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Statutes > Indiana > Title6 > Ar3.5 > Ch1.1

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 is given in IC 6-3-1-3.5(a), except that in the case of a county taxpayer who is not a resident of a county that has imposed the county adjusted gross income tax, the term includes only adjusted gross income derived from the taxpayer's principal place of business or employment.
    "Apartment complex" means real property consisting of at least five (5) units that are regularly used to rent or otherwise furnish residential accommodations for periods of at least thirty (30) days.
    "Civil taxing unit" means any entity having the power to impose ad valorem property taxes except a school corporation. The term does not include a solid waste management district that is not entitled to a distribution under section 1.3 of this chapter. However, in the case of a consolidated city, the term "civil taxing unit" includes the consolidated city and all special taxing districts, all special service districts, and all entities whose budgets and property tax levies are subject to review under IC 36-3-6-9.
    "County council" includes the city-county council of a consolidated city.
    "County taxpayer" as it relates to a county for a year means any individual:
        (1) who resides in that county on the date specified in section 16 of this chapter; or
        (2) who maintains the taxpayer's principal place of business or employment in that county on the date specified in section 16 of this chapter and who does not on that same date reside in another county in which the county adjusted gross income tax, the county option income tax, or the county economic development income tax is in effect.
    "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 year means any county taxpayer for that county for that year who is not a resident 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 year means any county taxpayer who resides in that county on the date specified in section 16 of this chapter.
    "Residential rental property" means real property consisting of not more than four (4) units that are regularly used to rent or otherwise furnish residential accommodations for periods of at least thirty (30)

days.
    "School corporation" means any public school corporation established 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 distribution made to a county under this chapter among the civil taxing units and school corporations in the county, the allocation amount for a civil taxing unit or school corporation is the amount determined using the following formula:
        STEP ONE: Determine the sum of the total property taxes being collected by the civil taxing unit or school corporation during the calendar year of the distribution.
        STEP TWO: Determine the sum of the following:
            (A) Amounts appropriated from property taxes to pay the principal of or interest on any debenture or other debt obligation issued after June 30, 2005, other than an obligation described in subsection (b).
            (B) Amounts appropriated from property taxes to make payments on any lease entered into after June 30, 2005, other than a lease described in subsection (c).
            (C) The proceeds of any property that are:
                (i) received as the result of the issuance of a debt obligation described in clause (A) or a lease described in clause (B); and
                (ii) appropriated from property taxes for any purpose other than to refund or otherwise refinance a debt obligation or lease described in subsection (b) or (c).
        STEP THREE: Subtract the STEP TWO amount from the STEP ONE amount.
        STEP FOUR: Determine the sum of:
            (A) the STEP THREE amount; plus
            (B) the civil taxing unit's or school corporation's certified distribution for the previous calendar year.
The allocation amount is subject to adjustment as provided in IC 36-8-19-7.5.
    (b) Except as provided in this subsection, an appropriation from property taxes to repay interest and principal of a debt obligation is not deducted from the allocation amount for a civil taxing unit or school 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 issued before July 1, 2005. However, an appropriation from property taxes related to a debt obligation issued after June 30, 2005, is deducted if the debt extends payments on a debt or lease beyond the time in which the debt or lease would have been payable if the debt or lease

had not been refinanced or increases the total amount that must be paid on a debt or lease in excess of the amount that would have been paid if the debt or lease had not been refinanced. The amount of the deduction is the annual amount for each year of the extension period or the annual amount of the increase over the amount that would have been paid.
    (c) Except as provided in this subsection, an appropriation from property taxes to make payments on a lease is not deducted from the allocation 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 lease entered into after June 30, 2005, is deducted if the lease extends payments on a debt or lease beyond the time in which the debt or lease would have been payable if the debt or lease had not been refinanced or increases the total amount that must be paid on a debt or lease in excess of the amount that would have been paid if the debt or lease had not been refinanced. The amount of the deduction is the annual amount for each year of the extension period or the annual amount 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 waste management district (as defined in IC 13-11-2-47) or a joint solid waste management district (as defined in IC 13-11-2-113).
    (b) A district may not receive a distribution under this chapter unless a majority of the members of each of the county fiscal bodies of the counties within the district passes a resolution approving the distribution.
    (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 or rescinds 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 homestead credit or property tax replacement credit authorized under this chapter;
may be exercised at any time in a year before November 1 of that

year.
    (b) Notwithstanding any other provision of this chapter, an ordinance authorized by this chapter that imposes or increases a tax or a tax rate takes effect as follows:
        (1) An ordinance adopted after December 31 of the immediately preceding year and before October 1 of the current year takes effect October 1 of the current year.
        (2) An ordinance adopted after September 30 and before October 16 of the current year takes effect November 1 of the current year.
        (3) An ordinance adopted after October 15 and before November 1 of the current year takes effect December 1 of the current year.
    (c) Notwithstanding any other provision of this chapter, an ordinance authorized by this chapter that decreases or rescinds a tax or a tax rate takes effect as follows:
        (1) An ordinance adopted after December 31 of the immediately preceding year and before October 1 of the current year takes effect on the later of October 1 of the current year or the first day of the month in the current year as the month in which the last increase in the tax or tax rate occurred.
        (2) An ordinance adopted after September 30 and before October 16 of the current year takes effect on the later of November 1 of the current year or the first day of the month in the current year as the month in which the last increase in the tax or tax rate occurred.
        (3) An ordinance adopted after October 15 and before November 1 of the current year takes effect December 1 of the current year.
    (d) Notwithstanding any other provision of this chapter, an ordinance authorized by this chapter that grants, increases, decreases, rescinds, or changes a homestead credit or property tax replacement credit authorized under this chapter takes effect for and applies to property taxes first due and payable in the year immediately following the year in which the ordinance is adopted.
As added by P.L.113-2010, SEC.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 county option income tax will not be in effect on October 1 of a year under an ordinance adopted during a previous calendar year may impose the county adjusted gross income tax on the adjusted gross income of 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 gross income 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%) on the 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 of one-fourth of one percent (0.25%) on their adjusted gross income. If the county council elects to decrease the county adjusted gross income tax, the county council may decrease the county adjusted gross income tax rate in increments of one-tenth of one percent (0.1%).
    (c) To impose the county adjusted gross income tax, the county council must, after March 31 but before August 1 of a year, adopt an ordinance. The ordinance must substantially state the following:
        "The ________ County Council imposes the county adjusted gross 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 the county and one-fourth of one percent (0.25%) on the nonresident county taxpayers of the county. This tax takes effect October 1 of this year.".
    (d) Any ordinance adopted under this section takes effect October 1 of the year the ordinance is adopted.
    (e) The auditor of a county shall record all votes taken on ordinances presented for a vote under the authority of this section and immediately send a certified copy of the results to the department by certified mail.
    (f) If the county adjusted gross income tax had previously been adopted 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 this chapter, then the county adjusted gross income tax continues in that county at the rates in effect at the time of enactment until the rates are modified or the tax is rescinded in the manner prescribed by this chapter. If a county's adjusted gross income tax is continued under this subsection, then the tax shall be treated as if it had been imposed under this chapter and is subject to rescission or reduction as authorized 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 that additional county adjusted gross income tax revenue is needed in the county 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 demolition of existing buildings and the acquisition of land; and         (2) repay bonds issued or leases entered into for the purposes described in subdivision (1).
    (c) The county council may, by ordinance, determine that additional county adjusted gross income tax revenue is needed in the county to operate or maintain any of the facilities described in subsection (b)(1)(A) through (b)(1)(D) that are located in the county. The county council may make a determination under both this subsection 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 tax at 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 county council makes a finding and determination set forth in subsection (b) or (c).
    (e) If the county council imposes the tax under this section 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) are completed; and
        (2) all bonds issued or leases entered into to finance the construction, acquisition, improvement, renovation, and equipping described in subsection (b) are fully paid;
the county council shall, subject to subsection (d), establish a tax rate under this section by ordinance such that the revenue from the tax does not exceed the costs of operating and maintaining the jail facilities described in subsection (b)(1)(A). The tax rate may not be imposed at a rate greater than is necessary to carry out the purposes described in subsections (b) and (c), as applicable.
    (f) An ordinance adopted under this section before August 1 in a year applies to the imposition of county income taxes after September 30 in that year. An ordinance adopted under this section after July 31 of a year initially applies to the imposition of county option income taxes after September 30 of the immediately following year.
    (g) The tax imposed under this section may be imposed only until the latest of the following:
        (1) The date on which the financing, construction, acquisition, improvement, renovation, and equipping described in subsection (b) are completed.
        (2) The date on which the last of any bonds issued or leases entered into to finance the construction, acquisition, improvement, renovation, and equipping described in subsection (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 facilities revenue fund to be used only for purposes described in this section. County adjusted gross income tax revenues derived from the tax rate imposed under this section shall be deposited in the criminal justice facilities revenue fund before making a certified distribution under section 11 of this chapter.
    (j) County adjusted gross income tax revenues derived from the tax 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 local government 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 leases entered into for any or all the purposes described in subsection (b).
    (k) Notwithstanding any other law, money remaining in the criminal justice facilities revenue fund established under subsection (i) after the tax imposed by this section is terminated under subsection (g) shall be transferred to the county highway fund to be used for construction, resurfacing, restoration, and rehabilitation of county 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 with population between 41,000 and 43,000
    
Sec. 2.5. (a) This section applies only to a county having a population of more than forty-one thousand (41,000) but less than forty-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 gross income tax revenue is needed in the county to fund the operation and maintenance of a jail and juvenile detention center opened after July 1, 1998.
    (d) Notwithstanding section 2 of this chapter, if the county council adopts an ordinance under subsection (c), the county council may impose the county adjusted gross income tax at a rate of one and one-tenth percent (1.1%) on adjusted gross income for fiscal years beginning before July 1, 2011. For fiscal years beginning after June 30, 2011, the rate is reduced to one percent (1%). If the county council imposes the county adjusted gross income tax at a rate of one and one-tenth percent (1.1%), the county council may decrease the rate or rescind the tax in the manner provided under this chapter.
    (e) If a county imposes the county adjusted gross income tax at a rate of one and one-tenth percent (1.1%) under this section, the revenue 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 and juvenile detention center opened after July 1, 1998; and
        (3) may not be considered by the department of local government finance in determining the county's maximum permissible 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 that additional county adjusted gross income tax revenue is needed in the county to:
        (1) fund the costs (including pre-trial costs) of a capital trial that has been moved to another county for trial; and
        (2) to repay money borrowed for the purpose described in subdivision (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 adjusted gross 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 until the later of the following:
        (1) The date on which the costs described in subsection (b), including the repayment of money borrowed for the purposes described 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) may not exceed three (3) years.
    (f) The county treasurer shall establish a capital trial revenue fund to be used only for purposes described in this section. County adjusted gross income tax revenues derived from the tax rate imposed under this section shall be deposited in the capital trial revenue fund before making a certified distribution under section 11 of this chapter.
    (g) County adjusted gross income tax revenues derived from the tax 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 local government finance in determining the county's maximum permissible 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 the capital trial revenue fund established under subsection (f) after the tax imposed by this section is terminated under subsection (d) shall be transferred to the county general fund to be used for criminal justice 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 with population between 71,000 and 71,400
    
