Bill Text: IN HB1287 | 2011 | Regular Session | Amended
Bill Title: Local option tax distributions.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-02-07 - Referred to Committee on Ways and Means pursuant to House Rule 127 [HB1287 Detail]
Download: Indiana-2011-HB1287-Amended.html
Citations Affected: IC 6-3.5.
Synopsis: Local option tax distributions. Provides for a distribution of
the local income tax rate imposed for public safety to townships and
fire protection districts.
Effective: January 1, 2012.
January 12, 2011, read first time and referred to Committee on Local Government.
February 7, 2011, amended, reported _ Do Pass. Recommitted to Committee on Ways
and Means pursuant to Rule 127.
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A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
(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, the county auditor shall send a certified copy of the
ordinance to the department and the department of local government
finance by certified mail.
(e) A tax rate under this section is in addition to any other tax rates
imposed under this chapter and does not affect the purposes for which
other tax revenue under this chapter may be used.
(f) Except as provided in subsection (k), 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 township that
makes expenditures for a purpose described in subsection (a)(2),
(a)(3), or (a)(4), each fire protection district, and each municipality
in the county. The amount that shall be distributed to the county or a
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) section 15 of this chapter) of the county or
municipality for the calendar year; divided by
(B) the sum of the attributed allocation amounts of the county
and each municipality in the county for the calendar year.
The amount that shall be distributed to the county and each
township and fire protection district in the county is equal to the
amount determined under subdivision (1) minus the sum of the
amounts distributed to all municipalities in the county as
determined under subdivisions (1) and (2) multiplied by a fraction.
Subject to this subsection, the numerator of the fraction is the
attributed allocation amount (as defined in section 15 of this
chapter) of the county, township, or fire protection district for the
calendar year. Subject to this subsection, the denominator of the
fraction is the sum of the attributed allocation amounts of the
county and each township and fire protection district in the county
for the calendar year. However, the amount attributable to a
township in the numerator and denominator is limited to the
amount collected and used for a purpose described in subsection
(a)(2), (a)(3), or (a)(4), as determined by the county fiscal body. The
county fiscal body shall certify the amount attributable to a
township to the budget agency, the county auditor, and the
township when the department of local government finance
certifies the township's budget, rates, and levies for the year under
IC 6-1.1-17-16. 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,
township, fire protection district, or municipality under this subsection
must be deposited into a separate account or fund and may be
appropriated by the county, township, fire protection district, or
municipality only for public safety purposes.
(g) The department of local government finance may not require a
county, township, fire protection district, or municipality receiving
tax revenue under this section to reduce the county's, township's, fire
protection district's, or municipality's property tax levy for a
particular year on account of the county's, township's, fire protection
district's, or municipality's receipt of the tax revenue.
(h) The tax rate under this section and the tax revenue attributable
to the tax rate under this section shall not be considered for purposes
of computing:
(1) the maximum income tax rate that may be imposed in a county
under section 2 of this chapter or any other provision of this
chapter;
(2) the maximum permissible property tax levy under STEP
EIGHT of IC 6-1.1-18.5-3(b);
(3) the total county tax levy under IC 6-1.1-21-2(g)(3),
IC 6-1.1-21-2(g)(4), or IC 6-1.1-21-2(g)(5) (before the repeal of
IC 6-1.1-21); or
(4) 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.
(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, the county auditor shall send a certified
copy of the ordinance to the department and the department of local
government finance by certified mail.
(e) A tax rate under this section is in addition to any other tax rates
imposed under this chapter and does not affect the purposes for which
other tax revenue under this chapter may be used.
(f) Except as provided in subsection (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 township that
makes expenditures for a purpose described in subsection (a)(2),
(a)(3), or (a)(4), each fire protection district, and each municipality
in the county. The amount that shall be distributed to the county, or a
municipality is equal to the result of:
(1) the portion of the certified distribution that is attributable to a
tax rate under this section; multiplied by
(2) a fraction equal to:
(A) the total property taxes being collected in the county by
the county or municipality for the calendar year; divided by
(B) the sum of the total property taxes being collected in the
county by the county and each municipality in the county for
the calendar year.
The amount that shall be distributed to the county and each
township and fire protection district in the county is equal to the
amount determined under subdivision (1) minus the sum of the
amounts distributed to all municipalities in the county as
determined under subdivisions (1) and (2) multiplied by a fraction.
Subject to this subsection, the numerator of the fraction is the total
property taxes being collected in the county by the county,
township, or fire protection district for the calendar year. Subject
to this subsection, the denominator of the fraction is the sum of the
total property taxes being collected in the county by the county and
each township and fire protection district in the county for the
calendar year. However, the amount of property taxes to be used
in the numerator and denominator with respect to a township is
limited to the amount collected and used for a purpose described
in subsection (a)(2), (a)(3), or (a)(4), as determined by the county
fiscal body. The county fiscal body shall certify the amount to be
used with respect to a township to the budget agency, the county
auditor, and the township when the department of local
government finance certifies the township's budget, rates, and
levies for the year under IC 6-1.1-17-16. 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, township, fire protection district, or municipality under this
subsection must be deposited into a separate account or fund and may
be appropriated by the county, township, fire protection district, or
municipality only for public safety purposes.
(g) The department of local government finance may not require a
county, township, fire protection district, or municipality receiving
tax revenue under this section to reduce the county's, township's, fire
protection district's, or municipality's property tax levy for a
particular year on account of the county's , township's, fire protection
district's, or municipality's receipt of the tax revenue.
(h) The tax rate under this section and the tax revenue attributable
to the tax rate under this section shall not be considered for purposes
of computing:
(1) the maximum income tax rate that may be imposed in a county
under section 8 or 9 of this chapter or any other provision of this
chapter;
(2) the maximum permissible property tax levy under STEP
EIGHT of IC 6-1.1-18.5-3(b);
(3) the total county tax levy under IC 6-1.1-21-2(g)(3),
IC 6-1.1-21-2(g)(4), or IC 6-1.1-21-2(g)(5) (before the repeal of
IC 6-1.1-21); or
(4) 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.
