*EH1121.2*
Reprinted
March 1, 2024
ENGROSSED
HOUSE BILL No. 1121
_____
DIGEST OF HB 1121 (Updated February 29, 2024 3:04 pm - DI 120)
Citations Affected: IC 6-3.6; IC 6-5.5; IC 6-6; IC 6-9; noncode.
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
(Continued next page)
Effective: Upon passage; July 1, 2023 (retroactive); July 1, 2024;
January 1, 2025.
Thompson, Clere, Cherry
(SENATE SPONSORS — HOLDMAN, RANDOLPH LONNIE M)
January 8, 2024, read first time and referred to Committee on Ways and Means.
January 25, 2024, amended, reported — Do Pass.
January 29, 2024, read second time, amended, ordered engrossed.
January 30, 2024, engrossed. Read third time, passed. Yeas 67, nays 29.
SENATE ACTION
February 7, 2024, read first time and referred to Committee on Tax and Fiscal Policy.
February 27, 2024, amended, reported favorably — Do Pass.
February 29, 2024, read second time, amended, ordered engrossed.
EH 1121—LS 6566/DI 125 Digest Continued
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. Allows a county fiscal body to adopt a
local income tax rate for an acute care hospital located in the county to
be used only for the operating expenses of the acute care hospital.
Provides that, for the purpose of distributing the local income tax (LIT),
if two or more school corporations or civil taxing units merge or
consolidate to form a single school corporation or civil taxing unit, the
school corporation or civil taxing unit is entitled to the combined pro
rata distribution of the LIT revenue allocated to each applicable school
corporation or civil taxing unit in existence on January 1 of the
immediately preceding calendar year prior to the merger or
consolidation. Provides that the department of local government
finance shall make certain adjustments pertaining to the distribution of
LIT for Floyd County in 2025, which provide that the Highlander Fire
Protection District (district) shall receive an amount equal to the
combined distribution that would have been distributed to the
Greenville Fire Protection District (FPD) and the Lafayette Fire
Protection District (FPD) in 2024, but for their elimination resulting
from the merger to establish the district. Requires corresponding
adjustments in 2025 to reduce the distribution for each applicable civil
taxing unit and school corporation in Floyd County, excluding the
district, by an amount that equals the proportionate share of the amount
of LIT received in 2024 of the combined distribution that would have
been distributed to the Greenville FPD and the Lafayette FPD in 2024,
but for their elimination. Provides that funds accumulated from a Perry
County special purpose tax rate to construct or improve the county jail
after the redemption of bonds issued or final payment of lease rentals
due under a lease shall be transferred to a county capital project fund
to be used to finance capital projects within Perry County. (Current law
specifies that such remaining funds are to be transferred to the county
jail operations fund to be used for financing the maintenance and
operations of the Perry County detention center.) Allows Grant County,
under specified circumstances, to adopt an ordinance to impose a
special purpose local income tax rate to fund and finance the
construction of a county jail. Provides, for purposes of calculating
distributions of the financial institutions tax to local taxing units, how
to calculate distributions for a taxing unit that did not receive
distributions in 2012 because the unit was subsequently established
from the merger or consolidation of two or more taxing units that
received distributions from the financial institutions tax fund in 2012.
Provides, for purposes of calculating qualified distributions of the
commercial motor vehicle excise tax to local taxing units, how to
calculate base revenue distributions for a taxing unit that did not
receive a base revenue distribution in 2001 because the taxing unit was
subsequently established from the merger or consolidation of two or
more taxing units that received base revenue distributions in 2001.
Provides that, for purposes of determining the apportionment or
distribution of the motor vehicle excise tax, that the county auditor may
make adjustments to reflect the merger or consolidation of two or more
taxing units. Authorizes Knox County to impose its innkeeper's tax at
a rate of 8% (instead of 6% under current law). Provides that, if the tax
rate is increased to more than 6%, the portion of the tax rate that
exceeds 6% expires on December 31, 2045. Authorizes the city of
Hammond to impose a food and beverage tax. Authorizes the town of
Cicero to impose a food and beverage tax.
EH 1121—LS 6566/DI 125EH 1121—LS 6566/DI 125 Reprinted
March 1, 2024
Second Regular Session of the 123rd General Assembly (2024)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
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.
ENGROSSED
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 6-3.6-3-1, AS AMENDED BY P.L.184-2018,
10 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
11 JULY 1, 2024]: Sec. 1. (a) The following is the adopting body for a
12 county:
13 (1) The local income tax council in a county in which the county
14 income tax council adopted either:
15 (A) a county option income tax under IC 6-3.5-6 (repealed)
16 that was in effect on January 1, 2015; or
17 (B) a county economic development income tax for the county
EH 1121—LS 6566/DI 125 2
1 under IC 6-3.5-7 (repealed) that was in effect on January 1,
2 2015.
3 (2) The county fiscal body in any other county.
4 (3) The county fiscal body for purposes of adopting a rate
5 dedicated to paying for a PSAP in the county as permitted by
6 IC 6-3.6-6-2.5.
7 (4) The county fiscal body for purposes of adopting a rate
8 dedicated to paying for acute care hospitals in the county as
9 permitted by IC 6-3.6-6-2.6.
10 (4) (5) The county fiscal body for purposes of adopting a rate
11 dedicated to paying for correctional facilities and rehabilitation
12 facilities in the county as permitted by IC 6-3.6-6-2.7.
13 (b) A local income tax council is established for each county. The
14 membership of each county's local income tax council consists of the
15 fiscal body of the county and the fiscal body of each city or town that
16 lies either partially or entirely within that county.
17 SECTION 3. IC 6-3.6-3-5, AS AMENDED BY P.L.159-2021,
18 SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
19 UPON PASSAGE]: Sec. 5. (a) The auditor of a county shall record all
20 votes taken on ordinances presented for a vote under this article and
21 not more than ten (10) days after the vote, send a certified copy of the
22 results to:
23 (1) the commissioner of the department of state revenue; and
24 (2) the commissioner of the department of local government
25 finance;
26 in an electronic format approved by the commissioner of the
27 department of local government finance.
