Introduced Version
HOUSE BILL No. 1121
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-3.6.
Synopsis: Local income taxes. Extends the expiration of provisions
concerning a county with a single voting bloc and the allocation of
votes for a local income tax council. Specifies the amount of revenue
from a local income tax rate imposed for correctional facilities and
rehabilitation facilities in a county that may be used for operating
expenses of those facilities.
Effective: Upon passage; July 1, 2023 (retroactive).
Thompson
January 8, 2024, read first time and referred to Committee on Ways and Means.
2024 IN 1121—LS 6566/DI 125 Introduced
Second Regular Session of the 123rd General Assembly (2024)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2023 Regular Session of the General Assembly.
HOUSE BILL No. 1121
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 6-3.6-2-7.4, AS AMENDED BY P.L.159-2021,
2 SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 UPON PASSAGE]: Sec. 7.4. "County with a single voting bloc" means
4 a county that has a local income tax council in which one (1) city that
5 is a member of the local income tax council or one (1) town that is a
6 member of the local income tax council is allocated more than fifty
7 percent (50%) of the total one hundred (100) votes allocated under
8 IC 6-3.6-3-6(d). This section expires May 31, 2024. 2025.
9 SECTION 2. IC 6-3.6-3-5, AS AMENDED BY P.L.159-2021,
10 SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
11 UPON PASSAGE]: Sec. 5. (a) The auditor of a county shall record all
12 votes taken on ordinances presented for a vote under this article and
13 not more than ten (10) days after the vote, send a certified copy of the
14 results to:
15 (1) the commissioner of the department of state revenue; and
16 (2) the commissioner of the department of local government
17 finance;
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1 in an electronic format approved by the commissioner of the
2 department of local government finance.
3 (b) Except as provided in subsection (c), this subsection applies only
4 to a county that has a local income tax council. The county auditor may
5 cease sending certified copies after the county auditor sends a certified
6 copy of results showing that members of the local income tax council
7 have cast a majority of the votes on the local income tax council for or
8 against the proposed ordinance.
9 (c) This subsection applies only to a county with a single voting bloc
10 that proposes to increase (but not decrease) a tax rate in the county. The
11 county auditor may cease sending certified copies of the votes on the
12 local income tax council voting as a whole under section 9.5 of this
13 chapter after the county auditor sends a certified copy of results
14 showing that the individuals who sit on the fiscal bodies of the county,
15 cities, and towns that are members of the local income tax council have
16 cast a majority of the votes on the local income tax council voting as a
17 whole under section 9.5 of this chapter for or against the proposed
18 ordinance. This subsection expires May 31, 2024. 2025.
19 SECTION 3. IC 6-3.6-3-6, AS AMENDED BY P.L.32-2021,
20 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
21 UPON PASSAGE]: Sec. 6. (a) This section applies to a county in
22 which the county adopting body is a local income tax council.
23 (b) In the case of a city or town that lies within more than one (1)
24 county, the county auditor of each county shall base the allocations
25 required by subsections (d) and (e) on the population of that part of the
26 city or town that lies within the county for which the allocations are
27 being made.
28 (c) Each local income tax council has a total of one hundred (100)
29 votes.
30 (d) Each county, city, or town that is a member of a local income tax
31 council is allocated a percentage of the total one hundred (100) votes
32 that may be cast. The percentage that a city or town is allocated for a
33 year equals the same percentage that the population of the city or town
34 bears to the population of the county. The percentage that the county
35 is allocated for a year equals the same percentage that the population
36 of all areas in the county not located in a city or town bears to the
37 population of the county.
38 (e) This subsection applies only to a county with a single voting
39 bloc. Each individual who sits on the fiscal body of a county, city, or
40 town that is a member of the local income tax council is allocated for
41 a year the number of votes equal to the total number of votes allocated
42 to the particular county, city, or town under subsection (d) divided by
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1 the number of members on the fiscal body of the county, city, or town.
2 This subsection expires May 31, 2024. 2025.
3 (f) On or before January 1 of each year, the county auditor shall
4 certify to each member of the local income tax council the number of
5 votes, rounded to the nearest one hundredth (0.01), each member has
6 for that year.
