CHAPTER 1.1. COUNTY ADJUSTED GROSS INCOME TAX
IC 6-3.5-1.1
Chapter 1.1. County Adjusted Gross Income Tax
IC 6-3.5-1.1-1
Definitions
Sec. 1. As used in this chapter:
"Adjusted gross income" has the same definition that the term is
given in IC 6-3-1-3.5(a), except that in the case of a county taxpayer
who is not a resident of a county that has imposed the county
adjusted gross income tax, the term includes only adjusted gross
income derived from the taxpayer's principal place of business or
employment.
"Apartment complex" means real property consisting of at least
five (5) units that are regularly used to rent or otherwise furnish
residential accommodations for periods of at least thirty (30) days.
"Civil taxing unit" means any entity having the power to impose
ad valorem property taxes except a school corporation. The term
does not include a solid waste management district that is not entitled
to a distribution under section 1.3 of this chapter. However, in the
case of a consolidated city, the term "civil taxing unit" includes the
consolidated city and all special taxing districts, all special service
districts, and all entities whose budgets and property tax levies are
subject to review under IC 36-3-6-9.
"County council" includes the city-county council of a
consolidated city.
"County taxpayer" as it relates to a county for a year means any
individual:
(1) who resides in that county on the date specified in section
16 of this chapter; or
(2) who maintains the taxpayer's principal place of business or
employment in that county on the date specified in section 16
of this chapter and who does not on that same date reside in
another county in which the county adjusted gross income tax,
the county option income tax, or the county economic
development income tax is in effect.
"Department" refers to the Indiana department of state revenue.
"Homestead" has the meaning set forth in IC 6-1.1-12-37.
"Nonresident county taxpayer" as it relates to a county for a year
means any county taxpayer for that county for that year who is not a
resident county taxpayer of that county for that year.
"Qualified residential property" refers to any of the following:
(1) An apartment complex.
(2) A homestead.
(3) Residential rental property.
"Resident county taxpayer" as it relates to a county for a year
means any county taxpayer who resides in that county on the date
specified in section 16 of this chapter.
"Residential rental property" means real property consisting of not
more than four (4) units that are regularly used to rent or otherwise
furnish residential accommodations for periods of at least thirty (30)
days.
"School corporation" means any public school corporation
established under Indiana law.
As added by P.L.73-1983, SEC.2. Amended by P.L.44-1984, SEC.12;
P.L.22-1988, SEC.3; P.L.96-1995, SEC.1; P.L.146-2008, SEC.326.
IC 6-3.5-1.1-1.1
Determination of allocation amount
Sec. 1.1. (a) For purposes of allocating the certified distribution
made to a county under this chapter among the civil taxing units and
school corporations in the county, the allocation amount for a civil
taxing unit or school corporation is the amount determined using the
following formula:
STEP ONE: Determine the sum of the total property taxes being
collected by the civil taxing unit or school corporation during
the calendar year of the distribution.
STEP TWO: Determine the sum of the following:
(A) Amounts appropriated from property taxes to pay the
principal of or interest on any debenture or other debt
obligation issued after June 30, 2005, other than an
obligation described in subsection (b).
(B) Amounts appropriated from property taxes to make
payments on any lease entered into after June 30, 2005, other
than a lease described in subsection (c).
(C) The proceeds of any property that are:
(i) received as the result of the issuance of a debt
obligation described in clause (A) or a lease described in
clause (B); and
(ii) appropriated from property taxes for any purpose other
than to refund or otherwise refinance a debt obligation or
lease described in subsection (b) or (c).
STEP THREE: Subtract the STEP TWO amount from the STEP
ONE amount.
STEP FOUR: Determine the sum of:
(A) the STEP THREE amount; plus
(B) the civil taxing unit's or school corporation's certified
distribution for the previous calendar year.
The allocation amount is subject to adjustment as provided in
IC 36-8-19-7.5.
(b) Except as provided in this subsection, an appropriation from
property taxes to repay interest and principal of a debt obligation is
not deducted from the allocation amount for a civil taxing unit or
school corporation if:
(1) the debt obligation was issued; and
(2) the proceeds appropriated from property taxes;
to refund or otherwise refinance a debt obligation or a lease issued
before July 1, 2005. However, an appropriation from property taxes
related to a debt obligation issued after June 30, 2005, is deducted if
the debt extends payments on a debt or lease beyond the time in
which the debt or lease would have been payable if the debt or lease
had not been refinanced or increases the total amount that must be
paid on a debt or lease in excess of the amount that would have been
paid if the debt or lease had not been refinanced. The amount of the
deduction is the annual amount for each year of the extension period
or the annual amount of the increase over the amount that would
have been paid.
(c) Except as provided in this subsection, an appropriation from
property taxes to make payments on a lease is not deducted from the
allocation amount for a civil taxing unit or school corporation if:
(1) the lease was issued; and
(2) the proceeds were appropriated from property taxes;
to refinance a debt obligation or lease issued before July 1, 2005.
However, an appropriation from property taxes related to a lease
entered into after June 30, 2005, is deducted if the lease extends
payments on a debt or lease beyond the time in which the debt or
lease would have been payable if the debt or lease had not been
refinanced or increases the total amount that must be paid on a debt
or lease in excess of the amount that would have been paid if the debt
or lease had not been refinanced. The amount of the deduction is the
annual amount for each year of the extension period or the annual
amount of the increase over the amount that would have been paid.
As added by P.L.207-2005, SEC.1. Amended by P.L.182-2009(ss),
SEC.209.
