2010 Indiana Code
TITLE 6. TAXATION
ARTICLE 3.5. LOCAL TAXATION
CHAPTER 1.1. COUNTY ADJUSTED GROSS INCOME TAX
IC 6-3.5-1.1
Chapter 1.1. County Adjusted Gross Income Tax
IC 6-3.5-1.1-1
Definitions
Sec. 1. As used in this chapter:
"Adjusted gross income" has the same definition that the term is
given in IC 6-3-1-3.5(a), except that in the case of a county taxpayer
who is not a resident of a county that has imposed the county
adjusted gross income tax, the term includes only adjusted gross
income derived from the taxpayer's principal place of business or
employment.
"Apartment complex" means real property consisting of at least
five (5) units that are regularly used to rent or otherwise furnish
residential accommodations for periods of at least thirty (30) days.
"Civil taxing unit" means any entity having the power to impose
ad valorem property taxes except a school corporation. The term
does not include a solid waste management district that is not entitled
to a distribution under section 1.3 of this chapter. However, in the
case of a consolidated city, the term "civil taxing unit" includes the
consolidated city and all special taxing districts, all special service
districts, and all entities whose budgets and property tax levies are
subject to review under IC 36-3-6-9.
"County council" includes the city-county council of a
consolidated city.
"County taxpayer" as it relates to a county for a year means any
individual:
(1) who resides in that county on the date specified in section
16 of this chapter; or
(2) who maintains the taxpayer's principal place of business or
employment in that county on the date specified in section 16
of this chapter and who does not on that same date reside in
another county in which the county adjusted gross income tax,
the county option income tax, or the county economic
development income tax is in effect.
"Department" refers to the Indiana department of state revenue.
"Homestead" has the meaning set forth in IC 6-1.1-12-37.
"Nonresident county taxpayer" as it relates to a county for a year
means any county taxpayer for that county for that year who is not a
resident county taxpayer of that county for that year.
"Qualified residential property" refers to any of the following:
(1) An apartment complex.
(2) A homestead.
(3) Residential rental property.
"Resident county taxpayer" as it relates to a county for a year
means any county taxpayer who resides in that county on the date
specified in section 16 of this chapter.
"Residential rental property" means real property consisting of not
more than four (4) units that are regularly used to rent or otherwise
furnish residential accommodations for periods of at least thirty (30)
days.
"School corporation" means any public school corporation
established under Indiana law.
As added by P.L.73-1983, SEC.2. Amended by P.L.44-1984, SEC.12;
P.L.22-1988, SEC.3; P.L.96-1995, SEC.1; P.L.146-2008, SEC.326.
IC 6-3.5-1.1-1.1
Determination of allocation amount
Sec. 1.1. (a) For purposes of allocating the certified distribution
made to a county under this chapter among the civil taxing units and
school corporations in the county, the allocation amount for a civil
taxing unit or school corporation is the amount determined using the
following formula:
STEP ONE: Determine the sum of the total property taxes being
collected by the civil taxing unit or school corporation during
the calendar year of the distribution.
STEP TWO: Determine the sum of the following:
(A) Amounts appropriated from property taxes to pay the
principal of or interest on any debenture or other debt
obligation issued after June 30, 2005, other than an
obligation described in subsection (b).
(B) Amounts appropriated from property taxes to make
payments on any lease entered into after June 30, 2005, other
than a lease described in subsection (c).
(C) The proceeds of any property that are:
(i) received as the result of the issuance of a debt
obligation described in clause (A) or a lease described in
clause (B); and
(ii) appropriated from property taxes for any purpose other
than to refund or otherwise refinance a debt obligation or
lease described in subsection (b) or (c).
STEP THREE: Subtract the STEP TWO amount from the STEP
ONE amount.
STEP FOUR: Determine the sum of:
(A) the STEP THREE amount; plus
(B) the civil taxing unit's or school corporation's certified
distribution for the previous calendar year.
The allocation amount is subject to adjustment as provided in
IC 36-8-19-7.5.
(b) Except as provided in this subsection, an appropriation from
property taxes to repay interest and principal of a debt obligation is
not deducted from the allocation amount for a civil taxing unit or
school corporation if:
(1) the debt obligation was issued; and
(2) the proceeds appropriated from property taxes;
to refund or otherwise refinance a debt obligation or a lease issued
before July 1, 2005. However, an appropriation from property taxes
related to a debt obligation issued after June 30, 2005, is deducted if
the debt extends payments on a debt or lease beyond the time in
which the debt or lease would have been payable if the debt or lease
had not been refinanced or increases the total amount that must be
paid on a debt or lease in excess of the amount that would have been
paid if the debt or lease had not been refinanced. The amount of the
deduction is the annual amount for each year of the extension period
or the annual amount of the increase over the amount that would
have been paid.
(c) Except as provided in this subsection, an appropriation from
property taxes to make payments on a lease is not deducted from the
allocation amount for a civil taxing unit or school corporation if:
(1) the lease was issued; and
(2) the proceeds were appropriated from property taxes;
to refinance a debt obligation or lease issued before July 1, 2005.
However, an appropriation from property taxes related to a lease
entered into after June 30, 2005, is deducted if the lease extends
payments on a debt or lease beyond the time in which the debt or
lease would have been payable if the debt or lease had not been
refinanced or increases the total amount that must be paid on a debt
or lease in excess of the amount that would have been paid if the debt
or lease had not been refinanced. The amount of the deduction is the
annual amount for each year of the extension period or the annual
amount of the increase over the amount that would have been paid.
As added by P.L.207-2005, SEC.1. Amended by P.L.182-2009(ss),
SEC.209.
IC 6-3.5-1.1-1.3
Districts not entitled to distribution
Sec. 1.3. (a) This section applies to a county solid waste
management district (as defined in IC 13-11-2-47) or a joint solid
waste management district (as defined in IC 13-11-2-113).
(b) A district may not receive a distribution under this chapter
unless a majority of the members of each of the county fiscal bodies
of the counties within the district passes a resolution approving the
distribution.
(c) A resolution passed by a county fiscal body under subsection
(b) may:
(1) expire on a date specified in the resolution; or
(2) remain in effect until the county fiscal body revokes or
rescinds the resolution.
As added by P.L.96-1995, SEC.2. Amended by P.L.1-1996, SEC.47;
P.L.70-2001, SEC.1.
IC 6-3.5-1.1-1.5
Time within which to adopt ordinance; effective date of ordinances
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 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 October 1 of the current year.
(2) An ordinance adopted after September 30 and before
October 16 of the current year takes effect November 1 of the
current 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) 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.
As added by P.L.113-2010, SEC.61.
IC 6-3.5-1.1-2
Authorization; rate of tax; form and adoption of ordinance
Sec. 2. (a) The county council of any county in which the county
option income tax will not be in effect on October 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 effective July 1 of that year.
(b) Except as provided in section 2.3, 2.5, 2.6, 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, after March 31 but before August 1 of a year, 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. This tax takes
effect October 1 of this year.".
(d) Any ordinance adopted under this section takes effect October
1 of the year the ordinance is adopted.
(e) The auditor of a county shall record all votes taken on
ordinances presented for a vote under the authority of this section
and immediately send a certified copy of the results to the
department by certified mail.
(f) 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.
As added by P.L.73-1983, SEC.2. Amended by P.L.44-1984, SEC.13;
P.L.3-1990, SEC.24; P.L.35-1990, SEC.12; P.L.42-1994, SEC.1;
P.L.119-1998, SEC.6; P.L.135-2001, SEC.1; P.L.178-2002, SEC.52;
P.L.42-2003, SEC.1; P.L.162-2006, SEC.27; P.L.224-2007, SEC.54.
IC 6-3.5-1.1-2.3
Jasper County; additional tax rate for criminal justice facilities
Sec. 2.3. (a) This section applies to Jasper County.
(b) The county council may, by ordinance, determine that
additional county adjusted gross income tax revenue is needed in the
county to:
(1) finance, construct, acquire, improve, renovate, or equip:
(A) jail facilities;
(B) juvenile court, detention, and probation facilities;
(C) other criminal justice facilities; and
(D) related buildings and parking facilities;
located in the county, including costs related to the demolition
of existing buildings and the acquisition of land; and
(2) repay bonds issued or leases entered into for the purposes
described in subdivision (1).
