Indiana 2022 Regular Session

Indiana House Bill HB1357 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	HOUSE BILL No. 1357
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 6-3.6-9-15.
7	7	Synopsis: Local income taxes. Decreases the account balance
8	8	threshold that triggers a supplemental distribution of local income tax
9	9	to a county from the county's trust account from 15% to 10%.
10	10	Effective: January 1, 2022 (retroactive).
11	11	Porter
12	12	January 11, 2022, read first time and referred to Committee on Ways and Means.
13	13	2022 IN 1357—LS 6539/DI 120 Introduced
14	14	Second Regular Session of the 122nd General Assembly (2022)
15	15	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
16	16	Constitution) is being amended, the text of the existing provision will appear in this style type,
17	17	additions will appear in this style type, and deletions will appear in this style type.
18	18	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
19	19	provision adopted), the text of the new provision will appear in this style type. Also, the
20	20	word NEW will appear in that style type in the introductory clause of each SECTION that adds
21	21	a new provision to the Indiana Code or the Indiana Constitution.
22	22	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
23	23	between statutes enacted by the 2021 Regular Session of the General Assembly.
24	24	HOUSE BILL No. 1357
25	25	A BILL FOR AN ACT to amend the Indiana Code concerning
26	26	taxation.
27	27	Be it enacted by the General Assembly of the State of Indiana:
28	28	1 SECTION 1. IC 6-3.6-9-15, AS AMENDED BY P.L.257-2019,
29	29	2 SECTION 73, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
30	30	3 JANUARY 1, 2022 (RETROACTIVE)]: Sec. 15. (a) If the budget
31	31	4 agency determines that the balance in a county trust account exceeds
32	32	5 fifteen percent (15%) ten percent (10%) of the certified distributions
33	33	6 to be made to the county in the determination year, the budget agency
34	34	7 shall make a supplemental distribution to the county from the county's
35	35	8 trust account. The budget agency shall use the trust account balance as
36	36	9 of December 31 of the year that precedes the determination year by two
37	37	10 (2) years (referred to as the "trust account balance year" in this section).
38	38	11 (b) A supplemental distribution described in subsection (a) must be:
39	39	12 (1) made at the same time as the determinations are provided to
40	40	13 the county auditor under subsection (d)(3); and
41	41	14 (2) allocated in the same manner as certified distributions for the
42	42	15 purposes described in this article.
43	43	16 (c) The amount of a supplemental distribution described in
44	44	17 subsection (a) is equal to the amount by which:
45	45	2022 IN 1357—LS 6539/DI 120 2
46	46	1 (1) the balance in the county trust account; minus
47	47	2 (2) the amount of any supplemental or special distribution that has
48	48	3 not yet been accounted for in the last known balance of the
49	49	4 county's trust account;
50	50	5 exceeds fifteen percent (15%) ten percent (10%) of the certified
51	51	6 distributions to be made to the county in the determination year.
52	52	7 (d) For a county that qualifies for a supplemental distribution under
53	53	8 this section in a year, the following apply:
54	54	9 (1) Before February 15, the budget agency shall update the
55	55	10 information described in section 9 of this chapter to include the
56	56	11 excess account balances to be distributed under this section.
57	57	12 (2) Before May 2, the budget agency shall provide the amount of
58	58	13 the supplemental distribution for the county to the department of
59	59	14 local government finance and to the county auditor.
60	60	15 (3) The department of local government finance shall determine
61	61	16 for the county and each taxing unit within the county:
62	62	17 (A) the amount and allocation of the supplemental distribution
63	63	18 attributable to the taxes that were imposed as of December 31
64	64	19 of the trust account balance year, including any specific
65	65	20 distributions for that year; and
66	66	21 (B) the amount of the allocation for each of the purposes set
67	67	22 forth in this article, using the allocation percentages in effect
68	68	23 in the trust account balance year.
69	69	24 The department of local government finance shall provide these
70	70	25 determinations to the county auditor before May 16 of the
71	71	26 determination year.
72	72	27 (4) Before June 1, the county auditor shall distribute to each
73	73	28 taxing unit the amount of the supplemental distribution that is
74	74	29 allocated to the taxing unit under subdivision (3).
75	75	30 For determinations before 2019, the tax rates in effect under and the
76	76	31 allocation methods specified in the former income tax laws shall be
77	77	32 used for the determinations under subdivision (3).
78	78	33 (e) For any part of a supplemental distribution attributable to
79	79	34 property tax credits under a former income tax or IC 6-3.6-5, the
80	80	35 adopting body for the county may allocate the supplemental
81	81	36 distribution to property tax credits for not more than the three (3) years
82	82	37 after the year the supplemental distribution is received.
83	83	38 (f) Any income earned on money held in a trust account established
84	84	39 for a county under this chapter shall be deposited in that trust account.
85	85	40 SECTION 2. An emergency is declared for this act.
86	86	2022 IN 1357—LS 6539/DI 120