified
refinery property equal to the amount of adjusted gross income
that would have been computed had an election for federal
income tax purposes not been made for the year.
(15) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that made an election under Section
181 of the Internal Revenue Code to expense costs for a qualified
film or television production equal to the amount of adjusted
gross income that would have been computed had an election for
federal income tax purposes not been made for the year.
(16) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that treated a loss from the sale or
exchange of preferred stock in:
(A) the Federal National Mortgage Association, established
under the Federal National Mortgage Association Charter Act
(12 U.S.C. 1716 et seq.); or
(B) the Federal Home Loan Mortgage Corporation, established
under the Federal Home Loan Mortgage Corporation Act (12
U.S.C. 1451 et seq.);
as an ordinary loss under Section 301 of the Emergency
Economic Stabilization Act of 2008 in the current taxable year or
in an earlier taxable year equal to the amount of adjusted gross
income that would have been computed had the loss not been
treated as an ordinary loss.
(17) Add an amount equal to any exempt insurance income under
Section 953(e) of the Internal Revenue Code that is active
financing income under Subpart F of Subtitle A, Chapter 1,
Subchapter N of the Internal Revenue Code.
(18) Add the amount necessary to make the adjusted gross income
of any taxpayer that placed any qualified leasehold improvement
property in service during the taxable year and that was
classified as 15-year property under Section 168(e)(3)(E)(iv) of
the Internal Revenue Code equal to the amount of adjusted gross
income that would have been computed had the classification not
applied to the property in the year that it was placed into service.
(19) Add the amount necessary to make the adjusted gross income
of any taxpayer that placed a motorsports entertainment complex
in service during the taxable year and that was classified as
7-year property under Section 168(e)(3)(C)(ii) of the Internal
Revenue Code equal to the amount of adjusted gross income that
would have been computed had the classification not applied to
the property in the year that it was placed into service.
(20) Add the amount deducted under Section 195 of the Internal
Revenue Code for start-up expenditures that exceeds the amount
the taxpayer could deduct under Section 195 of the Internal
Revenue Code before it was amended by the Small Business Jobs
Act of 2010 (P.L. 111-240).
(21) Add the amount deducted from gross income under Section
198 of the Internal Revenue Code for the expensing of
environmental remediation costs.
(22) Add the amount deducted from gross income under Section
179E of the Internal Revenue Code for any qualified advanced
mine safety equipment property.
(d) In the case of insurance companies subject to tax under Section 831 of the Internal Revenue Code and organized under Indiana law, the same as "taxable income" (as defined in Section 832 of the Internal Revenue Code), adjusted as follows:
(1) Subtract income that is exempt from taxation under this article by the Constitution and statutes of the United States.
(2) Add an amount equal to any deduction allowed or allowable under Section 170 of the Internal Revenue Code.
(3) Add an amount equal to a deduction allowed or allowable under Section 805 or Section 831(c) of the Internal Revenue Code for taxes based on or measured by income and levied at the state level by any state.
(4) Subtract an amount equal to the amount included in the company's taxable income under Section 78 of the Internal Revenue Code.
(5) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer that owns property for which bonus depreciation was allowed in the current taxable year or in an earlier taxable year equal to the amount of adjusted gross income that would have been computed had an election not been made under Section 168(k) of the Internal Revenue Code to apply bonus depreciation to the property in the year that it was placed in service.
(6) Add an amount equal to any deduction allowed under Section 172 of the Internal Revenue Code.
(7) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that placed Section 179 property (as
defined in Section 179 of the Internal Revenue Code) in service
in the current taxable year or in an earlier taxable year equal to
the amount of adjusted gross income that would have been
computed had an election for federal income tax purposes not
been made for the year in which the property was placed in
service to take deductions under Section 179 of the Internal
Revenue Code in a total amount exceeding twenty-five thousand
dollars ($25,000).
(8) Add an amount equal to the amount that a taxpayer claimed as
a deduction for domestic production activities for the taxable year
under Section 199 of the Internal Revenue Code for federal
income tax purposes.
(9) Subtract income that is:
(A) exempt from taxation under IC 6-3-2-21.7; and
(B) included in the insurance company's taxable income under
the Internal Revenue Code.
(10) Add an amount equal to any income not included in gross
income as a result of the deferral of income arising from business
indebtedness discharged in connection with the reacquisition after
December 31, 2008, and before January 1, 2011, of an applicable
debt instrument, as provided in Section 108(i) of the Internal
Revenue Code. Subtract from the adjusted gross income of any
taxpayer that added an amount to adjusted gross income in a
previous year the amount necessary to offset the amount included
in federal gross income as a result of the deferral of income
arising from business indebtedness discharged in connection with
the reacquisition after December 31, 2008, and before January 1,
2011, of an applicable debt instrument, as provided in Section
108(i) of the Internal Revenue Code.
(11) Add the amount necessary to make the adjusted gross income
of any taxpayer that placed qualified restaurant property in service
during the taxable year and that was classified as 15-year property
under Section 168(e)(3)(E)(v) of the Internal Revenue Code equal
to the amount of adjusted gross income that would have been
computed had the classification not applied to the property in the
year that it was placed in service.
(12) Add the amount necessary to make the adjusted gross income
of any taxpayer that placed qualified retail improvement property
in service during the taxable year and that was classified as
15-year property under Section 168(e)(3)(E)(ix) of the Internal
Revenue Code equal to the amount of adjusted gross income that
would have been computed had the classification not applied to
the property in the year that it was placed in service.
(13) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that claimed the special allowance
for qualified disaster assistance property under Section 168(n) of
the Internal Revenue Code equal to the amount of adjusted gross
income that would have been computed had the special allowance
not been claimed for the property.
(14) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that made an election under Section
179C of the Internal Revenue Code to expense costs for qualified
refinery property equal to the amount of adjusted gross income
that would have been computed had an election for federal
income tax purposes not been made for the year.
(15) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that made an election under Section
181 of the Internal Revenue Code to expense costs for a qualified
film or television production equal to the amount of adjusted
gross income that would have been computed had an election for
federal income tax purposes not been made for the year.
(16) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that treated a loss from the sale or
exchange of preferred stock in:
(A) the Federal National Mortgage Association, established
under the Federal National Mortgage Association Charter Act
(12 U.S.C. 1716 et seq.); or
(B) the Federal Home Loan Mortgage Corporation, established
under the Federal Home Loan Mortgage Corporation Act (12
U.S.C. 1451 et seq.);
as an ordinary loss under Section 301 of the Emergency
Economic Stabilization Act of 2008 in the current taxable year or
in an earlier taxable year equal to the amount of adjusted gross
income that would have been computed had the loss not been
treated as an ordinary loss.
(17) Add an amount equal to any exempt insurance income under
Section 953(e) of the Internal Revenue Code that is active
financing income under Subpart F of Subtitle A, Chapter 1,
Subchapter N of the Internal Revenue Code.
(18) Add the amount necessary to make the adjusted gross income
of any taxpayer that placed any qualified leasehold improvement
property in service during the taxable year and that was
classified as 15-year property under Section 168(e)(3)(E)(iv) of
the Internal Revenue Code equal to the amount of adjusted gross
income that would have been computed had the classification not
applied to the property in the year that it was placed into service.
(19) Add the amount necessary to make the adjusted gross income
of any taxpayer that placed a motorsports entertainment complex
in service during the taxable year and that was classified as
7-year property under Section 168(e)(3)(C)(ii) of the Internal
Revenue Code equal to the amount of adjusted gross income that
would have been computed had the classification not applied to
the property in the year that it was placed into service.
(20) Add the amount deducted under Section 195 of the Internal
Revenue Code for start-up expenditures that exceeds the amount
the taxpayer could deduct under Section 195 of the Internal
Revenue Code before it was amended by the Small Business Jobs
Act of 2010 (P.L. 111-240).
(21) Add the amount deducted from gross income under Section
198 of the Internal Revenue Code for the expensing of
environmental remediation costs.
(22) Add the amount deducted from gross income under Section
179E of the Internal Revenue Code for any qualified advanced
mine safety equipment property.
(18) (23) This subdivision does not apply to payments made for
services provided to a business that was enrolled and
participated in the E-Verify program (as defined in
IC 22-5-1.7-3) during the time the taxpayer conducted business
in Indiana in the taxable year. For a taxable year beginning after
June 30, 2011, add the amount of any trade or business deduction
allowed under the Internal Revenue Code for wages,
reimbursements, or other payments made for services provided
in Indiana by an individual for services as an employee, if the
individual was, during the period of service, prohibited from
being hired as an employee under 8 U.S.C. 1324a.
(23) (24) Add the amount excluded from federal gross income
under Section 103 of the Internal Revenue Code for interest
received on an obligation of a state other than Indiana, or a
political subdivision of such a state, that is acquired by the
taxpayer after December 31, 2011.
(e) In the case of trusts and estates, "taxable income" (as defined for
trusts and estates in Section 641(b) of the Internal Revenue Code)
adjusted as follows:
(1) Subtract income that is exempt from taxation under this article
by the Constitution and statutes of the United States.
(2) Subtract an amount equal to the amount of a September 11 terrorist attack settlement payment included in the federal adjusted gross income of the estate of a victim of the September 11 terrorist attack or a trust to the extent the trust benefits a victim of the September 11 terrorist attack.
(3) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer that owns property for which bonus depreciation was allowed in the current taxable year or in an earlier taxable year equal to the amount of adjusted gross income that would have been computed had an election not been made under Section 168(k) of the Internal Revenue Code to apply bonus depreciation to the property in the year that it was placed in service.
(4) Add an amount equal to any deduction allowed under Section 172 of the Internal Revenue Code.
(5) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer that placed Section 179 property (as defined in Section 179 of the Internal Revenue Code) in service in the current taxable year or in an earlier taxable year equal to the amount of adjusted gross income that would have been computed had an election for federal income tax purposes not been made for the year in which the property was placed in service to take deductions under Section 179 of the Internal Revenue Code in a total amount exceeding twenty-five thousand dollars ($25,000).
(6) Add an amount equal to the amount that a taxpayer claimed as a deduction for domestic production activities for the taxable year under Section 199 of the Internal Revenue Code for federal income tax purposes.
(7) Subtract income that is:
(A) exempt from taxation under IC 6-3-2-21.7; and
(B) included in the taxpayer's taxable income under the Internal Revenue Code.
(8) Add an amount equal to any income not included in gross income as a result of the deferral of income arising from business indebtedness discharged in connection with the reacquisition after December 31, 2008, and before January 1, 2011, of an applicable debt instrument, as provided in Section 108(i) of the Internal Revenue Code. Subtract from the adjusted gross income of any taxpayer that added an amount to adjusted gross income in a previous year the amount necessary to offset the amount included in federal gross income as a result of the deferral of income
arising from business indebtedness discharged in connection with
the reacquisition after December 31, 2008, and before January 1,
2011, of an applicable debt instrument, as provided in Section
108(i) of the Internal Revenue Code.
(9) Add the amount necessary to make the adjusted gross income
of any taxpayer that placed qualified restaurant property in service
during the taxable year and that was classified as 15-year property
under Section 168(e)(3)(E)(v) of the Internal Revenue Code equal
to the amount of adjusted gross income that would have been
computed had the classification not applied to the property in the
year that it was placed in service.
(10) Add the amount necessary to make the adjusted gross income
of any taxpayer that placed qualified retail improvement property
in service during the taxable year and that was classified as
15-year property under Section 168(e)(3)(E)(ix) of the Internal
Revenue Code equal to the amount of adjusted gross income that
would have been computed had the classification not applied to
the property in the year that it was placed in service.
(11) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that claimed the special allowance
for qualified disaster assistance property under Section 168(n) of
the Internal Revenue Code equal to the amount of adjusted gross
income that would have been computed had the special allowance
not been claimed for the property.
(12) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that made an election under Section
179C of the Internal Revenue Code to expense costs for qualified
refinery property equal to the amount of adjusted gross income
that would have been computed had an election for federal
income tax purposes not been made for the year.
(13) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that made an election under Section
181 of the Internal Revenue Code to expense costs for a qualified
film or television production equal to the amount of adjusted
gross income that would have been computed had an election for
federal income tax purposes not been made for the year.
(14) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that treated a loss from the sale or
exchange of preferred stock in:
(A) the Federal National Mortgage Association, established
under the Federal National Mortgage Association Charter Act
(12 U.S.C. 1716 et seq.); or
(B) the Federal Home Loan Mortgage Corporation, established under the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1451 et seq.);
as an ordinary loss under Section 301 of the Emergency Economic Stabilization Act of 2008 in the current taxable year or in an earlier taxable year equal to the amount of adjusted gross income that would have been computed had the loss not been treated as an ordinary loss.
(15) Add the amount excluded from gross income under Section 108(a)(1)(e) of the Internal Revenue Code for the discharge of debt on a qualified principal residence.
(16) Add the amount necessary to make the adjusted gross income of any taxpayer that placed any qualified leasehold improvement property in service during the taxable year and that was classified as 15-year property under Section 168(e)(3)(E)(iv) of the Internal Revenue Code equal to the amount of adjusted gross income that would have been computed had the classification not applied to the property in the year that it was placed into service.
(17) Add the amount necessary to make the adjusted gross income of any taxpayer that placed a motorsports entertainment complex in service during the taxable year and that was classified as 7-year property under Section 168(e)(3)(C)(ii) of the Internal Revenue Code equal to the amount of adjusted gross income that would have been computed had the classification not applied to the property in the year that it was placed into service.
(18) Add the amount deducted under Section 195 of the Internal Revenue Code for start-up expenditures that exceeds the amount the taxpayer could deduct under Section 195 of the Internal Revenue Code before it was amended by the Small Business Jobs Act of 2010 (P.L. 111-240).
(19) Add the amount deducted from gross income under Section 198 of the Internal Revenue Code for the expensing of environmental remediation costs.
(20) Add the amount deducted from gross income under Section 179E of the Internal Revenue Code for any qualified advanced mine safety equipment property.
(21) Add the amount necessary to make the adjusted gross income of any taxpayer for which tax was not imposed on the net recognized built-in gain of an S corporation under Section 1374(d)(7) of the Internal Revenue Code as amended by the Small Business Jobs Act of 2010 (P.L. 111-240) equal to the amount of adjusted gross income that would have been computed before
Section 1374(d)(7) of the Internal Revenue Code as amended by
the Small Business Jobs Act of 2010 (P.L. 111-240).
(16) (22) This subdivision does not apply to payments made for
services provided to a business that was enrolled and
participated in the E-Verify program (as defined in
IC 22-5-1.7-3) during the time the taxpayer conducted business
in Indiana in the taxable year. For a taxable year beginning after
June 30, 2011, add the amount of any trade or business deduction
allowed under the Internal Revenue Code for wages,
reimbursements, or other payments made for services provided
in Indiana by an individual for services as an employee, if the
individual was, during the period of service, prohibited from
being hired as an employee under 8 U.S.C. 1324a.
(22) (23) Add the amount excluded from federal gross income
under Section 103 of the Internal Revenue Code for interest
received on an obligation of a state other than Indiana, or a
political subdivision of such a state, that is acquired by the
taxpayer after December 31, 2011.
(f) This subsection applies only to the extent that an individual paid
property taxes in 2004 that were imposed for the March 1, 2002,
assessment date or the January 15, 2003, assessment date. The
maximum amount of the deduction under subsection (a)(17) is equal to
the amount determined under STEP FIVE of the following formula:
STEP ONE: Determine the amount of property taxes that the
taxpayer paid after December 31, 2003, in the taxable year for
property taxes imposed for the March 1, 2002, assessment date
and the January 15, 2003, assessment date.
STEP TWO: Determine the amount of property taxes that the
taxpayer paid in the taxable year for the March 1, 2003,
assessment date and the January 15, 2004, assessment date.
STEP THREE: Determine the result of the STEP ONE amount
divided by the STEP TWO amount.
STEP FOUR: Multiply the STEP THREE amount by two thousand
five hundred dollars ($2,500).
STEP FIVE: Determine the sum of the STEP FOUR amount and
two thousand five hundred dollars ($2,500).
SECTION 53. IC 6-3-1-11, AS AMENDED BY P.L.229-2011,
SECTION 84, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 11. (a) Except as provided in subsection (d), the
term "Internal Revenue Code" means the Internal Revenue Code of
1986 of the United States as amended and in effect on January 1, 2011.
(b) Whenever the Internal Revenue Code is mentioned in this
article, the particular provisions that are referred to, together with all
the other provisions of the Internal Revenue Code in effect on January
1, 2011, that pertain to the provisions specifically mentioned, shall be
regarded as incorporated in this article by reference and have the same
force and effect as though fully set forth in this article. To the extent
the provisions apply to this article, regulations adopted under Section
7805(a) of the Internal Revenue Code and in effect on January 1, 2011,
shall be regarded as rules adopted by the department under this article,
unless the department adopts specific rules that supersede the
regulation.
(c) An amendment to the Internal Revenue Code made by an act
passed by Congress before January 1, 2011, that is effective for any
taxable year that began before January 1, 2011, and that affects:
(1) individual adjusted gross income (as defined in Section 62 of
the Internal Revenue Code);
(2) corporate taxable income (as defined in Section 63 of the
Internal Revenue Code);
(3) trust and estate taxable income (as defined in Section 641(b)
of the Internal Revenue Code);
(4) life insurance company taxable income (as defined in Section
801(b) of the Internal Revenue Code);
(5) mutual insurance company taxable income (as defined in
Section 821(b) of the Internal Revenue Code); or
(6) taxable income (as defined in Section 832 of the Internal
Revenue Code);
is also effective for that same taxable year for purposes of determining
adjusted gross income under section 3.5 of this chapter.
