Bill Text: IN SB0544 | 2013 | Regular Session | Enrolled
Bill Title: State and local tax administration.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2013-05-13 - Public Law 261 [SB0544 Detail]
Download: Indiana-2013-SB0544-Enrolled.html
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
AN ACT to amend the Indiana Code concerning taxation.
Be it enacted by the General Assembly of the State of Indiana:
(b) Taxpayers operating in the global commerce center shall report annually, in the manner and in the form prescribed by the department, information that the department determines necessary to calculate the income tax incremental amount and the gross retail incremental amount.
(c) A taxpayer operating in the global commerce center that files a consolidated tax return with the department also shall file annually an informational return with the department for each business location of the taxpayer within the global commerce center.
(d) If a taxpayer fails to report the information required by this section or file an informational return required by this section, the department shall use the best information available in calculating
the income tax incremental amount and the gross retail
incremental amount.
SECTION 2. IC 6-3.5-1.1-1.5, AS ADDED BY P.L.113-2010,
SECTION 61, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: 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,
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 September 1 of the current
year takes effect on October 1 of the current year.
(2) An ordinance adopted after September 30 and before October
16 August 31 and before November 1 of the current year takes
effect November 1 on January 1 of the current following 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) (c) Notwithstanding any other provision of this chapter, 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 applies to
property taxes first due and payable in the year immediately following
the year in which the ordinance is adopted.
(d) If the commissioner of the department determines that an
ordinance described in subsection (b) was not adopted according
to the requirements of this article or is otherwise not in compliance
with this article:
(1) the commissioner shall:
(A) notify the county auditor that the ordinance was not
adopted according to the requirements of this article or is
not in compliance with this article; and
(B) specify the corrective action that must be taken for the
ordinance to be adopted according to the requirements of
this article and to be in compliance with this article; and
(2) the ordinance may not take effect until the corrective
action is taken.
SECTION 3. IC 6-3.5-1.1-2, AS AMENDED BY P.L.137-2012,
SECTION 64, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: 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, 2.7, 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,
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 4. IC 6-3.5-1.1-3, AS AMENDED BY P.L.137-2012,
SECTION 66, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: 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,
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 5. IC 6-3.5-1.1-3.1, AS AMENDED BY P.L.137-2012,
SECTION 67, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: 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,
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 6. IC 6-3.5-1.1-4, AS AMENDED BY P.L.137-2012,
SECTION 68, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: 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,
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 7. IC 6-3.5-1.1-9, AS AMENDED BY P.L.137-2012,
SECTION 69, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: 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
provide to the county auditor of each adopting county an estimate
of the amount determined under subsection (a) that will be
distributed to the county, based on known tax rates. Not later than
thirty (30) days after receiving the estimate of the certified
distribution, the county auditor shall notify each taxing unit of the
estimated amount of property tax replacement credits, certified
shares, and other revenue that will be distributed to the taxing unit
under this chapter during the ensuing calendar year. Before
October 1 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).
Not later than thirty (30) days after receiving the notice of the
amount of the certified distribution, the county auditor shall notify
each taxing unit of the amount of property tax replacement credits,
certified shares, and other revenue that will be distributed to the
taxing unit under this chapter during the ensuing calendar year.
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 6-3.5-1.1-21.1.
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 before October 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) 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 September 30 of the calendar year. The
adjustment shall reflect any other adjustment required under
subsections (c), (d), (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 (b) and
reflects the changes made in the adjustment.
(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.
(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).
(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.
(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.
(j) The estimates under subsections (h) and (i) 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 8. IC 6-3.5-1.1-21.1, AS AMENDED BY P.L.229-2011, SECTION 89, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 21.1. (a) If the budget agency determines that the balance in a county trust account exceeds
(b) A supplemental distribution described in subsection (a) must be:
(1) made in January of the ensuing calendar year; and
(2) allocated and, subject to subsection (d), used in the same manner as certified distributions. However, the part of a supplemental distribution that is attributable to an additional rate authorized under this chapter:
(A) shall be used for the purpose specified in the statute authorizing the additional rate; and
(B) is not required to be deposited in the unit's rainy day fund.
The amount of the supplemental distribution is equal to the amount by which the balance in the county trust account exceeds
(c) A determination under this section must be made before November 2.
(d) This subsection applies to that part of a distribution made under this section that is allocated and available for use in the same manner as certified shares. The civil taxing unit receiving the money shall deposit the money in the civil taxing unit's rainy day fund established under IC 36-1-8-5.1.
(e) Any income earned on money held in a trust account established for a county under this chapter shall be deposited in that trust account.
SECTION 9. IC 6-3.5-1.1-24, AS AMENDED BY P.L.137-2012, SECTION 71, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 24. (a) In a county in which the county adjusted gross income tax is in effect, the county 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 adjusted gross income
tax nor the county option income tax is in effect, the county council
may adopt an ordinance to impose a tax rate under this section.
(c) 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 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 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 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 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(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 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 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 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 10. IC 6-3.5-1.1-25, AS AMENDED BY P.L.132-2012,
SECTION 3, AND AS AMENDED BY P.L.137-2012, SECTION 72,
IS CORRECTED AND AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2013]: 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 (before its repeal on July 1, 2012)), or the statewide
911 system (as defined in IC 36-8-16.7-22).
(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 11. IC 6-3.5-1.1-26, AS AMENDED BY P.L.137-2012,
SECTION 73, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: 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 12. IC 6-3.5-6-1.5, AS AMENDED BY SEA 85-2013,
SECTION 24, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: 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,
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 September 1 of the current
year takes effect on October 1 of the current year.
(2) An ordinance adopted after September 30 and before October
16 August 31 and before November 1 of the current year takes
effect November 1 on January 1 of the current following year.
(d) If the commissioner of the department determines that an ordinance described in subsection (b) was not adopted according to the requirements of this article or is otherwise not in compliance with this article:
(1) the commissioner shall:
(A) notify the county auditor that the ordinance was not adopted according to the requirements of this article or is not in compliance with this article; and
(B) specify the corrective action that must be taken for the ordinance to be adopted according to the requirements of this article and to be in compliance with this article; and
(2) the ordinance may not take effect until the corrective action is taken.
