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 isgiven in IC 6-3-1-3.5(a), except that in the case of a county taxpayerwho is not a resident of a county that has imposed the countyadjusted gross income tax, the term includes only adjusted grossincome derived from the taxpayer's principal place of business oremployment.
"Apartment complex" means real property consisting of at leastfive (5) units that are regularly used to rent or otherwise furnishresidential accommodations for periods of at least thirty (30) days.
"Civil taxing unit" means any entity having the power to imposead valorem property taxes except a school corporation. The termdoes not include a solid waste management district that is not entitledto a distribution under section 1.3 of this chapter. However, in thecase of a consolidated city, the term "civil taxing unit" includes theconsolidated city and all special taxing districts, all special servicedistricts, and all entities whose budgets and property tax levies aresubject to review under IC 36-3-6-9.
"County council" includes the city-county council of aconsolidated city.
"County taxpayer" as it relates to a county for a year means anyindividual:
(1) who resides in that county on the date specified in section16 of this chapter; or
(2) who maintains the taxpayer's principal place of business oremployment in that county on the date specified in section 16of this chapter and who does not on that same date reside inanother county in which the county adjusted gross income tax,the county option income tax, or the county economicdevelopment 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 yearmeans any county taxpayer for that county for that year who is not aresident 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 yearmeans any county taxpayer who resides in that county on the datespecified in section 16 of this chapter.
"Residential rental property" means real property consisting of notmore than four (4) units that are regularly used to rent or otherwisefurnish residential accommodations for periods of at least thirty (30)
days.
"School corporation" means any public school corporationestablished 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 distributionmade to a county under this chapter among the civil taxing units andschool corporations in the county, the allocation amount for a civiltaxing unit or school corporation is the amount determined using thefollowing formula:
STEP ONE: Determine the sum of the total property taxes beingcollected by the civil taxing unit or school corporation duringthe calendar year of the distribution.
STEP TWO: Determine the sum of the following:
(A) Amounts appropriated from property taxes to pay theprincipal of or interest on any debenture or other debtobligation issued after June 30, 2005, other than anobligation described in subsection (b).
(B) Amounts appropriated from property taxes to makepayments on any lease entered into after June 30, 2005, otherthan a lease described in subsection (c).
(C) The proceeds of any property that are:
(i) received as the result of the issuance of a debtobligation described in clause (A) or a lease described inclause (B); and
(ii) appropriated from property taxes for any purpose otherthan to refund or otherwise refinance a debt obligation orlease described in subsection (b) or (c).
STEP THREE: Subtract the STEP TWO amount from the STEPONE amount.
STEP FOUR: Determine the sum of:
(A) the STEP THREE amount; plus
(B) the civil taxing unit's or school corporation's certifieddistribution for the previous calendar year.
The allocation amount is subject to adjustment as provided inIC 36-8-19-7.5.
(b) Except as provided in this subsection, an appropriation fromproperty taxes to repay interest and principal of a debt obligation isnot deducted from the allocation amount for a civil taxing unit orschool 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 issuedbefore July 1, 2005. However, an appropriation from property taxesrelated to a debt obligation issued after June 30, 2005, is deducted ifthe debt extends payments on a debt or lease beyond the time inwhich the debt or lease would have been payable if the debt or lease
had not been refinanced or increases the total amount that must bepaid on a debt or lease in excess of the amount that would have beenpaid if the debt or lease had not been refinanced. The amount of thededuction is the annual amount for each year of the extension periodor the annual amount of the increase over the amount that wouldhave been paid.
(c) Except as provided in this subsection, an appropriation fromproperty taxes to make payments on a lease is not deducted from theallocation 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 leaseentered into after June 30, 2005, is deducted if the lease extendspayments on a debt or lease beyond the time in which the debt orlease would have been payable if the debt or lease had not beenrefinanced or increases the total amount that must be paid on a debtor lease in excess of the amount that would have been paid if the debtor lease had not been refinanced. The amount of the deduction is theannual amount for each year of the extension period or the annualamount 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 wastemanagement district (as defined in IC 13-11-2-47) or a joint solidwaste management district (as defined in IC 13-11-2-113).
