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 inthis chapter, "adjusted gross income" has the meaning set forth inIC 6-3-1-3.5(a).
(b) In the case of a county taxpayer who is not a resident of acounty that has imposed the county economic development incometax, the term "adjusted gross income" includes only adjusted grossincome derived from the taxpayer's principal place of business oremployment.
(c) In the case of a county taxpayer who is a resident of a countyhaving a population of more than eighteen thousand three hundred(18,300) but less than nineteen thousand three hundred (19,300), theterm "adjusted gross income" does not include adjusted gross incomethat 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, orother 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" includessubstance 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 thecity-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 toa county for a year means any individual who:
(1) resides in that county on the date specified in section 17 ofthis chapter; or
(2) maintains a principal place of business or employment inthat county on the date specified in section 17 of this chapterand who does not on that same date reside in another county inwhich the county adjusted gross income tax, the county optionincome tax, or the county economic development income tax isin 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 thedepartment 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 acounty having a population of more than one hundred forty-eightthousand (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 themeaning 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 setforth 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 setforth 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 homesteadcredit or property tax replacement credit authorized under thischapter;
may be exercised at any time in a year before November 1 of thatyear.
(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 immediately
preceding 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.66.
IC 6-3.5-7-5
Imposition of tax; procedures; rate of tax; ordinance; effectivedate; vote
Sec. 5. (a) Except as provided in subsection (c), the countyeconomic development income tax may be imposed on the adjustedgross income of county taxpayers. The entity that may impose the taxis:
(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 theyear the county economic development income tax is imposed;
(2) the county council if the county adjusted gross income taxis in effect on March 31 of the year the county economicdevelopment 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 countyincome 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) andsection 28 of this chapter, the county economic development incometax 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 developmentincome tax rate plus the county adjusted gross income tax rate, ifany, that are in effect on January 1 of a year may not exceed one andtwenty-five hundredths percent (1.25%). Except as provided insubsection (g), (p), (r), (t), (u), (w), (x), or (y), the county economicdevelopment 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 economicdevelopment income tax, the appropriate body must, after March 31but before August 1 of a year, adopt an ordinance. The ordinance toimpose the tax must substantially state the following:
"The ________ County _________ imposes the county economicdevelopment income tax on the county taxpayers of _________County. The county economic development income tax is imposedat a rate of _________ percent (____%) on the county taxpayers ofthe county. This tax takes effect October 1 of this year.".
(e) Any ordinance adopted under this chapter takes effect October1 of the year the ordinance is adopted.
(f) The auditor of a county shall record all votes taken onordinances presented for a vote under the authority of this chapterand shall, not more than ten (10) days after the vote, send a certifiedcopy of the results to the commissioner of the department by certifiedmail.
(g) This subsection applies to a county having a population ofmore than one hundred forty-eight thousand (148,000) but less thanone hundred seventy thousand (170,000). Except as provided insubsection (p), in addition to the rates permitted by subsection (b),the:
(1) county economic development income tax may be imposedat 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 thecounty 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 imposerates under this subsection and section 22 of this chapter.
(h) For a county having a population of more than forty-onethousand (41,000) but less than forty-three thousand (43,000), exceptas provided in subsection (p), the county economic developmentincome tax rate plus the county adjusted gross income tax rate thatare in effect on January 1 of a year may not exceed one andthirty-five hundredths percent (1.35%) if the county has imposed thecounty adjusted gross income tax at a rate of one and one-tenthpercent (1.1%) under IC 6-3.5-1.1-2.5.
(i) For a county having a population of more than thirteenthousand five hundred (13,500) but less than fourteen thousand(14,000), except as provided in subsection (p), the county economicdevelopment income tax rate plus the county adjusted gross incometax rate that are in effect on January 1 of a year may not exceed oneand fifty-five hundredths percent (1.55%).
(j) For a county having a population of more than seventy-onethousand (71,000) but less than seventy-one thousand four hundred(71,400), except as provided in subsection (p), the county economicdevelopment income tax rate plus the county adjusted gross incometax rate that are in effect on January 1 of a year may not exceed oneand five-tenths percent (1.5%).