(d) The following provisions of the Internal Revenue Code that were
amended by the Tax Relief Act, Unemployment Insurance
Reauthorization, and Job Creation Act of 2010 (P.L. 111-312) are
treated as though they were not amended by the Tax Relief Act,
Unemployment Insurance Reauthorization, and Job Creation Act of
2010 (P.L. 111-312):
(1) Section 1367(a)(2) of the Internal Revenue Code pertaining to
an adjustment of basis of the stock of shareholders.
(2) Section 871(k)(1)(c) 871(k)(1)(C) and 871(k)(2)(C) of the
Internal Revenue Code pertaining the treatment of certain
dividends of regulated investment companies.
(3) Section 897(h)(4)(A)(ii) of the Internal Revenue Code
pertaining to regulated investment companies qualified entity
treatment.
(4) Section 512(b)(13)(E)(iv) of the Internal Revenue Code
pertaining to the modification of tax treatment of certain
payments to controlling exempt organizations.
(5) Section 613A(c)(6)(H)(ii) of the Internal Revenue Code
pertaining to the limitations on percentage depletion in the case
of oil and gas wells.
(6) Section 451(i)(3) of the Internal Revenue Code pertaining to
special rule for sales or dispositions to implement Federal Energy
Regulatory Commission or state electric restructuring policy for
qualified electric utilities.
(7) Section 954(c)(6) of the Internal Revenue Code pertaining to
the look-through treatment of payments between related
controlled foreign corporation under foreign personal holding
company rules.
The department shall develop forms and adopt any necessary rules
under IC 4-22-2 to implement this subsection.
SECTION 54. IC 6-3-4-1 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2013]: Sec. 1. Returns with respect to
taxes imposed by this act shall be made by the following:
(1) Every resident individual having for the taxable year gross
income in an amount greater than the modifications provided
under IC 6-3-1-3.5(a)(3) and IC 6-3-1-3.5(a)(4).
(2) Every nonresident individual having for the taxable year any
gross income from sources within the state of Indiana, except for
a team member (as defined in IC 6-3-2-2.7) who is covered by a
composite return filed under IC 6-3-2-2.7.
(3) Every corporation having for the taxable year any gross
income from sources within the state of Indiana.
(4) For taxable years beginning after December 31, 2012,
every resident estate having for the taxable year any gross income
from sources within the state of Indiana exceeding the amount
provided in Section 6012(a)(3) of the Internal Revenue Code.
(5) For taxable years beginning after December 31, 2012,
every resident trust having for the taxable year any gross income
from sources within the state of Indiana exceeding the amount
provided in Section 6012(a)(4) of the Internal Revenue Code.
(6) For taxable years beginning after December 31, 2012,
every nonresident estate having for the taxable year any gross
income from sources within the state of Indiana exceeding the
amount provided in Section 6012(a)(3) of the Internal
Revenue Code.
(7) For taxable years beginning after December 31, 2012,
every nonresident trust having for the taxable year any gross
income from sources within the state of Indiana exceeding the
amount provided in Section 6012(a)(4) of the Internal
Revenue Code.
SECTION 55. IC 6-3-4-8, AS AMENDED BY P.L.172-2011,
SECTION 60, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2013]: Sec. 8. (a) Except as provided in subsection (d),
every employer making payments of wages subject to tax under this
article, regardless of the place where such payment is made, who is
required under the provisions of the Internal Revenue Code to
withhold, collect, and pay over income tax on wages paid by such
employer to such employee, shall, at the time of payment of such
wages, deduct and retain therefrom the amount prescribed in
withholding instructions issued by the department. The department
shall base its withholding instructions on the adjusted gross income tax
rate for persons, on the total rates of any income taxes that the taxpayer
is subject to under IC 6-3.5, and on the total amount of exclusions the
taxpayer is entitled to under IC 6-3-1-3.5(a)(3) and IC 6-3-1-3.5(a)(4).
However, the withholding instructions on the adjusted gross income of
a nonresident alien (as defined in Section 7701 of the Internal Revenue
Code) are to be based on applying not more than one (1) withholding
exclusion, regardless of the total number of exclusions that
IC 6-3-1-3.5(a)(3) and IC 6-3-1-3.5(a)(4) permit the taxpayer to apply
on the taxpayer's final return for the taxable year. Such employer
making payments of any wages:
(1) shall be liable to the state of Indiana for the payment of the tax
required to be deducted and withheld under this section and shall
not be liable to any individual for the amount deducted from the
individual's wages and paid over in compliance or intended
compliance with this section; and
(2) shall make return of and payment to the department monthly
of the amount of tax which under this article and IC 6-3.5 the
employer is required to withhold.
(b) An employer shall pay taxes withheld under subsection (a)
during a particular month to the department no later than thirty (30)
days after the end of that month. However, in place of monthly
reporting periods, the department may permit an employer to report and
pay the tax for
(1) a calendar year reporting period, if the average monthly
amount of all tax required to be withheld by the employer in the
previous calendar year does not exceed ten dollars ($10);
(2) a six (6) month reporting period, if the average monthly
amount of all tax required to be withheld by the employer in the
previous calendar year does not exceed twenty-five dollars ($25);
or
(3) a three (3) month reporting period, if the average monthly
amount of all tax required to be withheld by the employer in the
previous calendar year does not exceed seventy-five dollars ($75).
one thousand dollars ($1,000).
An employer using a reporting period (other than a monthly reporting
period) must file the employer's return and pay the tax for a reporting
period no later than the last day of the month immediately following
the close of the reporting period. If an employer files a combined sales
and withholding tax report, the reporting period for the combined
report is the shortest period required under this section, section 8.1 of
this chapter, or IC 6-2.5-6-1.
(c) For purposes of determining whether an employee is subject to
taxation under IC 6-3.5, an employer is entitled to rely on the statement
of an employee as to the employee's county of residence as represented
by the statement of address in forms claiming exemptions for purposes
of withholding, regardless of when the employee supplied the forms.
Every employee shall notify the employee's employer within five (5)
days after any change in the employee's county of residence.
(d) A county that makes payments of wages subject to tax under this
article:
(1) to a precinct election officer (as defined in IC 3-5-2-40.1); and
(2) for the performance of the duties of the precinct election
officer imposed by IC 3 that are performed on election day;
is not required, at the time of payment of the wages, to deduct and
retain from the wages the amount prescribed in withholding
instructions issued by the department.
(e) Every employer shall, at the time of each payment made by the
employer to the department, deliver to the department a return upon the
form prescribed by the department showing:
(1) the total amount of wages paid to the employer's employees;
(2) the amount deducted therefrom in accordance with the
provisions of the Internal Revenue Code;
(3) the amount of adjusted gross income tax deducted therefrom
in accordance with the provisions of this section;
(4) the amount of income tax, if any, imposed under IC 6-3.5 and
deducted therefrom in accordance with this section; and
(5) any other information the department may require.
Every employer making a declaration of withholding as provided in this
section shall furnish the employer's employees annually, but not later
than thirty (30) days after the end of the calendar year, a record of the
total amount of adjusted gross income tax and the amount of each
income tax, if any, imposed under IC 6-3.5, withheld from the
employees, on the forms prescribed by the department.
(f) All money deducted and withheld by an employer shall
immediately upon such deduction be the money of the state, and every
employer who deducts and retains any amount of money under the
provisions of this article shall hold the same in trust for the state of
Indiana and for payment thereof to the department in the manner and
at the times provided in this article. Any employer may be required to
post a surety bond in the sum the department determines to be
appropriate to protect the state with respect to money withheld pursuant
to this section.
(g) The provisions of IC 6-8.1 relating to additions to tax in case of
delinquency and penalties shall apply to employers subject to the
provisions of this section, and for these purposes any amount deducted
or required to be deducted and remitted to the department under this
section shall be considered to be the tax of the employer, and with
respect to such amount the employer shall be considered the taxpayer.
In the case of a corporate or partnership employer, every officer,
employee, or member of such employer, who, as such officer,
employee, or member is under a duty to deduct and remit such taxes
shall be personally liable for such taxes, penalties, and interest.
(h) Amounts deducted from wages of an employee during any
calendar year in accordance with the provisions of this section shall be
considered to be in part payment of the tax imposed on such employee
for the employee's taxable year which begins in such calendar year, and
a return made by the employer under subsection (b) shall be accepted
by the department as evidence in favor of the employee of the amount
so deducted from the employee's wages. Where the total amount so
deducted exceeds the amount of tax on the employee as computed
under this article and IC 6-3.5, the department shall, after examining
the return or returns filed by the employee in accordance with this
article and IC 6-3.5, refund the amount of the excess deduction.
However, under rules promulgated by the department, the excess or any
part thereof may be applied to any taxes or other claim due from the
taxpayer to the state of Indiana or any subdivision thereof. No refund
shall be made to an employee who fails to file the employee's return or
returns as required under this article and IC 6-3.5 within two (2) years
from the due date of the return or returns. In the event that the excess
tax deducted is less than one dollar ($1), no refund shall be made.
(i) This section shall in no way relieve any taxpayer from the
taxpayer's obligation of filing a return or returns at the time required
under this article and IC 6-3.5, and, should the amount withheld under
the provisions of this section be insufficient to pay the total tax of such
taxpayer, such unpaid tax shall be paid at the time prescribed by
section 5 of this chapter.
(j) Notwithstanding subsection (b), an employer of a domestic
service employee that enters into an agreement with the domestic
service employee to withhold federal income tax under Section 3402
of the Internal Revenue Code may withhold Indiana income tax on the
domestic service employee's wages on the employer's Indiana
individual income tax return in the same manner as allowed by Section
3510 of the Internal Revenue Code.
(k) To the extent allowed by Section 1137 of the Social Security
Act, an employer of a domestic service employee may report and remit
state unemployment insurance contributions on the employee's wages
on the employer's Indiana individual income tax return in the same
manner as allowed by Section 3510 of the Internal Revenue Code.
(l) A person who knowingly fails to remit trust fund money as set
forth in this section commits a Class D felony.
SECTION 56. IC 6-3-4-8.1, AS AMENDED BY P.L.182-2009(ss),
SECTION 199, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2013]: Sec. 8.1. (a) Any entity that is
required to file a monthly return and make a monthly remittance of
taxes under sections 8, 12, 13, and 15 of this chapter shall file those
returns and make those remittances twenty (20) days (rather than thirty
(30) days) after the end of each month for which those returns and
remittances are filed, if that entity's average monthly remittance for the
immediately preceding calendar year exceeds one thousand dollars
($1,000).
(b) The department may require any entity to make the entity's
monthly remittance and file the entity's monthly return twenty (20) days
(rather than thirty (30) days) after the end of each month for which a
return and payment are made if the department estimates that the
entity's average monthly payment for the current calendar year will
exceed one thousand dollars ($1,000).
(c) If the department determines that a withholding agent is not
withholding, reporting, or remitting an amount of tax in accordance
with this chapter, the department may require the withholding agent:
(1) to make periodic deposits during the reporting period; and
(2) to file an informational return with each periodic deposit.
(d) If a person files a combined sales and withholding tax report and
either this section or IC 6-2.5-6-1 requires the sales or withholding tax
report to be filed and remittances to be made within twenty (20) days
after the end of each month, then the person shall file the combined
report and remit the sales and withholding taxes due within twenty (20)
days after the end of each month.
(e) (d) If the department determines that an entity's:
(1) estimated monthly withholding tax remittance for the current
year; or
(2) average monthly withholding tax remittance for the preceding
year;
exceeds five thousand dollars ($5,000), the entity shall remit the
monthly withholding taxes due by electronic fund transfer (as defined
in IC 4-8.1-2-7) or by delivering in person or by overnight courier a
payment by cashier's check, certified check, or money order to the
department. The transfer or payment shall be made on or before the
date the remittance is due.
(f) (e) An entity that registers to withhold withholds taxes after
December 31, 2009, shall file the withholding tax report and remit
withholding taxes electronically through the department's online tax
filing program.
SECTION 57. IC 6-3-4-12, AS AMENDED BY P.L.211-2007,
SECTION 26, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 12. (a) Every partnership shall, at the time that the
partnership pays or credits amounts to any of its nonresident partners
on account of their distributive shares of partnership income, for a
taxable year of the partnership, deduct and retain therefrom the amount
prescribed in the withholding instructions referred to in section 8 of
this chapter. Such partnership so paying or crediting any nonresident
partner:
(1) shall be liable to the state of Indiana for the payment of the tax
required to be deducted and retained under this section and shall
not be liable to such partner for the amount deducted from such
payment or credit and paid over in compliance or intended
compliance with this section; and
(2) shall make return of and payment to the department monthly
whenever the amount of tax due under IC 6-3 and IC 6-3.5
exceeds an aggregate amount of fifty dollars ($50) per month with
such payment due on the thirtieth day of the following month,
unless an earlier date is specified by section 8.1 of this chapter.
Where the aggregate amount due under IC 6-3 and IC 6-3.5 does not
exceed fifty dollars ($50) per month, then such partnership shall make
return and payment to the department quarterly, on such dates and in
such manner as the department shall prescribe, of the amount of tax
which, under IC 6-3 and IC 6-3.5, it is required to withhold.
(b) Every partnership shall, at the time of each payment made by it to the department pursuant to this section, deliver to the department a return upon such form as shall be prescribed by the department showing the total amounts paid or credited to its nonresident partners, the amount deducted therefrom in accordance with the provisions of this section, and such other information as the department may require. Every partnership making the deduction and retention provided in this section shall furnish to its nonresident partners annually, but not later than
(c) All money deducted and retained by the partnership, as provided in this section, shall immediately upon such deduction be the money of the state of Indiana and every partnership which deducts and retains any amount of money under the provisions of IC 6-3 shall hold the same in trust for the state of Indiana and for payment thereof to the department in the manner and at the times provided in IC 6-3. Any partnership may be required to post a surety bond in such sum as the department shall determine to be appropriate to protect the state of Indiana with respect to money deducted and retained pursuant to this section.
(d) The provisions of IC 6-8.1 relating to additions to tax in case of delinquency and penalties shall apply to partnerships subject to the provisions of this section, and for these purposes any amount deducted, or required to be deducted and remitted to the department under this section, shall be considered to be the tax of the partnership, and with respect to such amount it shall be considered the taxpayer.
(e) Amounts deducted from payments or credits to a nonresident partner during any taxable year of the partnership in accordance with the provisions of this section shall be considered to be in part payment of the tax imposed on such nonresident partner for
(f) This section shall in no way relieve any nonresident partner from
(g) Instead of the reporting periods required under subsection (a), the department may permit a partnership to file one (1) return and
payment each year if the partnership pays or credits amounts to its
nonresident partners only one (1) time each year. The return and
payment are due not more than thirty (30) days on or before the
fifteenth day of the fourth month after the end of the year.
(h) A partnership shall file a composite adjusted gross income tax
return on behalf of all nonresident individual partners. The composite
return must include each nonresident individual partner regardless of
whether or not the nonresident individual partner has other Indiana
source income.
(i) If a partnership does not include all nonresident partners in the
composite return, the partnership is subject to the penalty imposed
under IC 6-8.1-10-2.1(j).
SECTION 58. IC 6-3-4-13, AS AMENDED BY P.L.211-2007,
SECTION 27, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 13. (a) Every corporation which is exempt from
tax under IC 6-3 pursuant to IC 6-3-2-2.8(2) shall, at the time that it
pays or credits amounts to any of its nonresident shareholders as
dividends or as their share of the corporation's undistributed taxable
income, withhold the amount prescribed by the department. Such
corporation so paying or crediting any nonresident shareholder:
(1) shall be liable to the state of Indiana for the payment of the tax
required to be withheld under this section and shall not be liable
to such shareholder for the amount withheld and paid over in
compliance or intended compliance with this section; and
(2) when the aggregate amount due under IC 6-3 and IC 6-3.5
exceeds one hundred fifty dollars ($150) per quarter, then such
corporation shall make return and payment to the department
quarterly, on such dates and in such manner as the department
shall prescribe, of the amount of tax which, under IC 6-3 and
IC 6-3.5, it is required to withhold.
(b) Every corporation shall, at the time of each payment made by it
to the department pursuant to this section, deliver to the department a
return upon such form as shall be prescribed by the department
showing the total amounts paid or credited to its nonresident
shareholders, the amount withheld in accordance with the provisions
of this section, and such other information as the department may
require. Every corporation withholding as provided in this section shall
furnish to its nonresident shareholders annually, but not later than the
fifteenth day of the third month after the end of its taxable year, a
record of the amount of tax withheld on behalf of such shareholders on
forms to be prescribed by the department.
(c) All money withheld by a corporation, pursuant to this section,
shall immediately upon being withheld be the money of the state of
Indiana and every corporation which withholds any amount of money
under the provisions of this section shall hold the same in trust for the
state of Indiana and for payment thereof to the department in the
manner and at the times provided in IC 6-3. Any corporation may be
required to post a surety bond in such sum as the department shall
determine to be appropriate to protect the state of Indiana with respect
to money withheld pursuant to this section.
(d) The provisions of IC 6-8.1 relating to additions to tax in case of
delinquency and penalties shall apply to corporations subject to the
provisions of this section, and for these purposes any amount withheld,
or required to be withheld and remitted to the department under this
section, shall be considered to be the tax of the corporation, and with
respect to such amount it shall be considered the taxpayer.
(e) Amounts withheld from payments or credits to a nonresident
shareholder during any taxable year of the corporation in accordance
with the provisions of this section shall be considered to be a part
payment of the tax imposed on such nonresident shareholder for his
taxable year within or with which the corporation's taxable year ends.
A return made by the corporation under subsection (b) shall be
accepted by the department as evidence in favor of the nonresident
shareholder of the amount so withheld from the shareholder's
distributive share.