IC 6-3.5-1.1-1.3
Districts not entitled to distribution
Sec. 1.3. (a) This section applies to a county solid waste
management district (as defined in IC 13-11-2-47) or a joint solid
waste management district (as defined in IC 13-11-2-113).
(b) A district may not receive a distribution under this chapter
unless a majority of the members of each of the county fiscal bodies
of the counties within the district passes a resolution approving the
distribution.
(c) A resolution passed by a county fiscal body under subsection
(b) may:
(1) expire on a date specified in the resolution; or
(2) remain in effect until the county fiscal body revokes or
rescinds the resolution.
As added by P.L.96-1995, SEC.2. Amended by P.L.1-1996, SEC.47;
P.L.70-2001, SEC.1.
IC 6-3.5-1.1-1.5
Time within which to adopt ordinance; effective date of ordinances
Sec. 1.5. (a) Notwithstanding any other provision of this chapter,
a power granted by this chapter to adopt an ordinance to:
(1) impose, increase, decrease, or rescind a tax or tax rate; or
(2) grant, increase, decrease, rescind, or change a homestead
credit or property tax replacement credit authorized under this
chapter;
may be exercised at any time in a year before November 1 of that
year.
(b) Notwithstanding any other provision of this chapter, an
ordinance authorized by this chapter that imposes or increases a tax
or a tax rate takes effect as follows:
(1) An ordinance adopted after December 31 of the immediately
preceding year and before October 1 of the current year takes
effect October 1 of the current year.
(2) An ordinance adopted after September 30 and before
October 16 of the current year takes effect November 1 of the
current year.
(3) An ordinance adopted after October 15 and before
November 1 of the current year takes effect December 1 of the
current year.
(c) Notwithstanding any other provision of this chapter, an
ordinance authorized by this chapter that decreases or rescinds a tax
or a tax rate takes effect as follows:
(1) An ordinance adopted after December 31 of the immediately
preceding year and before October 1 of the current year takes
effect on the later of October 1 of the current year or the first
day of the month in the current year as the month in which the
last increase in the tax or tax rate occurred.
(2) An ordinance adopted after September 30 and before
October 16 of the current year takes effect on the later of
November 1 of the current year or the first day of the month in
the current year as the month in which the last increase in the
tax or tax rate occurred.
(3) An ordinance adopted after October 15 and before
November 1 of the current year takes effect December 1 of the
current year.
(d) Notwithstanding any other provision of this chapter, an
ordinance authorized by this chapter that grants, increases, decreases,
rescinds, or changes a homestead credit or property tax replacement
credit authorized under this chapter takes effect for and applies to
property taxes first due and payable in the year immediately
following the year in which the ordinance is adopted.
As added by P.L.113-2010, SEC.61.
IC 6-3.5-1.1-2
Authorization; rate of tax; form and adoption of ordinance
Sec. 2. (a) The county council of any county in which the county
option income tax will not be in effect on October 1 of a year under
an ordinance adopted during a previous calendar year may impose
the county adjusted gross income tax on the adjusted gross income
of county taxpayers of its county effective July 1 of that year.
(b) Except as provided in section 2.3, 2.5, 2.6, 2.7, 2.8, 2.9, 3.3,
3.5, 3.6, 24, 25, or 26 of this chapter, the county adjusted gross
income tax may be imposed at a rate of one-half of one percent
(0.5%), three-fourths of one percent (0.75%), or one percent (1%) on
the adjusted gross income of resident county taxpayers of the county.
Any county imposing the county adjusted gross income tax must
impose the tax on the nonresident county taxpayers at a rate of
one-fourth of one percent (0.25%) on their adjusted gross income. If
the county council elects to decrease the county adjusted gross
income tax, the county council may decrease the county adjusted
gross income tax rate in increments of one-tenth of one percent
(0.1%).
(c) To impose the county adjusted gross income tax, the county
council must, after March 31 but before August 1 of a year, adopt an
ordinance. The ordinance must substantially state the following:
"The ________ County Council imposes the county adjusted
gross income tax on the county taxpayers of ________ County.
The county adjusted gross income tax is imposed at a rate of
_____ percent (_____%) on the resident county taxpayers of the
county and one-fourth of one percent (0.25%) on the
nonresident county taxpayers of the county. This tax takes
effect October 1 of this year.".
(d) Any ordinance adopted under this section takes effect October
1 of the year the ordinance is adopted.
(e) The auditor of a county shall record all votes taken on
ordinances presented for a vote under the authority of this section
and immediately send a certified copy of the results to the
department by certified mail.
(f) If the county adjusted gross income tax had previously been
adopted by a county under IC 6-3.5-1 (before its repeal on March 15,
1983) and that tax was in effect at the time of the enactment of this
chapter, then the county adjusted gross income tax continues in that
county at the rates in effect at the time of enactment until the rates
are modified or the tax is rescinded in the manner prescribed by this
chapter. If a county's adjusted gross income tax is continued under
this subsection, then the tax shall be treated as if it had been imposed
under this chapter and is subject to rescission or reduction as
authorized in this chapter.
As added by P.L.73-1983, SEC.2. Amended by P.L.44-1984, SEC.13;
P.L.3-1990, SEC.24; P.L.35-1990, SEC.12; P.L.42-1994, SEC.1;
P.L.119-1998, SEC.6; P.L.135-2001, SEC.1; P.L.178-2002, SEC.52;
P.L.42-2003, SEC.1; P.L.162-2006, SEC.27; P.L.224-2007, SEC.54.
IC 6-3.5-1.1-2.3
Jasper County; additional tax rate for criminal justice facilities
Sec. 2.3. (a) This section applies to Jasper County.