(k) This subsection applies to a county having a population ofmore than twenty-seven thousand four hundred (27,400) but less thantwenty-seven thousand five hundred (27,500). Except as provided insubsection (p), in addition to the rates permitted under subsection(b):
(1) the county economic development income tax may beimposed at a rate of twenty-five hundredths percent (0.25%);and
(2) the sum of the county economic development income taxrate and the county adjusted gross income tax rate that are ineffect on January 1 of a year may not exceed one andfive-tenths percent (1.5%);
if the county council makes a determination to impose rates underthis subsection and section 22.5 of this chapter.
(l) For a county having a population of more than twenty-ninethousand (29,000) but less than thirty thousand (30,000), except asprovided in subsection (p), the county economic development incometax rate plus the county adjusted gross income tax rate that are ineffect on January 1 of a year may not exceed one and five-tenthspercent (1.5%).
(m) For:
(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); or
(2) a county having a population of more than forty-fivethousand (45,000) but less than forty-five thousand nine
hundred (45,900);
except as provided in subsection (p), the county economicdevelopment income tax rate plus the county adjusted gross incometax rate that are in effect on January 1 of a year may not exceed oneand 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 insubsection (p), the county economic development income tax rateplus the county adjusted gross income tax rate that are in effect onJanuary 1 of a year may not exceed one and five-tenths percent(1.5%).
(o) This subsection applies to a county having a population ofmore than thirty-nine thousand (39,000) but less than thirty-ninethousand 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 beimposed at a rate of twenty-five hundredths percent (0.25%);and
(2) the sum of the county economic development income taxrate and:
(A) the county adjusted gross income tax rate that are ineffect on January 1 of a year may not exceed one andfive-tenths percent (1.5%); or
(B) the county option income tax rate that are in effect onJanuary 1 of a year may not exceed one and twenty-fivehundredths percent (1.25%);
if the county council makes a determination to impose rates underthis subsection and section 24 of this chapter.
(p) In addition:
(1) the county economic development income tax may beimposed at a rate that exceeds by not more than twenty-fivehundredths percent (0.25%) the maximum rate that wouldotherwise apply under this section; and
(2) the:
(A) county economic development income tax; and
(B) county option income tax or county adjusted grossincome tax;
may be imposed at combined rates that exceed by not more thantwenty-five hundredths percent (0.25%) the maximumcombined rates that would otherwise apply under this section.
However, the additional rate imposed under this subsection may notexceed the amount necessary to mitigate the increased ad valoremproperty taxes on homesteads (as defined in IC 6-1.1-20.9-1 beforeJanuary 1, 2009, or IC 6-1.1-12-37 after December 31, 2008) orresidential property (as defined in section 26 of this chapter), asappropriate under the ordinance adopted by the adopting body in thecounty, resulting from the deduction of the assessed value ofinventory in the county under IC 6-1.1-12-41 or IC 6-1.1-12-42 orfrom the exclusion in 2008 of inventory from the definition ofpersonal property in IC 6-1.1-1-11. (q) If the county economic development income tax is imposed asauthorized under subsection (p) at a rate that exceeds the maximumrate that would otherwise apply under this section, the certifieddistribution must be used for the purpose provided in section 25(e)or 26 of this chapter to the extent that the certified distributionresults from the difference between:
(1) the actual county economic development tax rate; and
(2) the maximum rate that would otherwise apply under thissection.
(r) This subsection applies only to a county described in section27 of this chapter. Except as provided in subsection (p), in additionto the rates permitted by subsection (b), the:
(1) county economic development income tax may be imposedat a rate of twenty-five hundredths percent (0.25%); and
(2) county economic development income tax rate plus thecounty option income tax rate that are in effect on January 1 ofa year may equal up to one and twenty-five hundredths percent(1.25%);
if the county council makes a determination to impose rates underthis subsection and section 27 of this chapter.
(s) Except as provided in subsection (p), the county economicdevelopment income tax rate plus the county adjusted gross incometax rate that are in effect on January 1 of a year may not exceed oneand five-tenths percent (1.5%) if the county has imposed the countyadjusted gross income tax under IC 6-3.5-1.1-3.3.
(t) This subsection applies to Howard County. Except as providedin subsection (p), the sum of the county economic developmentincome tax rate and the county option income tax rate that are ineffect on January 1 of a year may not exceed one and twenty-fivehundredths percent (1.25%).
(u) This subsection applies to Scott County. Except as providedin subsection (p), the sum of the county economic developmentincome tax rate and the county option income tax rate that are ineffect on January 1 of a year may not exceed one and twenty-fivehundredths percent (1.25%).
