CHAPTER 17. REGIONAL TRANSPORTATION IMPROVEMENT INCOME TAX
IC 8-24-17
Chapter 17. Regional Transportation Improvement Income Tax
IC 8-24-17-1
Authority to impose tax on member county taxpayers
Sec. 1. (a) An improvement tax may be imposed on the adjustedgross income of county taxpayers by the board. To impose theimprovement tax, the board must first request a determination of theimprovement tax rate that may be imposed in each county undersection 2 of this chapter.
(b) The bus service board and the commuter rail service boardshall make recommendations to the board regarding the part of theimprovement income tax rate in each county that shall be dedicatedto the bus service division and to the commuter rail service division.
As added by P.L.182-2009(ss), SEC.282.
IC 8-24-17-2
Maximum member county tax rate
Sec. 2. A county's improvement tax rate in a member county maynot exceed the lesser of twenty-five hundredths percent (0.25%) orthe rate for that member county as determined under section 3 of thischapter.
As added by P.L.182-2009(ss), SEC.282.
IC 8-24-17-3
Required findings to impose tax; certifications; adjustments
Sec. 3. (a) If the board desires to impose the improvement tax, theboard must first make written findings concerning the following:
(1) The value of the public transportation facilities of thedistrict and the service divisions that the board proposes to putin service after December 31, 2009, and to be allocated to eachmember county.
(2) The total amount of the capital needs of the district and theservice divisions for the five (5) year period beginning in theyear of the request, reduced by the amount of capital costs thatwill be paid from sources other than the improvement tax.
(3) The annual amount of capital costs that the board proposesto be allocated to each member county for the five (5) yearperiod beginning in the year of the request, reduced by theamount of capital costs that will be paid from sources other thanthe improvement tax. In determining the amount to propose forcapital costs to be allocated to each member county, the boardshall allocate the capital costs according to a formulaestablished by the board that reflects the benefit received by thecounty from the capital costs in facilitating public transportationin the county and to and from the county.
(4) The total amount of the operating needs of the district andservice districts for the five (5) year period beginning in theyear of the request, reduced by the amount of operatingexpenses that will be paid from sources other than the
improvement tax.
(5) The annual amount of operating expenses that the boardproposes to be allocated to each member county for the five (5)year period beginning in the year of the request, using the totalnumber of passengers and total miles traveled by individualsusing public transportation within each member county that isprovided by the district, reduced by the amount of operatingexpenses that will be paid from sources other than theimprovement tax.
(b) In determining capital and operating costs under subsection(a), the costs shall be allocated, as determined by the board, to thecapital expenses and operation costs of the district's commuter railservice division and the district's bus service division.
(c) Based on the findings under subsection (a) and the requiredallocation under subsection (b), the board shall make a determinationand certify to the department the improvement tax rate that will benecessary for each year of the five (5) year period in each membercounty to pay for both the annual capital costs and annual operatingexpenses that are allocated to that member county. The rate imposedin a member county must be sufficient to raise the annual capitalcosts and annual operating expenses allocated to the county.
(d) A determination under this section shall be made using thebest information available. The budget agency shall assist the boardin computing the appropriate tax rates for each member county.
(e) The board may adopt a resolution adjusting the tax rate in amember county if the rates are too low to pay for both the annualcapital costs and annual operating expenses that are allocated to eachmember county.
(f) The budget agency may cause a new determination to be madeif:
(1) the budget director finds that the actual annual capital costsand annual operating expenses are less than the improvementtax revenue for two (2) consecutive years such that theimprovement tax rate could be reduced by at leastfive-hundredths percent (0.05%) for a member county; or
(2) it has been more than three (3) years since the previousdetermination was made.
If a new determination under this subsection results in theimprovement tax rate for each member county being at leastfive-hundredths percent (0.05%) less than the rate in effect in theyear the new determination is made, the rate for each member countyis reduced to the new rate without any action by the board. The newrate takes effect October 1 of the year of the new determination. Thebudget agency shall certify the new improvement tax rate to theboard and the department.
As added by P.L.182-2009(ss), SEC.282.
IC 8-24-17-4
Required notice and resolution to impose tax
Sec. 4. (a) To impose the improvement tax, the board must first
publish a notice in each member county in accordance with IC 5-3-1.In addition to the requirements of IC 5-3-1, the notice must include:
(1) a clear and concise statement that the board will beconsidering the imposition of the regional transportationimprovement tax at the meeting; and
(2) the content of the proposed resolution to impose theimprovement tax.