(c) The county council may, by ordinance, determine that
additional county adjusted gross income tax revenue is needed in the
county to operate or maintain any of the facilities described in
subsection (b)(1)(A) through (b)(1)(D) that are located in the county.
The county council may make a determination under both this
subsection and subsection (b).
(d) In addition to the rates permitted by section 2 of this chapter,
the county council may impose the county adjusted gross income tax
at a rate of:
(1) fifteen-hundredths percent (0.15%);
(2) two-tenths percent (0.2%); or
(3) twenty-five hundredths percent (0.25%);
on the adjusted gross income of county taxpayers if the county
council makes a finding and determination set forth in subsection (b)
or (c).
(e) If the county council imposes the tax under this section to pay
for the purposes described in both subsections (b) and (c), when:
(1) the financing, construction, acquisition, improvement,
renovation, and equipping described in subsection (b) are
completed; and
(2) all bonds issued or leases entered into to finance the
construction, acquisition, improvement, renovation, and
equipping described in subsection (b) are fully paid;
the county council shall, subject to subsection (d), establish a tax rate
under this section by ordinance such that the revenue from the tax
does not exceed the costs of operating and maintaining the jail
facilities described in subsection (b)(1)(A). The tax rate may not be
imposed at a rate greater than is necessary to carry out the purposes
described in subsections (b) and (c), as applicable.
(f) An ordinance adopted under this section before August 1 in a
year applies to the imposition of county income taxes after
September 30 in that year. An ordinance adopted under this section
after July 31 of a year initially applies to the imposition of county
option income taxes after September 30 of the immediately following
year.
(g) The tax imposed under this section may be imposed only until
the latest of the following:
(1) The date on which the financing, construction, acquisition,
improvement, renovation, and equipping described in
subsection (b) are completed.
(2) The date on which the last of any bonds issued or leases
entered into to finance the construction, acquisition,
improvement, renovation, and equipping described in
subsection (b) are fully paid.
(3) The date on which an ordinance adopted under subsection
(c) is rescinded.
(h) The term of the bonds issued (including any refunding bonds)
or a lease entered into under subsection (b)(2) may not exceed twenty
(20) years.
(i) The county treasurer shall establish a criminal justice facilities
revenue fund to be used only for purposes described in this section.
County adjusted gross income tax revenues derived from the tax rate
imposed under this section shall be deposited in the criminal justice
facilities revenue fund before making a certified distribution under
section 11 of this chapter.
(j) County adjusted gross income tax revenues derived from the
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 to the repayment of bonds issued or leases
entered into for any or all the purposes described in subsection
(b).
(k) Notwithstanding any other law, money remaining in the
criminal justice facilities revenue fund established under subsection
(i) after the tax imposed by this section is terminated under
subsection (g) shall be transferred to the county highway fund to be
used for construction, resurfacing, restoration, and rehabilitation of
county highways, roads, and bridges.
As added by P.L.162-2006, SEC.28. Amended by P.L.1-2007,
SEC.59; P.L.224-2007, SEC.55.
IC 6-3.5-1.1-2.5
Additional tax for jail and juvenile detention center in county with
population between 41,000 and 43,000
Sec. 2.5. (a) This section applies only to a county having a
population of more than forty-one thousand (41,000) but less than
forty-three thousand (43,000).
(b) As used in this section, "fiscal year" means a twelve (12)
month period beginning July 1 and ending June 30.
(c) The county council of a county described in subsection (a)
may, by ordinance, determine that additional county adjusted gross
income tax revenue is needed in the county to fund the operation and
maintenance of a jail and juvenile detention center opened after July
1, 1998.
(d) Notwithstanding section 2 of this chapter, if the county
council adopts an ordinance under subsection (c), the county council
may impose the county adjusted gross income tax at a rate of one and
one-tenth percent (1.1%) on adjusted gross income for fiscal years
beginning before July 1, 2011. For fiscal years beginning after June
30, 2011, the rate is reduced to one percent (1%). If the county
council imposes the county adjusted gross income tax at a rate of one
and one-tenth percent (1.1%), the county council may decrease the
rate or rescind the tax in the manner provided under this chapter.
(e) If a county imposes the county adjusted gross income tax at a
rate of one and one-tenth percent (1.1%) under this section, the
revenue derived from a tax rate of one-tenth percent (0.1%) on
adjusted gross income:
(1) shall be paid to the county treasurer;
(2) may be used only to pay the costs of operating a jail and
juvenile detention center opened after July 1, 1998; and
(3) 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.
As added by P.L.119-1998, SEC.7. Amended by P.L.89-2001, SEC.3;
P.L.90-2002, SEC.289; P.L.184-2006, SEC.5.
IC 6-3.5-1.1-2.6
Parke County; additional tax rate for capital trial expenses
Sec. 2.6. (a) This section applies to Parke County.
(b) The county council may, by ordinance, determine that
additional county adjusted gross income tax revenue is needed in the
county to:
(1) fund the costs (including pre-trial costs) of a capital trial that
has been moved to another county for trial; and
(2) to repay money borrowed for the purpose described in
subdivision (1).
(c) In addition to the rates permitted by section 2 of this chapter,
if the county council makes a determination described in subsection
(b), the county council may by ordinance impose the county adjusted
gross income tax at a rate not to exceed the lesser of:
(1) a rate necessary to carry out the purposes of subsection (b);
or
(2) twenty-five hundredths percent (0.25%);
on the adjusted gross income of county taxpayers.
(d) The tax imposed under this section may be imposed only until
the later of the following:
(1) The date on which the costs described in subsection (b),
including the repayment of money borrowed for the purposes
described in subsection (b), are fully paid.
(2) The date on which an ordinance adopted under subsection
(c) is rescinded.
(e) The term of any borrowing described in subsection (b)(2) may
not exceed three (3) years.
(f) The county treasurer shall establish a capital trial revenue fund
to be used only for purposes described in this section. County
adjusted gross income tax revenues derived from the tax rate
imposed under this section shall be deposited in the capital trial
revenue fund before making a certified distribution under section 11
of this chapter.
(g) County adjusted gross income tax revenues derived from the
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 payment of costs described in
subsection (b).
(h) Notwithstanding any other law, money remaining in the
capital trial revenue fund established under subsection (f) after the
tax imposed by this section is terminated under subsection (d) shall
be transferred to the county general fund to be used for criminal
justice costs.
As added by P.L.224-2007, SEC.56.
IC 6-3.5-1.1-2.7
Additional county adjusted gross income tax in county with
population between 71,000 and 71,400
Sec. 2.7. (a) This section applies to a county having a population
of more than seventy-one thousand (71,000) but less than
seventy-one thousand four hundred (71,400).
(b) The county council may, by ordinance, determine that
additional county adjusted gross income tax revenue is needed in the
county to:
(1) finance, construct, acquire, improve, renovate, or equip the
county jail and related buildings and parking facilities,
including costs related to the demolition of existing buildings
and the acquisition of land; and
(2) repay bonds issued, or leases entered into, for constructing,
acquiring, improving, renovating, and equipping the county jail
and related buildings and parking facilities, including costs
related to the demolition of existing buildings and the
acquisition of land.
(c) In addition to the rates permitted by section 2 of this chapter,
the county council may impose the county adjusted gross income tax
at a rate of:
(1) fifteen-hundredths percent (0.15%);
(2) two-tenths percent (0.2%); or
(3) twenty-five hundredths percent (0.25%);
on the adjusted gross income of county taxpayers if the county
council makes the finding and determination set forth in subsection
(b). The tax imposed under this section may be imposed only until
the later of the date on which the financing on, acquisition,
improvement, renovation, and equipping described in subsection (b)
is completed or the date on which the last of any bonds issued or
leases entered into to finance the construction, acquisition,
improvement, renovation, and equipping described in subsection (b)
are fully paid. The term of the bonds issued (including any refunding
bonds) or a lease entered into under subsection (b)(2) may not
exceed twenty (20) years.
(d) If the county council makes a determination under subsection
(b), the county council may adopt a tax rate under subsection (c). The
tax rate may not be imposed at a rate greater than is necessary to pay
the costs of financing, acquiring, improving, renovating, and
equipping the county jail and related buildings and parking facilities,
including costs related to the demolition of existing buildings and the
acquisition of land.
(e) The county treasurer shall establish a county jail revenue fund
to be used only for purposes described in this section. County
adjusted gross 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 11
of this chapter.
