2010 Indiana Code
TITLE 6. TAXATION
ARTICLE 3.5. LOCAL TAXATION
CHAPTER 6. COUNTY OPTION INCOME TAX
IC 6-3.5-6
Chapter 6. County Option Income Tax
IC 6-3.5-6-1
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. However, in the case of a county taxpayer who
is not treated as a resident county taxpayer of a county, 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, except a school corporation,
that has the power to impose ad valorem property taxes. 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 county in which a consolidated city is located, the
consolidated city, the county, all special taxing districts, special
service districts, included towns (as defined in IC 36-3-1-7), and all
other political subdivisions except townships, excluded cities (as
defined in IC 36-3-1-7), and school corporations shall be deemed to
comprise one (1) civil taxing unit whose fiscal body is the fiscal
body of the consolidated city.
"County income tax council" means a council established by
section 2 of this chapter.
"County taxpayer", as it relates to a particular county, means any
individual:
(1) who resides in that county on the date specified in section
20 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 20
of this chapter and who does not reside on that same date in
another county in which the county option income tax, the
county adjusted income tax, or the county economic
development income tax is in effect.
"Department" refers to the Indiana department of state revenue.
"Fiscal body" has the same definition that the term is given in
IC 36-1-2-6.
"Homestead" has the meaning set forth in IC 6-1.1-12-37.
"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 particular county,
means any county taxpayer who resides in that county on the date
specified in section 20 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" has the same definition that the term is given
in IC 6-1.1-1-16.
As added by P.L.44-1984, SEC.14. Amended by P.L.23-1986, SEC.9;
P.L.22-1988, SEC.4; P.L.96-1995, SEC.3; P.L.146-2008, SEC.335.
IC 6-3.5-6-1.1
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 in
the county, the allocation amount for a civil taxing unit is the amount
determined using the following formula:
STEP ONE: Determine the total property taxes that are first due
and payable to the civil taxing unit during the calendar year of
the distribution plus, for a county, an amount equal to the
welfare allocation amount.
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 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. 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 IC 6-3.5-1.1 or this
chapter 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) 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 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 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 it 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.6. Amended by P.L.146-2008,
SEC.336; P.L.182-2009(ss), SEC.217.
IC 6-3.5-6-1.3
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.4. Amended by P.L.1-1996, SEC.48;
P.L.70-2001, SEC.2.
IC 6-3.5-6-1.5
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.63.
IC 6-3.5-6-2
County income tax council; established; powers
Sec. 2. (a) A county income tax council is established for each
county in Indiana. The membership of each county's county income
tax council consists of the fiscal body of the county and the fiscal
body of each city or town that lies either partially or entirely within
that county.
(b) Using procedures described in this chapter, a county income
tax council may adopt ordinances to:
(1) impose the county option income tax in its county;
(2) subject to section 12 of this chapter, rescind the county
option income tax in its county;
(3) increase the county option income tax rate for the county;
(4) freeze the county option income tax rate for its county;
(5) increase the homestead credit in its county; or
(6) subject to section 12.5 of this chapter, decrease the county
option income tax rate for the county.
(c) An ordinance adopted in a particular year under this chapter
to impose or rescind the county option income tax or to increase its
tax rate is effective July 1 of that year.
As added by P.L.44-1984, SEC.14. Amended by P.L.2-1989, SEC.14;
P.L.42-1994, SEC.4; P.L.267-2003, SEC.7.
IC 6-3.5-6-3
County income tax council; allocation of votes
Sec. 3. (a) In the case of a city or town that lies within more than
one (1) county, the county auditor of each county shall base the
allocations required by subsection (b) on the population of that part
of the city or town that lies within the county for which the
allocations are being made.
(b) Every county income tax council has a total of one hundred
(100) votes. Every member of the county income tax council is
allocated a percentage of the total one hundred (100) votes that may
be cast. The percentage that a city or town is allocated for a year
equals the same percentage that the population of the city or town
bears to the population of the county. The percentage that the county
is allocated for a year equals the same percentage that the population
of all areas in the county not located in a city or town bears to the
population of the county. On or before January 1 of each year, the
county auditor shall certify to each member of the county income tax
council the number of votes, rounded to the nearest one hundredth
(0.01), it has for that year.
As added by P.L.44-1984, SEC.14.
IC 6-3.5-6-4
Resolutions; transmittal to county auditor
Sec. 4. (a) A member of the county income tax council may
exercise its votes by passing a resolution and transmitting the
resolution to the auditor of the county. However, in the case of an
ordinance to impose, rescind, increase, decrease, or freeze the county
rate of the county option income tax, the member must transmit the
resolution to the county auditor by the appropriate time described in
section 8, 9, 10, or 11 of this chapter. The form of a resolution is as
follows:
"The ______________ (name of civil taxing unit's fiscal body)
casts its _____ votes _____ (for or against) the proposed
ordinance of the ______________ County Income Tax Council,
which reads as follows:".
(b) A resolution passed by a member of the county income tax
council exercises all votes of the member on the proposed ordinance,
and those votes may not be changed during the year.
As added by P.L.44-1984, SEC.14. Amended by P.L.42-1994, SEC.5.
IC 6-3.5-6-5
Ordinances; procedure for proposal; voting
Sec. 5. Any member of a county income tax council may present
an ordinance for passage. To do so, the member must pass a
resolution to propose the ordinance to the county income tax council
and distribute a copy of the proposed ordinance to the auditor of the
county. The auditor of the county shall treat any proposed ordinance
presented to the auditor under this section as a casting of all that
member's votes in favor of that proposed ordinance. Subject to the
limitations of section 6 of this chapter, the auditor of the county shall
deliver copies of a proposed ordinance the auditor receives to all
members of the county income tax council within ten (10) days after
receipt. Once a member receives a proposed ordinance from the
auditor of the county, the member shall vote on it within thirty (30)
days after receipt.
As added by P.L.44-1984, SEC.14. Amended by P.L.28-1997,
SEC.17.
IC 6-3.5-6-6
Ordinances; limitation of number; effect of passage on proposed
ordinances; proposed ordinances with same effect
Sec. 6. (a) A county income tax council may pass only one (1)
ordinance described in section 2(b)(1), 2(b)(2), 2(b)(3), 2(b)(4), or
2(b)(6) of this chapter in one (1) year. Once an ordinance described
in section 2(b)(1), 2(b)(2), 2(b)(3), 2(b)(4), or 2(b)(6) of this chapter
has been passed, the auditor of the county shall:
(1) cease distributing proposed ordinances of those types for the
rest of the year; and
(2) withdraw from the membership any other of those types of
proposed ordinances.
Any votes subsequently received by the auditor of the county on
proposed ordinances of those types during that same year are void.
(b) The county income tax council may not vote on, nor may the
auditor of the county distribute to the members of the county income
tax council, any proposed ordinance during a year, if previously
during that same year the auditor of the county received and
distributed to the members of the county income tax council a
proposed ordinance whose passage would have substantially the
same effect.
As added by P.L.44-1984, SEC.14. Amended by P.L.42-1994, SEC.6.
IC 6-3.5-6-7
Ordinances; hearing; notice
Sec. 7. (a) Before a member of the county income tax council may
propose an ordinance or vote on a proposed ordinance, the member
must hold a public hearing on the proposed ordinance and provide
the public with notice of the time and place where the public hearing
will be held.
(b) The notice required by subsection (a) must be given in
accordance with IC 5-3-1.
(c) The form of the notice required by this section must be in
substantially the following form:
"NOTICE OF COUNTY OPTION
INCOME TAX ORDINANCE VOTE.
The fiscal body of the _____________ (insert name of civil taxing unit) hereby declares that on __________ (insert date) at ______________ (insert the time of day) a public hearing will be held at _______________ (insert location) concerning the following resolution to propose an ordinance (or proposed ordinance) that is before the members of the county income tax council. Members of the public are cordially invited to attend the hearing for the purpose of expressing their views.
(Insert a copy of the proposed ordinance or resolution to propose an ordinance.)".
As added by P.L.44-1984, SEC.14.
IC 6-3.5-6-8
Imposition of tax; time; rate of tax; necessity and form of
ordinance; recording of votes
Sec. 8. (a) The county income tax council of any county in which
the county adjusted gross income tax will not be in effect on October
1 of a year under an ordinance adopted during a previous calendar
year may impose the county option income tax on the adjusted gross
income of county taxpayers of its county effective October 1 of that
same year.