(b) A district may not receive a distribution under this chapterunless a majority of the members of each of the county fiscal bodiesof the counties within the district passes a resolution approving thedistribution.
(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 orrescinds 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 homesteadcredit or property tax replacement credit authorized under thischapter;
may be exercised at any time in a year before November 1 of that
year.
(b) Notwithstanding any other provision of this chapter, anordinance authorized by this chapter that imposes or increases a taxor a tax rate takes effect as follows:
(1) An ordinance adopted after December 31 of the immediatelypreceding year and before October 1 of the current year takeseffect October 1 of the current year.
(2) An ordinance adopted after September 30 and beforeOctober 16 of the current year takes effect November 1 of thecurrent year.
(3) An ordinance adopted after October 15 and beforeNovember 1 of the current year takes effect December 1 of thecurrent year.
(c) Notwithstanding any other provision of this chapter, anordinance authorized by this chapter that decreases or rescinds a taxor a tax rate takes effect as follows:
(1) An ordinance adopted after December 31 of the immediatelypreceding year and before October 1 of the current year takeseffect on the later of October 1 of the current year or the firstday of the month in the current year as the month in which thelast increase in the tax or tax rate occurred.
(2) An ordinance adopted after September 30 and beforeOctober 16 of the current year takes effect on the later ofNovember 1 of the current year or the first day of the month inthe current year as the month in which the last increase in thetax or tax rate occurred.
(3) An ordinance adopted after October 15 and beforeNovember 1 of the current year takes effect December 1 of thecurrent year.
(d) Notwithstanding any other provision of this chapter, anordinance authorized by this chapter that grants, increases, decreases,rescinds, or changes a homestead credit or property tax replacementcredit authorized under this chapter takes effect for and applies toproperty taxes first due and payable in the year immediatelyfollowing 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 countyoption income tax will not be in effect on October 1 of a year underan ordinance adopted during a previous calendar year may imposethe county adjusted gross income tax on the adjusted gross incomeof 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 grossincome 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%) onthe 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 ofone-fourth of one percent (0.25%) on their adjusted gross income. Ifthe county council elects to decrease the county adjusted grossincome tax, the county council may decrease the county adjustedgross income tax rate in increments of one-tenth of one percent(0.1%).
(c) To impose the county adjusted gross income tax, the countycouncil must, after March 31 but before August 1 of a year, adopt anordinance. The ordinance must substantially state the following:
"The ________ County Council imposes the county adjustedgross 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 thecounty and one-fourth of one percent (0.25%) on thenonresident county taxpayers of the county. This tax takeseffect October 1 of this year.".
(d) Any ordinance adopted under this section takes effect October1 of the year the ordinance is adopted.
(e) The auditor of a county shall record all votes taken onordinances presented for a vote under the authority of this sectionand immediately send a certified copy of the results to thedepartment by certified mail.
(f) If the county adjusted gross income tax had previously beenadopted 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 thischapter, then the county adjusted gross income tax continues in thatcounty at the rates in effect at the time of enactment until the ratesare modified or the tax is rescinded in the manner prescribed by thischapter. If a county's adjusted gross income tax is continued underthis subsection, then the tax shall be treated as if it had been imposedunder this chapter and is subject to rescission or reduction asauthorized 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 thatadditional county adjusted gross income tax revenue is needed in thecounty 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 demolitionof existing buildings and the acquisition of land; and (2) repay bonds issued or leases entered into for the purposesdescribed in subdivision (1).
(c) The county council may, by ordinance, determine thatadditional county adjusted gross income tax revenue is needed in thecounty to operate or maintain any of the facilities described insubsection (b)(1)(A) through (b)(1)(D) that are located in the county.The county council may make a determination under both thissubsection 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 taxat 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 countycouncil makes a finding and determination set forth in subsection (b)or (c).
