Citations Affected: Numerous provisions throughout the Indiana
Code.
Effective: Upon passage; January 1, 2007 (retroactive); July 1, 2007;
January 1, 2008; July 1, 2008.
January 23, 2007, read first time and referred to Committee on Ways and Means.
February 15, 2007, amended, reported _ Do Pass.
February 19, 2007, read second time, ordered engrossed. Engrossed.
February 26, 2007, read third time, passed. Yeas 94, nays 0.
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation and to make an appropriation.
subsection (a) may not be reduced to less than zero (0).
JULY 1, 2007]: Sec. 37. (a) Each year a person who is entitled to
receive the homestead credit provided under IC 6-1.1-20.9 for property
taxes payable in the following year is entitled to a standard deduction
from the assessed value of the real property, mobile home not assessed
as real property, or manufactured home not assessed as real property
that qualifies for the homestead credit. The auditor of the county shall
record and make the deduction for the person qualifying for the
deduction.
(b) Except as provided in section 40.5 of this chapter, the total
amount of the deduction that a person may receive under this section
for a particular year is the lesser of:
(1) one-half (1/2) sixty percent (60%) of the assessed value of
the real property, mobile home not assessed as real property, or
manufactured home not assessed as real property; or
(2) for property taxes first due and payable:
(A) before January 1, 2007, thirty-five thousand dollars
($35,000);
(B) after December 31, 2006, and before January 1, 2008,
forty-five thousand dollars ($45,000); and
(C) after December 31, 2007, thirty-five thousand dollars
($35,000). fifty thousand dollars ($50,000).
(c) A person who has sold real property, a mobile home not assessed
as real property, or a manufactured home not assessed as real property
to another person under a contract that provides that the contract buyer
is to pay the property taxes on the real property, mobile home, or
manufactured home may not claim the deduction provided under this
section with respect to that real property, mobile home, or
manufactured home.
and where the obsolescence may lead to a decline in
employment and tax revenues; and
(B) a residentially distressed area, except as otherwise
provided in this chapter.
(2) "City" means any city in this state, and "town" means any town
incorporated under IC 36-5-1.
(3) "New manufacturing equipment" means tangible personal
property that a deduction applicant:
(A) installs after February 28, 1983, and on or before the
approval deadline determined under section 9 of this chapter,
in an area that is declared an economic revitalization area after
February 28, 1983, in which a deduction for tangible personal
property is allowed;
(B) uses in the direct production, manufacture, fabrication,
assembly, extraction, mining, processing, refining, or finishing
of other tangible personal property, including but not limited
to use to dispose of solid waste or hazardous waste by
converting the solid waste or hazardous waste into energy or
other useful products;
(C) acquires for use as described in clause (B):
(i) in an arms length transaction from an entity that is not an
affiliate of the deduction applicant for use as described in
clause (B); and if the tangible personal property has been
previously used in Indiana before the installation
described in clause (A); or
(ii) in any manner if the tangible personal property has
never been previously used in Indiana before the
installation described in clause (A); and
(D) has never used for any purpose in Indiana before the
installation described in clause (A).
However, notwithstanding any other law, the term includes
tangible personal property that is used to dispose of solid waste or
hazardous waste by converting the solid waste or hazardous waste
into energy or other useful products and was installed after March
1, 1993, and before March 2, 1996, even if the property was
installed before the area where the property is located was
designated as an economic revitalization area or the statement of
benefits for the property was approved by the designating body.
(4) "Property" means a building or structure, but does not include
land.
(5) "Redevelopment" means the construction of new structures,
in economic revitalization areas, either:
receipts, executed lease agreements, or any other evidence of
occupation that the department of local government finance
requires.
valuation of the tangible property;
(C) any credits that apply in the determination of the tax
liability; and
(D) the county auditor's best estimate of the effects on the tax
liability that might result from actions of:
(i) the county board of tax adjustment (before January 1,
2009) or the county board of tax and capital projects
review (after December 31, 2008); or
(ii) the department of local government finance;
(3) a prominently displayed notation that:
(A) the estimate under subdivision (2) is based on the best
information available at the time the statement is mailed; and
(B) based on various factors, including potential actions by:
(i) the county board of tax adjustment (before January 1,
2009) or the county board of tax and capital projects
review (after December 31, 2008); or
(ii) the department of local government finance;
it is possible that the tax liability as finally determined will
differ substantially from the estimate;
(4) comparative information showing the amount of property
taxes for which the person is liable to each political subdivision
on the tangible property for taxes first due and payable in the
current year; and
(5) the date, time, and place at which the political subdivision will
hold a public hearing on the political subdivision's estimated
budget and proposed tax rate and tax levy as required under
subsection (a).
(c) The department of local government finance shall:
(1) prescribe a form for; and
(2) provide assistance to county auditors in preparing;
statements under subsection (b). Mailing the statement described in
subsection (b) to a mortgagee maintaining an escrow account for a
person who is liable for any property taxes shall not be construed as
compliance with subsection (b).
(d) The board of directors of a solid waste management district
established under IC 13-21 or IC 13-9.5-2 (before its repeal) may
conduct the public hearing required under subsection (a):
(1) in any county of the solid waste management district; and
(2) in accordance with the annual notice of meetings published
under IC 13-21-5-2.
(e) The trustee of each township in the county shall estimate the
amount necessary to meet the cost of township assistance in the
township for the ensuing calendar year. The township board shall adopt
with the township budget a tax rate sufficient to meet the estimated cost
of township assistance. The taxes collected as a result of the tax rate
adopted under this subsection are credited to the township assistance
fund.
(f) A county shall adopt with the county budget and the department
of local government finance shall certify under section 16 of this
chapter a tax rate sufficient to raise the levy necessary to pay the
following:
(1) The cost of child services (as defined in IC 12-19-7-1) of the
county payable from the family and children's fund.
(2) The cost of children's psychiatric residential treatment
services (as defined in IC 12-19-7.5-1) of the county payable from
the children's psychiatric residential treatment services fund.
A budget, tax rate, or tax levy adopted by a county fiscal body or
approved or modified by a county board of tax adjustment that is less
than the levy necessary to pay the costs described in subdivision (1) or
(2) shall not be treated as a final budget, tax rate, or tax levy under
section 11 of this chapter.
any time after introduction of the budget.
(b) Ten (10) or more taxpayers may object to a budget, tax rate, or
tax levy of a political subdivision fixed under subsection (a) by filing
an objection petition with the proper officers of the political
subdivision not more than seven (7) days after the hearing. The
objection petition must specifically identify the provisions of the
budget, tax rate, and tax levy to which the taxpayers object.
(c) If a petition is filed under subsection (b), the fiscal body of the
political subdivision shall adopt with its budget a finding concerning
the objections in the petition and any testimony presented at the
adoption hearing.
(d) This subsection does not apply to a school corporation. Each
year at least two (2) days before the first meeting after September 20
of the county board of tax adjustment (before January 1, 2009) or the
county board of tax and capital projects review (after December
31, 2008) held under IC 6-1.1-29-4, a political subdivision shall file
with the county auditor:
(1) a statement of the tax rate and levy fixed by the political
subdivision for the ensuing budget year;
(2) two (2) copies of the budget adopted by the political
subdivision for the ensuing budget year; and
(3) two (2) copies of any findings adopted under subsection (c).
Each year the county auditor shall present these items to the county
board of tax adjustment (before January 1, 2009) or the county
board of tax and capital projects review (after December 31, 2008)
at the board's first meeting under IC 6-1.1-29-4 after September 20
of that year.
(e) In a consolidated city and county and in a second class city, the
clerk of the fiscal body shall, notwithstanding subsection (d), file the
adopted budget and tax ordinances with the county board of tax
adjustment (before January 1, 2009) or the county board of tax and
capital projects review (after December 31, 2008) within two (2)
days after the ordinances are signed by the executive, or within two (2)
days after action is taken by the fiscal body to override a veto of the
ordinances, whichever is later.
(f) If a fiscal body does not fix the budget, tax rate, and tax levy of
the political subdivisions for the ensuing budget year as required under
this section, the most recent annual appropriations and annual tax levy
are continued for the ensuing budget year.
population of more than one hundred five thousand (105,000) but less
than one hundred twenty thousand (120,000).
(b) Before February 1 of each year, the officers of the school
corporation shall meet to fix the budget for the school corporation for
the ensuing budget year, with notice given by the same officers.
However, if a resolution adopted under subsection (d) is in effect, the
officers shall meet to fix the budget for the ensuing budget year before
September 20.
(c) Each year, at least two (2) days before the first meeting after
September 20 of the county board of tax adjustment (before January
1, 2009) or the county board of tax and capital projects review
(after December 31, 2008) held under IC 6-1.1-29-4, the school
corporation shall file with the county auditor:
(1) a statement of the tax rate and tax levy fixed by the school
corporation for the ensuing budget year;
(2) two (2) copies of the budget adopted by the school corporation
for the ensuing budget year; and
(3) any written notification from the department of local
government finance under section 16(i) of this chapter that
specifies a proposed revision, reduction, or increase in the budget
adopted by the school corporation for the ensuing budget year.
Each year the county auditor shall present these items to the county
board of tax adjustment (before January 1, 2009) or the county
board of tax and capital projects review (after December 31, 2008)
at the board's first meeting after September 20 of that year.
(d) The governing body of the school corporation may adopt a
resolution to cease using a school year budget year and return to using
a calendar year budget year. A resolution adopted under this subsection
must be adopted after January 1 and before July 1. The school
corporation's initial calendar year budget year following the adoption
of a resolution under this subsection begins on January 1 of the year
following the year the resolution is adopted. The first six (6) months of
the initial calendar year budget for the school corporation must be
consistent with the last six (6) months of the final school year budget
fixed by the department of local government finance before the
adoption of a resolution under this subsection.
(e) A resolution adopted under subsection (d) may be rescinded by
a subsequent resolution adopted by the governing body. If the
governing body of the school corporation rescinds a resolution adopted
under subsection (d) and returns to a school year budget year, the
school corporation's initial school year budget year begins on July 1
following the adoption of the rescinding resolution and ends on June
30 of the following year. The first six (6) months of the initial school
year budget for the school corporation must be consistent with the last
six (6) months of the last calendar year budget fixed by the department
of local government finance before the adoption of a rescinding
resolution under this subsection.
January 1, 2009) or the county board of tax and capital projects
review (after December 31, 2008) shall notify the county auditor of
each affected county of the action of the board. Appeals from actions
of the county board of tax adjustment (before January 1, 2009) or the
county board of tax and capital projects review (after December
31, 2008) may be initiated in any affected county.
that they do not exceed the maximum rates permitted under
IC 6-1.1-18, the county auditor shall calculate and fix the tax rate
within each political subdivision of the county so that the maximum
rate permitted under IC 6-1.1-18 is not exceeded.
(c) When the county auditor calculates and fixes tax rates, he the
county auditor shall send a certificate notice of the rate he has fixed
those rates to each political subdivision of the county. He The county
auditor shall send these notices within five (5) days after publication
of the notice required by section 12 of this chapter.
(d) When the county auditor calculates and fixes tax rates, his that
action shall be treated as if it were the action of the county board of tax
adjustment (before January 1, 2009) or the county board of tax and
capital projects review (after December 31, 2008).
county board of tax adjustment (before January 1, 2009) or the
county board of tax and capital projects review (after December
31, 2008), the county auditor shall within fifteen (15) days prepare a
notice of the tax rates to be charged on each one hundred dollars ($100)
of assessed valuation for the various funds in each taxing district. The
notice shall also inform the taxpayers of the manner in which they may
initiate an appeal of the county board's action. The county auditor shall
post the notice at the county courthouse and publish it in two (2)
newspapers which represent different political parties and which have
a general circulation in the county.
body.
IC 6-1.1-20-3.1 through IC 6-1.1-20-3.2.
(5) To pay a judgment rendered against the political subdivision.
(6) To meet the requirements of the family and children's fund for
child services (as defined in IC 12-19-7-1).
(7) To meet the requirements of the county hospital care for the
indigent fund.
(8) To meet the requirements of the children's psychiatric
residential treatment services fund for children's psychiatric
residential treatment services (as defined in IC 12-19-7.5-1).
(c) Except as otherwise provided in IC 6-1.1-19, IC 6-1.1-18.5,
IC 20-45, or IC 20-46, a county board of tax adjustment (before
January 1, 2009), the county board of tax and capital projects
review (after December 31, 2008), a county auditor, or the department
of local government finance may review the portion of a tax rate
described in subsection (b) only to determine if it exceeds the portion
actually needed to provide for one (1) of the purposes itemized in that
subsection.
provided an area outside its boundaries with services on a contractual
basis and in the ensuing calendar year that area has been annexed by
the civil taxing unit, the amount to be entered under STEP SIX of
subsection (a) or STEP SIX of subsection (b), as the case may be,
equals the amount paid by the annexed area during the immediately
preceding calendar year for services that the civil taxing unit must
provide to that area during the ensuing calendar year as a result of the
annexation. In all other cases, the amount to be entered under STEP
SIX of subsection (a) or STEP SIX of subsection (b), as the case may
be, equals zero (0).
(d) This subsection applies only to civil taxing units located in a
county having a county adjusted gross income tax rate for resident
county taxpayers (as defined in IC 6-3.5-1.1-1) of one percent (1%) as
of January 1 of the ensuing calendar year. For each civil taxing unit, the
amount to be added to the amount determined in subsection (e), STEP
FOUR, is determined using the following formula:
STEP ONE: Multiply the civil taxing unit's maximum permissible
ad valorem property tax levy for the preceding calendar year by
two percent (2%).
STEP TWO: For the determination year, the amount to be used as
the STEP TWO amount is the amount determined in subsection
(f) for the civil taxing unit. For each year following the
determination year the STEP TWO amount is the lesser of:
(A) the amount determined in STEP ONE; or
(B) the amount determined in subsection (f) for the civil taxing
unit.
STEP THREE: Determine the greater of:
(A) zero (0); or
(B) the civil taxing unit's certified share for the ensuing
calendar year minus the greater of:
(i) the civil taxing unit's certified share for the calendar year
that immediately precedes the ensuing calendar year; or
(ii) the civil taxing unit's base year certified share.
STEP FOUR: Determine the greater of:
(A) zero (0); or
(B) the amount determined in STEP TWO minus the amount
determined in STEP THREE.
Add the amount determined in STEP FOUR to the amount determined
in subsection (e), STEP THREE, as provided in subsection (e), STEP
FOUR.
(e) For each civil taxing unit, the amount to be subtracted under
subsection (b), STEP EIGHT, is determined using the following
formula:
STEP ONE: Determine the lesser of the civil taxing unit's base
year certified share for the ensuing calendar year, as determined
under section 5 of this chapter, or the civil taxing unit's certified
share for the ensuing calendar year.
STEP TWO: Determine the greater of:
(A) zero (0); or
(B) the remainder of:
(i) the amount of federal revenue sharing money that was
received by the civil taxing unit in 1985; minus
(ii) the amount of federal revenue sharing money that will be
received by the civil taxing unit in the year preceding the
ensuing calendar year.
STEP THREE: Determine the lesser of:
(A) the amount determined in STEP TWO; or
(B) the amount determined in subsection (f) for the civil taxing
unit.
STEP FOUR: Add the amount determined in subsection (d),
STEP FOUR, to the amount determined in STEP THREE.
STEP FIVE: Subtract the amount determined in STEP FOUR
from the amount determined in STEP ONE.
