CHAPTER 7. COUNTY ECONOMIC DEVELOPMENT INCOME TAX
IC 6-3.5-7
Chapter 7. County Economic Development Income Tax
IC 6-3.5-7-1
"Adjusted gross income" defined
Sec. 1. (a) Except as otherwise provided in this section, as used in
this chapter, "adjusted gross income" has the meaning set forth in
IC 6-3-1-3.5(a).
(b) In the case of a county taxpayer who is not a resident of a
county that has imposed the county economic development income
tax, the term "adjusted gross income" includes only adjusted gross
income derived from the taxpayer's principal place of business or
employment.
(c) In the case of a county taxpayer who is a resident of a county
having a population of more than eighteen thousand three hundred
(18,300) but less than nineteen thousand three hundred (19,300), the
term "adjusted gross income" does not include adjusted gross income
that is:
(1) earned in a county that is:
(A) located in another state; and
(B) adjacent to the county in which the taxpayer resides; and
(2) subject to an income tax imposed by a county, city, town, or
other local governmental entity in the other state.
As added by P.L.380-1987(ss), SEC.6. Amended by P.L.66-1991,
SEC.1; P.L.12-1992, SEC.29; P.L.170-2002, SEC.28.
IC 6-3.5-7-1.5
"Capital project" defined
Sec. 1.5. As used in this chapter, "capital project" includes
substance removal or remedial action in a designated unit.
As added by P.L.44-1994, SEC.1.
IC 6-3.5-7-2
"County council" defined
Sec. 2. As used in this chapter, "county council" includes the
city-county council of a consolidated city.
As added by P.L.380-1987(ss), SEC.6.
IC 6-3.5-7-3
"County taxpayer" defined
Sec. 3. As used in this chapter, "county taxpayer" as it relates to
a county for a year means any individual who:
(1) resides in that county on the date specified in section 17 of
this chapter; or
(2) maintains a principal place of business or employment in
that county on the date specified in section 17 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.
As added by P.L.380-1987(ss), SEC.6. Amended by P.L.22-1988,
SEC.6.
IC 6-3.5-7-4
"Department" defined
Sec. 4. As used in the chapter, "department" refers to the
department of state revenue.
As added by P.L.380-1987(ss), SEC.6.
IC 6-3.5-7-4.3
"Designated unit" defined
Sec. 4.3. As used in this chapter, "designated unit" refers 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).
As added by P.L.44-1994, SEC.2. Amended by P.L.170-2002,
SEC.29.
IC 6-3.5-7-4.6
"Remedial action" defined
Sec. 4.6. As used in this chapter, "remedial action" has the
meaning set forth in IC 13-11-2-185.
As added by P.L.44-1994, SEC.3. Amended by P.L.1-1996, SEC.49.
IC 6-3.5-7-4.7
"Removal" defined
Sec. 4.7. As used in this chapter, "removal" has the meaning set
forth in IC 13-11-2-187.
As added by P.L.44-1994, SEC.4. Amended by P.L.1-1996, SEC.50.
IC 6-3.5-7-4.8
"Substance" defined
Sec. 4.8. As used in this chapter, "substance" has the meaning set
forth in IC 13-11-2-98 for "hazardous substance".
As added by P.L.44-1994, SEC.5. Amended by P.L.1-1996, SEC.51.
IC 6-3.5-7-4.9
Time within which to adopt ordinance; effective date of ordinances
Sec. 4.9. (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.66.
IC 6-3.5-7-5
Imposition of tax; procedures; rate of tax; ordinance; effective
date; vote
Sec. 5. (a) Except as provided in subsection (c), the county
economic development income tax may be imposed on the adjusted
gross income of county taxpayers. The entity that may impose the tax
is:
(1) the county income tax council (as defined in IC 6-3.5-6-1)
if the county option income tax is in effect on March 31 of the
year the county economic development income tax is imposed;
(2) the county council if the county adjusted gross income tax
is in effect on March 31 of the year the county economic
development tax is imposed; or
(3) the county income tax council or the county council,
whichever acts first, for a county not covered by subdivision (1)
or (2).