(e) If the county council imposes the tax under this section to payfor the purposes described in both subsections (b) and (c), when:
(1) the financing, construction, acquisition, improvement,renovation, and equipping described in subsection (b) arecompleted; and
(2) all bonds issued or leases entered into to finance theconstruction, acquisition, improvement, renovation, andequipping described in subsection (b) are fully paid;
the county council shall, subject to subsection (d), establish a tax rateunder this section by ordinance such that the revenue from the taxdoes not exceed the costs of operating and maintaining the jailfacilities described in subsection (b)(1)(A). The tax rate may not beimposed at a rate greater than is necessary to carry out the purposesdescribed in subsections (b) and (c), as applicable.
(f) An ordinance adopted under this section before August 1 in ayear applies to the imposition of county income taxes afterSeptember 30 in that year. An ordinance adopted under this sectionafter July 31 of a year initially applies to the imposition of countyoption income taxes after September 30 of the immediately followingyear.
(g) The tax imposed under this section may be imposed only untilthe latest of the following:
(1) The date on which the financing, construction, acquisition,improvement, renovation, and equipping described insubsection (b) are completed.
(2) The date on which the last of any bonds issued or leasesentered into to finance the construction, acquisition,improvement, renovation, and equipping described insubsection (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 facilitiesrevenue fund to be used only for purposes described in this section.County adjusted gross income tax revenues derived from the tax rateimposed under this section shall be deposited in the criminal justicefacilities revenue fund before making a certified distribution undersection 11 of this chapter.
(j) County adjusted gross income tax revenues derived from thetax 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 localgovernment finance in determining the county's maximumpermissible property tax levy limit under IC 6-1.1-18.5; and
(3) may be pledged to the repayment of bonds issued or leasesentered into for any or all the purposes described in subsection(b).
(k) Notwithstanding any other law, money remaining in thecriminal justice facilities revenue fund established under subsection(i) after the tax imposed by this section is terminated undersubsection (g) shall be transferred to the county highway fund to beused for construction, resurfacing, restoration, and rehabilitation ofcounty 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 withpopulation between 41,000 and 43,000
Sec. 2.5. (a) This section applies only to a county having apopulation of more than forty-one thousand (41,000) but less thanforty-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 grossincome tax revenue is needed in the county to fund the operation andmaintenance of a jail and juvenile detention center opened after July1, 1998.
(d) Notwithstanding section 2 of this chapter, if the countycouncil adopts an ordinance under subsection (c), the county councilmay impose the county adjusted gross income tax at a rate of one andone-tenth percent (1.1%) on adjusted gross income for fiscal yearsbeginning before July 1, 2011. For fiscal years beginning after June30, 2011, the rate is reduced to one percent (1%). If the countycouncil imposes the county adjusted gross income tax at a rate of oneand one-tenth percent (1.1%), the county council may decrease therate or rescind the tax in the manner provided under this chapter.
(e) If a county imposes the county adjusted gross income tax at arate of one and one-tenth percent (1.1%) under this section, therevenue 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 andjuvenile detention center opened after July 1, 1998; and
(3) may not be considered by the department of localgovernment finance in determining the county's maximumpermissible 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 thatadditional county adjusted gross income tax revenue is needed in thecounty to:
(1) fund the costs (including pre-trial costs) of a capital trial thathas been moved to another county for trial; and
(2) to repay money borrowed for the purpose described insubdivision (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 adjustedgross 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 untilthe later of the following:
(1) The date on which the costs described in subsection (b),including the repayment of money borrowed for the purposesdescribed 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) maynot exceed three (3) years.
(f) The county treasurer shall establish a capital trial revenue fundto be used only for purposes described in this section. Countyadjusted gross income tax revenues derived from the tax rateimposed under this section shall be deposited in the capital trialrevenue fund before making a certified distribution under section 11of this chapter.
