LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6539 NOTE PREPARED: Dec 21, 2021
BILL NUMBER: HB 1357 BILL AMENDED:
SUBJECT: Local Income Taxes.
FIRST AUTHOR: Rep. Porter BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
DEDICATED
FEDERAL
Summary of Legislation: The bill decreases the account balance threshold that triggers a supplemental
distribution of local income tax to a county from the county's trust account from 15% to 10%.
Effective Date: January 1, 2022 (retroactive).
Explanation of State Expenditures: State Budget Agency (SBA) and Department of Local Government
Finance (DLGF): The SBA will compute the amount of the supplemental distributions, and the DLGF will
determine the allocation among the local units. Each agency’s current level of resources should be sufficient
to implement the provisions within the bill.
Explanation of State Revenues: The combination of increased supplemental distributions and the timing
of the accounting of collections and distributions creates a potential General Fund impact by increasing the
risk that General Fund revenue may be needed to pay local income tax certified distributions. The probability
of state General Fund losses will increase if the economy contracts and insufficient funds are held in the local
income tax reserve.
Explanation of Local Expenditures:
Explanation of Local Revenues: The bill lowers the threshold used to determine if a county will receive
a supplemental distribution in the years beginning in CY 2022. The bill is estimated to increase the total
statewide supplement distribution by $136.8 M in CY 2022. [The total statewide distributions are estimated
to be approximately $317.0 M in CY 2022.]
HB 1357 1 By reducing the threshold for supplemental distributions, this bill will increase the frequency of supplemental
distributions paid to counties. The amount of the supplemental distribution is equal to the amount of the
balance in the county’s trust account that exceeds 10% of the certified distributions to be made to the county
in the determination year. The SBA will determine supplemental distributions using the new parameters for
distributions beginning in CY 2022. This bill is estimated to trigger an additional $136.8 M in distributions
to 83 counties in CY 2022, including 11 counties that would not have received a distribution at the 15%
threshold. (Note: A table at the end of this document reports additional supplemental distribution estimates
by county.)
State Agencies Affected: State Budget Agency; Department of Local Government Finance.
Local Agencies Affected: Local units.
Information Sources: County local income tax trust balance accounts; IHS Markit October 2021 County-
Level Forecasts; State Budget Agency, CY 2022 Local Income Tax Certified Distributions.
Fiscal Analyst: Olivia Smith, 317-232-9869.
HB 1357 2 Estimated Increase in CY 2022 Supplemental Distributions
County
Estimated
Additional
Supplemental
DistributionCounty
Estimated
Additional
Supplemental
DistributionCounty
Estimated
Additional
Supplemental
Distribution
Adams $670,000 Jasper $1,166,000 Shelby $886,000
Allen $7,999,000 Jay $435,000 Spencer $206,000
Bartholomew $2,221,000 Jefferson $0 Starke $365,000
Benton $182,000 Jennings $678,000 Steuben $863,000
Blackford $176,000 Johnson $2,415,000 Sullivan $0
Boone $2,683,000 Knox $0 Switzerland $120,000
Brown $469,000 Kosciusko $1,122,000 Tippecanoe $0
Carroll $578,000 Lagrange $659,000 Tipton $492,000
Cass $1,052,000 Lake $9,643,000 Union $152,000
Clark $3,178,000 LaPorte $1,221,000 Vanderburgh $2,894,000
Clay $636,000 Lawrence $856,000 Vermillion $256,000
Clinton $559,000 Madison $3,030,000 Vigo $2,228,000
Crawford $93,000 Marion $25,164,000 Wabash $1,071,000
Daviess $573,000 Marshall $728,000 Warren $238,000
Dearborn $872,000 Martin $54,000 Warrick $1,129,000
Decatur $278,000 Miami $796,000 Washington $539,000
DeKalb $1,260,000 Monroe $2,428,000 Wayne $852,000
Delaware $1,658,000 Montgomery $974,000 Wells $736,000
Dubois $36,000 Morgan $2,509,000 White $669,000
Elkhart $2,903,000 Newton $166,000 Whitley $788,000
Fayette $290,000 Noble $932,000
Floyd $1,776,000 Ohio $0
Fountain $395,000 Orange $314,000
Franklin $478,000 Owen $0
Fulton $0 Parke $422,000
Gibson $0 Perry $351,000
Grant $1,461,000 Pike $117,000
Greene $639,000 Porter $1,432,000
Hamilton $9,990,000 Posey $487,000
Hancock $2,446,000 Pulaski $0
Harrison $486,000 Putnam $852,000
Hendricks $4,759,000 Randolph $729,000
Henry $448,000 Ripley $508,000
Howard $1,705,000 Rush $399,000
Huntington $844,000 St. Joseph $6,364,000
Jackson $1,110,000 Scott $489,000
HB 1357 3