SECTION 13. IC 6-3.5-6-8, AS AMENDED BY P.L.137-2012, SECTION 77, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: 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, 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 14. IC 6-3.5-6-9, AS AMENDED BY P.L.137-2012,
SECTION 78, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 9. (a) If on 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, 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 15. IC 6-3.5-6-11, AS AMENDED BY P.L.137-2012,
SECTION 79, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: 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, 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 16. IC 6-3.5-6-12, AS AMENDED BY P.L.137-2012,
SECTION 80, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: 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, 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 17. IC 6-3.5-6-12.5, AS AMENDED BY P.L.137-2012,
SECTION 81, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: 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 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 18. IC 6-3.5-6-17, AS AMENDED BY P.L.137-2012,
SECTION 82, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: 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
provide to the county auditor of each adopting county an estimate
of the amount determined under subsection (a) that will be
distributed to the county, based on known tax rates. Not later than
thirty (30) days after receiving the estimate of the certified
distribution, the county auditor shall notify each taxing unit of the
estimated amount of distributive shares and other revenue that will
be distributed to the taxing unit under this chapter during the
ensuing calendar year. Before October 1 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). Not later than thirty
(30) days after receiving the notice of the amount of the certified
distribution, the county auditor shall notify each taxing unit of the
amount of distributive shares and other revenue that will be
distributed to the taxing unit under this chapter during the ensuing
calendar year. 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 before October 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 September 30 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 19. IC 6-3.5-6-17.3, AS AMENDED BY P.L.229-2011,
SECTION 91, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 17.3. (a) If the budget agency determines that the
balance in a county trust account exceeds one hundred fifty percent
(150%) (50%) of the certified distributions to be made to the county
in the ensuing year, the budget agency shall make a supplemental
distribution to the county from the county'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. However, the part of a supplemental distribution
that is attributable to an additional rate authorized under this
chapter:
(A) shall be used for the purpose specified in the statute
authorizing the additional rate; and
(B) is not required to be deposited in the unit's rainy day fund.
The amount of the supplemental distribution is equal to the amount by
which the balance in the county trust account exceeds one hundred
fifty percent (150%) (50%) of the certified distributions to be made to
the county in the ensuing year.
(c) A determination under this section must be made before October
2.
(d) Any income earned on money held in a trust account
established for a county under this chapter shall be deposited in
that trust account.
SECTION 20. IC 6-3.5-6-28, AS AMENDED BY P.L.137-2012,
SECTION 83, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: 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. 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
(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 21. IC 6-3.5-6-29, AS AMENDED BY P.L.137-2012, SECTION 84, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: 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. 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
(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 22. IC 6-3.5-6-30, AS AMENDED BY P.L.137-2012,
SECTION 85, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: 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 23. IC 6-3.5-6-31, AS AMENDED BY P.L.132-2012,
SECTION 4, AND AS AMENDED BY P.L.137-2012, SECTION 86,
IS CORRECTED AND AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2013]: 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 (before its repeal on July 1, 2012)), or the statewide
911 system (as defined in IC 36-8-16.7-22).
(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
(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 24. IC 6-3.5-6-32, AS AMENDED BY P.L.137-2012,
SECTION 87, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: 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 25. IC 6-3.5-6-33, AS AMENDED BY P.L.137-2012,
SECTION 88, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: 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. 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 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 26. IC 6-3.5-7-4.9, AS ADDED BY P.L.113-2010,
SECTION 66, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 4.9. (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,
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
(2) An ordinance adopted after
(d) If the commissioner of the department determines that an ordinance described in subsection (b) was not adopted according to the requirements of this article or is otherwise not in compliance with this article:
(1) the commissioner shall:
(A) notify the county auditor that the ordinance was not adopted according to the requirements of this article or is not in compliance with this article; and
(B) specify the corrective action that must be taken for the ordinance to be adopted according to the requirements of this article and to be in compliance with this article; and
(2) the ordinance may not take effect until the corrective action is taken.
SECTION 27. IC 6-3.5-7-5, AS AMENDED BY P.L.137-2012, SECTION 94, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: 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 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 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 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 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 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
(g) For Jackson County, except as provided in subsection (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 thirty-five hundredths percent (1.35%) if the county has imposed the county adjusted gross income tax at a rate of one and one-tenth percent (1.1%) under IC 6-3.5-1.1-2.5.
(h) For Pulaski County, except as provided in subsection (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 fifty-five hundredths percent (1.55%).
(i) For Wayne County, except as provided in subsection (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%).
(j) This subsection applies to Randolph County. Except as provided in subsection (o), in addition to the rates permitted under subsection (b):
(1) the county economic development income tax may be imposed at a rate of twenty-five hundredths percent (0.25%); and
(2) the sum of the county economic development income tax rate and the county adjusted gross income tax rate that are in effect on January 1 of a year may not exceed one and five-tenths percent (1.5%);
if the county council makes a determination to impose rates under this subsection and section 22.5 of this chapter.
(k) For Daviess County, except as provided in subsection (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%).
(l) For:
(1) Elkhart County; or
(2) Marshall County;
except as provided in subsection (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%).
(m) For Union County, except as provided in subsection (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%).
(n) This subsection applies to Knox County. Except as provided in subsection (o), in addition to the rates permitted under subsection (b):
(1) the county economic development income tax may be imposed at a rate of twenty-five hundredths percent (0.25%); and
(2) the sum of the county economic development income tax rate and:
(A) the county adjusted gross income tax rate that are in effect on January 1 of a year may not exceed one and five-tenths percent (1.5%); or
(B) the county option income tax rate that are in effect on January 1 of a year may not exceed one and twenty-five hundredths percent (1.25%);
if the county council makes a determination to impose rates under this subsection and section 24 of this chapter.
(o) In addition:
(1) the county economic development income tax may be imposed at a rate that exceeds by not more than twenty-five hundredths percent (0.25%) the maximum rate that would otherwise apply under this section; and
(2) the:
(A) county economic development income tax; and
(B) county option income tax or county adjusted gross income tax;
may be imposed at combined rates that exceed by not more than twenty-five hundredths percent (0.25%) the maximum combined rates that would otherwise apply under this section.
However, the additional rate imposed under this subsection may not exceed the amount necessary to mitigate the increased ad valorem property taxes on homesteads (as defined in IC 6-1.1-20.9-1 (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.
(p) If the county economic development income tax is imposed as
authorized under subsection (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 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.
(q) This subsection applies only to a county described in section 27
of this chapter. Except as provided in subsection (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.
(r) Except as provided in subsection (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.
(s) This subsection applies to Howard County. Except as provided
in subsection (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%).
(t) This subsection applies to Scott County. Except as provided in
subsection (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) This subsection applies to Jasper County. Except as provided in
subsection (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%).
(v) An additional county economic development income tax rate
imposed under section 28 of this chapter may not be considered in
calculating any limit under this section on the sum of:
(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.
(w) The income tax rate limits imposed by subsection (c) or (x) or
any other provision of this chapter do not apply to:
(1) a county adjusted gross income tax rate imposed under
IC 6-3.5-1.1-24, IC 6-3.5-1.1-25, or IC 6-3.5-1.1-26; or
(2) a county option income tax rate imposed under IC 6-3.5-6-30,
IC 6-3.5-6-31, or IC 6-3.5-6-32.