(v) This subsection applies to Jasper County. Except as providedin subsection (p), the sum of the county economic developmentincome tax rate and the county adjusted gross income tax rate thatare in effect on January 1 of a year may not exceed one andfive-tenths percent (1.5%).
(w) An additional county economic development income tax rateimposed under section 28 of this chapter may not be considered incalculating any limit under this section on the sum of:
(1) the county economic development income tax rate plus thecounty adjusted gross income tax rate; or
(2) the county economic development tax rate plus the countyoption income tax rate.
(x) The income tax rate limits imposed by subsection (c) or (y) orany 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 underIC 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 rateunder subsection (c) or (y) or any other provision of this chapter thatmay be imposed in a county under IC 6-3.5-1.1, IC 6-3.5-6, and thischapter, a county's county adjusted gross income tax rate or countyoption income tax rate for a particular year does not include thecounty adjusted gross income tax rate imposed underIC 6-3.5-1.1-24, IC 6-3.5-1.1-25, or IC 6-3.5-1.1-26 or the countyoption 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 providedin subsection (p), if an ordinance is adopted under IC 6-3.5-6-33, thesum of the county economic development income tax rate and thecounty option income tax rate that are in effect on January 1 of a yearmay 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 increasethe county economic development income tax rate imposed upon thecounty taxpayers as long as the resulting rate does not exceed therates specified in section 5(b) and 5(c) or 5(g) of this chapter. Therate imposed under this section must be adopted at one (1) of therates specified in section 5(b) of this chapter. To decrease or increasethe rate, the appropriate body must, after March 31 but before August1 of a year, adopt an ordinance. The ordinance must substantiallystate the following:
"The ________ County __________ increases (decreases) thecounty economic development income tax rate imposed uponthe county taxpayers of the county from _____ percent (___%)to _____ percent (___%). This tax rate increase (decrease) takeseffect October 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.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 imposedunder this chapter remains in effect until rescinded.
(b) Subject to section 14 of this chapter, the body imposing thecounty economic development income tax may rescind the tax byadopting an ordinance to rescind the tax after March 31 but beforeAugust 1 of a 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.
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 ineffect during a county taxpayer's entire taxable year, then the amountof county economic development income tax that the county taxpayerowes for that taxable year equals the product of:
(1) the amount of county economic development income tax thecounty taxpayer would owe if the tax had been imposed duringthe county taxpayer's entire taxable year; multiplied by
(2) a fraction. The numerator of the fraction equals the numberof days during the county taxpayer's taxable year during whichthe 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 countytaxpayer and a county taxpayer's spouse who file a joint return are)allowed a credit for the elderly or individuals with a total disabilityunder Section 22 of the Internal Revenue Code, the county taxpayeris (or the county taxpayer and the county taxpayer's spouse are)entitled to a credit against the county taxpayer's (or the countytaxpayer's and the county taxpayer's spouse's) county economicdevelopment income tax liability for that same taxable year. Theamount of the credit equals the lesser of: (1) the product of:
(A) the county taxpayer's (or the county taxpayer's and thecounty taxpayer's spouse's) credit for the elderly orindividuals with a total disability for that same taxable year;multiplied by
(B) a fraction. The numerator of the fraction is the countyeconomic development income tax rate imposed against thecounty taxpayer (or against the county taxpayer and thecounty taxpayer's spouse). The denominator of the fractionis fifteen-hundredths (0.15); or
(2) the amount of county economic development income taximposed on the county taxpayer (or the county taxpayer and thecounty taxpayer's spouse).
(b) If a county taxpayer and the county taxpayer's spouse file ajoint return and are subject to different county economicdevelopment income tax rates for the same taxable year, they shallcompute the credit under this section by using the formula providedby subsection (a), except that they shall use the average of the two(2) county economic development income tax rates imposed againstthem 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 shallbe established for each county adopting the county economicdevelopment income tax. Any revenue derived from the impositionof the county economic development income tax by a county shall becredited to that county's account in the state general fund.
(b) Any income earned on money credited to an account undersubsection (a) becomes a part of that account.
(c) Any revenue credited to an account established undersubsection (a) at the end of a fiscal year may not be credited to anyother 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 shallsubmit a report to each county auditor indicating the balance in thecounty's special account as of the cutoff date set by the budgetagency.
