2017 Indiana Code
TITLE 6. Taxation
ARTICLE 3.6. LOCAL INCOME TAXES
CHAPTER 7. Special Purpose Rates
6-3.6-7-25. Additional rate for jail facilities in a county subject to a federal court order; uses; balance transfer to the county general fund

     Sec. 25. (a) This section applies only to a county that:

(1) operates a county jail that is subject to an order that:

(A) was issued by a federal district court before January 1, 2003; and

(B) has not been terminated;

(2) operates a county jail that fails to meet:

(A) American Correctional Association Jail Construction Standards; and

(B) Indiana jail operation standards adopted by the department of correction; and

(3) has insufficient revenue to finance the construction, acquisition, improvement, renovation, and equipping of a county jail and related buildings and parking facilities.

     (b) A county described in subsection (a) possesses unique economic development challenges due to underemployment in relation to similarly situated counties. Maintaining low property tax rates is essential to economic development. The use of a tax under this section for the purposes of this section, rather than the use of property taxes, promotes these purposes.

     (c) For purposes of this section, "county jail" includes any other penal facility that is:

(1) located in; and

(2) operated by;

the county.

     (d) The county fiscal body may impose a tax on the adjusted gross income of local taxpayers at a tax rate that does not exceed the lesser of the following:

(1) Twenty-five hundredths percent (0.25%).

(2) The rate necessary to carry out the purposes described in this section.

     (e) Revenue from a tax under this section may be used only for the following purposes:

(1) To finance, construct, acquire, improve, renovate, or equip a county jail and related buildings and parking facilities, including costs related to the demolition of existing buildings and the acquisition of land.

(2) To repay bonds issued or leases entered into for constructing, acquiring, improving, renovating, and equipping the county jail and related buildings and parking facilities, including costs related to the demolition of existing buildings and the acquisition of land.

     (f) The tax imposed under this section may be imposed only until the last of the following dates:

(1) The date on which the purposes described in subsection (e)(1) are completed.

(2) The date on which the last of any bonds issued (including any refunding bonds) or leases described in subsection (e)(2) are fully paid.

The term of the bonds issued (including any refunding bonds) or a lease entered into under subsection (e)(2) may not exceed thirty (30) years.

     (g) Funds accumulated from the tax under this section after:

(1) the redemption of bonds issued; or

(2) the final payment of lease rentals due under a lease entered into under this section;

shall be transferred to the county general fund.

As added by P.L.243-2015, SEC.10.