(g) County adjusted gross income tax revenues derived from thetax 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 localgovernment finance in determining the county's maximumpermissible 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 thecapital trial revenue fund established under subsection (f) after thetax imposed by this section is terminated under subsection (d) shallbe transferred to the county general fund to be used for criminaljustice 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 withpopulation between 71,000 and 71,400
Sec. 2.7. (a) This section applies to a county having a populationof more than seventy-one thousand (71,000) but less thanseventy-one thousand four hundred (71,400).
(b) The county council may, by ordinance, determine thatadditional county adjusted gross income tax revenue is needed in thecounty to:
(1) finance, construct, acquire, improve, renovate, or equip thecounty jail and related buildings and parking facilities,including costs related to the demolition of existing buildingsand the acquisition of land; and
(2) repay bonds issued, or leases entered into, for constructing,acquiring, improving, renovating, and equipping the county jailand related buildings and parking facilities, including costsrelated to the demolition of existing buildings and theacquisition 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 taxat 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 countycouncil makes the finding and determination set forth in subsection(b). The tax imposed under this section may be imposed only untilthe 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 orleases 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 refundingbonds) or a lease entered into under subsection (b)(2) may notexceed 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). Thetax rate may not be imposed at a rate greater than is necessary to paythe costs of financing, acquiring, improving, renovating, andequipping the county jail and related buildings and parking facilities,including costs related to the demolition of existing buildings and theacquisition of land. (e) The county treasurer shall establish a county jail revenue fundto be used only for purposes described in this section. Countyadjusted gross income tax revenues derived from the tax rateimposed under this section shall be deposited in the county jailrevenue fund before making a certified distribution under section 11of this chapter.
(f) County adjusted gross income tax revenues derived from thetax 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 localgovernment finance in determining the county's maximumpermissible property tax levy limit under IC 6-1.1-18.5; and
(3) may be pledged to the repayment of bonds issued, or leasesentered into, for purposes described in subsection (b).
(g) A county described in subsection (a) possesses uniqueeconomic development challenges due to underemployment inrelation to similarly situated counties. Maintaining low property taxrates is essential to economic development and the use of countyadjusted gross income tax revenues as provided in this chapter to payany bonds issued or leases entered into to finance the construction,acquisition, improvement, renovation, and equipping described undersubsection (b), rather than use of property taxes, promotes thatpurpose.
(h) Notwithstanding any other law, funds accumulated from thecounty 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 enteredinto under this section;
shall be transferred to the county highway fund to be used forconstruction, resurfacing, restoration, and rehabilitation of countyhighways, roads, and bridges.
As added by P.L.135-2001, SEC.2. Amended by P.L.1-2002, SEC.33and P.L.90-2002, SEC.290.
IC 6-3.5-1.1-2.8
Additional rate for criminal justice facilities; fund; use ofadditional 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 hundredeighty-two thousand seven hundred ninety (182,790) but lessthan two hundred thousand (200,000); and
(2) a county having a population of more than forty-fivethousand (45,000) but less than forty-five thousand ninehundred (45,900).
(b) The county council may, by ordinance, determine thatadditional county adjusted gross income tax revenue is needed in thecounty 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 demolitionof existing buildings and the acquisition of land; and
(2) repay bonds issued or leases entered into for the purposesdescribed in subdivision (1).
(c) The county council may, by ordinance, determine thatadditional county adjusted gross income tax revenue is needed in thecounty 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 insubsection (a)(1) or (a)(2) may make a determination under both thissubsection 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 taxat 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 countycouncil makes a finding and determination set forth in subsection (b)or (c). The tax rate may not be imposed at a rate greater than isnecessary to carry out the purposes described in subsections (b) and(c), as applicable.