For purposes of computing the maximum combined income tax rate
under subsection (c) or (x) or any other provision of this chapter that
may be imposed in a county under IC 6-3.5-1.1, IC 6-3.5-6, and this
chapter, a county's county adjusted gross income tax rate or county
option income tax rate for a particular year does not include the county
adjusted gross income tax rate imposed under IC 6-3.5-1.1-24,
IC 6-3.5-1.1-25, or IC 6-3.5-1.1-26 or the county option income tax rate
imposed under IC 6-3.5-6-30, IC 6-3.5-6-31, or IC 6-3.5-6-32.
(x) This subsection applies to Monroe County. Except as provided
in subsection (o), if an ordinance is adopted under IC 6-3.5-6-33, the
sum of the county economic development income tax rate and the
county option income tax rate that are in effect on January 1 of a year
may not exceed one and twenty-five hundredths percent (1.25%).
(y) This subsection applies to Perry County. Except as provided in
subsection (o), if an ordinance is adopted under section 27.5 of this
chapter, the county economic development income tax rate plus the
county option income tax rate that is in effect on January 1 of a year
may not exceed one and seventy-five hundredths percent (1.75%).
(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 28. IC 6-3.5-7-6, AS AMENDED BY P.L.137-2012,
SECTION 95, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: 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) 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,
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 29. IC 6-3.5-7-7, AS AMENDED BY P.L.137-2012,
SECTION 96, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: 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,
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 30. IC 6-3.5-7-11, AS AMENDED BY P.L.137-2012,
SECTION 97, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: 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
provide to the county auditor of each adopting county an estimate
of the amount determined under subsection (a) that will be
distributed to the county, based on known tax rates. Not later than
thirty (30) days after receiving the estimate of the certified
distribution, the county auditor shall notify each taxing unit
entitled to receive a distribution under this chapter of the
estimated amount of the distribution and other revenue that will be
distributed to the taxing unit under this chapter during the ensuing
calendar year. Before October 1 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). Not later than thirty (30) days
after receiving the notice of the amount of the certified
distribution, the county auditor shall notify each taxing unit
entitled to receive a distribution under this chapter of the amount
of distribution and other revenue that will be distributed to the
taxing unit under this chapter during the ensuing calendar year.
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 amount of any tax increase
imposed under section 26 of this chapter to provide additional
homestead credits as provided in those provisions.
(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 September 30 of the calendar year. The adjustment shall
reflect any other adjustment authorized under subsections (c), (d), (e),
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 (c) and reflects the changes made in
the adjustment.
(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.
(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.
(j) The estimates under subsections (h) and (i) must specify the
amount of the estimated certified distributions that are attributable to
any additional rates authorized under this chapter.
SECTION 31. IC 6-3.5-7-17.3, AS AMENDED BY P.L.229-2011,
SECTION 93, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 17.3. (a) If the budget agency determines that the
balance in a county trust account exceeds one hundred fifty percent
(150%) (50%) of the certified distributions to be made to the county
in the ensuing year, the budget agency shall make a supplemental
distribution to the county from the county'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. However, the part of a supplemental distribution
that is attributable to an additional rate authorized under this
chapter:
(A) shall be used for the purpose specified in the statute
authorizing the additional rate; and
(B) is not required to be deposited in the unit's rainy day fund.
The amount of the supplemental distribution is equal to the amount by
which the balance in the county trust account exceeds one hundred
fifty percent (150%) (50%) of the certified distributions to be made to
the county in the ensuing year.
(c) A determination under this section must be made before October
2.
(d) Any income earned on money held in a trust account
established for a county under this chapter shall be deposited in
that trust account.
SECTION 32. IC 6-3.5-7-27, AS AMENDED BY P.L.137-2012,
SECTION 106, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2013]: 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, not more
than ten (10) days after the vote, 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. The county treasurer shall establish a
county facilities revenue fund to be used only for the purposes
described in subsection (c)(1) and (c)(2). The amount of county
economic development income tax revenues derived from the tax rate
imposed under this section that are necessary to pay the costs described
in subsection (c)(1) and (c)(2) shall be deposited into the county
facilities revenue fund before a certified distribution is made under
section 12 of this chapter. The remainder shall be deposited into the
economic development income tax funds of the county's units.
(f) County economic development income tax revenues derived
from the tax rate imposed under this section may not be used for
purposes other than those described in this section.
(g) County economic development income tax revenues derived
from the tax rate imposed under this section that are deposited into the
county facilities revenue fund may not be considered by the department
of local government finance in determining the county's ad valorem
property tax levy for an ensuing calendar year under IC 6-1.1-18.5.
(h) Notwithstanding 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 33. IC 6-6-5-8 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 8. (a) The bureau shall include on all registration forms suitable spaces for the applicant's Social Security number or federal tax identification number, the amount of the registration fee, the amount of excise tax, the amount of credit, if any, as provided in section 5 of this chapter, and the total amount of payment due on account of the applicable registration fees and excise taxes upon the registration of the vehicle. The forms shall also include spaces for showing the county, city, or town and township and address of the place where the owner resides. Using procedures determined by the bureau to be appropriate, the bureau shall verify the accuracy and completeness of the information on the registration form concerning:
(1) the county and city or town;
(2) the township; and
(3) the address;
of the owner.
(b) The bureau shall list on all registration forms for vehicles prepared by it the amount of registration fees and taxes due. In addition, the bureau shall prepare by December 1 of each year a schedule showing the excise tax payable on each make and model of vehicle.
SECTION 34. IC 6-6-5-10, AS AMENDED BY P.L.182-2009(ss), SECTION 237, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2014]: Sec. 10. (a) The bureau shall establish procedures necessary for the collection of the tax imposed by this chapter and for the proper accounting for the same. The necessary forms and records shall be subject to approval by the state board of accounts.
(b) The county treasurer, upon receiving the excise tax collections, shall receipt such collections into a separate account for settlement thereof at the same time as property taxes are accounted for and settled in June and December of each year, with the right and duty of the
treasurer and auditor to make advances prior to the time of final
settlement of such property taxes in the same manner as provided in
IC 5-13-6-3.
(c) As used in this subsection, "taxing district" has the meaning set
forth in IC 6-1.1-1-20, "taxing unit" has the meaning set forth in
IC 6-1.1-1-21, and "tuition support levy" refers to a school
corporation's tuition support property tax levy under IC 20-45-3-11
(repealed) for the school corporation's general fund. The county auditor
shall determine the total amount of excise taxes collected for each
taxing district in the county and the amount so collected (and the
distributions received under section 9.5 of this chapter) shall be
apportioned and distributed among the respective funds of the taxing
units in the same manner and at the same time as property taxes are
apportioned and distributed (subject to adjustment as provided in
IC 36-8-19-7.5). However, for purposes of determining distributions
under this section for 2009 and each year thereafter, a state welfare and
tuition support allocation shall be deducted from the total amount
available for apportionment and distribution to taxing units under this
section before any apportionment and distribution is made. The county
auditor shall remit the state welfare and tuition support allocation to the
treasurer of state for deposit, as directed by the budget agency. The
amount of the state welfare and tuition support allocation for a county
for a particular year is equal to the result determined under STEP
FOUR of the following formula:
STEP ONE: Determine the result of the following:
(A) Separately for 1997, 1998, and 1999 for each taxing
district in the county, determine the result of:
(i) the amount appropriated in the year by the county from
the county's county welfare fund and county welfare
administration fund; divided by
(ii) the total amounts appropriated by all taxing units in the
county for the same year.