(b) Except as provided in sections 30, 31, and 32 of this chapter,
the county option income tax may initially be imposed at a rate of
two-tenths of one percent (0.2%) on the resident county taxpayers of
the county and at a rate of five hundredths of one percent (0.05%) for
all other county taxpayers.
(c) To impose the county option income tax, a county income tax
council must, after March 31 but before August 1 of the year, pass an
ordinance. The ordinance must substantially state the following:
"The _____________ County Income Tax Council imposes the
county option income tax on the county taxpayers of
_____________ County. The county option income tax is
imposed at a rate of two-tenths of one percent (0.2%) on the
resident county taxpayers of the county and at a rate of five
hundredths of one percent (0.05%) on all other county
taxpayers. This tax takes effect October 1 of this year.".
(d) Except as provided in sections 30, 31, and 32 of this chapter,
if the county option income tax is imposed on the county taxpayers
of a county, then the county option income tax rate that is in effect
for resident county taxpayers of that county increases by one-tenth
of one percent (0.1%) on each succeeding October 1 until the rate
equals six-tenths of one percent (0.6%).
(e) The county option income tax rate in effect for the county
taxpayers of a county who are not resident county taxpayers of that
county is at all times one-fourth (1/4) of the tax rate imposed upon
resident county taxpayers.
(f) The auditor of a county shall record all votes taken on
ordinances presented for a vote under this section and immediately
send a certified copy of the results to the department by certified
mail.
As added by P.L.44-1984, SEC.14. Amended by P.L.35-1990,
SEC.16; P.L.224-2007, SEC.70.
IC 6-3.5-6-9
Increase of tax rate
Sec. 9. (a) If on March 31 of a calendar year the county option
income tax rate in effect for resident county taxpayers equals six
tenths of one percent (0.6%), excluding a tax rate imposed under
section 30, 31, or 32 of this chapter, the county income tax council
of that county may after March 31 and before August 1 of that year
pass an ordinance to increase its tax rate for resident county
taxpayers. If a county income tax council passes an ordinance under
this section, its county option income tax rate for resident county
taxpayers increases by one tenth of one percent (0.1%) each
succeeding October 1 until its rate reaches a maximum of one
percent (1%), excluding a tax rate imposed under section 30, 31, or
32 of this chapter.
(b) The auditor of the county shall record any vote taken on an
ordinance proposed under the authority of this section and
immediately send a certified copy of the results to the department by
certified mail.
As added by P.L.44-1984, SEC.14. Amended by P.L.35-1990,
SEC.17; P.L.224-2007, SEC.71.
IC 6-3.5-6-9.5
Repealed
(Repealed by P.L.2-1989, SEC.56.)
IC 6-3.5-6-10
Effect of adoption of county option income tax and county adjusted
gross income tax in same county
Sec. 10. If during a particular calendar year the county council of
a county adopts an ordinance to impose the county adjusted gross
income tax in its county on October 1 of that year and the county
option income tax council of the county adopts an ordinance to
impose the county option income tax in the county on October 1 of
that year, the county option income tax takes effect in that county
and the county adjusted gross income tax shall not take effect in that
county.
As added by P.L.44-1984, SEC.14. Amended by P.L.224-2007,
SEC.72.
IC 6-3.5-6-11
Freeze of tax rate; adoption, duration, and rescission of ordinance
Sec. 11. (a) This section does not apply to a tax rate imposed
under section 30 of this chapter.
(b) The county income tax council of any county may adopt an
ordinance to permanently freeze the county option income tax rates
at the rate in effect for its county on March 31 of a year.
(c) To freeze the county option income tax rates, a county income
tax council must, after March 31 but before August 1 of a year, adopt
an ordinance. The ordinance must substantially state the following:
"The __________ County Income Tax Council permanently
freezes the county option income tax rates at the rate in effect
on March 31 of the current year.".
(d) An ordinance adopted under the authority of this section
remains in effect until rescinded. The county income tax council may
rescind such an ordinance after March 31 but before August 1 of any
calendar year. Such an ordinance shall take effect October 1 of that
same calendar year.
(e) If a county income tax council rescinds an ordinance as
adopted under this section, the county option income tax rate shall
automatically increase by one-tenth of one percent (0.01%) until:
(1) the tax rate is again frozen under another ordinance adopted
under this section; or
(2) the tax rate equals six tenths of one percent (0.6%) (if the
frozen tax rate equaled an amount less than six tenths of one
percent (0.6%)) or one percent (1%) (if the frozen tax rate
equaled an amount in excess of six tenths of one percent
(0.6%)).
(f) The county auditor shall record any vote taken on an ordinance
proposed under the authority of this section and immediately send a
certified copy of the results to the department by certified mail.
As added by P.L.44-1984, SEC.14. Amended by P.L.35-1990,
SEC.18; P.L.224-2007, SEC.73.
IC 6-3.5-6-12
Duration of tax; rescission of tax; record of votes
Sec. 12. (a) The county option income tax imposed by a county
income tax council under this chapter remains in effect until
rescinded.
(b) Subject to subsection (c), the county income tax council of a
county may rescind the county option income tax by passing an
ordinance to rescind the tax after March 31 but before August 1 of
a year.
(c) A county income tax council may not rescind the county
option income tax or take any action that would result in a civil
taxing unit in the county having a smaller distributive share than the
distributive share to which it was entitled when it pledged county
option income tax, if the civil taxing unit or any commission, board,
department, or authority that is authorized by statute to pledge county
option income tax, has pledged county option income tax for any
purpose permitted by IC 5-1-14 or any other statute.
(d) The auditor of a county shall record all votes taken on a
proposed ordinance presented for a vote under the authority of this
section and immediately send a certified copy of the results to the
department by certified mail.
As added by P.L.44-1984, SEC.14. Amended by P.L.2-1989, SEC.15;
P.L.35-1990, SEC.19; P.L.28-1997, SEC.18; P.L.224-2007, SEC.74.
IC 6-3.5-6-12.5
Decrease in county option income tax rate; adoption of ordinance;
procedures
Sec. 12.5. (a) The county income tax council may adopt an
ordinance to decrease the county option income tax rate in effect.
(b) To decrease the county option income tax rate, the county
income tax council must adopt an ordinance after March 31 but
before August 1 of a year. The ordinance must substantially state the
following:
"The ______________ County Income Tax Council decreases
the county option income tax rate from __________ percent
(___ %) to __________ percent (___ %). This ordinance takes
effect October 1 of this year.".
(c) A county income tax council may not decrease the county
option income tax if the county or any commission, board,
department, or authority that is authorized by statute to pledge the
county option income tax has pledged the county option income tax
for any purpose permitted by IC 5-1-14 or any other statute.
(d) An ordinance adopted under this subsection takes effect
October 1 of the year in which the ordinance is adopted.
(e) The county auditor shall record the votes taken on an
ordinance under this subsection and shall send a certified copy of the
ordinance to the department by certified mail not more than thirty
(30) days after the ordinance is adopted.
(f) Notwithstanding IC 6-3.5-7, a county income tax council that
decreases the county option income tax in a year may not in the same
year adopt or increase the county economic development income tax
under IC 6-3.5-7.
As added by P.L.42-1994, SEC.7. Amended by P.L.224-2007,
SEC.75.
IC 6-3.5-6-13
Homestead credit percentage; determination
Sec. 13. (a) A county income tax council of a county in which the
county option income tax is in effect may adopt an ordinance to
provide a homestead credit for homesteads in its county.
(b) A county income tax council may not provide a homestead
credit percentage that exceeds the amount determined in the last
STEP of the following formula:
STEP ONE: Determine the amount of the sum of all property
tax levies for all taxing units in a county which are to be paid in
the county in 2003 as reflected by the auditor's abstract for the
2002 assessment year, adjusted, however, for any postabstract
adjustments which change the amount of the levies.
STEP TWO: Determine the amount of the county's estimated
property tax replacement under IC 6-1.1-21-3(a) (before its
repeal) for property taxes first due and payable in 2003.
STEP THREE: Subtract the STEP TWO amount from the STEP
ONE amount.
STEP FOUR: Determine the amount of the county's total county
levy (as defined in IC 6-1.1-21-2(g) before its repeal) for
property taxes first due and payable in 2003.