(f) This section shall in no way relieve any nonresident shareholder
from the shareholder's obligation of filing a return or returns at the time
required under IC 6-3 or IC 6-3.5, and any unpaid tax shall be paid at
the time prescribed by section 5 of this chapter.
(g) Instead of the reporting periods required under subsection (a),
the department may permit a corporation to file one (1) return and
payment each year if the corporation pays or credits amounts to its
nonresident shareholders only one (1) time each year. The withholding
return and payment are due on or before the fifteenth day of the third
fourth month after the end of the taxable year of the corporation.
(h) If a distribution will be made with property other than money or
a gain is realized without the payment of money, the corporation shall
not release the property or credit the gain until it has funds sufficient
to enable it to pay the tax required to be withheld under this section. If
necessary, the corporation shall obtain such funds from the
shareholders.
(i) If a corporation fails to withhold and pay any amount of tax
required to be withheld under this section and thereafter the tax is paid
by the shareholders, such amount of tax as paid by the shareholders
shall not be collected from the corporation but it shall not be relieved
from liability for interest or penalty otherwise due in respect to such
failure to withhold under IC 6-8.1-10.
(j) A corporation described in subsection (a) shall file a composite
adjusted gross income tax return on behalf of all nonresident
shareholders. The composite return must include each nonresident
individual shareholder regardless of whether or not the nonresident
individual shareholder has other Indiana source income.
(k) If a corporation described in subsection (a) does not include all
nonresident shareholders in the composite return, the corporation is
subject to the penalty imposed under IC 6-8.1-10-2.1(j).
SECTION 59. IC 6-3-4-16.5, AS ADDED BY P.L.113-2010,
SECTION 57, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 16.5. (a) This section applies to:
(1) Form W-2 federal income tax withholding statements; and
(2) Form W-2G certain gambling winnings;
(3) Form 1099-R distributions from pensions, annuities,
retirement or profit sharing plans, IRAs, insurance contracts,
or like distributions;
(2) (4) Form WH-3 annual withholding tax reports; and
(5) Form WH-18 miscellaneous withholding tax statements for
nonresidents;
filed with the department after December 31, 2010. 2012.
(b) If an employer or any person or entity acting on behalf of an
employer files more than twenty-five (25):
(1) Form W-2 federal income tax withholding statements;
(2) Form W-2G certain gambling winnings;
(3) Form 1099-R distributions from pensions, annuities,
retirement or profit sharing plans, IRAs, insurance contracts,
or like distributions; or
(4) Form WH-18 miscellaneous withholding tax statements for
nonresidents;
with the department in a calendar year, all Form W-2 federal income
tax withholding statements forms and Form WH-3 annual withholding
tax reports filed with the department in that calendar year by the
employer or the person or entity acting on behalf of the employer must
be filed in an electronic format specified by the department.
SECTION 60. IC 6-3.1-24-9, AS AMENDED BY P.L.172-2011,
SECTION 68, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 9. (a) The total amount of tax credits that may be
allowed under this chapter in a particular calendar year for qualified
investment capital provided during that calendar year may not exceed
twelve million five hundred thousand dollars ($12,500,000). The
Indiana economic development corporation may not certify a proposed
investment plan under section 12.5 of this chapter if the proposed
investment would result in the total amount of the tax credits certified
for the calendar year exceeding twelve million five hundred thousand
dollars ($12,500,000). An amount of an unused credit carried over by
a taxpayer from a previous calendar year may not be considered in
determining the amount of proposed investments that the Indiana
economic development corporation may certify under this chapter.
(b) Notwithstanding the other provisions of this chapter, a taxpayer
is not entitled to a credit for providing qualified investment capital to
a qualified Indiana business after December 31, 2014. 2016. However,
this subsection may not be construed to prevent a taxpayer from
carrying over to a taxable year beginning after December 31, 2014,
2016, an unused tax credit attributable to an investment occurring
before January 1, 2015. 2017.
SECTION 61. IC 6-3.1-26-26, AS AMENDED BY
P.L.182-2009(ss), SECTION 202, IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 26. (a) This chapter
applies to taxable years beginning after December 31, 2003.
(b) Notwithstanding the other provisions of this chapter, the
corporation may not approve a credit for a qualified investment made
after December 31, 2013. 2016. However, this section may not be
construed to prevent a taxpayer from carrying an unused tax credit
attributable to a qualified investment made before January 1, 2014,
2017, forward to a taxable year beginning after December 31, 2013,
2016, in the manner provided by section 15 of this chapter.
SECTION 62. IC 6-3.1-31.9-23, AS ADDED BY P.L.223-2007,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 23. (a) This chapter applies to taxable years
beginning after December 31, 2006.
(b) Notwithstanding the other provisions of this chapter, the
corporation may not approve a an alternative fuel vehicle
manufacturing credit for a qualified investment made after December
31, 2012. 2016. However, this section may not be construed to prevent
a taxpayer from carrying an unused tax credit attributable to a qualified
investment made before January 1, 2012, 2017, forward to a taxable
year beginning after December 31, 2011, 2016, in the manner provided
by section 13 of this chapter.
SECTION 63. IC 6-3.1-33-9, AS ADDED BY P.L.110-2010,
SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 9. (a) Before January 1, 2013, 2017, a corporation
or pass through entity that desires to qualify for the new employer
credit provided by this chapter may submit an application to the IEDC
in the form and manner specified by the IEDC.
(b) The IEDC shall promptly review all applications submitted to
the IEDC under this chapter.
(c) If the IEDC determines that an applicant for the tax credit
provided by this chapter has furnished reliable evidence, as determined
by the IEDC, that the applicant is reasonably capable of:
(1) employing at least ten (10) qualified employees in each month
of the period specified in section 10(b) of this chapter during the
taxable year; and
(2) meeting the requirements for the tax credit provided by this
chapter;
the IEDC may issue the applicant a certificate of approval. If a
certificate of approval is issued, the IEDC shall provide a copy of the
certificate to the department.
(d) In making a determination of whether an applicant is qualified
for a credit under this chapter, the IEDC may consider the following:
(1) The applicant's employment levels in previous years to
determine if the applicant is hiring new individuals or rehiring
individuals.
(2) Whether the applicant is the successor to part or all of the
assets or business operations of another corporation or pass
through entity that conducted business operations in Indiana in
the same line of business to determine if the applicant is a new
Indiana business under this chapter.
(e) If the IEDC determines that the applicant will not employ at least
ten (10) qualified employees in each month of the period specified in
section 10(b) of this chapter during the taxable year, is not a new
Indiana business, or does not meet, or is unlikely to meet, any other
requirements for the tax credit provided by this chapter, the IEDC shall
notify the applicant of the IEDC's determination.
(f) The IEDC may not issue a certificate of approval under this
chapter after December 31, 2012. 2016.
SECTION 64. IC 6-3.5-1.1-2, AS AMENDED BY P.L.77-2011,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 2. (a) The county council of any county in which
the county option income tax will not be in effect on December 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.
(b) Except as provided in section 2.3, 2.5, 2.6, 2.7, 2.8, 2.9, 3.3, 3.5,
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 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.".
(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 not more than ten (10) days after the vote, send a
certified copy of the results to the commissioner of the department,
the director of the budget agency, and the commissioner of the
department of local government finance by certified mail or in an
electronic format approved by the director of the budget agency.
(e) 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.
SECTION 65. IC 6-3.5-1.1-2.6 IS REPEALED [EFFECTIVE JULY
1, 2012]. 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
SECTION 66. IC 6-3.5-1.1-3, AS AMENDED BY P.L.77-2011, SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: 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 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
(___%).".
(b) The auditor of a county shall record all votes taken on
ordinances presented for a vote under the authority of this section and,
immediately not more than ten (10) days after the vote, send a
certified copy of the results to the commissioner of the department,
the director of the budget agency, and the commissioner of the
department of local government finance by certified mail or in an
electronic format approved by the director of the budget agency.
SECTION 67. IC 6-3.5-1.1-3.1, AS AMENDED BY SEA115-2012,
SECTION 41, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: 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 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
(___%).".
(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) The auditor of a county shall record all votes taken on
ordinances presented for a vote under the authority of this section and,
immediately not more than ten (10) days after the vote, send a
certified copy of the results to the commissioner of the department,
the director of the budget agency, and the commissioner of the
department of local government finance by certified mail or in an
electronic format approved by the director of the budget agency.
(d) Notwithstanding IC 6-3.5-7, and except as provided in
subsection (e), 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.
(e) This subsection applies only to LaPorte County. 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.
SECTION 68. IC 6-3.5-1.1-4, AS AMENDED BY P.L.77-2011,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: 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 (d), the county council may
rescind the county adjusted gross income tax by adopting an ordinance
to rescind the tax.
(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 not more than ten (10) days after the vote, send a
certified copy of the results to the commissioner of the department,
the director of the budget agency, and the commissioner of the
department of local government finance by certified mail or in an
electronic format approved by the director of the budget agency.
(d) 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.
SECTION 69. IC 6-3.5-1.1-9, AS AMENDED BY P.L.229-2011,
SECTION 88, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2012 (RETROACTIVE)]: 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 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 for refunds of county adjusted gross income tax made in the state fiscal year.
(b) Before August 2 of each calendar year, 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).
(1) the amount reported on individual income tax returns processed by the department during the previous fiscal year;
(2) adjustments for over distributions in prior years;
(3) adjustments for clerical or mathematical errors in prior years;
(4) adjustments for tax rate changes; and
(5) the amount of excess account balances to be distributed under IC 6-3.5-1.1-21.1.
The budget agency 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, the department, and 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 budget agency shall certify an amount less than the amount determined under subsection (b) if 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 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 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 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 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) (e) This subsection applies to a county that initially imposes,
increases, decreases, or rescinds a tax or tax rate under this chapter
before November 1 in the same calendar year in which the budget
agency makes a certification under this section. 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 budget agency 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). If the
county imposes, increases, decreases, or rescinds a tax or tax rate under
this chapter after the date for which a certification under subsection (b)
is based, the budget agency shall adjust the certified distribution of the
county after August 1 of the calendar year. The adjustment shall reflect
any other adjustment required under subsections (c), (d), (e), (f), and
(g). and (h). The adjusted certification shall be treated as the county's
"certified distribution" for the immediately succeeding calendar year.
The budget agency shall certify the adjusted certified distribution to the
county auditor for the county and provide the county council with an
informative summary of the calculations that revises the informative
summary provided in subsection (b) and reflects the changes made in
the adjustment.
(g) (f) 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) (g) 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 budget agency 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).
(i) (h) The budget agency shall before May 1 of every
odd-numbered year publish an estimate of the statewide total amount
of certified distributions to be made under this chapter during the
following two (2) calendar years.
(j) (i) The budget agency shall before May 1 of every
even-numbered year publish an estimate of the statewide total amount
of certified distributions to be made under this chapter during the
following calendar year.
(k) (j) The estimates under subsections (h) and (i) and (j) must
specify the amount of the estimated certified distributions that are
attributable to the additional rate authorized under section 24 of this
chapter, the additional rate authorized under section 25 of this chapter,
the additional rate authorized under section 26 of this chapter, and any
other additional rates authorized under this chapter.
SECTION 70. IC 6-3.5-1.1-10, AS AMENDED BY SEA 115-2012,
SECTION 44, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
APRIL 1, 2012]: Sec. 10. (a) Except as provided in subsection (b),
one-half (1/2) One-twelfth (1/12) 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 the
first regular business day of each month of that calendar year.
(b) This subsection applies to Porter County, if an ordinance
imposing the tax is adopted before July 1 of a year. 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 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) (b) 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;
(2) revenue that must be used to pay the costs of operating a jail
and juvenile detention center under section 2.5 of this chapter;
(3) 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 2.8 of this chapter;
(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;
(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;
(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) (7) revenue attributable to a tax rate under section 24, 25, or
26 of this chapter;
distributions made to a county treasurer under subsections subsection
(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) (c) 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.
SECTION 71. IC 6-3.5-1.1-24, AS AMENDED BY HEA
1009-2012, SECTION 54, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2012]: 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,
not more than ten (10) days after the vote, the county auditor shall
send a certified copy of the ordinance to the commissioner of the
department, the director of the budget agency, and the commissioner
of the department of local government finance by certified mail or in
an electronic format approved by the director of the budget
agency.
(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 in the first 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 in the second 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 6-1.1-18.5-3(b), IC 6-1.1-18.5-3(c), IC 12-19-7-4(b) (before its
repeal), IC 12-19-7.5-6(b) (before its repeal), 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 6-1.1-18.5-3(b), IC 6-1.1-18.5-3(c), IC 12-19-7-4(b) (before its
repeal), IC 12-19-7.5-6(b) (before its repeal), 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), IC 6-1.1-18.5-3(b), 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 distributions in 2009 and thereafter, the result
of this STEP is zero (0). For distribution to the county for deposit
in the county family and children's fund before 2009, 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 distributions in 2009 and thereafter, the result of this STEP is zero (0). For distribution to the county for deposit in the county children's psychiatric residential treatment services fund before 2009, 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
(j) The tax levy under this section shall not be considered for purposes of the credit under IC 6-1.1-20.6.
(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) A county council must each year hold at least one (1) public
meeting at which the county council discusses whether the tax rate
under this section should be imposed or increased.
(r) 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.
SECTION 72. IC 6-3.5-1.1-25, AS AMENDED BY P.L.172-2011,
SECTION 74, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: 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 of at least twenty-five
hundredths of one percent (0.25%) under section 24 of this chapter, a
tax rate of at least twenty-five hundredths of one percent (0.25%) under
section 26 of this chapter, or a total combined tax rate of at least
twenty-five hundredths of one percent (0.25%) under sections 24 and
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 twenty-five
hundredths of one percent (0.25%).
(d) If a county council adopts an ordinance to impose a tax rate
under this section, not more than ten (10) days after the vote, the
county auditor shall send a certified copy of the ordinance to the
commissioner of the department, the director of the budget agency,
and the commissioner of the department of local government finance
by certified mail or in an electronic format approved by the director
of the budget agency.
(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) Except as provided in subsection (k) or (l), 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 that is carrying out or providing at least one
(1) of the public safety purposes described in subsection (a). 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 that is entitled to a
distribution under this section 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 IC 6-1.1-18.5-3; or
(3) the credit under IC 6-1.1-20.6.
(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.
(k) Two (2) or more political subdivisions that are entitled to receive a distribution under this section may adopt resolutions providing that some part or all of those distributions shall instead be paid to one (1) political subdivision in the county to carry out specific public safety purposes specified in the resolutions.
(l) A fire department, volunteer fire department, or emergency medical services provider that:
(1) provides fire protection or emergency medical services within the county; and
(2) is operated by or serves a political subdivision that is not otherwise entitled to receive a distribution of tax revenue under this section;
may before July 1 of a year apply to the county council for a distribution of tax revenue under this section during the following calendar year. The county council shall review an application
submitted under this subsection and may before September 1 of a year
adopt a resolution requiring that one (1) or more of the applicants shall
receive a specified amount of the tax revenue to be distributed under
this section during the following calendar year. A resolution approved
under this subsection providing for a distribution to one (1) or more fire
departments, volunteer fire departments, or emergency medical
services providers applies only to distributions in the following
calendar year. Any amount of tax revenue distributed under this
subsection to a fire department, volunteer fire department, or
emergency medical services provider shall be distributed before the
remainder of the tax revenue is distributed under subsection (f).
SECTION 73. IC 6-3.5-1.1-26, AS AMENDED BY P.L.172-2011,
SECTION 75, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 26. (a) A county council may impose a tax rate
under this section to provide property tax relief to taxpayers 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, not more than ten (10) days after the vote,
the county auditor shall send a certified copy of the ordinance to the
commissioner of the department, the director of the budget agency,
and the commissioner of the department of local government finance
by certified mail or in an electronic format approved by the director
of the budget agency.
(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) Except as provided in subsection (j), the tax revenue may be
used to provide local property tax replacement credits at a
uniform rate to all taxpayers in the county. The local property tax
replacement credits shall be treated for all purposes as property
tax levies. The county auditor shall determine the local property
tax replacement credit percentage for a particular year based on
the amount of tax revenue that will be used under this subdivision
to provide local property tax replacement credits in that year. A
county council may not adopt an ordinance determining that tax
revenue shall be used under this subdivision to provide local
property tax replacement credits at a uniform rate to all taxpayers
in the county unless the county council has done the following:
(A) Made available to the public the county council's best
estimate of the amount of property tax replacement credits to
be provided under this subdivision to homesteads, other
residential property, commercial property, industrial property,
and agricultural property.
(B) Adopted a resolution or other statement acknowledging
that some taxpayers in the county that do not pay the tax rate
under this section will receive a property tax replacement
credit that is funded with tax revenue from the tax rate under
this section.
(2) The tax revenue may be used to uniformly provide the
homestead credit percentage in the county. The homestead credits
shall be treated for all purposes as property tax levies. The
homestead credits do not reduce the basis for determining any
state homestead credit. The 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
county auditor shall determine the homestead credit percentage
for a particular year based on the amount of tax revenue that will
be used under this subdivision to provide 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 before January 1, 2009,
and as defined in section 1 of this chapter after December 31,
2008) in the county. The local property tax replacement credits
shall be treated for all purposes as property tax levies. The county
auditor shall determine the local property tax replacement credit
percentage for a particular year based on the amount of tax
revenue that will be used under this subdivision to provide local
property tax replacement credits in that year.
(4) This subdivision applies only to Lake County. The Lake
County council may adopt an ordinance providing that the tax
revenue from the tax rate under this section is used for any of the
following:
(A) To reduce all property tax levies imposed by the county by
the granting of property tax replacement credits against those
property tax levies.