(B) Determine the sum of the clause (A) amounts.
(C) Divide the clause (B) amount by three (3).
(D) Determine the result of:
(i) the amount of excise taxes allocated to the taxing district
that would otherwise be available for distribution to taxing
units in the taxing district; multiplied by
(ii) the clause (C) amount.
STEP TWO: Determine the result of the following:
(A) Separately for 2006, 2007, and 2008 for each taxing
district in the county, determine the result of:
(i) the tax rate imposed in the taxing district 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, children with special health care needs county fund, plus, in the case of Marion County, the tax rate imposed by the health and hospital corporation that was necessary to raise thirty-five million dollars ($35,000,000) from all taxing districts in the county; divided by
(ii) the aggregate tax rate imposed in the taxing district for the same year.
(B) Determine the sum of the clause (A) amounts.
(C) Divide the clause (B) amount by three (3).
(D) Determine the result of:
(i) the amount of excise taxes allocated to the taxing district that would otherwise be available for distribution to taxing units in the taxing district after subtracting the STEP ONE (D) amount for the same taxing district; multiplied by
(ii) the clause (C) amount.
(E) Determine the sum of the clause (D) amounts for all taxing districts in the county.
STEP THREE: Determine the result of the following:
(A) Separately for 2006, 2007, and 2008 for each taxing district in the county, determine the result of:
(i) the tuition support levy tax rate imposed in the taxing district plus the tax rate imposed by the school corporation for the school corporation's special education preschool fund in the district; divided by
(ii) the aggregate tax rate imposed in the taxing district for the same year.
(B) Determine the sum of the clause (A) amounts.
(C) Divide the clause (B) amount by three (3).
(D) Determine the result of:
(i) the amount of excise taxes allocated to the taxing district that would otherwise be available for distribution to taxing units in the taxing district after subtracting the STEP ONE (D) amount for the same taxing district; multiplied by
(ii) the clause (C) amount.
(E) Determine the sum of the clause (D) amounts for all taxing districts in the county.
STEP FOUR: Determine the sum of the STEP ONE, STEP TWO, and STEP THREE amounts for the county.
If the boundaries of a taxing district change after the years for which a ratio is calculated under STEP ONE, STEP TWO, or STEP THREE, the
(d) Such determination shall be made from copies of vehicle registration forms furnished by the bureau of motor vehicles. Prior to such determination, the county assessor of each county shall, from copies of registration forms, cause information pertaining to legal residence of persons owning taxable vehicles to be verified from the assessor's records, to the extent such verification can be so made. The assessor shall further identify and verify from the assessor's records the several taxing units within which such persons reside.
(e) Such verifications shall be done by not later than thirty (30) days after receipt of vehicle registration forms by the county assessor, and the assessor shall certify such information to the county auditor for the auditor's use as soon as it is checked and completed.
SECTION 35. IC 6-6-6.5-21, AS AMENDED BY P.L.182-2009(ss), SECTION 242, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2014]: Sec. 21. (a) The department shall allocate each aircraft excise tax payment collected by it to the county in which the aircraft is usually located when not in operation or to the aircraft owner's county of residence if based out of state. The department shall distribute to each county treasurer on a quarterly basis the aircraft excise taxes which were collected by the department during the preceding three (3) months and which the department has allocated to that county. The distribution shall be made on or before the fifteenth of the month following each quarter and the first distribution each year shall be made in April.
(b) Concurrently with making a distribution of aircraft excise taxes, the department shall send an aircraft excise tax report to the county treasurer and the county auditor. The department shall prepare the report on the form prescribed by the state board of accounts. The aircraft excise tax report must include aircraft identification, owner information, and excise tax payment, and must indicate the county where the aircraft is normally kept when not in operation. The department shall, in the manner prescribed by the state board of accounts, maintain records concerning the aircraft excise taxes
received and distributed by it.
(c) Except as provided in section 21.5 of this chapter, each county
treasurer shall deposit money received by the treasurer under this
chapter in a separate fund to be known as the "aircraft excise tax fund".
The money in the aircraft excise tax fund shall be distributed to the
taxing units of the county in the manner prescribed in subsection (d).
(d) As used in this subsection, "taxing district" has the meaning set
forth in IC 6-1.1-1-20, "taxing unit" has the meaning set forth in
IC 6-1.1-1-21, and "tuition support levy" refers to a school
corporation's tuition support property tax levy under IC 20-45-3-11
(repealed) for the school corporation's general fund. In order to
distribute the money in the county aircraft excise tax fund to the taxing
units of the county, the county auditor shall first allocate the money in
the fund among the taxing districts of the county. In making these
allocations, the county auditor shall allocate to a taxing district the
excise taxes collected with respect to aircraft usually located in the
taxing district when not in operation. Subject to this subsection, the
money allocated to a taxing district shall be apportioned and distributed
among the taxing units of that taxing district in the same manner and
at the same time that the property taxes are apportioned and distributed
(subject to adjustment as provided in IC 36-8-19-7.5). For purposes of
determining the distribution for a year under this section for a taxing
unit, a state welfare and tuition support allocation shall be deducted
from the total amount available for apportionment and distribution to
taxing units under this section before any apportionment and
distribution is made. The county auditor shall remit the state welfare
and tuition support allocation to the treasurer of state for deposit as
directed by the budget agency. The amount of the state welfare and
tuition support allocation for a county for a particular year is equal to
the result determined under STEP THREE of the following formula:
STEP ONE: Determine the result of the following:
(A) Separately for 2006, 2007, and 2008 for each taxing
district in the county, determine the result of:
(i) the tax rate imposed in the taxing district 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,
children with special health care needs county fund, plus, in
the case of Marion County, the tax rate imposed by the
health and hospital corporation that was necessary to raise
thirty-five million dollars ($35,000,000) from all taxing
districts in the county; divided by
(ii) the aggregate tax rate imposed in the taxing district for the same year.
(B) Determine the sum of the clause (A) amounts.
(C) Divide the clause (B) amount by three (3).
(D) Determine the result of:
(i) the amount of excise taxes allocated to the taxing district that would otherwise be available for distribution to taxing units in the taxing district; multiplied by
(ii) the clause (C) amount.