Sec. 2.7. (a) This section applies to a county having a population of more than seventy-one thousand (71,000) but less than seventy-one thousand four hundred (71,400).
    (b) The county council may, by ordinance, determine that additional county adjusted gross income tax revenue is needed in the county to:
        (1) finance, construct, acquire, improve, renovate, or equip the county jail and related buildings and parking facilities, including costs related to the demolition of existing buildings and the acquisition of land; and
        (2) repay bonds issued, or leases entered into, for constructing, acquiring, improving, renovating, and equipping the county jail and related buildings and parking facilities, including costs related to the demolition of existing buildings and the acquisition 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 tax at 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 county council makes the finding and determination set forth in subsection (b). The tax imposed under this section may be imposed only until the 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 or leases 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 refunding bonds) or a lease entered into under subsection (b)(2) may not exceed 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). The tax rate may not be imposed at a rate greater than is necessary to pay the costs of financing, acquiring, improving, renovating, and equipping the county jail and related buildings and parking facilities, including costs related to the demolition of existing buildings and the acquisition of land.     (e) The county treasurer shall establish a county jail revenue fund to be used only for purposes described in this section. County adjusted gross income tax revenues derived from the tax rate imposed under this section shall be deposited in the county jail revenue fund before making a certified distribution under section 11 of this chapter.
    (f) County adjusted gross income tax revenues derived from the tax 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 local government 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 leases entered into, for purposes described in subsection (b).
    (g) A county described in subsection (a) possesses unique economic development challenges due to underemployment in relation to similarly situated counties. Maintaining low property tax rates is essential to economic development and the use of county adjusted gross income tax revenues as provided in this chapter to pay any bonds issued or leases entered into to finance the construction, acquisition, improvement, renovation, and equipping described under subsection (b), rather than use of property taxes, promotes that purpose.
    (h) Notwithstanding any other law, funds accumulated from the county 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 entered into under this section;
shall be transferred to the county highway fund to be used for construction, resurfacing, restoration, and rehabilitation of county highways, roads, and bridges.
As added by P.L.135-2001, SEC.2. Amended by P.L.1-2002, SEC.33 and P.L.90-2002, SEC.290.

IC 6-3.5-1.1-2.8
Additional rate for criminal justice facilities; fund; use of additional 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 hundred eighty-two thousand seven hundred ninety (182,790) but less than two hundred thousand (200,000); and
        (2) a county having a population of more than forty-five thousand (45,000) but less than forty-five thousand nine hundred (45,900).
    (b) The county council may, by ordinance, determine that additional county adjusted gross income tax revenue is needed in the county 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 demolition of existing buildings and the acquisition of land; and
        (2) repay bonds issued or leases entered into for the purposes described in subdivision (1).
    (c) The county council may, by ordinance, determine that additional county adjusted gross income tax revenue is needed in the county 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 in subsection (a)(1) or (a)(2) may make a determination under both this subsection 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 tax at 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 county council makes a finding and determination set forth in subsection (b) or (c). The tax rate may not be imposed at a rate greater than is necessary to carry out the purposes described in subsections (b) and (c), as applicable.
    (e) This subsection applies only to a county described in subsection (a)(1). If the county council imposes the tax under this section 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) are completed; and
        (2) all bonds issued (including any refunding bonds) or leases entered into to finance the construction, acquisition, improvement, renovation, and equipping described in subsection (b) are fully paid;
the county council shall, subject to subsection (d), establish a tax rate under this section by ordinance such that the revenue from the tax does not exceed the costs of operating and maintaining the jail facilities referred to in subsection (b)(1)(A).
    (f) The tax imposed under this section may be imposed only until the last of the following dates:
        (1) The date on which the financing, construction, acquisition, improvement, renovation, and equipping described in subsection (b) are completed.
        (2) The date on which the last of any bonds issued (including any refunding bonds) or leases entered into to finance the construction, acquisition, improvement, renovation, and

equipping described in subsection (b) are fully paid.
        (3) If the county imposing the tax under this section is a county described in subsection (a)(1), the date on which an ordinance adopted 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 facilities revenue fund to be used only for purposes described in this section. County adjusted gross income tax revenues derived from the tax rate imposed under this section shall be deposited in the criminal justice facilities revenue fund before making a certified distribution under section 11 of this chapter.
    (i) County adjusted gross income tax revenues derived from the tax 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 local government 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 leases entered into for any or all the purposes described in subsection (b).
    (j) Notwithstanding any other law, money remaining in the criminal justice facilities revenue fund established under subsection (h) after the tax imposed by this section is terminated under subsection (f) shall be transferred to the county highway fund to be used for construction, resurfacing, restoration, and rehabilitation of county 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 additional revenue; balance transfer to county highway fund
    
Sec. 2.9. (a) This section applies to a county having a population of more than twenty-nine thousand (29,000) but less than thirty thousand (30,000).
    (b) The county council may, by ordinance, determine that additional county adjusted gross income tax revenue is needed in the county to:
        (1) finance, construct, acquire, improve, renovate, remodel, or equip the 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; and
        (2) repay bonds issued or leases entered into for constructing, acquiring, improving, renovating, remodeling, and equipping the 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 tax at 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 county council makes the finding and determination set forth in subsection (b). The tax imposed under this section may be imposed only until the later of the date on which the financing on, acquisition, improvement, renovation, remodeling, and equipping described in subsection (b) are completed or the date on which the last of any bonds issued or leases entered into to finance the construction, acquisition, improvement, renovation, remodeling, and equipping described in subsection (b) are fully paid. The term of the bonds issued (including any refunding bonds) or a lease entered into under subsection (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). The tax rate may not be imposed at a rate greater than is necessary to pay the costs of financing, acquiring, improving, renovating, remodeling, and equipping the 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.
    (e) The county treasurer shall establish a county jail revenue fund to be used only for purposes described in this section. County adjusted gross income tax revenues derived from the tax rate imposed under this section shall be deposited in the county jail revenue fund before making a certified distribution under section 11 of this chapter.
    (f) County adjusted gross income tax revenues derived from the tax 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 local government 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 leases entered into for purposes described in subsection (b).
    (g) A county described in subsection (a) possesses unique governmental and economic development challenges due to:
        (1) underemployment in relation to similarly situated counties and the loss of a major manufacturing business;
        (2) an increase in property taxes for taxable years after December 31, 2000, for the construction of a new elementary school; and
        (3) overcrowding of the county jail, the costs associated with housing the county's inmates outside the county, and the potential unavailability of additional housing for inmates outside the county. The use of county adjusted gross income tax revenues as provided in this chapter is necessary for the county to provide adequate jail capacity in the county and to maintain low property tax rates essential to economic development. The use of county adjusted gross income tax revenues as provided in this chapter to pay any bonds issued or leases entered into to finance the construction, acquisition, improvement, renovation, remodeling, and equipping described in subsection (b), rather than the use of property taxes, promotes those purposes.
    (h) Notwithstanding any other law, funds accumulated from the county 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 entered into under this section;
shall be transferred to the county highway fund to be used for construction, resurfacing, restoration, and rehabilitation of county highways, 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 adjusted gross income tax rate imposed upon the resident county taxpayers of the county. To increase the rate, the county council must, after March 31 but before August 1 of a year, adopt an ordinance. The ordinance must substantially state the following:
        "The ________ County Council increases the county adjusted gross income tax rate imposed upon the resident county taxpayers of the county from ________ percent (___%) to _______ percent (___%). This tax rate increase takes effect October 1 of this year.".
    (b) Any ordinance adopted under this section takes effect October 1 of the year the ordinance is adopted.
    (c) The auditor of a county shall record all votes taken on ordinances presented for a vote under the authority of this section and immediately send a certified copy of the results to the department by certified mail.
As added by P.L.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 of ordinance; procedures
    
Sec. 3.1. (a) The county council may decrease the county adjusted gross income tax rate imposed upon the resident county taxpayers of the county. To decrease the rate, the county council must, after March 31 but before August 1 of a year, adopt an ordinance. The ordinance must substantially state the following:
        "The ________ County Council decreases the county adjusted

gross income tax rate imposed upon the resident county taxpayers of the county from _____ percent (___%) to _____ percent (___%). This tax rate decrease takes effect October 1 of this year.".
    (b) A county council may not decrease the county adjusted gross income tax rate if the county or any commission, board, department, or authority that is authorized by statute to pledge the county adjusted gross income tax has pledged the county adjusted gross income tax for any purpose permitted by IC 5-1-14 or any other statute.
    (c) Any ordinance adopted under this section takes effect October 1 of the year the ordinance is adopted.
    (d) The auditor of a county shall record all votes taken on ordinances presented for a vote under the authority of this section and immediately send a certified copy of the results to the department by certified mail.
    (e) Notwithstanding IC 6-3.5-7, and except as provided in subsection (f), a county council that decreases the county adjusted gross income tax rate in a year may not in the same year adopt or increase the county economic development income tax under IC 6-3.5-7.
    (f) This subsection applies only to a county having a population of more than one hundred ten thousand (110,000) but less than one hundred fifteen thousand (115,000). The county council may adopt or increase the county economic development income tax rate under IC 6-3.5-7 in the same year that the county council decreases the county adjusted gross income tax rate if the county economic development income tax rate plus the county adjusted gross income tax rate in effect after the county council decreases the county adjusted gross income tax rate is less than the county adjusted gross income tax rate in effect before the adoption of an ordinance under this section decreasing the rate of the county adjusted gross income tax.
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 court order; 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 Construction Standards; and
            (B) Indiana jail operation standards adopted by the department of correction; and
        (3) has insufficient revenue to finance the construction,

acquisition, improvement, renovation, and equipping of a county jail and related buildings and parking facilities.
    (b) For purposes of this section, "county jail" includes any other penal facility that is:
        (1) located in; and
        (2) operated by;
the county.
    (c) The county council may, by ordinance, determine that additional county adjusted gross income tax revenue is needed in the county to:
        (1) finance, construct, acquire, improve, renovate, or equip a county jail and related buildings and parking facilities, including costs related to the demolition of existing buildings and the acquisition of land; and
        (2) repay bonds issued or leases entered into for constructing, acquiring, improving, renovating, and equipping the county jail and related buildings and parking facilities, including costs related to the demolition of existing buildings and the acquisition 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 tax at a rate of twenty-five hundredths percent (0.25%) on the adjusted gross income of county taxpayers if the county council makes the finding and determination set forth in subsection (c). The tax imposed under this section may be imposed only until the later of the date on which the financing on acquisition, improvement, renovation, and equipping described in subsection (c) is completed or the date on which the last of any bonds issued or leases entered into to finance the construction, acquisition, improvement, renovation, and equipping described in subsection (c) are fully paid. The term of the bonds issued (including any refunding bonds) or a lease entered into under 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). The tax rate may not be imposed at a rate greater than is necessary to pay the costs of financing, acquiring, improving, renovating, and equipping the county jail and related buildings and parking facilities, including costs related to the demolition of existing buildings and the acquisition of land.
    (f) The county treasurer shall establish a county jail revenue fund to be used only for purposes described in this section. County adjusted gross income tax revenues derived from the tax rate imposed under this section shall be deposited in the county jail revenue fund before making a certified distribution under section 11 of this chapter.
    (g) County adjusted gross income tax revenues derived from the tax 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 local government 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 leases entered into for purposes described in subsection (c).
    (h) A county described in subsection (a) possesses unique economic development challenges due to underemployment in relation to similarly situated counties. Maintaining low property tax rates is essential to economic development. The use of county adjusted gross income tax revenues as provided in this chapter, rather than use of property taxes, to pay any bonds issued or leases entered into to finance the construction, acquisition, improvement, renovation, and equipping described in subsection (c) promotes that purpose.
    (i) Notwithstanding any other law, funds accumulated from the county 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 entered into 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 population between 13,500 and 14,000
    