28 (b) Except as provided in subsection (c), this subsection applies only
29 to a county that has a local income tax council. The county auditor may
30 cease sending certified copies after the county auditor sends a certified
31 copy of results showing that members of the local income tax council
32 have cast a majority of the votes on the local income tax council for or
33 against the proposed ordinance.
34 (c) This subsection applies only to a county with a single voting bloc
35 that proposes to increase (but not decrease) a tax rate in the county. The
36 county auditor may cease sending certified copies of the votes on the
37 local income tax council voting as a whole under section 9.5 of this
38 chapter after the county auditor sends a certified copy of results
39 showing that the individuals who sit on the fiscal bodies of the county,
40 cities, and towns that are members of the local income tax council have
41 cast a majority of the votes on the local income tax council voting as a
42 whole under section 9.5 of this chapter for or against the proposed
EH 1121—LS 6566/DI 125 3
1 ordinance. This subsection expires May 31, 2024. 2025.
2 SECTION 4. IC 6-3.6-3-6, AS AMENDED BY P.L.32-2021,
3 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4 UPON PASSAGE]: Sec. 6. (a) This section applies to a county in
5 which the county adopting body is a local income tax council.
6 (b) In the case of a city or town that lies within more than one (1)
7 county, the county auditor of each county shall base the allocations
8 required by subsections (d) and (e) on the population of that part of the
9 city or town that lies within the county for which the allocations are
10 being made.
11 (c) Each local income tax council has a total of one hundred (100)
12 votes.
13 (d) Each county, city, or town that is a member of a local income tax
14 council is allocated a percentage of the total one hundred (100) votes
15 that may be cast. The percentage that a city or town is allocated for a
16 year equals the same percentage that the population of the city or town
17 bears to the population of the county. The percentage that the county
18 is allocated for a year equals the same percentage that the population
19 of all areas in the county not located in a city or town bears to the
20 population of the county.
21 (e) This subsection applies only to a county with a single voting
22 bloc. Each individual who sits on the fiscal body of a county, city, or
23 town that is a member of the local income tax council is allocated for
24 a year the number of votes equal to the total number of votes allocated
25 to the particular county, city, or town under subsection (d) divided by
26 the number of members on the fiscal body of the county, city, or town.
27 This subsection expires May 31, 2024. 2025.
28 (f) On or before January 1 of each year, the county auditor shall
29 certify to each member of the local income tax council the number of
30 votes, rounded to the nearest one hundredth (0.01), each member has
31 for that year.
32 (g) This subsection applies only to a county with a single voting
33 bloc. On or before January 1 of each year, in addition to the
34 certification to each member of the local income tax council under
35 subsection (f), the county auditor shall certify to each individual who
36 sits on the fiscal body of each county, city, or town that is a member of
37 the local income tax council the number of votes, rounded to the
38 nearest one hundredth (0.01), each individual has under subsection (e)
39 for that year. This subsection expires May 31, 2024. 2025.
40 SECTION 5. IC 6-3.6-3-8, AS AMENDED BY P.L.159-2021,
41 SECTION 23, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
42 UPON PASSAGE]: Sec. 8. (a) This section applies to a county in
EH 1121—LS 6566/DI 125 4
1 which the county adopting body is a local income tax council.
2 (b) Except as provided in subsection (e), any member of a local
3 income tax council may present an ordinance for passage. To do so, the
4 member must adopt a resolution to propose the ordinance to the local
5 income tax council and distribute a copy of the proposed ordinance to
6 the county auditor. The county auditor shall treat any proposed
7 ordinance distributed to the auditor under this section as a casting of all
8 that member's votes in favor of the proposed ordinance.
9 (c) Except as provided in subsection (f), the county auditor shall
10 deliver copies of a proposed ordinance the auditor receives to all
11 members of the local income tax council within ten (10) days after
12 receipt. Subject to subsection (d), once a member receives a proposed
13 ordinance from the county auditor, the member shall vote on it within
14 thirty (30) days after receipt.
15 (d) Except as provided in subsection (h), if, before the elapse of
16 thirty (30) days after receipt of a proposed ordinance, the county
17 auditor notifies the member that the members of the local income tax
18 council have cast a majority of the votes on the local income tax
19 council for or against the proposed ordinance the member need not
20 vote on the proposed ordinance.
21 (e) This subsection applies only to a county with a single voting bloc
22 that proposes to increase (but not decrease) a tax rate in the county. The
23 fiscal body of any county, city, or town that is a member of a local
24 income tax council may adopt a resolution to propose an ordinance to
25 increase a tax rate in the county to be voted on by the local income tax
26 council as a whole as required under section 9.5 of this chapter and
27 distribute a copy of the proposed ordinance to the county auditor. The
28 county auditor shall treat the vote tally on the resolution adopted under
29 this subsection for each individual who is a member of the fiscal body
30 of the county, city, or town as the voting record for that individual
31 either for or against the ordinance being proposed for consideration by
32 the local income tax council as a whole under section 9.5 of this
33 chapter. This subsection expires May 31, 2024. 2025.
34 (f) This subsection applies only to a county with a single voting bloc
35 that proposes to increase (but not decrease) a tax rate in the county. The
36 county auditor shall deliver copies of a proposed ordinance the auditor
37 receives under subsection (e) to the fiscal officers of all members of the
38 local income tax council (other than the member proposing the
39 ordinance under subsection (e)) within ten (10) days after receipt.
40 Subject to subsection (h), once a member receives a proposed
41 ordinance from the county auditor, the member shall vote on it within
42 thirty (30) days after receipt. This subsection expires May 31, 2024.
EH 1121—LS 6566/DI 125 5
1 2025.