(b) The county council may, by ordinance, determine that
additional county adjusted gross income tax revenue is needed in the
county to:
(1) finance, construct, acquire, improve, renovate, or equip:
(A) jail facilities;
(B) juvenile court, detention, and probation facilities;
(C) other criminal justice facilities; and
(D) related buildings and parking facilities;
located in the county, including costs related to the demolition
of existing buildings and the acquisition of land; and
(2) repay bonds issued or leases entered into for the purposes
described in subdivision (1).
(c) The county council may, by ordinance, determine that
additional county adjusted gross income tax revenue is needed in the
county to operate or maintain any of the facilities described in
subsection (b)(1)(A) through (b)(1)(D) that are located in the county.
The county council may make a determination under both this
subsection and subsection (b).
(d) In addition to the rates permitted by section 2 of this chapter,
the county council may impose the county adjusted gross income tax
at a rate of:
(1) fifteen-hundredths percent (0.15%);
(2) two-tenths percent (0.2%); or
(3) twenty-five hundredths percent (0.25%);
on the adjusted gross income of county taxpayers if the county
council makes a finding and determination set forth in subsection (b)
or (c).
(e) If the county council imposes the tax under this section to pay
for the purposes described in both subsections (b) and (c), when:
(1) the financing, construction, acquisition, improvement,
renovation, and equipping described in subsection (b) are
completed; and
(2) all bonds issued or leases entered into to finance the
construction, acquisition, improvement, renovation, and
equipping described in subsection (b) are fully paid;
the county council shall, subject to subsection (d), establish a tax rate
under this section by ordinance such that the revenue from the tax
does not exceed the costs of operating and maintaining the jail
facilities described in subsection (b)(1)(A). The tax rate may not be
imposed at a rate greater than is necessary to carry out the purposes
described in subsections (b) and (c), as applicable.
(f) An ordinance adopted under this section before August 1 in a
year applies to the imposition of county income taxes after
September 30 in that year. An ordinance adopted under this section
after July 31 of a year initially applies to the imposition of county
option income taxes after September 30 of the immediately following
year.
(g) The tax imposed under this section may be imposed only until
the latest of the following:
(1) The date on which the financing, construction, acquisition,
improvement, renovation, and equipping described in
subsection (b) are completed.
(2) The date on which the last of any bonds issued or leases
entered into to finance the construction, acquisition,
improvement, renovation, and equipping described in
subsection (b) are fully paid.
(3) The date on which an ordinance adopted under subsection
(c) is rescinded.
(h) The term of the bonds issued (including any refunding bonds)
or a lease entered into under subsection (b)(2) may not exceed twenty
(20) years.
(i) The county treasurer shall establish a criminal justice facilities
revenue fund to be used only for purposes described in this section.
County adjusted gross income tax revenues derived from the tax rate
imposed under this section shall be deposited in the criminal justice
facilities revenue fund before making a certified distribution under
section 11 of this chapter.
(j) County adjusted gross income tax revenues derived from the
tax rate imposed under this section:
(1) may be used only for the purposes described in this section;
(2) may not be considered by the department of local
government finance in determining the county's maximum
permissible property tax levy limit under IC 6-1.1-18.5; and
(3) may be pledged to the repayment of bonds issued or leases
entered into for any or all the purposes described in subsection
(b).
(k) Notwithstanding any other law, money remaining in the
criminal justice facilities revenue fund established under subsection
(i) after the tax imposed by this section is terminated under
subsection (g) shall be transferred to the county highway fund to be
used for construction, resurfacing, restoration, and rehabilitation of
county highways, roads, and bridges.
As added by P.L.162-2006, SEC.28. Amended by P.L.1-2007,
SEC.59; P.L.224-2007, SEC.55.
IC 6-3.5-1.1-2.5
Additional tax for jail and juvenile detention center in county with
population between 41,000 and 43,000
Sec. 2.5. (a) This section applies only to a county having a
population of more than forty-one thousand (41,000) but less than
forty-three thousand (43,000).
(b) As used in this section, "fiscal year" means a twelve (12)
month period beginning July 1 and ending June 30.
(c) The county council of a county described in subsection (a)
may, by ordinance, determine that additional county adjusted gross
income tax revenue is needed in the county to fund the operation and
maintenance of a jail and juvenile detention center opened after July
1, 1998.
(d) Notwithstanding section 2 of this chapter, if the county
council adopts an ordinance under subsection (c), the county council
may impose the county adjusted gross income tax at a rate of one and
one-tenth percent (1.1%) on adjusted gross income for fiscal years
beginning before July 1, 2011. For fiscal years beginning after June
30, 2011, the rate is reduced to one percent (1%). If the county
council imposes the county adjusted gross income tax at a rate of one
and one-tenth percent (1.1%), the county council may decrease the
rate or rescind the tax in the manner provided under this chapter.
(e) If a county imposes the county adjusted gross income tax at a
rate of one and one-tenth percent (1.1%) under this section, the
revenue derived from a tax rate of one-tenth percent (0.1%) on
adjusted gross income:
(1) shall be paid to the county treasurer;
(2) may be used only to pay the costs of operating a jail and
juvenile detention center opened after July 1, 1998; and
(3) may not be considered by the department of local
government finance in determining the county's maximum
permissible property tax levy limit under IC 6-1.1-18.5.
As added by P.L.119-1998, SEC.7. Amended by P.L.89-2001, SEC.3;
P.L.90-2002, SEC.289; P.L.184-2006, SEC.5.
IC 6-3.5-1.1-2.6
Parke County; additional tax rate for capital trial expenses
Sec. 2.6. (a) This section applies to Parke County.