(f) As used in this section, a taxing unit's "determination year"
means the latest of:
(1) calendar year 1987, if the taxing unit is treated as being
located in an adopting county for calendar year 1987 under
section 4 of this chapter;
(2) the taxing unit's base year, as defined in section 5 of this
chapter, if the taxing unit is treated as not being located in an
adopting county for calendar year 1987 under section 4 of this
chapter; or
(3) the ensuing calendar year following the first year that the
taxing unit is located in a county that has a county adjusted gross
income tax rate of more than one-half percent (0.5%) on July 1 of
that year.
The amount to be used in subsections (d) and (e) for a taxing unit
depends upon the taxing unit's certified share for the ensuing calendar
year, the taxing unit's determination year, and the county adjusted gross
income tax rate for resident county taxpayers (as defined in
IC 6-3.5-1.1-1) that is in effect in the taxing unit's county on July 1 of
the year preceding the ensuing calendar year. For the determination
year and the ensuing calendar years following the taxing unit's
determination year, the amount is the taxing unit's certified share for
the ensuing calendar year multiplied by the appropriate factor
prescribed in the following table:
apply to ad valorem property taxes imposed by a civil taxing unit if the
civil taxing unit is committed to levy the taxes to pay or fund either:
(1) bonded indebtedness; or
(2) lease rentals under a lease with an original term of at least five
(5) years.
(b) This subsection does not apply to bonded indebtedness
incurred or leases executed for a capital project approved by a
county board of tax and capital projects review under IC 6-1.1-29.5
after December 31, 2008. A civil taxing unit must file a petition
requesting approval from the department of local government finance
to incur bonded indebtedness or execute a lease with an original term
of at least five (5) years not later than twenty-four (24) months after the
first date of publication of notice of a preliminary determination under
IC 6-1.1-20-3.1(2), unless the civil taxing unit demonstrates that a
longer period is reasonable in light of the civil taxing unit's facts and
circumstances. A civil taxing unit must obtain approval from the
department of local government finance before the civil taxing unit
may:
(1) incur the bonded indebtedness; or
(2) enter into the lease.
Before January 1, 2009, the department of local government finance
may seek recommendations from the local government tax control
board established by section 11 of this chapter when determining
whether to authorize incurring the bonded indebtedness or the
execution of the lease.
(c) The department of local government finance shall render a
decision within three (3) months after the date it receives a request for
approval under subsection (b). However, the department of local
government finance may extend this three (3) month period by an
additional three (3) months if, at least ten (10) days before the end of
the original three (3) month period, the department sends notice of the
extension to the executive officer of the civil taxing unit. A civil taxing
unit may petition for judicial review of the final determination of the
department of local government finance under this section. The petition
must be filed in the tax court not more than forty-five (45) days after
the department enters its order under this section.
(d) A civil taxing unit does not need approval under subsection (b)
to obtain temporary loans made in anticipation of and to be paid from
current revenues of the civil taxing unit actually levied and in the
course of collection for the fiscal year in which the loans are made.
(e) For purposes of computing the ad valorem property tax levy
limits imposed on a civil taxing unit by section 3 of this chapter, the
civil taxing unit's ad valorem property tax levy for a calendar year does
not include that part of its levy that is committed to fund or pay bond
indebtedness or lease rentals with an original term of five (5) years in
subsection (a).
(f) A taxpayer may petition for judicial review of the final
determination of the department of local government finance under this
section. The petition must be filed in the tax court not more than thirty
(30) days after the department enters its order under this section.
proceed to the examination and consideration of the merits of the civil
taxing unit's appeal.
(c) In considering an appeal, the local government tax control board
or the county board of tax and capital projects review has the power
to conduct hearings, require any officer or member of the appealing
civil taxing unit to appear before it, or require any officer or member
of the appealing civil taxing unit to provide the board with any relevant
records or books.
(d) If an officer or member:
(1) fails to appear at a hearing of the local government tax control
board or the county board of tax and capital projects review
after having been given written notice from the local government
tax control board or the county board of tax and capital
projects review requiring that person's attendance; or
(2) fails to produce for the local government tax control board's
or the county board of tax and capital projects review's use
the books and records that the local government tax control board
or the county board of tax and capital projects review by
written notice required the officer or member to produce;
then the local government tax control board or the county board of
tax and capital projects review may file an affidavit in the circuit
court in the jurisdiction in which the officer or member may be found
setting forth the facts of the failure.
(e) Upon the filing of an affidavit under subsection (d), the circuit
court shall promptly issue a summons, and the sheriff of the county
within which the circuit court is sitting shall serve the summons. The
summons must command the officer or member to appear before the
local government tax control board or the county board of tax and
capital projects review, to provide information to the local
government tax control board or the county board of tax and capital
projects review, or to produce books and records for the local
government tax control board's or the county board of tax and
capital projects review's use, as the case may be. Disobedience of the
summons constitutes, and is punishable as, a contempt of the circuit
court that issued the summons.
(f) All expenses incident to the filing of an affidavit under
subsection (d) and the issuance and service of a summons shall be
charged to the officer or member against whom the summons is issued,
unless the circuit court finds that the officer or member was acting in
good faith and with reasonable cause. If the circuit court finds that the
officer or member was acting in good faith and with reasonable cause
or if an affidavit is filed and no summons is issued, the expenses shall
be charged against the county in which the affidavit was filed and shall
be allowed by the proper fiscal officers of that county.
(g) The fiscal officer of a civil taxing unit that appeals under section
16 of this chapter for relief from levy limitations shall immediately file
a copy of the appeal petition with the county auditor and the county
treasurer of the county in which the unit is located.
of the limitations established under section 3 of this chapter, if the
local government tax control board finds that the quotient
determined under STEP SIX of the following formula is equal to
or greater than one and two-hundredths (1.02):
STEP ONE: Determine the three (3) calendar years that most
immediately precede the ensuing calendar year and in which
a statewide general reassessment of real property does not first
become effective.
STEP TWO: Compute separately, for each of the calendar
years determined in STEP ONE, the quotient (rounded to the
nearest ten-thousandth (0.0001)) of the sum of the civil taxing
unit's total assessed value of all taxable property and the total
assessed value of property tax deductions in the unit under
IC 6-1.1-12-41 or IC 6-1.1-12-42 in the particular calendar
year, divided by the sum of the civil taxing unit's total assessed
value of all taxable property and the total assessed value of
property tax deductions in the unit under IC 6-1.1-12-41 or
IC 6-1.1-12-42 in the calendar year immediately preceding the
particular calendar year.
STEP THREE: Divide the sum of the three (3) quotients
computed in STEP TWO by three (3).
STEP FOUR: Compute separately, for each of the calendar
years determined in STEP ONE, the quotient (rounded to the
nearest ten-thousandth (0.0001)) of the sum of the total
assessed value of all taxable property in all counties and the
total assessed value of property tax deductions in all counties
under IC 6-1.1-12-41 or IC 6-1.1-12-42 in the particular
calendar year, divided by the sum of the total assessed value
of all taxable property in all counties and the total assessed
value of property tax deductions in all counties under
IC 6-1.1-12-41 or IC 6-1.1-12-42 in the calendar year
immediately preceding the particular calendar year.
STEP FIVE: Divide the sum of the three (3) quotients
computed in STEP FOUR by three (3).
STEP SIX: Divide the STEP THREE amount by the STEP
FIVE amount.
The civil taxing unit may increase its levy by a percentage not
greater than the percentage by which the STEP THREE amount
exceeds the percentage by which the civil taxing unit may
increase its levy under section 3 of this chapter based on the
assessed value growth quotient determined under section 2 of this
chapter.
include that part of the payments or contributions that are funded
by distributions made to a civil taxing unit by the state.
(6) A levy increase may not be granted under this subdivision
for property taxes first due and payable after December 31,
2009. Permission to increase its levy in excess of the limitations
established under section 3 of this chapter if the local government
tax control board finds that:
(A) the township's township assistance ad valorem property
tax rate is less than one and sixty-seven hundredths cents
($0.0167) per one hundred dollars ($100) of assessed
valuation; and
(B) the township needs the increase to meet the costs of
providing township assistance under IC 12-20 and IC 12-30-4.
The maximum increase that the board may recommend for a
township is the levy that would result from an increase in the
township's township assistance ad valorem property tax rate of
one and sixty-seven hundredths cents ($0.0167) per one hundred
dollars ($100) of assessed valuation minus the township's ad
valorem property tax rate per one hundred dollars ($100) of
assessed valuation before the increase.
(7) A levy increase may not be granted under this subdivision
for property taxes first due and payable after December 31,
2009. Permission to a civil taxing unit to increase its levy in
excess of the limitations established under section 3 of this
chapter if:
(A) the increase has been approved by the legislative body of
the municipality with the largest population where the civil
taxing unit provides public transportation services; and
(B) the local government tax control board finds that the civil
taxing unit needs the increase to provide adequate public
transportation services.
The local government tax control board shall consider tax rates
and levies in civil taxing units of comparable population, and the
effect (if any) of a loss of federal or other funds to the civil taxing
unit that might have been used for public transportation purposes.
However, the increase that the board may recommend under this
subdivision for a civil taxing unit may not exceed the revenue that
would be raised by the civil taxing unit based on a property tax
rate of one cent ($0.01) per one hundred dollars ($100) of
assessed valuation.
(8) A levy increase may not be granted under this subdivision
for property taxes first due and payable after December 31,
2009. Permission to a civil taxing unit to increase the unit's levy
in excess of the limitations established under section 3 of this
chapter if the local government tax control board finds that:
(A) the civil taxing unit is:
(i) a county having a population of more than one hundred
forty-eight thousand (148,000) but less than one hundred
seventy thousand (170,000);
(ii) a city having a population of more than fifty-five
thousand (55,000) but less than fifty-nine thousand (59,000);
(iii) a city having a population of more than twenty-eight
thousand seven hundred (28,700) but less than twenty-nine
thousand (29,000);
(iv) a city having a population of more than fifteen thousand
four hundred (15,400) but less than sixteen thousand six
hundred (16,600); or
(v) a city having a population of more than seven thousand
(7,000) but less than seven thousand three hundred (7,300);
and
(B) the increase is necessary to provide funding to undertake
removal (as defined in IC 13-11-2-187) and remedial action
(as defined in IC 13-11-2-185) relating to hazardous
substances (as defined in IC 13-11-2-98) in solid waste
disposal facilities or industrial sites in the civil taxing unit that
have become a menace to the public health and welfare.
The maximum increase that the local government tax control
board may recommend for such a civil taxing unit is the levy that
would result from a property tax rate of six and sixty-seven
hundredths cents ($0.0667) for each one hundred dollars ($100)
of assessed valuation. For purposes of computing the ad valorem
property tax levy limit imposed on a civil taxing unit under
section 3 of this chapter, the civil taxing unit's ad valorem
property tax levy for a particular year does not include that part of
the levy imposed under this subdivision. In addition, a property
tax increase permitted under this subdivision may be imposed for
only two (2) calendar years.
(9) A levy increase may not be granted under this subdivision
for property taxes first due and payable after December 31,
2009. Permission for a county:
(A) having a population of more than eighty thousand (80,000)
but less than ninety thousand (90,000) to increase the county's
levy in excess of the limitations established under section 3 of
this chapter, if the local government tax control board finds
that the county needs the increase to meet the county's share of
the costs of operating a jail or juvenile detention center,
including expansion of the facility, if the jail or juvenile
detention center is opened after December 31, 1991;
(B) that operates a county jail or juvenile detention center that
is subject to an order that:
(i) was issued by a federal district court; and
(ii) has not been terminated;
(C) that operates a county jail that fails to meet:
(i) American Correctional Association Jail Construction
Standards; and
(ii) Indiana jail operation standards adopted by the
department of correction; or
(D) that operates a juvenile detention center that fails to meet
standards equivalent to the standards described in clause (C)
for the operation of juvenile detention centers.
Before recommending an increase, the local government tax
control board shall consider all other revenues available to the
county that could be applied for that purpose. An appeal for
operating funds for a jail or a juvenile detention center shall be
considered individually, if a jail and juvenile detention center are
both opened in one (1) county. The maximum aggregate levy
increases that the local government tax control board may
recommend for a county equals the county's share of the costs of
operating the jail or a juvenile detention center for the first full
calendar year in which the jail or juvenile detention center is in
operation.
(10) A levy increase may not be granted under this subdivision
for property taxes first due and payable after December 31,
2009. Permission for a township to increase its levy in excess of
the limitations established under section 3 of this chapter, if the
local government tax control board finds that the township needs
the increase so that the property tax rate to pay the costs of
furnishing fire protection for a township, or a portion of a
township, enables the township to pay a fair and reasonable
amount under a contract with the municipality that is furnishing
the fire protection. However, for the first time an appeal is granted
the resulting rate increase may not exceed fifty percent (50%) of
the difference between the rate imposed for fire protection within
the municipality that is providing the fire protection to the
township and the township's rate. A township is required to appeal
a second time for an increase under this subdivision if the
township wants to further increase its rate. However, a township's
rate may be increased to equal but may not exceed the rate that is
used by the municipality. More than one (1) township served by
the same municipality may use this appeal.
(11) A levy increase may not be granted under this subdivision
for property taxes first due and payable after December 31,
2009. Permission for a township to increase its levy in excess of
the limitations established under section 3 of this chapter, if the
local government tax control board finds that the township has
been required, for the three (3) consecutive years preceding the
year for which the appeal under this subdivision is to become
effective, to borrow funds under IC 36-6-6-14 to furnish fire
protection for the township or a part of the township. However,
the maximum increase in a township's levy that may be allowed
under this subdivision is the least of the amounts borrowed under
IC 36-6-6-14 during the preceding three (3) calendar years. A
township may elect to phase in an approved increase in its levy
under this subdivision over a period not to exceed three (3) years.
A particular township may appeal to increase its levy under this
section not more frequently than every fourth calendar year.
(12) A levy increase may not be granted under this subdivision
for property taxes first due and payable after December 31,
2009. Permission to a city having a population of more than
twenty-nine thousand (29,000) but less than thirty-one thousand
(31,000) to increase its levy in excess of the limitations
established under section 3 of this chapter if:
(A) an appeal was granted to the city under this section to
reallocate property tax replacement credits under IC 6-3.5-1.1
in 1998, 1999, and 2000; and
(B) the increase has been approved by the legislative body of
the city, and the legislative body of the city has by resolution
determined that the increase is necessary to pay normal
operating expenses.
The maximum amount of the increase is equal to the amount of
property tax replacement credits under IC 6-3.5-1.1 that the city
petitioned under this section to have reallocated in 2001 for a
purpose other than property tax relief.
(13) A levy increase may be granted under this subdivision
only for property taxes first due and payable after December
31, 2009. Permission to a civil taxing unit to increase its levy
in excess of the limitations established under section 3 of this
chapter if the civil taxing unit cannot carry out its
governmental functions for an ensuing calendar year under
the levy limitations imposed by section 3 of this chapter.
may recommend to the department of local government finance a
correction of any advertising error, mathematical error, or error in data
made at the local level for any calendar year that affects the
determination of the limitations established by section 3 of this chapter
or the tax rate or levy of a civil taxing unit. The department of local
government finance may on its own initiative correct such an
advertising error, mathematical error, or error in data for any civil
taxing unit.
(b) A correction made under subsection (a) for a prior calendar year
shall be applied to the civil taxing unit's levy limitations, rate, and levy
for the ensuing calendar year to offset any cumulative effect that the
error caused in the determination of the civil taxing unit's levy
limitations, rate, or levy for the ensuing calendar year.
was finally approved by the department of local government
finance.