(B) To provide local property tax replacement credits in Lake
County in the following manner:
(i) The tax revenue under this section that is collected from
taxpayers within a particular municipality in Lake County
(as determined by the department based on the department's
best estimate) shall be used only to provide a local property
tax credit against property taxes imposed by that
municipality.
(ii) The tax revenue under this section that is collected from
taxpayers within the unincorporated area of Lake County (as
determined by the department) shall be used only to provide
a local property tax credit against property taxes imposed by
the county. The local property tax credit for the
unincorporated area of Lake County shall be available only
to those taxpayers within the unincorporated area of the
county.
(C) To provide property tax credits in the following manner:
(i) Sixty percent (60%) of the tax revenue under this section
shall be used as provided in clause (B).
(ii) Forty percent (40%) of the tax revenue under this section
shall be used to provide property tax replacement credits
against property tax levies of the county and each township
and municipality in the county. The percentage of the tax
revenue distributed under this item that shall be used as
credits against the county's levies or against a particular
township's or municipality's levies is equal to the percentage
determined by dividing the population of the county,
township, or municipality by the sum of the total population
of the county, each township in the county, and each
municipality in the county.
The Lake County council shall determine whether the credits
under clause (A), (B), or (C) shall be provided to homesteads, to
all qualified residential property, or to all taxpayers. The
department of local government finance, with the assistance of the
budget agency, shall certify to the county auditor and the fiscal
body of the county and each township and municipality in the
county the amount of property tax credits under this subdivision.
Except as provided in subsection (g), the tax revenue under this
section that is used to provide credits under this subdivision shall
be treated for all purposes as property tax levies.
The county council may adopt an ordinance changing the purposes for
which tax revenue attributable to a tax rate under this section shall be
used in the following 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
IC 6-1.1-18.5-3; or
(3) the credit under IC 6-1.1-20.6.
(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. To the extent the county
auditor determines that there is income tax revenue remaining from the
tax under this section after providing the property tax replacement
credits, the excess shall be credited to a dedicated county account and
may be used only for property tax replacement credits under this
section in subsequent years.
(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) A taxpayer that owns an industrial plant located in Jasper County
is ineligible for a local property tax replacement credit under this
section against the property taxes due on the industrial plant if the
assessed value of the industrial plant as of March 1, 2006, exceeds
twenty percent (20%) of the total assessed value of all taxable property
in the county on that date. The general assembly finds that the
provisions of this subsection are necessary because the industrial plant
represents such a large percentage of Jasper County's assessed
valuation.
SECTION 74. IC 6-3.5-1.5-1, AS AMENDED BY
P.L.182-2009(ss), SECTION 215, IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 1. (a) The department
of local government finance and the department of state revenue
(before January 1, 2010) or the budget agency (after December 31,
2009) shall, before July September 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 civil taxing units
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 civil taxing
units 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: This STEP applies only to property taxes first due
and payable before January 1, 2009. 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 (before its repeal) for the
ensuing calendar year (before any adjustment under
IC 12-19-7-4(b) (before its repeal) 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 (before its repeal) for the
current calendar year.
STEP THREE: This STEP applies only to property taxes first due
and payable before January 1, 2009. 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 (before its repeal) the ensuing calendar
year (before any adjustment under IC 12-19-7.5-6(b) (before
its repeal) 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
(before its repeal) 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 (before January 1, 2010) or the budget agency (after December
31, 2009) 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 (before January 1, 2010) or the budget
agency (after December 31, 2009) 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 (before January 1, 2010) or the budget agency
(after December 31, 2009) 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) Notwithstanding IC 6-3.5-1.1-24(h) and IC 6-3.5-6-30(h), if a
county has adopted an income tax rate under IC 6-3.5-1.1-24 or
IC 6-3.5-6-30 to replace property tax levy growth, the part of the tax
rate under IC 6-3.5-1.1-24 or IC 6-3.5-6-30 that was used before
January 1, 2009, to reduce levy growth in the county family and
children's fund property tax levy and the children's psychiatric
residential treatment services property tax levy shall instead be used for
property tax relief in the same manner that a tax rate under
IC 6-3.5-1.1-26 or IC 6-3.5-6-32 is used for property tax relief.
SECTION 75. IC 6-3.5-1.5-2, AS ADDED BY P.L.224-2007,
SECTION 69, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 2. The department of local government finance
shall, before July September 1 of each year, certify the amount
calculated for a county under section 1 of this chapter to the county
auditor.
SECTION 76. IC 6-3.5-6-1.5, AS ADDED BY P.L.113-2010,
SECTION 63, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2012 (RETROACTIVE)]: Sec. 1.5. (a) Notwithstanding
any other provision of this chapter, a power granted by this chapter to
adopt an ordinance to:
(1) impose, increase, decrease, or rescind a tax or tax rate; or
(2) grant, increase, decrease, rescind, or change a homestead
credit or property tax replacement credit authorized under this
chapter;
may be exercised at any time in a year before November 1 of that year.
(b) Notwithstanding any other provision of this chapter, an
ordinance authorized by this chapter that imposes or increases a tax or
a tax rate takes effect as follows:
(1) An ordinance adopted after December 31 of the immediately
preceding year and before October 1 of the current year takes
effect October 1 of the current year.
(2) An ordinance adopted after September 30 and before October
16 of the current year takes effect November 1 of the current year.
(3) An ordinance adopted after October 15 and before November
1 of the current year takes effect December 1 of the current year.
(c) Notwithstanding any other provision of this chapter, an
ordinance authorized by this chapter that decreases or rescinds a tax or
a tax rate takes effect as follows:
(1) An ordinance adopted after December 31 of the immediately
preceding year and before October 1 of the current year takes
effect on the later of October 1 of the current year or the first day
of the month in the current year as the month in which the last
increase in the tax or tax rate occurred.
(2) An ordinance adopted after September 30 and before October
16 of the current year takes effect on the later of November 1 of
the current year or the first day of the month in the current year as
the month in which the last increase in the tax or tax rate
occurred.
(3) An ordinance adopted after October 15 and before November
1 of the current year takes effect December 1 of the current year.
(d) Notwithstanding any other provision of this chapter, Except as
provided in subsection (e), an ordinance authorized by this chapter
that grants, increases, decreases, rescinds, or changes a homestead
credit or property tax replacement credit authorized under this chapter
takes effect for and initially applies to property taxes first due and
payable in the year immediately following the year in which the
ordinance is adopted.
(e) This subsection applies only to Miami County. A county
income tax council may adopt an ordinance in 2012 to select a
different combination of uses specified in section 32(f) of this
chapter for tax revenue distributed to the county from a tax rate
imposed under section 32 of this chapter (county option income tax
rate to provide property tax relief to taxpayers). The county
income tax council may provide in the ordinance that the
ordinance initially takes effect for and applies to property taxes
first due and payable in 2012. This subsection expires January 1,
2013.
SECTION 77. IC 6-3.5-6-8, AS AMENDED BY P.L.77-2011,
SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: 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 December 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.
(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 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.".
(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 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 not more than
ten (10) days after the vote, send a certified copy of the results to the
commissioner of the department, the director of the budget agency,
and the commissioner of the department of local government
finance by certified mail or in an electronic format approved by the
director of the budget agency.
SECTION 78. IC 6-3.5-6-9, AS AMENDED BY P.L.77-2011,
SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 9. (a) If on March 31 January 1 of a calendar year
the county option income tax rate in effect for resident county
taxpayers equals six tenths of one percent (0.6%), excluding a tax rate
imposed under section 30, 31, or 32 of this chapter, the county income
tax council of that county may 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%)
in the year in which the ordinance is adopted, as provided in section 1.5
of this chapter, and on each succeeding 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 not more than ten (10) days after the vote, send a
certified copy of the results to the commissioner of the department,
the director of the budget agency, and the commissioner of the
department of local government finance by certified mail or in an
electronic format approved by the director of the budget agency.
SECTION 79. IC 6-3.5-6-11, AS AMENDED BY P.L.77-2011,
SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 11. (a) This section does not apply to a tax rate
imposed under section 30 of this chapter.
(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 December 1 of a year.
(c) To freeze the county option income tax rates, a county income
tax council must 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
December 1 of the current year.".
(d) An ordinance adopted under the authority of this section remains
in effect until rescinded.
(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 (0.1%) 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%)).
(f) The county auditor shall record any vote taken on an ordinance proposed under the authority of this section and,
SECTION 80. IC 6-3.5-6-12, AS AMENDED BY P.L.77-2011, SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: 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.
(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,
SECTION 81. IC 6-3.5-6-12.5, AS AMENDED BY P.L.77-2011, SECTION 17, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: 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. The ordinance must
substantially state the following:
"The ______________ County Income Tax Council decreases the
county option income tax rate from __________ percent (___ %)
to __________ percent (___ %).".
(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) The county auditor shall record the votes taken on an ordinance
under this subsection and, not more than ten (10) days after the vote,
shall send a certified copy of the ordinance to the commissioner of the
department, the director of the budget agency, and the
commissioner of the department of local government finance by
certified mail not more than thirty (30) days after the ordinance is
adopted. or in an electronic format approved by the director of the
budget agency.
(e) 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.
SECTION 82. IC 6-3.5-6-17, AS AMENDED BY P.L.229-2011,
SECTION 90, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2012 (RETROACTIVE)]: 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 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 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), (e), and (f). The budget agency shall provide
the county council with an informative summary of the calculations
used to determine the certified distribution. The summary of
calculations must include:
(1) the amount reported on individual income tax returns
processed by the department during the previous fiscal year;
(2) adjustments for over distributions in prior years;
(3) adjustments for clerical or mathematical errors in prior years;
(4) adjustments for tax rate changes; and
(5) the amount of excess account balances to be distributed under
IC 6-3.5-6-17.3.
The budget agency 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 budget agency shall certify an amount less than the amount
determined under subsection (b) if 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 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 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 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 imposes, increases,
decreases, or rescinds a tax or tax rate under this chapter before
November 1 in the same calendar year in which the budget agency
makes a certification under this section. 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 budget agency 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). If the county imposes,
increases, decreases, or rescinds a tax or tax rate under this chapter
after the date for which a certification under subsection (b) is based, the
budget agency shall adjust the certified distribution of the county after
August 1 of the calendar year. The adjustment shall reflect any other
adjustment required under subsections (c), (d), and (f). The adjusted
certification shall be treated as the county's "certified distribution" for
the immediately succeeding calendar year. The budget agency shall
certify the adjusted certified distribution to the county auditor for the
county and provide the county council with an informative summary of
the calculations that revises the informative summary provided in
subsection (b) and reflects the changes made in the adjustment.
(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 budget agency 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).
(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 regular business day of each month of that
calendar year.
(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.
(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.
(j) The budget agency shall before May 1 of every odd-numbered
year publish an estimate of the statewide total amount of certified
distributions to be made under this chapter during the following two (2)
calendar years.
(k) The budget agency shall before May 1 of every even-numbered
year publish an estimate of the statewide total amount of certified
distributions to be made under this chapter during the following
calendar year.
(l) The estimates under subsections (j) and (k) must specify the
amount of the estimated certified distributions that are attributable to
the additional rate authorized under section 30 of this chapter, the
additional rate authorized under section 31 of this chapter, the
additional rate authorized under section 32 of this chapter, and any
other additional rates authorized under this chapter.
SECTION 83. IC 6-3.5-6-28, AS AMENDED BY P.L.77-2011,
SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: 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 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 a county option income tax
at a rate that does not exceed twenty-five hundredths percent (0.25%)
on the adjusted gross income of resident county taxpayers. The tax rate
may be adopted in any increment of one hundredth percent (0.01%).
Before the county fiscal body 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, Not
more than ten (10) days after the vote, the county fiscal body shall
send a certified copy of the ordinance to the county auditor, the
commissioner of the department, the director of the budget agency,
and the commissioner of the department of local government finance
and the department of state revenue. by certified mail or in an
electronic format approved by the director of the budget agency.
(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 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 budget agency 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.
SECTION 84. IC 6-3.5-6-29, AS AMENDED BY P.L.77-2011,
SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: 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, Not more than ten (10) days after the vote, the county
fiscal body shall send a certified copy of the ordinance to the county
auditor, the commissioner of the department, the director of the
budget agency, and the commissioner of the department of local
government finance and the department. by certified mail or in an
electronic format approved by the director of the budget agency.
(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 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 budget agency 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.
SECTION 85. IC 6-3.5-6-30, AS AMENDED BY P.L.172-2011,
SECTION 76, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 30. (a) In a county in which the county option
income tax is in effect, the county income tax council may 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 adopt an ordinance to impose a tax rate under
this section.
(c) If a county income tax council adopts an ordinance to impose or
increase a tax rate under this section, not more than ten (10) days
after the vote, the county auditor shall send a certified copy of the
ordinance to the commissioner of the department, the director of the
budget agency, and the commissioner of the department of local
government finance by certified mail or in an electronic format
approved by the director of the budget agency.
(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 in the first
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 in the second
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(b), IC 6-1.1-18.5-3(c),
IC 12-19-7-4(b) (before its repeal), IC 12-19-7.5-6(b) (before its
repeal), 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 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(b), IC 6-1.1-18.5-3(c),
IC 12-19-7-4(b) (before its repeal), IC 12-19-7.5-6(b) (before its
repeal), 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(b), 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 distributions in 2009 and thereafter, the result
of this STEP is zero (0). For distribution to the county for deposit
in the county family and children's fund before 2009, 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 distributions in 2009 and thereafter, the result
of this STEP is zero (0). For distribution to the county for deposit
in the county children's psychiatric residential treatment services
fund before 2009, 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 section.
(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 IC 6-1.1-18.5-3.
(j) The tax levy under this section shall not be considered for purposes of the credit under IC 6-1.1-20.6.
(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) A county income tax council must each year hold at least one (1)
public meeting at which the county council discusses whether the tax
rate under this section should be imposed or increased.
(r) 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.
(s) 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.
SECTION 86. IC 6-3.5-6-31, AS AMENDED BY P.L.172-2011,
SECTION 77, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: 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 of at least twenty-five hundredths of one percent (0.25%) under section 30 of this chapter, a tax rate of at least twenty-five hundredths of
one percent (0.25%) under section 32 of this chapter, or a total
combined tax rate of at least twenty-five hundredths of one
percent (0.25%) under sections 30 and 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) Twenty-five hundredths of one percent (0.25%), 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, not more than ten (10) days after the vote,
the county auditor shall send a certified copy of the ordinance to the
commissioner of the department, the director of the budget agency,
and the commissioner of the department of local government finance
by certified mail or in an electronic format approved by the director
of the budget agency.
(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) Except as provided in subsections (l) and (m), 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 that is carrying out or providing at least one
(1) of the public safety purposes described in subsection (a). 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 that
is entitled to a distribution under this section 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
IC 6-1.1-18.5-3; or
(3) the credit under IC 6-1.1-20.6.
(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.
(l) Two (2) or more political subdivisions that are entitled to receive
a distribution under this section may adopt resolutions providing that
some part or all of those distributions shall instead be paid to one (1)
political subdivision in the county to carry out specific public safety
purposes specified in the resolutions.
(m) A fire department, volunteer fire department, or emergency
medical services provider that:
(1) provides fire protection or emergency medical services within
the county; and
(2) is operated by or serves a political subdivision that is not
otherwise entitled to receive a distribution of tax revenue under
this section;
may before July 1 of a year apply to the county income tax council for
a distribution of tax revenue under this section during the following
calendar year. The county income tax council shall review an
application submitted under this subsection and may before September
1 of a year adopt a resolution requiring that one (1) or more of the
applicants shall receive a specified amount of the tax revenue to be
distributed under this section during the following calendar year. A
resolution approved under this subsection providing for a distribution
to one (1) or more fire departments, volunteer fire departments, or
emergency services providers applies only to distributions in the
following calendar year. Any amount of tax revenue distributed under
this subsection to a fire department, volunteer fire department, or
emergency medical services provider shall be distributed before the
remainder of the tax revenue is distributed under subsection (f).
SECTION 87. IC 6-3.5-6-32, AS AMENDED BY P.L.172-2011,
SECTION 78, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 32. (a) A county income tax council may impose
a tax rate under this section to provide property tax relief to taxpayers
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, not more than ten (10) days
after the vote, the county auditor shall send a certified copy of the
ordinance to the commissioner of the department, the director of the
budget agency, and the commissioner of the department of local
government finance by certified mail or in an electronic format
approved by the director of the budget agency.
(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 all taxpayers in the
county. The local property tax replacement credits shall be treated
for all purposes as property tax levies. The county auditor shall
determine the local property tax replacement credit percentage for
a particular year based on the amount of tax revenue that will be
used under this subdivision to provide local property tax
replacement credits in that year. A county income tax council may
not adopt an ordinance determining that tax revenue shall be used
under this subdivision to provide local property tax replacement
credits at a uniform rate to all taxpayers in the county unless the
county council has done the following:
(A) Made available to the public the county council's best
estimate of the amount of property tax replacement credits to
be provided under this subdivision to homesteads, other
residential property, commercial property, industrial property,
and agricultural property.
(B) Adopted a resolution or other statement acknowledging
that some taxpayers in the county that do not pay the tax rate
under this section will receive a property tax replacement
credit that is funded with tax revenue from the tax rate under
this section.
(2) The tax revenue may be used to uniformly increase (before
January 1, 2011) or uniformly provide (after December 31, 2010)
the homestead credit percentage in the county. The homestead
credits shall be treated for all purposes as property tax levies. The
homestead credits do not reduce the basis for determining any
state homestead credit. The 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
county auditor shall determine the homestead credit percentage
for a particular year based on the amount of tax revenue that will
be used under this subdivision to provide 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 before January 1, 2009,
and as defined in section 1 of this chapter after December 31,
2008) in the county. The local property tax replacement credits
shall be treated for all purposes as property tax levies. The county
auditor shall determine the local property tax replacement credit
percentage for a particular year based on the amount of tax
revenue that will be used under this subdivision to provide local
property tax replacement credits in that year.
