Bill Text: IN SB0576 | 2013 | Regular Session | Introduced
Bill Title: Property tax rate cap replacement grants.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced - Dead) 2013-01-15 - First reading: referred to Committee on Appropriations [SB0576 Detail]
Download: Indiana-2013-SB0576-Introduced.html
Citations Affected: IC 4-33-13-5; IC 20-20-40.
Synopsis: Property tax rate cap replacement grants. Provides grants
from the state gaming fund to school corporations to replace property
tax revenue not received because of the property tax rate cap. Annually
appropriates to the department of education from the state gaming fund
the amount necessary to make the grants. Provides that if a school
corporation loses more than 33% of its property tax revenue because of
the property tax rate cap, the school corporation qualifies for a levy
replacement grant equal to 80% of the lost amount. Provides that if a
school corporation loses 33% or less of its property tax revenue
because of the property tax rate cap, the school corporation may apply
for a grant in an amount determined by the department of local
government finance.
Effective: July 1, 2013.
January 15, 2013, read first time and referred to Committee on Appropriations.
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A BILL FOR AN ACT to amend the Indiana Code concerning
education and to make an appropriation.
(1) The first thirty-three million dollars ($33,000,000) of tax revenues collected under this chapter shall be set aside for revenue sharing under subsection (e).
(2) Subject to subsection (c), twenty-five percent (25%) of the remaining tax revenue remitted by each licensed owner shall be paid:
(A) to the city that is designated as the home dock of the riverboat from which the tax revenue was collected, in the case of:
(i) a city described in IC 4-33-12-6(b)(1)(A); or
(ii) a city located in a county having a population of more than four hundred thousand (400,000) but less than seven hundred thousand (700,000); or
(B) to the county that is designated as the home dock of the riverboat from which the tax revenue was collected, in the case of a riverboat whose home dock is not in a city described in clause (A).
(3) The amount needed to make grants under IC 20-20-40 shall be transferred to the department of education to make distributions to school corporations to mitigate the effect of lost property tax revenue resulting from credits for excessive property taxes under IC 6-1.1-20.6.
(b) This subsection applies only to tax revenue remitted by an operating agent operating a riverboat in a historic hotel district. After funds are appropriated under section 4 of this chapter, each month the treasurer of state shall distribute the tax revenue remitted by the operating agent under this chapter as follows:
(1) Thirty-seven and one-half percent (37.5%) shall be paid to the state general fund.
(2) Nineteen percent (19%) shall be paid to the West Baden Springs historic hotel preservation and maintenance fund established by IC 36-7-11.5-11(b). However, at any time the balance in that fund exceeds twenty million dollars ($20,000,000), the amount described in this subdivision shall be paid to the state general fund.
(3) Eight percent (8%) shall be paid to the Orange County development commission established under IC 36-7-11.5.
(4) Sixteen percent (16%) shall be paid in equal amounts to each town that is located in the county in which the riverboat is located and contains a historic hotel. The following apply to taxes received by a town under this subdivision:
(A) At least twenty-five percent (25%) of the taxes must be
transferred to the school corporation in which the town is
located.
(B) At least twelve and five-tenths percent (12.5%) of the
taxes imposed on adjusted gross receipts received after June
30, 2010, must be transferred to the Orange County
development commission established by IC 36-7-11.5-3.5.
(5) Nine percent (9%) shall be paid to the county treasurer of the
county in which the riverboat is located. The county treasurer
shall distribute the money received under this subdivision as
follows:
(A) Twenty-two and twenty-five hundredths percent (22.25%)
shall be quarterly distributed to the county treasurer of a
county having a population of more than forty thousand
(40,000) but less than forty-two thousand (42,000) for
appropriation by the county fiscal body after receiving a
recommendation from the county executive. The county fiscal
body for the receiving county shall provide for the distribution
of the money received under this clause to one (1) or more
taxing units (as defined in IC 6-1.1-1-21) in the county under
a formula established by the county fiscal body after receiving
a recommendation from the county executive.
(B) Twenty-two and twenty-five hundredths percent (22.25%)
shall be quarterly distributed to the county treasurer of a
county having a population of more than ten thousand seven
hundred (10,700) but less than twelve thousand (12,000) for
appropriation by the county fiscal body after receiving a
recommendation from the county executive. The county fiscal
body for the receiving county shall provide for the distribution
of the money received under this clause to one (1) or more
taxing units (as defined in IC 6-1.1-1-21) in the county under
a formula established by the county fiscal body after receiving
a recommendation from the county executive.