(b) A civil taxing unit may request permission from the local
government tax control board (before January 1, 2009) or the county
board of tax and capital projects review (after December 31, 2008)
to impose an ad valorem property tax levy that exceeds the limits
imposed by section 3 of this chapter if the civil taxing unit experienced
a property tax revenue shortfall because of the payment of refunds that
resulted from appeals under this article and IC 6-1.5.
(c) If the local government tax control board (before January 1,
2009) or the county board of tax and capital projects review (after
December 31, 2008) determines that a shortfall described in subsection
(a) or (b) has occurred, it shall recommend to the department of local
government finance that the civil taxing unit be allowed to impose a
property tax levy exceeding the limit imposed by section 3 of this
chapter, and the department may adopt such recommendation.
However, the maximum amount by which the civil taxing unit's levy
may be increased over the limits imposed by section 3 of this chapter
equals the remainder of the civil taxing unit's property tax levy for the
particular calendar year as finally approved by the department of local
government finance minus the actual property tax levy collected by the
civil taxing unit for that particular calendar year.
(d) Any property taxes collected by a civil taxing unit over the limits
imposed by section 3 of this chapter under the authority of this section
may not be treated as a part of the civil taxing unit's maximum
permissible ad valorem property tax levy for purposes of determining
its maximum permissible ad valorem property tax levy for future years.
(e) If the department of local government finance authorizes an
excess tax levy under this section, it shall take appropriate steps to
insure that the proceeds are first used to repay any loan made to the
civil taxing unit for the purpose of meeting its current expenses.
distribute to other property owners. The county auditor may not
issue a petition or remonstrance form earlier than twenty-nine
(29) days after the notice is given under subdivision (1). The
county auditor shall certify the date of issuance on each petition
or remonstrance form that is distributed under this subdivision.
(4) The petitions and remonstrances must be verified in the
manner prescribed by the state board of accounts and filed with
the county auditor within the sixty (60) day period described in
subdivision (2) in the manner set forth in section 3.1 of this
chapter relating to requests for a petition and remonstrance
process.
(5) The county auditor must file a certificate and the petition or
remonstrance with the body of the political subdivision charged
with issuing bonds or entering into leases within fifteen (15)
business days of the filing of a petition or remonstrance under
subdivision (4), whichever applies, containing ten thousand
(10,000) signatures or less. The county auditor may take an
additional five (5) days to review and certify the petition or
remonstrance for each additional five thousand (5,000) signatures
up to a maximum of sixty (60) days. The certificate must state the
number of petitioners and remonstrators that are owners of real
property within the political subdivision.
(6) If a greater number of owners of real property within the
political subdivision sign a remonstrance than the number that
signed a petition, the bonds petitioned for may not be issued or
the lease petitioned for may not be entered into. The proper
officers of the political subdivision may not make a preliminary
determination to issue bonds or enter into a lease for the
controlled project defeated by the petition and remonstrance
process under this section or any other controlled project that is
not substantially different within one (1) year after the date of the
county auditor's certificate under subdivision (5). Withdrawal of
a petition carries the same consequences as a defeat of the
petition.
(7) After a political subdivision has gone through the petition and
remonstrance process set forth in this section, the political
subdivision is not required to follow any other remonstrance or
objection procedures under any other law (including section 5 of
this chapter) relating to bonds or leases designed to protect
owners of real property within the political subdivision from the
imposition of property taxes to pay debt service or lease rentals.
However, the political subdivision must still receive the approval
of the department of local government finance if required by:
(A) IC 6-1.1-18.5-8; or
(B) IC 20-46-7-8, IC 20-46-7-9, and IC 20-46-7-10.
from the conducting of slot machine gambling games at
racetracks.
(3) Any riverboat admissions taxes under IC 4-33-12-6 that
would otherwise be paid to the Indiana horse racing
commission but are instead replaced because of payments
dedicated to purses, breed development, and horsemen's
associations by persons licensed to conduct slot machine
gambling games at racetracks.
(c) Money may not be transferred, assigned, or otherwise
removed from the fund by the state board of finance, the budget
agency, or any other state agency except as provided in this section.
(d) Money in the fund at the end of a state fiscal year does not
revert to the state general fund.
(e) The treasurer of state shall invest the money in the fund not
currently needed to meet the obligations of the fund in the same
manner as other public money may be invested. Interest that
accrues from these investments shall be deposited in the fund.
(f) Money in the fund is appropriated continuously for the
purposes stated in section 3 of this chapter.
Sec. 3. Money in the fund may be used only for the following
purposes:
(1) Money in the fund shall be used to pay the cost of
increasing the state homestead credit under IC 6-1.1-20.9 in
2007 from 20% to 28%. Notwithstanding IC 6-1.1-20.9, if
initial license fees for a license to conduct slot machine
gambling games at racetracks are deposited into the fund in
2007, the homestead credit percentage in IC 6-1.1-20.9-2 is
increased from 20% to 28% for 2007. The department of local
government finance shall take the actions necessary to apply
the increased homestead credit. If a taxpayer pays more
property taxes first due and payable in 2007 than are required
after application of the increased homestead credit, the
overpayment shall be refunded to the taxpayer or credited
against the taxpayer's spring installment for property taxes
first due and payable in 2008, as determined by the
department of local government finance.
(2) Beginning in 2008, money in the fund shall be transferred
to the state general fund to pay one-half (1/2) of the cost to the
state of:
(A) providing homestead credits under IC 6-1.1-20.9; and
(B) making payments to school corporations and counties
to replace:
shall serve as chairperson of the circuit breaker relief appeal
board.
(2) The commissioner of the department of local government
finance or the commissioner's designee.
(3) The commissioner of the department of state revenue or
the commissioner's designee.
(4) The state examiner of the state board of accounts or the
state examiner's designee.
(5) The following members appointed by the governor:
(A) One (1) member appointed from nominees submitted
by the Indiana Association of Cities and Towns.
(B) One (1) member appointed from nominees submitted
by the Association of Indiana Counties.
(C) One (1) member appointed from nominees submitted
by the Indiana Association of School Superintendents.
(D) One (1) member appointed from nominees submitted
by the Indiana Library Federation.
(E) One (1) member appointed from nominees submitted
by the Indiana Township Association.
A member nominated and appointed under this subdivision
must be an elected official of a political subdivision.
(c) The members appointed under subsection (b)(5) serve at the
pleasure of the governor.
(d) Each member of the commission is entitled to
reimbursement for:
(1) traveling expenses as provided under IC 4-13-1-4; and
(2) other expenses actually incurred in connection with the
member's duties as provided in the state policies and
procedures established by the Indiana department of
administration and approved by the budget agency.
Sec. 5. (a) The department of local government finance shall
provide the circuit breaker board with the staff and assistance that
the circuit breaker board reasonably requires.
(b) The department of local government finance shall provide
from the department's budget funding to support the circuit
breaker board's duties under this chapter.
(c) The circuit breaker board may contract with accountants,
financial experts, and other advisors and consultants as necessary
to carry out the circuit breaker board's duties under this chapter.
Sec. 6. (a) For property taxes first due and payable in 2008 and
thereafter, the governing body of a county containing a distressed
political subdivision (or two (2) or more distressed political
subdivisions acting jointly) may petition the circuit breaker board
for relief as authorized under this chapter from the application of
the credit under IC 6-1.1-20.6 for a calendar year.
(b) A petition under subsection (a) must include a proposed
financial plan for political subdivisions in the county. The proposed
financial plan must include the following:
(1) Proposed budgets that would enable the distressed
political subdivisions in the county to cease being distressed
political subdivisions.
(2) Proposed efficiencies, consolidations, cost reductions, uses
of alternative or additional revenues, or other actions that
would enable the distressed political subdivisions in the
county to cease being distressed political subdivisions.
(c) The circuit breaker board may adopt procedures governing
the timing and required content of a petition under subsection (a).
Sec. 7. (a) If a county (or two (2) or more distressed political
subdivisions acting jointly) submits a petition under section 6 of
this chapter, the circuit breaker board shall review the petition and
assist in establishing a financial plan for political subdivisions in
the county.
(b) In reviewing a petition submitted under section 6 of this
chapter, the circuit breaker board:
(1) shall consider:
(A) the proposed financial plan;
(B) comparisons to similarly situated political subdivisions;
(C) the existing revenue and expenditures of political
subdivisions in the county; and
(D) any other factor considered relevant by the circuit
breaker board; and
(2) may establish subcommittees or temporarily appoint
nonvoting members to the circuit breaker board to assist in
the review.
Sec. 8. (a) The circuit breaker board may authorize relief as
provided in subsection (b) from the application of the credit under
IC 6-1.1-20.6 for a calendar year if the governing body of each
political subdivision in the county has adopted a resolution
agreeing to the terms of the financial plan.
(b) If the conditions of subsection (a) are satisfied, the circuit
breaker board may, notwithstanding IC 6-1.1-20.6, do either of the
following:
(1) Increase uniformly in the county the percentage threshold
(specified as a percentage of gross assessed value) at which the
credit under IC 6-1.1-20.6-7 applies to a person's property tax
liability.
(2) Provide for a uniform percentage reduction to credits
otherwise provided under IC 6-1.1-20.6-7 in the county.
(c) If the circuit breaker board provides relief described in
subsection (b) in a county, the circuit breaker board shall conduct
audits and reviews as necessary to determine whether the political
subdivisions in the county are abiding by the terms of financial
plan agreed to under subsection (a).
attributable to the person's qualified homestead property
for property taxes first due and payable in that calendar
year exceeds two percent (2%) of the gross assessed value
that is the basis for determination of property taxes on the
qualified homestead property for property taxes first due
and payable in that calendar year.
(B) In the case of property tax liability attributable to
property other than qualified homestead property, the
amount of the credit is the amount by which the person's
property tax liability attributable to the person's real
property (other than qualified homestead property) and
personal property for property taxes first due and payable
in that calendar year exceeds three percent (3%) of the
gross assessed value that is the basis for determination of
property taxes on the real property (other than qualified
homestead property) and personal property for property
taxes first due and payable in that calendar year.
of the individual's homestead before those deductions are applied
against any other property.
(d) The percentage of the credit referred to in subsection (b)(1) is as
follows:
YEAR PERCENTAGE
OF THE CREDIT
1996 8%
1997 6%
1998 through 2002 10%
2003 through 2005 20%
2006 28%
2007 and thereafter 20% 28%
2008 4%
2009 3%
2010 2%
2011 1%
If initial licensing fees are not received in 2007 from licensees
authorized to conduct slot machine gambling games at racetracks,
the homestead credit percentage for 2007 shall be twenty percent
(20%) instead of twenty-eight percent (28%). No homestead
credits under this chapter are payable after 2011. However, in the
case of property taxes first due and payable before January 1,
2008, the property tax replacement fund board established under
IC 6-1.1-21-10 shall increase the percentage of the credit provided in
the schedule for any year if the budget agency determines that an
increase is necessary to provide the minimum tax relief authorized
under IC 6-1.1-21-2.5. If the board increases the percentage of the
credit provided in the schedule for any year, the percentage of the
credit for the immediately following year is the percentage provided in
the schedule for that particular year, unless as provided in this
subsection the board must increase the percentage of the credit
provided in the schedule for that particular year. However, the
percentage credit allowed in a particular county for a particular year
shall be increased if on January 1 of a year an ordinance adopted by a
county income tax council was in effect in the county which increased
the homestead credit. The amount of the increase equals the amount
designated in the ordinance.
(e) Before October 1 of each year, the assessor shall furnish to the
county auditor the amount of the assessed valuation of each homestead
for which a homestead credit has been properly filed under this chapter.
(f) The county auditor shall apply the credit equally to each
installment of taxes that the individual pays for the property.
assessments, penalties, or interest, but does include any special charges
which a county treasurer combines with all other taxes in the
preparation and delivery of the tax statements required under
IC 6-1.1-22-8(a).
(c) "Department" means the department of state revenue.
(d) "Auditor's abstract" means the annual report prepared by each
county auditor which under IC 6-1.1-22-5 is to be filed on or before
March 1 of each year with the auditor of state.
(e) "Mobile home assessments" means the assessments of mobile
homes made under IC 6-1.1-7.
(f) "Postabstract adjustments" means adjustments in taxes made
subsequent to the filing of an auditor's abstract which change
assessments therein or add assessments of omitted property affecting
taxes for such assessment year.
(g) "Total county tax levy" means the sum of:
(1) the remainder of:
(A) the aggregate levy of all taxes for all taxing units in a
county which are to be paid in the county for a stated
assessment year as reflected by the auditor's abstract for the
assessment year, adjusted, however, for any postabstract
adjustments which change the amount of the aggregate levy;
minus
(B) the sum of any increases in property tax levies of taxing
units of the county that result from appeals described in:
(i) IC 6-1.1-18.5-13(4) and IC 6-1.1-18.5-13(5) filed after
December 31, 1982; plus
(ii) the sum of any increases in property tax levies of taxing
units of the county that result from any other appeals
described in IC 6-1.1-18.5-13 filed after December 31,
1983; plus
(iii) IC 6-1.1-18.6-3 (children in need of services and
delinquent children who are wards of the county) (before its
repeal); minus
(C) the total amount of property taxes imposed for the stated
assessment year by the taxing units of the county under the
authority of IC 12-1-11.5 (repealed), IC 12-2-4.5 (repealed),
IC 12-19-5, or IC 12-20-24; minus
(D) the total amount of property taxes to be paid during the
stated assessment year that will be used to pay for interest or
principal due on debt that:
(i) is entered into after December 31, 1983;
(ii) is not debt that is issued under IC 5-1-5 to refund debt
incurred before January 1, 1984; and
(iii) does not constitute debt entered into for the purpose of
building, repairing, or altering school buildings for which
the requirements of IC 20-5-52 (repealed) were satisfied
prior to January 1, 1984; minus
(E) the amount of property taxes imposed in the county for the
stated assessment year under the authority of IC 21-2-6
(repealed) or any citation listed in IC 6-1.1-18.5-9.8 for a
cumulative building fund whose property tax rate was initially
established or reestablished for a stated assessment year that
succeeds the 1983 stated assessment year; minus
(F) the remainder of:
(i) the total property taxes imposed in the county for the
stated assessment year under authority of IC 21-2-6
(repealed) or any citation listed in IC 6-1.1-18.5-9.8 for a
cumulative building fund whose property tax rate was not
initially established or reestablished for a stated assessment
year that succeeds the 1983 stated assessment year; minus
(ii) the total property taxes imposed in the county for the
1984 stated assessment year under the authority of IC 21-2-6
(repealed) or any citation listed in IC 6-1.1-18.5-9.8 for a
cumulative building fund whose property tax rate was not
initially established or reestablished for a stated assessment
year that succeeds the 1983 stated assessment year; minus
(G) the amount of property taxes imposed in the county for the
stated assessment year under:
(i) IC 21-2-15 (before its repeal) or IC 20-46-6 for a capital
projects fund; plus
(ii) IC 6-1.1-19-10 (before its repeal) or IC 20-46-3 for a
racial balance fund; plus
(iii) IC 36-12-12 for a library capital projects fund; plus
(iv) IC 36-10-13-7 for an art association fund; plus
(v) IC 21-2-17 (before its repeal) or IC 20-46-2 for a special
education preschool fund; plus
(vi) IC 21-2-11.6 (before its repeal) or IC 20-46-1 for a
referendum tax levy fund; plus
(vii) an appeal filed under IC 6-1.1-19-5.1 (before its repeal)
or IC 20-45-6-8 for an increase in a school corporation's
maximum permissible general fund tuition support levy for
certain transfer tuition costs; plus
(viii) an appeal filed under IC 6-1.1-19-5.4 (before its
repeal) or IC 20-46-4-10 for an increase in a school
corporation's maximum permissible general transportation
fund levy for transportation operating costs; minus
(H) the amount of property taxes imposed by a school
corporation that is attributable to the passage, after 1983, of a
referendum for an excessive tax levy under IC 6-1.1-19
IC 6-1.1-19-4.5 (before its repeal), including any increases in
these property taxes that are attributable to the adjustment set
forth in IC 6-1.1-19-1.5 (before its repeal), IC 20-45-3, or any
other law; minus
(I) for each township in the county, the lesser of:
(i) the sum of the amount determined in IC 6-1.1-18.5-19(a)
STEP THREE (as effective January 1, 1990) or
IC 6-1.1-18.5-19(b) STEP THREE (as effective January 1,
1990), whichever is applicable, plus the part, if any, of the
township's ad valorem property tax levy for calendar year
1989 that represents increases in that levy that resulted from
an appeal described in IC 6-1.1-18.5-13(4) (as effective
before January 1, 1989), filed after December 31, 1982; or
(ii) the amount of property taxes imposed in the township for
the stated assessment year under the authority of
IC 36-8-13-4; minus
(J) for each participating unit in a fire protection territory
established under IC 36-8-19-1, the amount of property taxes
levied by each participating unit under IC 36-8-19-8 and
IC 36-8-19-8.5 less the maximum levy limit for each of the
participating units that would have otherwise been available
for fire protection services under IC 6-1.1-18.5-3 and
IC 6-1.1-18.5-19 for that same year; minus
(K) for each county, the sum of:
(i) the amount of property taxes imposed in the county for
the repayment of loans under IC 12-19-5-6 (repealed) that is
included in the amount determined under IC 12-19-7-4(a)
STEP SEVEN (as effective January 1, 1995) for property
taxes payable in 1995, or for property taxes payable in each
year after 1995, the amount determined under
IC 12-19-7-4(b) (as effective before March 16, 2004) and
IC 12-19-7-4 (as effective after March 15, 2004); and
(ii) the amount of property taxes imposed in the county
attributable to appeals granted under IC 6-1.1-18.6-3 (before
its repeal) that is included in the amount determined under
IC 12-19-7-4(a) STEP SEVEN (as effective January 1,
1995) for property taxes payable in 1995, or the amount
determined under IC 12-19-7-4(b) (as effective before
March 16, 2004) and IC 12-19-7-4 (as effective after March
15, 2004) for property taxes payable in each year after 1995;
plus
(2) all taxes to be paid in the county in respect to mobile home
assessments currently assessed for the year in which the taxes
stated in the abstract are to be paid; plus
(3) the amounts, if any, of county adjusted gross income taxes that
were applied by the taxing units in the county as property tax
replacement credits to reduce the individual levies of the taxing
units for the assessment year, as provided in IC 6-3.5-1.1; plus
(4) the amounts, if any, by which the maximum permissible ad
valorem property tax levies of the taxing units of the county were
reduced under IC 6-1.1-18.5-3(b) STEP EIGHT for the stated
assessment year; plus
(5) the difference between:
(A) the amount determined in IC 6-1.1-18.5-3(e) STEP FOUR;
minus
(B) the amount the civil taxing units' levies were increased
because of the reduction in the civil taxing units' base year
certified shares under IC 6-1.1-18.5-3(e).