2 (g) This subsection applies only to a county with a single voting
3 bloc that proposes to increase (but not decrease) a tax rate in the
4 county. The fiscal body of each county, city, or town voting on a
5 resolution to propose an ordinance under subsection (e), or voting on
6 a proposed ordinance being considered by the local income tax council
7 as a whole under section 9.5 of this chapter, must take a roll call vote
8 on the resolution or the proposed ordinance. If an individual who sits
9 on the fiscal body is absent from the meeting in which a vote is taken
10 or abstains from voting on the resolution or proposed ordinance, the
11 fiscal officer of the county, city, or town shall nevertheless consider
12 that individual's vote as a "no" vote against the resolution or the
13 proposed ordinance being considered, whichever is applicable, for
14 purposes of the vote tally under this section and shall note on the vote
15 tally that the individual's "no" vote is due to absence or abstention. The
16 fiscal body of each county, city, or town shall certify the roll call vote
17 on a resolution or a proposed ordinance, either for or against, to the
18 county auditor as set forth under this chapter. This subsection expires
19 May 31, 2024. 2025.
20 (h) This subsection applies only to a county with a single voting
21 bloc that proposes to increase (but not decrease) a tax rate in the
22 county. If, before the elapse of thirty (30) days after receipt of a
23 proposed ordinance under subsection (e), the county auditor notifies
24 the member that the individuals who sit on the fiscal bodies of the
25 county, cities, and towns that are members of the local income tax
26 council have cast a majority of the votes on the local income tax
27 council for or against a proposed ordinance voting as a whole under
28 section 9.5 of this chapter, the member need not vote on the proposed
29 ordinance under subsection (e). This subsection expires May 31, 2024.
30 2025.
31 SECTION 6. IC 6-3.6-3-9.5, AS AMENDED BY P.L.159-2021,
32 SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
33 UPON PASSAGE]: Sec. 9.5. (a) This section applies to a county:
34 (1) in which the county adopting body is a local income tax
35 council;
36 (2) that is a county with a single voting bloc; and
37 (3) that proposes to increase a tax rate in the county.
38 However, the provisions under section 9 of this chapter shall apply to
39 a county described in subdivisions (1) and (2) that proposes to decrease
40 a tax rate in the county.
41 (b) A local income tax council described in subsection (a) must vote
42 as a whole to exercise its authority to increase a tax rate under this
EH 1121—LS 6566/DI 125 6
1 article.
2 (c) A resolution passed by the fiscal body of a county, city, or town
3 that is a member of the local income tax council exercises the vote of
4 each individual who sits on the fiscal body of the county, city, or town
5 on the proposed ordinance, and the individual's vote may not be
6 changed during the year.
7 (d) This section expires May 31, 2024. 2025.
8 SECTION 7. IC 6-3.6-6-2.6 IS ADDED TO THE INDIANA CODE
9 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
10 1, 2024]: Sec. 2.6. (a) As used in this section, "acute care hospital"
11 means an acute care hospital that is:
12 (1) established and operated under IC 16-22-2, IC 16-22-8, or
13 IC 16-23; and
14 (2) licensed under IC 16-21.
15 (b) A county fiscal body may adopt an ordinance to impose a tax
16 rate for acute care hospitals located in the county. The tax rate
17 must be in increments of one-hundredth of one percent (0.01%)
18 and may not exceed one-tenth of one percent (0.1%).
19 (c) The revenue generated by a tax rate imposed under this
20 section must be distributed directly to the county before the
21 remainder of the expenditure rate revenue is distributed. The
22 revenue shall be maintained in a separate dedicated county fund
23 and used only for the operating expenses of the acute care hospital
24 located in the county.
25 SECTION 8. 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
EH 1121—LS 6566/DI 125 7
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 9. IC 6-3.6-6-3, AS AMENDED BY P.L.95-2022,
31 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
32 JULY 1, 2024]: Sec. 3. (a) Revenue raised from a tax imposed under
33 this chapter shall be treated as follows:
34 (1) To make the following distributions:
35 (A) If an ordinance described in section 2.5 of this chapter is
36 in effect in a county, to make a distribution to the county equal
37 to the amount of revenue generated by the rate imposed under
38 section 2.5 of this chapter.
39 (B) If an ordinance described in section 2.6 of this chapter
40 is in effect in a county, to make a distribution to the county
41 equal to the amount of revenue generated by the rate
42 imposed under section 2.6 of this chapter.
EH 1121—LS 6566/DI 125 8
1 (B) (C) If an ordinance described in section 2.7 of this chapter
2 is in effect in a county, to make a distribution to the county
3 equal to the amount of revenue generated by the rate imposed
4 under section 2.7 of this chapter.
5 (C) (D) If an ordinance described in section 2.8 of this chapter
6 is in effect in a county, to make a distribution to the county
7 equal to the amount of revenue generated by the rate imposed
8 under section 2.8 of this chapter.
9 (2) After making the distributions described in subdivision (1), if
10 any, to make distributions to school corporations and civil taxing
11 units in counties that formerly imposed a tax under IC 6-3.5-1.1
12 (repealed). The revenue categorized from the next twenty-five
13 hundredths percent (0.25%) of the rate for a former tax adopted
14 under IC 6-3.5-1.1 (repealed) shall be allocated to school
15 corporations and civil taxing units. The amount of the allocation
16 to a school corporation or civil taxing unit shall be determined
17 using the allocation amounts for civil taxing units and school
18 corporations in the county.
19 (3) After making the distributions described in subdivisions (1)
20 and (2), the remaining revenue shall be treated as additional
21 revenue (referred to as "additional revenue" in this chapter).
22 Additional revenue may not be considered by the department of
23 local government finance in determining:
24 (A) any taxing unit's maximum permissible property tax levy
25 limit under IC 6-1.1-18.5; or
26 (B) the approved property tax rate for any fund.
27 (b) In the case of a civil taxing unit that has pledged the tax from
28 additional revenue for the payment of bonds, leases, or other
29 obligations as reported by the civil taxing unit under IC 5-1-18, the
30 adopting body may not, under section 4 of this chapter, reduce the
31 proportional allocation of the additional revenue that was allocated in
32 the preceding year if the reduction for that year would result in an
33 amount less than the amount necessary for the payment of bonds,
34 leases, or other obligations payable or required to be deposited in a
35 sinking fund or other reserve in that year for the bonds, leases, or other
36 obligations for which the tax from additional revenue has been pledged.
37 To inform an adopting body with regard to allocations that affect the
38 payment of bonds, leases, or other obligations, a taxing unit may
39 provide the adopting body with information regarding any outstanding
40 bonds, leases, or other obligations that are secured by additional
41 revenue. The information must be provided before the date of the
42 public hearing at which the adopting body may change the allocation
EH 1121—LS 6566/DI 125 9
1 of additional revenue under section 4 of this chapter.