STEP FIVE: Subtract the STEP FOUR amount from the STEP
ONE amount.
STEP SIX: Subtract the STEP FIVE result from the STEP
THREE result.
STEP SEVEN: Divide the STEP THREE result by the STEP
SIX result.
STEP EIGHT: Multiply the STEP SEVEN result by
eight-hundredths (0.08).
STEP NINE: Round the STEP EIGHT product to the nearest
one-thousandth (0.001) and express the result as a percentage.
(c) The homestead credit percentage must be uniform for all
homesteads in a county.
(d) In the ordinance that establishes the homestead credit
percentage, a county income tax council may provide for a series of
increases or decreases to take place for each of a group of succeeding
calendar years.
(e) An ordinance may be adopted under this section after March
31 but before August 1 of a calendar year.
(f) An ordinance adopted under this section takes effect on
January 1 of the next succeeding calendar year.
(g) Any ordinance adopted under this section for a county is
repealed for a year if on January 1 of that year the county option
income tax is not in effect.
As added by P.L.44-1984, SEC.14. Amended by P.L.3-1989, SEC.41;
P.L.224-2003, SEC.247; P.L.97-2004, SEC.30; P.L.224-2007,
SEC.76; P.L.146-2008, SEC.337.
IC 6-3.5-6-13.5
County income tax council meetings to consider rate adjustment
Sec. 13.5. A county income tax council must before August 1 of
each odd-numbered year hold at least one (1) public meeting at
which the county income tax council discusses whether the county
option income tax rate under this chapter should be adjusted.
As added by P.L.182-2009(ss), SEC.218.
IC 6-3.5-6-14
Taxpayer subject to different tax rates; rate of tax
Sec. 14. If for any taxable year a county taxpayer is subject to
different tax rates for the county option income tax imposed by a
particular county, the taxpayer's county option income tax rate for
that county and that taxable year is the rate determined in the last
STEP of the following STEPS:
STEP ONE: Multiply the number of months in the taxpayer's
taxable year that precede October 1 by the rate in effect before
the rate change.
STEP TWO: Multiply the number of months in the taxpayer's
taxable year that follow September 30 by the rate in effect after
the rate change.
STEP THREE: Divide the sum of the amounts determined
under STEPS ONE and TWO by twelve (12).
As added by P.L.44-1984, SEC.14. Amended by P.L.224-2007,
SEC.77.
IC 6-3.5-6-15
Tax not in effect entire taxable year
Sec. 15. If the county option income tax is not in effect during a
county taxpayer's entire taxable year, the amount of county option
income tax that the county taxpayer owes for that taxable year equals
the product of:
(1) the amount of county option 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. The numerator of the fraction equals the number
of days in the county taxpayer's taxable year during which the
county option income tax was in effect. The denominator of the
fraction equals the total number of days in the county taxpayer's
taxable year.
However, if the taxpayer files state income tax returns on a calendar
year basis, the fraction to be applied under this section is one-half
(1/2).
As added by P.L.44-1984, SEC.14.
IC 6-3.5-6-16
Deposit of revenue in special account
Sec. 16. (a) A special account within the state general fund shall
be established for each county that adopts the county option income
tax. Any revenue derived from the imposition of the county option
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.44-1984, SEC.14.
IC 6-3.5-6-17
Calculation of certified distribution; summary of calculation;
notice to county auditor
Sec. 17. (a) Revenue derived from the imposition of the county
option income tax shall, in the manner prescribed by this section, be
distributed to the county that imposed it. The amount that is to be
distributed to a county during an ensuing calendar year equals the
amount of county option income tax revenue that the budget agency
determines has been:
(1) received from that county for a taxable year ending in a
calendar year preceding the calendar year in which the
determination is made; and
(2) reported on an annual return or amended return processed
by the department in the state fiscal year ending before July 1
of the calendar year in which the determination is made;
as adjusted (as determined after review of the recommendation of the
budget agency) for refunds of county option income tax made in the
state fiscal year.
(b) Before August 2 of each calendar year, the budget agency
shall certify to the county auditor of each adopting county the
amount determined under subsection (a) plus the amount of interest
in the county's account that has accrued and has not been included in
a certification made in a preceding year. The amount certified is the
county's "certified distribution" for the immediately succeeding
calendar year. The amount certified shall be adjusted, as necessary,
under subsections (c), (d), (e), and (f). The budget agency shall
provide the county council with an informative summary of the
calculations used to determine the certified distribution. The
summary of calculations must include:
(1) the amount reported on individual income tax returns
processed by the department during the previous fiscal year;
(2) adjustments for over distributions in prior years;
(3) adjustments for clerical or mathematical errors in prior
years;
(4) adjustments for tax rate changes; and
(5) the amount of excess account balances to be distributed
under IC 6-3.5-6-17.3.
The budget agency shall also certify information concerning the part
of the certified distribution that is attributable to a tax rate under
section 30, 31, or 32 of this chapter. This information must be
certified to the county auditor and to the department of local
government finance not later than September 1 of each calendar year.
The part of the certified distribution that is attributable to a tax rate
under section 30, 31, or 32 of this chapter may be used only as
specified in those provisions.
(c) The budget agency shall certify an amount less than the
amount determined under subsection (b) if the budget agency
determines that the reduced distribution is necessary to offset
overpayments made in a calendar year before the calendar year of the
distribution. The budget agency may reduce the amount of the
certified distribution over several calendar years so that any
overpayments are offset over several years rather than in one (1)
lump sum.
(d) The budget agency shall adjust the certified distribution of a
county to correct for any clerical or mathematical errors made in any
previous certification under this section. The budget agency may
reduce the amount of the certified distribution over several calendar
years so that any adjustment under this subsection is offset over
several years rather than in one (1) lump sum.
(e) This subsection applies to a county that imposes, increases,
decreases, or rescinds a tax or tax rate under this chapter before
November 1 in the same calendar year in which the budget agency
makes a certification under this section. The budget agency shall
adjust the certified distribution of a county to provide for a
distribution in the immediately following calendar year and in each
calendar year thereafter. The budget agency shall provide for a full
transition to certification of distributions as provided in subsection
(a)(1) through (a)(2) in the manner provided in subsection (c). If the
county imposes, increases, decreases, or rescinds a tax or tax rate
under this chapter after the date for which a certification under
subsection (b) is based, the budget agency shall adjust the certified
distribution of the county after August 1 of the calendar year. The
adjustment shall reflect any other adjustment required under
subsections (c), (d), and (f). The adjusted certification shall be
treated as the county's "certified distribution" for the immediately
succeeding calendar year. The budget agency shall certify the
adjusted certified distribution to the county auditor for the county
and provide the county council with an informative summary of the
calculations that revises the informative summary provided in
subsection (b) and reflects the changes made in the adjustment.
(f) This subsection applies in the year a county initially imposes
a tax rate under section 30 of this chapter. Notwithstanding any other
provision, the budget agency shall adjust the part of the county's
certified distribution that is attributable to the tax rate under section
30 of this chapter to provide for a distribution in the immediately
following calendar year equal to the result of:
(1) the sum of the amounts determined under STEP ONE
through STEP FOUR of IC 6-3.5-1.5-1(a) in the year in which
the county initially imposes a tax rate under section 30 of this
chapter; multiplied by
(2) the following:
(A) In a county containing a consolidated city, one and
five-tenths (1.5).
(B) In a county other than a county containing a consolidated
city, two (2).
(g) One-twelfth (1/12) of each adopting county's certified
distribution for a calendar year shall be distributed from its account
established under section 16 of this chapter to the appropriate county
treasurer on the first day of each month of that calendar year.
(h) Upon receipt, each monthly payment of a county's certified
distribution shall be allocated among, distributed to, and used by the
civil taxing units of the county as provided in sections 18 and 19 of
this chapter.
(i) All distributions from an account established under section 16
of this chapter shall be made by warrants issued by the auditor of
state to the treasurer of state ordering the appropriate payments.
As added by P.L.44-1984, SEC.14. Amended by P.L.23-1986,
SEC.10; P.L.178-2002, SEC.61; P.L.1-2003, SEC.42; P.L.267-2003,
SEC.8; P.L.207-2005, SEC.7; P.L.224-2007, SEC.78; P.L.146-2008,
SEC.338; P.L.182-2009(ss), SEC.219; P.L.113-2010, SEC.64.