(E) Determine the sum of the clause (D) amounts for all taxing districts in the county.
STEP TWO: Determine the result of the following:
(A) Separately for 2006, 2007, and 2008 for each taxing district in the county, determine the result of:
(i) the tuition support levy tax rate imposed in the taxing district plus the tax rate imposed by the school corporation for the school corporation's special education preschool fund in the district; divided by
(ii) the aggregate tax rate imposed in the taxing district for the same year.
(B) Determine the sum of the clause (A) amounts.
(C) Divide the clause (B) amount by three (3).
(D) Determine the result of:
(i) the amount of excise taxes allocated to the taxing district that would otherwise be available for distribution to taxing units in the taxing district; multiplied by
(ii) the clause (C) amount.
(E) Determine the sum of the clause (D) amounts for all taxing districts in the county.
STEP THREE: Determine the sum of the STEP ONE and STEP TWO amounts for the county.
If the boundaries of a taxing district change after the years for which a ratio is calculated under STEP ONE or STEP TWO, the
(e) Within thirty (30) days following the receipt of excise taxes from the department, the county treasurer shall file a report with the county auditor concerning the aircraft excise taxes collected by the county
treasurer. The county treasurer shall file the report on the form
prescribed by the state board of accounts. The county treasurer shall,
in the manner and at the times prescribed in IC 6-1.1-27, make a
settlement with the county auditor for the aircraft excise taxes collected
by the county treasurer. The county treasurer shall, in the manner
prescribed by the state board of accounts, maintain records concerning
the aircraft excise taxes received and distributed by the treasurer.
SECTION 36. IC 6-6-11-29 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2014]: Sec. 29. (a) The
auditor of state bureau of motor vehicles shall transfer the department
of natural resources fee, the lake and river enhancement fee, the
delinquent excise taxes, and the delinquent fees collected under this
chapter during the preceding month as follows:
(1) On or before the eleventh day of each month, the auditor of
state bureau of motor vehicles shall transfer to the state license
branch fund an amount equal to five percent (5%) of each excise
tax transaction completed by the bureau. The money is to be used
to cover the expenses incurred by the bureau of motor vehicles
and the license branches for returns, decals, collecting the fees
and excise taxes and to cover any service charges by the
commission under IC 9-29-3. An additional charge may not be
imposed for the services of the license branches under this
chapter.
(2) At least quarterly, the auditor of state bureau of motor
vehicles shall set aside for the department of natural resources the
fees and the delinquent fees collected under this chapter to use as
provided in section 35 of this chapter.
(3) On or before the tenth day of each month, the auditor of state
bureau of motor vehicles shall distribute to each county the
excise tax collections, including delinquent tax collections, for the
county for the preceding month. The auditor bureau of motor
vehicles shall include a report with each distribution showing the
information necessary for the county auditor to allocate the
revenue among the taxing units of the county.
(4) The auditor of state bureau of motor vehicles shall deposit
the revenue from the lake and river enhancement fee imposed by
section 12(b) of this chapter in the lake and river enhancement
fund established by section 12.5 of this chapter.
(b) Money credited to each county's account in the state general
fund is appropriated to make the distributions and the transfers required
by subsection (a). The distributions shall be made upon warrants drawn
from the state general fund.
SECTION 37. IC 6-6-11-31, AS AMENDED BY P.L.182-2009(ss), SECTION 245, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2014]: Sec. 31. (a) A boat excise tax fund is established in each county. Each county treasurer shall deposit in the fund the taxes received under this chapter.
(b) As used in this subsection, "taxing district" has the meaning set forth in IC 6-1.1-1-20, "taxing unit" has the meaning set forth in IC 6-1.1-1-21, and "tuition support levy" refers to a school corporation's tuition support property tax levy under IC 20-45-3-11 (repealed) for the school corporation's general fund. The excise tax money in the county boat excise tax fund shall be distributed to the taxing units of the county. The county auditor shall allocate the money in the fund among the taxing districts of the county based on the tax situs of each boat. Subject to this subsection, the money allocated to the taxing units shall be apportioned and distributed among the funds of the taxing units in the same manner and at the same time that property taxes are apportioned and distributed (subject to adjustment as provided in IC 36-8-19-7.5). For purposes of determining the distribution for a year under this section for a taxing unit, a state welfare and tuition support allocation shall be deducted from the total amount available for apportionment and distribution to taxing units under this section before any apportionment and distribution is made. The county auditor shall remit the state welfare and tuition support allocation to the treasurer of state for deposit as directed by the budget agency. The amount of the state welfare and tuition support allocation for a county for a particular year is equal to the result determined under STEP THREE of the following formula:
STEP ONE: Determine the result of the following:
(A) Separately for 2006, 2007, and 2008 for each taxing district in the county, determine the result of:
(i) the tax rate imposed in the taxing district 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, children with special health care needs county fund, plus, in the case of Marion County, the tax rate imposed by the health and hospital corporation that was necessary to raise thirty-five million dollars ($35,000,000) from all taxing districts in the county; divided by
(ii) the aggregate tax rate imposed in the taxing district for the same year.
(B) Determine the sum of the clause (A) amounts.
(C) Divide the clause (B) amount by three (3).
(D) Determine the result of:
(i) the amount of excise taxes allocated to the taxing district that would otherwise be available for distribution to taxing units in the taxing district; multiplied by
(ii) the clause (C) amount.
(E) Determine the sum of the clause (D) amounts for all taxing districts in the county.
STEP TWO: Determine the result of the following:
(A) Separately for 2006, 2007, and 2008 for each taxing district in the county, determine the result of:
(i) the tuition support levy tax rate imposed in the taxing district plus the tax rate imposed by the school corporation for the school corporation's special education preschool fund in the district; divided by
(ii) the aggregate tax rate imposed in the taxing district for the same year.
(B) Determine the sum of the clause (A) amounts.
(C) Divide the clause (B) amount by three (3).
(D) Determine the result of:
(i) the amount of excise taxes allocated to the taxing district that would otherwise be available for distribution to taxing units in the taxing district; multiplied by
(ii) the clause (C) amount.
(E) Determine the sum of the clause (D) amounts for all taxing districts in the county.
STEP THREE: Determine the sum of the STEP ONE and STEP TWO amounts for the county.