(f) County adjusted gross income tax revenues derived from the
tax rate imposed under this section:
(1) may only be used 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 to the repayment of bonds issued, or leases
entered into, for purposes described in subsection (b).
(g) A county described in subsection (a) possesses unique
economic development challenges due to underemployment in
relation to similarly situated counties. Maintaining low property tax
rates is essential to economic development and the use of county
adjusted gross income tax revenues as provided in this chapter to pay
any bonds issued or leases entered into to finance the construction,
acquisition, improvement, renovation, and equipping described under
subsection (b), rather than use of property taxes, promotes that
purpose.
(h) Notwithstanding any other law, funds accumulated from the
county adjusted gross income tax imposed under this section after:
(1) the redemption of bonds issued; or
(2) the final payment of lease rentals due under a lease entered
into under this section;
shall be transferred to the county highway fund to be used for
construction, resurfacing, restoration, and rehabilitation of county
highways, roads, and bridges.
As added by P.L.135-2001, SEC.2. Amended by P.L.1-2002, SEC.33
and P.L.90-2002, SEC.290.
IC 6-3.5-1.1-2.8
Additional rate for criminal justice facilities; fund; use of
additional revenue; balance transfer to county highway fund
Sec. 2.8. (a) This section applies to:
(1) a county having a population of more than one hundred
eighty-two thousand seven hundred ninety (182,790) but less
than two hundred thousand (200,000); and
(2) a county having a population of more than forty-five
thousand (45,000) but less than forty-five thousand nine
hundred (45,900).
(b) The county council may, by ordinance, determine that
additional county adjusted gross income tax revenue is needed in the
county to:
(1) finance, construct, acquire, improve, renovate, or equip:
(A) jail facilities;
(B) juvenile court, detention, and probation facilities;
(C) other criminal justice facilities; and
(D) related buildings and parking facilities;
located in the county, including costs related to the demolition
of existing buildings and the acquisition of land; and
(2) repay bonds issued or leases entered into for the purposes
described in subdivision (1).
(c) The county council may, by ordinance, determine that
additional county adjusted gross income tax revenue is needed in the
county to operate or maintain:
(1) jail facilities;
(2) juvenile court, detention, and probation facilities;
(3) other criminal justice facilities; and
(4) related buildings and parking facilities;
located in the county. A county council of a county described in
subsection (a)(1) or (a)(2) may make a determination under both this
subsection and subsection (b).
(d) In addition to the rates permitted by section 2 of this chapter,
the county council may impose the county adjusted gross income tax
at a rate of:
(1) fifteen-hundredths percent (0.15%);
(2) two-tenths percent (0.2%); or
(3) twenty-five hundredths percent (0.25%);
on the adjusted gross income of county taxpayers if the county
council makes a finding and determination set forth in subsection (b)
or (c). The tax rate may not be imposed at a rate greater than is
necessary to carry out the purposes described in subsections (b) and
(c), as applicable.
(e) This subsection applies only to a county described in
subsection (a)(1). If the county council imposes the tax under this
section to pay for the purposes described in both subsections (b) and
(c), when:
(1) the financing, construction, acquisition, improvement,
renovation, and equipping described in subsection (b) are
completed; and
(2) all bonds issued (including any refunding bonds) or leases
entered into to finance the construction, acquisition,
improvement, renovation, and equipping described in
subsection (b) are fully paid;
the county council shall, subject to subsection (d), establish a tax rate
under this section by ordinance such that the revenue from the tax
does not exceed the costs of operating and maintaining the jail
facilities referred to in subsection (b)(1)(A).
(f) The tax imposed under this section may be imposed only until
the last of the following dates:
(1) The date on which the financing, construction, acquisition,
improvement, renovation, and equipping described in
subsection (b) are completed.
(2) The date on which the last of any bonds issued (including
any refunding bonds) or leases entered into to finance the
construction, acquisition, improvement, renovation, and
equipping described in subsection (b) are fully paid.
(3) If the county imposing the tax under this section is a county
described in subsection (a)(1), the date on which an ordinance
adopted under subsection (c) is rescinded.
(g) The term of the bonds issued (including any refunding bonds)
or a lease entered into under subsection (b)(2) may not exceed twenty
(20) years.
(h) The county treasurer shall establish a criminal justice facilities
revenue fund to be used only for purposes described in this section.
County adjusted gross income tax revenues derived from the tax rate
imposed under this section shall be deposited in the criminal justice
facilities revenue fund before making a certified distribution under
section 11 of this chapter.
(i) County adjusted gross income tax revenues derived from the
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 to the repayment of bonds issued or leases
entered into for any or all the purposes described in subsection
(b).
(j) Notwithstanding any other law, money remaining in the
criminal justice facilities revenue fund established under subsection
(h) after the tax imposed by this section is terminated under
subsection (f) shall be transferred to the county highway fund to be
used for construction, resurfacing, restoration, and rehabilitation of
county highways, roads, and bridges.
As added by P.L.178-2002, SEC.53. Amended by P.L.147-2006,
SEC.1.
IC 6-3.5-1.1-2.9
Additional rate for county jail facilities; fund; use of additional
revenue; balance transfer to county highway fund
Sec. 2.9. (a) This section applies to a county having a population
of more than twenty-nine thousand (29,000) but less than thirty
thousand (30,000).
(b) The county council may, by ordinance, determine that
additional county adjusted gross income tax revenue is needed in the
county to:
(1) finance, construct, acquire, improve, renovate, remodel, or
equip the county jail and related buildings and parking
facilities, including costs related to the demolition of existing
buildings, the acquisition of land, and any other reasonably
related costs; and
(2) repay bonds issued or leases entered into for constructing,
acquiring, improving, renovating, remodeling, and equipping
the county jail and related buildings and parking facilities,
including costs related to the demolition of existing buildings,
the acquisition of land, and any other reasonably related costs.
(c) In addition to the rates permitted by section 2 of this chapter,
the county council may impose the county adjusted gross income tax
at a rate of:
(1) fifteen-hundredths percent (0.15%);
(2) two-tenths percent (0.2%); or
(3) twenty-five hundredths percent (0.25%);
on the adjusted gross income of county taxpayers if the county
council makes the finding and determination set forth in subsection
(b). The tax imposed under this section may be imposed only until
the later of the date on which the financing on, acquisition,
improvement, renovation, remodeling, and equipping described in
subsection (b) are completed or the date on which the last of any
bonds issued or leases entered into to finance the construction,
acquisition, improvement, renovation, remodeling, and equipping
described in subsection (b) are fully paid. The term of the bonds
issued (including any refunding bonds) or a lease entered into under
subsection (b)(2) may not exceed twenty-five (25) years.
(d) If the county council makes a determination under subsection
(b), the county council may adopt a tax rate under subsection (c). The
tax rate may not be imposed at a rate greater than is necessary to pay
the costs of financing, acquiring, improving, renovating, remodeling,
and equipping the county jail and related buildings and parking
facilities, including costs related to the demolition of existing
buildings, the acquisition of land, and any other reasonably related
costs.
(e) The county treasurer shall establish a county jail revenue fund
to be used only for purposes described in this section. County
adjusted gross 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 11
of this chapter.
(f) County adjusted gross income tax revenues derived from the
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 to the repayment of bonds issued or leases
entered into for purposes described in subsection (b).
(g) A county described in subsection (a) possesses unique
governmental and economic development challenges due to:
(1) underemployment in relation to similarly situated counties
and the loss of a major manufacturing business;
(2) an increase in property taxes for taxable years after
December 31, 2000, for the construction of a new elementary
school; and
(3) overcrowding of the county jail, the costs associated with
housing the county's inmates outside the county, and the
potential unavailability of additional housing for inmates
outside the county.
The use of county adjusted gross income tax revenues as provided in
this chapter is necessary for the county to provide adequate jail
capacity in the county and to maintain low property tax rates
essential to economic development. The use of county adjusted gross
income tax revenues as provided in this chapter to pay any bonds
issued or leases entered into to finance the construction, acquisition,
improvement, renovation, remodeling, and equipping described in
subsection (b), rather than the use of property taxes, promotes those
purposes.
(h) Notwithstanding any other law, funds accumulated from the
county adjusted gross income tax imposed under this section after:
(1) the redemption of bonds issued; or
(2) the final payment of lease rentals due under a lease entered
into under this section;
shall be transferred to the county highway fund to be used for
construction, resurfacing, restoration, and rehabilitation of county
highways, roads, and bridges.