2 SECTION 10. IC 6-3.6-6-21.3 IS ADDED TO THE INDIANA
3 CODE AS A NEW SECTION TO READ AS FOLLOWS
4 [EFFECTIVE JULY 1, 2024]: Sec. 21.3. (a) This section:
5 (1) does not apply to:
6 (A) distributions made under this chapter to a civil taxing
7 unit for fire protection services within a fire protection
8 territory established under IC 36-8-19; or
9 (B) distributions of revenue under section 9 of this chapter;
10 and
11 (2) applies only to the following:
12 (A) Any allocation or distribution of revenue under section
13 3(a)(2) of this chapter that is made on the basis of property
14 tax levies in counties that formerly imposed a tax under
15 IC 6-3.5-1.1 (before its repeal on January 1, 2017).
16 (B) Any allocation or distribution of revenue under section
17 3(a)(3) of this chapter that is made on the basis of property
18 tax levies in counties that formerly imposed a tax under
19 IC 6-3.5-6 (before its repeal on January 1, 2017).
20 (b) Subject to subsection (a), if two (2) or more:
21 (1) school corporations; or
22 (2) civil taxing units;
23 of an adopting county merge or consolidate to form a single school
24 corporation or civil taxing unit, the school corporation or civil
25 taxing unit that is in existence on January 1 of the current year is
26 entitled to the combined pro rata distribution of the revenue under
27 section 3(a)(2) or 3(a)(3) of this chapter (as appropriate) allocated
28 to each applicable school corporation or civil taxing unit in
29 existence on January 1 of the immediately preceding calendar year
30 prior to the merger or consolidation.
31 (c) The department of local government finance shall make
32 adjustments to civil taxing units in accordance with
33 IC 6-1.1-18.5-7.
34 SECTION 11. IC 6-3.6-7-17, AS AMENDED BY P.L.38-2021,
35 SECTION 46, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
36 JULY 1, 2024]: Sec. 17. (a) This section applies only to Perry County.
37 (b) Perry County possesses unique governmental and economic
38 development challenges due to:
39 (1) underemployment in relation to similarly situated counties and
40 the loss of a major manufacturing business; and
41 (2) overcrowding of the county jail, the costs associated with
42 housing the county's inmates outside the county, and the potential
EH 1121—LS 6566/DI 125 10
1 unavailability of additional housing for inmates outside the
2 county.
3 The use of a tax under this section is necessary for the county to
4 provide adequate jail capacity in the county and to maintain low
5 property tax rates essential to economic development. The use of a tax
6 under this section for the purposes described in this section promotes
7 these purposes.
8 (c) The county fiscal body may impose a tax on the adjusted gross
9 income of local taxpayers at a tax rate that does not exceed the lesser
10 of the following:
11 (1) Five-tenths percent (0.5%).
12 (2) The rate necessary to carry out the purposes described in this
13 section.
14 (d) Revenue from a tax imposed under this section may be used only
15 for the following purposes:
16 (1) To finance, construct, acquire, improve, renovate, remodel, or
17 equip the county jail and related buildings and parking facilities,
18 including costs related to the demolition of existing buildings, the
19 acquisition of land, and any other reasonably related costs.
20 (2) To repay bonds issued or leases entered into for constructing,
21 acquiring, improving, renovating, remodeling, and equipping the
22 county jail and related buildings and parking facilities, including
23 costs related to the demolition of existing buildings, the
24 acquisition of land, and any other reasonably related costs.
25 (e) The tax imposed under this section may be imposed only until
26 the last of the following dates:
27 (1) The date on which the purposes described in subsection (d)(1)
28 are completed.
29 (2) The date on which the last of any bonds issued (including any
30 refunding bonds) or leases described in subsection (d)(2) are fully
31 paid.
32 The term of the bonds issued (including any refunding bonds) or a
33 lease entered into under subsection (d)(2) may not exceed twenty-five
34 (25) years.
35 (f) Funds accumulated from a tax under this section after:
36 (1) the redemption of the bonds issued; or
37 (2) the final payment of lease rentals due under a lease entered
38 into under this section;
39 shall be transferred to the county jail operations fund to be used for
40 financing the maintenance and operations of the Perry County
41 detention center. a county capital project fund to be used to finance
42 capital projects within Perry County.
EH 1121—LS 6566/DI 125 11
1 SECTION 12. IC 6-3.6-7-28 IS ADDED TO THE INDIANA CODE
2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
3 UPON PASSAGE]: Sec. 28. (a) This section applies to Grant County
4 and only if the county council repeals provisions of its local income
5 tax ordinance providing that under IC 6-3.6-10-2(7) one-hundredth
6 of one percent (0.01%) of the county's special purpose rate revenue
7 is used to fund the Grant County Economic Growth Council, Inc.
8 (b) The county council may, by ordinance, determine that
9 additional local income tax revenue is needed in the county to do
10 the following:
11 (1) Finance, construct, acquire, improve, renovate, and equip
12 the county jail, including costs related to the demolition of
13 existing buildings, the acquisition of land, and any other
14 reasonably related costs.
15 (2) Repay bonds issued or leases entered into for the purposes
16 described in subdivision (1)
17 (c) If the county council makes the determination set forth in
18 subsection (b), the county council may impose a tax on the adjusted
19 gross income of local taxpayers at a tax rate that does not exceed
20 the lesser of the following:
21 (1) Five-tenths percent (0.5%).
22 (2) The rate necessary to carry out the purposes described in
23 this section.
24 The tax rate may not be greater than the rate necessary to pay for
25 the purposes described in subsection (b).
26 (d) The tax rate used to pay for the purposes described in
27 subsection (b)(1) and (b)(2) may be imposed only until the latest of
28 the following dates:
29 (1) The date on which the financing, construction, acquisition,
30 improvement, renovation, and equipping of the facilities as
31 described in subsection (b) are completed.
32 (2) The date on which the last of any bonds issued (including
33 refunding bonds) or leases entered into to finance the
34 construction, acquisition, improvement, renovation, and
35 equipping of the facilities described in subsection (b) are fully
36 paid.
37 (3) The date on which an ordinance adopted under subsection
38 (c) is rescinded.
39 (e) The tax rate under this section may be imposed beginning in
40 the year following the year the ordinance is adopted and until the
41 date on which the ordinance adopted under this section is
42 rescinded.