(4) This subdivision applies only to Lake County. The Lake
County council may adopt an ordinance providing that the tax
revenue from the tax rate under this section is used for any of the
following:
(A) To reduce all property tax levies imposed by the county by the granting of property tax replacement credits against those property tax levies.
(B) To provide local property tax replacement credits in Lake County in the following manner:
(i) The tax revenue under this section that is collected from taxpayers within a particular municipality in Lake County (as determined by the department based on the department's best estimate) shall be used only to provide a local property tax credit against property taxes imposed by that municipality.
(ii) The tax revenue under this section that is collected from taxpayers within the unincorporated area of Lake County (as determined by the department) shall be used only to provide a local property tax credit against property taxes imposed by the county. The local property tax credit for the unincorporated area of Lake County shall be available only to those taxpayers within the unincorporated area of the county.
(C) To provide property tax credits in the following manner:
(i) Sixty percent (60%) of the tax revenue under this section shall be used as provided in clause (B).
(ii) Forty percent (40%) of the tax revenue under this section shall be used to provide property tax replacement credits against property tax levies of the county and each township and municipality in the county. The percentage of the tax revenue distributed under this item that shall be used as credits against the county's levies or against a particular township's or municipality's levies is equal to the percentage determined by dividing the population of the county, township, or municipality by the sum of the total population of the county, each township in the county, and each municipality in the county.
The Lake County council shall determine whether the credits under clause (A), (B), or (C) shall be provided to homesteads, to all qualified residential property, or to all taxpayers. The department of local government finance, with the assistance of the budget agency, shall certify to the county auditor and the fiscal body of the county and each township and municipality in the county the amount of property tax credits under this subdivision. Except as provided in subsection (g), the tax revenue under this section that is used to provide credits under this subdivision shall
be treated for all purposes as property tax levies.
The county income tax council may adopt an ordinance changing the
purposes for which tax revenue attributable to a tax rate under this
section shall be used in the following year.
(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;
(2) the maximum permissible property tax levy under
IC 6-1.1-18.5-3; or
(3) the credit under IC 6-1.1-20.6.
(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. To the extent the county
auditor determines that there is income tax revenue remaining from the
tax under this section after providing the property tax replacement, the
excess shall be credited to a dedicated county account and may be used
only for property tax replacement under this section in subsequent
years.
(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.
SECTION 88. IC 6-3.5-6-33, AS AMENDED BY P.L.77-2011,
SECTION 23, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: 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, Not
more than ten (10) days after the vote, the county fiscal body shall
send a certified copy of the ordinance to the county auditor, the
commissioner of the department, the director of the budget agency,
and the commissioner of the department of local government finance
and the department of state revenue. by certified mail or in an
electronic format approved by the director of the budget agency.
(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 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 budget agency 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.
SECTION 89. IC 6-3.5-7-1.5 IS REPEALED [EFFECTIVE JULY
1, 2012]. Sec. 1.5. As used in this chapter, "capital project" includes
substance removal or remedial action in a designated unit.
SECTION 90. IC 6-3.5-7-4.3, AS AMENDED BY SEA 115-2012,
SECTION 49, IS REPEALED [EFFECTIVE JULY 1, 2012]. Sec. 4.3.
As used in this chapter, "designated unit" refers to Tippecanoe County.
SECTION 91. IC 6-3.5-7-4.6 IS REPEALED [EFFECTIVE JULY
1, 2012]. Sec. 4.6. As used in this chapter, "remedial action" has the
meaning set forth in IC 13-11-2-185.
SECTION 92. IC 6-3.5-7-4.7 IS REPEALED [EFFECTIVE JULY
1, 2012]. Sec. 4.7. As used in this chapter, "removal" has the meaning
set forth in IC 13-11-2-187.
SECTION 93. IC 6-3.5-7-4.8 IS REPEALED [EFFECTIVE JULY
1, 2012]. Sec. 4.8. As used in this chapter, "substance" has the meaning
set forth in IC 13-11-2-98 for "hazardous substance".
SECTION 94. IC 6-3.5-7-5, AS AMENDED BY SEA 115-2012,
SECTION 48, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: 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 March 31 October 1
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 March 31 October 1 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) this
section and section 28 of this chapter, 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), (s), (v), (w), (x), or (y), this section, 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), (u), (w), (x), or (y), this section, 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 adopt an
ordinance.
(e) 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.".
(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, the director of the
budget agency, and the commissioner of the department of local
government finance by certified mail or in an electronic format
approved by the director of the budget agency.
(g) This subsection applies to Tippecanoe County. Except as
provided in subsection (p), in addition to the rates permitted by
subsection (b), the:
(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.
(1) Elkhart County; or
(2) Marshall County;
except as provided in subsection
(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.
(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 (repealed) before January 1, 2009, or IC 6-1.1-12-37 after December 31, 2008) 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 or from the
exclusion in 2008 of inventory from the definition of personal property
in IC 6-1.1-1-11.
(q) (p) If the county economic development income tax is imposed
as authorized under subsection (p) (o) 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) (q) This subsection applies only to a county described in section
27 of this chapter. Except as provided in subsection (p), (o), 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) (r) Except as provided in subsection (p), (o), 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) (s) This subsection applies to Howard County. Except as
provided in subsection (p), (o), 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) (t) This subsection applies to Scott County. Except as provided
in subsection (p), (o), 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) (u) This subsection applies to Jasper County. Except as provided
in subsection (p), (o), 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%).
(1) the county economic development income tax rate plus the county adjusted gross income tax rate; or
(2) the county economic development tax rate plus the county option income tax rate.
(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
(z) This subsection applies to Starke County. Except as provided in subsection (o), if an ordinance is adopted under section 27.6 of this chapter, the county economic development income tax rate plus the county adjusted gross income tax rate that is in effect on January 1 of a year may not exceed two percent (2%).
SECTION 95. IC 6-3.5-7-6, AS AMENDED BY P.L.77-2011, SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: 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 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 (___%).".
(b) The auditor of a county shall record all votes taken on
ordinances presented for a vote under the authority of this section and,
immediately not more than ten (10) days after the vote, send a
certified copy of the results to the commissioner of the department,
the director of the budget agency, and the commissioner of the
department of local government finance by certified mail or in an
electronic format approved by the director of the budget agency.
SECTION 96. IC 6-3.5-7-7, AS AMENDED BY P.L.77-2011,
SECTION 26, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: 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.
(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 not more than ten (10) days after the vote, send a
certified copy of the results to the commissioner of the department,
the director of the budget agency, and the commissioner of the
department of local government finance by certified mail or in an
electronic format approved by the director of the budget agency.
SECTION 97. IC 6-3.5-7-11, AS AMENDED BY P.L.229-2011,
SECTION 92, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 11. (a) Revenue derived from the imposition of
the county economic development income tax shall, in the manner
prescribed by this section, be distributed to the county that imposed it.
(b) Before August 2 of each calendar year, the budget agency, shall
certify to the county auditor of each adopting county the sum of the
amount of county economic development income tax revenue that 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 for refunds of county economic development income tax
made in the state fiscal year plus the amount of interest in the county's
account that has been accrued and has not been included in a
certification made in a preceding year. The amount certified is the
county's certified distribution, which shall be distributed on the dates
specified in section 16 of this chapter for the following calendar year.
(c) The amount certified under subsection (b) shall be adjusted
under subsections (d), (e), (f), and (g). and (h). The budget agency
shall provide the county council with an informative summary of the
calculations used to determine the certified distribution. The summary
of calculations must include:
(1) the amount reported on individual income tax returns
processed by the department during the previous fiscal year;
(2) adjustments for over distributions in prior years;
(3) adjustments for clerical or mathematical errors in prior years;
(4) adjustments for tax rate changes; and
(5) the amount of excess account balances to be distributed under
IC 6-3.5-7-17.3.
(d) The budget agency shall certify an amount less than the amount
determined under subsection (b) if 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 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.
(e) 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 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.
(f) The budget agency shall adjust the certified distribution of a
county to provide the county with the distribution required under
section 16(b) of this chapter.
(g) (f) The budget agency shall adjust the certified distribution of a
county to provide the county with the amount of any tax increase
imposed under section 25 or 26 of this chapter to provide additional
homestead credits as provided in those provisions.
(h) (g) This subsection applies to a county that imposes, increases,
decreases, or rescinds a tax or tax rate under this chapter before
November 1 in the same calendar year in which the budget agency
makes a certification under this section. 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 budget agency shall provide for a full transition to
certification of distributions as provided in subsection (b)(1) through
(b)(2) in the manner provided in subsection (d). If the county imposes,
increases, decreases, or rescinds a tax or tax rate under this chapter
after the date for which a certification under subsection (b) is based, the
budget agency shall adjust the certified distribution of the county after
August 1 of the calendar year. The adjustment shall reflect any other
adjustment authorized under subsections (c), (d), (e), and (f). and (g).
The adjusted certification shall be treated as the county's certified
distribution for the immediately succeeding calendar year. The budget
agency shall certify the adjusted certified distribution to the county
auditor for the county and provide the county council with an
informative summary of the calculations that revises the informative
summary provided in subsection (c) and reflects the changes made in
the adjustment.
(i) (h) The budget agency shall before May 1 of every
odd-numbered year publish an estimate of the statewide total amount
of certified distributions to be made under this chapter during the
following two (2) calendar years.
(j) (i) The budget agency shall before May 1 of every
even-numbered year publish an estimate of the statewide total amount
of certified distributions to be made under this chapter during the
following calendar year.
(k) (j) The estimates under subsections (i) and (j) (h) and (i) must
specify the amount of the estimated certified distributions that are
attributable to any additional rates authorized under this chapter.
SECTION 98. IC 6-3.5-7-12, AS AMENDED BY P.L.199-2011,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2012 (RETROACTIVE)]: Sec. 12. (a) Except as
provided in sections 23, 25, 26, 27, 27.5, 27.6, and 28 of this chapter,
the county auditor shall distribute in the manner specified in this
section the certified distribution to the county.
(b) Except as provided in subsections (c) and (h) and sections
section 15 and 25 of this chapter, and subject to adjustment as
provided in IC 36-8-19-7.5, the amount of the certified distribution that
the county and each city or town in a county is entitled to receive
during May and November each month of each year equals the product
of the following:
(1) The amount of the certified distribution for that month; multiplied by
(2) A fraction. The numerator of the fraction equals the sum of:
(A) total property taxes that are first due and payable to the county, city, or town during the calendar year in which the month falls; plus
(B) for a county, the welfare allocation amount.
The denominator of the fraction equals the sum of the total property taxes that are first due and payable to the county and all cities and towns of the county during the calendar year in which the month falls, plus the welfare allocation amount. The welfare allocation amount is an amount equal to the sum of the property taxes imposed by the county in 1999 for the county's welfare fund and welfare administration fund and, if the county received a certified distribution under this chapter in 2008, the property taxes imposed by the county in 2008 for the county's county medical assistance to wards fund, family and children's fund, children's psychiatric residential treatment services fund, county hospital care for the indigent fund, and children with special health care needs county fund.
(c) This subsection applies to a county council or county income tax council that imposes a tax under this chapter after June 1, 1992. The body imposing the tax may adopt an ordinance before August 2 of a year to provide for the distribution of certified distributions under this subsection instead of a distribution under subsection (b). The following apply if an ordinance is adopted under this subsection:
(1) The ordinance is effective January 1 of the following year.
(2) Except as provided in
(A) the amount of the certified distribution for the month; multiplied by
(B) a fraction. For a city or town, the numerator of the fraction equals the population of the city or the town. For a county, the numerator of the fraction equals the population of the part of the county that is not located in a city or town. The denominator of the fraction equals the sum of the population of all cities and towns located in the county and the population of the part of the county that is not located in a city or town.
(3) The ordinance may be made irrevocable for the duration of
specified lease rental or debt service payments.
(d) The body imposing the tax may not adopt an ordinance under
subsection (c) if, before the adoption of the proposed ordinance, any of
the following have pledged the county economic development income
tax for any purpose permitted by IC 5-1-14 or any other statute:
(1) The county.
(2) A city or town in the county.
(3) A commission, a board, a department, or an authority that is
authorized by statute to pledge the county economic development
income tax.
(e) The department of local government finance shall provide each
county auditor with the fractional amount of the certified distribution
that the county and each city or town in the county is entitled to receive
under this section.
(f) Money received by a county, city, or town under this section
shall be deposited in the unit's economic development income tax fund.
(g) Except as provided in subsection (b)(2)(B), in determining the
fractional amount of the certified distribution the county and its cities
and towns are entitled to receive under subsection (b) during a calendar
year, the department of local government finance shall consider only
property taxes imposed on tangible property subject to assessment in
that county.
(h) In a county having a consolidated city, only the consolidated city
is entitled to the certified distribution, subject to the requirements of
sections 15 25, and 26 of this chapter.
SECTION 99. IC 6-3.5-7-13.1, AS AMENDED BY SEA 115,
SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 13.1. (a) The fiscal officer of each county, city, or
town for a county in which the county economic development tax is
imposed shall establish an economic development income tax fund.
Except as provided in sections 23, 25, 26, 27, and 27.5, and 27.6 of this
chapter, the revenue received by a county, city, or town under this
chapter shall be deposited in the unit's economic development income
tax fund.
(b) As used in this subsection, "homestead" means a homestead that
is eligible for a standard deduction under IC 6-1.1-12-37. Except as
provided in sections 15, 23, 25, 26, 27, and 27.5, and 27.6 of this
chapter, revenues from the county economic development income tax
may be used as follows:
(1) By a county, city, or town for economic development projects,
for paying, notwithstanding any other law, under a written
agreement all or a part of the interest owed by a private developer
or user on a loan extended by a financial institution or other
lender to the developer or user if the proceeds of the loan are or
are to be used to finance an economic development project, for
the retirement of bonds under section 14 of this chapter for
economic development projects, for leases under section 21 of
this chapter, or for leases or bonds entered into or issued prior to
the date the economic development income tax was imposed if
the purpose of the lease or bonds would have qualified as a
purpose under this chapter at the time the lease was entered into
or the bonds were issued.
(2) By a county, city, or town for:
(A) the construction or acquisition of, or remedial action with
respect to, a capital project for which the unit is empowered to
issue general obligation bonds or establish a fund under any
statute listed in IC 6-1.1-18.5-9.8;
(B) the retirement of bonds issued under any provision of
Indiana law for a capital project;
(C) the payment of lease rentals under any statute for a capital
project;
(D) contract payments to a nonprofit corporation whose
primary corporate purpose is to assist government in planning
and implementing economic development projects;
(E) operating expenses of a governmental entity that plans or
implements economic development projects;
(F) to the extent not otherwise allowed under this chapter,
funding substance removal or remedial action in a designated
unit; or
(G) funding of a revolving fund established under
IC 5-1-14-14.
(3) By a county, city, or town for any lawful purpose for which
money in any of its other funds may be used.
(4) By a city or county described in IC 36-7.5-2-3(b) for making
transfers required by IC 36-7.5-4-2. If the county economic
development income tax rate is increased after April 30, 2005, in
Porter County, the first three million five hundred thousand
dollars ($3,500,000) of the tax revenue that results each year from
the tax rate increase shall be used by the county or by eligible
municipalities (as defined in IC 36-7.5-1-11.3) in the county only
to make the county's transfer required by IC 36-7.5-4-2. The first
three million five hundred thousand dollars ($3,500,000) of the
tax revenue that results each year from the tax rate increase shall
be paid by the county treasurer to the treasurer of the northwest
Indiana regional development authority under IC 36-7.5-4-2
before certified distributions are made to the county or any cities
or towns in the county under this chapter from the tax revenue
that results each year from the tax rate increase. If Porter County
ceases to be a member of the northwest Indiana regional
development authority under IC 36-7.5 but two (2) or more
municipalities in the county have become members of the
northwest Indiana regional development authority as authorized
by IC 36-7.5-2-3(i), the county treasurer shall continue to transfer
the three million five hundred thousand dollars ($3,500,000) to
the treasurer of the northwest Indiana regional development
authority under IC 36-7.5-4-2 before certified distributions are
made to the county or any cities or towns in the county. In Porter
County, all of the tax revenue that results each year from the tax
rate increase that is in excess of the first three million five
hundred thousand dollars ($3,500,000) that results each year from
the tax rate increase must be used by the county and cities and
towns in the county for homestead credits under subdivision (5).
(5) This subdivision applies only in Porter County. All of the tax
revenue that results each year from a tax rate increase described
in subdivision (4) that is in excess of the first three million five
hundred thousand dollars ($3,500,000) that results each year from
the tax rate increase must be used by the county and cities and
towns in the county for homestead credits under this subdivision.
The following apply to homestead credits provided under this
subdivision:
(A) The homestead credits must be applied uniformly to
provide a homestead credit for homesteads in the county, city,
or town.
(B) The homestead credits shall be treated for all purposes as
property tax levies.
(C) The 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.
(D) The department of local government finance shall
determine the homestead credit percentage for a particular
year based on the amount of county economic development
income tax revenue that will be used under this subdivision to
provide homestead credits in that year.
(6) This subdivision applies only in Lake County. The county or
a city or town in the county may use county economic
development income tax revenue to provide homestead credits in
the county, city, or town. The following apply to homestead
credits provided under this subdivision:
(A) The county, city, or town fiscal body must adopt an
ordinance authorizing the homestead credits. The ordinance
must specify the amount of county economic development
income tax revenue that will be used to provide homestead
credits in the following year.