(e) This subsection applies only to a county described insubsection (a)(1). If the county council imposes the tax under thissection 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) arecompleted; and
(2) all bonds issued (including any refunding bonds) or leasesentered into to finance the construction, acquisition,improvement, renovation, and equipping described insubsection (b) are fully paid;
the county council shall, subject to subsection (d), establish a tax rateunder this section by ordinance such that the revenue from the taxdoes not exceed the costs of operating and maintaining the jailfacilities referred to in subsection (b)(1)(A).
(f) The tax imposed under this section may be imposed only untilthe last of the following dates:
(1) The date on which the financing, construction, acquisition,improvement, renovation, and equipping described insubsection (b) are completed.
(2) The date on which the last of any bonds issued (includingany refunding bonds) or leases entered into to finance theconstruction, acquisition, improvement, renovation, and
equipping described in subsection (b) are fully paid.
(3) If the county imposing the tax under this section is a countydescribed in subsection (a)(1), the date on which an ordinanceadopted 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 facilitiesrevenue fund to be used only for purposes described in this section.County adjusted gross income tax revenues derived from the tax rateimposed under this section shall be deposited in the criminal justicefacilities revenue fund before making a certified distribution undersection 11 of this chapter.
(i) County adjusted gross income tax revenues derived from thetax 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 localgovernment finance in determining the county's maximumpermissible property tax levy limit under IC 6-1.1-18.5; and
(3) may be pledged to the repayment of bonds issued or leasesentered into for any or all the purposes described in subsection(b).
(j) Notwithstanding any other law, money remaining in thecriminal justice facilities revenue fund established under subsection(h) after the tax imposed by this section is terminated undersubsection (f) shall be transferred to the county highway fund to beused for construction, resurfacing, restoration, and rehabilitation ofcounty 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 additionalrevenue; balance transfer to county highway fund
Sec. 2.9. (a) This section applies to a county having a populationof more than twenty-nine thousand (29,000) but less than thirtythousand (30,000).
(b) The county council may, by ordinance, determine thatadditional county adjusted gross income tax revenue is needed in thecounty to:
(1) finance, construct, acquire, improve, renovate, remodel, orequip the county jail and related buildings and parkingfacilities, including costs related to the demolition of existingbuildings, the acquisition of land, and any other reasonablyrelated costs; and
(2) repay bonds issued or leases entered into for constructing,acquiring, improving, renovating, remodeling, and equippingthe 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 taxat 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 countycouncil makes the finding and determination set forth in subsection(b). The tax imposed under this section may be imposed only untilthe later of the date on which the financing on, acquisition,improvement, renovation, remodeling, and equipping described insubsection (b) are completed or the date on which the last of anybonds issued or leases entered into to finance the construction,acquisition, improvement, renovation, remodeling, and equippingdescribed in subsection (b) are fully paid. The term of the bondsissued (including any refunding bonds) or a lease entered into undersubsection (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). Thetax rate may not be imposed at a rate greater than is necessary to paythe costs of financing, acquiring, improving, renovating, remodeling,and equipping the county jail and related buildings and parkingfacilities, including costs related to the demolition of existingbuildings, the acquisition of land, and any other reasonably relatedcosts.
(e) The county treasurer shall establish a county jail revenue fundto be used only for purposes described in this section. Countyadjusted gross income tax revenues derived from the tax rateimposed under this section shall be deposited in the county jailrevenue fund before making a certified distribution under section 11of this chapter.
(f) County adjusted gross income tax revenues derived from thetax 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 localgovernment finance in determining the county's maximumpermissible property tax levy limit under IC 6-1.1-18.5; and
(3) may be pledged to the repayment of bonds issued or leasesentered into for purposes described in subsection (b).