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1 (f) The term of a bond issued (including any refunding bond) or
2 a lease entered into under subsection (b) may not exceed
3 twenty-five (25) years.
4 (g) The county treasurer shall establish a county jail revenue
5 fund to be used only for the purposes described in this section.
6 Local income tax revenues derived from the tax rate imposed
7 under this section shall be deposited in the county jail revenue
8 fund.
9 (h) Local income tax revenues derived from the tax rate
10 imposed under this section:
11 (1) may be used only for the purposes described in this
12 section;
13 (2) may not be considered by the department of local
14 government finance in determining the county's maximum
15 permissible property tax levy limit under IC 6-1.1-18.5; and
16 (3) may be pledged to the repayment of bonds issued or leases
17 entered into for the purposes described in subsection (b).
18 (i) Grant County possesses unique governmental challenges and
19 opportunities due to deficiencies in the current county jail. The use
20 of local income tax revenues as provided in this section is necessary
21 for the county to provide adequate jail capacity in the county and
22 to maintain low property tax rates essential to economic
23 development. The use of local income tax revenues as provided in
24 this section to pay any bonds issued or leases entered into to
25 finance the construction, acquisition, improvement, renovation,
26 and equipping of the facilities described in subsection (b), rather
27 than the use of property taxes, promotes those purposes.
28 (j) Money accumulated from the local income tax rate imposed
29 under this section after the termination of the tax under this
30 section shall be transferred to the county rainy day fund under
31 IC 36-1-8-5.1.
32 SECTION 13. IC 6-3.6-9-10, AS AMENDED BY P.L.184-2018,
33 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
34 JULY 1, 2024]: Sec. 10. The budget agency shall also certify
35 information concerning the part of the certified distribution that is
36 attributable to each of the following:
37 (1) The tax rate imposed under IC 6-3.6-5.
38 (2) The tax rate imposed under IC 6-3.6-6, separately stating:
39 (A) the part of the distribution attributable to a tax rate
40 imposed under IC 6-3.6-6-2.5; and
41 (B) the part of the distribution attributable to a tax rate
42 imposed under IC 6-3.6-6-2.6; and
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1 (B) (C) the part of the distribution attributable to a tax rate
2 imposed under IC 6-3.6-6-2.7.
3 (3) Each tax rate imposed under IC 6-3.6-7.
4 (4) In the case of Marion County, the local income taxes paid by
5 local taxpayers described in IC 6-3.6-2-13(3).
6 The amount certified shall be adjusted to reflect any adjustment in the
7 certified distribution under this chapter.
8 SECTION 14. IC 6-5.5-8-2, AS AMENDED BY THE TECHNICAL
9 CORRECTIONS BILL OF THE 2024 GENERAL ASSEMBLY, IS
10 AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1,
11 2025]: Sec. 2. (a) On or before December 1 and June 1 of each year the
12 auditor of state comptroller shall transfer from the financial
13 institutions tax fund to each county auditor for distribution to the taxing
14 units (as defined in IC 6-1.1-1-21) in the county, an amount equal to
15 fifty percent (50%) of the sum of the distributions under this section for
16 all the taxing units of the county for the state fiscal year. The amount
17 of a taxing unit's distribution for the state fiscal year is equal to the
18 result of:
19 (1) an amount equal to forty percent (40%) of the total financial
20 institutions tax revenue collected during the preceding state fiscal
21 year; multiplied by
22 (2) a fraction equal to:
23 (A) the amount of the guaranteed distributions received by the
24 taxing unit under this chapter during calendar year 2012
25 (based on the best information available to the department);
26 divided by
27 (B) the total amount of all guaranteed distributions received by
28 all taxing units under this chapter during calendar year 2012
29 (based on the best information available to the department).
30 (b) The county auditor shall distribute the distributions received
31 under subsection (a) to the taxing units in the county at the same time
32 that the county auditor makes the semiannual distribution of real
33 property taxes to the taxing units.
34 (c) The distributions received under subsection (a) may be used for
35 any legal purpose.
36 (d) This subsection applies to a taxing unit that did not receive
37 a guaranteed distribution under this chapter during calendar year
38 2012 because the taxing unit was subsequently established as a
39 result of a merger or consolidation of two (2) or more taxing units
40 that received a guaranteed distribution under this chapter during
41 calendar year 2012. The amount of the guaranteed distribution
42 used in the numerator of the fraction described in subsection (a)(2)
EH 1121—LS 6566/DI 125 14
1 equals the combined guaranteed distributions received during
2 calendar year 2012 by each taxing unit that was subsequently
3 merged or consolidated into the current taxing unit.
4 SECTION 15. IC 6-6-5-10, AS AMENDED BY THE TECHNICAL
5 CORRECTIONS BILL OF THE 2024 GENERAL ASSEMBLY, IS
6 AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2024]:
7 Sec. 10. (a) The bureau shall establish procedures necessary for the
8 collection of the tax imposed by this chapter and for the proper
9 accounting for the same. The necessary forms and records shall be
10 subject to approval by the state board of accounts.