(b) To impose the improvement tax, the board must, after March31 but before August 1 of a year, adopt a resolution. The resolutionto impose the tax must include the rate for each member county andsubstantially state the following for each member county:
"The Northern Indiana Regional Transportation Districtimposes the regional transportation improvement tax on thecounty taxpayers of _________ County. The improvement taxis imposed at a rate of _________ percent (____%) of taxableincome. This tax takes effect October 1 of this year.".
As added by P.L.182-2009(ss), SEC.282.
IC 8-24-17-5
Power to increase or decrease tax rate; required notice andresolution
Sec. 5. (a) The board may increase or decrease the improvementtax rate imposed upon the county taxpayers in each member countyas long as the resulting rate does not exceed the rate certified undersection 3 of this chapter.
(b) To increase the improvement tax rate, the board must firstpublish a notice in each member county in accordance with IC 5-3-1.In addition to the requirements of IC 5-3-1, the notice must includethe content of the proposed resolution to increase the improvementtax rate.
(c) To decrease or increase the rate, the board must, after March31 but before August 1 of a year, adopt a resolution. The resolutionto increase or decrease the tax must include the rate for each membercounty and substantially state the following for each member county:
"The Northern Indiana Regional Transportation Districtincreases (decreases) the regional transportation improvementtax rate imposed upon the county taxpayers of______________________ County from _____ percent (___%)to _____ percent (___%) of taxable income. This tax rateincrease (decrease) takes effect October 1 of this year.".
As added by P.L.182-2009(ss), SEC.282.
IC 8-24-17-6
Tax effective until rescinded; required resolution to rescind
Sec. 6. (a) The improvement tax imposed under this chapterremains in effect until rescinded.
(b) The board may rescind the tax by adopting a resolution torescind the tax after March 31 but before August 1 of a year.
As added by P.L.182-2009(ss), SEC.282.
IC 8-24-17-7
Effective date of resolutions
Sec. 7. (a) Any resolution adopted under this chapter takes effectOctober 1 of the year the resolution is adopted.
(b) The secretary of the board shall record all votes taken onresolutions 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 department and the budget director bycertified mail.
As added by P.L.182-2009(ss), SEC.282.
IC 8-24-17-8
Special account for tax revenue
Sec. 8. (a) A special account within the state general fund shall beestablished for the district. Any revenue derived from the impositionof the improvement tax shall be credited to the district's account inthe 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. Money in the district'saccount is appropriated to make distributions required by thischapter.
As added by P.L.182-2009(ss), SEC.282.
IC 8-24-17-9
Revenue distribution
Sec. 9. (a) Revenue derived from the imposition of theimprovement tax shall be distributed to the treasurer of the board.
(b) Before August 2 of each calendar year, the budget agencyshall certify to the treasurer of the board the amount of improvementtax revenue that the department determines has been:
(1) received for the district for the 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.
The amount shall be adjusted as provided in this section. The amountcertified is the district's certified distribution for the followingcalendar year.
(c) The budget agency shall adjust the amount determined undersubsection (b) for:
(1) refunds of improvement tax made in the state fiscal year;and
(2) the amount of interest in the district's special account thathas been accrued but has not been included in a certificationmade in a preceding year.
(d) The budget agency shall certify an amount that is less than theamount determined under subsection (c) if the budget agency
determines 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 certify an amount that is more thanthe amount determined under subsection (c) if the budget agencydetermines that the increased distribution is necessary to offsetunderpayments made in a calendar year before the calendar year ofthe distribution.
(f) The budget agency shall adjust the certified distribution of thedistrict 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 reduction under this subsection is offset overseveral years rather than in one (1) lump sum.
(g) This subsection applies if the district:
(1) initially imposed the improvement tax; or
(2) increases the improvement tax rate;
under this chapter and the tax or increased rate takes effect in thesame calendar year in which the budget agency makes a certificationunder this section. The budget agency shall adjust the certifieddistribution of a county to provide for a distribution in theimmediately following calendar year.
(h) The budget agency shall provide to the treasurer of the boardan informative summary of the calculations used to determine thecertified distribution. The summary of calculations must include thefollowing:
(1) The amount reported on individual income tax returnsprocessed by the department during the previous state fiscalyear.
(2) Adjustments for:
(A) refunds;
(B) special account interest;
(C) over or under distributions in prior years;
(D) clerical or mathematical errors in prior years; and
(E) tax rate changes.
(3) The balance in the district's special account as of the cutoffdate set by the budget agency.
(i) One-twelfth (1/12) of a district's certified distribution for acalendar year shall be distributed from the district's account to thetreasurer of the board each month.
As added by P.L.182-2009(ss), SEC.282.