(h) "December settlement sheet" means the certificate of settlement
filed by the county auditor with the auditor of state, as required under
IC 6-1.1-27-3.
(i) "Tax duplicate" means the roll of property taxes which that each
county auditor is required to prepare on or before March 1 of each year
under IC 6-1.1-22-3.
(j) "Eligible property tax replacement amount" is, except as
otherwise provided by law, equal to the sum of the following for
property taxes first due and payable before January 1, 2008:
(1) Sixty percent (60%) of the total county tax levy imposed by
each school corporation in a county for its general fund for a
stated assessment year.
(2) Twenty percent (20%) of the total county tax levy (less sixty
percent (60%) of the levy for the general fund of a school
corporation that is part of the total county tax levy) imposed in a
county on real property for a stated assessment year.
(3) Twenty percent (20%) of the total county tax levy (less sixty
percent (60%) of the levy for the general fund of a school
corporation that is part of the total county tax levy) imposed in a
county on tangible personal property, excluding business personal
property, for an assessment year.
distribution from the state general fund if the district has imposed
the maximum tax levy permissible under section 12(d) of this
chapter.
(b) The maximum amount of a distribution under this section is
the amount determined by subtracting the amount of the tax levied
under section 12(d) of this chapter from the tax increment
replacement amount determined under section 11(b) of this
chapter.
(c) An appeal under this section must be filed before September
20 of a year.
Sec. 14. (a) The department of local government finance shall
approve an appeal filed under section 13 of this chapter if the
department determines that:
(1) the governing body's estimate of the tax replacement
amount under section 11 of this chapter is reasonable;
(2) a tax levy in excess of the amount determined under
section 12(d) of this chapter would:
(A) create a significant financial hardship on taxpayers
residing in the district in which the governing body
exercises jurisdiction;
(B) significantly reduce the benefits of the reduction and
eventual elimination of tuition support levies for each
school corporation; or
(C) have a disproportionate impact on small businesses or
low income families or individuals; and
(3) the governing body has made reasonable efforts to limit its
use of the special fund for the allocation area to
appropriations for payments of:
(A) the principal and interest on loans or bonds;
(B) lease rentals on leases; and
(C) amounts due on other contractual obligations.
(b) In a year in which a general reassessment does not become
effective, the department of local government finance shall make
a final determination on an appeal filed under this section by
December 1 of the year. In a year in which a general reassessment
becomes effective, the department may extend the deadline under
this subsection by giving written notice to the appellant before the
deadline.
(c) If the department of local government finance approves an
appeal filed under section 13 of this chapter, the department shall
order a distribution from the state general fund.
(d) If the department of local government finance denies an
appeal filed under section 13 of this chapter, or does not grant the
maximum permissible distribution under section 13(b) of this
chapter, the legislative body of the unit that established the district
may increase the levy imposed under this chapter to an amount
that, when combined with any distribution received under this
chapter, does not exceed the tax increment replacement amount.
Sec. 15. (a) A tax levied under this chapter shall be certified by
the department of local government finance to the auditor of the
county in which the district is located and shall be:
(1) estimated and entered upon the tax duplicates by the
county auditor; and
(2) collected and enforced by the county treasurer;
in the same manner as state and county taxes are estimated,
entered, collected, and enforced.
(b) As the tax is collected by the county treasurer, it shall be
transferred to the governing body and accumulated and kept in the
special fund for the allocation area.
(c) A tax levied under this chapter:
(1) is exempt from property tax levy limitations; and
(2) is not subject to IC 6-1.1-20.
(d) Notwithstanding any other provision of this chapter or
IC 6-1.1-20.6, a governing body may file with the county auditor a
certified statement providing that for purposes of computing and
applying a credit under IC 6-1.1-20.6 for a particular calendar
year, a taxpayer's property tax liability does not include the
liability for a tax levied under this chapter. The department of
local government finance shall adopt the form of the certified
statement that a governing body may file under this subsection.
The department of local government finance shall establish
procedures governing the filing of a certified statement under this
subsection. If a governing body files a certified statement under
this subsection, then for purposes of computing and applying a
credit under IC 6-1.1-20.6 for the specified calendar year, a
taxpayer's property tax liability does not include the liability for a
tax levied under this chapter.
(e) A tax levied under this chapter and the use of revenues from
a tax levied under this chapter by a governing body do not create
a constitutional or statutory debt, pledge, or obligation of the
governing body, the district, or any unit.
board of tax adjustment composed of seven (7) members. The members
of the county board of tax adjustment shall be selected as follows:
(1) The county fiscal body shall appoint a member of the body to
serve as a member of the county board of tax adjustment.
(2) Either the executive of the largest city in the county or a
public official of any city in the county appointed by that
executive shall serve as a member of the board. However, if there
is no incorporated city in the county, the fiscal body of the largest
incorporated town of the county shall appoint a member of the
body to serve as a member of the county board of tax adjustment.
(3) The governing body of the school corporation, located entirely
or partially within the county, which has the greatest taxable
valuation of any school corporation of the county shall appoint a
member of the governing body to serve as a member of the county
board of tax adjustment.
(4) The remaining four (4) members of the county board of tax
adjustment must be residents of the county and freeholders and
shall be appointed by the board of commissioners of the county.
(b) This section expires December 31, 2008.
to a county board of tax and capital projects review under section
1.5 of this chapter shall make the required appointment or
appointments of members who will represent the fiscal body on the
county board of tax and capital projects review. The appointments
take effect January 1 of the following odd-numbered year and
continue in effect until December 31 of the following
even-numbered year. If a member is to be appointed by one (1)
fiscal body, the appointment must be made by a majority vote of
the fiscal body in official session. If a member is to be appointed by
more than one (1) fiscal body, the appointment must be made by a
majority vote of the total members of the fiscal bodies taken in
joint session. If:
(1) a fiscal body fails; or
(2) the fiscal bodies, in the case of a joint appointment, fail;
to make a required appointment of a member by December 31 of
an even-numbered year, the county fiscal body shall make the
appointment from the appropriate fiscal body.
(d) At the general election in 2008 and every four (4) years
thereafter, the voters of each county shall under IC 3-10-2-13 elect
two (2) individuals who are residents of the county as members of
the county board of tax and capital projects review. The term of
office of a member elected under this subsection begins January 1
of the year following the member's election and ends December 31
of the fourth year following the member's election.
(e) A member elected under this section may not be, or have
been during the year preceding the member's appointment or
election, an officer or employee of a political subdivision.
December 31, 2008.
an examiner of the state board of accounts to assist the county board
with its duties. If the board desires to employ an examiner, it shall
adopt a resolution which states the number of days that the examiner
is to serve, when the county board files a copy of the resolution with
the chief examiner of the state board of accounts, the state board of
accounts shall assign an examiner to the county board of tax adjustment
(before January 1, 2009) or the county board of tax and capital
projects review (after December 31, 2008) for the number of days
stated in the resolution. When an examiner of the state board of
accounts is employed by a county board of tax adjustment (before
January 1, 2009) or a county board of tax and capital projects
review (after December 31, 2008) under this section, the county shall
pay the expenses related to his the examiner's services in the same
manner that expenses are to be paid under IC 1971, 5-11-4-3.
described in subdivision (1) or (2) has been adopted in a county and
has not been rescinded, the county board of tax and capital
projects review may not review tax rates, tax levies, and budgets
under IC 6-1.1-17-3, IC 6-1.1-17-5, IC 6-1.1-17-5.6, IC 6-1.1-17-6,
IC 6-1.1-17-7, IC 6-1.1-17-9, IC 6-1.1-17-10, IC 6-1.1-17-11,
IC 6-1.1-17-12, IC 6-1.1-17-14, IC 6-1.1-17-15, IC 12-19-7,
IC 12-19-7.5, IC 20-45, IC 20-46, IC 36-8-6, IC 36-8-7, IC 36-8-7.5,
IC 36-8-11, IC 36-9-3, IC 36-9-4, or IC 36-9-13.
(b) (c) The time requirements set forth in IC 6-1.1-17 govern all
filings and notices.
(c) (d) If an ordinance described in subsection (a) or (b) is
adopted and has not been rescinded, a tax rate, tax levy, or budget
that otherwise would be reviewed by the county board of tax
adjustment (before January 1, 2009) or the county board of tax and
capital projects review (after December 31, 2008) is considered and
must be treated for all purposes as if the county board of tax adjustment
approved the tax rate, tax levy, or budget. This includes the notice of
tax rates that is required under IC 6-1.1-17-12.
(e) This section does not prohibit a county board of tax and
capital projects review from reviewing tax rates, tax levies, and
budgets for informational purposes as necessary to carry out its
duties under IC 6-1.1-29.5.
buildings, structures, or infrastructure;
(or any combination of subdivisions (1) through (6)) by a political
subdivision.
Sec. 2. As used in this chapter, "fiscal body" has the meaning set
forth in IC 36-1-2-6.
Sec. 3. As used in this chapter, "political subdivision" has the
meaning set forth in IC 36-1-2-13.
Sec. 4. As used in this chapter, "review board" refers to the
county board of tax and capital projects review established in a
county under IC 6-1.1-29.
Sec. 5. (a) The fiscal body of each political subdivision shall do
the following:
(1) After January 1 and before October 1 of 2009 and every
two (2) years thereafter:
(A) hold a public hearing on a proposed capital projects
plan for the political subdivision; and
(B) adopt a capital projects plan by ordinance or
resolution.
(2) Submit a copy of the capital projects plan and the
ordinance or resolution to the review board not later than
fifteen (15) days following the adoption of the capital projects
plan.
(b) If a political subdivision contains territory in more than one
(1) county, the fiscal body shall transmit a copy of the capital
projects plan and the ordinance or resolution to the review board
of each county in which the political subdivision contains territory.
Sec. 6. (a) The department of local government finance shall by
rule prescribe the format of a capital projects plan. A capital
projects plan must apply to at least the five (5) years immediately
following the year the capital projects plan is adopted and must
include the following components for each year covered by the
capital projects plan:
(1) A general description of the political subdivision.
(2) A description of facilities owned by the political
subdivision and the use of the facilities.
(3) The location and general description of each proposed
capital project and the intended use of each proposed capital
project.
(4) The estimated total cost of each proposed capital project.
(5) Identification of all sources of funds expected to be used
for each proposed capital project.
(6) The planning, development, and construction schedule of
each proposed capital project.
(7) Any other element required by the department of local
government finance.
(b) The department of local government finance shall by rule
establish a procedure for amendment of a capital projects plan in
the case of an emergency.
Sec. 7. Before a public hearing on a proposed capital projects
plan is held by the fiscal body of a political subdivision under
section 5(a)(1) of this chapter, the fiscal body shall publish a
summary of the proposed capital projects plan and a notice of the
hearing in accordance with IC 5-3-1-2(b).
Sec. 8. When the fiscal body of a political subdivision holds a
public hearing on a proposed capital projects plan under section
5(a)(1) of this chapter, the fiscal body shall allow the public the
opportunity to testify concerning the proposed capital projects
plan. However, the fiscal body may limit testimony at the public
hearing to a reasonable time stated at the opening of the public
hearing.
Sec. 9. (a) The review board shall hold a public hearing on a
proposed capital projects plan submitted by a political subdivision.
The review board shall allow the public the opportunity to testify
concerning the proposed capital projects plan.
(b) The review board shall provide the fiscal body of a political
subdivision with a written report concerning the review board's
findings and recommendations concerning the fiscal body's capital
projects plan not more than sixty (60) business days after the
review board's receipt of the capital projects plan.
(c) If the fiscal body of a political subdivision receives a written
report under subsection (b) that makes a recommendation against
an element included in the political subdivision's capital projects
plan, the political subdivision may retain that element in the capital
projects plan only if the fiscal body at a public meeting addresses
the review board's concerns and enters into the record of the
public meeting an explanation of why that element should be
retained in the capital projects plan.
Sec. 10. (a) The fiscal body of a political subdivision that intends
to construct a capital project subject to this chapter:
(1) must submit the plan of the capital project to the review
board in the manner provided by this chapter; and
(2) except as provided in section 14 of this chapter, may not:
(A) begin construction of the capital project;
(B) enter into contracts for the construction of the capital
project;
(C) procure supplies necessary for construction of the
capital project;
(D) issue bonds, notes, or warrants, or otherwise borrow
money for the capital project;
(E) enter into a lease or other agreement that would
provide debt service for bonds or other obligations issued
by the political subdivision or another entity to finance the
capital project; or
(F) approve any of the actions described in clauses (A)
through (E) by another entity;
unless the review board approves the capital project under
section 13 of this chapter.