If the boundaries of a taxing district change after the years for which a ratio is calculated under STEP ONE or STEP TWO, the
SECTION 38. IC 6-8.1-7-1, AS AMENDED BY P.L.182-2009(ss), SECTION 254, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 1. (a) This subsection does not apply to the disclosure of information concerning a conviction on a tax evasion charge. Unless in accordance with a judicial order or as otherwise provided in this chapter, the department, its employees,
former employees, counsel, agents, or any other person may not divulge
the amount of tax paid by any taxpayer, terms of a settlement
agreement executed between a taxpayer and the department,
investigation records, investigation reports, or any other information
disclosed by the reports filed under the provisions of the law relating
to any of the listed taxes, including required information derived from
a federal return, except to:
(1) members and employees of the department;
(2) the governor;
(3) the attorney general or any other legal representative of the
state in any action in respect to the amount of tax due under the
provisions of the law relating to any of the listed taxes; or
(4) any authorized officers of the United States;
when it is agreed that the information is to be confidential and to be
used solely for official purposes.
(b) The information described in subsection (a) may be revealed
upon the receipt of a certified request of any designated officer of the
state tax department of any other state, district, territory, or possession
of the United States when:
(1) the state, district, territory, or possession permits the exchange
of like information with the taxing officials of the state; and
(2) it is agreed that the information is to be confidential and to be
used solely for tax collection purposes.
(c) The information described in subsection (a) relating to a person
on public welfare or a person who has made application for public
welfare may be revealed to the director of the division of family
resources, and to any director of a county office of the division of
family resources located in Indiana, upon receipt of a written request
from either director for the information. The information shall be
treated as confidential by the directors. In addition, the information
described in subsection (a) relating to a person who has been
designated as an absent parent by the state Title IV-D agency shall be
made available to the state Title IV-D agency upon request. The
information shall be subject to the information safeguarding provisions
of the state and federal Title IV-D programs.
(d) The name, address, Social Security number, and place of
employment relating to any individual who is delinquent in paying
educational loans owed to a postsecondary educational institution may
be revealed to that institution if it provides proof to the department that
the individual is delinquent in paying for educational loans. This
information shall be provided free of charge to approved postsecondary
educational institutions (as defined by IC 21-7-13-6(a)). The
department shall establish fees that all other institutions must pay to the
department to obtain information under this subsection. However, these
fees may not exceed the department's administrative costs in providing
the information to the institution.
(e) The information described in subsection (a) relating to reports
submitted under IC 6-6-1.1-502 concerning the number of gallons of
gasoline sold by a distributor and IC 6-6-2.5 concerning the number of
gallons of special fuel sold by a supplier and the number of gallons of
special fuel exported by a licensed exporter or imported by a licensed
transporter may be released by the commissioner upon receipt of a
written request for the information.
(f) The information described in subsection (a) may be revealed
upon the receipt of a written request from the administrative head of a
state agency of Indiana when:
(1) the state agency shows an official need for the information;
and
(2) the administrative head of the state agency agrees that any
information released will be kept confidential and will be used
solely for official purposes.
(g) The information described in subsection (a) may be revealed
upon the receipt of a written request from the chief law enforcement
officer of a state or local law enforcement agency in Indiana when it is
agreed that the information is to be confidential and to be used solely
for official purposes.
(h) The name and address of retail merchants, including township,
as specified in IC 6-2.5-8-1(j) may be released solely for tax collection
purposes to township assessors and county assessors.
(i) The department shall notify the appropriate innkeepers' tax
board, bureau, or commission that a taxpayer is delinquent in remitting
innkeepers' taxes under IC 6-9.
(j) All information relating to the delinquency or evasion of the
motor vehicle excise tax may be disclosed to the bureau of motor
vehicles in Indiana and may be disclosed to another state, if the
information is disclosed for the purpose of the enforcement and
collection of the taxes imposed by IC 6-6-5.
(k) All information relating to the delinquency or evasion of
commercial vehicle excise taxes payable to the bureau of motor
vehicles in Indiana may be disclosed to the bureau and may be
disclosed to another state, if the information is disclosed for the
purpose of the enforcement and collection of the taxes imposed by
IC 6-6-5.5.
(l) All information relating to the delinquency or evasion of
commercial vehicle excise taxes payable under the International
Registration Plan may be disclosed to another state, if the information
is disclosed for the purpose of the enforcement and collection of the
taxes imposed by IC 6-6-5.5.
(m) All information relating to the delinquency or evasion of the
excise taxes imposed on recreational vehicles and truck campers that
are payable to the bureau of motor vehicles in Indiana may be disclosed
to the bureau and may be disclosed to another state if the information
is disclosed for the purpose of the enforcement and collection of the
taxes imposed by IC 6-6-5.1.
(n) This section does not apply to:
(1) the beer excise tax, including brand and packaged type
(IC 7.1-4-2);
(2) the liquor excise tax (IC 7.1-4-3);
(3) the wine excise tax (IC 7.1-4-4);
(4) the hard cider excise tax (IC 7.1-4-4.5);
(5) the malt excise tax (IC 7.1-4-5);
(6) the motor vehicle excise tax (IC 6-6-5);
(7) the commercial vehicle excise tax (IC 6-6-5.5); and
(8) the fees under IC 13-23.
(o) The name and business address of retail merchants within each
county that sell tobacco products may be released to the division of
mental health and addiction and the alcohol and tobacco commission
solely for the purpose of the list prepared under IC 6-2.5-6-14.2.
(p) The department may release information concerning total
incremental tax amounts under:
(1) IC 5-28-26;
(2) IC 36-7-13;
(3) IC 36-7-26;
(4) IC 36-7-27;
(5) IC 36-7-31;
(6) IC 36-7-31.3; or
(7) any other statute providing for the calculation of
incremental state taxes that will be distributed to or retained
by a political subdivision or other entity;
to the fiscal officer of the political subdivision or other entity that
established the district or area from which the incremental taxes
were received if that fiscal officer enters into an agreement with
the department specifying that the political subdivision or other
entity will use the information solely for official purposes.
SECTION 39. IC 6-8.1-9-1.3 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2013]: Sec. 1.3. If the department makes a
refund of taxes paid under IC 6-2.5, IC 6-7-1, IC 6-7-2, or IC 7.1,
the department shall charge each fund or account into which the
taxes have been allocated or distributed with that account's or that
fund's proportionate share of the amount of taxes refunded.
SECTION 40. IC 8-14-1-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 3. The money collected
for the motor vehicle highway account fund and remaining after
refunds and the payment of all expenses incurred in the collection
thereof, and after the deduction of the amount appropriated to the
department for traffic safety and after the deduction of one-half (1/2)
of the amount appropriated for the state police department, shall be
allocated to and distributed among the department and subdivisions
designated as follows:
(1) Of the net amount in the motor vehicle highway account the
auditor of state shall set aside for the cities and towns of the state
fifteen percent (15%) thereof. This sum shall be allocated to the
cities and towns upon the basis that the population of each city
and town bears to the total population of all the cities and towns
and shall be used for the construction or reconstruction and
maintenance of streets and alleys and shall be annually budgeted
as now provided by law. However, no part of such sum shall be
used for any other purpose than for the purposes defined in this
chapter. If any funds allocated to any city or town shall be used by
any officer or officers of such city or town for any purpose or
purposes other than for the purposes as defined in this chapter,
such officer or officers shall be liable upon their official bonds to
such city or town in such amount so used for other purposes than
for the purposes as defined in this chapter, together with the costs
of said action and reasonable attorney fees, recoverable in an
action or suit instituted in the name of the state of Indiana on the
relation of any taxpayer or taxpayers resident of such city or town.
