CHAPTER 8. FINANCIAL INSTITUTIONS TAX FUND
IC 6-5.5-8
Chapter 8. Financial Institutions Tax Fund
IC 6-5.5-8-1
Establishment; purpose; investment of money in fund; reversionof funds
Sec. 1. (a) The financial institutions tax fund is established for thepurpose of making distributions to counties and for providingrevenue for state appropriations. The fund shall be administered bythe treasurer of state.
(b) The treasurer of state shall invest the money in the fund notcurrently needed to meet the obligations of the fund in the samemanner as other public funds may be invested.
(c) Money in the fund at the end of a fiscal year does not revert tothe state general fund.
As added by P.L.347-1989(ss), SEC.1.
IC 6-5.5-8-2
Quarterly distributions to counties; amount; supplementaldistributions
Sec. 2. (a) On or before February 1, May 1, August 1, andDecember 1 of each year the auditor of state shall transfer to eachcounty auditor for distribution to the taxing units (as defined inIC 6-1.1-1-21) in the county, an amount equal to one-fourth (1/4) ofthe sum of the guaranteed amounts for all the taxing units of thecounty. On or before August 1 of each year the auditor of state shalltransfer to each county auditor the supplemental distribution for thecounty for the year.
(b) For purposes of determining distributions under subsection(c), the department of local government finance shall determine astate welfare allocation and tuition support allocation for each countycalculated as follows:
(1) The state welfare allocation for each county equals thegreater of zero (0) or the amount determined under thefollowing formula:
STEP ONE: For 1997, 1998, and 1999, determine the resultof:
(i) the amounts appropriated by the county in the year forthe county's county welfare fund and county welfareadministration fund; divided by
(ii) the amounts appropriated by all the taxing units in thecounty in the year.
STEP TWO: Determine the sum of the results determined inSTEP ONE.
STEP THREE: Divide the STEP TWO result by three (3).
STEP FOUR: Determine the amount that would otherwisebe distributed to the county under subsection (c) withoutregard to this subdivision.
STEP FIVE: Determine the result of:
(i) the STEP FOUR amount; multiplied by (ii) the STEP THREE result.
STEP SIX: For 2006, 2007, and 2008, determine the resultof:
(i) the tax rate imposed by the county in the year for thecounty's county medical assistance to wards fund, familyand children's fund, children's psychiatric residentialtreatment services fund, county hospital care for theindigent fund, and children with special health care needscounty fund, plus, in the case of Marion County, the taxrate imposed by the health and hospital corporation thatwas necessary to raise thirty-five million dollars($35,000,000) from all taxing districts in the county;divided by
(ii) the aggregate tax rate imposed by the county unit inthe year plus, in the case of Marion County, the aggregatetax rate imposed by the health and hospital corporation inthe year.
STEP SEVEN: Determine the sum of the STEP SIXamounts.
STEP EIGHT: Divide the STEP SEVEN result by three (3).
STEP NINE: Determine the amount that would otherwise bedistributed to the county under subsection (c) without regardto this subdivision.
STEP TEN: Determine the result of:
(i) the STEP EIGHT amount; multiplied by
(ii) the STEP NINE result.
STEP ELEVEN: Determine the sum of the STEP FIVEamount and the STEP TEN amount.
(2) The tuition support allocation for each school corporationequals the greater of zero (0) or the amount determined underthe following formula:
STEP ONE: For 2006, 2007, and 2008, determine the resultof:
(i) the tax rate imposed by the school corporation in theyear for the tuition support levy under IC 6-1.1-19-1.5(repealed) or IC 20-45-3-11 (repealed) for the schoolcorporation's general fund plus the tax rate imposed by theschool corporation for the school corporation's specialeducation preschool fund; divided by
(ii) the aggregate tax rate imposed by the schoolcorporation in the year.
STEP TWO: Determine the sum of the results determinedunder STEP ONE.
STEP THREE: Divide the STEP TWO result by three (3).
STEP FOUR: Determine the amount that would otherwisebe distributed to the school corporation under subsection (c)without regard to this subdivision.
STEP FIVE: Determine the result of:
(i) the STEP FOUR amount; multiplied by
(ii) the STEP THREE result. (3) The state welfare allocation and tuition support allocationshall be deducted from the distributions otherwise payableunder subsection (c) to the county taxing unit and schoolcorporations in the county and shall be deposited in a fund, asdirected by the budget agency.
(c) A taxing unit's guaranteed distribution for a year is the greaterof zero (0) or an amount equal to:
(1) the amount received by the taxing unit under IC 6-5-10(repealed) and IC 6-5-11 (repealed) in 1989; minus
(2) the amount to be received by the taxing unit in the year ofthe distribution, as determined by the department of localgovernment finance, from property taxes attributable to thepersonal property of banks, exclusive of the property taxesattributable to personal property leased by banks as the lessorwhere the possession of the personal property is transferred tothe lessee; minus
(3) in the case of a taxing unit that is a county, the amount thatwould have been received by the taxing unit in the year of thedistribution, as determined by the department of localgovernment finance from property taxes that:
(A) were calculated for the county's county welfare fund andcounty welfare administration fund for 2000 but were notimposed because of the repeal of IC 12-19-3 and IC 12-19-4;and
(B) would have been attributable to the personal property ofbanks, exclusive of the property taxes attributable topersonal property leased by banks as the lessor where thepossession of the personal property is transferred to thelessee.
