Indiana 2023 Regular Session

Indiana House Bill HB1409 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. 1409
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 6-3.6-9-15.
7	7	Synopsis: Local income tax excess balance. Requires the budget
8	8	agency to make a supplemental distribution to a county from the
9	9	county's trust account if the budget agency determines that the balance
10	10	in the county's trust account exceeds 11% (which is a decrease from
11	11	15% under current law) of the certified distributions to be made to the
12	12	county in a determination year. Provides that the amount of the
13	13	supplemental distribution is equal to the amount by which: (1) the
14	14	balance in the county trust account; minus (2) the amount of any
15	15	supplemental or special distribution that has not yet been accounted for
16	16	in the last known balance of the county's trust account; exceeds 11%
17	17	(which is a decrease from 15% under current law) of the certified
18	18	distributions to be made to the county in the determination year.
19	19	Effective: January 1, 2023 (retroactive); January 1, 2024.
20	20	Smaltz
21	21	January 17, 2023, read first time and referred to Committee on Ways and Means.
22	22	2023 IN 1409—LS 7009/DI 134 Introduced
23	23	First Regular Session of the 123rd General Assembly (2023)
24	24	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
25	25	Constitution) is being amended, the text of the existing provision will appear in this style type,
26	26	additions will appear in this style type, and deletions will appear in this style type.
27	27	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
28	28	provision adopted), the text of the new provision will appear in this style type. Also, the
29	29	word NEW will appear in that style type in the introductory clause of each SECTION that adds
30	30	a new provision to the Indiana Code or the Indiana Constitution.
31	31	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
32	32	between statutes enacted by the 2022 Regular Session of the General Assembly.
33	33	HOUSE BILL No. 1409
34	34	A BILL FOR AN ACT to amend the Indiana Code concerning
35	35	taxation.
36	36	Be it enacted by the General Assembly of the State of Indiana:
37	37	1 SECTION 1. IC 6-3.6-9-15, AS AMENDED BY P.L.257-2019,
38	38	2 SECTION 73, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
39	39	3 JANUARY 1, 2024]: Sec. 15. (a) If the budget agency determines that
40	40	4 the balance in a county trust account exceeds fifteen percent (15%)
41	41	5 eleven percent (11%) of the certified distributions to be made to the
42	42	6 county in the determination year, the budget agency shall make a
43	43	7 supplemental distribution to the county from the county's trust account.
44	44	8 The budget agency shall use the trust account balance as of December
45	45	9 31 of the year that precedes the determination year by two (2) years
46	46	10 (referred to as the "trust account balance year" in this section).
47	47	11 (b) A supplemental distribution described in subsection (a) must be:
48	48	12 (1) made at the same time as the determinations are provided to
49	49	13 the county auditor under subsection (d)(3); and
50	50	14 (2) allocated in the same manner as certified distributions for the
51	51	15 purposes described in this article.
52	52	16 (c) The amount of a supplemental distribution described in
53	53	17 subsection (a) is equal to the amount by which:
54	54	2023 IN 1409—LS 7009/DI 134 2
55	55	1 (1) the balance in the county trust account; minus
56	56	2 (2) the amount of any supplemental or special distribution that has
57	57	3 not yet been accounted for in the last known balance of the
58	58	4 county's trust account;
59	59	5 exceeds fifteen percent (15%) eleven percent (11%) of the certified
60	60	6 distributions to be made to the county in the determination year.
61	61	7 (d) For a county that qualifies for a supplemental distribution under
62	62	8 this section in a year, the following apply:
63	63	9 (1) Before February 15, the budget agency shall update the
64	64	10 information described in section 9 of this chapter to include the
65	65	11 excess account balances to be distributed under this section.
66	66	12 (2) Before May 2, the budget agency shall provide the amount of
67	67	13 the supplemental distribution for the county to the department of
68	68	14 local government finance and to the county auditor.
69	69	15 (3) The department of local government finance shall determine
70	70	16 for the county and each taxing unit within the county:
71	71	17 (A) the amount and allocation of the supplemental distribution
72	72	18 attributable to the taxes that were imposed as of December 31
73	73	19 of the trust account balance year, including any specific
74	74	20 distributions for that year; and
75	75	21 (B) the amount of the allocation for each of the purposes set
76	76	22 forth in this article, using the allocation percentages in effect
77	77	23 in the trust account balance year.
78	78	24 The department of local government finance shall provide these
79	79	25 determinations to the county auditor before May 16 of the
80	80	26 determination year.
81	81	27 (4) Before June 1, the county auditor shall distribute to each
82	82	28 taxing unit the amount of the supplemental distribution that is
83	83	29 allocated to the taxing unit under subdivision (3).
84	84	30 For determinations before 2019, the tax rates in effect under and the
85	85	31 allocation methods specified in the former income tax laws shall be
86	86	32 used for the determinations under subdivision (3).
87	87	33 (e) For any part of a supplemental distribution attributable to
88	88	34 property tax credits under a former income tax or IC 6-3.6-5, the
89	89	35 adopting body for the county may allocate the supplemental
90	90	36 distribution to property tax credits for not more than the three (3) years
91	91	37 after the year the supplemental distribution is received.
92	92	38 (f) Any income earned on money held in a trust account established
93	93	39 for a county under this chapter shall be deposited in that trust account.
94	94	40 SECTION 2. [EFFECTIVE JANUARY 1, 2023 (RETROACTIVE)]
95	95	41 (a) IC 6-3.6-9-15, as amended by this act, applies to taxable years
96	96	42 beginning after December 31, 2023.
97	97	2023 IN 1409—LS 7009/DI 134 3
98	98	1 (b) This SECTION expires July 1, 2026.
99	99	2 SECTION 3. An emergency is declared for this act.
100	100	2023 IN 1409—LS 7009/DI 134