To impose the county economic development income tax, a county
income tax council shall use the procedures set forth in IC 6-3.5-6
concerning the imposition of the county option income tax.
(b) Except as provided in subsections (c), (g), (k), (p), and (r) and
section 28 of this chapter, 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), (s), (v), (w), (x), or (y), 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), (u), (w), (x), or (y), 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 March 31
but before 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 October 1 of this year.".
(e) Any ordinance adopted under this chapter takes effect October
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%);
(B) two-tenths percent (0.2%); or
(C) 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 income tax council makes a determination to impose
rates under this subsection and section 22 of this chapter.
(h) For a county having a population of more than forty-one
thousand (41,000) but less than forty-three thousand (43,000), 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
thirty-five hundredths percent (1.35%) if the county has imposed the
county adjusted gross income tax at a rate of one and one-tenth
percent (1.1%) under IC 6-3.5-1.1-2.5.
(i) For a county having a population of more than thirteen
thousand five hundred (13,500) but less than fourteen thousand
(14,000), 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 fifty-five hundredths percent (1.55%).
(j) For a county having a population of more than seventy-one
thousand (71,000) but less than seventy-one thousand four hundred
(71,400), 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%).
(k) This subsection applies to a county having a population of
more than twenty-seven thousand four hundred (27,400) but less than
twenty-seven thousand five hundred (27,500). 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 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 council makes a determination to impose rates under
this subsection and section 22.5 of this chapter.
(l) For a county having a population of more than twenty-nine
thousand (29,000) but less than thirty thousand (30,000), 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%).
(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 before
January 1, 2009, or IC 6-1.1-12-37 after December 31, 2008) 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 or
from the exclusion in 2008 of inventory from the definition of
personal property in IC 6-1.1-1-11.
(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) An additional county economic development income tax rate
imposed under section 28 of this chapter may not be considered in
calculating any limit under this section on the sum of:
(1) the county economic development income tax rate plus the
county adjusted gross income tax rate; or
(2) the county economic development tax rate plus the county
option income tax rate.
(x) The income tax rate limits imposed by subsection (c) or (y) or
any other provision of this chapter 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) or (y) or any other provision of this chapter 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.
(y) 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%).
As added by P.L.380-1987(ss), SEC.6. Amended by P.L.35-1990,
SEC.20; P.L.28-1993, SEC.8; P.L.44-1994, SEC.6; P.L.99-1995,
SEC.1; P.L.119-1998, SEC.11; P.L.135-2001, SEC.6; P.L.291-2001,
SEC.179; P.L.185-2001, SEC.3; P.L.1-2002, SEC.34; P.L.178-2002,
SEC.68; P.L.192-2002(ss), SEC.121; P.L.42-2003, SEC.5;
P.L.224-2003, SEC.254; P.L.97-2004, SEC.31; P.L.214-2005,
SEC.20; P.L.162-2006, SEC.33; P.L.184-2006, SEC.8; P.L.1-2007,
SEC.65; P.L.224-2007, SEC.87; P.L.232-2007, SEC.3; P.L.3-2008,
SEC.62; P.L.146-2008, SEC.344.
IC 6-3.5-7-6
Rate decrease or increase; limitations; ordinance; effective date;
vote
Sec. 6. (a) The body imposing the tax may decrease or increase
the county economic development income tax rate imposed upon the
county taxpayers as long as the resulting rate does not exceed the
rates specified in section 5(b) and 5(c) or 5(g) of this chapter. The
rate imposed under this section must be adopted at one (1) of the
rates specified in section 5(b) of this chapter. To decrease or increase
the rate, the appropriate body must, after March 31 but before August
1 of a year, adopt an ordinance. The ordinance must substantially
state the following:
"The ________ County __________ increases (decreases) the
county economic development income tax rate imposed upon
the county taxpayers of the county from _____ percent (___%)
to _____ percent (___%). This tax rate increase (decrease) 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.380-1987(ss), SEC.6. Amended by P.L.35-1990,
SEC.21; P.L.44-1994, SEC.7; P.L.99-1995, SEC.2; P.L.119-1998,
SEC.12; P.L.224-2007, SEC.88.