As added by P.L.178-2002, SEC.54. Amended by P.L.1-2003,
SEC.39.
IC 6-3.5-1.1-3
Increase of tax rate; ordinance; requisites
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, after March
31 but before August 1 of a year, 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 (___%). This tax rate increase takes effect
October 1 of this year.".
(b) Any ordinance adopted under this section takes effect October
1 of the year the ordinance is adopted.
(c) The auditor of a county shall record all votes taken on
ordinances presented for a vote under the authority of this section
and immediately send a certified copy of the results to the
department by certified mail.
As added by P.L.73-1983, SEC.2. Amended by P.L.35-1990, SEC.13;
P.L.224-2007, SEC.57.
IC 6-3.5-1.1-3.1
Decrease in county adjusted gross income tax rate; adoption of
ordinance; procedures
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, after
March 31 but before August 1 of a year, 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 (___%). This tax rate decrease takes effect October 1 of
this year.".
(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) Any ordinance adopted under this section takes effect October
1 of the year the ordinance is adopted.
(d) The auditor of a county shall record all votes taken on
ordinances presented for a vote under the authority of this section
and immediately send a certified copy of the results to the
department by certified mail.
(e) Notwithstanding IC 6-3.5-7, and except as provided in
subsection (f), 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.
(f) This subsection applies only to a county having a population
of more than one hundred ten thousand (110,000) but less than one
hundred fifteen thousand (115,000). 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.
As added by P.L.42-1994, SEC.2. Amended by P.L.10-1997, SEC.13;
P.L.170-2002, SEC.26; P.L.224-2007, SEC.58.
IC 6-3.5-1.1-3.3
Additional rate for jail facilities in county subject to federal court
order; use of additional revenues
Sec. 3.3. (a) This section applies only to a county that:
(1) operates a county jail that is subject to an order that:
(A) was issued by a federal district court before January 1,
2003; and
(B) has not been terminated;
(2) operates a county jail that fails to meet:
(A) American Correctional Association Jail Construction
Standards; and
(B) Indiana jail operation standards adopted by the
department of correction; and
(3) has insufficient revenue to finance the construction,
acquisition, improvement, renovation, and equipping of a
county jail and related buildings and parking facilities.
(b) For purposes of this section, "county jail" includes any other
penal facility that is:
(1) located in; and
(2) operated by;
the county.
(c) The county council may, by ordinance, determine that
additional county adjusted gross income tax revenue is needed in the
county to:
(1) finance, construct, acquire, improve, renovate, or equip a
county jail and related buildings and parking facilities,
including costs related to the demolition of existing buildings
and the acquisition of land; and
(2) repay bonds issued or leases entered into for constructing,
acquiring, improving, renovating, and equipping the county jail
and related buildings and parking facilities, including costs
related to the demolition of existing buildings and the
acquisition of land.
(d) In addition to the rates permitted by section 2 of this chapter,
the county council may impose the county adjusted gross income tax
at a rate of twenty-five hundredths percent (0.25%) on the adjusted
gross income of county taxpayers if the county council makes the
finding and determination set forth in subsection (c). The tax
imposed under this section may be imposed only until the later of the
date on which the financing on acquisition, improvement, renovation,
and equipping described in subsection (c) is completed or the date on
which the last of any bonds issued or leases entered into to finance
the construction, acquisition, improvement, renovation, and
equipping described in subsection (c) are fully paid. The term of the
bonds issued (including any refunding bonds) or a lease entered into
under subsection (c)(2) may not exceed thirty (30) years.
(e) If the county council makes a determination under subsection
(c), the county council may adopt a tax rate under subsection (d). The
tax rate may not be imposed at a rate greater than is necessary to pay
the costs of financing, acquiring, improving, renovating, and
equipping the county jail and related buildings and parking facilities,
including costs related to the demolition of existing buildings and the
acquisition of land.
(f) The county treasurer shall establish a county jail revenue fund
to be used only for purposes described in this section. County
adjusted gross 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 11
of this chapter.
(g) County adjusted gross income tax revenues derived from the
tax rate imposed under this section:
(1) may only be used for 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 to the repayment of bonds issued or leases
entered into for purposes described in subsection (c).
(h) A county described in subsection (a) possesses unique
economic development challenges due to underemployment in
relation to similarly situated counties. Maintaining low property tax
rates is essential to economic development. The use of county
adjusted gross income tax revenues as provided in this chapter, rather
than use of property taxes, to pay any bonds issued or leases entered
into to finance the construction, acquisition, improvement,
renovation, and equipping described in subsection (c) promotes that
purpose.
(i) Notwithstanding any other law, funds accumulated from the
county adjusted gross income tax imposed under this section after:
(1) the redemption of bonds issued; or
(2) the final payment of lease rentals due under a lease entered
into under this section;
shall be transferred to the county general fund.
As added by P.L.42-2003, SEC.2.
IC 6-3.5-1.1-3.5
Additional tax for jail and justice center in county with population
between 13,500 and 14,000
Sec. 3.5. (a) This section applies only to a county having a
population of more than thirteen thousand five hundred (13,500) but
less than fourteen thousand (14,000).
(b) The county council of a county described in subsection (a)
may, by ordinance, determine that additional county adjusted gross
income tax revenue is needed in the county to fund the operation and
maintenance of a jail and justice center.
(c) Notwithstanding section 2 of this chapter, if the county council
adopts an ordinance under subsection (b), the county council may
impose the county adjusted gross income tax at a rate of one and
three-tenths percent (1.3%) on adjusted gross income. However, a
county may impose the county adjusted gross income tax at a rate of
one and three-tenths percent (1.3%) for only eight (8) years. After the
county has imposed the county adjusted gross income tax at a rate of
one and three-tenths percent (1.3%) for eight (8) years, the rate is
reduced to one percent (1%). If the county council imposes the
county adjusted gross income tax at a rate of one and three-tenths
percent (1.3%), the county council may decrease the rate or rescind
the tax in the manner provided under this chapter.
(d) If a county imposes the county adjusted gross income tax at a
rate of one and three-tenths percent (1.3%) under this section, the
revenue derived from a tax rate of three-tenths percent (0.3%) on
adjusted gross income:
(1) shall be paid to the county treasurer;
(2) may be used only to pay the costs of operating and
maintaining a jail and justice center; and
(3) may not be considered by the department of local
government finance under any provision of IC 6-1.1-18.5,
including the determination of the county's maximum
permissible property tax levy.
As added by P.L.119-1998, SEC.8. Amended by P.L.89-2001, SEC.4;
P.L.90-2002, SEC.291; P.L.224-2007, SEC.59.
IC 6-3.5-1.1-3.6
Additional rate for county courthouse; fund; use of additional
revenue; balance transfer to county highway fund
Sec. 3.6. (a) This section applies only to a county having a
population of more than six thousand (6,000) but less than eight
thousand (8,000).
(b) The county council may, by ordinance, determine that
additional county adjusted gross income tax revenue is needed in the
county to:
(1) finance, construct, acquire, improve, renovate, or equip the
county courthouse; and
(2) repay bonds issued, or leases entered into, for constructing,
acquiring, improving, renovating, and equipping the county
courthouse.
(c) In addition to the rates permitted under section 2 of this
chapter, the county council may impose the county adjusted gross
income tax at a rate of twenty-five hundredths percent (0.25%) on
the adjusted gross income of county taxpayers if the county council
makes the finding and determination set forth in subsection (b). The
tax imposed under this section may be imposed only until the later of
the date on which the financing on, acquisition, improvement,
renovation, and equipping described in subsection (b) is completed
or the date on which the last of any bonds issued or leases entered
into to finance the construction, acquisition, improvement,
renovation, and equipping described in subsection (b) are fully paid.
The term of the bonds issued (including any refunding bonds) or a
lease entered into under subsection (b)(2) may not exceed
twenty-two (22) years.
(d) If the county council makes a determination under subsection
(b), the county council may adopt a tax rate under subsection (c). The
tax rate may not be imposed for a time greater than is necessary to
pay the costs of financing, constructing, acquiring, renovating, and
equipping the county courthouse.
(e) The county treasurer shall establish a county courthouse
revenue fund to be used only for purposes described in this section.
County adjusted gross income tax revenues derived from the tax rate
imposed under this section shall be deposited in the county
courthouse revenue fund before a certified distribution is made under
section 11 of this chapter.