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 bythis 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 ofthe amount of county economic development income tax revenue thatthe budget agency determines has been:
(1) received from that county for a taxable year ending beforethe calendar year in which the determination is made; and
(2) reported on an annual return or amended return processedby the department in the state fiscal year ending before July 1of the calendar year in which the determination is made;
as adjusted for refunds of county economic development income taxmade in the state fiscal year plus the amount of interest in thecounty's account that has been accrued and has not been included ina certification made in a preceding year. The amount certified is thecounty's certified distribution, which shall be distributed on the datesspecified in section 16 of this chapter for the following calendaryear.
(c) The amount certified under subsection (b) shall be adjustedunder subsections (d), (e), (f), (g), and (h). The budget agency shallprovide the county council with an informative summary of thecalculations used to determine the certified distribution. Thesummary of calculations must include:
(1) the amount reported on individual income tax returnsprocessed by the department during the previous fiscal year;
(2) adjustments for over distributions in prior years;
(3) adjustments for clerical or mathematical errors in prioryears;
(4) adjustments for tax rate changes; and
(5) the amount of excess account balances to be distributedunder IC 6-3.5-7-17.3.
(d) The budget agency shall certify an amount less than theamount determined under subsection (b) if the budget agencydetermines that the reduced distribution is necessary to offsetoverpayments made in a calendar year before the calendar year of thedistribution. The budget agency may reduce the amount of thecertified distribution over several calendar years so that anyoverpayments are offset over several years rather than in one (1)lump sum.
(e) The budget agency shall adjust the certified distribution of acounty to correct for any clerical or mathematical errors made in anyprevious certification under this section. The budget agency mayreduce the amount of the certified distribution over several calendaryears so that any adjustment under this subsection is offset overseveral years rather than in one (1) lump sum.
(f) The budget agency shall adjust the certified distribution of acounty to provide the county with the distribution required undersection 16(b) of this chapter.
(g) The budget agency shall adjust the certified distribution of acounty to provide the county with the amount of any tax increase
imposed under section 25 or 26 of this chapter to provide additionalhomestead 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 beforeNovember 1 in the same calendar year in which the budget agencymakes a certification under this section. The budget agency shalladjust the certified distribution of a county to provide for adistribution in the immediately following calendar year and in eachcalendar year thereafter. The budget agency shall provide for a fulltransition to certification of distributions as provided in subsection(b)(1) through (b)(2) in the manner provided in subsection (d). If thecounty imposes, increases, decreases, or rescinds a tax or tax rateunder this chapter after the date for which a certification undersubsection (b) is based, the budget agency shall adjust the certifieddistribution of the county after August 1 of the calendar year. Theadjustment shall reflect any other adjustment authorized undersubsections (c), (d), (e), (f), and (g). The adjusted certification shallbe treated as the county's certified distribution for the immediatelysucceeding calendar year. The budget agency shall certify theadjusted certified distribution to the county auditor for the countyand provide the county council with an informative summary of thecalculations that revises the informative summary provided insubsection (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 28of this chapter, the county auditor shall distribute in the mannerspecified in this section the certified distribution to the county.
(b) Except as provided in subsections (c) and (h) and sections 15and 25 of this chapter, and subject to adjustment as provided inIC 36-8-19-7.5, the amount of the certified distribution that thecounty and each city or town in a county is entitled to receive duringMay 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 thecounty, city, or town during the calendar year in which themonth falls; plus
(B) for a county, the welfare allocation amount.
The denominator of the fraction equals the sum of the totalproperty taxes that are first due and payable to the county andall cities and towns of the county during the calendar year inwhich the month falls, plus the welfare allocation amount. Thewelfare allocation amount is an amount equal to the sum of the
property taxes imposed by the county in 1999 for the county'swelfare fund and welfare administration fund and, if the countyreceived a certified distribution under this chapter in 2008, theproperty taxes imposed by the county in 2008 for the county'scounty medical assistance to wards fund, family and children'sfund, children's psychiatric residential treatment services fund,county hospital care for the indigent fund, and children withspecial health care needs county fund.