IC 6-3.5-7-7
Tax effective until rescission; rescinding ordinance; effective date;
vote
Sec. 7. (a) The county economic development income tax imposed
under this chapter remains in effect until rescinded.
(b) Subject to section 14 of this chapter, the body imposing the
county economic development income tax may rescind the 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.
As added by P.L.380-1987(ss), SEC.6. Amended by P.L.35-1990,
SEC.22; P.L.28-1997, SEC.19; P.L.224-2007, SEC.89.
IC 6-3.5-7-8
Tax effective for less than taxable year; calculation
Sec. 8. If the county economic development income tax is not in
effect during a county taxpayer's entire taxable year, then the amount
of county economic development income tax that the county taxpayer
owes for that taxable year equals the product of:
(1) the amount of county economic development income tax the
county taxpayer would owe if the tax had been imposed during
the county taxpayer's entire taxable year; multiplied by
(2) a fraction. The numerator of the fraction equals the number
of days during the county taxpayer's taxable year during which
the county economic development income tax was in effect.
The denominator of the fraction equals three hundred sixty-five
(365).
As added by P.L.380-1987(ss), SEC.6.
IC 6-3.5-7-9
Credit for the elderly or persons with a total disability;
computation
Sec. 9. (a) If for a taxable year a county taxpayer is (or a county
taxpayer and a county taxpayer's spouse who file a joint return are)
allowed a credit for the elderly or individuals with a total disability
under Section 22 of the Internal Revenue Code, the county taxpayer
is (or the county taxpayer and the county taxpayer's spouse are)
entitled to a credit against the county taxpayer's (or the county
taxpayer's and the county taxpayer's spouse's) county economic
development income tax liability for that same taxable year. The
amount of the credit equals the lesser of:
(1) the product of:
(A) the county taxpayer's (or the county taxpayer's and the
county taxpayer's spouse's) credit for the elderly or
individuals with a total disability for that same taxable year;
multiplied by
(B) a fraction. The numerator of the fraction is the county
economic development income tax rate imposed against the
county taxpayer (or against the county taxpayer and the
county taxpayer's spouse). The denominator of the fraction
is fifteen-hundredths (0.15); or
(2) the amount of county economic development income tax
imposed on the county taxpayer (or the county taxpayer and the
county taxpayer's spouse).
(b) If a county taxpayer and the county taxpayer's spouse file a
joint return and are subject to different county economic
development income tax rates for the same taxable year, they shall
compute the credit under this section by using the formula provided
by subsection (a), except that they shall use the average of the two
(2) county economic development income tax rates imposed against
them as the numerator referred to in subsection (a)(1)(B).
As added by P.L.380-1987(ss), SEC.6. Amended by P.L.63-1988,
SEC.11; P.L.99-2007, SEC.29.
IC 6-3.5-7-10
County economic development income tax special account
Sec. 10. (a) A special account within the state general fund shall
be established for each county adopting the county economic
development income tax. Any revenue derived from the imposition
of the county economic development income tax by a county shall be
credited to that county's account in the state general fund.
(b) Any income earned on money credited to an account under
subsection (a) becomes a part of that account.
(c) Any revenue credited to an account established under
subsection (a) at the end of a fiscal year may not be credited to any
other account in the state general fund.
As added by P.L.380-1987(ss), SEC.6.
IC 6-3.5-7-10.5
Annual report to county auditor
Sec. 10.5. Before October 2 of each year, the department shall
submit a report to each county auditor indicating the balance in the
county's special account as of the cutoff date set by the budget
agency.
As added by P.L.178-2002, SEC.69. Amended by P.L.267-2003,
SEC.12.
IC 6-3.5-7-11
Calculation of certified distribution; summary of calculation;
notice to county auditor
Sec. 11. (a) Revenue derived from the imposition of the county
economic development income tax shall, in the manner prescribed by
this section, be distributed to the county that imposed it.