7 (g) This subsection applies only to a county with a single voting
8 bloc. On or before January 1 of each year, in addition to the
9 certification to each member of the local income tax council under
10 subsection (f), the county auditor shall certify to each individual who
11 sits on the fiscal body of each county, city, or town that is a member of
12 the local income tax council the number of votes, rounded to the
13 nearest one hundredth (0.01), each individual has under subsection (e)
14 for that year. This subsection expires May 31, 2024. 2025.
15 SECTION 4. IC 6-3.6-3-8, AS AMENDED BY P.L.159-2021,
16 SECTION 23, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
17 UPON PASSAGE]: Sec. 8. (a) This section applies to a county in
18 which the county adopting body is a local income tax council.
19 (b) Except as provided in subsection (e), any member of a local
20 income tax council may present an ordinance for passage. To do so, the
21 member must adopt a resolution to propose the ordinance to the local
22 income tax council and distribute a copy of the proposed ordinance to
23 the county auditor. The county auditor shall treat any proposed
24 ordinance distributed to the auditor under this section as a casting of all
25 that member's votes in favor of the proposed ordinance.
26 (c) Except as provided in subsection (f), the county auditor shall
27 deliver copies of a proposed ordinance the auditor receives to all
28 members of the local income tax council within ten (10) days after
29 receipt. Subject to subsection (d), once a member receives a proposed
30 ordinance from the county auditor, the member shall vote on it within
31 thirty (30) days after receipt.
32 (d) Except as provided in subsection (h), if, before the elapse of
33 thirty (30) days after receipt of a proposed ordinance, the county
34 auditor notifies the member that the members of the local income tax
35 council have cast a majority of the votes on the local income tax
36 council for or against the proposed ordinance the member need not
37 vote on the proposed ordinance.
38 (e) This subsection applies only to a county with a single voting bloc
39 that proposes to increase (but not decrease) a tax rate in the county. The
40 fiscal body of any county, city, or town that is a member of a local
41 income tax council may adopt a resolution to propose an ordinance to
42 increase a tax rate in the county to be voted on by the local income tax
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1 council as a whole as required under section 9.5 of this chapter and
2 distribute a copy of the proposed ordinance to the county auditor. The
3 county auditor shall treat the vote tally on the resolution adopted under
4 this subsection for each individual who is a member of the fiscal body
5 of the county, city, or town as the voting record for that individual
6 either for or against the ordinance being proposed for consideration by
7 the local income tax council as a whole under section 9.5 of this
8 chapter. This subsection expires May 31, 2024. 2025.
9 (f) This subsection applies only to a county with a single voting bloc
10 that proposes to increase (but not decrease) a tax rate in the county. The
11 county auditor shall deliver copies of a proposed ordinance the auditor
12 receives under subsection (e) to the fiscal officers of all members of the
13 local income tax council (other than the member proposing the
14 ordinance under subsection (e)) within ten (10) days after receipt.
15 Subject to subsection (h), once a member receives a proposed
16 ordinance from the county auditor, the member shall vote on it within
17 thirty (30) days after receipt. This subsection expires May 31, 2024.
18 2025.
19 (g) This subsection applies only to a county with a single voting
20 bloc that proposes to increase (but not decrease) a tax rate in the
21 county. The fiscal body of each county, city, or town voting on a
22 resolution to propose an ordinance under subsection (e), or voting on
23 a proposed ordinance being considered by the local income tax council
24 as a whole under section 9.5 of this chapter, must take a roll call vote
25 on the resolution or the proposed ordinance. If an individual who sits
26 on the fiscal body is absent from the meeting in which a vote is taken
27 or abstains from voting on the resolution or proposed ordinance, the
28 fiscal officer of the county, city, or town shall nevertheless consider
29 that individual's vote as a "no" vote against the resolution or the
30 proposed ordinance being considered, whichever is applicable, for
31 purposes of the vote tally under this section and shall note on the vote
32 tally that the individual's "no" vote is due to absence or abstention. The
33 fiscal body of each county, city, or town shall certify the roll call vote
34 on a resolution or a proposed ordinance, either for or against, to the
35 county auditor as set forth under this chapter. This subsection expires
36 May 31, 2024. 2025.
37 (h) This subsection applies only to a county with a single voting
38 bloc that proposes to increase (but not decrease) a tax rate in the
39 county. If, before the elapse of thirty (30) days after receipt of a
40 proposed ordinance under subsection (e), the county auditor notifies
41 the member that the individuals who sit on the fiscal bodies of the
42 county, cities, and towns that are members of the local income tax
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1 council have cast a majority of the votes on the local income tax
2 council for or against a proposed ordinance voting as a whole under
3 section 9.5 of this chapter, the member need not vote on the proposed
4 ordinance under subsection (e). This subsection expires May 31, 2024.
