Bill Text: IN HB1372 | 2011 | Regular Session | Amended
Bill Title: Public transportation funding.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2011-02-17 - Referred to Committee on Ways and Means pursuant to House Rule 127 [HB1372 Detail]
Download: Indiana-2011-HB1372-Amended.html
Citations Affected: IC 6-3.5; IC 36-9.
Synopsis: Public transportation funding. Authorizes funding for public
transportation authorities by means of: (1) the county adjusted gross
income tax; (2) the county option income tax; or (3) the county
economic development income tax. Provides authority to hold a
referendum on imposing a public transportation referendum income tax
in a city served by a public transportation corporation, a regional
transportation authority, or an urban mass transportation system.
Provides that the referendum may not be held until 2012.
Effective: July 1, 2011.
January 18, 2011, read first time and referred to Committee on Roads and Transportation.
February 17, 2011, amended, reported _ Do Pass. Recommitted to Committee on Ways
and Means.
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
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or
A BILL FOR AN ACT to amend the Indiana Code concerning
transportation.
(1) the allocation amount of the civil taxing unit for that calendar year; plus
(2) the current ad valorem property tax levy of any special taxing district, authority, board, or other entity formed to discharge governmental services or functions on behalf of or ordinarily attributable to the civil taxing unit; plus
(3) in the case of a county, an amount equal to the 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 or IC 6-3.5-6 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.
(b) The part of a county's certified distribution that is to be used as
certified shares shall be allocated only among the county's civil taxing
units. Each civil taxing unit of a county is entitled to receive a certified
share during a calendar year in an amount determined in STEP TWO
of the following formula:
STEP ONE: Divide:
(A) the attributed allocation amount of the civil taxing unit
during that calendar year; by
(B) the sum of the attributed allocation amounts of all the civil
taxing units of the county during that calendar year.
STEP TWO: Multiply the part of the county's certified
distribution that is to be used as certified shares by the STEP
ONE amount.
(c) The department of local government finance shall determine the
attributed levies of civil taxing units that are entitled to receive certified
shares during a calendar year. If the ad valorem property tax levy of
any special taxing district, authority, board, or other entity is attributed
to another civil taxing unit under subsection (a)(2), then the special
taxing district, authority, board, or other entity shall not be treated as
having an attributed allocation amount of its own. The department of
local government finance shall certify the attributed allocation amounts
to the appropriate county auditor. The county auditor shall then allocate
the certified shares among the civil taxing units of the auditor's county.
(d) Certified shares received by a civil taxing unit shall be treated
as additional revenue for the purpose of fixing its budget for the
calendar year during which the certified shares will be received. The
certified shares may be allocated to or appropriated for any purpose,
including:
(1) property tax relief;
(2) funding the operation of a public transportation entity as
provided in an election, if any, made by a county or city fiscal
body under IC 36-9-4-42; or
(3) a transfer of funds to another civil taxing unit whose levy was
attributed to the civil taxing unit in the determination of its
attributed allocation amount.
[EFFECTIVE JULY 1, 2011]: Sec. 18. (a) The revenue a county
auditor receives under this chapter shall be used to:
(1) replace the amount, if any, of property tax revenue lost due to
the allowance of an increased homestead credit within the county;
(2) fund the operation of a public communications system and
computer facilities district as provided in an election, if any, made
by the county fiscal body under IC 36-8-15-19(b);
(3) fund the operation of a public transportation corporation as
provided in an election, if any, made by the county fiscal body
under IC 36-9-4-42;
(4) make payments permitted under IC 36-7-14-25.5 or
IC 36-7-15.1-17.5;
(5) make payments permitted under subsection (i);
(6) make distributions of distributive shares to the civil taxing
units of a county; and
(7) make the distributions permitted under sections 27, 28, 29, 30,
31, 32, and 33 of this chapter.
(b) The county auditor shall retain from the payments of the county's
certified distribution, an amount equal to the revenue lost, if any, due
to the increase of the homestead credit within the county. This money
shall be distributed to the civil taxing units and school corporations of
the county as though they were property tax collections and in such a
manner that no civil taxing unit or school corporation shall suffer a net
revenue loss due to the allowance of an increased homestead credit.