(B) The county, city, or town fiscal body that adopts an
ordinance under this subdivision must forward a copy of the
ordinance to the county auditor and the department of local
government finance not more than thirty (30) days after the
ordinance is adopted.
(C) The homestead credits must be applied uniformly to
increase the homestead credit under IC 6-1.1-20.9 (repealed)
for homesteads in the county, city, or town (for property taxes
first due and payable before January 1, 2009) or to provide a
homestead credit for homesteads in the county, city, or town
(for property taxes first due and payable after December 31,
2008).
(D) The homestead credits shall be treated for all purposes as
property tax levies.
(E) The 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.
(F) The department of local government finance shall
determine the homestead credit percentage for a particular
year based on the amount of county economic development
income tax revenue that will be used under this subdivision to
provide homestead credits in that year.
(7) For a regional venture capital fund established under section
13.5 of this chapter or a local venture capital fund established
under section 13.6 of this chapter.
(8) This subdivision applies only to LaPorte County, if:
(A) the county fiscal body has adopted an ordinance under
IC 36-7.5-2-3(e) providing that the county is joining the
northwest Indiana regional development authority; and
(B) the fiscal body of the city described in IC 36-7.5-2-3(e) has
adopted an ordinance under IC 36-7.5-2-3(e) providing that
the city is joining the development authority.
Revenue from the county economic development income tax may
be used by a county or a city described in this subdivision for
making transfers required by IC 36-7.5-4-2. In addition, if the
county economic development income tax rate is increased after
June 30, 2006, in the county, the first three million five hundred
thousand dollars ($3,500,000) of the tax revenue that results each
year from the tax rate increase shall be used by the county only to
make the county's transfer required by IC 36-7.5-4-2. The first
three million five hundred thousand dollars ($3,500,000) of the
tax revenue that results each year from the tax rate increase shall
be paid by the county treasurer to the treasurer of the northwest
Indiana regional development authority under IC 36-7.5-4-2
before certified distributions are made to the county or any cities
or towns in the county under this chapter from the tax revenue
that results each year from the tax rate increase. All of the tax
revenue that results each year from the tax rate increase that is in
excess of the first three million five hundred thousand dollars
($3,500,000) that results each year from the tax rate increase must
be used by the county and cities and towns in the county for
homestead credits under subdivision (9).
(9) This subdivision applies only to LaPorte County. All of the tax
revenue that results each year from a tax rate increase described
in subdivision (8) that is in excess of the first three million five
hundred thousand dollars ($3,500,000) that results each year from
the tax rate increase must be used by the county and cities and
towns in the county for homestead credits under this subdivision.
The following apply to homestead credits provided under this
subdivision:
(A) The homestead credits must be applied uniformly to
provide a homestead credit for homesteads in the county, city,
or town.
(B) The homestead credits shall be treated for all purposes as
property tax levies.
(C) The 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.
(D) The department of local government finance shall
determine the homestead credit percentage for a particular
year based on the amount of county economic development
income tax revenue that will be used under this subdivision to
provide homestead credits in that year.
(c) As used in this section, an economic development project is any
project that:
(1) the county, city, or town determines will:
(A) promote significant opportunities for the gainful
employment of its citizens;
(B) attract a major new business enterprise to the unit; or
(C) retain or expand a significant business enterprise within
the unit; and
(2) involves an expenditure for:
(A) the acquisition of land;
(B) interests in land;
(C) site improvements;
(D) infrastructure improvements;
(E) buildings;
(F) structures;
(G) rehabilitation, renovation, and enlargement of buildings
and structures;
(H) machinery;
(I) equipment;
(J) furnishings;
(K) facilities;
(L) administrative expenses associated with such a project,
including contract payments authorized under subsection
(b)(2)(D);
(M) operating expenses authorized under subsection (b)(2)(E);
or
(N) to the extent not otherwise allowed under this chapter,
substance removal or remedial action in a designated unit;
or any combination of these.
(d) If there are bonds outstanding that have been issued under
section 14 of this chapter or leases in effect under section 21 of this
chapter, the county or a city or town may not expend money from its
economic development income tax fund for a purpose authorized under
subsection (b)(3) in a manner that would adversely affect owners of the
outstanding bonds or payment of any lease rentals due.
SECTION 100. IC 6-3.5-7-15 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 15. (a) The executive
of a county, city, or town may, subject to the use of the certified
distribution permitted under sections 25 and section 26 of this chapter:
(1) adopt a capital improvement plan specifying the uses of the
revenues to be received under this chapter; or
(2) designate the county or a city or town in the county as the
recipient of all or a part of its share of the distribution.
(b) If a designation is made under subsection (a)(2), the county treasurer shall transfer the share or part of the share to the designated unit unless that unit does not have a capital improvement plan.
(c) A county, city, or town that fails to adopt a capital improvement plan may not receive:
(1) its fractional amount of the certified distribution; or
(2) any amount designated under subsection (a)(2);
for the year or years in which the unit does not have a plan. The county treasurer shall retain the certified distribution and any designated distribution for such a unit in a separate account until the unit adopts a plan. Interest on the separate account becomes part of the account. If a unit fails to adopt a plan for a period of three (3) years, then the balance in the separate account shall be distributed to the other units in the county based on property taxes first due and payable to the units during the calendar year in which the three (3) year period expires.
(d) A capital improvement plan must include the following components:
(1) Identification and general description of each project that would be funded by the county economic development income tax.
(2) The estimated total cost of the project.
(3) Identification of all sources of funds expected to be used for each project.
(4) The planning, development, and construction schedule of each project.
(e) A capital improvement plan:
(1) must encompass a period of no less than two (2) years; and
(2) must incorporate projects the cost of which is at least seventy-five percent (75%) of the fractional amount certified distribution expected to be received by the county, city, or town in that period of time.
(f) In making a designation under subsection (a)(2), the executive must specify the purpose and duration of the designation. If the designation is made to provide for the payment of lease rentals or bond payments, the executive may specify that the designation and its duration are irrevocable.
SECTION 101. IC 6-3.5-7-16, AS AMENDED BY SEA 115-2012, SECTION 50, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE APRIL 1, 2012]: Sec. 16. (a)
appropriate county treasurer The other one-half (1/2) shall be
distributed on November 1 the first regular business day of each
month of that calendar year.
(b) This subsection applies to Porter County, if the ordinance
imposing the tax is adopted before July 1 of a year. Notwithstanding
section 11 of this chapter, the initial certified distribution certified for
a county under section 11 of this chapter shall be distributed to the
county treasurer from the account established for the county under
section 10 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 5 of this
chapter:
(1) One-fourth (1/4) on October 1 of the 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.
The county auditor and county treasurer shall distribute amounts
received under this subsection to a county and each city or town in the
county in the same proportions as are set forth in section 12 of this
chapter. 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) Before July 1 of each year, a county's certified distribution for
additional homestead credits under section 25 or 26 of this chapter for
the year shall be distributed from the county's account established
under section 10 of this chapter.
(d) (b) All distributions from an account established under section
10 of this chapter shall be made by warrants issued by the auditor of
state to the treasurer of state ordering the appropriate payments.
SECTION 102. IC 6-3.5-7-22 IS REPEALED [EFFECTIVE JULY
1, 2012]. Sec. 22. (a) This section only applies to a designated unit.
(b) The county income tax council may, by ordinance, determine
that economic development income tax money is needed in the county
to fund substance removal and remedial action, including the
repayment of bonds or other debt incurred for substance removal or
remedial action, and the actions taken to fund substance removal and
remedial action serve a public purpose by promoting public health,
welfare, and safety.
SECTION 103. IC 6-3.5-7-25 IS REPEALED [EFFECTIVE JULY 1, 2012].
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.
SECTION 104. IC 6-3.5-7-25.5 IS REPEALED [EFFECTIVE JULY
1, 2012]. Sec. 25.5. Subject to the approval of the imposing entity, the
county auditor may adjust the increased percentage of homestead credit
determined under section 25(h)(2) of this chapter if the county auditor
determines that the adjustment is necessary to achieve an equitable
reduction of property taxes among the homesteads in the county.
SECTION 105. IC 6-3.5-7-26, AS AMENDED BY P.L.77-2011,
SECTION 30, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: 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 (repealed) or the standard
deduction under IC 6-1.1-12-37.
(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 (repealed) or the
standard deduction under IC 6-1.1-12-37.
(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) 16 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. The ordinance may provide
for an additional rate under section 5(p) 5(o) of this chapter. An
ordinance adopted under this subsection:
(1) first applies to the certified distribution described in section
16(c) 16 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 homestead credits as provided in subsection (f).
(B) Uniformly applied residential credits as provided in subsection (g).
(C) Allocated homestead credits as provided in subsection (i).
(D) Allocated 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 (before its repeal).
(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
(1) if the ordinance grants a credit described in subsection (c)(2)(A) or (c)(2)(C), a homestead credit for homesteads; or
(2) if the ordinance grants a credit described in subsection (c)(2)(B) or (c)(2)(D), a property tax replacement credit for residential property;
for property taxes 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 or from the exclusion in 2008 of inventory from the definition of personal property in IC 6-1.1-1-11. The amount of a 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 (before its repeal) or another law other than IC 6-1.1-20.6.
(f) If the imposing entity specifies the application of uniform homestead credits under subsection (c)(2)(A), the county auditor shall, for each calendar year in which a homestead credit percentage is authorized under this section, determine:
(1) the amount of the certified distribution that is available to provide a homestead credit percentage under this section 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 percentage of homestead credit under this section that equates to the amount of homestead credits determined under subdivision (2).
(g) If the imposing entity specifies the application of uniform residential credits under subsection (c)(2)(B), the county auditor shall determine for each calendar year in which a homestead credit percentage is authorized under this section:
(1) the amount of the certified distribution that is available to provide a 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 percentage of residential property tax replacement credit under this section that equates to the amount of residential property tax replacement credits determined under subdivision (2).
(h) The percentage of homestead credit determined by the county auditor under subsection (f) or the 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 percentage is determined.
(i) If the imposing entity specifies the application of allocated homestead credits under subsection (c)(2)(C), the county auditor shall, for each calendar year in which a homestead credit is authorized under this section, determine:
(1) the amount of the certified distribution that is available to provide a homestead credit under this section for the year; and
(2) except as provided in subsection (l), a percentage of homestead credit for each taxing district in the county that allocates to the taxing district an amount of 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 assessment date in 2006 bears to the total inventory assessed value deducted under IC 6-1.1-12-42 in the county for the assessment date in 2006.
(j) If the imposing entity specifies the application of allocated residential property tax replacement credits under subsection (c)(2)(D), the county auditor shall determine for each calendar year in which a residential property tax replacement credit is authorized under this section:
(1) the amount of the certified distribution that is available to provide a residential property tax replacement credit under this section for the year; and
(2) except as provided in subsection (l), a percentage of residential property tax replacement credit for each taxing district in the county that allocates to the taxing district an amount of 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 assessment date in 2006 bears to the total inventory assessed value deducted under IC 6-1.1-12-42 in the county for the assessment date in 2006.
(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 homestead credit or residential property tax replacement credit provided under this section 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 a homestead credit or residential property tax replacement credit under this section.
(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.
SECTION 106. IC 6-3.5-7-27, AS AMENDED BY P.L.77-2011, SECTION 31, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: 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 (1) 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,
(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 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.
SECTION 107. IC 6-3.5-7-27.6 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 27.6. (a) This section applies
to Starke County.
(b) Starke County possesses unique governmental and economic
development challenges due to:
(1) the county's predominantly rural geography, demography,
and economy;
(2) the county's relatively low tax base and relatively high
property tax rates;
(3) the current maximum capacity of the county jail, which
was constructed in 1976; and
(4) pending federal class action litigation seeking a mandate
to address capacity and living conditions in the county jail.
The use of county economic development income tax revenue
under this section is necessary for the county to address jail
capacity and appropriate inmate living conditions and to maintain
low property tax rates essential to economic development. The use
of the economic development income tax revenue under this section
for the purposes described in subsections (c) and (d) promotes that
purpose.
(c) The county council may, by ordinance, determine that
additional county economic development income tax revenue is
needed in the county to:
(1) finance, construct, acquire, and equip the county jail and
related buildings and parking facilities, including costs related
to the demolition of existing buildings, the acquisition of land,
and any other reasonably related costs; and
(2) repay bonds issued or leases entered into for constructing,
acquiring, and equipping the county jail and related buildings
and parking facilities, including costs related to the demolition
of existing buildings, the acquisition of land, and any other
reasonably related costs.
(d) The county council may, by ordinance, determine that
additional county economic development income tax revenue is
needed in the county to operate or maintain the facilities described
in subsection (c)(1) that are located in the county. The county
council may make a determination under this subsection and under
subsection (c).
(e) In addition to the rates permitted by section 5 of this
chapter, the county council may, subject to subsections (f) and (g),
impose the county economic development income tax at a rate not
to exceed sixty-five hundredths percent (0.65%) on the adjusted
gross income of county taxpayers if the county council:
(1) makes the determination described in subsection (c); or
(2) makes both the determination described in subsection (c)
and the determination described in subsection (d).
(f) If the county council makes only the determination under
subsection (c), the county council may adopt a tax rate under
subsection (e). The tax rate may not exceed the lesser of:
(1) sixty-five hundredths percent (0.65%); or
(2) the tax rate that is necessary to pay the costs of financing,
acquiring, and equipping the county jail and related buildings
and parking facilities, including costs related to the demolition
of existing buildings, the acquisition of land, and any other
reasonably related costs.
(g) If the county council makes both the determination under
subsection (c) and the determination under subsection (d), the
county council may adopt a tax rate under subsection (e). The tax
rate may not exceed the lesser of:
(1) sixty-five hundredths percent (0.65%); or
(2) the tax rate that is necessary to:
(A) pay the costs of financing, acquiring, and equipping the
county jail and related buildings and parking facilities,
including costs related to the demolition of existing
buildings, the acquisition of land, and any other reasonably
related costs; and
(B) provide sufficient annual revenues to operate and
maintain the facilities described in subsection (c)(1).
(h) A tax rate imposed under this section may be imposed only
until the later of:
(1) the date on which the last of any bonds issued or leases
entered into to finance the facilities are fully paid; or
(2) the date on which the ordinance under subsection (c) or (d)
is repealed or rescinded.
The term of the bonds issued (including any refunding bonds) or a
lease entered into under subsection (c)(2) may not exceed
twenty-five (25) years.
(i) The county treasurer shall establish a county jail revenue
fund to be used only for the purposes described in this section.
County economic development 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 11 of this chapter.
(j) County economic development 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 ad valorem 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 the purposes described in subsection (c).
SECTION 108. IC 6-3.5-7-28, AS AMENDED BY P.L.172-2011,
SECTION 79, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 28. (a) This section applies only to a county that
is a member of a regional development authority under IC 36-7.6.
(b) In addition to the rates permitted by section 5 of this chapter, the
entity that imposed the county economic development income tax
under section 5 of this chapter (or, in the case of a county that has not
imposed the county economic development income tax, the entity that
may impose the county economic development income tax under
section 5(a)(3) of this chapter) may by ordinance impose an additional
county economic development income tax at a rate of:
(1) in the case of a county described in IC 36-7.6-4-2(b)(2),
twenty-five thousandths of one percent (0.025%); or
(2) in the case of any other county to which this section applies,
five-hundredths of one percent (0.05%);
on the adjusted gross income of county taxpayers.
(c) If an additional county economic development income tax is imposed under this section, the county treasurer shall establish a county regional development authority fund. Notwithstanding any other provision of this chapter, the county economic development income tax revenues derived from the additional county economic development income tax imposed under this section must be deposited in the county regional development authority fund before any certified distributions are made under section 12 of this chapter.
(d) County economic development income tax revenues derived from the additional county economic development income tax imposed under this section and deposited in the county regional development authority fund:
(1) shall, not more than thirty (30) days after being deposited in the county regional development authority fund, be transferred as provided in IC 36-7.6-4-2 to the development fund of the regional development authority for which the county is a member; and
(2) may not be considered by the department of local government finance in determining the county's maximum permissible property tax levy under IC 6-1.1-18.5.
SECTION 109. IC 6-8.1-9-1, AS AMENDED BY P.L.172-2011,
SECTION 89, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 1. (a) If a person has paid more tax than the
person determines is legally due for a particular taxable period, the
person may file a claim for a refund with the department. Except as
provided in subsections (f) and (g), and (h), in order to obtain the
refund, the person must file the claim with the department within three
(3) years after the latter of the following:
(1) The due date of the return.
(2) The date of payment.
For purposes of this section, the due date for a return filed for the state
gross retail or use tax, the gasoline tax, the special fuel tax, the motor
carrier fuel tax, the oil inspection fee, or the petroleum severance tax
is the end of the calendar year which contains the taxable period for
which the return is filed. The claim must set forth the amount of the
refund to which the person is entitled and the reasons that the person
is entitled to the refund.
(b) After considering the claim and all evidence relevant to the
claim, the department shall issue a decision on the claim, stating the
part, if any, of the refund allowed and containing a statement of the
reasons for any part of the refund that is denied. The department shall
mail a copy of the decision to the person who filed the claim. If the
person disagrees with a part of the decision, the person may file a
protest and request a hearing with the department. The department
shall mail a copy of the decision to the person who filed the protest. If
the department allows the full amount of the refund claim, a warrant for
the payment of the claim is sufficient notice of the decision.
(c) If the person disagrees with any part of the department's
decision, the person may appeal the decision, regardless of whether or
not the person protested the tax payment or whether or not the person
has accepted a refund. The person must file the appeal with the tax
court. The tax court does not have jurisdiction to hear a refund appeal
suit, if:
(1) the appeal is filed more than three (3) years after the date the
claim for refund was filed with the department;
(2) (1) the appeal is filed more than ninety (90) days after the later
of the date the department mails:
(A) the decision of denial of the claim to the person; or
(B) the decision made on the protest filed under subsection
(b); or
(3) (2) the appeal is filed both before the decision is issued and
before the one hundred eighty-first day after the date the person
files the claim for refund with the department.