(c) This subsection applies to a county council or county incometax council that imposes a tax under this chapter after June 1, 1992.The body imposing the tax may adopt an ordinance before July 1 ofa year to provide for the distribution of certified distributions underthis subsection instead of a distribution under subsection (b). Thefollowing 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, theamount of the certified distribution that the county and each cityand town in the county is entitled to receive during May andNovember 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 thefraction equals the population of the city or the town. For acounty, the numerator of the fraction equals the populationof the part of the county that is not located in a city or town.The denominator of the fraction equals the sum of thepopulation of all cities and towns located in the county andthe population of the part of the county that is not located ina city or town.
(3) The ordinance may be made irrevocable for the duration ofspecified lease rental or debt service payments.
(d) The body imposing the tax may not adopt an ordinance undersubsection (c) if, before the adoption of the proposed ordinance, anyof the following have pledged the county economic developmentincome tax for any purpose permitted by IC 5-1-14 or any otherstatute:
(1) The county.
(2) A city or town in the county.
(3) A commission, a board, a department, or an authority that isauthorized by statute to pledge the county economicdevelopment income tax.
(e) The department of local government finance shall provideeach county auditor with the fractional amount of the certifieddistribution that the county and each city or town in the county isentitled to receive under this section.
(f) Money received by a county, city, or town under this sectionshall be deposited in the unit's economic development income taxfund.
(g) Except as provided in subsection (b)(2)(B), in determining thefractional amount of the certified distribution the county and its cities
and towns are entitled to receive under subsection (b) during acalendar year, the department of local government finance shallconsider only property taxes imposed on tangible property subject toassessment in that county.
(h) In a county having a consolidated city, only the consolidatedcity is entitled to the certified distribution, subject to therequirements 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 fora county in which the county economic development tax is imposedshall establish an economic development income tax fund. Except asprovided in sections 23, 25, 26, and 27 of this chapter, the revenuereceived by a county, city, or town under this chapter shall bedeposited in the unit's economic development income tax fund.
(b) As used in this subsection, "homestead" means a homesteadthat is eligible for a standard deduction under IC 6-1.1-12-37. Exceptas provided in sections 15, 23, 25, 26, and 27 of this chapter,revenues from the county economic development income tax may beused as follows:
(1) By a county, city, or town for economic developmentprojects, for paying, notwithstanding any other law, under awritten agreement all or a part of the interest owed by a privatedeveloper or user on a loan extended by a financial institutionor other lender to the developer or user if the proceeds of theloan are or are to be used to finance an economic developmentproject, for the retirement of bonds under section 14 of thischapter for economic development projects, for leases undersection 21 of this chapter, or for leases or bonds entered into orissued prior to the date the economic development income taxwas imposed if the purpose of the lease or bonds would havequalified as a purpose under this chapter at the time the leasewas entered into or the bonds were issued.
(2) By a county, city, or town for:
(A) the construction or acquisition of, or remedial actionwith respect to, a capital project for which the unit isempowered to issue general obligation bonds or establish afund under any statute listed in IC 6-1.1-18.5-9.8; (B) the retirement of bonds issued under any provision ofIndiana law for a capital project;
(C) the payment of lease rentals under any statute for acapital project;
(D) contract payments to a nonprofit corporation whoseprimary corporate purpose is to assist government inplanning and implementing economic development projects;
(E) operating expenses of a governmental entity that plans orimplements economic development projects;
(F) to the extent not otherwise allowed under this chapter,funding substance removal or remedial action in adesignated unit; or
(G) funding of a revolving fund established underIC 5-1-14-14.
(3) By a county, city, or town for any lawful purpose for whichmoney 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 makingtransfers required by IC 36-7.5-4-2. If the county economicdevelopment income tax rate is increased after April 30, 2005,in a county having a population of more than one hundredforty-five thousand (145,000) but less than one hundredforty-eight thousand (148,000), the first three million fivehundred thousand dollars ($3,500,000) of the tax revenue thatresults each year from the tax rate increase shall be used by thecounty or by eligible municipalities (as defined inIC 36-7.5-1-11.3) in the county only to make the county'stransfer required by IC 36-7.5-4-2. The first three million fivehundred thousand dollars ($3,500,000) of the tax revenue thatresults each year from the tax rate increase shall be paid by thecounty treasurer to the treasurer of the northwest Indianaregional development authority under IC 36-7.5-4-2 beforecertified distributions are made to the county or any cities ortowns in the county under this chapter from the tax revenue thatresults each year from the tax rate increase. If a county havinga 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 Indianaregional development authority under IC 36-7.5 but two (2) ormore municipalities in the county have become members of thenorthwest Indiana regional development authority as authorizedby IC 36-7.5-2-3(i), the county treasurer shall continue totransfer the three million five hundred thousand dollars($3,500,000) to the treasurer of the northwest Indiana regionaldevelopment authority under IC 36-7.5-4-2 before certifieddistributions are made to the county or any cities or towns in thecounty. In a county having a population of more than onehundred forty-five thousand (145,000) but less than onehundred forty-eight thousand (148,000), all of the tax revenuethat results each year from the tax rate increase that is in excessof the first three million five hundred thousand dollars
($3,500,000) that results each year from the tax rate increasemust be used by the county and cities and towns in the countyfor homestead credits under subdivision (5).