(b) Before August 2 of each calendar year, the budget agency,
shall certify to the county auditor of each adopting county the sum of
the amount of county economic development income tax revenue that
the budget agency determines has been:
(1) received from that county for a taxable year ending before
the calendar year in which the determination is made; and
(2) reported on an annual return or amended return processed
by the department in the state fiscal year ending before July 1
of the calendar year in which the determination is made;
as adjusted for refunds of county economic development income tax
made in the state fiscal year plus the amount of interest in the
county's account that has been accrued and has not been included in
a certification made in a preceding year. The amount certified is the
county's certified distribution, which shall be distributed on the dates
specified in section 16 of this chapter for the following calendar
year.
(c) The amount certified under subsection (b) shall be adjusted
under subsections (d), (e), (f), (g), and (h). The budget agency shall
provide the county council with an informative summary of the
calculations used to determine the certified distribution. The
summary of calculations must include:
(1) the amount reported on individual income tax returns
processed by the department during the previous fiscal year;
(2) adjustments for over distributions in prior years;
(3) adjustments for clerical or mathematical errors in prior
years;
(4) adjustments for tax rate changes; and
(5) the amount of excess account balances to be distributed
under IC 6-3.5-7-17.3.
(d) The budget agency shall certify an amount less than the
amount determined under subsection (b) if the budget agency
determines that the reduced distribution is necessary to offset
overpayments made in a calendar year before the calendar year of the
distribution. The budget agency may reduce the amount of the
certified distribution over several calendar years so that any
overpayments are offset over several years rather than in one (1)
lump sum.
(e) The budget agency shall adjust the certified distribution of a
county to correct for any clerical or mathematical errors made in any
previous certification under this section. The budget agency may
reduce the amount of the certified distribution over several calendar
years so that any adjustment under this subsection is offset over
several years rather than in one (1) lump sum.
(f) The budget agency shall adjust the certified distribution of a
county to provide the county with the distribution required under
section 16(b) of this chapter.
(g) The budget agency shall adjust the certified distribution of a
county to provide the county with the amount of any tax increase
imposed under section 25 or 26 of this chapter to provide additional
homestead credits as provided in those provisions.
(h) This subsection applies to a county that imposes, increases,
decreases, or rescinds a tax or tax rate under this chapter before
November 1 in the same calendar year in which the budget agency
makes a certification under this section. The budget agency shall
adjust the certified distribution of a county to provide for a
distribution in the immediately following calendar year and in each
calendar year thereafter. The budget agency shall provide for a full
transition to certification of distributions as provided in subsection
(b)(1) through (b)(2) in the manner provided in subsection (d). If the
county imposes, increases, decreases, or rescinds a tax or tax rate
under this chapter after the date for which a certification under
subsection (b) is based, the budget agency shall adjust the certified
distribution of the county after August 1 of the calendar year. The
adjustment shall reflect any other adjustment authorized under
subsections (c), (d), (e), (f), and (g). The adjusted certification shall
be treated as the county's certified distribution for the immediately
succeeding calendar year. The budget agency shall certify the
adjusted certified distribution to the county auditor for the county
and provide the county council with an informative summary of the
calculations that revises the informative summary provided in
subsection (c) and reflects the changes made in the adjustment.
As added by P.L.380-1987(ss), SEC.6. Amended by P.L.267-2003,
SEC.13; P.L.207-2005, SEC.9; P.L.146-2008, SEC.345; P.L.1-2009,
SEC.54; P.L.182-2009(ss), SEC.228; P.L.113-2010, SEC.67.
IC 6-3.5-7-12
Certified distribution; amount; adoption of ordinance; exception;
fractional amounts
Sec. 12. (a) Except as provided in sections 23, 25, 26, 27, and 28
of this chapter, the county auditor shall distribute in the manner
specified in this section the certified distribution to the county.