Sec. 3.5. (a) This section applies only to a county having a population of more than thirteen thousand five hundred (13,500) but less than fourteen thousand (14,000).
    (b) The county council of a county described in subsection (a) may, by ordinance, determine that additional county adjusted gross income tax revenue is needed in the county to fund the operation and maintenance of a jail and justice center.
    (c) Notwithstanding section 2 of this chapter, if the county council adopts an ordinance under subsection (b), the county council may impose the county adjusted gross income tax at a rate of one and three-tenths percent (1.3%) on adjusted gross income. However, a county may impose the county adjusted gross income tax at a rate of one and three-tenths percent (1.3%) for only eight (8) years. After the county has imposed the county adjusted gross income tax at a rate of one and three-tenths percent (1.3%) for eight (8) years, the rate is reduced to one percent (1%). If the county council imposes the county adjusted gross income tax at a rate of one and three-tenths percent (1.3%), the county council may decrease the rate or rescind the tax in the manner provided under this chapter.
    (d) If a county imposes the county adjusted gross income tax at a rate of one and three-tenths percent (1.3%) under this section, the revenue derived from a tax rate of three-tenths percent (0.3%) on adjusted gross income:
        (1) shall be paid to the county treasurer;
        (2) may be used only to pay the costs of operating and maintaining 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 maximum permissible 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 additional revenue; balance transfer to county highway fund
    
Sec. 3.6. (a) This section applies only to a county having a population of more than six thousand (6,000) but less than eight thousand (8,000).
    (b) The county council may, by ordinance, determine that additional county adjusted gross income tax revenue is needed in the county to:
        (1) finance, construct, acquire, improve, renovate, or equip the county courthouse; and
        (2) repay bonds issued, or leases entered into, for constructing, acquiring, improving, renovating, and equipping the county courthouse.
    (c) In addition to the rates permitted under section 2 of this chapter, the county council may impose the county adjusted gross income tax at a rate of twenty-five hundredths percent (0.25%) on the adjusted gross income of county taxpayers if the county council makes the finding and determination set forth in subsection (b). The tax imposed under this section may be imposed only until the 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 or leases 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 refunding bonds) or a lease entered into under subsection (b)(2) may not exceed twenty-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). The tax rate may not be imposed for a time greater than is necessary to pay the costs of financing, constructing, acquiring, renovating, and equipping the county courthouse.
    (e) The county treasurer shall establish a county courthouse revenue fund to be used only for purposes described in this section. County adjusted gross income tax revenues derived from the tax rate imposed under this section shall be deposited in the county courthouse revenue fund before a certified distribution is made under section 11 of this chapter.
    (f) County adjusted gross income tax revenues derived from the tax 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 local government 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 leases entered into for purposes described in subsection (b).
    (g) A county described in subsection (a) possesses unique economic development challenges due to:
        (1) the county's heavy agricultural base;
        (2) the presence of a large amount of state owned property in the county that is exempt from property taxation; and
        (3) recent obligations of the school corporation in the county that have already increased property taxes in the county and imposed additional property tax burdens on the county's agricultural base.
Maintaining low property tax rates is essential to economic development. The use of county adjusted gross income tax revenues as provided in this chapter to pay any bonds issued or leases entered into to finance the construction, acquisition, improvement, renovation, and equipping described in subsection (b), rather than the use of property taxes, promotes that purpose.
    (h) Notwithstanding any other law, funds accumulated from the county 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 entered into under this section;
shall be transferred to the county highway fund to be used for construction, resurfacing, restoration, and rehabilitation of county highways, 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 a county council under this chapter remains in effect until rescinded.
    (b) Except as provided in subsection (e), the county council may rescind the county adjusted gross income tax by adopting an ordinance to rescind the tax after March 31 but before August 1 of a year.
    (c) Any ordinance adopted under this section takes effect October 1 of the year the ordinance is adopted.
    (d) The auditor of a county shall record all votes taken on ordinances presented for a vote under the authority of this section and immediately send a certified copy of the results to the department by certified mail.
    (e) A county council may not rescind the county adjusted gross income tax or take any action that would result in a civil taxing unit in the county having a smaller certified share than the certified share to which the civil taxing unit was entitled when the civil taxing unit pledged county adjusted gross income tax if the civil taxing unit or any commission, board, department, or authority that is authorized by statute to pledge county adjusted gross income tax has pledged

county adjusted gross income tax for any purpose permitted by IC 5-1-14 or any other statute. The prohibition in this section does not apply if the civil taxing unit pledges legally available revenues to fully replace the civil taxing unit's certified share that has been pledged.
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 the county adjusted gross income tax is not in effect during a county taxpayer's entire taxable year, then the amount of county adjusted gross income tax that the county taxpayer owes for that taxable year equals the product of:
        (1) the amount of county adjusted gross income tax the county taxpayer would owe if the tax had been imposed during the county taxpayer's entire taxable year; multiplied by
        (2) a fraction:
            (A) The numerator of the fraction equals the number of days during the county taxpayer's taxable year during which the county adjusted gross income tax was in effect.
            (B) The denominator of the fraction equals the total number of 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 in IC 22-4-15-1(e)); and
        (3) has no earned income for the part of the taxpayer's taxable year that the tax was in effect;
the county taxpayer's adjusted gross income for the taxable year is reduced by the amount of the taxpayer's earned income for the taxable year.
    (c) A taxpayer who qualifies under subsection (b) must file a claim for a refund for the difference between the county adjusted gross income tax owed, as determined under subsection (a), and the tax owed, as determined under subsection (b). A claim for a refund must be on a form approved by the department and include all supporting 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 particular taxable year a county taxpayer is liable for an income tax imposed by a county, city, town, or other local governmental entity located outside of Indiana, that county taxpayer is entitled to a cr

State Codes and Statutes

Statutes > Indiana > Title6 > Ar3.5 > Ch1.1

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 is given in IC 6-3-1-3.5(a), except that in the case of a county taxpayer who is not a resident of a county that has imposed the county adjusted gross income tax, the term includes only adjusted gross income derived from the taxpayer's principal place of business or employment.
    "Apartment complex" means real property consisting of at least five (5) units that are regularly used to rent or otherwise furnish residential accommodations for periods of at least thirty (30) days.
    "Civil taxing unit" means any entity having the power to impose ad valorem property taxes except a school corporation. The term does not include a solid waste management district that is not entitled to a distribution under section 1.3 of this chapter. However, in the case of a consolidated city, the term "civil taxing unit" includes the consolidated city and all special taxing districts, all special service districts, and all entities whose budgets and property tax levies are subject to review under IC 36-3-6-9.
    "County council" includes the city-county council of a consolidated city.
    "County taxpayer" as it relates to a county for a year means any individual:
        (1) who resides in that county on the date specified in section 16 of this chapter; or
        (2) who maintains the taxpayer's principal place of business or employment in that county on the date specified in section 16 of this chapter and who does not on that same date reside in another county in which the county adjusted gross income tax, the county option income tax, or the county economic development income tax is in effect.
    "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 year means any county taxpayer for that county for that year who is not a resident 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 year means any county taxpayer who resides in that county on the date specified in section 16 of this chapter.
    "Residential rental property" means real property consisting of not more than four (4) units that are regularly used to rent or otherwise furnish residential accommodations for periods of at least thirty (30)

days.
    "School corporation" means any public school corporation established 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 distribution made to a county under this chapter among the civil taxing units and school corporations in the county, the allocation amount for a civil taxing unit or school corporation is the amount determined using the following formula:
        STEP ONE: Determine the sum of the total property taxes being collected by the civil taxing unit or school corporation during the calendar year of the distribution.
        STEP TWO: Determine the sum of the following:
            (A) Amounts appropriated from property taxes to pay the principal of or interest on any debenture or other debt obligation issued after June 30, 2005, other than an obligation described in subsection (b).
            (B) Amounts appropriated from property taxes to make payments on any lease entered into after June 30, 2005, other than a lease described in subsection (c).
            (C) The proceeds of any property that are:
                (i) received as the result of the issuance of a debt obligation described in clause (A) or a lease described in clause (B); and
                (ii) appropriated from property taxes for any purpose other than to refund or otherwise refinance a debt obligation or lease described in subsection (b) or (c).
        STEP THREE: Subtract the STEP TWO amount from the STEP ONE amount.
        STEP FOUR: Determine the sum of:
            (A) the STEP THREE amount; plus
            (B) the civil taxing unit's or school corporation's certified distribution for the previous calendar year.
The allocation amount is subject to adjustment as provided in IC 36-8-19-7.5.
    (b) Except as provided in this subsection, an appropriation from property taxes to repay interest and principal of a debt obligation is not deducted from the allocation amount for a civil taxing unit or school 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 issued before July 1, 2005. However, an appropriation from property taxes related to a debt obligation issued after June 30, 2005, is deducted if the debt extends payments on a debt or lease beyond the time in which the debt or lease would have been payable if the debt or lease