(d) The tax court shall hear the appeal de novo and without a jury, and after the hearing may order or deny any part of the appealed refund. The court may assess the court costs in any manner that it feels is equitable. The court may enjoin the collection of any of the listed taxes under IC 33-26-6-2. The court may also allow a refund of taxes, interest, and penalties that have been paid to and collected by the department.
(e) With respect to the motor vehicle excise tax, this section applies only to penalties and interest paid on assessments of the motor vehicle excise tax. Any other overpayment of the motor vehicle excise tax is subject to IC 6-6-5.
(f) If a taxpayer's federal income tax liability for a taxable year is modified by the Internal Revenue Service, and the modification would result in a reduction of the tax legally due, the due date by which the taxpayer must file a claim for refund with the department is the later of:
(1) the date determined under subsection (a); or
(2) the date that is one hundred eighty (180) days after the date on which the taxpayer is notified of the modification by the Internal Revenue Service.
(g) If an agreement to extend the assessment time period is entered into under IC 6-8.1-5-2(h), the period during which a person may file a claim for a refund under subsection (a) is extended to the same date to which the assessment time period is extended.
SECTION 110. IC 6-9-2-2, AS AMENDED BY SEA 115-2012, SECTION 56, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE APRIL 1, 2012]: Sec. 2. (a) The revenue received by the county treasurer under this chapter shall be allocated to the Lake County convention and visitor bureau, Indiana University-Northwest, Purdue University-Calumet, municipal public safety departments, municipal physical and economic development divisions, and the cities and towns in the county as provided in this section. Subsections (b) through (g) do not apply to the distribution of revenue received under section 1 of this chapter from hotels, motels, inns, tourist camps, tourist cabins, and other lodgings or accommodations built or refurbished after June 30, 1993, that are located in the
(b) The Lake County convention and visitor bureau shall establish a convention, tourism, and visitor promotion fund (referred to in this chapter as the "promotion fund"). The county treasurer shall transfer to the Lake County convention and visitor bureau for deposit in the promotion fund thirty-five percent (35%) of the first one million two hundred thousand dollars ($1,200,000) of revenue received from the tax imposed under this chapter in each year. The promotion fund consists of:
(1) money in the promotion fund on June 30, 2005;
(2) revenue deposited in the promotion fund under this subsection after June 30, 2005; and
(3) investment income earned on the promotion fund's assets.
Money in the funds established by the bureau may be expended to promote and encourage conventions, trade shows, special events, recreation, and visitors. Money may be paid from the funds established by the bureau, by claim in the same manner as municipalities may pay claims under IC 5-11-10-1.6.
(c) This subsection applies to the first one million two hundred thousand dollars ($1,200,000) of revenue received from the tax imposed under this chapter in each year. During each year, the county treasurer shall transfer to Indiana University-Northwest forty-four and thirty-three hundredths percent (44.33%) of the revenue received under this chapter for that year to be used as follows:
(1) Seventy-five percent (75%) of the revenue received under this subsection may be used only for the university's medical education programs.
(2) Twenty-five percent (25%) of the revenue received under this subsection may be used only for the university's allied health education programs.
(d) This subsection applies to the first one million two hundred thousand dollars ($1,200,000) of revenue received from the tax imposed under this chapter in each year. During each year, the county treasurer shall allocate among the cities and towns throughout the county nine percent (9%) of the revenue received under this chapter for that year as follows:
(1) Ten percent (10%) of the revenue covered by this subsection shall be distributed to cities having a population of more than eighty thousand (80,000) but less than eighty thousand four hundred (80,400).
(2) Ten percent (10%) of the revenue covered by this subsection shall be distributed to cities having a population of more than eighty thousand five hundred (80,500) but less than one hundred
thousand (100,000).
(3) Ten percent (10%) of the revenue covered by this subsection
shall be distributed to cities having a population of more than
twenty-nine thousand six hundred (29,600) but less than
twenty-nine thousand nine hundred (29,900).
(4) Seventy percent (70%) of the revenue covered by this
subsection shall be distributed in equal amounts to each town and
each city not receiving a distribution under subdivisions (1)
through (3).
The money distributed under this subsection may be used only for
tourism and economic development projects. The county treasurer shall
make the distributions on or before December 1 of each year.
(e) This subsection applies to the first one million two hundred
thousand dollars ($1,200,000) of revenue received from the tax
imposed under this chapter in each year. During each year, the county
treasurer shall transfer to Purdue University-Calumet nine percent (9%)
of the revenue received under this chapter for that year. The money
received by Purdue University-Calumet may be used by the university
only for nursing education programs.
(f) This subsection applies to the first one million two hundred
thousand dollars ($1,200,000) of revenue received from the tax
imposed under this chapter in each year. During each year, the county
treasurer shall transfer two and sixty-seven hundredths percent (2.67%)
of the revenue received under this chapter for that year to the following
cities:
(1) Fifty percent (50%) of the revenue covered by this subsection
shall be transferred to cities having a population of more than
eighty thousand (80,000) but less than eighty thousand four
hundred (80,400).
(2) Fifty percent (50%) of the revenue covered by this subsection
shall be transferred to cities having a population of more than
eighty thousand five hundred (80,500) but less than one hundred
thousand (100,000).
Money transferred under this subsection may be used only for
convention facilities located within the city. In addition, the money may
be used only for facility marketing, sales, and public relations
programs. Money transferred under this subsection may not be used for
salaries, facility operating costs, or capital expenditures related to the
convention facilities. The county treasurer shall make the transfers on
or before December 1 of each year.
(g) This subsection applies to the revenue received from the tax
imposed under this chapter in each year that exceeds one million two
hundred thousand dollars ($1,200,000). During each year, the county
treasurer shall distribute money in the promotion fund as follows:
(1) Eighty-five percent (85%) of the revenue covered by this
subsection shall be deposited in the convention, tourism, and
visitor promotion fund. The money deposited in the fund under
this subdivision may be used only for the purposes for which
other money in the fund may be used.
(2) Five percent (5%) of the revenue covered by this subsection
shall be transferred to Purdue University-Calumet. The money
received by Purdue University-Calumet under this subdivision
may be used by the university only for nursing education
programs.
(3) Five percent (5%) of the revenue covered by this subsection
shall be transferred to Indiana University-Northwest. The money
received by Indiana University-Northwest under this subdivision
may be used only for the university's medical education programs.
(4) Five percent (5%) of the revenue covered by this subsection
shall be transferred to Indiana University-Northwest. The money
received by Indiana University-Northwest under this subdivision
may be used only for the university's allied health education
programs.
(h) This subsection applies only to the distribution of revenue
received from the tax imposed under section 1 of this chapter from
hotels, motels, inns, tourist camps, tourist cabins, and other lodgings or
accommodations built or refurbished after June 30, 1993, that are
located in the largest city of the county. Gary. During each year, the
county treasurer shall transfer:
(1) seventy-five percent (75%) of the revenues under this
subsection to the department of public safety; and
(2) twenty-five percent (25%) of the revenues under this
subsection to the division of physical and economic development;
of the largest city of the county. Gary.
(i) The Lake County convention and visitor bureau shall assist the
county treasurer, as needed, with the calculation of the amounts that
must be deposited and transferred under this section.
SECTION 111. IC 6-9-33-8, AS AMENDED BY P.L.229-2011,
SECTION 98, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 8. (a) If a tax is imposed under section 3 of this
chapter, the county treasurer shall establish a supplemental coliseum
improvement fund. The county treasurer shall deposit in this fund all
amounts received from the tax imposed under this chapter. Money in
this fund:
(1) may be appropriated only to retire or advance refund bonds issued, loans obtained, or lease payments incurred under IC 36-1-10 (referred to in this chapter as "obligations") to remodel, expand, improve, or acquire an athletic and exhibition coliseum in existence before the effective date of an ordinance adopted under section 3 of this chapter; and
(2) shall be used to make transfers required by subsection (b).
(b) There is established a food and beverage tax fund, with a food and beverage tax reserve account, both to be administered by the capital improvement board of managers (IC 36-10-8). The money that is deposited in the supplemental coliseum improvement fund after December 31, 2009, and is not needed in a year to make payments on obligations for which a pledge of revenue under this chapter was made before January 1, 2009, shall be transferred to the capital improvement board. The county treasurer shall make the transfer before February 1 of the following year. The capital improvement board shall deposit the money it receives in the board's food and beverage tax fund reserve account. Money in the reserve account may not be withdrawn or transferred during the year it is received except to make transfers back to the county to make payments on obligations for which a pledge of revenue under this chapter was made before January 1, 2009. However, the capital improvement board may transfer:
(1) interest earned on money in the reserve account; and
(2) an amount equal to the balance that has been held in the reserve account for at least twelve (12) months;
to the board's
(c) Excess revenue transferred under subsection (b) to the capital improvement board of managers may be used to provide funding for:
(1) the construction of a capital improvement (as defined in IC 36-10-1-4);
(2) an economic development project as described in:
(A) IC 6-3.5-7-13.1(c)(1) or IC 6-3.5-7-13.1(c)(2)(A) through IC 6-3.5-7-13.1(c)(2)(I); and
(B) IC 6-3.5-7-13.1(c)(2)(K); or
(3) financing a capital improvement or an economic development project described in subdivision (1) or (2).
In carrying out this subsection, the capital improvement board may borrow against future tax revenue that will be collected under this chapter. In addition, the capital improvement board may use an amount not to exceed one hundred thousand dollars ($100,000) annually from the tax revenue collected under this chapter to pay expenses related to
investigating a potential capital improvement or economic
development project, including feasibility and preliminary engineering
studies related to such a capital improvement or economic development
project.
(d) Excess revenue transferred under subsection (b) to the capital
improvement board of managers may not be used to:
(1) provide funding for improvements initiated before January 1,
2009, that are located in the area bounded on the north by
Jefferson Boulevard, on the east by Harrison Street, on the south
by Breckenridge Street, and on the west by Ewing Street as those
public ways were located on January 1 2009, as part of the
Harrison Square project;
(2) provide for debt service or lease payments for a project for
which the obligations for the project were incurred before January
1, 2009; or
(3) pay operational expenses for any facilities of the municipality.
SECTION 112. IC 20-46-3-6, AS AMENDED BY
P.L.182-2009(ss), SECTION 347, IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2013]: Sec. 6. Subject to
IC 6-1.1-18.5-9.9 (before its repeal), the department of local
government finance may allow a school corporation to establish a levy.
The amount of the levy shall be determined each year and the levy may
not exceed the lesser of the following:
(1) The revenue derived from a tax rate of eight and thirty-three
hundredths cents ($0.0833) for each one hundred dollars ($100)
of assessed valuation within the school corporation.
(2) The revenue derived from a tax rate equal to the difference
between the maximum rate allowed for the school corporation's
capital projects fund under IC 20-46-6 minus the actual capital
projects fund rate that will be in effect for the school corporation
for a particular year.
SECTION 113. IC 20-46-4-6, AS AMENDED BY P.L.124-2011,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 6. (a) The levy imposed for an assessment
date before January 16, 2011, may not exceed the maximum
permissible levy permitted under this section as this section was
effective on January 1, 2011.
(b) Except as provided in subsection (c), the levy imposed for an
assessment date after January 15, 2011, may not exceed the amount
determined by multiplying:
(1) the school corporation's maximum permissible levy for the
fund for the previous year under this chapter, after eliminating the
effects of temporary excessive levy appeals and any other
temporary adjustments made to the levy for the calendar year
(regardless of whether the school corporation imposed the entire
amount of the maximum permissible levy in the immediately
preceding year); by
(2) the assessed value growth quotient determined under
IC 6-1.1-18.5-2.
(c) This subsection applies to a school corporation if the school
corporation's maximum permissible levy for the fund for calendar
year 2009 was at least twenty-four percent (24%) less than the
school corporation's maximum permissible levy for the fund for
calendar year 2008. For the purposes of determining the school
corporation's maximum permissible levy for the fund for calendar
year 2013, the amount determined under this subsection shall be
used under subsection (b)(1) as the school corporation's maximum
permissible levy for the fund for the previous year. The school
corporation shall be treated as having a maximum permissible levy
for the fund in calendar year 2012 that is equal to the maximum
permissible levy for the fund that the school corporation would
have had in calendar year 2012 if:
(1) the school corporation's maximum permissible levy is
recalculated for calendar year 2009 to eliminate any loss in
the school corporation's maximum permissible levy for the
fund; and
(2) the school corporation is treated as having levied the entire
amount of the school corporation's recalculated maximum
permissible levy for the fund in 2009, 2010, and 2011;
as determined by the department of local government finance. The
adjustment under this subsection is a permanent adjustment in the
school corporation's maximum permissible levy for the fund.
SECTION 114. IC 20-46-6-5, AS ADDED BY P.L.154-2006,
SECTION 69, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2013]: Sec. 5. Subject to IC 6-1.1-18-12 and
IC 6-1.1-18.5-9.9 ( before its repeal), to provide for the fund, the
governing body may, for each year in which a plan is in effect, impose
a property tax rate that does not exceed forty-one and sixty-seven
hundredths cents ($0.4167) on each one hundred dollars ($100) of
assessed valuation of the school corporation. The actual rate imposed
by the governing body must be advertised in the same manner as other
property tax rates.
SECTION 115. IC 36-1-8-11 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 11. (a) This section
does not apply to a county treasurer governed by IC 36-2-10-23.
(b) As used in this section, "credit card" means a:
(1) credit card;
(2) debit card;
(3) charge card; or
(4) stored value card.
(c) A payment to a political subdivision or a municipally owned
utility for any purpose may be made by any of the following financial
instruments that the fiscal body of the political subdivision or the board
of the municipally owned utility authorizes for use:
(1) Cash.
(2) Check.
(3) Bank draft.
(4) Money order.
(5) Bank card or credit card.
(6) Electronic funds transfer.
(7) Any other financial instrument authorized by the fiscal body.
(d) If there is a charge to the political subdivision or municipally
owned utility for the use of a financial instrument, the political
subdivision or municipally owned utility may collect a sum equal to the
amount of the charge from the person who uses the financial
instrument.
(e) If authorized by the fiscal body of the political subdivision or the
board of the municipally owned utility, the political subdivision or
municipally owned utility may accept payments under this section with
a bank card or credit card under the procedures set forth in this section.
However, the procedure authorized for a particular type of payment
must be uniformly applied to all payments of the same type.
(f) The political subdivision or municipally owned utility may
contract with a bank card or credit card vendor for acceptance of bank
cards or credit cards. However, if there is a vendor transaction
charge or discount fee, whether billed to the political subdivision
or municipally owned utility or charged directly to the political
subdivision's or municipally owned utility's account, the political
subdivision or municipally owned utility may collect from the
person using the card an official fee that may not exceed the
transaction charge or discount fee charged to the political
subdivision or municipally owned utility by bank or credit card
vendors. The fee is a permitted additional charge under
IC 24-4.5-3-202.
(g) The political subdivision or municipally owned utility may pay
any applicable bank card or credit card service charge associated with
the use of a bank card or credit card under this subsection.
(h) The authorization of the fiscal body of the political subdivision
is not required by the bureau of motor vehicles or the bureau of motor
vehicles commission to use electronic funds transfer or other financial
instruments to transfer funds to the political subdivision.
SECTION 116. IC 36-1-8-11.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 11.5. (a) As used in this
section, "electronic funds transfer" means any transfer of funds,
other than a transaction originated by check, draft, or similar
paper instrument, that is initiated through an electronic terminal,
telephone, or computer or magnetic tape for the purpose of
ordering, instructing, or authorizing a financial institution to debit
or credit an account.
(b) The fiscal body of a political subdivision or the board of a
municipally owned utility may adopt a resolution to authorize an
electronic funds transfer method of payment of claims. If a proper
body adopts a resolution under this subsection, the political
subdivision or municipally owned utility may pay money from its
funds by electronic funds transfer.
(c) A political subdivision or municipally owned utility that pays
a claim by electronic funds transfer shall comply with all other
requirements for the payment of claims by political subdivisions or
municipal utilities.
SECTION 117. IC 36-2-9-20, AS AMENDED BY P.L.177-2005,
SECTION 46, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 20. The county auditor shall:
(1) maintain an electronic data file of the information contained
on the tax duplicate for all:
(A) parcels; and
(B) personal property returns;
for each township in the county as of each assessment date;
(2) maintain the electronic data file in a form that formats the
information in the file with the standard data, field, and record
coding required and approved by:
(A) the legislative services agency; and
(B) the department of local government finance;
(3) transmit the data in the file with respect to the assessment date
of each year before March 1 16 of the next year to:
(A) the legislative services agency in an electronic format
under IC 5-14-6; and
(B) the department of local government finance;
in a manner that meets the data export and transmission requirements in a standard format, as prescribed by the office of technology established by IC 4-13.1-2-1 and approved by the legislative services agency; and
(4) resubmit the data in the form and manner required under this subsection, upon request of the legislative services agency or the department of local government finance, if data previously submitted under this subsection does not comply with the requirements of this subsection, as determined by the legislative services agency or the department of local government finance.
An electronic data file maintained for a particular assessment date may not be overwritten with data for a subsequent assessment date until a copy of an electronic data file that preserves the data for the particular assessment date is archived in the manner prescribed by the office of technology established by IC 4-13.1-2-1 and approved by the legislative services agency.