(c) The county auditor shall retain:
(1) the amount, if any, specified by the county fiscal body for a
particular calendar year under subsection (i), IC 36-7-14-25.5,
IC 36-7-15.1-17.5, IC 36-8-15-19(b), and IC 36-9-4-42
IC 36-9-4-42(c) from the county's certified distribution for that
same calendar year; and
(2) the amount of an additional tax rate imposed under section 27,
28, 29, 30, 31, 32, or 33 of this chapter.
The county auditor shall distribute amounts retained under this
subsection to the county.
(d) All certified distribution revenues that are not retained and
distributed under subsections (b) and (c) shall be distributed to the civil
taxing units of the county as distributive shares.
(e) The amount of distributive shares that each civil taxing unit in
a county is entitled to receive during a month equals the product of the
following:
(1) The amount of revenue that is to be distributed as distributive
shares during that month; multiplied by
(2) A fraction. The numerator of the fraction equals the allocation amount for the civil taxing unit for the calendar year in which the month falls. The denominator of the fraction equals the sum of the allocation amounts of all the civil taxing units of the county for the calendar year in which the month falls.
(f) The department of local government finance shall provide each county auditor with the fractional amount of distributive shares that each civil taxing unit in the auditor's county is entitled to receive monthly under this section.
(g) Notwithstanding subsection (e), if a civil taxing unit of an adopting county does not impose a property tax levy that is first due and payable in a calendar year in which distributive shares are being distributed under this section, that civil taxing unit is entitled to receive a part of the revenue to be distributed as distributive shares under this section within the county. The fractional amount such a civil taxing unit is entitled to receive each month during that calendar year equals the product of the following:
(1) The amount to be distributed as distributive shares during that month; multiplied by
(2) A fraction. The numerator of the fraction equals the budget of that civil taxing unit for that calendar year. The denominator of the fraction equals the aggregate budgets of all civil taxing units of that county for that calendar year.
(h) If for a calendar year a civil taxing unit is allocated a part of a county's distributive shares by subsection (g), then the formula used in subsection (e) to determine all other civil taxing units' distributive shares shall be changed each month for that same year by reducing the amount to be distributed as distributive shares under subsection (e) by the amount of distributive shares allocated under subsection (g) for that same month. The department of local government finance shall make any adjustments required by this subsection and provide them to the appropriate county auditors.
(i) Notwithstanding any other law, a county fiscal body may pledge revenues received under this chapter (other than revenues attributable to a tax rate imposed under section 30, 31, or 32 of this chapter) to the payment of bonds or lease rentals to finance a qualified economic development tax project under IC 36-7-27 in that county or in any other county if the county fiscal body determines that the project will promote significant opportunities for the gainful employment or retention of employment of the county's residents.
JULY 1, 2011]: Sec. 19. (a) Except as provided in sections 18(e) and
18.5(b)(3) of this chapter, in determining the fractional share of
distributive shares the civil taxing units of a county are entitled to
receive under section 18 of this chapter 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.
(b) In determining the amount of distributive shares a civil taxing
unit is entitled to receive under section 18(g) of this chapter, the
department of local government finance shall consider only the
percentage of the civil taxing unit's budget that equals the ratio that the
total assessed valuation that lies within the civil taxing unit and the
county that has adopted the county option tax bears to the total assessed
valuation that lies within the civil taxing unit.
(c) The distributive shares to be allocated and distributed under this
chapter:
(1) shall be treated by each civil taxing unit as additional revenue
for the purpose of fixing the civil taxing unit's budget for the
budget year during which the distributive shares are to be
distributed to the civil taxing unit; and
(2) may be used for any lawful purpose of the civil taxing unit,
including funding the operation of a public transportation
entity as provided in an election, if any, made by a county or
city fiscal body under IC 36-9-4-42.
(d) In the case of a civil taxing unit that includes a consolidated city,
its fiscal body may distribute any revenue it receives under this chapter
to any governmental entity located in its county except an excluded
city, a township, or a school corporation.