(b) If a political subdivision contains territory in more than one
(1) county, the fiscal body of the political subdivision must submit
the proposed capital project to the review board of each of those
counties.
(c) The fiscal body of a political subdivision may not artificially
divide a capital project into multiple capital projects in order to
avoid the requirements of this section.
Sec. 11. (a) Before the fiscal body of a political subdivision may
submit a capital project described in section 10 of this chapter to
the review board, the fiscal body shall:
(1) hold a public hearing on the proposed capital project; and
(2) prepare a feasibility study that supports the scope and cost
of the proposed capital project.
Before a public hearing on a proposed capital project is held by the
fiscal body of a political subdivision under this section, the fiscal
body shall publish a description of the proposed capital project and
a notice of the hearing in accordance with IC 5-3-1-2(b).
(b) The fiscal body of a political subdivision may consider
multiple capital projects at a public hearing held under this
section.
(c) When the fiscal body of a political subdivision holds a public
hearing under this section, the fiscal body shall allow any person
an opportunity to be heard in the presence of others who are
present to testify with respect to the proposed capital project.
However, the fiscal body may limit testimony at a public hearing
to a reasonable time stated at the opening of the public hearing.
(d) After holding a public hearing under this section and
considering all information submitted by persons testifying at the
hearing, the fiscal body of a political subdivision may adopt an
ordinance or resolution requesting approval of the proposed
capital project by the review board. The fiscal body shall
immediately transmit a copy of the ordinance or resolution to the
review board. If the political subdivision contains territory in more
than one (1) county, the fiscal body shall transmit a copy of the
ordinance or resolution to the review board of each of those
counties.
Sec. 12. (a) Before taking action on a request for approval of a
proposed capital project described in section 10 of this chapter, a
review board must conduct a public hearing on the proposed
project. If a public hearing is scheduled under this section, the
review board shall publish a description of the proposed capital
project and a notice of the hearing in accordance with
IC 5-3-1-2(b).
(b) The review board may consider multiple capital projects at
a public hearing held under this section.
(c) The review board may require the fiscal body of a political
subdivision that submits a request for approval of a capital project
to provide plans, specifications, cost estimates, estimated impacts
on tax rates, and other relevant information concerning that
project.
(d) When a review board holds a public hearing under this
section, the review board shall allow the public an opportunity to
testify concerning the proposed capital project. However, the
review board may limit testimony at a public hearing to a
reasonable time stated at the opening of the public hearing.
Sec. 13. (a) After considering all information submitted at the
hearing under section 12 of this chapter by the fiscal body of the
political subdivision and by persons testifying at the hearing, the
review board may approve, disapprove, modify then approve, or
delay the implementation of a proposed capital project. The review
board may consider the following factors when reviewing a
proposed capital project:
(1) The age, condition, and adequacy of existing facilities.
(2) The cost per square foot of the proposed capital project.
(3) The relative priority the proposed capital project should
have among other capital projects proposed within the
county.
(4) The estimated impact the proposed capital project would
have on tax rates.
(5) Any other factors considered pertinent by the review
board.
discovery of undervaluation or omission with respect to a parcel or
personal property return before all appeals of the assessment of the
parcel or the assessment under the return have been finalized. The
contract may require the contractor to:
(1) examine and verify the accuracy of personal property returns
filed by taxpayers with a township assessor of a township in the
county or the county assessor; and
(2) compare a return with the books and records of the taxpayer
and with personal property owned, held, possessed, controlled, or
occupied by the taxpayer.
(b) The actions of a contractor under subsection (a)(1) or (a)(2)
must be limited in scope to the three (3) assessment years ending
before January 1 of the calendar year in which the taxpayer
receives notice of the contractor's actions. Notice provided under
this section must be in writing and must list each year for which
returns and other records may be reviewed under subsection (a).
For purposes of this subsection, notice is considered to have been
received by the taxpayer as of the date of the notice.
(c) IC 6-1.1-9-3 does not apply to a contractor's actions under
subsection (a).
(b) (d) This subsection applies if funds are not appropriated for
payment of services performed under a contract described in subsection
(a). The county auditor may create a special nonreverting fund in which
the county treasurer shall deposit the amount of taxes, including
penalties and interest, that result from additional assessments on
undervalued or omitted property collected from all taxing jurisdictions
in the county after deducting the amount of any property tax credits that
reduce the owner's property tax liability for the undervalued or omitted
property. The fund remains in existence during the term of the contract.
Distributions shall be made from the fund without appropriation only
for the following purposes and in the following order:
(1) First, for all contract fees and other costs related to the
contract.
(2) Second, for deposit in the county's reassessment fund. The
amount deposited in the county's reassessment fund under
this subdivision may not exceed twenty percent (20%) of the
remaining money collected as a result of a contract entered
into under this section.
(2) (e) After the payments required by subdivision (1) subsection
(d) have been made and the contract has expired, the county auditor
shall distribute all money remaining in the fund to the appropriate
taxing units in the county using the property tax rates of each taxing
unit in effect at the time of the distribution.
(f) If the money in the fund established under subsection (b) is
insufficient to pay the fees and costs related to a contract described
in subsection (a), the county may pay the remaining fees and costs
from the county's reassessment fund.
(c) (g) A board of county commissioners, a county assessor, or an
elected township assessor may not contract for services under
subsection (a) on a percentage basis.
(h) The department shall adopt rules under IC 4-22-2 to govern
the certification of persons who wish to obtain a contract under
this section.
distribution for the previous calendar year.
(b) Except as provided in this subsection, an appropriation from
property taxes to repay interest and principal of a debt obligation is not
deducted from the allocation amount for a civil taxing unit or school
corporation if:
(1) the debt obligation was issued; and
(2) the proceeds appropriated from property taxes;
to refund or otherwise refinance a debt obligation or a lease issued
before July 1, 2005. However, an appropriation from property taxes
related to a debt obligation issued after June 30, 2005, is deducted if
the debt extends payments on a debt or lease beyond the time in which
the debt or lease would have been payable if the debt or lease had not
been refinanced or increases the total amount that must be paid on a
debt or lease in excess of the amount that would have been paid if the
debt or lease had not been refinanced. The amount of the deduction is
the annual amount for each year of the extension period or the annual
amount of the increase over the amount that would have been paid.
(c) Except as provided in this subsection, an appropriation from
property taxes to make payments on a lease is not deducted from the
allocation amount for a civil taxing unit or school corporation if:
(1) the lease was issued; and
(2) the proceeds were appropriated from property taxes;
to refinance a debt obligation or lease issued before July 1, 2005.
However, an appropriation from property taxes related to a lease
entered into after June 30, 2005, is deducted if the lease extends
payments on a debt or lease beyond the time in which the debt or lease
would have been payable if the debt or lease had not been refinanced
or increases the total amount that must be paid on a debt or lease in
excess of the amount that would have been paid if the debt or lease had
not been refinanced. The amount of the deduction is the annual amount
for each year of the extension period or the annual amount of the
increase over the amount that would have been paid.
(d) Notwithstanding any other provision of this section, the
department of local government finance shall for each year after
2007 do the following:
(1) Adjust the allocation amount of each school corporation to
ensure that the school corporation's allocation amount is not
reduced (as a percentage of the part of certified distributions
that constitute property tax replacement credits) because of
the reduction or elimination of the school corporation's
tuition support levy under IC 20-45-3-11(b) through
IC 20-45-3-11(c).
(2) Adjust the allocation amount of each county to ensure that
the county's allocation amount is not reduced (as a percentage
of the part of certified distributions that constitute property
tax replacement credits) because of the reduction or
elimination of the county family and children's fund property
tax levy under IC 12-19-7-4(b) through IC 12-19-7-4(f).
completed; and
(2) all bonds issued or leases entered into to finance the
construction, acquisition, improvement, renovation, and
equipping described in subsection (b) are fully paid;
the county council shall, subject to subsection (d), establish a tax rate
under this section by ordinance such that the revenue from the tax does
not exceed the costs of operating and maintaining the jail facilities
described in subsection (b)(1)(A). The tax rate may not be imposed at
a rate greater than is necessary to carry out the purposes described in
subsections (b) and (c), as applicable.
(f) An ordinance adopted under this section before June 1, 2006, or
April August 1 in a subsequent year applies to the imposition of county
income taxes after June September 30 in that year. An ordinance
adopted under this section after May 31, 2006, and March July 31 of
a subsequent year initially applies to the imposition of county option
income taxes after June September 30 of the immediately following
year.
(g) The tax imposed under this section may be imposed only until
the latest of the following:
(1) The date on which the financing, construction, acquisition,
improvement, renovation, and equipping described in subsection
(b) are completed.
(2) The date on which the last of any bonds issued or leases
entered into to finance the construction, acquisition,
improvement, renovation, and equipping described in subsection
(b) are fully paid.
(3) The date on which an ordinance adopted under subsection (c)
is rescinded.
(h) The term of the bonds issued (including any refunding bonds) or
a lease entered into under subsection (b)(2) may not exceed twenty (20)
years.
(i) The county treasurer shall establish a criminal justice facilities
revenue fund to be used only for purposes described in this section.
County adjusted gross income tax revenues derived from the tax rate
imposed under this section shall be deposited in the criminal justice
facilities revenue fund before making a certified distribution under
section 11 of this chapter.
(j) County adjusted gross income tax revenues derived from the tax
rate imposed under this section:
(1) may be used only for the purposes described in this section;
(2) may not be considered by the department of local government
finance in determining the county's maximum permissible
property tax levy limit under IC 6-1.1-18.5; and
(3) may be pledged to the repayment of bonds issued or leases
entered into for any or all the purposes described in subsection
(b).
(k) Notwithstanding any other law, money remaining in the criminal
justice facilities revenue fund established under subsection (i) after the
tax imposed by this section is terminated under subsection (f)
subsection (g) shall be transferred to the county highway fund to be
used for construction, resurfacing, restoration, and rehabilitation of
county highways, roads, and bridges.
authority that is authorized by statute to pledge the county adjusted
gross income tax has pledged the county adjusted gross income tax for
any purpose permitted by IC 5-1-14 or any other statute.
(c) Any ordinance adopted under this section takes effect July
October 1 of the year the ordinance is adopted.
(d) The auditor of a county shall record all votes taken on
ordinances presented for a vote under the authority of this section and
immediately send a certified copy of the results to the department by
certified mail.
(e) Notwithstanding IC 6-3.5-7, and except as provided in
subsection (f), a county council that decreases the county adjusted
gross income tax rate in a year may not in the same year adopt or
increase the county economic development income tax under
IC 6-3.5-7.
(f) This subsection applies only to a county having a population of
more than one hundred ten thousand (110,000) but less than one
hundred fifteen thousand (115,000). The county council may adopt or
increase the county economic development income tax rate under
IC 6-3.5-7 in the same year that the county council decreases the
county adjusted gross income tax rate if the county economic
development income tax rate plus the county adjusted gross income tax
rate in effect after the county council decreases the county adjusted
gross income tax rate is less than the county adjusted gross income tax
rate in effect before the adoption of an ordinance under this section
decreasing the rate of the county adjusted gross income tax.
reduced to one percent (1%). If the county council imposes the county
adjusted gross income tax at a rate of one and three-tenths percent
(1.3%), the county council may decrease the rate or rescind the tax in
the manner provided under this chapter.
(d) If a county imposes the county adjusted gross income tax at a
rate of one and three-tenths percent (1.3%) under this section, the
revenue derived from a tax rate of three-tenths percent (0.3%) on
adjusted gross income:
(1) shall be paid to the county treasurer;
(2) may be used only to pay the costs of operating and
maintaining a jail and justice center; and
(3) may not be considered by the department of local government
finance under any provision of IC 6-1.1-18.5, including the
determination of the county's maximum permissible property tax
levy.
(e) Notwithstanding section 3 of this chapter, the county fiscal body
may adopt an ordinance under this section before June 1.
any overpayments are offset over several years rather than in one (1)
lump sum.
(d) The department, after reviewing the recommendation of 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 department, after reviewing the
recommendation of the budget agency, may reduce the amount of the
certified distribution over several calendar years so that any adjustment
under this subsection is offset over several years rather than in one (1)
lump sum.
(e) The department, after reviewing the recommendation of the
budget agency, shall adjust the certified distribution of a county to
provide the county with the distribution required under section 10(b)
of this chapter.
(f) This subsection applies to a county that:
(1) initially imposes the county adjusted gross income tax; or
(2) increases the county adjusted income tax rate;
under this chapter in the same calendar year in which the department
makes a certification under this section. The department, after
reviewing the recommendation of 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 department 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).
(g) The department, after reviewing the recommendation of the
budget agency, shall adjust the certified distribution of a county to
provide the county with the distribution required under section 3.3 of
this chapter beginning not later than the tenth month after the month in
which additional revenue from the tax authorized under section 3.3 of
this chapter is initially collected.
(h) This subsection applies in the year in which a county initially
imposes a tax rate under section 24 of this chapter.
Notwithstanding any other provision, the department shall adjust
the part of the county's certified distribution that is attributable to
the tax rate under section 24 of this chapter to provide for a
distribution in the immediately following calendar year equal to
the result of:
(1) the sum of the amounts determined under STEP ONE
through STEP FOUR of IC 6-3.5-1.5-1(a) in the year in which
the county initially imposes a tax rate under section 24 of this
chapter; multiplied by
(2) two (2).
(a)(2), then the special taxing district, authority, board, or other entity
shall not be treated as having an attributed allocation amount of its
own. The local government tax control board (before January 1, 2009)
or the county board of tax and capital projects review (after
December 31, 2008) shall certify the attributed allocation amounts to
the appropriate county auditor. The county auditor shall then allocate
the certified shares among the civil taxing units of the auditor's county.
(d) Certified shares received by a civil taxing unit shall be treated
as additional revenue for the purpose of fixing its budget for the
calendar year during which the certified shares will be received. The
certified shares may be allocated to or appropriated for any purpose,
including property tax relief or a transfer of funds to another civil
taxing unit whose levy was attributed to the civil taxing unit in the
determination of its attributed allocation amount.
rates imposed under this chapter and does not affect the purposes
for which other tax revenue under this chapter may be used.
(e) The following apply only in the year in which a county
council first imposes a tax rate under this section.
(1) The county council shall, in the ordinance imposing the tax
rate, specify the tax rate for each of the following two (2)
years.
(2) The tax rate that must be imposed in the county from
October 1 of the year in which the tax rate is imposed through
September 30 of the following year is equal to the result of:
(A) the tax rate determined for the county under
IC 6-3.5-1.5-1(a) in the year in which the tax rate is
increased; multiplied by
(B) two (2).
(3) The tax rate that must be imposed in the county from
October 1 of the following year through September 30 of the
year after the following year is the tax rate determined for the
county under IC 6-3.5-1.5-1(b). The tax rate under this
subdivision continues in effect in later years unless the tax
rate is increased under this section.
(4) The levy limitations in IC 6-1.1-18.5-3(g),
IC 6-1.1-18.5-3(h), IC 12-19-7-4(b), IC 12-19-7.5-6(b), and
IC 12-29-2-2(c) apply to property taxes first due and payable
in the ensuing calendar year.
(f) The following apply only in a year in which a county council
increases a tax rate under this section.
(1) The county council shall, in the ordinance increasing the
tax rate, specify the tax rate for the following year.
(2) The tax rate that must be imposed in the county from
October 1 of the year in which the tax rate is increased
through September 30 of the following year is equal to the
result of:
(A) the tax rate determined for the county under
IC 6-3.5-1.5-1(a) in that year; plus
(B) the tax rate currently in effect in the county under this
section.