(b) Except as provided in subsections (c) and (h) and sections 15
and 25 of this chapter, and subject to adjustment as provided in
IC 36-8-19-7.5, the amount of the certified distribution that the
county and each city or town in a county is entitled to receive during
May and November of each year equals the product of the following:
(1) The amount of the certified distribution for that month;
multiplied by
(2) A fraction. The numerator of the fraction equals the sum of:
(A) total property taxes that are first due and payable to the
county, city, or town during the calendar year in which the
month falls; plus
(B) for a county, the welfare allocation amount.
The denominator of the fraction equals the sum of the total
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 the welfare allocation amount. The
welfare allocation amount is an amount equal to the sum of the
property taxes imposed by the county in 1999 for the county's
welfare fund and welfare administration fund and, if the county
received a certified distribution under this chapter in 2008, the
property taxes imposed by the county in 2008 for the county's
county medical assistance to wards fund, family and children's
fund, children's psychiatric residential treatment services fund,
county hospital care for the indigent fund, and children with
special health care needs county fund.
(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.
(g) Except as provided in subsection (b)(2)(B), in determining the
fractional amount of the certified distribution the county and its cities
and towns are entitled to receive under subsection (b) during a
calendar year, the department of local government finance shall
consider only property taxes imposed on tangible property subject to
assessment in that county.
(h) In a county having a consolidated city, only the consolidated
city is entitled to the certified distribution, subject to the
requirements of sections 15, 25, and 26 of this chapter.
As added by P.L.380-1987(ss), SEC.6. Amended by P.L.47-1992,
SEC.1; P.L.28-1993, SEC.9; P.L.99-1995, SEC.3; P.L.124-1999,
SEC.1; P.L.273-1999, SEC.74; P.L.14-2000, SEC.18; P.L.283-2001,
SEC.6; P.L.90-2002, SEC.298; P.L.120-2002, SEC.6;
P.L.192-2002(ss), SEC.122; P.L.224-2003, SEC.255; P.L.255-2003,
SEC.6; P.L.97-2004, SEC.32; P.L.232-2007, SEC.4; P.L.146-2008,
SEC.346; P.L.182-2009(ss), SEC.229.
IC 6-3.5-7-13
Repealed
(Repealed by P.L.1-1990, SEC.80.)
IC 6-3.5-7-13.1
Economic development income tax funds; deposits; uses
Sec. 13.1. (a) The fiscal officer of each county, city, or town for
a county in which the county economic development tax is imposed
shall establish an economic development income tax fund. Except as
provided in sections 23, 25, 26, and 27 of this chapter, the revenue
received by a county, city, or town under this chapter shall be
deposited in the unit's economic development income tax fund.
(b) As used in this subsection, "homestead" means a homestead
that is eligible for a standard deduction under IC 6-1.1-12-37. Except
as provided in sections 15, 23, 25, 26, and 27 of this chapter,
revenues from the county economic development income tax may be
used as follows:
(1) By a county, city, or town for economic development
projects, for paying, notwithstanding any other law, under a
written agreement all or a part of the interest owed by a private
developer or user on a loan extended by a financial institution
or other lender to the developer or user if the proceeds of the
loan are or are to be used to finance an economic development
project, for the retirement of bonds under section 14 of this
chapter for economic development projects, for leases under
section 21 of this chapter, or for leases or bonds entered into or
issued prior to the date the economic development income tax
was imposed if the purpose of the lease or bonds would have
qualified as a purpose under this chapter at the time the lease
was entered into or the bonds were issued.
(2) By a county, city, or town for:
(A) the construction or acquisition of, or remedial action
with respect to, a capital project for which the unit is
empowered to issue general obligation bonds or establish a
fund under any statute listed in IC 6-1.1-18.5-9.8;
(B) the retirement of bonds issued under any provision of
Indiana law for a capital project;
(C) the payment of lease rentals under any statute for a
capital project;
(D) contract payments to a nonprofit corporation whose
primary corporate purpose is to assist government in
planning and implementing economic development projects;
(E) operating expenses of a governmental entity that plans or
implements economic development projects;
(F) to the extent not otherwise allowed under this chapter,
funding substance removal or remedial action in a
designated unit; or
(G) funding of a revolving fund established under
IC 5-1-14-14.