A monthly distribution thereof of funds accumulated during the
preceding month shall be made by the auditor of state.
(2) Of the net amount in the motor vehicle highway account, the
auditor of state shall set aside for the counties of the state
thirty-two percent (32%) thereof. However, as to the allocation to
cities and towns under subdivision (1), and as to the allocation to
counties under this subdivision in the event that the amount in the
motor vehicle highway account fund remaining after refunds and
the payment of all expenses incurred in the collection thereof and
after deduction of any amount appropriated by the general
assembly for public safety and policing shall be less than
twenty-two million six hundred and fifty thousand dollars
($22,650,000), in any fiscal year then the amount so set aside in
the next calendar year for distributions to counties shall be
reduced fifty-four percent (54%) of such deficit and the amount
so set aside for distribution in the next calendar year to cities and
towns shall be reduced thirteen percent (13%) of such deficit.
Such reduced distributions shall begin with the distribution
January 1 of each year.
(3) The amount set aside for the counties of the state under the
provisions of subdivision (2) shall be allocated monthly upon the
following basis:
(A) Five percent (5%) of the amount allocated to the counties
to be divided equally among the ninety-two (92) counties.
(B) Sixty-five percent (65%) of the amount allocated to the
counties to be divided on the basis of the ratio of the actual
miles, now traveled and in use, of county roads in each county
to the total mileage of county roads in the state, which shall be
annually determined, accurately, by the department and
submitted to the auditor of state before April 1 of each
year.
(C) Thirty percent (30%) of the amount allocated to the
counties to be divided on the basis of the ratio of the motor
vehicle registrations of each county to the total motor vehicle
registration of the state.
All money so distributed to the several counties of the state shall
constitute a special road fund for each of the respective counties
and shall be under the exclusive supervision and direction of the
board of county commissioners in the construction,
reconstruction, maintenance, or repair of the county highways or
bridges on such county highways within such county.
(4) Each month the remainder of the net amount in the motor
vehicle highway account shall be credited to the state highway
fund for the use of the department.
(5) Money in the fund may not be used for any toll road or toll
bridge project.
(6) Notwithstanding any other provisions of this section, money
in the motor vehicle highway account fund may be appropriated
to the Indiana department of transportation from the forty-seven
percent (47%) distributed to the political subdivisions of the state
to pay the costs incurred by the department in providing services
to those subdivisions.
(7) Notwithstanding any other provisions of this section or of IC 8-14-8, for the purpose of maintaining a sufficient working balance in accounts established primarily to facilitate the matching of federal and local money for highway projects, money may be appropriated to the Indiana department of transportation as follows:
(A) One-half (1/2) from the forty-seven percent (47%) set aside under subdivisions (1) and (2) for counties and for those cities and towns with a population greater than five thousand (5,000).
(B) One-half (1/2) from the distressed road fund under IC 8-14-8.
SECTION 41. IC 25-1-6-8, AS AMENDED BY P.L.172-2011, SECTION 131, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 8. (a) The licensing agency and the boards
(1) is licensed under this chapter or IC 25-1-5; or
(2) has applied for a license under this chapter or IC 25-1-5.
(b) If the department of state revenue notifies the licensing agency that a person is on the most recent tax warrant list, the licensing agency shall not issue or renew the person's license until:
(1) the person provides to the licensing agency a statement from the department of state revenue indicating that the person's tax warrant has been satisfied; or
(2) the licensing agency receives a notice from the commissioner of the department of state revenue under IC 6-8.1-8-2(k).
(c) If the alcohol and tobacco commission notifies the licensing agency that a person has an outstanding balance due to the alcohol and tobacco commission, the licensing agency shall not issue or renew the person's license until the person provides to the licensing agency a statement from the alcohol and tobacco commission indicating that the person's outstanding balance has been satisfied.
(d) If the bureau of motor vehicles notifies the licensing agency that a person has an outstanding balance due to the bureau of motor vehicles because a check, draft, or order issued or delivered by the person to the bureau of motor vehicles was returned or dishonored because of insufficient funds, the licensing agency shall not issue or renew the person's license until the person provides to the licensing agency a statement from the bureau of motor vehicles indicating that the person's outstanding balance has been satisfied.
SECTION 42. IC 36-7-13-14, AS AMENDED BY P.L.172-2011, SECTION 145, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 14. (a) Before the first business day in October of each year, the department shall calculate the income tax incremental amount and the gross retail incremental amount for the preceding state fiscal year for each district designated under this chapter.
(b) Businesses operating in the district shall report annually, in the manner and in the form prescribed by the department, information that the department determines necessary to calculate incremental gross retail, use, and income taxes. A taxpayer operating in the district that files a consolidated tax return with the department also shall file annually an informational return with the department for each business location of the taxpayer within the district. If a taxpayer fails to report the information required by this section or file an informational return required by this section, the department shall use the best information available in calculating the incremental gross retail, use, and income taxes.
(c) Not later than sixty (60) days after receiving a certification of a district's modified boundaries under section 12.5(c) of this chapter, the department shall recalculate the income tax incremental amount and the gross retail incremental amount for the preceding state fiscal year for a district modified under section 12.5 of this chapter.
SECTION 43. IC 36-7-26-23 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 23. (a) Before the first business day in October of each year, the board shall require the department to calculate the net increment for the preceding state fiscal year. The department shall transmit to the board a statement as to the net increment in sufficient time to permit the board to review the calculation and permit the transfers required by this section to be made on a timely basis. Taxpayers operating in the district shall report annually, in the manner and in the form prescribed by the department, information that the department determines necessary to calculate the net increment. A taxpayer operating in the district that files a consolidated tax return with the department also shall file annually an informational return with the department for each business location of the taxpayer within the district. If a taxpayer fails to report the information required by this section or file an informational return required by this section, the department shall use the best information available in calculating the net increment.
(b) There is established a sales tax increment financing fund to be administered by the treasurer of state. The fund is comprised of two (2)
accounts called the net increment account and the credit account.
(c) On the first business day in October of each year, that portion of
the net increment calculated under subsection (a) that is needed:
(1) to pay debt service on the bonds issued under section 24 of
this chapter or to pay lease rentals under section 24 of this
chapter; and
(2) to establish and maintain a debt service reserve established by
the commission or by a lessor that provides local public
improvements to the commission;
shall be transferred to and deposited in the fund and credited to the net
increment account. Money credited to the net increment account is
pledged to the purposes described in subdivisions (1) and (2), subject
to the other provisions of this chapter.