IC 8-24-17-10
Revenue deposited in capital, operating, and reserve accounts
Sec. 10. The district shall deposit the amount received under thischapter as follows:
(1) An amount equal to the budgeted annual capital costs as
certified by the budget agency in a separate capital account.
(2) An amount equal to the budgeted operating expenses ascertified by the budget agency in a separate operating account.
(3) Any part of a distribution remaining after making thedeposits required under subdivisions (1) and (2) shall bedeposited in a separate reserve account.
As added by P.L.182-2009(ss), SEC.282.
IC 8-24-17-11
Determination of taxpayer residency and principal place ofbusiness
Sec. 11. (a) For purposes of this chapter, an individual shall betreated as a resident of the county in which the individual:
(1) maintains a home if the individual maintains only one (1)home in Indiana;
(2) if subdivision (1) does not apply, is registered to vote;
(3) if subdivisions (1) and (2) do not apply, registers theindividual's personal automobile; or
(4) if subdivisions (1), (2), and (3) do not apply, spends themajority of the individual's time in Indiana during the taxableyear in question.
(b) The residence or principal place of business or employment ofan individual is to be determined on January 1 of the calendar yearin which the individual's taxable year commences. If an individualchanges the location of the individual's residence or principal placeof employment or business to another county in Indiana during acalendar year, the individual's liability for improvement tax is notaffected.
As added by P.L.182-2009(ss), SEC.282.
IC 8-24-17-12
Computation of tax in effect for a partial year
Sec. 12. If the improvement tax is not in effect during a countytaxpayer's entire taxable year, the amount of improvement tax thatthe county taxpayer owes for that taxable year equals the product of:
(1) the amount of improvement tax the county taxpayer wouldowe if the tax had been imposed during the county taxpayer'sentire taxable year; multiplied by
(2) a fraction, the:
(A) numerator of which equals the number of days duringthe county taxpayer's taxable year during which theimprovement tax was in effect; and
(B) denominator of which equals three hundred sixty-five(365).
As added by P.L.182-2009(ss), SEC.282.
IC 8-24-17-13
Credit for the elderly; computation
Sec. 13. (a) If for the taxable year a county taxpayer is (or acounty taxpayer and the county taxpayer's spouse who file a joint
return are) allowed a credit for the elderly or individuals with a totaldisability under Section 22 of the Internal Revenue Code, the countytaxpayer is (or the county taxpayer and the county taxpayer's spouseare) entitled to a credit against the county taxpayer's (or the countytaxpayer's and the county taxpayer's spouse's) improvement taxliability for that same taxable year. The amount of the credit equalsthe 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:
(i) numerator of which is the improvement tax rateimposed against the county taxpayer (or against the countytaxpayer and the county taxpayer's spouse); and
(ii) denominator of which is fifteen-hundredths (0.15); or
(2) the amount of improvement tax imposed on the countytaxpayer (or the county taxpayer and the county taxpayer'sspouse).
(b) If a county taxpayer and the county taxpayer's spouse file ajoint return and are subject to different improvement tax rates for thesame taxable year, they shall compute the credit under this section byusing the formula provided by subsection (a), except that they shalluse the average of the two (2) improvement tax rates imposed againstthem as the numerator referred to in subsection (a)(1)(B)(i).
As added by P.L.182-2009(ss), SEC.282.
IC 8-24-17-14
Adjusted gross income tax provisions; applicability; employer'sannual withholding report
Sec. 14. (a) Except as otherwise provided in this chapter, allprovisions of the adjusted gross income tax law (IC 6-3) concerning:
(1) definitions;
(2) declarations of estimated tax;
(3) filing of returns;
(4) remittances;
(5) incorporation of the provisions of the Internal RevenueCode;
(6) penalties and interest;
(7) exclusion of military pay credits for withholding; and
(8) exemptions and deductions;
apply to the imposition, collection, and administration of theimprovement tax.
(b) IC 6-3-1-3.5(a)(6), IC 6-3-3-3, IC 6-3-3-5, and IC 6-3-5-1 donot apply to the improvement tax.
(c) Notwithstanding subsections (a) and (b), each employer shallreport to the department the amount of withholdings of theimprovement tax attributable to each county. This report shall besubmitted to the department: (1) each time the employer remits to the department the tax thatis withheld; and
(2) annually along with the employer's annual withholdingreport.
As added by P.L.182-2009(ss), SEC.282.
IC 8-24-17-15
Improvement tax considered a listed tax and an income tax
Sec. 15. The improvement tax is a listed tax and an income tax forthe purposes of IC 6-8.1.
As added by P.L.182-2009(ss), SEC.282.