IC 6-3.5-6-17.2
Annual report to county auditor
Sec. 17.2. Before October 2 of each year, the budget agency shall
submit a report to each county auditor indicating the balance in the
county's special account as of the cutoff date set by the budget
agency.
As added by P.L.178-2002, SEC.62. Amended by P.L.267-2003,
SEC.9; P.L.182-2009(ss), SEC.220.
IC 6-3.5-6-17.3
Distribution of excess balance; use
Sec. 17.3. (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 special
account.
(b) A supplemental distribution described in subsection (a) must
be:
(1) made in January of the ensuing calendar year; and
(2) allocated in the same manner as certified distributions for
deposit in a civil unit's rainy day fund established under
IC 36-1-8-5.1.
(c) A determination under this section must be made before
October 2.
As added by P.L.178-2002, SEC.63. Amended by P.L.267-2003,
SEC.10; P.L.182-2009(ss), SEC.221.
IC 6-3.5-6-17.4
(Repealed by P.L.267-2003, SEC.16.)
IC 6-3.5-6-17.5
Repealed
(Repealed by P.L.267-2003, SEC.16.)
IC 6-3.5-6-17.6
Repealed
(Repealed by P.L.267-2003, SEC.16.)
IC 6-3.5-6-18
Use of revenue by county auditors; distribution of revenue to civil
taxing units and school corporations; qualified economic
development tax projects
Sec. 18. (a) The revenue a county auditor receives under this
chapter shall be used to:
(1) replace the amount, if any, of property tax revenue lost due
to the allowance of an increased homestead credit within the
county;
(2) fund the operation of a public communications system and
computer facilities district as provided in an election, if any,
made by the county fiscal body under IC 36-8-15-19(b);
(3) fund the operation of a public transportation corporation as
provided in an election, if any, made by the county fiscal body
under IC 36-9-4-42;
(4) make payments permitted under IC 36-7-14-25.5 or
IC 36-7-15.1-17.5;
(5) make payments permitted under subsection (i);
(6) make distributions of distributive shares to the civil taxing
units of a county; and
(7) make the distributions permitted under sections 27, 28, 29,
30, 31, 32, and 33 of this chapter.
(b) The county auditor shall retain from the payments of the
county's certified distribution, an amount equal to the revenue lost,
if any, due to the increase of the homestead credit within the county.
This money shall be distributed to the civil taxing units and school
corporations of the county as though they were property tax
collections and in such a manner that no civil taxing unit or school
corporation shall suffer a net revenue loss due to the allowance of an
increased homestead credit.
(c) The county auditor shall retain:
(1) the amount, if any, specified by the county fiscal body for
a particular calendar year under subsection (i), IC 36-7-14-25.5,
IC 36-7-15.1-17.5, IC 36-8-15-19(b), and IC 36-9-4-42 from the
county's certified distribution for that same calendar year; and
(2) the amount of an additional tax rate imposed under section
27, 28, 29, 30, 31, 32, or 33 of this chapter.
The county auditor shall distribute amounts retained under this
subsection to the county.
(d) All certified distribution revenues that are not retained and
distributed under subsections (b) and (c) shall be distributed to the
civil taxing units of the county as distributive shares.
(e) The amount of distributive shares that each civil taxing unit in
a county is entitled to receive during a month equals the product of
the following:
(1) The amount of revenue that is to be distributed as
distributive shares during that month; multiplied by
(2) A fraction. The numerator of the fraction equals the
allocation amount for the civil taxing unit for the calendar year
in which the month falls. The denominator of the fraction
equals the sum of the allocation amounts of all the civil taxing
units of the county for the calendar year in which the month
falls.
(f) The department of local government finance shall provide each
county auditor with the fractional amount of distributive shares that
each civil taxing unit in the auditor's county is entitled to receive
monthly under this section.
(g) Notwithstanding subsection (e), if a civil taxing unit of an
adopting county does not impose a property tax levy that is first due
and payable in a calendar year in which distributive shares are being
distributed under this section, that civil taxing unit is entitled to
receive a part of the revenue to be distributed as distributive shares
under this section within the county. The fractional amount such a
civil taxing unit is entitled to receive each month during that calendar
year equals the product of the following:
(1) The amount to be distributed as distributive shares during
that month; multiplied by
(2) A fraction. The numerator of the fraction equals the budget
of that civil taxing unit for that calendar year. The denominator
of the fraction equals the aggregate budgets of all civil taxing
units of that county for that calendar year.
(h) If for a calendar year a civil taxing unit is allocated a part of
a county's distributive shares by subsection (g), then the formula used
in subsection (e) to determine all other civil taxing units' distributive
shares shall be changed each month for that same year by reducing
the amount to be distributed as distributive shares under subsection
(e) by the amount of distributive shares allocated under subsection
(g) for that same month. The department of local government finance
shall make any adjustments required by this subsection and provide
them to the appropriate county auditors.
(i) Notwithstanding any other law, a county fiscal body may
pledge revenues received under this chapter (other than revenues
attributable to a tax rate imposed under section 30, 31, or 32 of this
chapter) to the payment of bonds or lease rentals to finance a
qualified economic development tax project under IC 36-7-27 in that
county or in any other county if the county fiscal body determines
that the project will promote significant opportunities for the gainful
employment or retention of employment of the county's residents.
As added by P.L.44-1984, SEC.14. Amended by P.L.225-1986,
SEC.10; P.L.32-1986, SEC.2; P.L.84-1987, SEC.3; P.L.2-1989,
SEC.16; P.L.28-1993, SEC.7; P.L.273-1999, SEC.71; P.L.283-2001,
SEC.4; P.L.90-2002, SEC.296; P.L.120-2002, SEC.4; P.L.1-2003,
SEC.44; P.L.255-2003, SEC.4; P.L.207-2005, SEC.8; P.L.162-2006,
SEC.31; P.L.184-2006, SEC.6; P.L.1-2007, SEC.63; P.L.224-2007,
SEC.79; P.L.182-2009(ss), SEC.222.
IC 6-3.5-6-18.5
Distributive shares to civil taxing units in counties containing a
consolidated city
Sec. 18.5. (a) This section applies to a county containing a
consolidated city.
(b) Notwithstanding section 18(e) of this chapter, the distributive
shares that each civil taxing unit in a county containing a
consolidated city is entitled to receive during a month equals the
following:
(1) For the calendar year beginning January 1, 1995, calculate
the total amount of revenues that are to be distributed as
distributive shares during that month multiplied by the
following factor:
Center Township .0251
Decatur Township .00217
Franklin Township .0023
Lawrence Township .01177
Perry Township .01130
Pike Township .01865
Warren Township .01359
Washington Township .01346
Wayne Township .01307
Lawrence-City .00858
Beech Grove .00845
Southport .00025
Speedway .00722
Indianapolis/Marion County .86409
(2) Notwithstanding subdivision (1), for the calendar year
beginning January 1, 1995, the distributive shares for each civil
taxing unit in a county containing a consolidated city shall be
not less than the following:
Center Township $1,898,145
Decatur Township $164,103
Franklin Township $173,934
Lawrence Township $890,086
Perry Township $854,544
Pike Township $1,410,375
Warren Township $1,027,721
Washington Township $1,017,890
Wayne Township $988,397
Lawrence-City $648,848
Beech Grove $639,017
Southport $18,906
Speedway $546,000
(3) For each year after 1995, calculate the total amount of
revenues that are to be distributed as distributive shares during
that month as follows:
STEP ONE: Determine the total amount of revenues that
were distributed as distributive shares during that month in
calendar year 1995.
STEP TWO: Determine the total amount of revenue that the
department has certified as distributive shares for that month
under section 17 of this chapter for the calendar year.
STEP THREE: Subtract the STEP ONE result from the
STEP TWO result.
P.L.273-1999, SEC.72; P.L.283-2001, SEC.5; P.L.120-2002, SEC.5;
P.L.255-2003, SEC.5; P.L.234-2005, SEC.5; P.L.146-2008,
SEC.339.
STEP FOUR: If the STEP THREE result is less than or
equal to zero (0), multiply the STEP TWO result by the ratio
established under subdivision (1).