The tax rate under this subdivision continues in effect in later
years unless the tax rate is increased under this section.
(3) The levy limitations in IC 6-1.1-18.5-3(g),
IC 6-1.1-18.5-3(h), IC 12-19-7-4(b), IC 12-19-7.5-6(b), 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 subsection.
STEP THREE: For distribution to the county for deposit in
the county family and children's fund, 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 subsection.
STEP FOUR: For distribution to the county for deposit in the
county children's psychiatric residential treatment services
fund, 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 subsection.
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 subsection.
Except as provided in subsection (m), the county treasurer shall
distribute the portion of the certified distribution that is
attributable to a tax rate under this section as specified in this
section. The county treasurer shall make the distributions under
this subsection at the same time that distributions are made to civil
taxing units under section 15 of this chapter.
(h) Notwithstanding sections 3.1 and 4 of this chapter, a county
council may not decrease or rescind a tax rate imposed under this
chapter.
(i) The tax rate under this section shall not be considered for
purposes of computing:
(1) the maximum income tax rate that may be imposed in a
county under section 2 of this chapter; or
(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).
(k) A distribution 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 excise taxes that are distributed on the basis of
property tax levies.
(l) If a county council imposes a tax rate under this section, the
portion of county adjusted gross income tax revenue dedicated to
property tax replacement credits under section 11 of this chapter
may not be decreased.
(m) In the year following the year in a which a county first
imposes a tax rate under this section, one-half (1/2) of the tax
revenue that is attributable to the tax rate under this section must
be deposited in the county stabilization fund established under
subsection (o).
(n) A pledge of county adjusted gross income taxes does not
apply to revenue attributable to a tax rate under this section.
(o) A county stabilization fund is established in each county that
imposes a tax rate under this section. The county stabilization fund
shall be administered by the county auditor. If for a year the
certified distributions attributable to a tax rate under this section
exceed the amount calculated under STEP ONE through STEP
FOUR of IC 6-3.5-1.5-1 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 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.
(p) 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.
county and each municipality and township 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,
municipality, or township under this subsection must be deposited
into a separate account or fund and may be appropriated by the
county, municipality, or township only for public safety purposes.
(g) The department of local government finance may not
require a county receiving tax revenue under this section to reduce
the county's property tax levy for a particular year on account of
the county's receipt of the tax revenue.
(h) The tax rate under this section and the tax revenue
attributable to the tax rate under this section shall not be
considered for purposes of computing:
(1) the maximum income tax rate that may be imposed in a
county under section 2 of this chapter;
(2) the maximum permissible property tax levy under STEP
EIGHT of IC 6-1.1-18.5-3(b); or
(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).
(i) The tax rate under this section may be imposed or rescinded
at the same time and in the same manner that the county may
impose or increase a tax rate under section 24 of this chapter.
(j) The department of local government finance and the
department of state revenue may take any actions necessary to
carry out the purposes of this section.
a certified copy of the ordinance to the department and the
department of local government finance by certified mail.
(e) A tax rate under this section may be imposed, increased,
decreased, or rescinded by a county council at the same time and
in the same manner that the county council may impose or increase
a tax rate under section 24 of this chapter.
(f) Tax revenue attributable to a tax rate under this section may
be used for any combination of the following purposes, as specified
by ordinance of the county council:
(1) The tax revenue may be used to provide local property tax
replacement credits at a uniform rate to all taxpayers in the
county. Any tax revenue that is attributable to the tax rate
under this section and that is used to provide local property
tax replacement credits shall be distributed to civil taxing
units and school corporations in the county in the same
manner that certified distributions are allocated as property
tax replacement credits under section 12 of this chapter. The
department of local government finance shall provide each
county auditor with the amount of property tax replacement
credits that each civil taxing unit and school corporation in
the auditor's county is entitled to receive under this section.
The county auditor shall then certify to each civil taxing unit
and school corporation the amount of property tax
replacement credits the civil taxing unit or school corporation
is entitled to receive under this section during that calendar
year.
(2) The tax revenue may be used to uniformly increase the
homestead credit percentage in the county. The additional
homestead credits shall be treated for all purposes as
property tax levies. The additional homestead credits do not
reduce the basis for determining the state homestead credit
under IC 6-1.1-20.9. The additional homestead credits shall be
applied to the net property taxes due on the homestead after
the application of all other assessed value deductions or
property tax deductions and credits that apply to the amount
owed under IC 6-1.1. The department of local government
finance shall determine the additional homestead credit
percentage for a particular year based on the amount of tax
revenue that will be used under this subdivision to provide
additional homestead credits in that year.
(g) The tax rate under this section and the tax revenue
attributable to the tax rate under this section shall not be
considered for purposes of computing:
(1) the maximum income tax rate that may be imposed in a
county under section 2 of this chapter;
(2) the maximum permissible property tax levy under STEP
EIGHT of IC 6-1.1-18.5-3(b); or
(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).
(h) 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.
imposed by the county under IC 12-19-7-4 for the ensuing
calendar year (before any adjustment under
IC 12-19-7-4(b) for the ensuing calendar year); minus
(2) the county's family and children property tax levy
imposed by the county under IC 12-19-7-4 for the current
calendar year.
STEP THREE: Determine the greater of zero (0) or the result
of:
(1) the department of local government finance's estimate
of the children's psychiatric residential treatment services
property tax levy that will be imposed by the county under
IC 12-19-7.5-6 for the ensuing calendar year (before any
adjustment under IC 12-19-7.5-6(b) for the ensuing
calendar year); minus
(2) the children's psychiatric residential treatment services
property tax imposed by the county under IC 12-19-7.5-6
for the current calendar year.
STEP FOUR: Determine the greater of zero (0) or the result
of:
(1) the department of local government finance's estimate
of the county's maximum community mental health centers
property tax levy under IC 12-29-2-2 for the ensuing
calendar year (before any adjustment under
IC 12-29-2-2(c) for the ensuing calendar year); minus
(2) the county's maximum community mental health
centers property tax levy under IC 12-29-2-2 for the
current calendar year.
(b) In the case of a county that wishes to impose a tax rate under
IC 6-3.5-1.1-24 or IC 6-3.5-6-30 (as applicable) for the first time,
the department of local government finance and the department of
state revenue shall jointly estimate the amount that will be
calculated under subsection (a) in the second year after the tax rate
is first imposed. The department of local government finance and
the department of state revenue shall calculate the tax rate under
IC 6-3.5-1.1-24 or IC 6-3.5-6-30 (as applicable) that must be
imposed in the county in the second year after the tax rate is first
imposed to raise income tax revenue equal to the estimate under
this subsection.
(c) The department and the department of local government
finance shall make the calculations under subsections (a) and (b)
based on the best information available at the time the calculation
is made.
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.
(d) Notwithstanding any other provision of this section, the
department of local government finance shall for each year after
2007 certify to the county auditor an adjustment to the allocation
amount of a county to ensure that the county's allocation is not
reduced (as a percentage of the total allocation amounts of all civil
taxing units in the county) because of the reduction or elimination
of the county family and children's fund property tax levy under
IC 12-19-7-4(b) through IC 12-19-7-4(f).
county option income tax on the adjusted gross income of county
taxpayers of its county effective July 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 January 1 March 31 but before April 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 July 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 July 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.
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.
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 January 1
March 31 but before June 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.
immediately following calendar year and in each calendar year
thereafter. The department 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).
(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 department 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) two (2).
(f) (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.
(g) (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.
(h) (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.
units of a county; and
(7) make the distributions permitted under section sections 27, 28,
and 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 36-7-15.1-17.5,
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, or 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.
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 August 1 in a year applies to the imposition of county
income taxes after June September 30 in that year. An ordinance
adopted under this section after March July 31 of a year initially
applies to the imposition of county option income taxes after June
September 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 department, after reviewing the recommendation of 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 department
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.
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 April 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, and or March
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 department, after reviewing the recommendation of 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 department 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.
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.
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), IC 12-19-7.5-6(b), and
IC 12-29-2-2(c) apply to property taxes first due and payable
in 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), IC 12-19-7.5-6(b), 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 subsection.
STEP THREE: For distribution to the county for deposit in
the county family and children's fund, determine the quotient
of:
(1) the amount determined under STEP TWO of
IC 6-3.5-1.5-1(a) in the preceding year; divided by
(2) the STEP ONE amount.
STEP FOUR: For distribution to the county for deposit in the
county children's psychiatric residential treatment services
fund, determine the quotient of:
(1) the amount determined under STEP THREE of
IC 6-3.5-1.5-1(a) in the preceding year; divided by
(2) the STEP ONE amount.
STEP FIVE: For distribution to the county for community
mental health center purposes, determine the quotient of:
(1) the amount determined under STEP FOUR of
IC 6-3.5-1.5-1(a) in the preceding year; divided by
(2) the STEP ONE amount.
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 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).
(k) A distribution 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 its budget and for
determining the distribution of excise 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, one-half (1/2) of the tax
revenue that is attributable to the tax rate under this section must
be deposited in the county stabilization fund established under
subsection (o).
(n) A pledge of county 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 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 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.
(p) 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.
carry out the purposes of this section.
each county auditor with the amount of property tax
replacement credits that each civil taxing unit and school
corporation in the auditor's county is entitled to receive under
this section. The county auditor shall then certify to each civil
taxing unit and school corporation the amount of property tax
replacement credits the civil taxing unit or school corporation
is entitled to receive under this section during that calendar
year. The county auditor shall also certify these distributions
to the county treasurer. Except as provided in subsection (g),
the local property tax replacement credits shall be treated for
all purposes as property tax levies.
(2) The tax revenue may be used to uniformly increase the
homestead credit percentage in the county. The additional
homestead credits shall be treated for all purposes as
property tax levies. The additional homestead credits do not
reduce the basis for determining the state homestead credit
under IC 6-1.1-20.9. The additional homestead credits shall be
applied to the net property taxes due on the homestead after
the application of all other assessed value deductions or
property tax deductions and credits that apply to the amount
owed under IC 6-1.1. The department of local government
finance shall determine the additional homestead credit
percentage for a particular year based on the amount of tax
revenue that will be used under this subdivision to provide
additional homestead credits in that 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 of this chapter; or
(2) the maximum permissible property tax levy under STEP
EIGHT of IC 6-1.1-18.5-3(b).
(h) 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).
(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.
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
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 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 department, after reviewing the recommendation of 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
department 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.
concerning the imposition of the county option income tax.
(b) Except as provided in subsections (c), (g), (k), (p), and (r), the
county economic development income tax may be imposed at a rate of:
(1) one-tenth percent (0.1%);
(2) two-tenths percent (0.2%);
(3) twenty-five hundredths percent (0.25%);
(4) three-tenths percent (0.3%);
(5) thirty-five hundredths percent (0.35%);
(6) four-tenths percent (0.4%);
(7) forty-five hundredths percent (0.45%); or
(8) five-tenths percent (0.5%);
on the adjusted gross income of county taxpayers.
(c) Except as provided in subsection (h), (i), (j), (k), (l), (m), (n), (o),
(p), or (s), or (v), (w), or (x), the county economic development
income tax rate plus the county adjusted gross income tax rate, if any,
that are in effect on January 1 of a year may not exceed one and
twenty-five hundredths percent (1.25%). Except as provided in
subsection (g), (p), (r), (t), or (u), (w), or (x), the county economic
development tax rate plus the county option income tax rate, if any, that
are in effect on January 1 of a year may not exceed one percent (1%).
(d) To impose, increase, decrease, or rescind the county economic
development income tax, the appropriate body must, after January 1
March 31 but before April August 1 of a year, adopt an ordinance.
The ordinance to impose the tax must substantially state the following:
"The ________ County _________ imposes the county economic
development income tax on the county taxpayers of _________
County. The county economic development income tax is imposed at
a rate of _________ percent (____%) on the county taxpayers of the
county. This tax takes effect July October 1 of this year.".
(e) Any ordinance adopted under this chapter takes effect July 1 of
the year the ordinance is adopted.
(f) The auditor of a county shall record all votes taken on ordinances
presented for a vote under the authority of this chapter and shall, not
more than ten (10) days after the vote, send a certified copy of the
results to the commissioner of the department by certified mail.
(g) This subsection applies to a county having a population of more
than one hundred forty-eight thousand (148,000) but less than one
hundred seventy thousand (170,000). Except as provided in subsection
(p), in addition to the rates permitted by subsection (b), the:
(1) county economic development income tax may be imposed at
a rate of:
(A) fifteen-hundredths percent (0.15%);
tax rate plus the county adjusted gross income tax rate that are in effect
on January 1 of a year may not exceed one and five-tenths percent
(1.5%).
(m) For:
(1) a county having a population of more than one hundred
eighty-two thousand seven hundred ninety (182,790) but less than
two hundred thousand (200,000); or
(2) a county having a population of more than forty-five thousand
(45,000) but less than forty-five thousand nine hundred (45,900);
except as provided in subsection (p), the county economic development
income tax rate plus the county adjusted gross income tax rate that are
in effect on January 1 of a year may not exceed one and five-tenths
percent (1.5%).
(n) For a county having a population of more than six thousand
(6,000) but less than eight thousand (8,000), except as provided in
subsection (p), the county economic development income tax rate plus
the county adjusted gross income tax rate that are in effect on January
1 of a year may not exceed one and five-tenths percent (1.5%).
(o) This subsection applies to a county having a population of more
than thirty-nine thousand (39,000) but less than thirty-nine thousand
six hundred (39,600). Except as provided in subsection (p), in addition
to the rates permitted under subsection (b):
(1) the county economic development income tax may be imposed
at a rate of twenty-five hundredths percent (0.25%); and
(2) the sum of the county economic development income tax rate
and:
(A) the county adjusted gross income tax rate that are in effect
on January 1 of a year may not exceed one and five-tenths
percent (1.5%); or
(B) the county option income tax rate that are in effect on
January 1 of a year may not exceed one and twenty-five
hundredths percent (1.25%);
if the county council makes a determination to impose rates under this
subsection and section 24 of this chapter.
(p) In addition:
(1) the county economic development income tax may be imposed
at a rate that exceeds by not more than twenty-five hundredths
percent (0.25%) the maximum rate that would otherwise apply
under this section; and
(2) the:
(A) county economic development income tax; and
(B) county option income tax or county adjusted gross income
tax;
may be imposed at combined rates that exceed by not more than
twenty-five hundredths percent (0.25%) the maximum combined
rates that would otherwise apply under this section.
However, the additional rate imposed under this subsection may not
exceed the amount necessary to mitigate the increased ad valorem
property taxes on homesteads (as defined in IC 6-1.1-20.9-1) or
residential property (as defined in section 26 of this chapter), as
appropriate under the ordinance adopted by the adopting body in the
county, resulting from the deduction of the assessed value of inventory
in the county under IC 6-1.1-12-41 or IC 6-1.1-12-42.
(q) If the county economic development income tax is imposed as
authorized under subsection (p) at a rate that exceeds the maximum
rate that would otherwise apply under this section, the certified
distribution must be used for the purpose provided in section 25(e) or
26 of this chapter to the extent that the certified distribution results
from the difference between:
(1) the actual county economic development tax rate; and
(2) the maximum rate that would otherwise apply under this
section.
(r) This subsection applies only to a county described in section 27
of this chapter. Except as provided in subsection (p), in addition to the
rates permitted by subsection (b), the:
(1) county economic development income tax may be imposed at
a rate of twenty-five hundredths percent (0.25%); and
(2) county economic development income tax rate plus the county
option income tax rate that are in effect on January 1 of a year
may equal up to one and twenty-five hundredths percent (1.25%);
if the county council makes a determination to impose rates under this
subsection and section 27 of this chapter.