had not been refinanced or increases the total amount that must be paid on a debt or lease in excess of the amount that would have been paid if the debt or lease had not been refinanced. The amount of the deduction is the annual amount for each year of the extension period or the annual amount of the increase over the amount that would have been paid.
    (c) Except as provided in this subsection, an appropriation from property taxes to make payments on a lease is not deducted from the allocation 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 lease entered into after June 30, 2005, is deducted if the lease extends payments on a debt or lease beyond the time in which the debt or lease would have been payable if the debt or lease had not been refinanced or increases the total amount that must be paid on a debt or lease in excess of the amount that would have been paid if the debt or lease had not been refinanced. The amount of the deduction is the annual amount for each year of the extension period or the annual amount 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 waste management district (as defined in IC 13-11-2-47) or a joint solid waste management district (as defined in IC 13-11-2-113).
    (b) A district may not receive a distribution under this chapter unless a majority of the members of each of the county fiscal bodies of the counties within the district passes a resolution approving the distribution.
    (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 or rescinds 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 homestead credit or property tax replacement credit authorized under this chapter;
may be exercised at any time in a year before November 1 of that

year.
    (b) Notwithstanding any other provision of this chapter, an ordinance authorized by this chapter that imposes or increases a tax or a tax rate takes effect as follows:
        (1) An ordinance adopted after December 31 of the immediately preceding year and before October 1 of the current year takes effect October 1 of the current year.
        (2) An ordinance adopted after September 30 and before October 16 of the current year takes effect November 1 of the current year.
        (3) An ordinance adopted after October 15 and before November 1 of the current year takes effect December 1 of the current year.
    (c) Notwithstanding any other provision of this chapter, an ordinance authorized by this chapter that decreases or rescinds a tax or a tax rate takes effect as follows:
        (1) An ordinance adopted after December 31 of the immediately preceding year and before October 1 of the current year takes effect on the later of October 1 of the current year or the first day of the month in the current year as the month in which the last increase in the tax or tax rate occurred.
        (2) An ordinance adopted after September 30 and before October 16 of the current year takes effect on the later of November 1 of the current year or the first day of the month in the current year as the month in which the last increase in the tax or tax rate occurred.
        (3) An ordinance adopted after October 15 and before November 1 of the current year takes effect December 1 of the current year.
    (d) Notwithstanding any other provision of this chapter, an ordinance authorized by this chapter that grants, increases, decreases, rescinds, or changes a homestead credit or property tax replacement credit authorized under this chapter takes effect for and applies to property taxes first due and payable in the year immediately following the year in which the ordinance is adopted.
As added by P.L.113-2010, SEC.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 county option income tax will not be in effect on October 1 of a year under an ordinance adopted during a previous calendar year may impose the county adjusted gross income tax on the adjusted gross income of 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 gross income 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%) on the 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 of one-fourth of one percent (0.25%) on their adjusted gross income. If the county council elects to decrease the county adjusted gross income tax, the county council may decrease the county adjusted gross income tax rate in increments of one-tenth of one percent (0.1%).
    (c) To impose the county adjusted gross income tax, the county council must, after March 31 but before August 1 of a year, adopt an ordinance. The ordinance must substantially state the following:
        "The ________ County Council imposes the county adjusted gross 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 the county and one-fourth of one percent (0.25%) on the nonresident county taxpayers of the county. This tax takes effect October 1 of this year.".
    (d) Any ordinance adopted under this section takes effect October 1 of the year the ordinance is adopted.
    (e) The auditor of a county shall record all votes taken on ordinances presented for a vote under the authority of this section and immediately send a certified copy of the results to the department by certified mail.
    (f) If the county adjusted gross income tax had previously been adopted 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 this chapter, then the county adjusted gross income tax continues in that county at the rates in effect at the time of enactment until the rates are modified or the tax is rescinded in the manner prescribed by this chapter. If a county's adjusted gross income tax is continued under this subsection, then the tax shall be treated as if it had been imposed under this chapter and is subject to rescission or reduction as authorized 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 that additional county adjusted gross income tax revenue is needed in the county 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 demolition of existing buildings and the acquisition of land; and         (2) repay bonds issued or leases entered into for the purposes described in subdivision (1).
    (c) The county council may, by ordinance, determine that additional county adjusted gross income tax revenue is needed in the county to operate or maintain any of the facilities described in subsection (b)(1)(A) through (b)(1)(D) that are located in the county. The county council may make a determination under both this subsection 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 tax at 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 county council makes a finding and determination set forth in subsection (b) or (c).
    (e) If the county council imposes the tax under this section 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) are completed; and
        (2) all bonds issued or leases entered into to finance the construction, acquisition, improvement, renovation, and equipping described in subsection (b) are fully paid;
the county council shall, subject to subsection (d), establish a tax rate under this section by ordinance such that the revenue from the tax does not exceed the costs of operating and maintaining the jail facilities described in subsection (b)(1)(A). The tax rate may not be imposed at a rate greater than is necessary to carry out the purposes described in subsections (b) and (c), as applicable.
    (f) An ordinance adopted under this section before August 1 in a year applies to the imposition of county income taxes after September 30 in that year. An ordinance adopted under this section after July 31 of a year initially applies to the imposition of county option income taxes after September 30 of the immediately following year.
    (g) The tax imposed under this section may be imposed only until the latest of the following:
        (1) The date on which the financing, construction, acquisition, improvement, renovation, and equipping described in subsection (b) are completed.
        (2) The date on which the last of any bonds issued or leases entered into to finance the construction, acquisition, improvement, renovation, and equipping described in subsection (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 facilities revenue fund to be used only for purposes described in this section. County adjusted gross income tax revenues derived from the tax rate imposed under this section shall be deposited in the criminal justice facilities revenue fund before making a certified distribution under section 11 of this chapter.
    (j) County adjusted gross income tax revenues derived from the tax 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 local government 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 leases entered into for any or all the purposes described in subsection (b).
    (k) Notwithstanding any other law, money remaining in the criminal justice facilities revenue fund established under subsection (i) after the tax imposed by this section is terminated under subsection (g) shall be transferred to the county highway fund to be used for construction, resurfacing, restoration, and rehabilitation of county 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 with population between 41,000 and 43,000
    
Sec. 2.5. (a) This section applies only to a county having a population of more than forty-one thousand (41,000) but less than forty-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 gross income tax revenue is needed in the county to fund the operation and maintenance of a jail and juvenile detention center opened after July 1, 1998.
    (d) Notwithstanding section 2 of this chapter, if the county council adopts an ordinance under subsection (c), the county council may impose the county adjusted gross income tax at a rate of one and one-tenth percent (1.1%) on adjusted gross income for fiscal years beginning before July 1, 2011. For fiscal years beginning after June 30, 2011, the rate is reduced to one percent (1%). If the county council imposes the county adjusted gross income tax at a rate of one and one-tenth percent (1.1%), the county council may decrease the rate or rescind the tax in the manner provided under this chapter.
    (e) If a county imposes the county adjusted gross income tax at a rate of one and one-tenth percent (1.1%) under this section, the revenue 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 and juvenile detention center opened after July 1, 1998; and
        (3) may not be considered by the department of local government finance in determining the county's maximum permissible 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 that additional county adjusted gross income tax revenue is needed in the county to:
        (1) fund the costs (including pre-trial costs) of a capital trial that has been moved to another county for trial; and
        (2) to repay money borrowed for the purpose described in subdivision (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 adjusted gross 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 until the later of the following:
        (1) The date on which the costs described in subsection (b), including the repayment of money borrowed for the purposes described 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) may not exceed three (3) years.
    (f) The county treasurer shall establish a capital trial revenue fund to be used only for purposes described in this section. County adjusted gross income tax revenues derived from the tax rate imposed under this section shall be deposited in the capital trial revenue fund before making a certified distribution under section 11 of this chapter.
    (g) County adjusted gross income tax revenues derived from the tax 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 local government finance in determining the county's maximum permissible 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 the capital trial revenue fund established under subsection (f) after the tax imposed by this section is terminated under subsection (d) shall be transferred to the county general fund to be used for criminal justice 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 with population between 71,000 and 71,400
    
Sec. 2.7. (a) This section applies to a county having a population of more than seventy-one thousand (71,000) but less than seventy-one thousand four hundred (71,400).
    (b) The county council may, by ordinance, determine that additional county adjusted gross income tax revenue is needed in the county to:
        (1) finance, construct, acquire, improve, renovate, or equip the county jail and related buildings and parking facilities, including costs related to the demolition of existing buildings and the acquisition of land; and
        (2) repay bonds issued, or leases entered into, for constructing, acquiring, improving, renovating, and equipping the county jail and related buildings and parking facilities, including costs related to the demolition of existing buildings and the acquisition 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 tax at 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 county council makes the finding and determination set forth in subsection (b). The tax imposed under this section may be imposed only until the 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 or leases 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 refunding bonds) or a lease entered into under subsection (b)(2) may not exceed 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). The tax rate may not be imposed at a rate greater than is necessary to pay the costs of financing, acquiring, improving, renovating, and equipping the county jail and related buildings and parking facilities, including costs related to the demolition of existing buildings and the acquisition of land.     (e) The county treasurer shall establish a county jail revenue fund to be used only for purposes described in this section. County adjusted gross income tax revenues derived from the tax rate imposed under this section shall be deposited in the county jail revenue fund before making a certified distribution under section 11 of this chapter.
    (f) County adjusted gross income tax revenues derived from the tax 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 local government 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 leases entered into, for purposes described in subsection (b).
    (g) A county described in subsection (a) possesses unique economic development challenges due to underemployment in relation to similarly situated counties. Maintaining low property tax rates is essential to economic development and the use of county adjusted gross income tax revenues as provided in this chapter to pay any bonds issued or leases entered into to finance the construction, acquisition, improvement, renovation, and equipping described under subsection (b), rather than use of property taxes, promotes that purpose.
    (h) Notwithstanding any other law, funds accumulated from the county 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 entered into under this section;
shall be transferred to the county highway fund to be used for construction, resurfacing, restoration, and rehabilitation of county highways, roads, and bridges.
As added by P.L.135-2001, SEC.2. Amended by P.L.1-2002, SEC.33 and P.L.90-2002, SEC.290.