(b) The county council may, by ordinance, determine that
additional county adjusted gross income tax revenue is needed in the
county to:
(1) fund the costs (including pre-trial costs) of a capital trial that
has been moved to another county for trial; and
(2) to repay money borrowed for the purpose described in
subdivision (1).
(c) In addition to the rates permitted by section 2 of this chapter,
if the county council makes a determination described in subsection
(b), the county council may by ordinance impose the county adjusted
gross income tax at a rate not to exceed the lesser of:
(1) a rate necessary to carry out the purposes of subsection (b);
or
(2) twenty-five hundredths percent (0.25%);
on the adjusted gross income of county taxpayers.
(d) The tax imposed under this section may be imposed only until
the later of the following:
(1) The date on which the costs described in subsection (b),
including the repayment of money borrowed for the purposes
described in subsection (b), are fully paid.
(2) The date on which an ordinance adopted under subsection
(c) is rescinded.
(e) The term of any borrowing described in subsection (b)(2) may
not exceed three (3) years.
(f) The county treasurer shall establish a capital trial revenue fund
to be used only for purposes described in this section. County
adjusted gross income tax revenues derived from the tax rate
imposed under this section shall be deposited in the capital trial
revenue fund before making a certified distribution under section 11
of this chapter.
(g) County adjusted gross income tax revenues derived from the
tax rate imposed under this section:
(1) may be used only for the purposes described in this section;
(2) may not be considered by the department of local
government finance in determining the county's maximum
permissible property tax levy limit under IC 6-1.1-18.5; and
(3) may be pledged for the payment of costs described in
subsection (b).
(h) Notwithstanding any other law, money remaining in the
capital trial revenue fund established under subsection (f) after the
tax imposed by this section is terminated under subsection (d) shall
be transferred to the county general fund to be used for criminal
justice costs.
As added by P.L.224-2007, SEC.56.
IC 6-3.5-1.1-2.7
Additional county adjusted gross income tax in county with
population between 71,000 and 71,400
Sec. 2.7. (a) This section applies to a county having a population
of more than seventy-one thousand (71,000) but less than
seventy-one thousand four hundred (71,400).
(b) The county council may, by ordinance, determine that
additional county adjusted gross income tax revenue is needed in the
county to:
(1) finance, construct, acquire, improve, renovate, or equip the
county jail and related buildings and parking facilities,
including costs related to the demolition of existing buildings
and the acquisition of land; and
(2) repay bonds issued, or leases entered into, for constructing,
acquiring, improving, renovating, and equipping the county jail
and related buildings and parking facilities, including costs
related to the demolition of existing buildings and the
acquisition of land.
(c) In addition to the rates permitted by section 2 of this chapter,
the county council may impose the county adjusted gross income tax
at a rate of:
(1) fifteen-hundredths percent (0.15%);
(2) two-tenths percent (0.2%); or
(3) twenty-five hundredths percent (0.25%);
on the adjusted gross income of county taxpayers if the county
council makes the finding and determination set forth in subsection
(b). The tax imposed under this section may be imposed only until
the later of the date on which the financing on, acquisition,
improvement, renovation, and equipping described in subsection (b)
is completed or the date on which the last of any bonds issued or
leases entered into to finance the construction, acquisition,
improvement, renovation, and equipping described in subsection (b)
are fully paid. The term of the bonds issued (including any refunding
bonds) or a lease entered into under subsection (b)(2) may not
exceed twenty (20) years.
(d) If the county council makes a determination under subsection
(b), the county council may adopt a tax rate under subsection (c). The
tax rate may not be imposed at a rate greater than is necessary to pay
the costs of financing, acquiring, improving, renovating, and
equipping the county jail and related buildings and parking facilities,
including costs related to the demolition of existing buildings and the
acquisition of land.
(e) The county treasurer shall establish a county jail revenue fund
to be used only for purposes described in this section. County
adjusted gross income tax revenues derived from the tax rate
imposed under this section shall be deposited in the county jail
revenue fund before making a certified distribution under section 11
of this chapter.
(f) County adjusted gross income tax revenues derived from the
tax rate imposed under this section:
(1) may only be used for the purposes described in this section;
(2) may not be considered by the department of local
government finance in determining the county's maximum
permissible property tax levy limit under IC 6-1.1-18.5; and
(3) may be pledged to the repayment of bonds issued, or leases
entered into, for purposes described in subsection (b).
(g) A county described in subsection (a) possesses unique
economic development challenges due to underemployment in
relation to similarly situated counties. Maintaining low property tax
rates is essential to economic development and the use of county
adjusted gross income tax revenues as provided in this chapter to pay
any bonds issued or leases entered into to finance the construction,
acquisition, improvement, renovation, and equipping described under
subsection (b), rather than use of property taxes, promotes that
purpose.
(h) Notwithstanding any other law, funds accumulated from the
county adjusted gross income tax imposed under this section after:
(1) the redemption of bonds issued; or
(2) the final payment of lease rentals due under a lease entered
into under this section;
shall be transferred to the county highway fund to be used for
construction, resurfacing, restoration, and rehabilitation of county
highways, roads, and bridges.
As added by P.L.135-2001, SEC.2. Amended by P.L.1-2002, SEC.33
and P.L.90-2002, SEC.290.
IC 6-3.5-1.1-2.8
Additional rate for criminal justice facilities; fund; use of
additional revenue; balance transfer to county highway fund
Sec. 2.8. (a) This section applies to:
(1) a county having a population of more than one hundred
eighty-two thousand seven hundred ninety (182,790) but less
than two hundred thousand (200,000); and
(2) a county having a population of more than forty-five
thousand (45,000) but less than forty-five thousand nine
hundred (45,900).