(3) By a county, city, or town for any lawful purpose for which
money in any of its other funds may be used.
(4) By a city or county described in IC 36-7.5-2-3(b) for making
transfers required by IC 36-7.5-4-2. If the county economic
development income tax rate is increased after April 30, 2005,
in a county having a population of more than one hundred
forty-five thousand (145,000) but less than one hundred
forty-eight thousand (148,000), the first three million five
hundred thousand dollars ($3,500,000) of the tax revenue that
results each year from the tax rate increase shall be used by the
county or by eligible municipalities (as defined in
IC 36-7.5-1-11.3) in the county only to make the county's
transfer required by IC 36-7.5-4-2. The first three million five
hundred thousand dollars ($3,500,000) of the tax revenue that
results each year from the tax rate increase shall be paid by the
county treasurer to the treasurer of the northwest Indiana
regional development authority under IC 36-7.5-4-2 before
certified distributions are made to the county or any cities or
towns in the county under this chapter from the tax revenue that
results each year from the tax rate increase. If a county having
a population of more than one hundred forty-five thousand
(145,000) but less than one hundred forty-eight thousand
(148,000) ceases to be a member of the northwest Indiana
regional development authority under IC 36-7.5 but two (2) or
more municipalities in the county have become members of the
northwest Indiana regional development authority as authorized
by IC 36-7.5-2-3(i), the county treasurer shall continue to
transfer the three million five hundred thousand dollars
($3,500,000) to the treasurer of the northwest Indiana regional
development authority under IC 36-7.5-4-2 before certified
distributions are made to the county or any cities or towns in the
county. In a county having a population of more than one
hundred forty-five thousand (145,000) but less than one
hundred forty-eight thousand (148,000), all of the tax revenue
that results each year from the tax rate increase that is in excess
of the first three million five hundred thousand dollars
($3,500,000) that results each year from the tax rate increase
must be used by the county and cities and towns in the county
for homestead credits under subdivision (5).
(5) This subdivision applies only in a county having a
population of more than one hundred forty-five thousand
(145,000) but less than one hundred forty-eight thousand
(148,000). All of the tax revenue that results each year from a
tax rate increase described in subdivision (4) that is in excess of
the first three million five hundred thousand dollars
($3,500,000) that results each year from the tax rate increase
must be used by the county and cities and towns in the county
for homestead credits under this subdivision. The following
apply to homestead credits provided under this subdivision:
(A) The homestead credits must be applied uniformly to
provide a homestead credit for homesteads in the county,
city, or town.
(B) The homestead credits shall be treated for all purposes
as property tax levies.
(C) The homestead credits shall be applied to the net
property taxes due on the homestead after the application of
all other assessed value deductions or property tax
deductions and credits that apply to the amount owed under
IC 6-1.1.
(D) The department of local government finance shall
determine the homestead credit percentage for a particular
year based on the amount of county economic development
income tax revenue that will be used under this subdivision
to provide homestead credits in that year.
(6) This subdivision applies only in a county having a
population of more than four hundred thousand (400,000) but
less than seven hundred thousand (700,000). A county or a city
or town in the county may use county economic development
income tax revenue to provide homestead credits in the county,
city, or town. The following apply to homestead credits
provided under this subdivision:
(A) The county, city, or town fiscal body must adopt an
ordinance authorizing the homestead credits. The ordinance
must:
(i) be adopted before September 1 of a year to apply to
property taxes first due and payable in the following year;
and
(ii) specify the amount of county economic development
income tax revenue that will be used to provide homestead
credits in the following year.
(B) A county, city, or town fiscal body that adopts an
ordinance under this subdivision must forward a copy of the
ordinance to the county auditor and the department of local
government finance not more than thirty (30) days after the
ordinance is adopted.
(C) The homestead credits must be applied uniformly to
increase the homestead credit under IC 6-1.1-20.9 for
homesteads in the county, city, or town (for property taxes
first due and payable before January 1, 2009) or to provide
a homestead credit for homesteads in the county, city, or
town (for property taxes first due and payable after
December 31, 2008).