IC 6-3.5-1.1-2.8
Additional rate for criminal justice facilities; fund; use of additional 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 hundred eighty-two thousand seven hundred ninety (182,790) but less than two hundred thousand (200,000); and
        (2) a county having a population of more than forty-five thousand (45,000) but less than forty-five thousand nine hundred (45,900).
    (b) The county council may, by ordinance, determine that additional county adjusted gross income tax revenue is needed in the county 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 demolition of existing buildings and the acquisition of land; and
        (2) repay bonds issued or leases entered into for the purposes described in subdivision (1).
    (c) The county council may, by ordinance, determine that additional county adjusted gross income tax revenue is needed in the county 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 in subsection (a)(1) or (a)(2) may make a determination under both this subsection 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 tax at 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 county council makes a finding and determination set forth in subsection (b) or (c). The tax rate may not be imposed at a rate greater than is necessary to carry out the purposes described in subsections (b) and (c), as applicable.
    (e) This subsection applies only to a county described in subsection (a)(1). If the county council imposes the tax under this section 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) are completed; and
        (2) all bonds issued (including any refunding bonds) or leases entered into to finance the construction, acquisition, improvement, renovation, and equipping described in subsection (b) are fully paid;
the county council shall, subject to subsection (d), establish a tax rate under this section by ordinance such that the revenue from the tax does not exceed the costs of operating and maintaining the jail facilities referred to in subsection (b)(1)(A).
    (f) The tax imposed under this section may be imposed only until the last of the following dates:
        (1) The date on which the financing, construction, acquisition, improvement, renovation, and equipping described in subsection (b) are completed.
        (2) The date on which the last of any bonds issued (including any refunding bonds) or leases entered into to finance the construction, acquisition, improvement, renovation, and

equipping described in subsection (b) are fully paid.
        (3) If the county imposing the tax under this section is a county described in subsection (a)(1), the date on which an ordinance adopted 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 facilities revenue fund to be used only for purposes described in this section. County adjusted gross income tax revenues derived from the tax rate imposed under this section shall be deposited in the criminal justice facilities revenue fund before making a certified distribution under section 11 of this chapter.
    (i) County adjusted gross income tax revenues derived from the tax 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 local government 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 leases entered into for any or all the purposes described in subsection (b).
    (j) Notwithstanding any other law, money remaining in the criminal justice facilities revenue fund established under subsection (h) after the tax imposed by this section is terminated under subsection (f) shall be transferred to the county highway fund to be used for construction, resurfacing, restoration, and rehabilitation of county 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 additional revenue; balance transfer to county highway fund
    
Sec. 2.9. (a) This section applies to a county having a population of more than twenty-nine thousand (29,000) but less than thirty thousand (30,000).
    (b) The county council may, by ordinance, determine that additional county adjusted gross income tax revenue is needed in the county to:
        (1) finance, construct, acquire, improve, renovate, remodel, or equip the 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; and
        (2) repay bonds issued or leases entered into for constructing, acquiring, improving, renovating, remodeling, and equipping the 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 tax at 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 county council makes the finding and determination set forth in subsection (b). The tax imposed under this section may be imposed only until the later of the date on which the financing on, acquisition, improvement, renovation, remodeling, and equipping described in subsection (b) are completed or the date on which the last of any bonds issued or leases entered into to finance the construction, acquisition, improvement, renovation, remodeling, and equipping described in subsection (b) are fully paid. The term of the bonds issued (including any refunding bonds) or a lease entered into under subsection (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). The tax rate may not be imposed at a rate greater than is necessary to pay the costs of financing, acquiring, improving, renovating, remodeling, and equipping the 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.
    (e) The county treasurer shall establish a county jail revenue fund to be used only for purposes described in this section. County adjusted gross income tax revenues derived from the tax rate imposed under this section shall be deposited in the county jail revenue fund before making a certified distribution under section 11 of this chapter.
    (f) County adjusted gross income tax revenues derived from the tax 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 local government 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 leases entered into for purposes described in subsection (b).
    (g) A county described in subsection (a) possesses unique governmental and economic development challenges due to:
        (1) underemployment in relation to similarly situated counties and the loss of a major manufacturing business;
        (2) an increase in property taxes for taxable years after December 31, 2000, for the construction of a new elementary school; and
        (3) overcrowding of the county jail, the costs associated with housing the county's inmates outside the county, and the potential unavailability of additional housing for inmates outside the county. The use of county adjusted gross income tax revenues as provided in this chapter is necessary for the county to provide adequate jail capacity in the county and to maintain low property tax rates essential to economic development. The use of county adjusted gross income tax revenues as provided in this chapter to pay any bonds issued or leases entered into to finance the construction, acquisition, improvement, renovation, remodeling, and equipping described in subsection (b), rather than the use of property taxes, promotes those purposes.
    (h) Notwithstanding any other law, funds accumulated from the county 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 entered into under this section;
shall be transferred to the county highway fund to be used for construction, resurfacing, restoration, and rehabilitation of county highways, 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 adjusted gross income tax rate imposed upon the resident county taxpayers of the county. To increase the rate, the county council must, after March 31 but before August 1 of a year, adopt an ordinance. The ordinance must substantially state the following:
        "The ________ County Council increases the county adjusted gross income tax rate imposed upon the resident county taxpayers of the county from ________ percent (___%) to _______ percent (___%). This tax rate increase takes effect October 1 of this year.".
    (b) Any ordinance adopted under this section takes effect October 1 of the year the ordinance is adopted.
    (c) The auditor of a county shall record all votes taken on ordinances presented for a vote under the authority of this section and immediately send a certified copy of the results to the department by certified mail.
As added by P.L.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 of ordinance; procedures
    
Sec. 3.1. (a) The county council may decrease the county adjusted gross income tax rate imposed upon the resident county taxpayers of the county. To decrease the rate, the county council must, after March 31 but before August 1 of a year, adopt an ordinance. The ordinance must substantially state the following:
        "The ________ County Council decreases the county adjusted

gross income tax rate imposed upon the resident county taxpayers of the county from _____ percent (___%) to _____ percent (___%). This tax rate decrease takes effect October 1 of this year.".
    (b) A county council may not decrease the county adjusted gross income tax rate if the county or any commission, board, department, or authority that is authorized by statute to pledge the county adjusted gross income tax has pledged the county adjusted gross income tax for any purpose permitted by IC 5-1-14 or any other statute.
    (c) Any ordinance adopted under this section takes effect October 1 of the year the ordinance is adopted.
    (d) The auditor of a county shall record all votes taken on ordinances presented for a vote under the authority of this section and immediately send a certified copy of the results to the department by certified mail.
    (e) Notwithstanding IC 6-3.5-7, and except as provided in subsection (f), a county council that decreases the county adjusted gross income tax rate in a year may not in the same year adopt or increase the county economic development income tax under IC 6-3.5-7.
    (f) This subsection applies only to a county having a population of more than one hundred ten thousand (110,000) but less than one hundred fifteen thousand (115,000). The county council may adopt or increase the county economic development income tax rate under IC 6-3.5-7 in the same year that the county council decreases the county adjusted gross income tax rate if the county economic development income tax rate plus the county adjusted gross income tax rate in effect after the county council decreases the county adjusted gross income tax rate is less than the county adjusted gross income tax rate in effect before the adoption of an ordinance under this section decreasing the rate of the county adjusted gross income tax.
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 court order; 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 Construction Standards; and
            (B) Indiana jail operation standards adopted by the department of correction; and
        (3) has insufficient revenue to finance the construction,

acquisition, improvement, renovation, and equipping of a county jail and related buildings and parking facilities.
    (b) For purposes of this section, "county jail" includes any other penal facility that is:
        (1) located in; and
        (2) operated by;
the county.
    (c) The county council may, by ordinance, determine that additional county adjusted gross income tax revenue is needed in the county to:
        (1) finance, construct, acquire, improve, renovate, or equip a county jail and related buildings and parking facilities, including costs related to the demolition of existing buildings and the acquisition of land; and
        (2) repay bonds issued or leases entered into for constructing, acquiring, improving, renovating, and equipping the county jail and related buildings and parking facilities, including costs related to the demolition of existing buildings and the acquisition 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 tax at a rate of twenty-five hundredths percent (0.25%) on the adjusted gross income of county taxpayers if the county council makes the finding and determination set forth in subsection (c). The tax imposed under this section may be imposed only until the later of the date on which the financing on acquisition, improvement, renovation, and equipping described in subsection (c) is completed or the date on which the last of any bonds issued or leases entered into to finance the construction, acquisition, improvement, renovation, and equipping described in subsection (c) are fully paid. The term of the bonds issued (including any refunding bonds) or a lease entered into under 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). The tax rate may not be imposed at a rate greater than is necessary to pay the costs of financing, acquiring, improving, renovating, and equipping the county jail and related buildings and parking facilities, including costs related to the demolition of existing buildings and the acquisition of land.
    (f) The county treasurer shall establish a county jail revenue fund to be used only for purposes described in this section. County adjusted gross income tax revenues derived from the tax rate imposed under this section shall be deposited in the county jail revenue fund before making a certified distribution under section 11 of this chapter.
    (g) County adjusted gross income tax revenues derived from the tax 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 local government 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 leases entered into for purposes described in subsection (c).
    (h) A county described in subsection (a) possesses unique economic development challenges due to underemployment in relation to similarly situated counties. Maintaining low property tax rates is essential to economic development. The use of county adjusted gross income tax revenues as provided in this chapter, rather than use of property taxes, to pay any bonds issued or leases entered into to finance the construction, acquisition, improvement, renovation, and equipping described in subsection (c) promotes that purpose.
    (i) Notwithstanding any other law, funds accumulated from the county 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 entered into 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 population between 13,500 and 14,000
    
Sec. 3.5. (a) This section applies only to a county having a population of more than thirteen thousand five hundred (13,500) but less than fourteen thousand (14,000).
    (b) The county council of a county described in subsection (a) may, by ordinance, determine that additional county adjusted gross income tax revenue is needed in the county to fund the operation and maintenance of a jail and justice center.
    (c) Notwithstanding section 2 of this chapter, if the county council adopts an ordinance under subsection (b), the county council may impose the county adjusted gross income tax at a rate of one and three-tenths percent (1.3%) on adjusted gross income. However, a county may impose the county adjusted gross income tax at a rate of one and three-tenths percent (1.3%) for only eight (8) years. After the county has imposed the county adjusted gross income tax at a rate of one and three-tenths percent (1.3%) for eight (8) years, the rate is reduced to one percent (1%). If the county council imposes the county adjusted gross income tax at a rate of one and three-tenths percent (1.3%), the county council may decrease the rate or rescind the tax in the manner provided under this chapter.
    (d) If a county imposes the county adjusted gross income tax at a rate of one and three-tenths percent (1.3%) under this section, the revenue derived from a tax rate of three-tenths percent (0.3%) on adjusted gross income:
        (1) shall be paid to the county treasurer;
        (2) may be used only to pay the costs of operating and maintaining 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 maximum permissible 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 additional revenue; balance transfer to county highway fund
    