(b) The county council may, by ordinance, determine that
additional county adjusted gross income tax revenue is needed in the
county to:
(1) finance, construct, acquire, improve, renovate, or equip:
(A) jail facilities;
(B) juvenile court, detention, and probation facilities;
(C) other criminal justice facilities; and
(D) related buildings and parking facilities;
located in the county, including costs related to the demolition
of existing buildings and the acquisition of land; and
(2) repay bonds issued or leases entered into for the purposes
described in subdivision (1).
(c) The county council may, by ordinance, determine that
additional county adjusted gross income tax revenue is needed in the
county to operate or maintain:
(1) jail facilities;
(2) juvenile court, detention, and probation facilities;
(3) other criminal justice facilities; and
(4) related buildings and parking facilities;
located in the county. A county council of a county described in
subsection (a)(1) or (a)(2) may make a determination under both this
subsection and subsection (b).
(d) In addition to the rates permitted by section 2 of this chapter,
the county council may impose the county adjusted gross income tax
at a rate of:
(1) fifteen-hundredths percent (0.15%);
(2) two-tenths percent (0.2%); or
(3) twenty-five hundredths percent (0.25%);
on the adjusted gross income of county taxpayers if the county
council makes a finding and determination set forth in subsection (b)
or (c). The tax rate may not be imposed at a rate greater than is
necessary to carry out the purposes described in subsections (b) and
(c), as applicable.
(e) This subsection applies only to a county described in
subsection (a)(1). If the county council imposes the tax under this
section to pay for the purposes described in both subsections (b) and
(c), when:
(1) the financing, construction, acquisition, improvement,
renovation, and equipping described in subsection (b) are
completed; and
(2) all bonds issued (including any refunding bonds) or leases
entered into to finance the construction, acquisition,
improvement, renovation, and equipping described in
subsection (b) are fully paid;
the county council shall, subject to subsection (d), establish a tax rate
under this section by ordinance such that the revenue from the tax
does not exceed the costs of operating and maintaining the jail
facilities referred to in subsection (b)(1)(A).
(f) The tax imposed under this section may be imposed only until
the last of the following dates:
(1) The date on which the financing, construction, acquisition,
improvement, renovation, and equipping described in
subsection (b) are completed.
(2) The date on which the last of any bonds issued (including
any refunding bonds) or leases entered into to finance the
construction, acquisition, improvement, renovation, and
equipping described in subsection (b) are fully paid.
(3) If the county imposing the tax under this section is a county
described in subsection (a)(1), the date on which an ordinance
adopted under subsection (c) is rescinded.
(g) The term of the bonds issued (including any refunding bonds)
or a lease entered into under subsection (b)(2) may not exceed twenty
(20) years.
(h) The county treasurer shall establish a criminal justice facilities
revenue fund to be used only for purposes described in this section.
County adjusted gross income tax revenues derived from the tax rate
imposed under this section shall be deposited in the criminal justice
facilities revenue fund before making a certified distribution under
section 11 of this chapter.
(i) County adjusted gross income tax revenues derived from the
tax rate imposed under this section:
(1) may be used only for the purposes described in this section;
(2) may not be considered by the department of local
government finance in determining the county's maximum
permissible property tax levy limit under IC 6-1.1-18.5; and
(3) may be pledged to the repayment of bonds issued or leases
entered into for any or all the purposes described in subsection
(b).
(j) Notwithstanding any other law, money remaining in the
criminal justice facilities revenue fund established under subsection
(h) after the tax imposed by this section is terminated under
subsection (f) shall be transferred to the county highway fund to be
used for construction, resurfacing, restoration, and rehabilitation of
county highways, roads, and bridges.
As added by P.L.178-2002, SEC.53. Amended by P.L.147-2006,
SEC.1.
IC 6-3.5-1.1-2.9
Additional rate for county jail facilities; fund; use of additional
revenue; balance transfer to county highway fund
Sec. 2.9. (a) This section applies to a county having a population
of more than twenty-nine thousand (29,000) but less than thirty
thousand (30,000).
(b) The county council may, by ordinance, determine that
additional county adjusted gross income tax revenue is needed in the
county to:
(1) finance, construct, acquire, improve, renovate, remodel, or
equip the county jail and related buildings and parking
facilities, including costs related to the demolition of existing
buildings, the acquisition of land, and any other reasonably
related costs; and
(2) repay bonds issued or leases entered into for constructing,
acquiring, improving, renovating, remodeling, and equipping
the county jail and related buildings and parking facilities,
including costs related to the demolition of existing buildings,
the acquisition of land, and any other reasonably related costs.
(c) In addition to the rates permitted by section 2 of this chapter,
the county council may impose the county adjusted gross income tax
at a rate of:
(1) fifteen-hundredths percent (0.15%);
(2) two-tenths percent (0.2%); or
(3) twenty-five hundredths percent (0.25%);
on the adjusted gross income of county taxpayers if the county
council makes the finding and determination set forth in subsection
(b). The tax imposed under this section may be imposed only until
the later of the date on which the financing on, acquisition,
improvement, renovation, remodeling, and equipping described in
subsection (b) are completed or the date on which the last of any
bonds issued or leases entered into to finance the construction,
acquisition, improvement, renovation, remodeling, and equipping
described in subsection (b) are fully paid. The term of the bonds
issued (including any refunding bonds) or a lease entered into under
subsection (b)(2) may not exceed twenty-five (25) years.