(D) The homestead credits shall be treated for all purposes
as property tax levies.
(E) The homestead credits shall be applied to the net
property taxes due on the homestead after the application of
all other assessed value deductions or property tax
deductions and credits that apply to the amount owed under
IC 6-1.1.
(F) The department of local government finance shall
determine the homestead credit percentage for a particular
year based on the amount of county economic development
income tax revenue that will be used under this subdivision
to provide homestead credits in that year.
(7) For a regional venture capital fund established under section
13.5 of this chapter or a local venture capital fund established
under section 13.6 of this chapter.
(8) This subdivision applies only to a county:
(A) that has a population of more than one hundred ten
thousand (110,000) but less than one hundred fifteen
thousand (115,000); and
(B) in which:
(i) the county fiscal body has adopted an ordinance under
IC 36-7.5-2-3(e) providing that the county is joining the
northwest Indiana regional development authority; and
(ii) the fiscal body of the city described in IC 36-7.5-2-3(e)
has adopted an ordinance under IC 36-7.5-2-3(e) providing
that the city is joining the development authority.
Revenue from the county economic development income tax
may be used by a county or a city described in this subdivision
for making transfers required by IC 36-7.5-4-2. In addition, if
the county economic development income tax rate is increased
after June 30, 2006, in the county, the first three million five
hundred thousand dollars ($3,500,000) of the tax revenue that
results each year from the tax rate increase shall be used by the
county only to make the county's transfer required by
IC 36-7.5-4-2. The first three million five hundred thousand
dollars ($3,500,000) of the tax revenue that results each year
from the tax rate increase shall be paid by the county treasurer
to the treasurer of the northwest Indiana regional development
authority under IC 36-7.5-4-2 before certified distributions are
made to the county or any cities or towns in the county under
this chapter from the tax revenue that results each year from the
tax rate increase. All of the tax revenue that results each year
from the tax rate increase that is in excess of the first three
million five hundred thousand dollars ($3,500,000) that results
each year from the tax rate increase must be used by the county
and cities and towns in the county for homestead credits under
subdivision (9).
(9) This subdivision applies only to a county described in
subdivision (8). All of the tax revenue that results each year
from a tax rate increase described in subdivision (8) that is in
excess of the first three million five hundred thousand dollars
($3,500,000) that results each year from the tax rate increase
must be used by the county and cities and towns in the county
for homestead credits under this subdivision. The following
apply to homestead credits provided under this subdivision:
(A) The homestead credits must be applied uniformly to
provide a homestead credit for homesteads in the county,
city, or town.
(B) The homestead credits shall be treated for all purposes
as property tax levies.
(C) The homestead credits shall be applied to the net
property taxes due on the homestead after the application of
all other assessed value deductions or property tax
deductions and credits that apply to the amount owed under
IC 6-1.1.
(D) The department of local government finance shall
determine the homestead credit percentage for a particular
year based on the amount of county economic development
income tax revenue that will be used under this subdivision
to provide homestead credits in that year.
(c) As used in this section, an economic development project is
any project that:
(1) the county, city, or town determines will:
(A) promote significant opportunities for the gainful
employment of its citizens;
(B) attract a major new business enterprise to the unit; or
(C) retain or expand a significant business enterprise within
the unit; and
(2) involves an expenditure for:
(A) the acquisition of land;
(B) interests in land;
(C) site improvements;
(D) infrastructure improvements;
(E) buildings;
(F) structures;
(G) rehabilitation, renovation, and enlargement of buildings
and structures;
(H) machinery;
(I) equipment;
(J) furnishings;
(K) facilities;
(L) administrative expenses associated with such a project,
including contract payments authorized under subsection
(b)(2)(D);
(M) operating expenses authorized under subsection
(b)(2)(E); or
(N) to the extent not otherwise allowed under this chapter,
substance removal or remedial action in a designated unit;
or any combination of these.