(g) A county described in subsection (a) possesses uniquegovernmental and economic development challenges due to:
(1) underemployment in relation to similarly situated countiesand the loss of a major manufacturing business;
(2) an increase in property taxes for taxable years afterDecember 31, 2000, for the construction of a new elementaryschool; and
(3) overcrowding of the county jail, the costs associated withhousing the county's inmates outside the county, and thepotential unavailability of additional housing for inmatesoutside the county.The use of county adjusted gross income tax revenues as provided inthis chapter is necessary for the county to provide adequate jailcapacity in the county and to maintain low property tax ratesessential to economic development. The use of county adjusted grossincome tax revenues as provided in this chapter to pay any bondsissued or leases entered into to finance the construction, acquisition,improvement, renovation, remodeling, and equipping described insubsection (b), rather than the use of property taxes, promotes thosepurposes.
(h) Notwithstanding any other law, funds accumulated from thecounty 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 enteredinto under this section;
shall be transferred to the county highway fund to be used forconstruction, resurfacing, restoration, and rehabilitation of countyhighways, 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 adjustedgross income tax rate imposed upon the resident county taxpayers ofthe county. To increase the rate, the county council must, after March31 but before August 1 of a year, adopt an ordinance. The ordinancemust substantially state the following:
"The ________ County Council increases the county adjustedgross income tax rate imposed upon the resident countytaxpayers of the county from ________ percent (___%) to_______ percent (___%). This tax rate increase takes effectOctober 1 of this year.".
(b) Any ordinance adopted under this section takes effect October1 of the year the ordinance is adopted.
(c) The auditor of a county shall record all votes taken onordinances presented for a vote under the authority of this sectionand immediately send a certified copy of the results to thedepartment 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 ofordinance; procedures
Sec. 3.1. (a) The county council may decrease the county adjustedgross income tax rate imposed upon the resident county taxpayers ofthe county. To decrease the rate, the county council must, afterMarch 31 but before August 1 of a year, adopt an ordinance. Theordinance must substantially state the following:
"The ________ County Council decreases the county adjusted
gross income tax rate imposed upon the resident countytaxpayers of the county from _____ percent (___%) to _____percent (___%). This tax rate decrease takes effect October 1 ofthis year.".
(b) A county council may not decrease the county adjusted grossincome tax rate if the county or any commission, board, department,or authority that is authorized by statute to pledge the countyadjusted gross income tax has pledged the county adjusted grossincome tax for any purpose permitted by IC 5-1-14 or any otherstatute.
(c) Any ordinance adopted under this section takes effect October1 of the year the ordinance is adopted.
(d) The auditor of a county shall record all votes taken onordinances presented for a vote under the authority of this sectionand immediately send a certified copy of the results to thedepartment by certified mail.
(e) Notwithstanding IC 6-3.5-7, and except as provided insubsection (f), a county council that decreases the county adjustedgross income tax rate in a year may not in the same year adopt orincrease the county economic development income tax underIC 6-3.5-7.
(f) This subsection applies only to a county having a populationof more than one hundred ten thousand (110,000) but less than onehundred fifteen thousand (115,000). The county council may adoptor increase the county economic development income tax rate underIC 6-3.5-7 in the same year that the county council decreases thecounty adjusted gross income tax rate if the county economicdevelopment income tax rate plus the county adjusted gross incometax rate in effect after the county council decreases the countyadjusted gross income tax rate is less than the county adjusted grossincome tax rate in effect before the adoption of an ordinance underthis section decreasing the rate of the county adjusted gross incometax.
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 courtorder; 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 ConstructionStandards; and
(B) Indiana jail operation standards adopted by thedepartment of correction; and
(3) has insufficient revenue to finance the construction,
acquisition, improvement, renovation, and equipping of acounty jail and related buildings and parking facilities.
(b) For purposes of this section, "county jail" includes any otherpenal facility that is:
(1) located in; and
(2) operated by;
the county.