(5) This subdivision applies only in a county having apopulation 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 atax rate increase described in subdivision (4) that is in excess ofthe first three million five hundred thousand dollars($3,500,000) that results each year from the tax rate increasemust be used by the county and cities and towns in the countyfor homestead credits under this subdivision. The followingapply to homestead credits provided under this subdivision:
(A) The homestead credits must be applied uniformly toprovide a homestead credit for homesteads in the county,city, or town.
(B) The homestead credits shall be treated for all purposesas property tax levies.
(C) The homestead credits shall be applied to the netproperty taxes due on the homestead after the application ofall other assessed value deductions or property taxdeductions and credits that apply to the amount owed underIC 6-1.1.
(D) The department of local government finance shalldetermine the homestead credit percentage for a particularyear based on the amount of county economic developmentincome tax revenue that will be used under this subdivisionto provide homestead credits in that year.
(6) This subdivision applies only in a county having apopulation of more than four hundred thousand (400,000) butless than seven hundred thousand (700,000). A county or a cityor town in the county may use county economic developmentincome tax revenue to provide homestead credits in the county,city, or town. The following apply to homestead creditsprovided under this subdivision:
(A) The county, city, or town fiscal body must adopt anordinance authorizing the homestead credits. The ordinancemust:
(i) be adopted before September 1 of a year to apply toproperty taxes first due and payable in the following year;and
(ii) specify the amount of county economic developmentincome tax revenue that will be used to provide homesteadcredits in the following year.
(B) A county, city, or town fiscal body that adopts anordinance under this subdivision must forward a copy of theordinance to the county auditor and the department of localgovernment finance not more than thirty (30) days after theordinance is adopted.
(C) The homestead credits must be applied uniformly to
increase the homestead credit under IC 6-1.1-20.9 forhomesteads in the county, city, or town (for property taxesfirst due and payable before January 1, 2009) or to providea homestead credit for homesteads in the county, city, ortown (for property taxes first due and payable afterDecember 31, 2008).
(D) The homestead credits shall be treated for all purposesas property tax levies.
(E) The homestead credits shall be applied to the netproperty taxes due on the homestead after the application ofall other assessed value deductions or property taxdeductions and credits that apply to the amount owed underIC 6-1.1.
(F) The department of local government finance shalldetermine the homestead credit percentage for a particularyear based on the amount of county economic developmentincome tax revenue that will be used under this subdivisionto provide homestead credits in that year.
(7) For a regional venture capital fund established under section13.5 of this chapter or a local venture capital fund establishedunder section 13.6 of this chapter.
(8) This subdivision applies only to a county:
(A) that has a population of more than one hundred tenthousand (110,000) but less than one hundred fifteenthousand (115,000); and
(B) in which:
(i) the county fiscal body has adopted an ordinance underIC 36-7.5-2-3(e) providing that the county is joining thenorthwest 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) providingthat the city is joining the development authority.
Revenue from the county economic development income taxmay be used by a county or a city described in this subdivisionfor making transfers required by IC 36-7.5-4-2. In addition, ifthe county economic development income tax rate is increasedafter June 30, 2006, in the county, the first three million fivehundred thousand dollars ($3,500,000) of the tax revenue thatresults each year from the tax rate increase shall be used by thecounty only to make the county's transfer required byIC 36-7.5-4-2. The first three million five hundred thousanddollars ($3,500,000) of the tax revenue that results each yearfrom the tax rate increase shall be paid by the county treasurerto the treasurer of the northwest Indiana regional developmentauthority under IC 36-7.5-4-2 before certified distributions aremade to the county or any cities or towns in the county underthis chapter from the tax revenue that results each year from thetax rate increase. All of the tax revenue that results each yearfrom the tax rate increase that is in excess of the first threemillion five hundred thousand dollars ($3,500,000) that results
each year from the tax rate increase must be used by the countyand cities and towns in the county for homestead credits undersubdivision (9).