(d) If the county council makes a determination under subsection
(b), the county council may adopt a tax rate under subsection (c). The
tax rate may not be imposed at a rate greater than is necessary to pay
the costs of financing, acquiring, improving, renovating, remodeling,
and equipping the county jail and related buildings and parking
facilities, including costs related to the demolition of existing
buildings, the acquisition of land, and any other reasonably related
costs.
(e) The county treasurer shall establish a county jail revenue fund
to be used only for purposes described in this section. County
adjusted gross income tax revenues derived from the tax rate
imposed under this section shall be deposited in the county jail
revenue fund before making a certified distribution under section 11
of this chapter.
(f) County adjusted gross income tax revenues derived from the
tax rate imposed under this section:
(1) may be used only for the purposes described in this section;
(2) may not be considered by the department of local
government finance in determining the county's maximum
permissible property tax levy limit under IC 6-1.1-18.5; and
(3) may be pledged to the repayment of bonds issued or leases
entered into for purposes described in subsection (b).
(g) A county described in subsection (a) possesses unique
governmental and economic development challenges due to:
(1) underemployment in relation to similarly situated counties
and the loss of a major manufacturing business;
(2) an increase in property taxes for taxable years after
December 31, 2000, for the construction of a new elementary
school; and
(3) overcrowding of the county jail, the costs associated with
housing the county's inmates outside the county, and the
potential unavailability of additional housing for inmates
outside the county.
The use of county adjusted gross income tax revenues as provided in
this chapter is necessary for the county to provide adequate jail
capacity in the county and to maintain low property tax rates
essential to economic development. The use of county adjusted gross
income tax revenues as provided in this chapter to pay any bonds
issued or leases entered into to finance the construction, acquisition,
improvement, renovation, remodeling, and equipping described in
subsection (b), rather than the use of property taxes, promotes those
purposes.
(h) Notwithstanding any other law, funds accumulated from the
county adjusted gross income tax imposed under this section after:
(1) the redemption of bonds issued; or
(2) the final payment of lease rentals due under a lease entered
into under this section;
shall be transferred to the county highway fund to be used for
construction, resurfacing, restoration, and rehabilitation of county
highways, roads, and bridges.
As added by P.L.178-2002, SEC.54. Amended by P.L.1-2003,
SEC.39.
IC 6-3.5-1.1-3
Increase of tax rate; ordinance; requisites
Sec. 3. (a) The county council may increase the county adjusted
gross income tax rate imposed upon the resident county taxpayers of
the county. To increase the rate, the county council must, after March
31 but before August 1 of a year, adopt an ordinance. The ordinance
must substantially state the following:
"The ________ County Council increases the county adjusted
gross income tax rate imposed upon the resident county
taxpayers of the county from ________ percent (___%) to
_______ percent (___%). This tax rate increase takes effect
October 1 of this year.".
(b) Any ordinance adopted under this section takes effect October
1 of the year the ordinance is adopted.
(c) The auditor of a county shall record all votes taken on
ordinances presented for a vote under the authority of this section
and immediately send a certified copy of the results to the
department by certified mail.
As added by P.L.73-1983, SEC.2. Amended by P.L.35-1990, SEC.13;
P.L.224-2007, SEC.57.
IC 6-3.5-1.1-3.1
Decrease in county adjusted gross income tax rate; adoption of
ordinance; procedures
Sec. 3.1. (a) The county council may decrease the county adjusted
gross income tax rate imposed upon the resident county taxpayers of
the county. To decrease the rate, the county council must, after
March 31 but before August 1 of a year, adopt an ordinance. The
ordinance must substantially state the following:
"The ________ County Council decreases the county adjusted
gross income tax rate imposed upon the resident county
taxpayers of the county from _____ percent (___%) to _____
percent (___%). This tax rate decrease takes effect October 1 of
this year.".
(b) A county council may not decrease the county adjusted gross
income tax rate if the county or any commission, board, department,
or authority that is authorized by statute to pledge the county
adjusted gross income tax has pledged the county adjusted gross
income tax for any purpose permitted by IC 5-1-14 or any other
statute.
(c) Any ordinance adopted under this section takes effect October
1 of the year the ordinance is adopted.
(d) The auditor of a county shall record all votes taken on
ordinances presented for a vote under the authority of this section
and immediately send a certified copy of the results to the
department by certified mail.
(e) Notwithstanding IC 6-3.5-7, and except as provided in
subsection (f), a county council that decreases the county adjusted
gross income tax rate in a year may not in the same year adopt or
increase the county economic development income tax under
IC 6-3.5-7.
(f) This subsection applies only to a county having a population
of more than one hundred ten thousand (110,000) but less than one
hundred fifteen thousand (115,000). The county council may adopt
or increase the county economic development income tax rate under
IC 6-3.5-7 in the same year that the county council decreases the
county adjusted gross income tax rate if the county economic
development income tax rate plus the county adjusted gross income
tax rate in effect after the county council decreases the county
adjusted gross income tax rate is less than the county adjusted gross
income tax rate in effect before the adoption of an ordinance under
this section decreasing the rate of the county adjusted gross income
tax.
As added by P.L.42-1994, SEC.2. Amended by P.L.10-1997, SEC.13;
P.L.170-2002, SEC.26; P.L.224-2007, SEC.58.
IC 6-3.5-1.1-3.3
Additional rate for jail facilities in county subject to federal court
order; use of additional revenues
Sec. 3.3. (a) This section applies only to a county that:
(1) operates a county jail that is subject to an order that:
(A) was issued by a federal district court before January 1,
2003; and
(B) has not been terminated;
(2) operates a county jail that fails to meet:
(A) American Correctional Association Jail Construction
Standards; and
(B) Indiana jail operation standards adopted by the
department of correction; and
(3) has insufficient revenue to finance the construction,
acquisition, improvement, renovation, and equipping of a
county jail and related buildings and parking facilities.