SECTION 118. IC 36-3-6-9, AS AMENDED BY P.L.182-2009(ss), SECTION 401, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 9. (a) Except as provided in subsection (d), the city-county legislative body shall review the proposed operating and maintenance budgets and tax levies and adopt final operating and maintenance budgets and tax levies for each of the following entities in the county:
(1) An airport authority operating under IC 8-22-3.
(2) A public library operating under IC 36-12.
(3) A capital improvement board of managers operating under IC 36-10.
(4) A public transportation corporation operating under IC 36-9-4.
(5) A health and hospital corporation established under IC 16-22-8.
(6) Any other taxing unit (as defined in IC 6-1.1-1-21) that is located in the county and has a governing body that is not comprised of a majority of officials who are elected to serve on the governing body.
Except as provided in subsection (c), the city-county legislative body may reduce or modify but not increase a proposed operating and maintenance budget or tax levy under this section.
(b) The board of each entity listed in subsection (a) shall, after adoption of its proposed budget and tax levies, submit them, along with detailed accounts, to the city clerk before
(c) The city-county legislative body or, when subsection (d) applies,
the fiscal body of an excluded city or town shall review the issuance of
bonds of an entity listed in subsection (a). Approval of the city-county
legislative body or, when subsection (d) applies, the fiscal body of an
excluded city or town is required for the issuance of bonds. The
city-county legislative body or the fiscal body of an excluded city or
town may not reduce or modify a budget or tax levy of an entity listed
in subsection (a) in a manner that would:
(1) limit or restrict the rights vested in the entity to fulfill the
terms of any agreement made with the holders of the entity's
bonds; or
(2) in any way impair the rights or remedies of the holders of the
entity's bonds.
(d) If the assessed valuation of a taxing unit is entirely contained
within an excluded city or town (as described in IC 36-3-1-7) that is
located in a county having a consolidated city, the governing body of
the taxing unit shall submit its proposed operating and maintenance
budget and tax levies to the city or town fiscal body for approval and
not the city-county legislative body. Except as provided in subsection
(c), the fiscal body of the excluded city or town may reduce or modify
but not increase a proposed operating and maintenance budget or tax
levy under this section.
SECTION 119. IC 36-7-10.1-3, AS AMENDED BY P.L.113-2010,
SECTION 130, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2012]: Sec. 3. (a) The legislative body of a
municipality or county may by ordinance require the owners of real
property located within the municipality or the unincorporated area of
the county to cut and remove weeds and other rank vegetation growing
on the property. As used in this chapter, "weeds and other rank
vegetation" does not include agricultural crops, such as hay and
pasture.
(b) An ordinance adopted under subsection (a) must specify the
following:
(1) The department of the municipality or county responsible for
the administration of the ordinance.
(2) The definitions of weeds and rank vegetation.
(3) The height at which weeds or rank vegetation becomes a
violation of the ordinance, specifying the appropriate heights for
various types of weeds and rank vegetation.
(4) The procedure for issuing notice to the owner of real property
of a violation of the ordinance, including any procedures for
issuing a continuous abatement notice under subsection (d).
(5) The procedure under which the municipality or county, or its
contractors, may enter real property to abate a violation of the
ordinance if the owner fails to abate the violation.
(6) The procedure for issuing a bill to the owner of real property
for the costs incurred by the municipality or county in abating the
violation, including administrative costs and removal costs. The
cost of sending notice under subsection (c) is an administrative
cost that may be billed to the owner under this subdivision.
(7) The procedure for appealing a notice of violation or a bill
issued under the ordinance.
(c) An ordinance adopted under subsection (a) must provide that a
notice sent to the property owner must be sent by certified mail, return
receipt requested, or an equivalent service permitted under IC 1-1-7-1
to:
(1) the owner of record of real property with a single owner; or
(2) at least one (1) of the owners of real property with multiple
owners;
at the last address of the owner for the property as indicated in the
records of the county auditor on the date of the notice.
(d) If an initial notice of the violation of an ordinance adopted
under this section was provided by certified mail or equivalent
service under subsection (c), a continuous abatement notice may be
posted at the property at the time of abatement instead of by
certified mail or equivalent service as required under subsection
(c). A continuous abatement notice serves as notice to the real
property owner that each subsequent violation during the same
year for which the initial notice of the violation was provided may
be abated by the municipality or county, or its contractors.
SECTION 120. IC 36-7-15.1-16, AS AMENDED BY P.L.146-2008,
SECTION 750, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2012]: Sec. 16. (a) For the purpose of raising
money to carry out this chapter or IC 36-7-15.3, the city-county
legislative body may levy each year a special tax upon all property in
the redevelopment district. The tax so levied each year shall be
certified to the fiscal officers of the city and the county before
September 2 November 1 of each year. The tax shall be estimated and
entered upon the tax duplicates by the county auditor, and shall be
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
accumulated and kept in a separate fund to be known as the
redevelopment district fund and shall be expended and applied only for
the purposes of this chapter or IC 36-7-15.3.
(c) The amount of the special tax levy shall be based on the budget of the department but may not exceed one and sixty-seven hundredths cents ($0.0167) on each one hundred dollars ($100) of taxable valuation in the redevelopment district, except as otherwise provided in this chapter.
(d) The budgets and tax levies under this chapter are subject to review and modification in the manner prescribed by IC 36-3-6.
SECTION 121. IC 36-7-31.3-10, AS AMENDED BY SEA 115-2012, SECTION 212, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 10. (a) A tax area must be established by resolution. A resolution establishing a tax area must provide for the allocation of covered taxes attributable to a taxable event or covered taxes earned in the tax area to the professional sports and convention development area fund established for the city or county. The allocation provision must apply to the entire tax area.
(1) The fund required by this subsection is the coliseum professional sports and convention development area fund. This fund shall be administered by the Allen County Memorial Coliseum board of trustees.
(2) The allocation each year must be as follows:
The resolution must provide the tax area terminates not later than December 31, 2027.
(b) In addition to subsection (a), all of the salary, wages, bonuses, and other compensation that are:
(1) paid during a taxable year to a professional athlete for professional athletic services;
(2) taxable in Indiana; and
(3) earned in the tax area;
shall be allocated to the tax area if the professional athlete is a member of a team that plays the majority of the professional athletic events that the team plays in Indiana in the tax area.
(c) For a tax area that is:
(1) not located in a county having a population of more than three hundred thousand (300,000) but less than four hundred thousand (400,000); and
(2) not located in a city having a population of more than one hundred thousand (100,000) but less than one hundred ten thousand (110,000);
the total amount of state revenue captured by the tax area may not exceed five dollars ($5) per resident of the city or county per year for twenty (20) consecutive years.
(d) For a tax area that is located in a city having a population of more than one hundred thousand (100,000) but less than one hundred ten thousand (110,000), the total amount of state revenue captured by the tax area may not exceed six dollars and fifty cents ($6.50) per resident of the city per year for twenty (20) consecutive years.
(e) The resolution establishing the tax area must designate the facility or proposed facility and the facility site for which the tax area is established.
(f) The department may adopt rules under IC 4-22-2 and guidelines to govern the allocation of covered taxes to a tax area.
SECTION 122. IC 36-8-15-19, AS AMENDED BY SEA 115-2012, SECTION 222, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 19. (a) This subsection applies to a county that has a population of more than one hundred eighty-five thousand (185,000) but less than two hundred fifty thousand (250,000). 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
(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 department of
local government finance 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 department of
local government finance 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 department of
local government finance, 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 department of local government finance 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 department of local government
finance, 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.
(g) A county that has adopted an ordinance under section 1(3) of
this chapter may not impose an ad valorem property tax levy on
property within the district to fund the operation or implementation of
the district.
SECTION 123. IC 36-9-4-42 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 42. (a) A municipality
or a public transportation corporation that expends money for the
establishment or maintenance of an urban mass transportation system
under this chapter may acquire the money for these expenditures:
(1) by issuing bonds under section 43 or 44 of this chapter;
(2) by borrowing money made available for such purposes by any
source;
(3) by accepting grants or contributions made available for such
purposes by any source;
(4) in the case of a municipality, by appropriation from the
general fund of the municipality, or from a special fund that the
municipal legislative body includes in the municipality's budget;
or
(5) in the case of a public transportation corporation, by levying
a tax under section 49 of this chapter or by recommending an
election to use revenue from the county option income taxes, as
provided in subsection (c).
(b) Money may be acquired under this section for the purpose of
exercising any of the powers granted by or incidental to this chapter,
including:
(1) studies under section 4, 9, or 11 of this chapter;
(2) grants in aid;
(3) the purchase of buses or real property by a municipality for
lease to an urban mass transportation system, including the
payment of any amount outstanding under a mortgage, contract of
sale, or other security device that may attach to the buses or real
property;
(4) the acquisition by a public transportation corporation of
property of an urban mass transportation system, including the
payment of any amount outstanding under a mortgage, contract of
sale, or other security device that may attach to the property;
(5) the operation of an urban mass transportation system by a
public transportation corporation, including the acquisition of
additional property for such a system; and
(6) the retirement of bonds issued and outstanding under this
chapter.
(c) This subsection applies only to a public transportation
corporation located in a county having a consolidated city. In order to
provide revenue to a public transportation corporation during a year,
the public transportation corporation board may recommend and the
county fiscal body may elect to provide revenue to the corporation from
part of the certified distribution, if any, that the county is to receive
during that same year under IC 6-3.5-6-17. To make the election, the
county fiscal body must adopt an ordinance before September
November 1 of the preceding year. The county fiscal body must
specify in the ordinance the amount of the certified distribution that is
to be used to provide revenue to the corporation. If such an ordinance
is adopted, the county fiscal body shall immediately send a copy of the
ordinance to the county auditor.
SECTION 124. IC 36-12-12-5, AS ADDED BY P.L.1-2005,
SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 5. (a) If the library board passes a resolution under
section 3 of this chapter and the appropriate fiscal body or bodies
approve the plan, the library board shall submit the resolution and the
plan to the department of local government finance. If the department
of local government finance determines that:
(1) the library board has correctly advertised the plan under
section 3(c) of this chapter;
(2) the plan was adopted by the library board and approved by the
appropriate fiscal body or bodies; and
(3) the plan conforms to the format prescribed by the department;
the department shall require notice of the submission to be given to the
taxpayers of the library district in accordance with IC 5-3-1-2(b).
publish notice of adoption in accordance with IC 5-3-1-2(i).
(b) Ten (10) or more taxpayers who will be affected by the adopted
plan may file a petition with the county auditor of a county in which the
library district is located not later than ten (10) days after the
publication of the notice of adoption required by subsection (a),
setting forth the taxpayers' objections to the proposed plan. The county
auditor shall immediately certify the petition to the department of local
government finance.
SECTION 125. [EFFECTIVE JULY 1, 2013] (a) The executive of
either of the following townships may, upon approval by the
township fiscal body, submit a petition to the department of local
government finance for an increase in the maximum permissible ad
valorem property tax levy under IC 36-8-13 (for township fire
protection and emergency services) for property taxes first due and
payable in 2013:
(1) Barkley Township in Jasper County.
(2) Union Township in Jasper County.
(b) The department of local government finance shall increase
the maximum permissible ad valorem property tax levy under
IC 36-8-13 for a township that submits a petition under this
SECTION by the lesser of:
(1) the amount of the increase requested in the petition; or
(2) the amount necessary to increase the township's maximum
permissible ad valorem property tax levy under IC 36-8-13
for property taxes first due and payable in 2013 to the amount
of the township's maximum permissible ad valorem property
tax levy under IC 36-8-13 that applied to taxes first due and
payable in 2003.
(c) A township's maximum permissible ad valorem property tax
levy under IC 36-8-13 for property taxes first due and payable in
2013, as adjusted under this SECTION, shall be used in the
determination of the township's maximum permissible ad valorem
property tax levy under IC 36-8-13 for property taxes first due and
payable in 2014 and thereafter.
(d) This SECTION expires January 1, 2015.
SECTION 126. [EFFECTIVE JANUARY 1, 2012
(RETROACTIVE)]: (a) IC 6-1.1-12-26.1, as added by this act,
applies to property taxes first due and payable after 2012. A
deduction statement filed before September 1, 2012, under
IC 6-1.1-12-27.1, as amended by this act, is considered timely filed
for purposes of obtaining the deduction under IC 6-1.1-12-26.1, as
added by this act, in 2012 for property taxes first due and payable
in 2013.
(b) This SECTION expires January 1, 2014.
SECTION 127. [EFFECTIVE JANUARY 1, 2013] (a) IC 6-2.3-4-7,
as added by this act, applies to taxable years beginning after
December 31, 2012.
(b) This SECTION expires January 1, 2015.
SECTION 128. [EFFECTIVE UPON PASSAGE] (a) This
SECTION applies to a fire protection district:
(1) that was initially established in 2011;
(2) whose maximum levy and cumulative fund rate were first
established and approved by the department of local
government finance in 2011;
(3) that properly and timely advertised its budget, rates, and
levies in 2011 for the 2012 calendar year;
(4) whose budget, rates, and levies were disallowed by the
department of local government finance in 2012 due to
confusion as to whether the county council that created the
fire protection district held a public hearing on the budget,
rates, and levies;
(5) whose 2012 budget, rates, and levies were nonetheless
timely considered in an open meeting of the county council,
and were timely reviewed and approved by the county
council; and
(6) that may experience a significant revenue shortfall in 2012
and 2013, requiring the district to seek funds in addition to
the amounts available to the district to provide essential fire
protection to district residents.
(b) A fire protection district described in this section may
borrow a specified amount of money if:
(1) the board of fire trustees of the district finds that:
(A) an emergency exists requiring the expenditure of
money not available to the fire district; and
(B) the emergency requiring the expenditure of money is
related to paying the operating expenses and obligations of
the district; and
(2) the fiscal body of the county approves the expenditure of
the money.
(c) A fire protection district shall comply with IC 36-8-11-17
with respect to a borrowing under this section.
(d) The county fiscal body shall levy property taxes in an
amount sufficient to cover payments due under the borrowing
authorized under this section.
(e) This SECTION expires December 31, 2014.
SECTION 129. [EFFECTIVE UPON PASSAGE] (a) During the
2012 legislative interim, the commission on state tax and financing
policy shall study the topic of whether the value of tax credits
under Section 42 of the Internal Revenue Code should be
considered in determining the assessed value of low income housing
tax credit property.
(b) Before November 1, 2012, the commission on state tax and
financing policy shall report to the legislative council regarding
any recommendations on the study topic described in subsection
(a).
(c) This SECTION expires January 1, 2013.
SECTION 130. [EFFECTIVE UPON PASSAGE] (a) During the
2012 and 2013 legislative interims, the commission on state tax and
financing policy (IC 2-5-3) shall study all income tax credits using
a schedule that provides for approximately half the credits to be
studied each year and for the credits to be studied in the order they
were enacted. The commission shall prepare a report that covers
each credit and that includes the following:
(1) A review of the original scope and purpose of the credit
and whether the scope or purpose has changed since the
credit's enactment.
(2) The economic parameters of the credit, including the
credit percentage and credit limits, and whether these
parameters have changed since the credit's enactment.
(3) A description of the taxpayers that qualify for the credit
and how effective the credit has been in assisting these
targeted taxpayers.
(4) The type of activities on which the credit is based and how
effective the credit has been in promoting these targeted
activities.
(5) The amount of the credits granted over time.
(6) A determination of the dollar amount of credits granted
but not taken that can be carried forward.
(7) A summary of audit findings for each credit and whether
there has been any misuse of the credit.
(8) Suggested changes in the law with regard to each credit,
including whether the credit should be retained or not.
(9) Any other issues related to these income tax credits, as
determined by the commission.
The commission on state tax and financing policy shall issue the
report in two (2) parts, in an electronic format under IC 5-14-6, to
the legislative council, not later than November 1, 2012, and
November 1, 2013, respectively.
(b) This SECTION expires January 1, 2014.
SECTION 131. [EFFECTIVE JULY 1, 2012] (a) The legislative
council shall assign to an interim or a statutory study committee
during the 2012 legislative interim the topic of more clearly
defining what is included in instructional spending by school
corporations and what is included in noninstructional spending by
school corporations for purposes of IC 20-42.5-3-5.
(b) The study committee assigned the topic described in
subsection (a) shall issue a final report, in an electronic format
under IC 5-14-6, to the legislative council containing the study
committee's findings and recommendations, including any
recommended legislation concerning the topic, not later than
November 1, 2012.
(c) This SECTION expires December 31, 2012.
SECTION 132. [EFFECTIVE UPON PASSAGE] (a) The
correction of the references to:
(1) Internal Revenue Code Section 62(a)(2)(D) that is being
made in IC 6-3-1-3.5; and
(2) Internal Revenue Code Section 871(k)(1)(C) that is being
made in IC 6-3-1-11;
apply to taxable years beginning after December 31, 2010,
notwithstanding the July 1, 2012, effective date of the SECTIONS
in this act that make the corrections.
(b) This SECTION expires January 1, 2013.
SECTION 133. [EFFECTIVE JULY 1, 2012] (a) The
administrative rule concerning proof by an individual that a
residence is the individual's principal place of residence for
purposes of the homestead standard deduction that is set forth at
50 IAC 24-3-2 is void. The publisher of the Indiana Administrative
Code shall remove 50 IAC 24-3-2 from the Indiana Administrative
Code.
(b) This SECTION expires July 1, 2014.
SECTION 134. [EFFECTIVE JULY 1, 2012] (a) In repealing
IC 6-3.5-7-4.3 by this act, the general assembly recognizes that
IC 6-3.5-7-4.3 was amended by SEA 115-2012, SECTION 49. The
general assembly intends to repeal that provision.
(b) This SECTION expires December 31, 2012.
SECTION 135. An emergency is declared for this act.
HEA 1072
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