11 (b) The county treasurer, upon receiving the excise tax collections,
12 shall receipt such collections into a separate account for settlement
13 thereof at the same time as property taxes are accounted for and settled
14 in June and December of each year, with the right and duty of the
15 treasurer and auditor to make advances prior to the time of final
16 settlement of such property taxes in the same manner as provided in
17 IC 5-13-6-3.
18 (c) As used in this subsection, "taxing district" has the meaning set
19 forth in IC 6-1.1-1-20, "taxing unit" has the meaning set forth in
20 IC 6-1.1-1-21, and "tuition support levy" refers to a school
21 corporation's tuition support property tax levy under IC 20-45-3-11
22 (repealed) for the school corporation's general fund. The county auditor
23 shall determine the total amount of excise taxes collected for each
24 taxing district in the county and the amount so collected (and the
25 distributions received under section 9.5 of this chapter) shall be
26 apportioned and distributed among the respective funds of the taxing
27 units in the same manner and at the same time as property taxes are
28 apportioned and distributed (subject to adjustment as provided in
29 IC 36-8-19-7.5). In the event a taxing unit merges or consolidates
30 with one (1) or more taxing units in the county, the county auditor
31 shall include adjustments to the current taxing unit's
32 apportionment and distributions, if necessary, so that the
33 apportionment and distributions accurately reflect the merger or
34 consolidation of the taxing units. However, for purposes of
35 determining distributions under this section for 2009 and each year
36 thereafter, a state welfare and tuition support allocation shall be
37 deducted from the total amount available for apportionment and
38 distribution to taxing units under this section before any apportionment
39 and distribution is made. The county auditor shall remit the state
40 welfare and tuition support allocation to the treasurer of state for
41 deposit, as directed by the budget agency. The amount of the state
42 welfare and tuition support allocation for a county for a particular year
EH 1121—LS 6566/DI 125 15
1 is equal to the result determined under STEP FOUR of the following
2 formula:
3 STEP ONE: Determine the result of the following:
4 (A) Separately for 1997, 1998, and 1999 for each taxing
5 district in the county, determine the result of:
6 (i) the amount appropriated in the year by the county from
7 the county's county welfare fund and county welfare
8 administration fund; divided by
9 (ii) the total amounts appropriated by all taxing units in the
10 county for the same year.
11 (B) Determine the sum of the clause (A) amounts.
12 (C) Divide the clause (B) amount by three (3).
13 (D) Determine the result of:
14 (i) the amount of excise taxes allocated to the taxing district
15 that would otherwise be available for distribution to taxing
16 units in the taxing district; multiplied by
17 (ii) the clause (C) amount.
18 STEP TWO: Determine the result of the following:
19 (A) Separately for 2006, 2007, and 2008 for each taxing
20 district in the county, determine the result of:
21 (i) the tax rate imposed in the taxing district for the county's
22 county medical assistance to wards fund, family and
23 children's fund, children's psychiatric residential treatment
24 services fund, county hospital care for the indigent fund,
25 children with special health care needs county fund, plus, in
26 the case of Marion County, the tax rate imposed by the
27 health and hospital corporation that was necessary to raise
28 thirty-five million dollars ($35,000,000) from all taxing
29 districts in the county; divided by
30 (ii) the aggregate tax rate imposed in the taxing district for
31 the same year.
32 (B) Determine the sum of the clause (A) amounts.
33 (C) Divide the clause (B) amount by three (3).
34 (D) Determine the result of:
35 (i) the amount of excise taxes allocated to the taxing district
36 that would otherwise be available for distribution to taxing
37 units in the taxing district after subtracting the STEP ONE
38 (D) amount for the same taxing district; multiplied by
39 (ii) the clause (C) amount.
40 (E) Determine the sum of the clause (D) amounts for all taxing
41 districts in the county.
42 STEP THREE: Determine the result of the following:
EH 1121—LS 6566/DI 125 16
1 (A) Separately for 2006, 2007, and 2008 for each taxing
2 district in the county, determine the result of:
3 (i) the tuition support levy tax rate imposed in the taxing
4 district plus the tax rate imposed by the school corporation
5 for the school corporation's special education preschool fund
6 in the district; divided by
7 (ii) the aggregate tax rate imposed in the taxing district for
8 the same year.
9 (B) Determine the sum of the clause (A) amounts.
10 (C) Divide the clause (B) amount by three (3).
11 (D) Determine the result of:
12 (i) the amount of excise taxes allocated to the taxing district
13 that would otherwise be available for distribution to taxing
14 units in the taxing district after subtracting the STEP ONE
15 (D) amount for the same taxing district; multiplied by
16 (ii) the clause (C) amount.
17 (E) Determine the sum of the clause (D) amounts for all taxing
18 districts in the county.
19 STEP FOUR: Determine the sum of the STEP ONE, STEP TWO,
20 and STEP THREE amounts for the county.
21 If the boundaries of a taxing district change after the years for which a
22 ratio is calculated under STEP ONE, STEP TWO, or STEP THREE,
23 the auditor of state comptroller shall establish a ratio for the new
24 taxing district that reflects the tax rates imposed in the predecessor
25 taxing districts. If a new taxing district is established after the years for
26 which a ratio is calculated under STEP ONE, STEP TWO, or STEP
27 THREE, the auditor of state comptroller shall establish a ratio for the
28 new taxing district and adjust the ratio for other taxing districts in the
29 county.
30 (d) Such determination shall be made from copies of vehicle
31 registration forms furnished by the bureau of motor vehicles. Prior to
32 such determination, the county assessor of each county shall, from
33 copies of registration forms, cause information pertaining to legal
34 residence of persons owning taxable vehicles to be verified from the
35 assessor's records, to the extent such verification can be so made. The
36 assessor shall further identify and verify from the assessor's records the
37 several taxing units within which such persons reside.
38 (e) Such verifications shall be done by not later than thirty (30) days
39 after receipt of vehicle registration forms by the county assessor, and
40 the assessor shall certify such information to the county auditor for the
41 auditor's use as soon as it is checked and completed.
42 SECTION 16. IC 6-6-5.5-19, AS AMENDED BY THE
EH 1121—LS 6566/DI 125 17
1 TECHNICAL CORRECTIONS BILL OF THE 2024 GENERAL
2 ASSEMBLY, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2024]: Sec. 19. (a) As used in this section, "assessed value"
4 means an amount equal to the true tax value of commercial vehicles
5 that:
6 (1) are subject to the commercial vehicle excise tax under this
7 chapter; and
8 (2) would have been subject to assessment as personal property
9 on March 1, 2000, under the law in effect before January 1, 2000.
10 (b) For calendar year 2001, a taxing unit's base revenue shall be
11 determined as provided in subsection (f). For calendar years that begin
12 after December 31, 2001, and before January 1, 2009, a taxing unit's
13 base revenue shall be determined by multiplying the previous year's
14 base revenue by one hundred five percent (105%). For calendar years
15 that begin after December 31, 2008, a taxing unit's base revenue is
16 equal to:
17 (1) the amount of commercial vehicle excise tax collected during
18 the previous state fiscal year; multiplied by
19 (2) the taxing unit's percentage as determined in subsection (f) for
20 calendar year 2001.
21 (c) The amount of commercial vehicle excise tax distributed to the
22 taxing units of Indiana from the commercial vehicle excise tax fund
23 shall be determined in the manner provided in this section.
24 (d) On or before July 1, 2000, each county assessor shall certify to
25 the county auditor the assessed value of commercial vehicles in every
26 taxing district.