(c) The county council may, by ordinance, determine thatadditional county adjusted gross income tax revenue is needed in thecounty to:
(1) finance, construct, acquire, improve, renovate, or equip acounty jail and related buildings and parking facilities,including costs related to the demolition of existing buildingsand the acquisition of land; and
(2) repay bonds issued or leases entered into for constructing,acquiring, improving, renovating, and equipping the county jailand related buildings and parking facilities, including costsrelated to the demolition of existing buildings and theacquisition 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 taxat a rate of twenty-five hundredths percent (0.25%) on the adjustedgross income of county taxpayers if the county council makes thefinding and determination set forth in subsection (c). The taximposed under this section may be imposed only until the later of thedate on which the financing on acquisition, improvement, renovation,and equipping described in subsection (c) is completed or the date onwhich the last of any bonds issued or leases entered into to financethe construction, acquisition, improvement, renovation, andequipping described in subsection (c) are fully paid. The term of thebonds issued (including any refunding bonds) or a lease entered intounder 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). Thetax rate may not be imposed at a rate greater than is necessary to paythe costs of financing, acquiring, improving, renovating, andequipping the county jail and related buildings and parking facilities,including costs related to the demolition of existing buildings and theacquisition of land.
(f) The county treasurer shall establish a county jail revenue fundto be used only for purposes described in this section. Countyadjusted gross income tax revenues derived from the tax rateimposed under this section shall be deposited in the county jailrevenue fund before making a certified distribution under section 11of this chapter.
(g) County adjusted gross income tax revenues derived from thetax 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 localgovernment 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 leasesentered into for purposes described in subsection (c).
(h) A county described in subsection (a) possesses uniqueeconomic development challenges due to underemployment inrelation to similarly situated counties. Maintaining low property taxrates is essential to economic development. The use of countyadjusted gross income tax revenues as provided in this chapter, ratherthan use of property taxes, to pay any bonds issued or leases enteredinto to finance the construction, acquisition, improvement,renovation, and equipping described in subsection (c) promotes thatpurpose.
(i) Notwithstanding any other law, funds accumulated from thecounty 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 enteredinto 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 populationbetween 13,500 and 14,000
Sec. 3.5. (a) This section applies only to a county having apopulation of more than thirteen thousand five hundred (13,500) butless than fourteen thousand (14,000).
(b) The county council of a county described in subsection (a)may, by ordinance, determine that additional county adjusted grossincome tax revenue is needed in the county to fund the operation andmaintenance of a jail and justice center.
(c) Notwithstanding section 2 of this chapter, if the county counciladopts an ordinance under subsection (b), the county council mayimpose the county adjusted gross income tax at a rate of one andthree-tenths percent (1.3%) on adjusted gross income. However, acounty may impose the county adjusted gross income tax at a rate ofone and three-tenths percent (1.3%) for only eight (8) years. After thecounty has imposed the county adjusted gross income tax at a rate ofone and three-tenths percent (1.3%) for eight (8) years, the rate isreduced to one percent (1%). If the county council imposes thecounty adjusted gross income tax at a rate of one and three-tenthspercent (1.3%), the county council may decrease the rate or rescindthe tax in the manner provided under this chapter.
(d) If a county imposes the county adjusted gross income tax at arate of one and three-tenths percent (1.3%) under this section, therevenue derived from a tax rate of three-tenths percent (0.3%) onadjusted gross income:
(1) shall be paid to the county treasurer;
(2) may be used only to pay the costs of operating andmaintaining 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 maximumpermissible 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 additionalrevenue; balance transfer to county highway fund
Sec. 3.6. (a) This section applies only to a county having apopulation of more than six thousand (6,000) but less than eightthousand (8,000).
(b) The county council may, by ordinance, determine thatadditional county adjusted gross income tax revenue is needed in thecounty to:
(1) finance, construct, acquire, improve, renovate, or equip thecounty courthouse; and
(2) repay bonds issued, or leases entered into, for constructing,acquiring, improving, renovating, and equipping the countycourthouse.