(d) On the first business day of October in each year, the remainder
of:
(1) eighty percent (80%) of the gross increment; minus
(2) the amount credited to the net increment account on the same
date;
shall be transferred and credited to the credit account.
(e) The remainder of:
(1) the gross increment; minus
(2) the amounts credited to the net increment account and the
credit account;
shall be deposited by the auditor of state as other gross retail and use
taxes are deposited.
(f) A city described in section 1(2), 1(3), or 1(4) of this chapter may
receive not more than fifty percent (50%) of the net increment each
year. During the time a district exists in a city described in section 1(3)
or 1(4) of this chapter, not more than a total of one million dollars
($1,000,000) of net increment may be paid to the city described in
section 1(3) or 1(4) of this chapter. During each year that a district
exists in a city described in section 1(2) of this chapter, not more than
one million dollars ($1,000,000) of net increment may be paid to the
city described in section 1(2) of this chapter.
(g) The auditor of state shall disburse all money in the fund that is
credited to the net increment account to the commission in equal
semiannual installments on November 30 and May 31 of each year.
SECTION 44. IC 36-7-27-13 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2014]: Sec. 13. (a) The
treasurer of state shall establish an incremental income tax financing
fund for the county. The fund shall be administered by the treasurer of
state. Money in the fund does not revert to the state general fund at the
end of a state fiscal year.
(b) Before July 2 of each calendar year, the department, after
reviewing the recommendation of the budget agency, shall estimate and
certify to the county auditor the amount of incremental income tax for
the tax areas in the county that will be collected from that county
during the twelve (12) month period beginning July 1 of that calendar
year and ending June 30 of the following calendar year. The amount
certified shall be deposited into the fund and shall be distributed on the
dates specified in subsection (e) for the following calendar year. The
amount certified may be adjusted under subsection (c) or (d).
Taxpayers operating in the tax area shall report annually, in the
manner and in the form prescribed by the department, information
that the department determines necessary to calculate the
incremental income tax amount. A taxpayer operating in the tax
area that files a consolidated tax return with the department also
shall file annually an informational return with the department for
each business location of the taxpayer within the tax area. If a
taxpayer fails to report the information required by this section,
the department shall use the best information available in
calculating the amount of incremental income taxes.
(c) The department may certify to the county an amount that is
greater than the estimated twelve (12) month incremental income tax
collection if the department, after reviewing the recommendation of the
budget agency, determines that there will be a greater amount of
incremental income tax available for distribution from the fund.
(d) The department may certify an amount less than the estimated
twelve (12) month incremental income tax collection if the department,
after reviewing the recommendation of the budget agency, determines
that a part of those collections need to be distributed during the current
calendar year so that the county will receive its full certified amount for
the current calendar year.
(e) The auditor of state shall disburse the certified amount to the
commission in equal semiannual installments on May 31 and
November 30 of each year.
(f) Money in the fund may be pledged by the commission to the
following purposes:
(1) To pay debt service on the bonds issued under section 14 of
this chapter.
(2) To pay lease rentals under section 14 of this chapter.
(3) To establish and maintain a debt service reserve established
by the commission or by a lessor that provides local public
improvements to the commission.
(g) When money in the fund is sufficient when combined with other sources of payment to pay all outstanding principal and interest or lease rentals to the date on which the obligations can be redeemed on obligations of the commission for a local public improvement in the county, no additional incremental income tax for that project shall be deposited in the fund and covered income taxes shall be distributed as provided in IC 6-3.5-6 or IC 6-3.5-7, as appropriate.
SECTION 45. IC 36-7-31-15 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 15. (a) When the commission adopts an allocation provision, the commission shall notify the department by certified mail of the adoption of the provision and shall include with the notification a complete list of the following:
(1) Employers in the tax area.
(2) Street names and the range of street numbers of each street in the tax area.
The commission shall update the list before July 1 of each year.
(b) Taxpayers operating in the district shall report annually, in the manner and in the form prescribed by the department, information that the department determines necessary to calculate 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 district.
(c) A taxpayer operating in the district that files a consolidated tax return with the department also shall file annually an informational return with the department for each business location of the taxpayer within the district.
(d) If a taxpayer fails to report the information required by this section or file an informational return required by this section, the department shall use the best information available in calculating the amount of covered taxes attributable to a taxable event in a tax area or covered taxes from income earned in a tax area.
SECTION 46. IC 36-7-31.3-13 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 13. (a) When the designating body adopts an allocation provision, the county auditor shall notify the department by certified mail of the adoption of the provision and shall include with the notification a complete list of the following:
(1) Employers in the tax area.
(2) Street names and the range of street numbers of each street in the tax area.
The county auditor shall update the list before July 1 of each year.
(b) Taxpayers operating in the district shall report annually, in the manner and in the form prescribed by the department, information that the department determines necessary to calculate 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 district.
(c) A taxpayer operating in the district that files a consolidated tax return with the department also shall file annually an informational return with the department for each business location of the taxpayer within the district.
(d) If a taxpayer fails to report the information required by this section or file an informational return required by this section, the department shall use the best information available in calculating the amount of covered taxes attributable to a taxable event in a tax area or covered taxes from income earned in a tax area.
SECTION 47. IC 36-7-32-21 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 21. (a) Before the first business day in October of each year, the department of state revenue shall calculate the income tax incremental amount and the gross retail incremental amount for the preceding state fiscal year for each certified technology park designated under this chapter.
(b) Taxpayers operating in the certified technology park shall report annually, in the manner and in the form prescribed by the department, information that the department determines necessary to calculate the net increment.
(c) A taxpayer operating in the certified technology park that files a consolidated tax return with the department also shall file annually an informational return with the department for each business location of the taxpayer within the certified technology park.
(d) If a taxpayer fails to report the information required by this section or file an informational return required by this section, the department shall use the best information available in calculating the income tax incremental amount and the gross retail incremental amount.
SECTION 48. [EFFECTIVE UPON PASSAGE] (a) The legislative council is urged to assign to an interim study committee the study of the imposition, administration, and distribution of the following sources of local tax revenue:
(1) The county adjusted gross income tax (IC 6-3.5-1.1).
(2) The county option income tax (IC 6-3.5-6).
(3) The county economic development income tax (IC 6-3.5-7).
(4) Any income tax rate imposed under IC 6-3.5 for public safety or property tax relief, including a levy freeze.
(b) A study committee assigned the topic described in subsection (a) shall submit to the legislative council a written report of the study committee's findings and recommendations before November 1, 2013.
(c) This SECTION expires January 1, 2014.
SECTION 49 An emergency is declared for this act.
SEA 544
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