(b) For purposes of this section, "county jail" includes any other
penal facility that is:
(1) located in; and
(2) operated by;
the county.
(c) The county council may, by ordinance, determine that
additional county adjusted gross income tax revenue is needed in the
county to:
(1) finance, construct, acquire, improve, renovate, or equip a
county jail and related buildings and parking facilities,
including costs related to the demolition of existing buildings
and the acquisition of land; and
(2) repay bonds issued or leases entered into for constructing,
acquiring, improving, renovating, and equipping the county jail
and related buildings and parking facilities, including costs
related to the demolition of existing buildings and the
acquisition of land.
(d) In addition to the rates permitted by section 2 of this chapter,
the county council may impose the county adjusted gross income tax
at a rate of twenty-five hundredths percent (0.25%) on the adjusted
gross income of county taxpayers if the county council makes the
finding and determination set forth in subsection (c). The tax
imposed under this section may be imposed only until the later of the
date on which the financing on acquisition, improvement, renovation,
and equipping described in subsection (c) is completed or the date on
which the last of any bonds issued or leases entered into to finance
the construction, acquisition, improvement, renovation, and
equipping described in subsection (c) are fully paid. The term of the
bonds issued (including any refunding bonds) or a lease entered into
under subsection (c)(2) may not exceed thirty (30) years.
(e) If the county council makes a determination under subsection
(c), the county council may adopt a tax rate under subsection (d). The
tax rate may not be imposed at a rate greater than is necessary to pay
the costs of financing, acquiring, improving, renovating, and
equipping the county jail and related buildings and parking facilities,
including costs related to the demolition of existing buildings and the
acquisition of land.
(f) The county treasurer shall establish a county jail revenue fund
to be used only for purposes described in this section. County
adjusted gross income tax revenues derived from the tax rate
imposed under this section shall be deposited in the county jail
revenue fund before making a certified distribution under section 11
of this chapter.
(g) County adjusted gross income tax revenues derived from the
tax rate imposed under this section:
(1) may only be used for purposes described in this section;
(2) may not be considered by the department of local
government finance in determining the county's maximum
permissible property tax levy limit under IC 6-1.1-18.5; and
(3) may be pledged to the repayment of bonds issued or leases
entered into for purposes described in subsection (c).
(h) A county described in subsection (a) possesses unique
economic development challenges due to underemployment in
relation to similarly situated counties. Maintaining low property tax
rates is essential to economic development. The use of county
adjusted gross income tax revenues as provided in this chapter, rather
than use of property taxes, to pay any bonds issued or leases entered
into to finance the construction, acquisition, improvement,
renovation, and equipping described in subsection (c) promotes that
purpose.
(i) Notwithstanding any other law, funds accumulated from the
county adjusted gross income tax imposed under this section after:
(1) the redemption of bonds issued; or
(2) the final payment of lease rentals due under a lease entered
into under this section;
shall be transferred to the county general fund.
As added by P.L.42-2003, SEC.2.
IC 6-3.5-1.1-3.5
Additional tax for jail and justice center in county with population
between 13,500 and 14,000
Sec. 3.5. (a) This section applies only to a county having a
population of more than thirteen thousand five hundred (13,500) but
less than fourteen thousand (14,000).
(b) The county council of a county described in subsection (a)
may, by ordinance, determine that additional county adjusted gross
income tax revenue is needed in the county to fund the operation and
maintenance of a jail and justice center.
(c) Notwithstanding section 2 of this chapter, if the county council
adopts an ordinance under subsection (b), the county council may
impose the county adjusted gross income tax at a rate of one and
three-tenths percent (1.3%) on adjusted gross income. However, a
county may impose the county adjusted gross income tax at a rate of
one and three-tenths percent (1.3%) for only eight (8) years. After the
county has imposed the county adjusted gross income tax at a rate of
one and three-tenths percent (1.3%) for eight (8) years, the rate is
reduced to one percent (1%). If the county council imposes the
county adjusted gross income tax at a rate of one and three-tenths
percent (1.3%), the county council may decrease the rate or rescind
the tax in the manner provided under this chapter.
(d) If a county imposes the county adjusted gross income tax at a
rate of one and three-tenths percent (1.3%) under this section, the
revenue derived from a tax rate of three-tenths percent (0.3%) on
adjusted gross income:
(1) shall be paid to the county treasurer;
(2) may be used only to pay the costs of operating and
maintaining a jail and justice center; and
(3) may not be considered by the department of local
government finance under any provision of IC 6-1.1-18.5,
including the determination of the county's maximum
permissible property tax levy.
As added by P.L.119-1998, SEC.8. Amended by P.L.89-2001, SEC.4;
P.L.90-2002, SEC.291; P.L.224-2007, SEC.59.
IC 6-3.5-1.1-3.6
Additional rate for county courthouse; fund; use of additional
revenue; balance transfer to county highway fund
Sec. 3.6. (a) This section applies only to a county having a
population of more than six thousand (6,000) but less than eight
thousand (8,000).
(b) The county council may, by ordinance, determine that
additional county adjusted gross income tax revenue is needed in the
county to:
(1) finance, construct, acquire, improve, renovate, or equip the
county courthouse; and
(2) repay bonds issued, or leases entered into, for constructing,
acquiring, improving, renovating, and equipping the county
courthouse.
