Bill Text: IN HB1334 | 2012 | Regular Session | Introduced
Bill Title: Local option tax for public safety.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2012-01-11 - First reading: referred to Committee on Ways and Means [HB1334 Detail]
Download: Indiana-2012-HB1334-Introduced.html
Citations Affected: IC 6-3.5-1.1-25; IC 6-3.5-6-31.
Synopsis: Local option tax for public safety. Eliminates the
requirement that a county council or county income tax council adopt
an additional local option income tax rate or tax rates for property tax
relief before adopting an additional local option income tax rate for
public safety.
Effective: Upon passage.
January 10, 2012, read first time and referred to Committee on Ways and Means.
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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 A 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) 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).
(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 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).