(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, and 27 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 a county having a population of more than one hundred forty-five thousand (145,000) but less than one hundred forty-eight thousand (148,000), 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 a county having
a population of more than one hundred forty-five thousand
(145,000) but less than one hundred forty-eight thousand
(148,000) 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 a
county having a population of more than one hundred forty-five
thousand (145,000) but less than one hundred forty-eight
thousand (148,000), 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 a county having a population
of more than one hundred forty-five thousand (145,000) but less
than one hundred forty-eight thousand (148,000). 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 a county having a population
of more than four hundred thousand (400,000) but less than seven
hundred thousand (700,000). A 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:
(i) be adopted before September 1 of a year to apply to
property taxes first due and payable in the following year;
and
(ii) specify the amount of county economic development
income tax revenue that will be used to provide homestead
credits in the following year.
(B) A 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 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 a county:
(A) that has a population of more than one hundred ten
thousand (110,000) but less than one hundred fifteen thousand
(115,000); and
(B) in which:
(i) 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
(ii) 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 a county described in
subdivision (8). 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.
(10) By a county or city to fund the operation of a public
transportation entity as provided in an election, if any, made
by a county or city fiscal body under IC 36-9-4-42.
(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, a county, 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.
Chapter 9. Public Transportation Referendum Income Tax
Sec. 1. (a) This chapter applies to a city in which public transportation services are provided by any of the following:
(1) A regional transportation authority under IC 36-9-3.
(2) A public transportation corporation under IC 36-9-4.
(3) An urban mass transportation system.
(b) A city may not hold a referendum under this chapter in a calendar year ending before January 1, 2012.
Sec. 2. (a) Except as otherwise provided in this section, as used in this chapter, "adjusted gross income" has the meaning set forth in IC 6-3-1-3.5(a).
(b) In the case of a city taxpayer who is not a resident of a city that has imposed the public transportation referendum income tax, the term "adjusted gross income" includes only adjusted gross income derived from the taxpayer's principal place of business or employment.
Sec. 3. As used in this chapter, "city taxpayer" as it relates to a city for a year means any individual who:
(1) resides in that city on the date specified in section 22 of this chapter; or
(2) maintains a principal place of business or employment in that city on the date specified in section 22 of this chapter and
who does not on that same date reside in another city in which
the public transportation referendum income tax is in effect.
Sec. 4. As used in the chapter, "department" refers to the
department of state revenue.
Sec. 5. As used in this chapter, "public transportation
referendum income tax" refers to a tax imposed under section 15
of this chapter.
Sec. 6. (a) If the fiscal body of a city determines that the best
interests of the public will be served by meeting the city's public
transportation needs, the fiscal body of the city may adopt a
resolution to place a referendum under this chapter on the ballot.
(b) The fiscal body of the city shall certify a copy of the
resolution to the department of state revenue.
Sec. 7. A city fiscal body may not impose a public transportation
referendum income tax at a tax rate that exceeds three-tenths of
one percent (0.3%) of a city taxpayer's adjusted gross income.
Sec. 8. A public transportation referendum income tax under
this chapter may be put into effect only if a majority of the
individuals who vote in a referendum that is conducted in
accordance with this chapter approves the city's imposition of the
tax for a particular calendar year.
Sec. 9. The question to be submitted to the voters in a
referendum under this chapter must read as follows:
"For the __ (insert number) calendar year or years
immediately following the holding of this referendum, shall
the ______________(insert name of the city) impose a public
transportation referendum income tax at a tax rate that does
not exceed ___________ (insert amount of the proposed
maximum tax rate) of a city taxpayer's adjusted gross
income?".
Sec. 10. If a city fiscal body adopts a resolution under section 6
of this chapter, the city fiscal body must under IC 3-10-9-3 certify
the question to be voted on at the referendum to the county election
board of each county in which any part of the city is located.
Sec. 11. Each county clerk, upon receiving the question certified
by the city fiscal body under this chapter, shall call a meeting of the
county election board to make arrangements for the referendum.
Sec. 12. (a) A referendum under this chapter shall be held in the
next primary election, general election, or municipal election in
which all the registered voters who are residents of the city are
entitled to vote after certification of the question under
IC 3-10-9-3. The certification of the question must occur not later
than noon:
(1) sixty (60) days before a primary election if the question is
to be placed on the primary or municipal primary election
ballot; or
(2) August 1 if the question is to be placed on the general or
municipal election ballot.