(d) If there are bonds outstanding that have been issued under
section 14 of this chapter or leases in effect under section 21 of this
chapter, a county, city, or town may not expend money from its
economic development income tax fund for a purpose authorized
under subsection (b)(3) in a manner that would adversely affect
owners of the outstanding bonds or payment of any lease rentals due.
As added by P.L.1-1990, SEC.81. Amended by P.L.17-1991, SEC.9;
P.L.44-1994, SEC.8; P.L.27-1995, SEC.6; P.L.124-1999, SEC.2;
P.L.192-2002(ss), SEC.123; P.L.224-2003, SEC.256; P.L.118-2005,
SEC.2; P.L.214-2005, SEC.21; P.L.47-2006, SEC.4; P.L.1-2006,
SEC.145; P.L.137-2006, SEC.11; P.L.1-2007, SEC.66;
P.L.146-2008, SEC.347; P.L.182-2009(ss), SEC.227.
IC 6-3.5-7-13.5
Regional venture capital funds
Sec. 13.5. (a) The general assembly finds that counties and
municipalities in Indiana have a need to foster economic
development, the development of new technology, and industrial and
commercial growth. The general assembly finds that it is necessary
and proper to provide an alternative method for counties and
municipalities to foster the following:
(1) Economic development.
(2) The development of new technology.
(3) Industrial and commercial growth.
(4) Employment opportunities.
(5) The diversification of industry and commerce.
The fostering of economic development and the development of new
technology under this section or section 13.6 of this chapter for the
benefit of the general public, including industrial and commercial
enterprises, is a public purpose.
(b) The fiscal bodies of two (2) or more counties or municipalities
may, by resolution, do the following:
(1) Determine that part or all the taxes received by the units
under this chapter should be combined to foster:
(A) economic development;
(B) the development of new technology; and
(C) industrial and commercial growth.
(2) Establish a regional venture capital fund.
(c) Each unit participating in a regional venture capital fund
established under subsection (b) may deposit the following in the
fund:
(1) Taxes distributed to the unit under this chapter.
(2) The proceeds of public or private grants.
(d) A regional venture capital fund shall be administered by a
governing board. The expenses of administering the fund shall be
paid from money in the fund. The governing board 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 into
the fund. The fund is subject to an annual audit by the state board of
accounts. The fund shall bear the full costs of the audit.
(e) The fiscal body of each participating unit shall approve an
interlocal agreement created under IC 36-1-7 establishing the terms
for the administration of the regional venture capital fund. The terms
must include the following:
(1) The membership of the governing board.
(2) The amount of each unit's contribution to the fund.
(3) The procedures and criteria under which the governing
board may loan or grant money from the fund.
(4) The procedures for the dissolution of the fund and for the
distribution of money remaining in the fund at the time of the
dissolution.
(f) An interlocal agreement made by the participating units under
subsection (e) must provide that:
(1) each of the participating units is represented by at least one
(1) member of the governing board; and
(2) the membership of the governing board is established on a
bipartisan basis so that the number of the members of the
governing board who are members of one (1) political party
may not exceed the number of members of the governing board
required to establish a quorum.
(g) A majority of the governing board constitutes a quorum, and
the concurrence of a majority of the governing board is necessary to
authorize any action.
(h) An interlocal agreement made by the participating units under
subsection (e) must be submitted to the Indiana economic
development corporation for approval before the participating units
may contribute to the fund.
(i) A majority of members of a governing board of a regional
venture capital fund established under this section must have at least
five (5) years of experience in business, finance, or venture capital.
(j) The governing board of the fund may loan or grant money from
the fund to a private or public entity if the governing board finds that
the loan or grant will be used by the borrower or grantee for at least
one (1) of the following economic development purposes:
(1) To promote significant employment opportunities for the
residents of the units participating in the regional venture
capital fund.
(2) To attract a major new business enterprise to a participating
unit.
(3) To develop, retain, or expand a significant business
enterprise in a participating unit.
(k) The expenditures of a borrower or grantee of money from a
regional venture capital fund that are considered to be for an
economic development pur