Sec. 3.6. (a) This section applies only to a county having a population of more than six thousand (6,000) but less than eight thousand (8,000).
    (b) The county council may, by ordinance, determine that additional county adjusted gross income tax revenue is needed in the county to:
        (1) finance, construct, acquire, improve, renovate, or equip the county courthouse; and
        (2) repay bonds issued, or leases entered into, for constructing, acquiring, improving, renovating, and equipping the county courthouse.
    (c) In addition to the rates permitted under section 2 of this chapter, the county council may impose the county adjusted gross income tax at a rate of twenty-five hundredths percent (0.25%) on the adjusted gross income of county taxpayers if the county council makes the finding and determination set forth in subsection (b). The tax imposed under this section may be imposed only until the 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 or leases 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 refunding bonds) or a lease entered into under subsection (b)(2) may not exceed twenty-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). The tax rate may not be imposed for a time greater than is necessary to pay the costs of financing, constructing, acquiring, renovating, and equipping the county courthouse.
    (e) The county treasurer shall establish a county courthouse revenue fund to be used only for purposes described in this section. County adjusted gross income tax revenues derived from the tax rate imposed under this section shall be deposited in the county courthouse revenue fund before a certified distribution is made under section 11 of this chapter.
    (f) County adjusted gross income tax revenues derived from the tax 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 local government 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 leases entered into for purposes described in subsection (b).
    (g) A county described in subsection (a) possesses unique economic development challenges due to:
        (1) the county's heavy agricultural base;
        (2) the presence of a large amount of state owned property in the county that is exempt from property taxation; and
        (3) recent obligations of the school corporation in the county that have already increased property taxes in the county and imposed additional property tax burdens on the county's agricultural base.
Maintaining low property tax rates is essential to economic development. The use of county adjusted gross income tax revenues as provided in this chapter to pay any bonds issued or leases entered into to finance the construction, acquisition, improvement, renovation, and equipping described in subsection (b), rather than the use of property taxes, promotes that purpose.
    (h) Notwithstanding any other law, funds accumulated from the county 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 entered into under this section;
shall be transferred to the county highway fund to be used for construction, resurfacing, restoration, and rehabilitation of county highways, 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 a county council under this chapter remains in effect until rescinded.
    (b) Except as provided in subsection (e), the county council may rescind the county adjusted gross income tax by adopting an ordinance to rescind the tax after March 31 but before August 1 of a year.
    (c) Any ordinance adopted under this section takes effect October 1 of the year the ordinance is adopted.
    (d) The auditor of a county shall record all votes taken on ordinances presented for a vote under the authority of this section and immediately send a certified copy of the results to the department by certified mail.
    (e) A county council may not rescind the county adjusted gross income tax or take any action that would result in a civil taxing unit in the county having a smaller certified share than the certified share to which the civil taxing unit was entitled when the civil taxing unit pledged county adjusted gross income tax if the civil taxing unit or any commission, board, department, or authority that is authorized by statute to pledge county adjusted gross income tax has pledged

county adjusted gross income tax for any purpose permitted by IC 5-1-14 or any other statute. The prohibition in this section does not apply if the civil taxing unit pledges legally available revenues to fully replace the civil taxing unit's certified share that has been pledged.
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 the county adjusted gross income tax is not in effect during a county taxpayer's entire taxable year, then the amount of county adjusted gross income tax that the county taxpayer owes for that taxable year equals the product of:
        (1) the amount of county adjusted gross income tax the county taxpayer would owe if the tax had been imposed during the county taxpayer's entire taxable year; multiplied by
        (2) a fraction:
            (A) The numerator of the fraction equals the number of days during the county taxpayer's taxable year during which the county adjusted gross income tax was in effect.
            (B) The denominator of the fraction equals the total number of 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 in IC 22-4-15-1(e)); and
        (3) has no earned income for the part of the taxpayer's taxable year that the tax was in effect;
the county taxpayer's adjusted gross income for the taxable year is reduced by the amount of the taxpayer's earned income for the taxable year.
    (c) A taxpayer who qualifies under subsection (b) must file a claim for a refund for the difference between the county adjusted gross income tax owed, as determined under subsection (a), and the tax owed, as determined under subsection (b). A claim for a refund must be on a form approved by the department and include all supporting 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 particular taxable year a county taxpayer is liable for an income tax imposed by a county, city, town, or other local governmental entity located outside of Indiana, that county taxpayer is entitled to a cr


State Codes and Statutes

State Codes and Statutes

Statutes > Indiana > Title6 > Ar3.5 > Ch1.1

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 is given in IC 6-3-1-3.5(a), except that in the case of a county taxpayer who is not a resident of a county that has imposed the county adjusted gross income tax, the term includes only adjusted gross income derived from the taxpayer's principal place of business or employment.
    "Apartment complex" means real property consisting of at least five (5) units that are regularly used to rent or otherwise furnish residential accommodations for periods of at least thirty (30) days.
    "Civil taxing unit" means any entity having the power to impose ad valorem property taxes except a school corporation. The term does not include a solid waste management district that is not entitled to a distribution under section 1.3 of this chapter. However, in the case of a consolidated city, the term "civil taxing unit" includes the consolidated city and all special taxing districts, all special service districts, and all entities whose budgets and property tax levies are subject to review under IC 36-3-6-9.
    "County council" includes the city-county council of a consolidated city.
    "County taxpayer" as it relates to a county for a year means any individual:
        (1) who resides in that county on the date specified in section 16 of this chapter; or
        (2) who maintains the taxpayer's principal place of business or employment in that county on the date specified in section 16 of this chapter and who does not on that same date reside in another county in which the county adjusted gross income tax, the county option income tax, or the county economic development income tax is in effect.
    "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 year means any county taxpayer for that county for that year who is not a resident 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 year means any county taxpayer who resides in that county on the date specified in section 16 of this chapter.
    "Residential rental property" means real property consisting of not more than four (4) units that are regularly used to rent or otherwise furnish residential accommodations for periods of at least thirty (30)

days.
    "School corporation" means any public school corporation established 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 distribution made to a county under this chapter among the civil taxing units and school corporations in the county, the allocation amount for a civil taxing unit or school corporation is the amount determined using the following formula:
        STEP ONE: Determine the sum of the total property taxes being collected by the civil taxing unit or school corporation during the calendar year of the distribution.
        STEP TWO: Determine the sum of the following:
            (A) Amounts appropriated from property taxes to pay the principal of or interest on any debenture or other debt obligation issued after June 30, 2005, other than an obligation described in subsection (b).
            (B) Amounts appropriated from property taxes to make payments on any lease entered into after June 30, 2005, other than a lease described in subsection (c).
            (C) The proceeds of any property that are:
                (i) received as the result of the issuance of a debt obligation described in clause (A) or a lease described in clause (B); and
                (ii) appropriated from property taxes for any purpose other than to refund or otherwise refinance a debt obligation or lease described in subsection (b) or (c).
        STEP THREE: Subtract the STEP TWO amount from the STEP ONE amount.
        STEP FOUR: Determine the sum of:
            (A) the STEP THREE amount; plus
            (B) the civil taxing unit's or school corporation's certified distribution for the previous calendar year.
The allocation amount is subject to adjustment as provided in IC 36-8-19-7.5.
    (b) Except as provided in this subsection, an appropriation from property taxes to repay interest and principal of a debt obligation is not deducted from the allocation amount for a civil taxing unit or school 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 issued before July 1, 2005. However, an appropriation from property taxes related to a debt obligation issued after June 30, 2005, is deducted if the debt extends payments on a debt or lease beyond the time in which the debt or lease would have been payable if the debt or lease

had not been refinanced or increases the total amount that must be paid on a debt or lease in excess of the amount that would have been paid if the debt or lease had not been refinanced. The amount of the deduction is the annual amount for each year of the extension period or the annual amount of the increase over the amount that would have been paid.
    (c) Except as provided in this subsection, an appropriation from property taxes to make payments on a lease is not deducted from the allocation 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 lease entered into after June 30, 2005, is deducted if the lease extends payments on a debt or lease beyond the time in which the debt or lease would have been payable if the debt or lease had not been refinanced or increases the total amount that must be paid on a debt or lease in excess of the amount that would have been paid if the debt or lease had not been refinanced. The amount of the deduction is the annual amount for each year of the extension period or the annual amount 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 waste management district (as defined in IC 13-11-2-47) or a joint solid waste management district (as defined in IC 13-11-2-113).
    (b) A district may not receive a distribution under this chapter unless a majority of the members of each of the county fiscal bodies of the counties within the district passes a resolution approving the distribution.
    (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 or rescinds 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 homestead credit or property tax replacement credit authorized under this chapter;
may be exercised at any time in a year before November 1 of that

year.
    (b) Notwithstanding any other provision of this chapter, an ordinance authorized by this chapter that imposes or increases a tax or a tax rate takes effect as follows:
        (1) An ordinance adopted after December 31 of the immediately preceding year and before October 1 of the current year takes effect October 1 of the current year.
        (2) An ordinance adopted after September 30 and before October 16 of the current year takes effect November 1 of the current year.
        (3) An ordinance adopted after October 15 and before November 1 of the current year takes effect December 1 of the current year.
    (c) Notwithstanding any other provision of this chapter, an ordinance authorized by this chapter that decreases or rescinds a tax or a tax rate takes effect as follows:
        (1) An ordinance adopted after December 31 of the immediately preceding year and before October 1 of the current year takes effect on the later of October 1 of the current year or the first day of the month in the current year as the month in which the last increase in the tax or tax rate occurred.
        (2) An ordinance adopted after September 30 and before October 16 of the current year takes effect on the later of November 1 of the current year or the first day of the month in the current year as the month in which the last increase in the tax or tax rate occurred.
        (3) An ordinance adopted after October 15 and before November 1 of the current year takes effect December 1 of the current year.
    (d) Notwithstanding any other provision of this chapter, an ordinance authorized by this chapter that grants, increases, decreases, rescinds, or changes a homestead credit or property tax replacement credit authorized under this chapter takes effect for and applies to property taxes first due and payable in the year immediately following the year in which the ordinance is adopted.
As added by P.L.113-2010, SEC.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 county option income tax will not be in effect on October 1 of a year under an ordinance adopted during a previous calendar year may impose the county adjusted gross income tax on the adjusted gross income of 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 gross income 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%) on the 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 of one-fourth of one percent (0.25%) on their adjusted gross income. If the county council elects to decrease the county adjusted gross income tax, the county council may decrease the county adjusted gross income tax rate in increments of one-tenth of one percent (0.1%).
    (c) To impose the county adjusted gross income tax, the county council must, after March 31 but before August 1 of a year, adopt an ordinance. The ordinance must substantially state the following:
        "The ________ County Council imposes the county adjusted gross 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 the county and one-fourth of one percent (0.25%) on the nonresident county taxpayers of the county. This tax takes effect October 1 of this year.".
    (d) Any ordinance adopted under this section takes effect October 1 of the year the ordinance is adopted.
    (e) The auditor of a county shall record all votes taken on ordinances presented for a vote under the authority of this section and immediately send a certified copy of the results to the department by certified mail.
    (f) If the county adjusted gross income tax had previously been adopted 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 this chapter, then the county adjusted gross income tax continues in that county at the rates in effect at the time of enactment until the rates are modified or the tax is rescinded in the manner prescribed by this chapter. If a county's adjusted gross income tax is continued under this subsection, then the tax shall be treated as if it had been imposed under this chapter and is subject to rescission or reduction as authorized 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 that additional county adjusted gross income tax revenue is needed in the county 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 demolition of existing buildings and the acquisition of land; and         (2) repay bonds issued or leases entered into for the purposes described in subdivision (1).
    (c) The county council may, by ordinance, determine that additional county adjusted gross income tax revenue is needed in the county to operate or maintain any of the facilities described in subsection (b)(1)(A) through (b)(1)(D) that are located in the county. The county council may make a determination under both this subsection 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 tax at 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 county council makes a finding and determination set forth in subsection (b) or (c).
    (e) If the county council imposes the tax under this section 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) are completed; and
        (2) all bonds issued or leases entered into to finance the construction, acquisition, improvement, renovation, and equipping described in subsection (b) are fully paid;
the county council shall, subject to subsection (d), establish a tax rate under this section by ordinance such that the revenue from the tax does not exceed the costs of operating and maintaining the jail facilities described in subsection (b)(1)(A). The tax rate may not be imposed at a rate greater than is necessary to carry out the purposes described in subsections (b) and (c), as applicable.
    (f) An ordinance adopted under this section before August 1 in a year applies to the imposition of county income taxes after September 30 in that year. An ordinance adopted under this section after July 31 of a year initially applies to the imposition of county option income taxes after September 30 of the immediately following year.
    (g) The tax imposed under this section may be imposed only until the latest of the following:
        (1) The date on which the financing, construction, acquisition, improvement, renovation, and equipping described in subsection (b) are completed.
        (2) The date on which the last of any bonds issued or leases entered into to finance the construction, acquisition, improvement, renovation, and equipping described in subsection (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 facilities revenue fund to be used only for purposes described in this section. County adjusted gross income tax revenues derived from the tax rate imposed under this section shall be deposited in the criminal justice facilities revenue fund before making a certified distribution under section 11 of this chapter.
    (j) County adjusted gross income tax revenues derived from the tax 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 local government 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 leases entered into for any or all the purposes described in subsection (b).
    (k) Notwithstanding any other law, money remaining in the criminal justice facilities revenue fund established under subsection (i) after the tax imposed by this section is terminated under subsection (g) shall be transferred to the county highway fund to be used for construction, resurfacing, restoration, and rehabilitation of county 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 with population between 41,000 and 43,000
    