STEP FIVE: Determine the ratio of:
(A) the maximum permissible property tax levy under
IC 6-1.1-18.5 for each civil taxing unit for the calendar
year in which the month falls, plus, for a county, the
welfare allocation amount; divided by
(B) the sum of the maximum permissible property tax
levies under IC 6-1.1-18.5 for all civil taxing units of the
county during the calendar year in which the month falls,
and an amount equal to the welfare allocation amount.
STEP SIX: If the STEP THREE result is greater than zero
(0), the STEP ONE amount shall be distributed by
multiplying the STEP ONE amount by the ratio established
under subdivision (1).
STEP SEVEN: For each taxing unit determine the STEP
FIVE ratio multiplied by the STEP TWO amount.
STEP EIGHT: For each civil taxing unit determine the
difference between the STEP SEVEN amount minus the
product of the STEP ONE amount multiplied by the ratio
established under subdivision (1). The STEP THREE excess
shall be distributed as provided in STEP NINE only to the
civil taxing units that have a STEP EIGHT difference greater
than or equal to zero (0).
STEP NINE: For the civil taxing units qualifying for a
distribution under STEP EIGHT, each civil taxing unit's
share equals the STEP THREE excess multiplied by the ratio
of:
(A) the maximum permissible property tax levy under
IC 6-1.1-18.5 for the qualifying civil taxing unit during the
calendar year in which the month falls, plus, for a county,
an amount equal to the welfare allocation amount; divided
by
(B) the sum of the maximum permissible property tax
levies under IC 6-1.1-18.5 for all qualifying civil taxing
units of the county during the calendar year in which the
month falls, and an amount equal to the welfare allocation
amount.
(c) 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 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, children with special health care needs county
fund, plus, in the case of Marion County, thirty-five million dollars
($35,000,000).
As added by P.L.42-1994, SEC.10. Amended by P.L.98-1995, SEC.1;
IC 6-3.5-6-18.6
Timing of income tax distributions within the county
Sec. 18.6. (a) The county auditor shall timely distribute the
certified distribution received under section 17 of this chapter to each
civil taxing unit that is a recipient of distributive shares as provided
by sections 18 and 18.5 of this chapter.
(b) 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 17 of this chapter.
As added by P.L.26-2009, SEC.2.
IC 6-3.5-6-19
Calculation of distributive shares; allowable uses of revenue
Sec. 19. (a) Except as provided in sections 18(e) and 18.5(b)(3)
of this chapter, in determining the fractional share of distributive
shares the civil taxing units of a county are entitled to receive under
section 18 of this chapter during a calendar year, the department of
local government finance shall consider only property taxes imposed
on tangible property subject to assessment in that county.
(b) In determining the amount of distributive shares a civil taxing
unit is entitled to receive under section 18(g) of this chapter, the
department of local government finance shall consider only the
percentage of the civil taxing unit's budget that equals the ratio that
the total assessed valuation that lies within the civil taxing unit and
the county that has adopted the county option tax bears to the total
assessed valuation that lies within the civil taxing unit.
(c) The distributive shares to be allocated and distributed under
this chapter:
(1) shall be treated by each civil taxing unit as additional
revenue for the purpose of fixing the civil taxing unit's budget
for the budget year during which the distributive shares are to
be distributed to the civil taxing unit; and
(2) may be used for any lawful purpose of the civil taxing unit.
(d) In the case of a civil taxing unit that includes a consolidated
city, its fiscal body may distribute any revenue it receives under this
chapter to any governmental entity located in its county except an
excluded city, a township, or a school corporation.
As added by P.L.44-1984, SEC.14. Amended by P.L.225-1986,
SEC.11; P.L.273-1999, SEC.73; P.L.90-2002, SEC.297;
P.L.267-2003, SEC.11; P.L.118-2005, SEC.1.
IC 6-3.5-6-20
County residents; determination
Sec. 20. (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 subdivision (1) or (2) does not apply, registers his
personal automobile; or
(4) if subdivision (1), (2), or (3) does not apply, 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 option 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 option 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.44-1984, SEC.14. Amended by P.L.42-1994,
SEC.11.
IC 6-3.5-6-21
Reciprocity agreements
Sec. 21. (a) Using procedures provided under this chapter, the
county income tax council of any adopting county may pass an
ordinance to enter into reciprocity agreements with the taxing
authority of any city, town, municipality, county, or other similar
local governmental entity of any other state. The reciprocity
agreements must provide that the income of resident county
taxpayers is exempt from income taxation by the other local
governmental entity to the extent income of the residents of the other
local governmental entity is exempt from the county option income
tax in the adopting county.
(b) A reciprocity agreement adopted under this section 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.44-1984, SEC.14.
IC 6-3.5-6-22
Adjusted gross income tax provisions; applicability; employer's
withholding report
Sec. 22. (a) Except as otherwise provided in subsection (b) and
the other provisions of this chapter, all provisions of the adjusted
gross income tax law (IC 6-3) concerning:
(1) definitions;
(2) declarations of estimated tax;
(3) filing of returns;
(4) deductions or exemptions from adjusted gross income;
(5) remittances;
(6) incorporation of the provisions of the Internal Revenue
Code;
(7) penalties and interest; and
(8) exclusion of military pay credits for withholding;
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.44-1984, SEC.14. Amended by P.L.23-1986,
SEC.11; P.L.57-1997, SEC.5; P.L.146-2008, SEC.340.
IC 6-3.5-6-23
Credit for income tax imposed by local governmental entity outside
Indiana
Sec. 23. (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 the county option 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 option income tax.
However, the credit provided by this section may not reduce a county
taxpayer's county option 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 option 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 the
taxpayer is entitled to the credit.
As added by P.L.23-1986, SEC.12.
IC 6-3.5-6-24
Credit for the elderly or persons with a total disability
Sec. 24. (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 county option income tax liability for
that same taxable year. The amount of the credit equals the lesser of:
(1) the product of:
(A) the 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 option
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 option 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 option 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 option income tax
rates imposed against them as the numerator referred to in subsection
(a)(1)(B).
As added by P.L.23-1986, SEC.13. Amended by P.L.63-1988,
SEC.10; P.L.99-2007, SEC.28.
IC 6-3.5-6-25
Public sale of obligations
Sec. 25. 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 option 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.2-1989, SEC.17.
IC 6-3.5-6-26
Enforcement of pledge of county option income tax revenue;
covenant by general assembly
Sec. 26. (a) A pledge of county option income tax revenues under
this chapter (other than revenues attributable to a tax rate imposed
under section 30, 31, or 32 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 tax collected under this chapter as long as the principal of
or interest on those obligations is unpaid.
As added by P.L.178-2002, SEC.67. Amended by P.L.224-2007,
SEC.82.
IC 6-3.5-6-27
Miami County additional rate; findings; uses
Sec. 27. (a) This section applies only to Miami County. Miami
County possesses unique economic development challenges due to:
(1) underemployment in relation to similarly situated counties;
and
(2) the presence of a United States government military base or
other military installation that is completely or partially inactive
or closed.
Maintaining low property tax rates is essential to economic
development, and the use of county option 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 (c), rather than
use of property taxes, promotes that purpose.
(b) In addition to the rates permitted by sections 8 and 9 of this
chapter, the county council may impose the county option income tax
at a rate of twenty-five hundredths percent (0.25%) on the adjusted
gross income of resident county taxpayers if the county council
makes the finding and determination set forth in subsection (c).
Section 8(e) of this chapter applies to the application of the
additional rate to nonresident taxpayers.
(c) In order to impose the county option income tax as provided
in this section, the county council must adopt an ordinance finding
and determining that revenues from the county option income tax are
needed to pay the costs of financing, constructing, acquiring,
renovating, and equipping a county jail, including the repayment of
bonds issued, or leases entered into, for financing, constructing,
acquiring, renovating, and equipping a county jail.
(d) If the county council makes a determination under subsection
(c), the county council may adopt a tax rate under subsection (b). The
tax rate may not be imposed at a rate or for a time greater than is
necessary to pay the costs of financing, constructing, acquiring,
renovating, and equipping a county jail.
(e) The county treasurer shall establish a county jail revenue fund
to be used only for the purposes described in this section. County
option income tax revenues derived from the tax rate imposed under
this section shall be deposited in the county jail revenue fund before
making a certified distribution under section 18 of this chapter.
(f) County option income tax revenues derived from 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 the purposes described in subsection (c).