However, if a primary election, general election, or municipal
election will not be held during the first year in which the public
question is eligible to be placed on the ballot under this chapter and
if the city requests the public question to be placed on the ballot at
a special election, the public question shall be placed on the ballot
at a special election to be held on the first Tuesday after the first
Monday in May or November of the year. The certification must
occur not later than noon sixty (60) days before a special election
to be held in May (if the special election is to be held in May) or
noon on August 1 (if the special election is to be held in November).
(b) If the referendum is not conducted at a primary election,
general election, or municipal election, the city in which the
referendum is to be held shall pay all the costs of holding the
referendum.
Sec. 13. Each county election board shall cause:
(1) a question certified to the circuit court clerk by the city
fiscal body under section 10 of this chapter to be placed on the
ballot in the form prescribed by IC 3-10-9-4; and
(2) an adequate supply of ballots and voting equipment to be
delivered to the precinct election board of each precinct in
which the referendum is to be held.
Sec. 14. The individuals entitled to vote in a referendum under
this chapter are all the registered voters residing in the city
requesting the referendum.
Sec. 15. (a) Each precinct election board shall count the
affirmative votes and the negative votes cast in a referendum under
this chapter and shall certify those two (2) totals to the county
election board of each county in which the referendum is held. The
circuit court clerk of each county shall, immediately after the votes
cast in the referendum have been counted, certify the results of the
referendum to the city fiscal body. Upon receiving the certification
of all the votes cast in the referendum, the city fiscal body shall
promptly certify the result of the referendum to the department of
local government finance. If a majority of the individuals voting in
the referendum vote "yes" on the referendum question:
(1) the city fiscal body is authorized to impose, for the
calendar year that next follows the calendar year in which the
referendum is held, an income tax not greater than the
amount approved in the referendum; and
(2) the income tax may be imposed by the city for the number
of calendar years approved by the voters in the referendum.
(b) If a majority of the persons voting in the referendum do not
vote "yes" on the referendum question:
(1) the city may not impose a public transportation
referendum income tax; and
(2) another referendum under this chapter may not be held
for one (1) year after the date of the referendum.
Sec. 16. A referendum income tax may be used to pay any
operating expense incurred by an entity providing public
transportation services in the city imposing the tax.
Sec. 17. If the public transportation referendum income tax is
not in effect during a city taxpayer's entire taxable year, the
amount of public transportation referendum income tax that the
city taxpayer owes for that taxable year equals the product of:
(1) the amount of public transportation referendum income
tax the city taxpayer would owe if the tax had been imposed
during the city taxpayer's entire taxable year; multiplied by
(2) a fraction. The numerator of the fraction equals the
number of days during the city taxpayer's taxable year during
which the public transportation referendum income tax was
in effect. The denominator of the fraction equals three
hundred sixty-five (365).
Sec. 18. (a) If for a taxable year a city taxpayer is (or a city
taxpayer and the city taxpayer's spouse who file a joint return are)
allowed a credit for the elderly or individuals with a total disability
under Section 22 of the Internal Revenue Code, the city taxpayer
is (or the city taxpayer and the city taxpayer's spouse are) entitled
to a credit against the city taxpayer's (or the city taxpayer's and
the city taxpayer's spouse's) public transportation referendum
income tax liability for that same taxable year. The amount of the
credit equals the lesser of:
(1) the product of:
(A) the city taxpayer's (or the city taxpayer's and the city
taxpayer's spouse's) credit for the elderly or individuals
with a total disability for that same taxable year;
multiplied by
(B) a fraction. The numerator of the fraction is the public
transportation referendum income tax rate imposed
against the city taxpayer (or against the city taxpayer and
the city taxpayer's spouse). The denominator of the
fraction is fifteen-hundredths (0.15); or
(2) the amount of public transportation referendum income
tax imposed on the city taxpayer (or the city taxpayer and the
city taxpayer's spouse).
(b) If a city taxpayer and the city taxpayer's spouse file a joint
return and are subject to different public transportation
referendum income tax rates for the same taxable year, they shall
compute the credit under this section by using the formula
provided by subsection (a), except that they shall use the average
of the two (2) public transportation referendum income tax rates
imposed against them as the numerator referred to in subsection
(a)(1)(B).