(s) Except as provided in subsection (p), the county economic
development income tax rate plus the county adjusted gross income tax
rate that are in effect on January 1 of a year may not exceed one and
five-tenths percent (1.5%) if the county has imposed the county
adjusted gross income tax under IC 6-3.5-1.1-3.3.
(t) This subsection applies to Howard County. Except as provided
in subsection (p), the sum of the county economic development income
tax rate and the county option income tax rate that are in effect on
January 1 of a year may not exceed one and twenty-five hundredths
percent (1.25%).
(u) This subsection applies to Scott County. Except as provided in
subsection (p), the sum of the county economic development income
tax rate and the county option income tax rate that are in effect on
January 1 of a year may not exceed one and twenty-five hundredths
percent (1.25%).
(v) This subsection applies to Jasper County. Except as provided in
subsection (p), the sum of the county economic development income tax
rate and the county adjusted gross income tax rate that are in effect on
January 1 of a year may not exceed one and five-tenths percent (1.5%).
(w) The income tax rate limits imposed by subsection (c) do not
apply to:
(1) a county adjusted gross income tax rate imposed under
IC 6-3.5-1.1-24, IC 6-3.5-1.1-25, or IC 6-3.5-1.1-26; or
(2) a county option income tax rate imposed under
IC 6-3.5-6-30, IC 6-3.5-6-31, or IC 6-3.5-6-32.
For purposes of computing the maximum combined income tax
rate under subsection (c) that may be imposed in a county under
IC 6-3.5-1.1, IC 6-3.5-6, and this chapter, a county's county
adjusted gross income tax rate or county option income tax rate for
a particular year does not include the county adjusted gross
income tax rate imposed under IC 6-3.5-1.1-24, IC 6-3.5-1.1-25, or
IC 6-3.5-1.1-26 or the county option income tax rate imposed under
IC 6-3.5-6-30, IC 6-3.5-6-31, or IC 6-3.5-6-32.
(x) This subsection applies to Monroe County. Except as
provided in subsection (p), if an ordinance is adopted under
IC 6-3.5-6-33, the sum of the county economic development income
tax rate and the county option income tax rate that are in effect on
January 1 of a year may not exceed one and twenty-five
hundredths percent (1.25%).
effect July October 1 of this year.".
(b) Any ordinance adopted under this section takes effect July
October 1 of the year the ordinance is adopted.
(c) The auditor of a county shall record all votes taken on
ordinances presented for a vote under the authority of this section and
immediately send a certified copy of the results to the department by
certified mail.
property taxes that are first due and payable to the county and all
cities and towns of the county during the calendar year in which
the month falls, plus an amount equal to the property taxes
imposed by the county in 1999 for the county's welfare fund and
welfare administration fund.
(c) This subsection applies to a county council or county income tax
council that imposes a tax under this chapter after June 1, 1992. The
body imposing the tax may adopt an ordinance before July 1 of a year
to provide for the distribution of certified distributions under this
subsection instead of a distribution under subsection (b). The following
apply if an ordinance is adopted under this subsection:
(1) The ordinance is effective January 1 of the following year.
(2) Except as provided in sections 25 and 26 of this chapter, the
amount of the certified distribution that the county and each city
and town in the county is entitled to receive during May and
November of each year equals the product of:
(A) the amount of the certified distribution for the month;
multiplied by
(B) a fraction. For a city or town, the numerator of the fraction
equals the population of the city or the town. For a county, the
numerator of the fraction equals the population of the part of
the county that is not located in a city or town. The
denominator of the fraction equals the sum of the population
of all cities and towns located in the county and the population
of the part of the county that is not located in a city or town.
(3) The ordinance may be made irrevocable for the duration of
specified lease rental or debt service payments.
(d) The body imposing the tax may not adopt an ordinance under
subsection (c) if, before the adoption of the proposed ordinance, any of
the following have pledged the county economic development income
tax for any purpose permitted by IC 5-1-14 or any other statute:
(1) The county.
(2) A city or town in the county.
(3) A commission, a board, a department, or an authority that is
authorized by statute to pledge the county economic development
income tax.
(e) The department of local government finance shall provide each
county auditor with the fractional amount of the certified distribution
that the county and each city or town in the county is entitled to receive
under this section.
(f) Money received by a county, city, or town under this section
shall be deposited in the unit's economic development income tax fund.
STEP ONE.
STEP THREE: Divide the STEP TWO result by three (3).
STEP FOUR: Determine the amount that would otherwise be
distributed to all the taxing units in the county under
subsection (b) without regard to this subdivision.
STEP FIVE: Determine the result of:
(A) the STEP FOUR amount; multiplied by
(B) the STEP THREE result.
(2) The state welfare allocation shall be deducted from the
distributions otherwise payable under subsection (c) to the taxing
unit that is a county and shall be deposited in a special account
within the state general fund.
(c) A taxing unit's guaranteed distribution for a year is the greater
of zero (0) or an amount equal to:
(1) the amount received by the taxing unit under IC 6-5-10
(repealed) and IC 6-5-11 (repealed) in 1989; minus
(2) the amount to be received by the taxing unit in the year of the
distribution, as determined by the department of local government
finance, from property taxes attributable to the personal property
of banks, exclusive of the property taxes attributable to personal
property leased by banks as the lessor where the possession of the
personal property is transferred to the lessee; minus
(3) in the case of a taxing unit that is a county, the amount that
would have been received by the taxing unit in the year of the
distribution, as determined by the department of local government
finance from property taxes that:
(A) were calculated for the county's county welfare fund and
county welfare administration fund for 2000 but were not
imposed because of the repeal of IC 12-19-3 and IC 12-19-4;
and
(B) would have been attributable to the personal property of
banks, exclusive of the property taxes attributable to personal
property leased by banks as the lessor where the possession of
the personal property is transferred to the lessee.
(d) The amount of the supplemental distribution for a county for a
year shall be determined using the following formula:
STEP ONE: Determine the greater of zero (0) or the difference
between:
(A) one-half (1/2) of the taxes that the department estimates
will be paid under this article during the year; minus
(B) the sum of all the guaranteed distributions, before the
subtraction of all state welfare allocations under subsection
(a), for all taxing units in all counties plus the bank personal
property taxes to be received by all taxing units in all counties,
as determined under subsection (c)(2) for the year.
STEP TWO: Determine the quotient of:
(A) the amount received under IC 6-5-10 (repealed) and
IC 6-5-11 (repealed) in 1989 by all taxing units in the county;
divided by
(B) the sum of the amounts received under IC 6-5-10
(repealed) and IC 6-5-11 (repealed) in 1989 by all taxing units
in all counties.
STEP THREE: Determine the product of:
(A) the amount determined in STEP ONE; multiplied by
(B) the amount determined in STEP TWO.
STEP FOUR: Determine the greater of zero (0) or the difference
between:
(A) the amount of supplemental distribution determined in
STEP THREE for the county; minus
(B) the amount of refunds granted under IC 6-5-10-7
(repealed) that have yet to be reimbursed to the state by the
county treasurer under IC 6-5-10-13 (repealed).
For the supplemental distribution made on or before August 1 of each
year, the department shall adjust the amount of each county's
supplemental distribution to reflect the actual taxes paid under this
article for the preceding year.
(e) Except as provided in subsection (g), the amount of the
supplemental distribution for each taxing unit shall be determined
using the following formula:
STEP ONE: Determine the quotient of:
(A) the amount received by the taxing unit under IC 6-5-10
(repealed) and IC 6-5-11 (repealed) in 1989; divided by
(B) the sum of the amounts used in STEP ONE (A) for all
taxing units located in the county.
STEP TWO: Determine the product of:
(A) the amount determined in STEP ONE; multiplied by
(B) the supplemental distribution for the county, as determined
in subsection (d), STEP FOUR.
(f) The county auditor shall distribute the guaranteed and
supplemental distributions received under subsection (a) to the taxing
units in the county at the same time that the county auditor makes the
semiannual distribution of real property taxes to the taxing units.
(g) The amount of a supplemental distribution paid to a taxing unit
that is a county shall be reduced by an amount equal to:
chapter for the purpose provided in subsection (e). A county income
tax council that adopts an ordinance under this subsection shall use the
procedures set forth in IC 6-3.5-6 concerning the adoption of an
ordinance for the imposition of the county option income tax. Except
as provided in subsection (j), an ordinance must be adopted under this
subsection after January 1 March 31 but before June August 1 of a
calendar year. The ordinance may provide for an additional rate under
section 5(p) of this chapter. An ordinance adopted under this
subsection:
(1) first applies to the certified distribution described in section
16(c) of this chapter made in the calendar year that immediately
succeeds the calendar year in which the ordinance is adopted;
(2) must specify the calendar years to which the ordinance
applies; and
(3) must specify that the certified distribution must be used to
provide for:
(A) uniformly applied increased homestead credits as provided
in subsection (f); or
(B) allocated increased homestead credits as provided in
subsection (h).
An ordinance adopted under this subsection may be combined with an
ordinance adopted under section 26 of this chapter.
(d) If an ordinance is adopted under subsection (c), the percentage
of the certified distribution specified in the ordinance for use for the
purpose provided in subsection (e) shall be:
(1) retained by the county auditor under subsection (i); and
(2) used for the purpose provided in subsection (e) instead of the
purposes specified in the capital improvement plans adopted
under section 15 of this chapter.
(e) If an ordinance is adopted under subsection (c), the imposing
entity shall use the certified distribution described in section 16(c) of
this chapter to increase the homestead credit allowed in the county
under IC 6-1.1-20.9 for a year to offset the effect on homesteads in the
county resulting from a county deduction for inventory under
IC 6-1.1-12-41.
(f) If the imposing entity specifies the application of uniform
increased homestead credits under subsection (c)(3)(A), the county
auditor shall, for each calendar year in which an increased homestead
credit percentage is authorized under this section, determine:
(1) the amount of the certified distribution that is available to
provide an increased homestead credit percentage for the year;
(2) the amount of uniformly applied homestead credits for the
year in the county that equals the amount determined under
subdivision (1); and
(3) the increased percentage of homestead credit that equates to
the amount of homestead credits determined under subdivision
(2).
(g) The increased percentage of homestead credit determined by the
county auditor under subsection (f) applies uniformly in the county in
the calendar year for which the increased percentage is determined.
(h) If the imposing entity specifies the application of allocated
increased homestead credits under subsection (c)(3)(B), the county
auditor shall, for each calendar year in which an increased homestead
credit is authorized under this section, determine:
(1) the amount of the certified distribution that is available to
provide an increased homestead credit for the year; and
(2) an increased percentage of homestead credit for each taxing
district in the county that allocates to the taxing district an amount
of increased homestead credits that bears the same proportion to
the amount determined under subdivision (1) that the amount of
inventory assessed value deducted under IC 6-1.1-12-41 in the
taxing district for the immediately preceding year's assessment
date bears to the total inventory assessed value deducted under
IC 6-1.1-12-41 in the county for the immediately preceding year's
assessment date.
(i) 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. The money shall
be distributed to the civil taxing units and school corporations of the
county:
(1) as if the money were from property tax collections; and
(2) in such a manner that no civil taxing unit or school
corporation will suffer a net revenue loss because of the
allowance of an increased homestead credit.
(j) An entity authorized to adopt:
(1) an ordinance under subsection (c); and
(2) an ordinance under IC 6-1.1-12-41(f);
may consolidate the two (2) ordinances. The limitation under
subsection (c) that an ordinance must be adopted after January 1 of a
calendar year does not apply if a consolidated ordinance is adopted
under this subsection. However, notwithstanding subsection (c)(1), the
ordinance must state that it first applies to certified distributions in the
calendar year in which property taxes are initially affected by the
deduction under IC 6-1.1-12-41.
provide for one (1) of the following, as determined by the
adopting entity:
(A) Uniformly applied increased homestead credits as
provided in subsection (f).
(B) Uniformly applied increased residential credits as
provided in subsection (g).
(C) Allocated increased homestead credits as provided in
subsection (i).
(D) Allocated increased residential credits as provided in
subsection (j).
An ordinance adopted under this subsection may be combined with an
ordinance adopted under section 25 of this chapter.
(d) If an ordinance is adopted under subsection (c), the percentage
of the certified distribution specified in the ordinance for use for the
purpose provided in subsection (e) shall be:
(1) retained by the county auditor under subsection (k); and
(2) used for the purpose provided in subsection (e) instead of the
purposes specified in the capital improvement plans adopted
under section 15 of this chapter.
(e) If an ordinance is adopted under subsection (c), the adopting
entity shall use the certified distribution described in section 16(c) of
this chapter to increase:
(1) if the ordinance grants a credit described in subsection
(c)(2)(A) or (c)(2)(C), the homestead credit allowed in the county
under IC 6-1.1-20.9 for a year; or
(2) if the ordinance grants a credit described in subsection
(c)(2)(B) or (c)(2)(D), the property tax replacement credit allowed
in the county under IC 6-1.1-21-5 for a year for the residential
property;
to offset the effect on homesteads or residential property, as applicable,
in the county resulting from the statewide deduction for inventory
under IC 6-1.1-12-42. The amount of an additional residential property
tax replacement credit granted under this section may not be
considered in computing the amount of any homestead credit to which
the residential property may be entitled under IC 6-1.1-20.9 or another
law other than IC 6-1.1-20.6.
(f) If the imposing entity specifies the application of uniform
increased homestead credits under subsection (c)(2)(A), the county
auditor shall, for each calendar year in which an increased homestead
credit percentage is authorized under this section, determine:
(1) the amount of the certified distribution that is available to
provide an increased homestead credit percentage for the year;
(c)(2)(D), the county auditor shall determine for each calendar year in
which an increased residential property tax replacement credit is
authorized under this section:
(1) the amount of the certified distribution that is available to
provide an increased residential property tax replacement credit
for the year; and
(2) except as provided in subsection (l), an increased percentage
of residential property tax replacement credit for each taxing
district in the county that allocates to the taxing district an amount
of increased residential property tax replacement credits that
bears the same proportion to the amount determined under
subdivision (1) that the amount of inventory assessed value
deducted under IC 6-1.1-12-42 in the taxing district for the
immediately preceding year's assessment date bears to the total
inventory assessed value deducted under IC 6-1.1-12-42 in the
county for the immediately preceding year's assessment date.
(k) 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 or residential property tax
replacement credit within the county. The money shall be distributed
to the civil taxing units and school corporations of the county:
(1) as if the money were from property tax collections; and
(2) in such a manner that no civil taxing unit or school
corporation will suffer a net revenue loss because of the
allowance of an increased homestead credit or residential property
tax replacement credit.
(l) Subject to the approval of the imposing entity, the county auditor
may adjust the increased percentage of:
(1) homestead credit determined under subsection (i)(2) if the
county auditor determines that the adjustment is necessary to
achieve an equitable reduction of property taxes among the
homesteads in the county; or
(2) residential property tax replacement credit determined under
subsection (j)(2) if the county auditor determines that the
adjustment is necessary to achieve an equitable reduction of
property taxes among the residential property in the county.
and
(C) requires the county to comply with the federal Americans
with Disabilities Act; and
(2) has insufficient revenues to finance the construction,
acquisition, improvement, renovation, equipping, and operation
of the courthouse facilities and related facilities.
(b) A county described in this section possesses unique fiscal
challenges in financing, renovating, equipping, and operating the
county courthouse facilities and related facilities because the county
consistently has one of the highest unemployment rates in Indiana.
Maintaining low property tax rates is essential to economic
development in the county. The use of economic development income
tax revenues under this section for the purposes described in subsection
(c) promotes that purpose.