(f) County adjusted gross income tax revenues derived from the
tax rate imposed under this section:
(1) may only be used 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 under IC 6-1.1-18.5; and
(3) may be pledged to the repayment of bonds issued or leases
entered into for purposes described in subsection (b).
(g) A county described in subsection (a) possesses unique
economic development challenges due to:
(1) the county's heavy agricultural base;
(2) the presence of a large amount of state owned property in
the county that is exempt from property taxation; and
(3) recent obligations of the school corporation in the county
that have already increased property taxes in the county and
imposed additional property tax burdens on the county's
agricultural base.
Maintaining low property tax rates is essential to economic
development. The use of county adjusted gross income tax revenues
as provided in this chapter to pay any bonds issued or leases entered
into to finance the construction, acquisition, improvement,
renovation, and equipping described in subsection (b), rather than the
use of property taxes, promotes that purpose.
(h) Notwithstanding any other law, funds accumulated from the
county adjusted gross income tax imposed under this section after:
(1) the redemption of the bonds issued; or
(2) the final payment of lease rentals due under a lease entered
into under this section;
shall be transferred to the county highway fund to be used for
construction, resurfacing, restoration, and rehabilitation of county
highways, roads, and bridges.
As added by P.L.178-2002, SEC.55. Amended by P.L.1-2003,
SEC.40; P.L.97-2004, SEC.29.
IC 6-3.5-1.1-4
Duration of tax; rescission of tax; ordinance
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 (e), the county council may
rescind the county adjusted gross income tax by adopting an
ordinance to rescind the tax after March 31 but before August 1 of
a year.
(c) Any ordinance adopted under this section takes effect October
1 of the year the ordinance is adopted.
(d) The auditor of a county shall record all votes taken on
ordinances presented for a vote under the authority of this section
and immediately send a certified copy of the results to the
department by certified mail.
(e) 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.
As added by P.L.73-1983, SEC.2. Amended by P.L.35-1990, SEC.14;
P.L.224-2007, SEC.60.
IC 6-3.5-1.1-5
Tax in effect part of year; computation
Sec. 5. (a) Except as provided in subsections (b) through (c), if the
county adjusted gross income tax is not in effect during a county
taxpayer's entire taxable year, then the amount of county adjusted
gross income tax that the county taxpayer owes for that taxable year
equals the product of:
(1) the amount of county adjusted gross income tax the county
taxpayer would owe if the tax had been imposed during the
county taxpayer's entire taxable year; multiplied by
(2) a fraction:
(A) The numerator of the fraction equals the number of days
during the county taxpayer's taxable year during which the
county adjusted gross income tax was in effect.
(B) The denominator of the fraction equals the total number
of days in the county taxpayer's taxable year.
(b) If a county taxpayer:
(1) is unemployed for a part of the taxpayer's taxable year;
(2) was not discharged for just cause (as defined in
IC 22-4-15-1(e)); and
(3) has no earned income for the part of the taxpayer's taxable
year that the tax was in effect;
the county taxpayer's adjusted gross income for the taxable year is
reduced by the amount of the taxpayer's earned income for the
taxable year.
(c) A taxpayer who qualifies under subsection (b) must file a
claim for a refund for the difference between the county adjusted
gross income tax owed, as determined under subsection (a), and the
tax owed, as determined under subsection (b). A claim for a refund
must be on a form approved by the department and include all
supporting documentation reasonably required by the department.
As added by P.L.73-1983, SEC.2. Amended by P.L.96-1987, SEC.1.
IC 6-3.5-1.1-6
Credit for taxes imposed by governmental entities outside Indiana
Sec. 6. (a) Except as provided in subsection (b), if for a particular
taxable year a county taxpayer is liable for an income tax imposed by
a county, city, town, or other local governmental entity located
outside of Indiana, that county taxpayer is entitled to a credit against
his county adjusted gross income tax liability for that same taxable
year. The amount of the credit equals the amount of tax imposed by
the other governmental entity on income derived from sources
outside Indiana and subject to the county adjusted gross income tax.
However, the credit provided by this section may not reduce a county
taxpayer's county adjusted gross income tax liability to an amount
less than would have been owed if the income subject to taxation by
the other governmental entity had been ignored.
(b) The credit provided by this section does not apply to a county
taxpayer to the extent that the other governmental entity provides for
a credit to the taxpayer for the amount of county adjusted gross
income taxes owed under this chapter.
(c) To claim the credit provided by this section, a county taxpayer
must provide the department with satisfactory evidence that he is
entitled to the credit.
As added by P.L.73-1983, SEC.2.
IC 6-3.5-1.1-7
Credit for the elderly and persons with a total disability;
computation
Sec. 7. (a) If for a particular taxable year a county taxpayer is, or
a county taxpayer and the taxpayer's spouse who file a joint return
are, allowed a credit for the elderly or individuals with a total
disability under Section 22 of the Internal Revenue Code, the county
taxpayer is, or the county taxpayer and the taxpayer's spouse are,
entitled to a credit against the taxpayer's or the taxpayer's and the
taxpayer's spouse's county adjusted gross income tax liability for that
same taxable year. The amount of the credit equals the lesser of:
(1) the product of:
(A) the taxpayer's or the taxpayer's and the taxpayer's
spouse's credit for the elderly or individuals with a total
disability for that same taxable year; multiplied by
(B) a fraction, the numerator of which is the county adjusted
gross income tax rate imposed against the county taxpayer,
or the county taxpayer and the taxpayer's spouse, and the
denominator of which is fifteen hundredths (0.15); or
(2) the amount of county adjusted gross income tax imposed on
the county taxpayer, or the county taxpayer and the taxpayer's
spouse.
(b) If a county taxpayer and the taxpayer's spouse file a joint
return and are subject to different county adjusted gross income tax
rates for the same taxable year, they shall compute the credit under
this section by using the formula provided by subsection (a), except
that they shall use the average of the two (2) county adjusted gross
income tax rates imposed against them as the numerator referred to
in subsection (a)(1)(B).
As added by P.L.73-1983, SEC.2. Amended by P.L.23-1986, SEC.5;
P.L.63-1988, SEC.9; P.L.99-2007, SEC.27.
IC 6-3.5-1.1-8
Accounts in state general fund; deposits
Sec. 8. (a) A special account within the state general fund shall be
established for each county adopting the county adjusted gross
income tax. Any revenue derived from the imposition of the county
adjusted gross income tax by a county shall be deposited in that
county's account in the state general fund.
(b) Any income earned on money held in an account under
subsection (a) becomes a part of that account.
(c) Any revenue remaining in an account established under
subsection (a) at the end of a fiscal year does not revert to the state
general fund.
As added by P.L.73-1983, SEC.2.
IC 6-3.5-1.1-9
Calculation of certified distribution; summary of calculation;
notice to county auditor
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 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), (g), and (h). 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 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) The budget agency shall adjust the certified distribution of a
county to provide the county with the distribution required under
section 10(b) of this chapter.
(f) 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 of the calendar year. The
adjustment shall reflect any other adjustment required under
subsections (c), (d), (e), (g), and (h). 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.
(g) 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.
(h) 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).
As added by P.L.73-1983, SEC.2. Amended by P.L.23-1986, SEC.6;
P.L.267-2003, SEC.3; P.L.207-2005, SEC.2; P.L.224-2007, SEC.61;
P.L.146-2008, SEC.327; P.L.182-2009(ss), SEC.210; P.L.113-2010,
SEC.62.
IC 6-3.5-1.1-9.5
Repealed
(Repealed by P.L.267-2003, SEC.16.)
IC 6-3.5-1.1-10
Distribution of revenue; time; use
Sec. 10. (a) Except as provided in subsection (b), one-half (1/2)
of each adopting county's certified distribution for a calendar year
shall be distributed from its account established under section 8 of
this chapter to the appropriate county treasurer on May 1 and the
other one-half (1/2) on November 1 of that calendar year.
(b) This subsection applies to a county having a population of
more than one hundred forty-five thousand (145,000) but less than
one hundred forty-eight thousand (148,000). Notwithstanding section
9 of this chapter, the initial certified distribution certified for a
county under section 9 of this chapter shall be distributed to the
county treasurer from the account established for the county under
section 8 of this chapter according to the following schedule during
the eighteen (18) month period beginning on July 1 of the year in
which the county initially adopts an ordinance under section 2 of this
chapter:
(1) One-fourth (1/4) on October 1 of the calendar year in which
the ordinance was adopted.