Sec. 19. (a) A special account within the state general fund shall
be established for each city adopting the public transportation
referendum income tax. Any revenue derived from the imposition
of the public transportation referendum income tax by a city shall
be credited to that city's account in the state general fund.
(b) Any income earned on money credited to an account under
subsection (a) becomes a part of that account.
(c) Any revenue credited to an account established under
subsection (a) at the end of a fiscal year may not be credited to any
other account in the state general fund.
Sec. 20. (a) Revenue derived from the imposition of the public
transportation income tax shall, in the manner prescribed by this
section, be distributed to the city that imposed it.
(b) Subject to subsection (c), before August 2 of each calendar
year, the budget agency shall certify to the fiscal office of each
adopting city the sum of the amount of public transportation
referendum income tax revenue that the budget agency determines
has been:
(1) received from that city 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 public transportation referendum
income tax made in the state fiscal year plus the amount of interest
in the city's account established under section 19 of this chapter
that has been accrued and has not been included in a certification
made in a preceding year. The amount certified is the city's
certified distribution, which shall be distributed on the dates
specified in section 21 of this chapter for the following calendar
year.
(c) The amount certified under subsection (b) shall be adjusted
under subsections (d) and (e). The budget agency shall provide the
city fiscal body 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 section 23 of this chapter.
(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 city 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.
Sec. 21. (a) On May 1 of each calendar year, one-half (1/2) of
each city's certified distribution under section 20 of this chapter for
the calendar year shall be distributed from the city's account
established under section 19 of this chapter to the city treasurer.
The other one-half (1/2) shall be distributed to the city on
November 1 of that calendar year.
(b) All distributions from an account established under section
19 of this chapter shall be made by warrants issued by the auditor
of state to the treasurer of state ordering the appropriate
payments.
Sec. 22. (a) For purposes of this chapter, an individual shall be
treated as a resident of the city in which the individual:
(1) maintains a home if the individual maintains only one (1)
home in Indiana;
(2) if subdivision (1) does not apply, is registered to vote;
(3) if subdivision (1) or (2) does not apply, registers the
individual's personal automobile; or
(4) if subdivision (1), (2), or (3) does not apply, spends the
majority of the individual's time in Indiana during the taxable
year in question.
(b) The residence or principal place of business or employment
of an individual is to be determined on January 1 of the calendar
year in which the individual's taxable year commences. If an
individual changes location of residence or principal place of
employment or business to another city in Indiana during a
calendar year, the individual's liability for public transportation
referendum income tax is not affected.
Sec. 23. (a) If the budget agency determines that a sufficient
balance exists in a city account established under section 19 of this
chapter that exceeds the amount necessary, when added to other
money that will be deposited in the account after the date of the
determination, to make certified distributions to the city in the
ensuing year, the budget agency shall make a supplemental
distribution to a city from the city's special account.
(b) A supplemental distribution described in subsection (a) must
be:
(1) made in January of the ensuing calendar year; and
(2) allocated in the same manner as certified distributions for
deposit in a civil unit's rainy day fund established under
IC 36-1-8-5.1.
(c) A determination under this section must be made before
October 2.
Sec. 24. (a) Except as otherwise provided in this chapter, all
provisions of the adjusted gross income tax law (IC 6-3)
concerning:
(1) definitions;
(2) declarations of estimated tax;
(3) filing of returns;
(4) remittances;
(5) incorporation of the provisions of the Internal Revenue
Code;
(6) penalties and interest;
(7) exclusion of military pay credits for withholding; and
(8) exemptions and deductions;
apply to the imposition, collection, and administration of the tax imposed by this chapter.
(b) IC 6-3-1-3.5(a)(6), IC 6-3-3-3, IC 6-3-3-5, and IC 6-3-5-1 do not apply to the tax imposed by this chapter.
(c) Notwithstanding subsections (a) and (b), each employer shall report to the department the amount of withholdings attributable to each city imposing a tax under this chapter. This report shall be submitted to the department:
(1) each time the employer remits to the department the tax that is withheld; and
(2) annually along with the employer's annual withholding report.
Sec. 25. The economic development income tax is a listed tax and an income tax for the purposes of IC 6-8.1.