(c) In addition to the rates permitted under section 2 of thischapter, the county council may impose the county adjusted grossincome tax at a rate of twenty-five hundredths percent (0.25%) onthe adjusted gross income of county taxpayers if the county councilmakes the finding and determination set forth in subsection (b). Thetax imposed under this section may be imposed only until the later ofthe date on which the financing on, acquisition, improvement,renovation, and equipping described in subsection (b) is completedor the date on which the last of any bonds issued or leases enteredinto 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 alease entered into under subsection (b)(2) may not exceedtwenty-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). Thetax rate may not be imposed for a time greater than is necessary topay the costs of financing, constructing, acquiring, renovating, andequipping the county courthouse.
(e) The county treasurer shall establish a county courthouserevenue fund to be used only for purposes described in this section.County adjusted gross income tax revenues derived from the tax rateimposed under this section shall be deposited in the countycourthouse revenue fund before a certified distribution is made undersection 11 of this chapter.
(f) County adjusted gross income tax revenues derived from thetax 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 localgovernment 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 leasesentered into for purposes described in subsection (b).
(g) A county described in subsection (a) possesses uniqueeconomic development challenges due to:
(1) the county's heavy agricultural base;
(2) the presence of a large amount of state owned property inthe county that is exempt from property taxation; and
(3) recent obligations of the school corporation in the countythat have already increased property taxes in the county andimposed additional property tax burdens on the county'sagricultural base.
Maintaining low property tax rates is essential to economicdevelopment. The use of county adjusted gross income tax revenuesas provided in this chapter to pay any bonds issued or leases enteredinto to finance the construction, acquisition, improvement,renovation, and equipping described in subsection (b), rather than theuse of property taxes, promotes that purpose.
(h) Notwithstanding any other law, funds accumulated from thecounty 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 enteredinto under this section;
shall be transferred to the county highway fund to be used forconstruction, resurfacing, restoration, and rehabilitation of countyhighways, 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 acounty council under this chapter remains in effect until rescinded.
(b) Except as provided in subsection (e), the county council mayrescind the county adjusted gross income tax by adopting anordinance to rescind the tax after March 31 but before August 1 ofa year.
(c) Any ordinance adopted under this section takes effect October1 of the year the ordinance is adopted.
(d) The auditor of a county shall record all votes taken onordinances presented for a vote under the authority of this sectionand immediately send a certified copy of the results to thedepartment by certified mail.
(e) A county council may not rescind the county adjusted grossincome tax or take any action that would result in a civil taxing unitin the county having a smaller certified share than the certified shareto which the civil taxing unit was entitled when the civil taxing unitpledged county adjusted gross income tax if the civil taxing unit orany commission, board, department, or authority that is authorizedby statute to pledge county adjusted gross income tax has pledged
county adjusted gross income tax for any purpose permitted byIC 5-1-14 or any other statute. The prohibition in this section doesnot apply if the civil taxing unit pledges legally available revenuesto fully replace the civil taxing unit's certified share that has beenpledged.
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 thecounty adjusted gross income tax is not in effect during a countytaxpayer's entire taxable year, then the amount of county adjustedgross income tax that the county taxpayer owes for that taxable yearequals the product of:
(1) the amount of county adjusted gross income tax the countytaxpayer would owe if the tax had been imposed during thecounty taxpayer's entire taxable year; multiplied by
(2) a fraction:
(A) The numerator of the fraction equals the number of daysduring the county taxpayer's taxable year during which thecounty adjusted gross income tax was in effect.
(B) The denominator of the fraction equals the total numberof 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 inIC 22-4-15-1(e)); and
(3) has no earned income for the part of the taxpayer's taxableyear that the tax was in effect;
the county taxpayer's adjusted gross income for the taxable year isreduced by the amount of the taxpayer's earned income for thetaxable year.
(c) A taxpayer who qualifies under subsection (b) must file aclaim for a refund for the difference between the county adjustedgross income tax owed, as determined under subsection (a), and thetax owed, as determined under subsection (b). A claim for a refundmust be on a form approved by the department and include allsupporting 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 particulartaxable year a county taxpayer is liable for an income tax imposed bya county, city, town, or other local governmental entity locatedoutside of Indiana, that county taxpayer is entitled to a cr