(c) In addition to actions authorized by section 5 of this chapter, a
county council may, using the procedures set forth in this chapter,
adopt an ordinance to impose an additional county economic
development income tax on the adjusted gross income of county
taxpayers. The ordinance imposing the additional tax must include a
finding that revenues from additional tax are needed to pay the costs of:
(1) constructing, acquiring, improving, renovating, equipping, or
operating the county courthouse or related facilities;
(2) repaying any bonds issued, or leases entered into, for
constructing, acquiring, improving, renovating, equipping, or
operating the county courthouse or related facilities; and
(3) economic development projects described in the county's
capital improvement plan.
(d) The tax rate imposed under this section may not exceed
twenty-five hundredths percent (0.25%).
(e) If the county council adopts an ordinance to impose an
additional tax under this section, the county auditor shall immediately
send a certified copy of the ordinance to the department by certified
mail. The county treasurer shall establish a county facilities revenue
fund to be used only for the purposes described in subsection (c)(1) and
(c)(2). The amount of county economic development income tax
revenues derived from the tax rate imposed under this section that are
necessary to pay the costs described in subsection (c)(1) and (c)(2)
shall be deposited into the county facilities revenue fund before a
certified distribution is made under section 12 of this chapter. The
remainder shall be deposited into the economic development income
tax funds of the county's units.
(f) County economic development income tax revenues derived
from the tax rate imposed under this section may not be used for
purposes other than those described in this section.
(g) County economic development income tax revenues derived
from the tax rate imposed under this section that are deposited into the
county facilities revenue fund may not be considered by the department
of local government finance in determining the county's ad valorem
property tax levy for an ensuing calendar year under IC 6-1.1-18.5.
(h) Notwithstanding section 5 of this chapter, an ordinance may be
adopted under this section at any time. If the ordinance is adopted
before June August 1 of a year, a tax rate imposed under this section
takes effect July October 1 of that year. If the ordinance is adopted
after May July 31 of a year, a tax rate imposed under this section takes
effect on the January 1 immediately following adoption of the
ordinance.
(i) For a county adopting an ordinance before June 1 in a year, in
determining the certified distribution under section 11 of this chapter
for the calendar year beginning with the immediately following January
1 and each calendar year thereafter, the department shall take into
account the certified ordinance mailed to the department under
subsection (e). For a county adopting an ordinance after May 31, the
department shall issue an initial or a revised certified distribution for
the calendar year beginning with the immediately following January 1.
Except for a county adopting an ordinance after May 31, a county's
certified distribution shall be distributed on the dates specified under
section 16 of this chapter. In the case of a county adopting an ordinance
after May 31, the county, beginning with the calendar year beginning
on the immediately following January 1, shall receive the entire
certified distribution for the calendar year on November 1 of the year.
(j) Notwithstanding any other law, funds accumulated from the
county economic development income tax imposed under this section
and deposited into the county facilities revenue fund or any other
revenues of the county may be deposited into a nonreverting fund of
the county to be used for operating costs of the courthouse facilities,
juvenile detention facilities, or related facilities. Amounts in the county
nonreverting fund may not be used by the department of local
government finance to reduce the county's ad valorem property tax levy
for an ensuing calendar year under IC 6-1.1-18.5.
state board of accounts.
(b) The county treasurer, upon receiving the excise tax collections,
shall receipt such collections into a separate account for settlement
thereof at the same time as property taxes are accounted for and settled
in June and December of each year, with the right and duty of the
treasurer and auditor to make advances prior to the time of final
settlement of such property taxes in the same manner as provided in
IC 5-13-6-3.
(c) Except as provided in subsection (d), the county auditor shall
determine the total amount of excise taxes collected for each taxing
unit in the county and the amount so collected (and the distributions
received under section 9.5 of this chapter) shall be apportioned and
distributed among the respective funds of each taxing unit in the same
manner and at the same time as property taxes are apportioned and
distributed. However, for purposes of determining distributions under
this section for 2000 and each year thereafter, the state welfare
allocation for each county equals the greater of zero (0) or the amount
determined under STEP FIVE of the following STEPS:
STEP ONE: For 1997, 1998, and 1999, determine the result of:
(i) the amounts appropriated by the county in the year from the
county's county welfare fund and county welfare
administration fund; divided by
(ii) the total amounts appropriated by all the taxing units in the
county in the year.
STEP TWO: Determine the sum of the results determined in
STEP ONE.
STEP THREE: Divide the STEP TWO result by three (3).
STEP FOUR: Determine the amount that would otherwise be
distributed to all the taxing units in the county under this
subsection without regard to this subdivision.
STEP FIVE: Determine the result of:
(i) the STEP FOUR amount; multiplied by
(ii) the STEP THREE result.
The state welfare allocation shall be deducted from the total amount
available for apportionment and distribution to taxing units under this
section before any apportionment and distribution is made. The county
auditor shall remit the state welfare allocation to the treasurer of state
for deposit in a special account within the state general fund.
(d) Notwithstanding any other provision of this section, the
department of local government finance shall for each year after
2007 do the following:
(1) Certify to the county auditor an adjustment to the
distribution of excise taxes to ensure that the school
corporation's amount of excise tax revenue under this chapter
is not reduced (as a percentage of the total excise tax
distributions in the county) because of the reduction or
elimination of the school corporation's tuition support levy
under IC 20-45-3-11(b) through IC 20-45-3-11(c).
(2) Certify to the county auditor an adjustment to the
distribution of excise taxes to ensure that the county's amount
of excise tax revenue under this chapter is not reduced (as a
percentage of the total excise tax distributions in the county)
because of the reduction or elimination of the county family
and children's fund property tax levy under IC 12-19-7-4(b)
through IC 12-19-7-4(f).
(d) (e) Such determination shall be made from copies of vehicle
registration forms furnished by the bureau of motor vehicles. Prior to
such determination, the county assessor of each county shall, from
copies of registration forms, cause information pertaining to legal
residence of persons owning taxable vehicles to be verified from the
assessor's records, to the extent such verification can be so made. The
assessor shall further identify and verify from the assessor's records the
several taxing units within which such persons reside.
(e) (f) Such verifications shall be done by not later than thirty (30)
days after receipt of vehicle registration forms by the county assessor,
and the assessor shall certify such information to the county auditor for
the auditor's use as soon as it is checked and completed.
at the same time as property taxes are apportioned and distributed.
(d) In the event that sufficient funds are not available in the
commercial vehicle excise tax fund for the distributions required by
subsection (a) and subsection (b)(1), the auditor of state shall transfer
funds from the commercial vehicle excise tax reserve fund.
(e) The auditor of state shall, not later than July 1 of each year,
furnish to each county auditor an estimate of the amounts to be
distributed to the counties under this section during the next calendar
year. Before August 1, each county auditor shall furnish to the proper
officer of each taxing unit of the county an estimate of the amounts to
be distributed to the taxing units under this section during the next
calendar year and the budget of each taxing unit shall show the
estimated amounts to be received for each fund for which a property
tax is proposed to be levied.
(f) Notwithstanding any other provision of this section, the
department of local government finance shall for each year after
2007 do the following:
(1) Certify to the county auditor an adjustment to the
distribution of excise taxes to ensure that the school
corporation's amount of excise tax revenue under this chapter
is not reduced (as a percentage of the total excise tax
distributions in the county) because of the reduction or
elimination of the school corporation's tuition support levy
under IC 20-45-3-11(b) through IC 20-45-3-11(c).
(2) Certify to the county auditor an adjustment to the
distribution of excise taxes to ensure that the county's amount
of excise tax revenue under this chapter is not reduced (as a
percentage of the total excise tax distributions in the county)
because of the reduction or elimination of the county family
and children's fund property tax levy under IC 12-19-7-4(b)
through IC 12-19-7-4(f).
the department, the county treasurer shall file a report with the county
auditor concerning the aircraft excise taxes collected by the county
treasurer. The county treasurer shall file the report on the form
prescribed by the state board of accounts. The county treasurer shall,
in the manner and at the times prescribed in IC 6-1.1-27, make a
settlement with the county auditor for the aircraft excise taxes collected
by the county treasurer. The county treasurer shall, in the manner
prescribed by the state board of accounts, maintain records concerning
the aircraft excise taxes received and distributed by him.
motel, inn, tourist camp, or tourist cabin located in a county described
in section 1 of this chapter. Such tax shall not exceed the rate of six
eight percent (6%) (8%) on the gross income derived from lodging
income only and shall be in addition to the state gross retail tax
imposed on such persons by IC 6-2.5.
(b) The county fiscal body may adopt an ordinance to require that
the tax be reported on forms approved by the county treasurer and that
the tax shall be paid monthly to the county treasurer. If such an
ordinance is adopted, the tax shall be paid to the county treasurer not
more than twenty (20) days after the end of the month the tax is
collected. If such an ordinance is not adopted, the tax shall be imposed,
paid, and collected in exactly the same manner as the state gross retail
tax is imposed, paid, and collected pursuant to IC 6-2.5.
(c) All of the provisions of IC 6-2.5 relating to rights, duties,
liabilities, procedures, penalties, definitions, exemptions, and
administration shall be applicable to the imposition and administration
of the tax imposed by this section except to the extent such provisions
are in conflict or inconsistent with the specific provisions of this
chapter or the requirements of the county treasurer. Specifically and not
in limitation of the foregoing sentence, the terms "person" and "gross
income" shall have the same meaning in this section as they have in
IC 6-2.5. If the tax is paid to the department of state revenue, the
returns to be filed for the payment of the tax under this section may be
either a separate return or may be combined with the return filed for the
payment of the state gross retail tax as the department of state revenue
may, by rule or regulation, determine.
(d) If the tax is paid to the department of state revenue, the amounts
received from such tax shall be paid quarterly by the treasurer of state
to the county treasurer upon warrants issued by the auditor of state.
(e) The tax imposed under subsection (a) does not apply to the
renting or furnishing of rooms, lodgings, or accommodations to a
person for a period of thirty (30) days or more.
the amount generated by a two percent (2%) rate.
(2) After December 31, 1999, and before January 1, 2003, the
county treasurer shall deposit in the tourism capital improvement
fund the amount of money received under section 6 of this chapter
that is generated by a one percent (1%) rate.
(3) After December 31, 2002, and (1) Before January 1, 2010, the
county treasurer shall deposit in the tourism capital improvement
fund the amount of money received under section 6 of this chapter
that is generated by a one three and one-half percent (1.5%)
(3.5%) rate.
(4) (2) After December 31, 2009, the county treasurer shall
deposit in the tourism capital improvement fund the amount of
money received under section 6 of this chapter that is generated
by a two four and one-half percent (2.5%) (4.5%) rate.
(c) The commission may transfer money in the tourism capital
improvement fund to:
(1) the county government, a city government, or a separate body
corporate and politic in a county described in section 1 of this
chapter; or
(2) any Indiana nonprofit corporation;
for the purpose of making capital improvements in the county that
promote conventions, tourism, or recreation. The commission may
transfer money under this section only after approving the transfer.
Transfers shall be made quarterly or less frequently under this section.
31, 2008) and then by the department of local government finance as
in the case of other political subdivisions.
the execution of the lease is unnecessary or unwise or that the
payments provided for in the lease are not fair and reasonable, as the
case may be.
(e) Upon the filing of a petition under subsection (d), the county
auditor shall immediately certify a copy of the petition, together with
any other data necessary to present the questions involved, to the
department of local government finance (before January 1, 2009) or
the county board of tax and capital projects review (after
December 31, 2008). Upon receipt of the certified petition and
information, the department of local government finance or county
board of tax and capital projects review shall fix a time and place for
a hearing in the authority district, which must be not less than five (5)
or more than thirty (30) days after the time is fixed. Notice of the
hearing shall be given by the department of local government finance
to the members of the board, and to the first fifty (50) petitioners on the
petition, by a letter signed by one (1) member of the state board of tax
commissioners or the county board of tax and capital projects
review and enclosed with fully prepaid postage sent to those persons
at their usual place of residence, at least five (5) days before the date
of the hearing. The decision of the department of local government
finance or the county board of tax and capital projects review on
the appeal, upon the necessity for the execution of the lease, and as to
whether the payments under it are fair and reasonable, is final.
(f) An authority entering into a lease payable from any sources
permitted under this chapter may:
(1) pledge the revenue to make payments under the lease pursuant
to IC 5-1-14-4; or
(2) establish a special fund to make the payments.
(g) Lease rentals may be limited to money in the special fund so that
the obligations of the airport authority to make the lease rental
payments are not considered debt of the unit or the district for purposes
of the Constitution of the State of Indiana.
(h) Except as provided in this section, no approvals of any
governmental body or agency are required before the authority enters
into a lease under this section.
(i) An action to contest the validity of the lease or to enjoin the
performance of any of its terms and conditions must be brought within
thirty (30) days after the later of:
(1) the public hearing described in subsection (c); or
(2) the publication of the notice of the execution and approval of
the lease described in subsection (d), if the lease is payable in
whole or in part from tax levies.
state treasurer under this section for 2008, without any
adjustment under this section; minus
(2) the result determined for the county in STEP ONE of
IC 12-19-7-4(b) for 2008.
(c) This subsection applies in 2008 if the result determined for
the county in STEP ONE of IC 12-19-7-4(b) for 2008 is negative.
The amount the county is required to pay to the state treasurer
under this section for the keeping of offenders for 2008 is equal to
the amount determined under subsection (a), without any
adjustment under this section.
(d) This subsection applies in a calendar year if the result
determined for the county in STEP ONE of IC 12-19-7-4(d) for the
calendar year is positive. The amount a county shall pay to the
state treasurer under this section shall be adjusted as provided in
STEP TWO or STEP FOUR (as applicable) of the following
STEPS:
STEP ONE: Determine the result of:
(1) the result determined for the county in STEP ONE of
IC 12-19-7-4(d) for the calendar year; minus
(2) the amount the county would be required to pay to the
state treasurer under this section, without any adjustment
under this section.
STEP TWO: If the result in STEP ONE is positive, the county
is not required to make a payment to the state treasurer
under this section for the keeping of offenders for the
calendar year.
STEP THREE: If the result in STEP ONE is negative, the
amount the county is required to pay to the state treasurer
under this section for the keeping of offenders for the
calendar year is equal to the result of:
(1) the amount the county would have been required to pay
to the state treasurer under this section for the keeping of
offenders for 2008 under subsection (a), without any
adjustment under this section; minus
(2) the result determined for the county in STEP ONE of
IC 12-19-7-4(d) for the calendar year.
(e) This subsection applies in a calendar year if the result
determined for the county in STEP ONE of IC 12-19-7-4(d) for the
calendar year is negative. The amount a county shall pay to the
state treasurer under this section is equal to the result of:
(1) the amount the county would be required to pay to the
state treasurer under this section for the calendar year,
without any adjustment under this section; minus
(2) the greater of zero (0) or the difference between:
(A) the amount the county would be required to pay to the
state treasurer under this section for the calendar year,
without any adjustment under this section; minus
(B) the amount the county would have been required to
pay to the state treasurer under this section for the
preceding calendar year, without any adjustment under
this section.
(b) (f) A county is not liable for services provided an offender under
section 6 of this chapter or for the cost of keeping the offender while
those services are being provided.
services under this section.
(2) All money, proceeds, or income realized from real property or
other investments.
(d) Subject to the approval of the judge or the court of the county
having probate jurisdiction, conditions imposed on the gift, devise, or
bequest by the donor, money described in subsection (c)(1) or (c)(2)
may be expended by the county office department of child services
in any manner consistent with the purposes of the fund's creation and
with the intention of the donor.