(g) The budget agency shall adjust the certified distribution of a
county to provide for an increased distribution of taxes in the
immediately following calendar year after the county adopts an
increased tax rate under this section and in each calendar year
thereafter. The budget agency shall provide for a full transition to
certification of distributions as provided in section 17(a)(1) through
17(a)(2) of this chapter in the manner provided in section 17(c) of
this chapter.
As added by P.L.214-2005, SEC.18. Amended by P.L.182-2009(ss),
SEC.223.
IC 6-3.5-6-28
Howard County additional rate; findings; uses
Sec. 28. (a) This section applies only to Howard County.
(b) Maintaining low property tax rates is essential to economic
development, and the use of county option income tax revenues as
provided in this section and as needed in the county to fund the
operation and maintenance of a jail and juvenile detention center,
rather than the use of property taxes, promotes that purpose.
(c) In addition to the rates permitted by sections 8 and 9 of this
chapter, the county fiscal body may impose a county option income
tax at a rate that does not exceed twenty-five hundredths percent
(0.25%) on the adjusted gross income of resident county taxpayers.
The tax rate may be adopted in any increment of one hundredth
percent (0.01%). Before the county fiscal body may adopt a tax rate
under this section, the county fiscal body must make the finding and
determination set forth in subsection (d). Section 8(e) of this chapter
applies to the application of the additional tax rate to nonresident
taxpayers.
(d) In order to impose the county option income tax as provided
in this section, the county fiscal body must adopt an ordinance:
(1) finding and determining that revenues from the county
option income tax are needed in the county to fund the
operation and maintenance of a jail, a juvenile detention center,
or both; and
(2) agreeing to freeze the part of any property tax levy imposed
in the county for the operation of the jail or juvenile detention
center, or both, covered by the ordinance at the rate imposed in
the year preceding the year in which a full year of additional
county option income tax is certified for distribution to the
county under this section for the term in which an ordinance is
in effect under this section.
(e) If the county fiscal body makes a determination under
subsection (d), the county fiscal body may adopt a tax rate under
subsection (c). Subject to the limitations in subsection (c), the county
fiscal body may amend an ordinance adopted under this section to
increase, decrease, or rescind the additional tax rate imposed under
this section. As soon as practicable after the adoption of an ordinance
under this section, the county fiscal body shall send a certified copy
of the ordinance to the county auditor, the department of local
government finance, and the department of state revenue. An
ordinance adopted under this section before April 1 in a year applies
to the imposition of county income taxes after June 30 in that year.
An ordinance adopted under this section after March 31 of a year
initially applies to the imposition of county option income taxes after
June 30 of the immediately following year.
(f) The county treasurer shall establish a county jail revenue fund
to be used only for the purposes described in this section. County
option income tax revenues derived from the tax rate imposed under
this section shall be deposited in the county jail revenue fund before
making a certified distribution under section 18 of this chapter.
(g) County option income tax revenues derived from the tax rate
imposed under this section:
(1) may only be used for the purposes described in this section;
and
(2) may not be considered by the department of local
government finance in determining the county's maximum
permissible property tax levy limit under IC 6-1.1-18.5.
(h) The department of local government finance shall enforce an
agreement under subsection (d)(2).
(i) The budget agency shall adjust the certified distribution of a
county to provide for an increased distribution of taxes in the
immediately following calendar year after the county adopts an
increased tax rate under this section and in each calendar year
thereafter. The budget agency shall provide for a full transition to
certification of distributions as provided in section 17(a)(1) through
17(a)(2) of this chapter in the manner provided in section 17(c) of
this chapter.
(j) The department shall separately designate a tax rate imposed
under this section in any tax form as the Howard County jail
operating and maintenance income tax.
As added by P.L.214-2005, SEC.19. Amended by P.L.224-2007,
SEC.80; P.L.182-2009(ss), SEC.224.
IC 6-3.5-6-29
Scott County additional rate; findings; uses
Sec. 29. (a) This section applies only to Scott County. Scott
County is a county in which:
(1) maintaining low property tax rates is essential to economic
development; and
(2) the use of additional county option income tax revenues as
provided in this section, rather than the use of property taxes, to
fund:
(A) the financing, construction, acquisition, improvement,
renovation, equipping, operation, or maintenance of jail
facilities; and
(B) the repayment of bonds issued or leases entered into for
the purposes described in clause (A), except operation or
maintenance;
promotes the purpose of maintaining low property tax rates.
(b) The county fiscal body may impose the county option income
tax on the adjusted gross income of resident county taxpayers at a
rate, in addition to the rates permitted by sections 8 and 9 of this
chapter, not to exceed twenty-five hundredths percent (0.25%).
Section 8(e) of this chapter applies to the application of the
additional rate to nonresident taxpayers.
(c) To impose the county option income tax as provided in this
section, the county fiscal body must adopt an ordinance finding and
determining that additional revenues from the county option income
tax are needed in the county to fund:
(1) the financing, construction, acquisition, improvement,
renovation, equipping, operation, or maintenance of jail
facilities; and
(2) the repayment of bonds issued or leases entered into for the
purposes described in subdivision (1), except operation or
maintenance.
(d) If the county fiscal body makes a determination under
subsection (c), the county fiscal body may adopt an additional tax
rate under subsection (b). Subject to the limitations in subsection (b),
the county fiscal body may amend an ordinance adopted under this
section to increase, decrease, or rescind the additional tax rate
imposed under this section. As soon as practicable after the adoption
of an ordinance under this section, the county fiscal body shall send
a certified copy of the ordinance to the county auditor, the
department of local government finance, and the department. An
ordinance adopted under this section before June 1, 2006, or August
1 in a subsequent year applies to the imposition of county income
taxes after June 30 (in the case of an ordinance adopted before June
1, 2006) or September 30 (in the case of an ordinance adopted in
2007 or thereafter) in that year. An ordinance adopted under this
section after May 31, 2006, or July 31 of a subsequent year initially
applies to the imposition of county option income taxes after June 30
(in the case of an ordinance adopted before June 1, 2006) or
September 30 (in the case of an ordinance adopted in 2007 or
thereafter) of the immediately following year.
(e) If the county imposes an additional tax rate under this section,
the county treasurer shall establish a county jail revenue fund to be
used only for the purposes described in this section. County option
income tax revenues derived from the tax rate imposed under this
section shall be deposited in the county jail revenue fund before
making a certified distribution under section 18 of this chapter.
(f) County option income tax revenues derived from an additional
tax rate imposed under this section:
(1) may be used only for the purposes described in this section;
(2) may not be considered by the department of local
government finance in determining the county's maximum
permissible property tax levy limit under IC 6-1.1-18.5; and
(3) may be pledged for the repayment of bonds issued or leases
entered into to fund the purposes described in subsection (c)(1),
except operation or maintenance.
(g) If the county imposes an additional tax rate under this section,
the budget agency shall adjust the certified distribution of the county
to provide for an increased distribution of taxes in the immediately
following calendar year after the county adopts the increased tax rate
and in each calendar year thereafter. The budget agency shall provide
for a full transition to certification of distributions as provided in
section 17(a)(1) through 17(a)(2) of this chapter in the manner
provided in section 17(c) of this chapter.
As added by P.L.162-2006, SEC.32 and P.L.184-2006, SEC.7.
Amended by P.L.1-2007, SEC.64; P.L.224-2007, SEC.81;
P.L.182-2009(ss), SEC.225.
IC 6-3.5-6-30
Rate for property tax levy freeze
Sec. 30. (a) In a county in which the county option income tax is
in effect, the county income tax 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 option adjusted gross
income tax nor the county option income tax is in effect, the county
income tax 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 income
tax 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 income
tax council first imposes a tax rate under this section:
(1) The county income tax council shall, in the ordinance
imposing the tax rate, specify the tax rate for each of the
following two (2) years.
(2) The tax rate that must be imposed in the county 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 that year; multiplied by
(B) the following:
(i) In a county containing a consolidated city, one and
five-tenths (1.5).
(ii) In a county other than a county containing a
consolidated city, two (2).
(3) The tax rate that must be imposed in the county 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 income
tax council increases a tax rate under this section:
(1) The county income tax council shall, in the ordinance
increasing the tax rate, specify the tax rate for the following
year.
(2) The tax rate that must be imposed in the county 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 the year the tax rate is increased; plus
(B) the tax rate currently in effect in the county under this
section.