27 (e) On or before August 1, 2000, the county auditor shall certify the
28 following to the department of local government finance:
29 (1) The total assessed value of commercial vehicles in the county.
30 (2) The total assessed value of commercial vehicles in each taxing
31 district of the county.
32 (f) The department of local government finance shall determine
33 each taxing unit's base revenue by applying the current tax rate for each
34 taxing district to the certified assessed value from each taxing district.
35 The department of local government finance shall also determine the
36 following:
37 (1) The total amount of base revenue to be distributed from the
38 commercial vehicle excise tax fund in 2001 to all taxing units in
39 Indiana.
40 (2) The total amount of base revenue to be distributed from the
41 commercial vehicle excise tax fund in 2001 to all taxing units in
42 each county.
EH 1121—LS 6566/DI 125 18
1 (3) Each county's total distribution percentage. A county's total
2 distribution percentage shall be determined by dividing the total
3 amount of base revenue to be distributed in 2001 to all taxing
4 units in the county by the total base revenue to be distributed
5 statewide.
6 (4) Each taxing unit's distribution percentage. A taxing unit's
7 distribution percentage shall be determined by dividing each
8 taxing unit's base revenue by the total amount of base revenue to
9 be distributed in 2001 to all taxing units in the county. However,
10 in the event a taxing unit subsequently merges or consolidates
11 with another taxing unit in the county, the amount of the base
12 revenue used to calculate the distribution percentage of the
13 taxing unit resulting from the consolidation or merger under
14 this subdivision is the combined base revenue distributed in
15 2001 to each taxing unit that was subsequently merged or
16 consolidated to establish the currently existing taxing unit.
17 (g) The department of local government finance shall certify each
18 taxing unit's base revenue and distribution percentage for calendar year
19 2001 to the auditor of state on or before September 1, 2000.
20 (h) The auditor of state comptroller shall keep permanent records
21 of each taxing unit's base revenue and distribution percentage for
22 calendar year 2001 for purposes of determining the amount of money
23 each taxing unit in Indiana is entitled to receive in calendar years that
24 begin after December 31, 2001.
25 SECTION 17. IC 6-9-53-3, AS ADDED BY P.L.290-2019,
26 SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
27 UPON PASSAGE]: Sec. 3. (a) The fiscal body of the county may levy
28 a tax on every person engaged in the business of renting or furnishing,
29 for periods of less than thirty (30) days, any room or rooms, lodgings,
30 or accommodations in any:
31 (1) hotel;
32 (2) motel;
33 (3) boat motel;
34 (4) inn;
35 (5) college or university memorial union;
36 (6) college or university residence hall or dormitory; or
37 (7) tourist cabin;
38 located in the county.
39 (b) The tax does not apply to gross income received in a transaction
40 in which:
41 (1) a student rents lodgings in a college or university residence
42 hall while that student participates in a course of study for which
EH 1121—LS 6566/DI 125 19
1 the student receives college credit from a college or university
2 located in the county; or
3 (2) a person rents a room, lodging, or accommodations for a
4 period of thirty (30) days or more.
5 (c) Subject to subsection (d), the tax may not exceed the rate of six
6 eight percent (6%) (8%) on the gross retail income derived from
7 lodging income only and is in addition to the state gross retail tax
8 imposed under IC 6-2.5. However, if the county fiscal body increases
9 the tax rate to more than six percent (6%), the portion of the tax
10 rate that exceeds six percent (6%) shall expire on December 31,
11 2045.
12 (d) Notwithstanding subsection (c), the tax rate imposed by the
13 fiscal body of Knox County under this chapter may not exceed five
14 percent (5%), or, if the county fiscal body increases the tax rate to
15 more than six percent (6%) under subsection (c), may not exceed
16 seven percent (7%), if either of the following apply:
17 (1) The Grouseland Foundation, Inc., is dissolved.
18 (2) Tours of the territorial mansion and presidential site of
19 William Henry Harrison are no longer provided.
20 (e) The tax shall be imposed, paid, and collected in the same manner
21 as the state gross retail tax is imposed, paid, and collected under
22 IC 6-2.5.
23 SECTION 18. IC 6-9-53-5, AS AMENDED BY THE TECHNICAL
24 CORRECTIONS BILL OF THE 2024 GENERAL ASSEMBLY, IS
25 AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON
26 PASSAGE]: Sec. 5. The amounts received from the tax imposed under
27 this chapter shall be paid monthly by the treasurer of state upon
28 warrants issued by the auditor of state comptroller as follows:
29 (1) If the tax rate imposed under section 3 of this chapter is:
30 (A) five percent (5%) or less; or
31 (B) during the period that an increase under section 3(c) of
32 this chapter is in effect, seven percent (7%) or less;
33 all amounts received from the tax shall be paid to the county
34 treasurer.
35 (2) If the tax rate imposed under section 3 of this chapter is more
36 than five percent (5%), or, during the period that an increase
37 under section 3(c) of this chapter is in effect, more than seven
38 percent (7%), amounts received from the tax shall be allocated
39 and paid as follows:
40 (A) The amount received from the tax as a result of a five
41 percent (5%) rate, or, during the period that an increase
42 under section 3(c) of this chapter is in effect, as a result of
EH 1121—LS 6566/DI 125 20
1 a seven percent (7%) rate, shall be allocated and paid to the
2 county treasurer.
3 (B) The amount received from the tax that exceeds the amount
4 under clause (A) shall be allocated and paid to the Grouseland
5 Foundation, Inc.
6 SECTION 19. IC 6-9-58 IS ADDED TO THE INDIANA CODE AS
7 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
8 1, 2024]:
9 Chapter 58. Hammond Food and Beverage Tax
10 Sec. 1. This chapter applies to the city of Hammond.
11 Sec. 2. The definitions in IC 6-9-12-1 apply throughout this
12 chapter.
13 Sec. 3. (a) The fiscal body of the city may adopt an ordinance to
14 impose an excise tax, known as the city food and beverage tax, on
15 transactions described in section 4 of this chapter. The fiscal body
16 of the city may adopt an ordinance under this subsection only after
17 the fiscal body has previously held at least one (1) separate public
18 hearing in which a discussion of the proposed ordinance to impose
19 the city food and beverage tax is the only substantive issue on the
20 agenda for the public hearing.