(2) One-fourth (1/4) on January 1 of the calendar year following
the year in which the ordinance was adopted.
(3) One-fourth (1/4) on May 1 of the calendar year following
the year in which the ordinance was adopted.
(4) One-fourth (1/4) on November 1 of the calendar year
following the year in which the ordinance was adopted.
Notwithstanding section 11 of this chapter, the part of the certified
distribution received under subdivision (1) that would otherwise be
allocated to a civil taxing unit or school corporation as property tax
replacement credits under section 11 of this chapter shall be set aside
and treated for the calendar year when received by the civil taxing
unit or school corporation as a levy excess subject to
IC 6-1.1-18.5-17 or IC 20-44-3. Certified distributions made to the
county treasurer for calendar years following the eighteen (18) month
period described in this subsection shall be made as provided in
subsection (a).
(c) Except for:
(1) revenue that must be used to pay the costs of:
(A) financing, constructing, acquiring, improving,
renovating, equipping, operating, or maintaining facilities
and buildings;
(B) debt service on bonds; or
(C) lease rentals;
under section 2.3 of this chapter;
(2) revenue that must be used to pay the costs of operating a jail
and juvenile detention center under section 2.5(d) of this
chapter;
(3) revenue that must be used to pay the costs of:
(A) financing, constructing, acquiring, improving,
renovating, equipping, operating, or maintaining facilities
and buildings;
(B) debt service on bonds; or
(C) lease rentals;
under section 2.8 of this chapter;
(4) revenue that must be used to pay the costs of construction,
improvement, renovation, or remodeling of a jail and related
buildings and parking structures under section 2.7, 2.9, or 3.3 of
this chapter;
(5) revenue that must be used to pay the costs of operating and
maintaining a jail and justice center under section 3.5(d) of this
chapter;
(6) revenue that must be used to pay the costs of constructing,
acquiring, improving, renovating, or equipping a county
courthouse under section 3.6 of this chapter;
(7) revenue under section 2.6 of this chapter; or
(8) revenue attributable to a tax rate under section 24, 25, or 26
of this chapter;
distributions made to a county treasurer under subsections (a) and (b)
shall be treated as though they were property taxes that were due and
payable during that same calendar year. Except as provided by
subsection (b) and sections 24, 25, and 26 of this chapter, the
certified distribution shall be distributed and used by the taxing units
and school corporations as provided in sections 11 through 15 of this
chapter.
(d) All distributions from an account established under section 8
of this chapter shall be made by warrants issued by the auditor of the
state to the treasurer of the state ordering the appropriate payments.
As added by P.L.73-1983, SEC.2. Amended by P.L.119-1998, SEC.9;
P.L.135-2001, SEC.3; P.L.157-2002, SEC.2; P.L.178-2002, SEC.57;
P.L.1-2003, SEC.41; P.L.42-2003, SEC.3; P.L.147-2006, SEC.2;
P.L.162-2006, SEC.29; P.L.2-2006, SEC.68; P.L.1-2007, SEC.60;
P.L.224-2007, SEC.62.
IC 6-3.5-1.1-11
Property tax replacement; calculation of certified shares
Sec. 11. (a) Except for:
(1) revenue that must be used to pay the costs of:
(A) financing, constructing, acquiring, improving,
renovating, equipping, operating, or maintaining facilities
and buildings;
(B) debt service on bonds; or
(C) lease rentals;
under section 2.3 of this chapter;
(2) revenue that must be used to pay the costs of operating a jail
and juvenile detention center under section 2.5(d) of this
chapter;
(3) revenue that must be used to pay the costs of:
(A) financing, constructing, acquiring, improving,
renovating, equipping, operating, or maintaining facilities
and buildings;
(B) debt service on bonds; or
(C) lease rentals;
under section 2.8 of this chapter;
(4) revenue that must be used to pay the costs of construction,
improvement, renovation, or remodeling of a jail and related
buildings and parking structures under section 2.7, 2.9, or 3.3 of
this chapter;
(5) revenue that must be used to pay the costs of operating and
maintaining a jail and justice center under section 3.5(d) of this
chapter;
(6) revenue that must be used to pay the costs of constructing,
acquiring, improving, renovating, or equipping a county
courthouse under section 3.6 of this chapter; or
(7) revenue attributable to a tax rate under section 24, 25, or 26
of this chapter;
the certified distribution received by a county treasurer shall, in the
manner prescribed in this section, be allocated, distributed, and used
by the civil taxing units and school corporations of the county as
certified shares and property tax replacement credits.
(b) Before August 10 of each calendar year, each county auditor
shall determine the part of the certified distribution for the next
succeeding calendar year that will be allocated as property tax
replacement credits and the part that will be allocated as certified
shares. The percentage of a certified distribution that will be
allocated as property tax replacement credits or as certified shares
depends upon the county adjusted gross income tax rate for resident
county taxpayers in effect on August 1 of the calendar year that
precedes the year in which the certified distribution will be received
by two (2) years. The percentages are set forth in the following table:
PROPERTY
COUNTY
TAX
ADJUSTED GROSS
REPLACEMENT
CERTIFIED
INCOME TAX RATE
CREDITS
SHARES
0.5%
50%
50%
0.75%
33 1/3%
66 2/3%
1%
25%
75%
(c) The part of a certified distribution that constitutes property tax
replacement credits shall be distributed as provided under sections
12, 13, and 14 of this chapter.
(d) The part of a certified distribution that constitutes certified
shares shall be distributed as provided by section 15 of this chapter.
As added by P.L.73-1983, SEC.2. Amended by P.L.119-1998,
SEC.10; P.L.135-2001, SEC.4; P.L.178-2002, SEC.58; P.L.42-2003,
SEC.4; P.L.267-2003, SEC.4; P.L.147-2006, SEC.3; P.L.162-2006,
SEC.30; P.L.1-2007, SEC.61; P.L.224-2007, SEC.63.
IC 6-3.5-1.1-11.5
Timing of income tax distributions within the county
Sec. 11.5. (a) The county auditor shall timely distribute the part
of the certified distribution received under section 10 of this chapter
that constitutes property tax replacement credits to each civil taxing
unit and school corporation that is a recipient of property tax
replacement credits as provided by sections 12, 13, and 14 of this
chapter.
(b) The county auditor shall timely distribute the part of a
certified distribution received under section 10 of this chapter that
constitutes certified shares to each civil taxing unit that is a recipient
of certified shares as provided by section 15 of this chapter.
(c) A distribution is considered to be timely made if the
distribution is made not later than ten (10) working days after the
date the county treasurer receives the county's certified distribution
under section 10 of this chapter.
As added by P.L.26-2009, SEC.1.
IC 6-3.5-1.1-12
Allocation of property tax replacement credits; amount; formula;
certification
Sec. 12. (a) The part of a county's certified distribution for a
calendar year that is to be used as property tax replacement credits
shall be allocated by the county auditor among the civil taxing units
and school corporations of the county.
(b) Except as provided in section 13 of this chapter, the amount
of property tax replacement credits that each civil taxing unit and
school corporation in a county is entitled to receive during a calendar
year equals the product of:
(1) that part of the county's certified distribution that is
dedicated to providing property tax replacement credits for that
same calendar year; multiplied by
(2) a fraction:
(A) The numerator of the fraction equals the allocation
amount for the civil taxing unit or school corporation during
that calendar year.
(B) The denominator of the fraction equals the sum of the
allocation amounts for all the civil taxing units and school
corporations of the county for that calendar year.
(c) The department of local government finance shall provide
each county auditor with the amount of property tax replacement
credits that each civil taxing unit and school corporation in the
auditor's county is entitled to receive under this section. The county
auditor shall then certify to each civil taxing unit and school
corporation the amount of property tax replacement credits it is
entitled to receive (after adjustment made under section 13 of this
chapter) under this section during that calendar year. The county
auditor shall also certify these distributions to the county treasurer.
As added by P.L.73-1983, SEC.2. Amended by P.L.90-2002,
SEC.293; P.L.207-2005, SEC.3.
