Introduced Version
HOUSE BILL No. 1409
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DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-3.6-9-15.
Synopsis: Local income tax excess balance. Requires the budget
agency to make a supplemental distribution to a county from the
county's trust account if the budget agency determines that the balance
in the county's trust account exceeds 11% (which is a decrease from
15% under current law) of the certified distributions to be made to the
county in a determination year. Provides that the amount of the
supplemental distribution is equal to the amount by which: (1) the
balance in the county trust account; minus (2) the amount of any
supplemental or special distribution that has not yet been accounted for
in the last known balance of the county's trust account; exceeds 11%
(which is a decrease from 15% under current law) of the certified
distributions to be made to the county in the determination year.
Effective: January 1, 2023 (retroactive); January 1, 2024.
Smaltz
January 17, 2023, read first time and referred to Committee on Ways and Means.
2023 IN 1409—LS 7009/DI 134 Introduced
First Regular Session of the 123rd General Assembly (2023)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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between statutes enacted by the 2022 Regular Session of the General Assembly.
HOUSE BILL No. 1409
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 6-3.6-9-15, AS AMENDED BY P.L.257-2019,
2 SECTION 73, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JANUARY 1, 2024]: Sec. 15. (a) If the budget agency determines that
4 the balance in a county trust account exceeds fifteen percent (15%)
5 eleven percent (11%) of the certified distributions to be made to the
6 county in the determination year, the budget agency shall make a
7 supplemental distribution to the county from the county's trust account.
8 The budget agency shall use the trust account balance as of December
9 31 of the year that precedes the determination year by two (2) years
10 (referred to as the "trust account balance year" in this section).
11 (b) A supplemental distribution described in subsection (a) must be:
12 (1) made at the same time as the determinations are provided to
13 the county auditor under subsection (d)(3); and
14 (2) allocated in the same manner as certified distributions for the
15 purposes described in this article.
16 (c) The amount of a supplemental distribution described in
17 subsection (a) is equal to the amount by which:
2023 IN 1409—LS 7009/DI 134 2
1 (1) the balance in the county trust account; minus
2 (2) the amount of any supplemental or special distribution that has
3 not yet been accounted for in the last known balance of the
4 county's trust account;
5 exceeds fifteen percent (15%) eleven percent (11%) of the certified
6 distributions to be made to the county in the determination year.
7 (d) For a county that qualifies for a supplemental distribution under
8 this section in a year, the following apply:
9 (1) Before February 15, the budget agency shall update the
10 information described in section 9 of this chapter to include the
11 excess account balances to be distributed under this section.
12 (2) Before May 2, the budget agency shall provide the amount of
13 the supplemental distribution for the county to the department of
14 local government finance and to the county auditor.
15 (3) The department of local government finance shall determine
16 for the county and each taxing unit within the county:
17 (A) the amount and allocation of the supplemental distribution
18 attributable to the taxes that were imposed as of December 31
19 of the trust account balance year, including any specific
20 distributions for that year; and
21 (B) the amount of the allocation for each of the purposes set
22 forth in this article, using the allocation percentages in effect
23 in the trust account balance year.
24 The department of local government finance shall provide these
25 determinations to the county auditor before May 16 of the
26 determination year.
27 (4) Before June 1, the county auditor shall distribute to each
28 taxing unit the amount of the supplemental distribution that is
29 allocated to the taxing unit under subdivision (3).
30 For determinations before 2019, the tax rates in effect under and the
31 allocation methods specified in the former income tax laws shall be
32 used for the determinations under subdivision (3).
33 (e) For any part of a supplemental distribution attributable to
34 property tax credits under a former income tax or IC 6-3.6-5, the
35 adopting body for the county may allocate the supplemental
36 distribution to property tax credits for not more than the three (3) years
37 after the year the supplemental distribution is received.
38 (f) Any income earned on money held in a trust account established
39 for a county under this chapter shall be deposited in that trust account.
40 SECTION 2. [EFFECTIVE JANUARY 1, 2023 (RETROACTIVE)]
41 (a) IC 6-3.6-9-15, as amended by this act, applies to taxable years
42 beginning after December 31, 2023.
2023 IN 1409—LS 7009/DI 134 3
1 (b) This SECTION expires July 1, 2026.
2 SECTION 3. An emergency is declared for this act.
2023 IN 1409—LS 7009/DI 134