(9) This subdivision applies only to a county described insubdivision (8). All of the tax revenue that results each yearfrom a tax rate increase described in subdivision (8) that is inexcess of the first three million five hundred thousand dollars($3,500,000) that results each year from the tax rate increasemust be used by the county and cities and towns in the countyfor homestead credits under this subdivision. The followingapply to homestead credits provided under this subdivision:
(A) The homestead credits must be applied uniformly toprovide a homestead credit for homesteads in the county,city, or town.
(B) The homestead credits shall be treated for all purposesas property tax levies.
(C) The homestead credits shall be applied to the netproperty taxes due on the homestead after the application ofall other assessed value deductions or property taxdeductions and credits that apply to the amount owed underIC 6-1.1.
(D) The department of local government finance shalldetermine the homestead credit percentage for a particularyear based on the amount of county economic developmentincome tax revenue that will be used under this subdivisionto provide homestead credits in that year.
(c) As used in this section, an economic development project isany project that:
(1) the county, city, or town determines will:
(A) promote significant opportunities for the gainfulemployment of its citizens;
(B) attract a major new business enterprise to the unit; or
(C) retain or expand a significant business enterprise withinthe 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 buildingsand 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 undersection 14 of this chapter or leases in effect under section 21 of thischapter, a county, city, or town may not expend money from itseconomic development income tax fund for a purpose authorizedunder subsection (b)(3) in a manner that would adversely affectowners 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 andmunicipalities in Indiana have a need to foster economicdevelopment, the development of new technology, and industrial andcommercial growth. The general assembly finds that it is necessaryand proper to provide an alternative method for counties andmunicipalities 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 newtechnology under this section or section 13.6 of this chapter for thebenefit of the general public, including industrial and commercialenterprises, is a public purpose.
(b) The fiscal bodies of two (2) or more counties or municipalitiesmay, by resolution, do the following:
(1) Determine that part or all the taxes received by the unitsunder 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 fundestablished under subsection (b) may deposit the following in thefund:
(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 agoverning board. The expenses of administering the fund shall be
paid from money in the fund. The governing board shall invest themoney in the fund not currently needed to meet the obligations of thefund in the same manner as other public money may be invested.Interest that accrues from these investments shall be deposited intothe fund. The fund is subject to an annual audit by the state board ofaccounts. The fund shall bear the full costs of the audit.
(e) The fiscal body of each participating unit shall approve aninterlocal agreement created under IC 36-1-7 establishing the termsfor the administration of the regional venture capital fund. The termsmust 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 governingboard may loan or grant money from the fund.
(4) The procedures for the dissolution of the fund and for thedistribution of money remaining in the fund at the time of thedissolution.
(f) An interlocal agreement made by the participating units undersubsection (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 abipartisan basis so that the number of the members of thegoverning board who are members of one (1) political partymay not exceed the number of members of the governing boardrequired to establish a quorum.
(g) A majority of the governing board constitutes a quorum, andthe concurrence of a majority of the governing board is necessary toauthorize any action.
(h) An interlocal agreement made by the participating units undersubsection (e) must be submitted to the Indiana economicdevelopment corporation for approval before the participating unitsmay contribute to the fund.
(i) A majority of members of a governing board of a regionalventure capital fund established under this section must have at leastfive (5) years of experience in business, finance, or venture capital.
(j) The governing board of the fund may loan or grant money fromthe fund to a private or public entity if the governing board finds thatthe loan or grant will be used by the borrower or grantee for at leastone (1) of the following economic development purposes:
(1) To promote significant employment opportunities for theresidents of the units participating in the regional venturecapital fund.
(2) To attract a major new business enterprise to a participatingunit.
(3) To develop, retain, or expand a significant businessenterprise in a participating unit.
(k) The expenditures of a borrower or grantee of money from aregional venture capital fund that are considered to be for aneconomic development pur