5 2025.
6 SECTION 5. IC 6-3.6-3-9.5, AS AMENDED BY P.L.159-2021,
7 SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
8 UPON PASSAGE]: Sec. 9.5. (a) This section applies to a county:
9 (1) in which the county adopting body is a local income tax
10 council;
11 (2) that is a county with a single voting bloc; and
12 (3) that proposes to increase a tax rate in the county.
13 However, the provisions under section 9 of this chapter shall apply to
14 a county described in subdivisions (1) and (2) that proposes to decrease
15 a tax rate in the county.
16 (b) A local income tax council described in subsection (a) must vote
17 as a whole to exercise its authority to increase a tax rate under this
18 article.
19 (c) A resolution passed by the fiscal body of a county, city, or town
20 that is a member of the local income tax council exercises the vote of
21 each individual who sits on the fiscal body of the county, city, or town
22 on the proposed ordinance, and the individual's vote may not be
23 changed during the year.
24 (d) This section expires May 31, 2024. 2025.
25 SECTION 6. IC 6-3.6-6-2.7, AS AMENDED BY P.L.236-2023,
26 SECTION 79, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
27 JULY 1, 2023 (RETROACTIVE)]: Sec. 2.7. (a) A county fiscal body
28 may adopt an ordinance to impose a tax rate for correctional facilities
29 and rehabilitation facilities in the county. The tax rate must be in
30 increments of:
31 (1) in the case of a county with bonds or lease agreements
32 outstanding on July 1, 2023, for which a pledge of tax revenue
33 from revenue received under a tax rate imposed under this section
34 is made, one-hundredth of one percent (0.01%) and may not
35 exceed three-tenths of one percent (0.3%); and
36 (2) in the case of a county with no bonds or lease agreements
37 outstanding on July 1, 2023, for which a pledge of tax revenue
38 from revenue received under a tax rate imposed under this section
39 is made, one-hundredth of one percent (0.01%) and may not
40 exceed two-tenths of one percent (0.2%).
41 Not more than an amount equal to the amount of revenue that is
42 attributable to two-tenths of one percent (0.2%) of a tax rate imposed
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1 under this section may be used for operating expenses for correctional
2 facilities and rehabilitation facilities in the county.
3 (b) The tax rate imposed under this section may not be in effect for
4 more than:
5 (1) twenty-two (22) years, in the case of a tax rate imposed in an
6 ordinance adopted before January 1, 2019; or
7 (2) twenty-five (25) years, in the case of a tax rate imposed in an
8 ordinance adopted on or after January 1, 2019.
9 (c) The revenue generated by a tax rate imposed under this section
10 must be distributed directly to the county before the remainder of the
11 expenditure rate revenue is distributed. The revenue shall be
12 maintained in a separate dedicated county fund and used by the county
13 only for paying for correctional facilities and rehabilitation facilities in
14 the county.
15 (d) If a county fiscal body imposes a tax rate:
16 (1) under subsection (a)(1) or (a)(2) in an increment that does
17 not exceed two-tenths of one percent (0.2%), one hundred
18 percent (100%) of the revenue collected from the total tax
19 rate; or
20 (2) under subsection (a)(1) in an increment that exceeds
21 two-tenths of one percent (0.2%):
22 (A) one hundred percent (100%) of the revenue collected
23 from that portion of the total tax rate that does not exceed
24 an increment of two-tenths of one percent (0.2%); and
25 (B) no revenue collected from that portion of the total tax
26 rate that exceeds an increment of two-tenths of one percent
27 (0.2%);
28 may be used for operating expenses for correctional facilities and
29 rehabilitation facilities in the county.
30 SECTION 7. An emergency is declared for this act.
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