(1) exercise the executive and legislative powers of the authority as provided by this chapter;
(2) as a municipal corporation, sue and be sued in its name;
(3) sell, lease, or otherwise contract for advertising in or on the facilities of the authority;
(4) protect all property owned or managed by the board;
(5) adopt an annual budget;
(6) incur indebtedness in the name of the authority in accordance with this chapter;
(7) acquire real, personal, or mixed property by deed, purchase, or lease and dispose of it for use in connection with or for administrative purposes;
(8) receive gifts, donations, bequests, and public trusts, agree to conditions and terms accompanying them, and bind the authority to carry them out;
(9) receive federal or state aid and administer that aid;
(10) erect the buildings or structures needed to administer and carry out this chapter;
(11) determine matters of policy regarding internal organization and operating procedures not specifically provided for by law;
(12) adopt a schedule of reasonable charges and rents, and collect them from all users of facilities and services within the jurisdiction of the authority;
(13) purchase supplies, materials, and equipment to carry out the duties and functions of the board, in accordance with procedures
adopted by the board and under applicable statutes;
(14) employ the personnel necessary to carry out the duties,
functions, and powers of the board;
(15) sell any surplus or unneeded real and personal property in
accordance with procedures adopted by the board and under
applicable statutes;
(16) adopt rules governing the duties of its officers, employees,
and personnel, and the internal management of the affairs of the
board;
(17) fix the compensation of the various officers and employees
of the authority, within the limitations of the total personal
services budget;
(18) purchase public transportation services from public or
private transportation agencies upon the terms and conditions set
forth in purchase of service agreements between the authority and
the transportation agencies;
(19) acquire, establish, construct, improve, equip, operate,
maintain, subsidize, and regulate public transportation systems
within the jurisdiction of the authority;
(20) after receiving a request for assistance from a public
transportation system, enter into agreements with government
agencies, political subdivisions, private transportation companies,
railroads, and other persons providing for:
(A) construction, operation, and use by the other party of any
public transportation system and equipment held or later
acquired by the authority; and
(B) acquisition of any public transportation system and
equipment of another party if all or part of the operations of
that party take place within the jurisdiction of the authority;
(21) rent or lease any real property, including air rights above real
property owned or leased by a transportation system, for
transportation or other purposes, with the revenues from those
rentals to accrue to the authority and to be used exclusively for the
purposes of this chapter;
(22) negotiate and execute contracts of sale, purchase, or lease, or
contracts for personal services, materials, supplies, equipment, or
passenger transportation services;
(23) establish at or near its terminals and stations the off-street
parking facilities and access roads that are necessary and
desirable, and charge fees for or allow free use of those facilities;
(24) enter into agreements with other persons for the purpose of
participating in transportation planning activities;
(25) administer any rail services or other use of rail rights-of-way that may be the responsibility of state or local government under the Federal Regional Rail Reorganization Act of 1973, as amended (45 U.S.C. sections 701-794);
(26) determine the level and kind of public transportation services that should be provided by the authority;
(27) accept revenue distributed under IC 36-9-4-42(d); and
(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 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.
(d) This subsection does not apply to a county having a
consolidated city. In order to provide revenue to a public
transportation entity during a year, the governing body of the
public transportation entity may recommend and the county or
city fiscal body may elect to provide revenue to the entity from part
of the distributive shares of the county option income tax, if any,
that the county or city is to receive during that same year under
IC 6-3.5-1.1-15, IC 6-3.5-6-19, or IC 6-3.5-7-13.1. To make the
election, the county or city fiscal body must adopt an ordinance
before September 1 of the preceding year. The county or city fiscal
body must specify in the ordinance the amount of the distributive
share that is to be used to provide revenue to the public
transportation entity. If an ordinance is adopted under this
subsection, the county or city fiscal body shall immediately send a
copy of the ordinance to the county auditor. The county auditor
shall distribute the amount of the election to the public
transportation entity on the same schedule that the county auditor
distributes distributive shares to the civil taxing units of the county.
(f) As used in this section, "public transportation entity" means
one (1) or more of the following:
(1) A public transportation corporation.
(2) A regional transportation authority.
(3) An urban mass transportation system.