(C) Fifty-five and five-tenths percent (55.5%) shall be retained
by the county in which the riverboat is located for
appropriation by the county fiscal body after receiving a
recommendation from the county executive.
(6) Five percent (5%) shall be paid to a town having a population
of more than two thousand (2,000) but less than three thousand
five hundred (3,500) located in a county having a population of
more than nineteen thousand five hundred (19,500) but less than
twenty thousand (20,000). At least forty percent (40%) of the
taxes received by a town under this subdivision must be
transferred to the school corporation in which the town is located.
(7) Five percent (5%) shall be paid to a town having a population
of more than three thousand five hundred (3,500) located in a
county having a population of more than nineteen thousand five
hundred (19,500) but less than twenty thousand (20,000). At least
forty percent (40%) of the taxes received by a town under this
subdivision must be transferred to the school corporation in which
the town is located.
(8) Five-tenths percent (0.5%) of the taxes imposed on adjusted
gross receipts received after June 30, 2010, shall be paid to the
Indiana economic development corporation established by
IC 5-28-3-1.
(c) For each city and county receiving money under subsection
(a)(2), the treasurer of state shall determine the total amount of money
paid by the treasurer of state to the city or county during the state fiscal
year 2002. The amount determined is the base year revenue for the city
or county. The treasurer of state shall certify the base year revenue
determined under this subsection to the city or county. The total
amount of money distributed to a city or county under this section
during a state fiscal year may not exceed the entity's base year revenue.
For each state fiscal year, the treasurer of state shall pay that part of the
riverboat wagering taxes that:
(1) exceeds a particular city's or county's base year revenue; and
(2) would otherwise be due to the city or county under this
section;
to the state general fund instead of to the city or county.
(d) Each state fiscal year the treasurer of state shall transfer from the
tax revenue remitted to the state general fund under subsection (a)(3)
(a)(4) to the build Indiana fund an amount that when added to the
following may not exceed two hundred fifty million dollars
($250,000,000):
(1) Surplus lottery revenues under IC 4-30-17-3.
(2) Surplus revenue from the charity gaming enforcement fund
under IC 4-32.2-7-7.
(3) Tax revenue from pari-mutuel wagering under IC 4-31-9-3.
The treasurer of state shall make transfers on a monthly basis as needed
to meet the obligations of the build Indiana fund. If in any state fiscal
year insufficient money is transferred to the state general fund under
subsection (a)(3) (a)(4) to comply with this subsection, the treasurer of
state shall reduce the amount transferred to the build Indiana fund to
the amount available in the state general fund from the transfers under
subsection (a)(3) (a)(4) for the state fiscal year.
(e) Before August 15 of each year, the treasurer of state shall distribute the wagering taxes set aside for revenue sharing under subsection (a)(1) to the county treasurer of each county that does not have a riverboat according to the ratio that the county's population bears to the total population of the counties that do not have a riverboat. Except as provided in subsection (h), the county auditor shall distribute the money received by the county under this subsection as follows:
(1) To each city located in the county according to the ratio the city's population bears to the total population of the county.
(2) To each town located in the county according to the ratio the town's population bears to the total population of the county.
(3) After the distributions required in subdivisions (1) and (2) are made, the remainder shall be retained by the county.
(f) Money received by a city, town, or county under subsection (e) or (h) may be used for any of the following purposes:
(1) To reduce the property tax levy of the city, town, or county for a particular year (a property tax reduction under this subdivision does not reduce the maximum levy of the city, town, or county under IC 6-1.1-18.5).
(2) For deposit in a special fund or allocation fund created under IC 8-22-3.5, IC 36-7-14, IC 36-7-14.5, IC 36-7-15.1, and IC 36-7-30 to provide funding for debt repayment.
(3) To fund sewer and water projects, including storm water management projects.
(4) For police and fire pensions.
(5) To carry out any governmental purpose for which the money is appropriated by the fiscal body of the city, town, or county. Money used under this subdivision does not reduce the property tax levy of the city, town, or county for a particular year or reduce the maximum levy of the city, town, or county under IC 6-1.1-18.5.