Sec. 2.5. (a) This section applies only to a county having a population of more than forty-one thousand (41,000) but less than forty-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 gross income tax revenue is needed in the county to fund the operation and maintenance of a jail and juvenile detention center opened after July 1, 1998.
    (d) Notwithstanding section 2 of this chapter, if the county council adopts an ordinance under subsection (c), the county council may impose the county adjusted gross income tax at a rate of one and one-tenth percent (1.1%) on adjusted gross income for fiscal years beginning before July 1, 2011. For fiscal years beginning after June 30, 2011, the rate is reduced to one percent (1%). If the county council imposes the county adjusted gross income tax at a rate of one and one-tenth percent (1.1%), the county council may decrease the rate or rescind the tax in the manner provided under this chapter.
    (e) If a county imposes the county adjusted gross income tax at a rate of one and one-tenth percent (1.1%) under this section, the revenue 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 and juvenile detention center opened after July 1, 1998; and
        (3) may not be considered by the department of local government finance in determining the county's maximum permissible 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 that additional county adjusted gross income tax revenue is needed in the county to:
        (1) fund the costs (including pre-trial costs) of a capital trial that has been moved to another county for trial; and
        (2) to repay money borrowed for the purpose described in subdivision (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 adjusted gross 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 until the later of the following:
        (1) The date on which the costs described in subsection (b), including the repayment of money borrowed for the purposes described 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) may not exceed three (3) years.
    (f) The county treasurer shall establish a capital trial revenue fund to be used only for purposes described in this section. County adjusted gross income tax revenues derived from the tax rate imposed under this section shall be deposited in the capital trial revenue fund before making a certified distribution under section 11 of this chapter.
    (g) County adjusted gross income tax revenues derived from the tax 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 local government finance in determining the county's maximum permissible 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 the capital trial revenue fund established under subsection (f) after the tax imposed by this section is terminated under subsection (d) shall be transferred to the county general fund to be used for criminal justice 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 with population between 71,000 and 71,400
    
Sec. 2.7. (a) This section applies to a county having a population of more than seventy-one thousand (71,000) but less than seventy-one thousand four hundred (71,400).
    (b) The county council may, by ordinance, determine that additional county adjusted gross income tax revenue is needed in the county to:
        (1) finance, construct, acquire, improve, renovate, or equip the county jail and related buildings and parking facilities, including costs related to the demolition of existing buildings and the acquisition of land; and
        (2) repay bonds issued, or leases entered into, for constructing, acquiring, improving, renovating, and equipping the county jail and related buildings and parking facilities, including costs related to the demolition of existing buildings and the acquisition 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 tax at 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 county council makes the finding and determination set forth in subsection (b). The tax imposed under this section may be imposed only until the 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 or leases 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 refunding bonds) or a lease entered into under subsection (b)(2) may not exceed 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). The tax rate may not be imposed at a rate greater than is necessary to pay the costs of financing, acquiring, improving, renovating, and equipping the county jail and related buildings and parking facilities, including costs related to the demolition of existing buildings and the acquisition of land.     (e) The county treasurer shall establish a county jail revenue fund to be used only for purposes described in this section. County adjusted gross income tax revenues derived from the tax rate imposed under this section shall be deposited in the county jail revenue fund before making a certified distribution under section 11 of this chapter.
    (f) County adjusted gross income tax revenues derived from the tax 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 local government 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 leases entered into, for purposes described in subsection (b).
    (g) A county described in subsection (a) possesses unique economic development challenges due to underemployment in relation to similarly situated counties. Maintaining low property tax rates is essential to economic development and the use of county adjusted gross income tax revenues as provided in this chapter to pay any bonds issued or leases entered into to finance the construction, acquisition, improvement, renovation, and equipping described under subsection (b), rather than use of property taxes, promotes that purpose.
    (h) Notwithstanding any other law, funds accumulated from the county 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 entered into under this section;
shall be transferred to the county highway fund to be used for construction, resurfacing, restoration, and rehabilitation of county highways, roads, and bridges.
As added by P.L.135-2001, SEC.2. Amended by P.L.1-2002, SEC.33 and P.L.90-2002, SEC.290.

IC 6-3.5-1.1-2.8
Additional rate for criminal justice facilities; fund; use of additional 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 hundred eighty-two thousand seven hundred ninety (182,790) but less than two hundred thousand (200,000); and
        (2) a county having a population of more than forty-five thousand (45,000) but less than forty-five thousand nine hundred (45,900).
    (b) The county council may, by ordinance, determine that additional county adjusted gross income tax revenue is needed in the county 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 demolition of existing buildings and the acquisition of land; and
        (2) repay bonds issued or leases entered into for the purposes described in subdivision (1).
    (c) The county council may, by ordinance, determine that additional county adjusted gross income tax revenue is needed in the county 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 in subsection (a)(1) or (a)(2) may make a determination under both this subsection 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 tax at 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 county council makes a finding and determination set forth in subsection (b) or (c). The tax rate may not be imposed at a rate greater than is necessary to carry out the purposes described in subsections (b) and (c), as applicable.
    (e) This subsection applies only to a county described in subsection (a)(1). If the county council imposes the tax under this section 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) are completed; and
        (2) all bonds issued (including any refunding bonds) or leases entered into to finance the construction, acquisition, improvement, renovation, and equipping described in subsection (b) are fully paid;
the county council shall, subject to subsection (d), establish a tax rate under this section by ordinance such that the revenue from the tax does not exceed the costs of operating and maintaining the jail facilities referred to in subsection (b)(1)(A).
    (f) The tax imposed under this section may be imposed only until the last of the following dates:
        (1) The date on which the financing, construction, acquisition, improvement, renovation, and equipping described in subsection (b) are completed.
        (2) The date on which the last of any bonds issued (including any refunding bonds) or leases entered into to finance the construction, acquisition, improvement, renovation, and

equipping described in subsection (b) are fully paid.
        (3) If the county imposing the tax under this section is a county described in subsection (a)(1), the date on which an ordinance adopted 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 facilities revenue fund to be used only for purposes described in this section. County adjusted gross income tax revenues derived from the tax rate imposed under this section shall be deposited in the criminal justice facilities revenue fund before making a certified distribution under section 11 of this chapter.
    (i) County adjusted gross income tax revenues derived from the tax 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 local government 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 leases entered into for any or all the purposes described in subsection (b).
    (j) Notwithstanding any other law, money remaining in the criminal justice facilities revenue fund established under subsection (h) after the tax imposed by this section is terminated under subsection (f) shall be transferred to the county highway fund to be used for construction, resurfacing, restoration, and rehabilitation of county 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 additional revenue; balance transfer to county highway fund
    
Sec. 2.9. (a) This section applies to a county having a population of more than twenty-nine thousand (29,000) but less than thirty thousand (30,000).
    (b) The county council may, by ordinance, determine that additional county adjusted gross income tax revenue is needed in the county to:
        (1) finance, construct, acquire, improve, renovate, remodel, or equip the 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; and
        (2) repay bonds issued or leases entered into for constructing, acquiring, improving, renovating, remodeling, and equipping the 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 tax at 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 county council makes the finding and determination set forth in subsection (b). The tax imposed under this section may be imposed only until the later of the date on which the financing on, acquisition, improvement, renovation, remodeling, and equipping described in subsection (b) are completed or the date on which the last of any bonds issued or leases entered into to finance the construction, acquisition, improvement, renovation, remodeling, and equipping described in subsection (b) are fully paid. The term of the bonds issued (including any refunding bonds) or a lease entered into under subsection (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). The tax rate may not be imposed at a rate greater than is necessary to pay the costs of financing, acquiring, improving, renovating, remodeling, and equipping the 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.
    (e) The county treasurer shall establish a county jail revenue fund to be used only for purposes described in this section. County adjusted gross income tax revenues derived from the tax rate imposed under this section shall be deposited in the county jail revenue fund before making a certified distribution under section 11 of this chapter.
    (f) County adjusted gross income tax revenues derived from the tax 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 local government 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 leases entered into for purposes described in subsection (b).
    (g) A county described in subsection (a) possesses unique governmental and economic development challenges due to:
        (1) underemployment in relation to similarly situated counties and the loss of a major manufacturing business;
        (2) an increase in property taxes for taxable years after December 31, 2000, for the construction of a new elementary school; and
        (3) overcrowding of the county jail, the costs associated with housing the county's inmates outside the county, and the potential unavailability of additional housing for inmates outside the county. The use of county adjusted gross income tax revenues as provided in this chapter is necessary for the county to provide adequate jail capacity in the county and to maintain low property tax rates essential to economic development. The use of county adjusted gross income tax revenues as provided in this chapter to pay any bonds issued or leases entered into to finance the construction, acquisition, improvement, renovation, remodeling, and equipping described in subsection (b), rather than the use of property taxes, promotes those purposes.
    (h) Notwithstanding any other law, funds accumulated from the county 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 entered into under this section;
shall be transferred to the county highway fund to be used for construction, resurfacing, restoration, and rehabilitation of county highways, 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 adjusted gross income tax rate imposed upon the resident county taxpayers of the county. To increase the rate, the county council must, after March 31 but before August 1 of a year, adopt an ordinance. The ordinance must substantially state the following:
        "The ________ County Council increases the county adjusted gross income tax rate imposed upon the resident county taxpayers of the county from ________ percent (___%) to _______ percent (___%). This tax rate increase takes effect October 1 of this year.".
    (b) Any ordinance adopted under this section takes effect October 1 of the year the ordinance is adopted.
    (c) The auditor of a county shall record all votes taken on ordinances presented for a vote under the authority of this section and immediately send a certified copy of the results to the department by certified mail.
As added by P.L.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 of ordinance; procedures
    