(c) In addition to the rates permitted under section 2 of this
chapter, the county council may impose the county adjusted gross
income tax at a rate of twenty-five hundredths percent (0.25%) on
the adjusted gross income of county taxpayers if the county council
makes the finding and determination set forth in subsection (b). The
tax imposed under this section may be imposed only until the later of
the date on which the financing on, acquisition, improvement,
renovation, and equipping described in subsection (b) is completed
or the date on which the last of any bonds issued or leases entered
into to finance the construction, acquisition, improvement,
renovation, and equipping described in subsection (b) are fully paid.
The term of the bonds issued (including any refunding bonds) or a
lease entered into under subsection (b)(2) may not exceed
twenty-two (22) years.
(d) If the county council makes a determination under subsection
(b), the county council may adopt a tax rate under subsection (c). The
tax rate may not be imposed for a time greater than is necessary to
pay the costs of financing, constructing, acquiring, renovating, and
equipping the county courthouse.
(e) The county treasurer shall establish a county courthouse
revenue fund to be used only for purposes described in this section.
County adjusted gross income tax revenues derived from the tax rate
imposed under this section shall be deposited in the county
courthouse revenue fund before a certified distribution is made under
section 11 of this chapter.
(f) County adjusted gross income tax revenues derived from the
tax rate imposed under this section:
(1) may only be used for the purposes described in this section;
(2) may not be considered by the department of local
government finance in determining the county's maximum
permissible property tax levy under IC 6-1.1-18.5; and
(3) may be pledged to the repayment of bonds issued or leases
entered into for purposes described in subsection (b).
(g) A county described in subsection (a) possesses unique
economic development challenges due to:
(1) the county's heavy agricultural base;
(2) the presence of a large amount of state owned property in
the county that is exempt from property taxation; and
(3) recent obligations of the school corporation in the county
that have already increased property taxes in the county and
imposed additional property tax burdens on the county's
agricultural base.
Maintaining low property tax rates is essential to economic
development. The use of county adjusted gross income tax revenues
as provided in this chapter to pay any bonds issued or leases entered
into to finance the construction, acquisition, improvement,
renovation, and equipping described in subsection (b), rather than the
use of property taxes, promotes that purpose.
(h) Notwithstanding any other law, funds accumulated from the
county adjusted gross income tax imposed under this section after:
(1) the redemption of the bonds issued; or
(2) the final payment of lease rentals due under a lease entered
into under this section;
shall be transferred to the county highway fund to be used for
construction, resurfacing, restoration, and rehabilitation of county
highways, roads, and bridges.
As added by P.L.178-2002, SEC.55. Amended by P.L.1-2003,
SEC.40; P.L.97-2004, SEC.29.
IC 6-3.5-1.1-4
Duration of tax; rescission of tax; ordinance
Sec. 4. (a) The county adjusted gross income tax imposed by a
county council under this chapter remains in effect until rescinded.
(b) Except as provided in subsection (e), the county council may
rescind the county adjusted gross income tax by adopting an
ordinance to rescind the tax after March 31 but before August 1 of
a year.
(c) Any ordinance adopted under this section takes effect October
1 of the year the ordinance is adopted.
(d) The auditor of a county shall record all votes taken on
ordinances presented for a vote under the authority of this section
and immediately send a certified copy of the results to the
department by certified mail.
(e) A county council may not rescind the county adjusted gross
income tax or take any action that would result in a civil taxing unit
in the county having a smaller certified share than the certified share
to which the civil taxing unit was entitled when the civil taxing unit
pledged county adjusted gross income tax if the civil taxing unit or
any commission, board, department, or authority that is authorized
by statute to pledge county adjusted gross income tax has pledged
county adjusted gross income tax for any purpose permitted by
IC 5-1-14 or any other statute. The prohibition in this section does
not apply if the civil taxing unit pledges legally available revenues
to fully replace the civil taxing unit's certified share that has been
pledged.
As added by P.L.73-1983, SEC.2. Amended by P.L.35-1990, SEC.14;
P.L.224-2007, SEC.60.
IC 6-3.5-1.1-5
Tax in effect part of year; computation
Sec. 5. (a) Except as provided in subsections (b) through (c), if the
county adjusted gross income tax is not in effect during a county
taxpayer's entire taxable year, then the amount of county adjusted
gross income tax that the county taxpayer owes for that taxable year
equals the product of:
(1) the amount of county adjusted gross income tax the county
taxpayer would owe if the tax had been imposed during the
county taxpayer's entire taxable year; multiplied by
(2) a fraction:
(A) The numerator of the fraction equals the number of days
during the county taxpayer's taxable year during which the
county adjusted gross income tax was in effect.
(B) The denominator of the fraction equals the total number
of days in the county taxpayer's taxable year.
(b) If a county taxpayer:
(1) is unemployed for a part of the taxpayer's taxable year;
(2) was not discharged for just cause (as defined in
IC 22-4-15-1(e)); and
(3) has no earned income for the part of the taxpayer's taxable
year that the tax was in effect;
the county taxpayer's adjusted gross income for the taxable year is
reduced by the amount of the taxpayer's earned income for the
taxable year.
(c) A taxpayer who qualifies under subsection (b) must file a
claim for a refund for the difference between the county adjusted
gross income tax owed, as determined under subsection (a), and the
tax owed, as determined under subsection (b). A claim for a refund
must be on a form approved by the department and include all
supporting documentation reasonably required by the department.
As added by P.L.73-1983, SEC.2. Amended by P.L.96-1987, SEC.1.
IC 6-3.5-1.1-6
Credit for taxes imposed by governmental entities outside Indiana
Sec. 6. (a) Except as provided in subsection (b), if for a particular
taxable year a county taxpayer is liable for an income tax imposed by
a county, city, town, or other local governmental entity located
outside of Indiana, that county taxpayer is entitled to a cr