IC 6-3.5-1.1-13
Allocation of replacement credits; tax levy not due in same year as
credit distribution; amount; formula; adjustments
Sec. 13. (a) If a civil taxing unit or school corporation of an
adopting county does not impose a property tax levy that is first due
and payable in a calendar year in which property tax replacement
credits are being distributed, that civil taxing unit or school
corporation is entitled to receive a proportion of the property tax
replacement credits to be distributed within the county. The amount
such a civil taxing unit or school corporation is entitled to receive
during that calendar year equals the product of:
(1) the part of the county's certified distribution that is to be
used to provide property tax replacement credits during that
calendar year; multiplied by
(2) a fraction:
(A) The numerator of the fraction equals the budget of that
civil taxing unit or school corporation for that calendar year.
(B) The denominator of the fraction equals the aggregate
budgets of all civil taxing units and school corporations of
that county for that calendar year.
(b) If for a calendar year a civil taxing unit or school corporation
is allocated a proportion of a county's property tax replacement
credits by this section then the formula used in section 12 of this
chapter to determine all other civil taxing units' and school
corporations' property tax replacement credits shall be changed for
that same year by reducing the amount dedicated to providing
property tax replacement credits by the amount of property tax
replacement credits allocated under this section for that same
calendar year. The department of local government finance shall
make any adjustments required by this section and provide them to
the appropriate county auditors.
As added by P.L.73-1983, SEC.2. Amended by P.L.90-2002,
SEC.294.
IC 6-3.5-1.1-14
Replacement credits; determination limited; multiple county
taxing units; effect upon budget, property tax rates, and school
funds
Sec. 14. (a) In determining the amount of property tax
replacement credits civil taxing units and school corporations of a
county are entitled to receive during a calendar year, the department
of local government finance shall consider only property taxes
imposed on tangible property that was assessed in that county.
(b) If a civil taxing unit or a school corporation is located in more
than one (1) county and receives property tax replacement credits
from one (1) or more of the counties, then the property tax
replacement credits received from each county shall be used only to
reduce the property tax rates that are imposed within the county that
distributed the property tax replacement credits.
(c) A civil taxing unit shall treat any property tax replacement
credits that it receives or is to receive during a particular calendar
year as a part of its property tax levy for that same calendar year for
purposes of fixing its budget and for purposes of the property tax
levy limits imposed by IC 6-1.1-18.5.
(d) Subject to subsection (e), if a civil taxing unit or school
corporation of an adopting county does not impose a property tax
levy that is first due and payable in a calendar year in which property
tax replacement credits are being distributed, the civil taxing unit or
school corporation is entitled to use the property tax replacement
credits distributed to the civil taxing unit or school corporation for
any purpose for which a property tax levy could be used.
(e) A school corporation shall treat any property tax replacement
credits that the school corporation receives or is to receive during a
particular calendar year as a part of its property tax levy for its debt
service fund, capital projects fund, transportation fund, and school
bus replacement fund in proportion to the levy for each of these
funds for that same calendar year for purposes of fixing its budget.
A school corporation shall allocate the property tax replacement
credits described in this subsection to all four (4) funds in proportion
to the levy for each fund.
As added by P.L.73-1983, SEC.2. Amended by P.L.25-1995, SEC.56;
P.L.90-2002, SEC.295; P.L.207-2005, SEC.4; P.L.2-2006, SEC.69;
P.L.146-2008, SEC.328; P.L.182-2009(ss), SEC.211.
IC 6-3.5-1.1-15
Attributed allocation amount; allocation of certified shares
Sec. 15. (a) As used in this section, "attributed allocation amount"
of a civil taxing unit for a calendar year means the sum of:
(1) the allocation amount of the civil taxing unit for that
calendar year; plus
(2) the current ad valorem property tax levy of any special
taxing district, authority, board, or other entity formed to
discharge governmental services or functions on behalf of or
ordinarily attributable to the civil taxing unit; plus
(3) in the case of a county, an amount equal to the welfare
allocation amount.
The welfare allocation amount is an amount equal to the sum of the
property taxes imposed by the county in 1999 for the county's
welfare fund and welfare administration fund and, if the county
received a certified distribution under this chapter or IC 6-3.5-6 in
2008, the property taxes imposed by the county in 2008 for the
county's county medical assistance to wards fund, family and
children's fund, children's psychiatric residential treatment services
fund, county hospital care for the indigent fund and children with
special health care needs county fund.
(b) The part of a county's certified distribution that is to be used
as certified shares shall be allocated only among the county's civil
taxing units. Each civil taxing unit of a county is entitled to receive
a certified share during a calendar year in an amount determined in
STEP TWO of the following formula:
STEP ONE: Divide:
(A) the attributed allocation amount of the civil taxing unit
during that calendar year; by
(B) the sum of the attributed allocation amounts of all the
civil taxing units of the county during that calendar year.
STEP TWO: Multiply the part of the county's certified
distribution that is to be used as certified shares by the STEP
ONE amount.
(c) The department of local government finance shall determine
the attributed levies of civil taxing units that are entitled to receive
certified shares during a calendar year. If the ad valorem property tax
levy of any special taxing district, authority, board, or other entity is
attributed to another civil taxing unit under subsection (a)(2), then
the special taxing district, authority, board, or other entity shall not
be treated as having an attributed allocation amount of its own. The
department of local government finance shall certify the attributed
allocation amounts to the appropriate county auditor. The county
auditor shall then allocate the certified shares among the civil taxing
units of the auditor's county.
(d) Certified shares received by a civil taxing unit shall be treated
as additional revenue for the purpose of fixing its budget for the
calendar year during which the certified shares will be received. The
certified shares may be allocated to or appropriated for any purpose,
including property tax relief or a transfer of funds to another civil
taxing unit whose levy was attributed to the civil taxing unit in the
determination of its attributed allocation amount.
As added by P.L.73-1983, SEC.2. Amended by P.L.273-1999,
SEC.69; P.L.283-2001, SEC.2; P.L.120-2002, SEC.2; P.L.255-2003,
SEC.2; P.L.207-2005, SEC.5; P.L.224-2007, SEC.64; P.L.146-2008,
SEC.329; P.L.182-2009(ss), SEC.212.
IC 6-3.5-1.1-16
County residency and place of business or employment;
determination
Sec. 16. (a) For purposes of this chapter, an individual shall be
treated as a resident of the county in which he:
(1) maintains a home if the individual maintains only one (1) in
Indiana;
(2) if subdivision (1) does not apply, is registered to vote;
(3) if neither subdivision (1) or (2) applies, registers his
personal automobile; or
(4) if neither subdivision (1), (2), or (3) applies, spends the
majority of his time spent in Indiana during the taxable year in
question.
(b) The residence or principal place of business or employment of
an individual is to be determined on January 1 of the calendar year
in which the individual's taxable year commences. If an individual
changes the location of his residence or principal place of
employment or business to another county in Indiana during a
calendar year, his liability for county adjusted gross income tax is not
affected.
(c) Notwithstanding subsection (b), if an individual becomes a
county taxpayer for purposes of IC 36-7-27 during a calendar year
because the individual:
(1) changes the location of the individual's residence to a county
in which the individual begins employment or business at a
qualified economic development tax project (as defined in
IC 36-7-27-9); or
(2) changes the location of the individual's principal place of
employment or business to a qualified economic development
tax project and does not reside in another county in which the
county adjusted gross income tax is in effect;
the individual's adjusted gross income attributable to employment or
business at the qualified economic development tax project is taxable
only by the county containing the qualified economic development
tax project.
As added by P.L.73-1983, SEC.2. Amended by P.L.42-1994, SEC.3.
IC 6-3.5-1.1-17
Reciprocity agreements between local governmental entities
Sec. 17. (a) The county council of any adopting county may adopt
an ordinance to enter into reciprocity agreements with the taxing
authority of any city, town, municipality, county, or other similar
local government entity of any other state. Such a reciprocity
agreement must provide that the income of resident county taxpayers
is exempt from income taxation by the other local governmental
entity to the extent that income of the residents of the other local
governmental entity is exempt from the county adjusted gross income
tax in the adopting county.
(b) A reciprocity agreement entered into under subsection (a) may
not become effective until it is also made effective in the other local
governmental entity that is a party to the agreement.
(c) The form and effective date of any reciprocity agreement
described in this section must be approved by the department.
As added by P.L.73-1983, SEC.2.
IC 6-3.5-1.1-18
withholding report
Adjusted gross income tax provisions; applicability; employer's
(1) definitions;
(2) declarations of estimated tax;
(3) filing of returns;
(4) remittances;
(5) incorporation of the provisions of the Internal Revenue
Code;
(6) penalties and interest;
(7) exclusion of military pay credits for withholding; and
(8) exemptions and deductions;
apply to the imposition, collection, and administration of the tax
imposed by this chapter.