The tax rate under this subdivision continues in effect in later
years unless the tax rate is increased under this section.
(3) The levy limitations in IC 6-1.1-18.5-3(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 18 of this chapter.
(h) Notwithstanding sections 12 and 12.5 of this chapter, a county
income tax council may not decrease or rescind a tax rate imposed
under this 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 8 or 9 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 its budget and for determining the distribution of
taxes that are distributed on the basis of property tax levies.
(l) If a county income tax council imposes a tax rate under this
section, the county option income tax rate dedicated to locally
funded homestead credits in the county may not be decreased.
(m) In the year following the year in which a county first imposes
a tax rate under this section:
(1) one-third (1/3) of the tax revenue that is attributable to the
tax rate under this section must be deposited in the county
stabilization fund established under subsection (o), in the case
of a county containing a consolidated city; and
(2) one-half (1/2) of the tax revenue that is attributable to the
tax rate under this section must be deposited in the county
stabilization fund established under subsection (o), in the case
of a county not containing a consolidated city.
(n) A pledge of county option income taxes does not apply to
revenue attributable to a tax rate under this section.
(o) A county stabilization fund is established in each county that
imposes a tax rate under this section. The county stabilization fund
shall be administered by the county auditor. If for a year the certified
distributions attributable to a tax rate under this section exceed the
amount calculated under STEP ONE through STEP FOUR of
IC 6-3.5-1.5-1(a) that is used by the department of local government
finance and the department of state revenue to determine the tax rate
under this section, the excess shall be deposited in the county
stabilization fund. Money shall be distributed from the county
stabilization fund in a year by the county auditor to political
subdivisions entitled to a distribution of tax revenue attributable to
the tax rate under this section if:
(1) the certified distributions attributable to a tax rate under this
section are less than the amount calculated under STEP ONE
through STEP FOUR of IC 6-3.5-1.5-1(a) that is used by the
department of local government finance and the department of
state revenue to determine the tax rate under this section for a
year; or
(2) the certified distributions attributable to a tax rate under this
section in a year are less than the certified distributions
attributable to a tax rate under this section in the preceding year.
However, subdivision (2) does not apply to the year following the
first year in which certified distributions of revenue attributable to
the tax rate under this section are distributed to the county.
(p) Notwithstanding any other provision, a tax rate imposed under
this section may not exceed one percent (1%).
(q) A county income tax council must each year hold at least one
(1) public meeting at which the county council discusses whether the
tax rate under this section should be imposed or increased.
(r) The department of local government finance and the
department of state revenue may take any actions necessary to carry
out the purposes of this section.
(s) Notwithstanding any other provision, in Lake County the
county council (and not the county income tax council) is the entity
authorized to take actions concerning the additional tax rate under
this section.
As added by P.L.224-2007, SEC.83. Amended by P.L.146-2008,
SEC.341.
IC 6-3.5-6-31
Rate for public safety
Sec. 31. (a) As used in this section, "public safety" refers to the
following:
(1) A police and law enforcement system to preserve public
peace and order.
(2) A firefighting and fire prevention system.
(3) Emergency ambulance services (as defined in
IC 16-18-2-107).
(4) Emergency medical services (as defined in IC 16-18-2-110).
(5) Emergency action (as defined in IC 13-11-2-65).
(6) A probation department of a court.
(7) Confinement, supervision, services under a community
corrections program (as defined in IC 35-38-2.6-2), or other
correctional services for a person who has been:
(A) diverted before a final hearing or trial under an
agreement that is between the county prosecuting attorney
and the person or the person's custodian, guardian, or parent
and that provides for confinement, supervision, community
corrections services, or other correctional services instead of
a final action described in clause (B) or (C);
(B) convicted of a crime; or
(C) adjudicated as a delinquent child or a child in need of
services.
(8) A juvenile detention facility under IC 31-31-8.
(9) A juvenile detention center under IC 31-31-9.
(10) A county jail.
(11) A communications system (as defined in IC 36-8-15-3) or
an enhanced emergency telephone system (as defined in
IC 36-8-16-2).
(12) Medical and health expenses for jail inmates and other
confined persons.
(13) Pension payments for any of the following:
(A) A member of the fire department (as defined in
IC 36-8-1-8) or any other employee of a fire department.
(B) A member of the police department (as defined in
IC 36-8-1-9), a police chief hired under a waiver under
IC 36-8-4-6.5, or any other employee hired by a police
department.
(C) A county sheriff or any other member of the office of the
county sheriff.
(D) Other personnel employed to provide a service described
in this section.
(b) The county income tax council may adopt an ordinance to
impose an additional tax rate under this section to provide funding
for public safety if:
(1) the county income tax council has imposed a tax rate under
section 30 of this chapter, in the case of a county containing a
consolidated city; or
(2) the county income tax council has imposed a tax rate of at
least twenty-five hundredths of one percent (0.25%) under
section 30 of this chapter, a tax rate of at least twenty-five
hundredths of one percent (0.25%) under section 32 of this
chapter, or a total combined tax rate of at least twenty-five
hundredths of one percent (0.25%) under sections 30 and 32 of
this chapter, in the case of a county other than a county
containing a consolidated city.
(c) A tax rate under this section may not exceed the following:
(1) Five-tenths of one percent (0.5%), in the case of a county
containing a consolidated city.
(2) Twenty-five hundredths of one percent (0.25%), in the case
of a county other than a county containing a consolidated city.
(d) If a county income tax council adopts an ordinance to impose
a tax rate under this section, the county auditor shall send a certified
copy of the ordinance to the department and the department of local
government finance by certified mail.
(e) A tax rate under this section is in addition to any other tax
rates imposed under this chapter and does not affect the purposes for
which other tax revenue under this chapter may be used.
(f) Except as provided in subsection (l), the county auditor shall
distribute the portion of the certified distribution that is attributable
to a tax rate under this section to the county and to each municipality
in the county. The amount that shall be distributed to the county or
municipality is equal to the result of:
(1) the portion of the certified distribution that is attributable to
a tax rate under this section; multiplied by
(2) a fraction equal to:
(A) the total property taxes being collected in the county by
the county or municipality for the calendar year; divided by
(B) the sum of the total property taxes being collected in the
county by the county and each municipality in the county for
the calendar year.
The county auditor shall make the distributions required by this
subsection not more than thirty (30) days after receiving the portion
of the certified distribution that is attributable to a tax rate under this
section. Tax revenue distributed to a county or municipality under
this subsection must be deposited into a separate account or fund and
may be appropriated by the county or municipality only for public
safety purposes.
(g) The department of local government finance may not require
a county or municipality receiving tax revenue under this section to
reduce the county's or municipality's property tax levy for a
particular year on account of the county's or municipality's receipt of
the tax revenue.
(h) The tax rate under this section and the tax revenue attributable
to the tax rate under this section shall not be considered for purposes
of computing:
(1) the maximum income tax rate that may be imposed in a
county under section 8 or 9 of this chapter or any other
provision of this chapter;
(2) the maximum permissible property tax levy under 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 30 of this chapter.
(j) The department of local government finance and the
department of state revenue may take any actions necessary to carry
out the purposes of this section.
(k) Notwithstanding any other provision, in Lake County the
county council (and not the county income tax council) is the entity
authorized to take actions concerning the additional tax rate under
this section.
(l) Two (2) or more political subdivisions that are entitled to
receive a distribution under this section may adopt resolutions
providing that some part or all of those distributions shall instead be
paid to one (1) political subdivision in the county to carry out
specific public safety purposes specified in the resolutions.
As added by P.L.224-2007, SEC.84. Amended by P.L.146-2008,
SEC.342.
IC 6-3.5-6-32
Rate for property tax relief
Sec. 32. (a) A county income tax council may impose a tax rate
under this section to provide property tax relief to taxpayers in the
county. A county income tax council is not required to impose any
other tax before imposing a tax rate under this section.
(b) A tax rate under this section may be imposed in increments of
five-hundredths of one percent (0.05%) determined by the county
income tax council. A tax rate under this section may not exceed one
percent (1%).
(c) A tax rate under this section is in addition to any other tax
rates imposed under this chapter and does not affect the purposes for
which other tax revenue under this chapter may be used.
(d) If a county income tax council adopts an ordinance to impose
or increase a tax rate under this section, 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 at the same time and in the same manner that
the county income tax council may impose or increase a tax rate
under section 30 of this chapter.