(d) The amount of the supplemental distribution for a county fora year shall be determined using the following formula:
STEP ONE: Determine the greater of zero (0) or the differencebetween:
(A) one-half (1/2) of the taxes that the department estimateswill be paid under this article during the year; minus
(B) the sum of all the guaranteed distributions, before thesubtraction of all state welfare allocations and tuitionsupport allocations under subsection (b), for all taxing unitsin all counties plus the bank personal property taxes to bereceived by all taxing units in all counties, as determinedunder subsection (c)(2) for the year.
STEP TWO: Determine the quotient of:
(A) the amount received under IC 6-5-10 (repealed) andIC 6-5-11 (repealed) in 1989 by all taxing units in thecounty; divided by
(B) the sum of the amounts received under IC 6-5-10(repealed) and IC 6-5-11 (repealed) in 1989 by all taxingunits in all counties.
STEP THREE: Determine the product of:
(A) the amount determined in STEP ONE; multiplied by (B) the amount determined in STEP TWO.
STEP FOUR: Determine the greater of zero (0) or thedifference between:
(A) the amount of supplemental distribution determined inSTEP THREE for the county; minus
(B) the amount of refunds granted under IC 6-5-10-7(repealed) that have yet to be reimbursed to the state by thecounty treasurer under IC 6-5-10-13 (repealed).
For the supplemental distribution made on or before August 1 ofeach year, the department shall adjust the amount of each county'ssupplemental distribution to reflect the actual taxes paid under thisarticle for the preceding year.
(e) Except as provided in subsections (g) and (h), the amount ofthe supplemental distribution for each taxing unit shall be determinedusing the following formula:
STEP ONE: Determine the quotient of:
(A) the amount received by the taxing unit under IC 6-5-10(repealed) and IC 6-5-11 (repealed) in 1989; divided by
(B) the sum of the amounts used in STEP ONE (A) for alltaxing units located in the county.
STEP TWO: Determine the product of:
(A) the amount determined in STEP ONE; multiplied by
(B) the supplemental distribution for the county, asdetermined in subsection (d), STEP FOUR.
(f) The county auditor shall distribute the guaranteed andsupplemental distributions received under subsection (a) to the taxingunits in the county at the same time that the county auditor makes thesemiannual distribution of real property taxes to the taxing units.
(g) The amount of a supplemental distribution paid to a taxingunit that is a county shall be reduced by an amount equal to:
(1) an amount equal to:
(A) the amount the county would receive under subsection(e) without regard to this subsection; multiplied by
(B) the result of the following:
(i) Determine the amounts appropriated by the county in1997, 1998, and 1999 for the county's county welfare fundand county welfare administration fund, divided by theotal amounts appropriated by all the taxing units in thecounty in the year.
(ii) Divide the amount determined in item (i) by three (3);plus
(2) the amount the county would receive under subsection (e)without regard to this subsection multiplied by the resultdetermined under the following formula:
(A) Determine the result of:
(i) the tax rate imposed by the county in 2006, 2007, and2008 for the county's county medical assistance to wardsfund, family and children's fund, children's psychiatricresidential treatment services fund, county hospital carefor the indigent fund, children with special health care
needs county fund, plus, in the case of Marion County, thetax rate imposed by the health and hospital corporationthat was necessary to raise thirty-five million dollars($35,000,000) from all taxing districts in the county;divided by
(ii) the aggregate tax rate imposed by the county in theyear plus, in the case of Marion County, the aggregate taxrate imposed by the health and hospital corporation in theyear.
(B) Divide the clause (A) amount by three (3).
(h) The amount of a supplemental distribution paid to a schoolcorporation shall be reduced by an amount equal to:
(1) the amount the school corporation would receive undersubsection (e) without regard to this subsection; minus
(2) an amount equal to:
(A) the amount described in subdivision (1); multiplied by
(B) the result of the following formula:
(i) Determine the tax rate imposed by the schoolcorporation in 2006, 2007, and 2008 for the tuition supportlevy under IC 6-1.1-19-1.5 (repealed) or IC 20-45-3-11(repealed) for the school corporation's general fund plusthe tax rate imposed by the school corporation for theschool corporation's special education preschool fund,divided by the aggregate tax rate imposed by the schoolcorporation in the year.
(ii) Divide the item (i) amount by three (3).
(i) The amounts deducted under subsections (g) and (h) shall bedeposited in a state fund, as directed by the budget agency.
As added by P.L.347-1989(ss), SEC.1. Amended by P.L.21-1990,SEC.32; P.L.61-1991, SEC.5; P.L.68-1991, SEC.16; P.L.273-1999,SEC.58; P.L.90-2002, SEC.303; P.L.192-2002(ss), SEC.129;P.L.146-2008, SEC.351.
IC 6-5.5-8-3
Guaranteed and supplemental distributions; certified amounts
Sec. 3. (a) Before January 15, April 15, July 15, and November 15of each year the department shall certify to the auditor of state theamount of the next quarterly guaranteed distribution for counties.Before July 15 of each year the department shall certify to the auditorof state the amount of the August 1 supplemental distribution forcounties. The certified amounts shall be based on the bestinformation available to the department.
(b) In order to make the distributions required by this chapter, theauditor of state shall draw warrants on the financial institutions taxfund payable to the county, and the treasurer of state shall pay thewarrants.
As added by P.L.347-1989(ss), SEC.1. Amended by P.L.21-1990,SEC.33.
IC 6-5.5-8-4 Appropriation
Sec. 4. There is appropriated from the financial institutions taxfund an amount necessary to make the distributions required by thischapter.
As added by P.L.347-1989(ss), SEC.1.