(b) The provisions of IC 6-3-1-3.5(a)(6), IC 6-3-3-3, IC 6-3-3-5,
and IC 6-3-5-1 do not apply to the tax imposed by this chapter.
(c) Notwithstanding subsections (a) and (b), each employer shall
report to the department the amount of withholdings attributable to
each county. This report shall be submitted to the department:
(1) each time the employer remits to the department the tax that
is withheld; and
(2) annually along with the employer's annual withholding
report.
As added by P.L.73-1983, SEC.2. Amended by P.L.82-1983, SEC.9;
P.L.23-1986, SEC.7; P.L.57-1997, SEC.4; P.L.146-2008, SEC.330.
IC 6-3.5-1.1-19
Citation to prior law; continued effect of rules
Sec. 19. (a) If a provision of the prior county adjusted gross
income tax law (IC 6-3.5-1) has been replaced in the same form or in
a restated form, by a provision of this chapter, then a citation to the
provision of the prior law shall be construed as a citation to the
corresponding provision of this chapter.
(b) Any rule adopted under, and applicable to, the prior county
adjusted gross income tax law (IC 6-3.5-1) continues in effect under
this chapter if the provisions under which it was adopted and to
which it was applicable were replaced, in the same or restated form,
by corresponding provisions of this chapter.
As added by P.L.73-1983, SEC.2.
IC 6-3.5-1.1-20
IC 6-3.5-1.1-21
SEC.59; P.L.267-2003, SEC.5; P.L.182-2009(ss), SEC.213.
Reserved
Sec. 21. Before October 2 of each year, the budget agency shall
submit a report to each county auditor indicating the balance in the
county's adjusted gross income tax account as of the cutoff date
specified by the budget agency.
As added by P.L.23-1986, SEC.8. Amended by P.L.178-2002,
IC 6-3.5-1.1-21.1
Distribution of excess balance; use
Sec. 21.1. (a) If the budget agency determines that a sufficient
balance exists in a county account in excess of the amount necessary,
when added to other money that will be deposited in the account
after the date of the determination, to make certified distributions to
the county in the ensuing year, the budget agency shall make a
supplemental distribution to a county from the county's adjusted
gross income tax account.
(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.
(c) A determination under this section must be made before
October 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.
As added by P.L.178-2002, SEC.60. Amended by P.L.267-2003,
SEC.6; P.L.182-2009(ss), SEC.214.
IC 6-3.5-1.1-22
Obligations or leases entered into by civil taxing unit; public sale
Sec. 22. Notwithstanding any other law, if a civil taxing unit
desires to issue obligations or enter into leases payable wholly or in
part by the county adjusted gross income tax, the obligations of the
civil taxing unit or any lessor may be sold at public sale in
accordance with IC 5-1-11 or at negotiated sale.
As added by P.L.35-1990, SEC.15.
IC 6-3.5-1.1-23
Pledges
Sec. 23. (a) A pledge of county adjusted gross income tax
revenues under this chapter (other than tax revenue attributable to a
tax rate under section 24, 25, or 26 of this chapter) is enforceable in
accordance with IC 5-1-14.
(b) With respect to obligations for which a pledge has been made
under this chapter, the general assembly covenants with the county
and the purchasers or owners of those obligations that this chapter
will not be repealed or amended in any manner that will adversely
affect the collection of the tax imposed under this chapter as long as
the principal of or interest on those obligations is unpaid.
As added by P.L.135-2001, SEC.5. Amended by P.L.224-2007,
SEC.65.
IC 6-3.5-1.1-24
Rate for property tax levy freeze
Sec. 24. (a) In a county in which the county adjusted gross income
tax is in effect, the county council may, before August 1 of a year,
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, before August 1 of a year, adopt an ordinance to impose a tax
rate under this section.
(c) An ordinance adopted under this section takes effect October
1 of the year in which the ordinance is adopted. If a county council
adopts an ordinance to impose or increase a tax rate under this
section, the county auditor shall send a certified copy of the
ordinance to the department and the department of local government
finance by certified mail.
(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 from
October 1 of the year in which the tax rate is imposed through
September 30 of the following 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 from
October 1 of the following year through September 30 of the
year after the following 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(g),
IC 6-1.1-18.5-3(h), 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 from
October 1 of the year in which the tax rate is increased through
September 30 of the following 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; 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(g),
IC 6-1.1-18.5-3(h), 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(g), 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 STEP
EIGHT of IC 6-1.1-18.5-3(b).
(j) The tax levy under this section shall not be considered for
purposes of computing the total county tax levy under
IC 6-1.1-21-2(g)(3), IC 6-1.1-21-2(g)(4), or IC 6-1.1-21-2(g)(5)
(before the repeal of those provisions) or 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.
As added by P.L.224-2007, SEC.66. Amended by P.L.146-2008,
SEC.331.
IC 6-3.5-1.1-25
Rate for public safety
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).
(12) Medical and health expenses for jail inmates and other
confined persons.
(13) Pension payments for any of the following:
(A) A member of the fire department (as defined in
IC 36-8-1-8) or any other employee of a fire department.
(B) A member of the police department (as defined in
IC 36-8-1-9), a police chief hired under a waiver under
IC 36-8-4-6.5, or any other employee hired by a police
department.
(C) A county sheriff or any other member of the office of the
county sheriff.
(D) Other personnel employed to provide a service described
in this section.
(b) If a county council has imposed a tax rate of at least
twenty-five hundredths of one percent (0.25%) under section 24 of
this chapter, a tax rate of at least twenty-five hundredths of one
percent (0.25%) under section 26 of this chapter, or a total combined
tax rate of at least twenty-five hundredths of one percent (0.25%)
under sections 24 and 26 of this chapter, the county council may also
adopt an ordinance to impose an additional tax rate under this section
to provide funding for public safety.
(c) A tax rate under this section may not exceed twenty-five
hundredths of one percent (0.25%).
(d) If a county council adopts an ordinance to impose a tax rate
under this section, the county auditor shall send a certified copy of
the ordinance to the department and the department of local
government finance by certified mail.
(e) A tax rate under this section is in addition to any other tax
rates imposed under this chapter and does not affect the purposes for
which other tax revenue under this chapter may be used.
(f) Except as provided in subsection (k), the county auditor shall
distribute the portion of the certified distribution that is attributable
to a tax rate under this section to the county and to each municipality
in the county. 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 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 STEP
EIGHT of IC 6-1.1-18.5-3(b);
(3) the total county tax levy under IC 6-1.1-21-2(g)(3),
IC 6-1.1-21-2(g)(4), or IC 6-1.1-21-2(g)(5) (before the repeal of
IC 6-1.1-21); or
(4) the credit under IC 6-1.1-20.6.
(i) The tax rate under this section may be imposed or rescinded at
the same time and in the same manner that the county may impose or
increase a tax rate under section 24 of this chapter.
(j) The department of local government finance and the
department of state revenue may take any actions necessary to carry
out the purposes of this section.
(k) Two (2) or more political subdivisions that are entitled to
receive a distribution under this section may adopt resolutions
providing that some part or all of those distributions shall instead be
paid to one (1) political subdivision in the county to carry out
specific public safety purposes specified in the resolutions.
As added by P.L.224-2007, SEC.67. Amended by P.L.146-2008,
SEC.332.
IC 6-3.5-1.1-26
Rate for property tax relief
Sec. 26. (a) A county council may impose a tax rate under this
section to provide property tax relief to political subdivisions 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, the county auditor shall send a certified
copy of the ordinance to the department and the department of local
government finance by certified mail.
(e) A tax rate under this section 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 increase (before
January 1, 2009) or uniformly provide (after December 31,
2008) 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 the state homestead credit under IC 6-1.1-20.9
(before its repeal). 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
department of local government finance 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 before October 1 of a year 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 STEP
EIGHT of IC 6-1.1-18.5-3(b);
(3) before January 1, 2009, the total county tax levy under
IC 6-1.1-21-2(g)(3), IC 6-1.1-21-2(g)(4), or IC 6-1.1-21-2(g)(5)
(before the repeal of those provisions); or
(4) 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.
(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.
As added by P.L.224-2007, SEC.68. Amended by P.L.146-2008,
SEC.333.
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