Sec. 3.1. (a) The county council may decrease the county adjusted gross income tax rate imposed upon the resident county taxpayers of the county. To decrease the rate, the county council must, after March 31 but before August 1 of a year, adopt an ordinance. The ordinance must substantially state the following:
        "The ________ County Council decreases the county adjusted

gross income tax rate imposed upon the resident county taxpayers of the county from _____ percent (___%) to _____ percent (___%). This tax rate decrease takes effect October 1 of this year.".
    (b) A county council may not decrease the county adjusted gross income tax rate if the county or any commission, board, department, or authority that is authorized by statute to pledge the county adjusted gross income tax has pledged the county adjusted gross income tax for any purpose permitted by IC 5-1-14 or any other statute.
    (c) Any ordinance adopted under this section takes effect October 1 of the year the ordinance is adopted.
    (d) The auditor of a county shall record all votes taken on ordinances presented for a vote under the authority of this section and immediately send a certified copy of the results to the department by certified mail.
    (e) Notwithstanding IC 6-3.5-7, and except as provided in subsection (f), a county council that decreases the county adjusted gross income tax rate in a year may not in the same year adopt or increase the county economic development income tax under IC 6-3.5-7.
    (f) This subsection applies only to a county having a population of more than one hundred ten thousand (110,000) but less than one hundred fifteen thousand (115,000). The county council may adopt or increase the county economic development income tax rate under IC 6-3.5-7 in the same year that the county council decreases the county adjusted gross income tax rate if the county economic development income tax rate plus the county adjusted gross income tax rate in effect after the county council decreases the county adjusted gross income tax rate is less than the county adjusted gross income tax rate in effect before the adoption of an ordinance under this section decreasing the rate of the county adjusted gross income tax.
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 court order; 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 Construction Standards; and
            (B) Indiana jail operation standards adopted by the department of correction; and
        (3) has insufficient revenue to finance the construction,

acquisition, improvement, renovation, and equipping of a county jail and related buildings and parking facilities.
    (b) For purposes of this section, "county jail" includes any other penal facility that is:
        (1) located in; and
        (2) operated by;
the county.
    (c) The county council may, by ordinance, determine that additional county adjusted gross income tax revenue is needed in the county to:
        (1) finance, construct, acquire, improve, renovate, or equip a county jail and related buildings and parking facilities, including costs related to the demolition of existing buildings and the acquisition of land; and
        (2) repay bonds issued or leases entered into for constructing, acquiring, improving, renovating, and equipping the county jail and related buildings and parking facilities, including costs related to the demolition of existing buildings and the acquisition 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 tax at a rate of twenty-five hundredths percent (0.25%) on the adjusted gross income of county taxpayers if the county council makes the finding and determination set forth in subsection (c). The tax imposed under this section may be imposed only until the later of the date on which the financing on acquisition, improvement, renovation, and equipping described in subsection (c) is completed or the date on which the last of any bonds issued or leases entered into to finance the construction, acquisition, improvement, renovation, and equipping described in subsection (c) are fully paid. The term of the bonds issued (including any refunding bonds) or a lease entered into under 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). The tax rate may not be imposed at a rate greater than is necessary to pay the costs of financing, acquiring, improving, renovating, and equipping the county jail and related buildings and parking facilities, including costs related to the demolition of existing buildings and the acquisition of land.
    (f) The county treasurer shall establish a county jail revenue fund to be used only for purposes described in this section. County adjusted gross income tax revenues derived from the tax rate imposed under this section shall be deposited in the county jail revenue fund before making a certified distribution under section 11 of this chapter.
    (g) County adjusted gross income tax revenues derived from the tax 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 local government 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 leases entered into for purposes described in subsection (c).
    (h) A county described in subsection (a) possesses unique economic development challenges due to underemployment in relation to similarly situated counties. Maintaining low property tax rates is essential to economic development. The use of county adjusted gross income tax revenues as provided in this chapter, rather than use of property taxes, to pay any bonds issued or leases entered into to finance the construction, acquisition, improvement, renovation, and equipping described in subsection (c) promotes that purpose.
    (i) Notwithstanding any other law, funds accumulated from the county 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 entered into 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 population between 13,500 and 14,000
    
Sec. 3.5. (a) This section applies only to a county having a population of more than thirteen thousand five hundred (13,500) but less than fourteen thousand (14,000).
    (b) The county council of a county described in subsection (a) may, by ordinance, determine that additional county adjusted gross income tax revenue is needed in the county to fund the operation and maintenance of a jail and justice center.
    (c) Notwithstanding section 2 of this chapter, if the county council adopts an ordinance under subsection (b), the county council may impose the county adjusted gross income tax at a rate of one and three-tenths percent (1.3%) on adjusted gross income. However, a county may impose the county adjusted gross income tax at a rate of one and three-tenths percent (1.3%) for only eight (8) years. After the county has imposed the county adjusted gross income tax at a rate of one and three-tenths percent (1.3%) for eight (8) years, the rate is reduced to one percent (1%). If the county council imposes the county adjusted gross income tax at a rate of one and three-tenths percent (1.3%), the county council may decrease the rate or rescind the tax in the manner provided under this chapter.
    (d) If a county imposes the county adjusted gross income tax at a rate of one and three-tenths percent (1.3%) under this section, the revenue derived from a tax rate of three-tenths percent (0.3%) on adjusted gross income:
        (1) shall be paid to the county treasurer;
        (2) may be used only to pay the costs of operating and maintaining 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 maximum permissible 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 additional revenue; balance transfer to county highway fund
    
Sec. 3.6. (a) This section applies only to a county having a population of more than six thousand (6,000) but less than eight thousand (8,000).
    (b) The county council may, by ordinance, determine that additional county adjusted gross income tax revenue is needed in the county to:
        (1) finance, construct, acquire, improve, renovate, or equip the county courthouse; and
        (2) repay bonds issued, or leases entered into, for constructing, acquiring, improving, renovating, and equipping the county courthouse.
    (c) In addition to the rates permitted under section 2 of this chapter, the county council may impose the county adjusted gross income tax at a rate of twenty-five hundredths percent (0.25%) on the adjusted gross income of county taxpayers if the county council makes the finding and determination set forth in subsection (b). The tax imposed under this section may be imposed only until the 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 or leases 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 refunding bonds) or a lease entered into under subsection (b)(2) may not exceed twenty-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). The tax rate may not be imposed for a time greater than is necessary to pay the costs of financing, constructing, acquiring, renovating, and equipping the county courthouse.
    (e) The county treasurer shall establish a county courthouse revenue fund to be used only for purposes described in this section. County adjusted gross income tax revenues derived from the tax rate imposed under this section shall be deposited in the county courthouse revenue fund before a certified distribution is made under section 11 of this chapter.
    (f) County adjusted gross income tax revenues derived from the tax 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 local government 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 leases entered into for purposes described in subsection (b).
    (g) A county described in subsection (a) possesses unique economic development challenges due to:
        (1) the county's heavy agricultural base;
        (2) the presence of a large amount of state owned property in the county that is exempt from property taxation; and
        (3) recent obligations of the school corporation in the county that have already increased property taxes in the county and imposed additional property tax burdens on the county's agricultural base.
Maintaining low property tax rates is essential to economic development. The use of county adjusted gross income tax revenues as provided in this chapter to pay any bonds issued or leases entered into to finance the construction, acquisition, improvement, renovation, and equipping described in subsection (b), rather than the use of property taxes, promotes that purpose.
    (h) Notwithstanding any other law, funds accumulated from the county 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 entered into under this section;
shall be transferred to the county highway fund to be used for construction, resurfacing, restoration, and rehabilitation of county highways, 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 a county council under this chapter remains in effect until rescinded.
    (b) Except as provided in subsection (e), the county council may rescind the county adjusted gross income tax by adopting an ordinance to rescind the tax after March 31 but before August 1 of a year.
    (c) Any ordinance adopted under this section takes effect October 1 of the year the ordinance is adopted.
    (d) The auditor of a county shall record all votes taken on ordinances presented for a vote under the authority of this section and immediately send a certified copy of the results to the department by certified mail.
    (e) A county council may not rescind the county adjusted gross income tax or take any action that would result in a civil taxing unit in the county having a smaller certified share than the certified share to which the civil taxing unit was entitled when the civil taxing unit pledged county adjusted gross income tax if the civil taxing unit or any commission, board, department, or authority that is authorized by statute to pledge county adjusted gross income tax has pledged

county adjusted gross income tax for any purpose permitted by IC 5-1-14 or any other statute. The prohibition in this section does not apply if the civil taxing unit pledges legally available revenues to fully replace the civil taxing unit's certified share that has been pledged.
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 the county adjusted gross income tax is not in effect during a county taxpayer's entire taxable year, then the amount of county adjusted gross income tax that the county taxpayer owes for that taxable year equals the product of:
        (1) the amount of county adjusted gross income tax the county taxpayer would owe if the tax had been imposed during the county taxpayer's entire taxable year; multiplied by
        (2) a fraction:
            (A) The numerator of the fraction equals the number of days during the county taxpayer's taxable year during which the county adjusted gross income tax was in effect.
            (B) The denominator of the fraction equals the total number of 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 in IC 22-4-15-1(e)); and
        (3) has no earned income for the part of the taxpayer's taxable year that the tax was in effect;
the county taxpayer's adjusted gross income for the taxable year is reduced by the amount of the taxpayer's earned income for the taxable year.
    (c) A taxpayer who qualifies under subsection (b) must file a claim for a refund for the difference between the county adjusted gross income tax owed, as determined under subsection (a), and the tax owed, as determined under subsection (b). A claim for a refund must be on a form approved by the department and include all supporting 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 particular taxable year a county taxpayer is liable for an income tax imposed by a county, city, town, or other local governmental entity located outside of Indiana, that county taxpayer is entitled to a cr