(g) This subsection does not apply to an entity receiving money under IC 4-33-12-6(c). Before September 15 of each year, the treasurer of state shall determine the total amount of money distributed to an entity under IC 4-33-12-6 during the preceding state fiscal year. If the treasurer of state determines that the total amount of money distributed to an entity under IC 4-33-12-6 during the preceding state fiscal year was less than the entity's base year revenue (as determined under IC 4-33-12-6), the treasurer of state shall make a supplemental distribution to the entity from taxes collected under this chapter and deposited into the state general fund. Except as provided in subsection
(i), the amount of an entity's supplemental distribution is equal to:
(1) the entity's base year revenue (as determined under
IC 4-33-12-6); minus
(2) the sum of:
(A) the total amount of money distributed to the entity during
the preceding state fiscal year under IC 4-33-12-6; plus
(B) any amounts deducted under IC 6-3.1-20-7.
(h) This subsection applies only to a county containing a
consolidated city. The county auditor shall distribute the money
received by the county under subsection (e) as follows:
(1) To each city, other than a consolidated city, located in the
county according to the ratio that the city's population bears to the
total population of the county.
(2) To each town located in the county according to the ratio that
the town's population bears to the total population of the county.
(3) After the distributions required in subdivisions (1) and (2) are
made, the remainder shall be paid in equal amounts to the
consolidated city and the county.
(i) This subsection applies only to the Indiana horse racing
commission. For each state fiscal year the amount of the Indiana horse
racing commission's supplemental distribution under subsection (g)
must be reduced by the amount required to comply with
IC 4-33-12-7(a).
Chapter 40. Replacement Grant to Offset Property Tax Credits for Excessive Property Taxes
Sec. 1. As used in this chapter, "credits" refers to credits for excessive property taxes that are granted under IC 6-1.1-20.6.
Sec. 2. As used in this chapter, "grant" refers to a grant distributed under this chapter.
Sec. 3. As used in this chapter, "replacement amount" refers to the amount determined under section 5 of this chapter.
Sec. 4. (a) Notwithstanding any other provision, a school corporation is eligible for a grant under this chapter in 2013 and each year thereafter if for that particular year the school corporation's total property tax revenue is expected to be reduced because of the application of credits in that year.
(b) An eligible school corporation is entitled to a grant equal to:
(1) eighty percent (80%) of the eligible school corporation's replacement amount for property taxes imposed for that year
if the school corporation loses more than thirty-three percent
(33%) of its property tax revenue because of the application
of credits in that year; or
(2) the amount determined by the department of local
government finance, not to exceed eighty percent (80%) of the
eligible school corporation's replacement amount, if the
school corporation loses thirty-three percent (33%) or less of
its property tax revenue because of the application of credits
in that year.
Sec. 5. An eligible school corporation's replacement amount is
equal to the amount of credits granted against the eligible school
corporation's combined levy for the eligible school corporation's
debt service fund, capital projects fund, transportation fund,
school bus replacement fund, and racial balance fund.
Sec. 6. (a) The department shall administer the grant program.
(b) A school corporation shall apply for a grant under this
chapter as prescribed by the department.
Sec. 7. (a) Not later than July 30 of a calendar year, the budget
agency shall certify to the department an initial estimate of the
replacement amount attributable to each eligible school
corporation for the calendar year.
(b) Not later than November 1 of a calendar year, the budget
agency shall certify to the department a final estimate of the
replacement amount attributable to each eligible school
corporation for the calendar year.
(c) The budget agency shall use the best information available
to the budget agency at the time the certification is made in
determining certified amounts under this section.
Sec. 8. (a) Subject to section 9 of this chapter, the department
shall distribute a grant in two (2) equal installments to an eligible
school corporation based on the eligible school corporation's
estimated grant amount for the calendar year.
(b) There is annually appropriated to the department from the
state gaming fund established by IC 4-33-13-2 the amount
necessary to make grants under this chapter.
Sec. 9. Based on the final estimate of the replacement amount
certified to the department by the budget agency, the department
shall settle any overpayment or underpayment of grant amounts
to an eligible school corporation. The department may offset
overpayments of grant amounts for a particular calendar year
against:
(1) a subsequent grant; or
(2) a state tuition support distribution;
that the eligible school corporation would otherwise be entitled to receive.
Sec. 10. An eligible school corporation shall deposit and use the amount received from a grant as follows:
(1) An amount equal to the revenue lost to the eligible school corporation's debt service fund as the result of the granting of credits shall be deposited in the eligible school corporation's debt service fund for purposes of the debt service fund.
(2) Any part of a grant that remains after making the deposit required under subdivision (1) may be deposited in any combination of the eligible school corporation's capital projects fund, transportation fund, school bus replacement fund, and racial balance fund, as determined by the school corporation.