(f) Tax revenue attributable to a tax rate under this section may be
used for any combination of the following purposes, as specified by
ordinance of the county income tax council:
(1) The tax revenue may be used to provide local property tax
replacement credits at a uniform rate to all taxpayers in the
county. The local property tax replacement credits shall be
treated for all purposes as property tax levies. The county
auditor shall determine the local property tax replacement credit
percentage for a particular year based on the amount of tax
revenue that will be used under this subdivision to provide local
property tax replacement credits in that year. A county income
tax council may not adopt an ordinance determining that tax
revenue shall be used under this subdivision to provide local
property tax replacement credits at a uniform rate to all
taxpayers in the county unless the county council has done the
following:
(A) Made available to the public the county council's best
estimate of the amount of property tax replacement credits
to be provided under this subdivision to homesteads, other
residential property, commercial property, industrial
property, and agricultural property.
(B) Adopted a resolution or other statement acknowledging
that some taxpayers in the county that do not pay the tax rate
under this section will receive a property tax replacement
credit that is funded with tax revenue from the tax rate under
this section.
(2) The tax revenue may be used to uniformly increase (before
January 1, 2011) or uniformly provide (after December 31,
2010) the homestead credit percentage in the county. The
homestead credits shall be treated for all purposes as property
tax levies. The homestead credits do not reduce the basis for
determining any state homestead credit. The homestead credits
shall be applied to the net property taxes due on the homestead
after the application of all other assessed value deductions or
property tax deductions and credits that apply to the amount
owed under IC 6-1.1. The county auditor shall determine the
homestead credit percentage for a particular year based on the
amount of tax revenue that will be used under this subdivision
to provide homestead credits in that year.
(3) The tax revenue may be used to provide local property tax
replacement credits at a uniform rate for all qualified residential
property (as defined in IC 6-1.1-20.6-4 before January 1, 2009,
and as defined in section 1 of this chapter after December 31,
2008) in the county. The local property tax replacement credits
shall be treated for all purposes as property tax levies. The
county auditor shall determine the local property tax
replacement credit percentage for a particular year based on the
amount of tax revenue that will be used under this subdivision
to provide local property tax replacement credits in that year.
(4) This subdivision applies only to Lake County. The Lake
County council may adopt an ordinance providing that the tax
revenue from the tax rate under this section is used for any of
the following:
(A) To reduce all property tax levies imposed by the county
by the granting of property tax replacement credits against
those property tax levies.
(B) To provide local property tax replacement credits in
Lake County in the following manner:
(i) The tax revenue under this section that is collected
from taxpayers within a particular municipality in Lake
County (as determined by the department based on the
department's best estimate) shall be used only to provide
a local property tax credit against property taxes imposed
by that municipality.
(ii) The tax revenue under this section that is collected
from taxpayers within the unincorporated area of Lake
County (as determined by the department) shall be used
only to provide a local property tax credit against property
taxes imposed by the county. The local property tax credit
for the unincorporated area of Lake County shall be
available only to those taxpayers within the
unincorporated area of the county.
(C) To provide property tax credits in the following manner:
(i) Sixty percent (60%) of the tax revenue under this
section shall be used as provided in clause (B).
(ii) Forty percent (40%) of the tax revenue under this
section shall be used to provide property tax replacement
credits against property tax levies of the county and each
township and municipality in the county. The percentage
of the tax revenue distributed under this item that shall be
used as credits against the county's levies or against a
particular township's or municipality's levies is equal to
the percentage determined by dividing the population of
the county, township, or municipality by the sum of the
total population of the county, each township in the
county, and each municipality in the county.
The Lake County council shall determine whether the credits
under clause (A), (B), or (C) shall be provided to homesteads,
to all qualified residential property, or to all taxpayers. The
department of local government finance, with the assistance of
the budget agency, shall certify to the county auditor and the
fiscal body of the county and each township and municipality
in the county the amount of property tax credits under this
subdivision. Except as provided in subsection (g), the tax
revenue under this section that is used to provide credits under
this subdivision shall be treated for all purposes as property tax
levies.
The county income tax council may adopt an ordinance changing the
purposes for which tax revenue attributable to a tax rate under this
section shall be used in the following year.
(g) The tax rate under this section shall not be considered for
purposes of computing:
(1) the maximum income tax rate that may be imposed in a
county under section 8 or 9 of this chapter or any other
provision of this chapter;
(2) the maximum permissible property tax levy under STEP
EIGHT of IC 6-1.1-18.5-3(b); or
(3) the credit under IC 6-1.1-20.6.
(h) Tax revenue under this section shall be treated as a part of the
receiving civil taxing unit's or school corporation's property tax levy
for that year for purposes of fixing the budget of the civil taxing unit
or school corporation and for determining the distribution of taxes
that are distributed on the basis of property tax levies. To the extent
the county auditor determines that there is income tax revenue
remaining from the tax under this section after providing the property
tax replacement, the excess shall be credited to a dedicated county
account and may be used only for property tax replacement under
this section in subsequent years.
(i) The department of local government finance and the
department of state revenue may take any actions necessary to carry
out the purposes of this section.
(j) Notwithstanding any other provision, in Lake County the
county council (and not the county income tax council) is the entity
authorized to take actions concerning the tax rate under this section.
As added by P.L.224-2007, SEC.85. Amended by P.L.146-2008,
SEC.343; P.L.113-2010, SEC.65.
IC 6-3.5-6-33
Monroe County; additional rate for operation and maintenance of
juvenile detention center and other juvenile services facilities
Sec. 33. (a) This section applies only to Monroe County.
(b) Maintaining low property tax rates is essential to economic
development, and the use of county option income tax revenues as
provided in this chapter and as needed in the county to fund the
operation and maintenance of a juvenile detention center and other
facilities to provide juvenile services, rather than the use of property
taxes, promotes that purpose.
(c) In addition to the rates permitted by sections 8 and 9 of this
chapter, the county fiscal body may impose an additional county
option income tax at a rate of not more than twenty-five hundredths
percent (0.25%) on the adjusted gross income of resident county
taxpayers if the county fiscal body makes the finding and
determination set forth in subsection (d). Section 8(e) of this chapter
applies to the application of the additional rate to nonresident
taxpayers.
(d) In order to impose the county option income tax as provided
in this section, the county fiscal body must adopt an ordinance:
(1) finding and determining that revenues from the county
option income tax are needed in the county to fund the
operation and maintenance of a juvenile detention center and
other facilities necessary to provide juvenile services; and
(2) agreeing to freeze for the term in which an ordinance is in
effect under this section the part of any property tax levy
imposed in the county for the operation of the juvenile
detention center and other facilities covered by the ordinance at
the rate imposed in the year preceding the year in which a full
year of additional county option income tax is certified for
distribution to the county under this section.
(e) If the county fiscal body makes a determination under
subsection (d), the county fiscal body may adopt a tax rate under
subsection (c). Subject to the limitations in subsection (c), the county
fiscal body may amend an ordinance adopted under this section to
increase, decrease, or rescind the additional tax rate imposed under
this section. As soon as practicable after the adoption of an ordinance
under this section, the county fiscal body shall send a certified copy
of the ordinance to the county auditor, the department of local
government finance, and the department of state revenue. 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.
(f) The county treasurer shall establish a county juvenile detention
center revenue fund to be used only for the purposes described in this
section. County option income tax revenues derived from the tax rate
imposed under this section shall be deposited in the county juvenile
detention center revenue fund before a certified distribution is made
under section 18 of this chapter.
(g) County option income tax revenues derived from the tax rate
imposed under this section:
(1) may be used only for the purposes described in this section;
and
(2) may not be considered by the department of local
government finance in determining the county's maximum
permissible property tax levy limit under IC 6-1.1-18.5.
(h) The department of local government finance shall enforce an
agreement made under subsection (d)(2).
(i) The budget agency shall adjust the certified distribution of a
county to provide for an increased distribution of taxes in the
immediately following calendar year after the county adopts an
increased tax rate under this section and in each calendar year
thereafter. The budget agency shall provide for a full transition to
certification of distributions as provided in section 17(a)(1) through
17(a)(2) of this chapter in the manner provided in section 17(c) of
this chapter.
As added by P.L.224-2007, SEC.86. Amended by P.L.182-2009(ss),
SEC.226.
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