21 (b) If the city fiscal body adopts an ordinance under subsection
22 (a), the city fiscal body shall immediately send a certified copy of
23 the ordinance to the department of state revenue.
24 (c) If the city fiscal body adopts an ordinance under subsection
25 (a), the city food and beverage tax applies to transactions that
26 occur after the later of the following:
27 (1) The day specified in the ordinance.
28 (2) The last day of the month that succeeds the month in
29 which the ordinance is adopted.
30 Sec. 4. (a) Except as provided in subsection (c), a tax imposed
31 under section 3 of this chapter applies to a transaction in which
32 food or beverage is furnished, prepared, or served:
33 (1) for consumption at a location or on equipment provided by
34 a retail merchant;
35 (2) in the city; and
36 (3) by a retail merchant for consideration.
37 (b) Transactions described in subsection (a)(1) include
38 transactions in which food or beverage is:
39 (1) served by a retail merchant off the merchant's premises;
40 (2) sold in a heated state or heated by a retail merchant;
41 (3) made of two (2) or more food ingredients, mixed or
42 combined by a retail merchant for sale as a single item (other
EH 1121—LS 6566/DI 125 21
1 than food that is only cut, repackaged, or pasteurized by the
2 seller, and eggs, fish, meat, poultry, and foods containing these
3 raw animal foods requiring cooking by the consumer as
4 recommended by the federal Food and Drug Administration
5 in chapter 3, subpart 3-401.11 of its Food Code so as to
6 prevent food borne illnesses); or
7 (4) sold with eating utensils provided by a retail merchant,
8 including plates, knives, forks, spoons, glasses, cups, napkins,
9 or straws (for purposes of this subdivision, a plate does not
10 include a container or package used to transport food).
11 (c) The city food and beverage tax does not apply to the
12 furnishing, preparing, or serving of a food or beverage in a
13 transaction that is exempt, or to the extent the transaction is
14 exempt, from the state gross retail tax imposed by IC 6-2.5.
15 Sec. 5. The city food and beverage tax rate:
16 (1) must be imposed in an increment of twenty-five
17 hundredths percent (0.25%); and
18 (2) may not exceed one percent (1%);
19 of the gross retail income received by the merchant from the food
20 or beverage transaction described in section 4 of this chapter. For
21 purposes of this chapter, the gross retail income received by the
22 retail merchant from a transaction does not include the amount of
23 tax imposed on the transaction under IC 6-2.5.
24 Sec. 6. A tax imposed under this chapter is imposed, paid, and
25 collected in the same manner that the state gross retail tax is
26 imposed, paid, and collected under IC 6-2.5. However, the return
27 to be filed with the payment of the tax imposed under this chapter
28 may be made on a separate return or may be combined with the
29 return filed for the payment of the state gross retail tax, as
30 prescribed by the department of state revenue.
31 Sec. 7. The amounts received from the tax imposed under this
32 chapter shall be paid monthly by the treasurer of state to the city
33 fiscal officer upon warrants issued by the state comptroller.
34 Sec. 8. (a) If a tax is imposed under section 3 of this chapter by
35 the city, the city fiscal officer shall establish a food and beverage
36 tax receipts fund.
37 (b) The city fiscal officer shall deposit in the fund all amounts
38 received under this chapter.
39 (c) Money earned from the investment of money in the fund
40 becomes a part of the fund.
41 Sec. 9. Money in the food and beverage tax receipts fund must
42 be used by the city only for the following purposes:
EH 1121—LS 6566/DI 125 22
1 (1) Development related to the northern Indiana commuter
2 transportation district's construction of the West Lake
3 Corridor Commuter Rail Project.
4 (2) Development in the city's downtown area, including the
5 purchase of land for development in the city's downtown area.
6 (3) The expansion and improvement of the Hammond
7 Sportsplex and Community Center, including the purchase of
8 land for the expansion and improvement of the Hammond
9 Sportsplex and Community Center.
10 (4) The expansion and improvement of the Pavilion at Wolf
11 Lake Memorial Park, including the purchase of land for the
12 expansion and improvement of the Pavilion at Wolf Lake
13 Memorial Park.
14 (5) The pledge of money under IC 5-1-14-4 for bonds, leases,
15 or other obligations incurred for a purpose described in
16 subdivisions (1) through (4).
17 Revenue derived from the imposition of a tax under this chapter
18 may be treated by the city as additional revenue for the purpose of
19 fixing its budget for the budget year during which the revenues are
20 to be distributed to the city.
21 Sec. 10. With respect to obligations for which a pledge has been
22 made under section 9 of this chapter, the general assembly
23 covenants with the holders of the obligations that this chapter will
24 not be repealed or amended in a manner that will adversely affect
25 the imposition or collection of the tax imposed under this chapter
26 if the payment of any of the obligations is outstanding.
27 Sec. 11. (a) If the city imposes the tax authorized by this chapter,
28 the tax terminates on July 1, 2047.
29 (b) This chapter expires July 1, 2047.
30 SECTION 20. IC 6-9-59 IS ADDED TO THE INDIANA CODE AS
31 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
32 1, 2024]:
33 Chapter 59. Cicero Food and Beverage Tax
34 Sec. 1. This chapter applies to the town of Cicero.
35 Sec. 2. The definitions in IC 6-9-12-1 apply throughout this
36 chapter.
37 Sec. 3. (a) The fiscal body of the town may adopt an ordinance
38 to impose an excise tax, known as the town food and beverage tax,
39 on transactions described in section 4 of this chapter. The fiscal
40 body of the town may adopt an ordinance under this subsection
41 only after the fiscal body has previously held at least one (1)
42 separate public hearing in which a discussion of the proposed
EH 1121—LS 6566/DI 125 23
1 ordinance to impose the town food and beverage tax is the only
2 substantive issue on the agenda for the public hearing.
3 (b) If the town fiscal body adopts an ordinance under subsection
4 (a), the town fiscal body shall immediately send a certified copy of
5 the ordinance to the department of state revenue.
6 (c) If the town fiscal body adopts an ordinance under subsection
7 (a), the town food and beverage tax applies to transactions that
8 occur after the later of the following:
9 (1) The day specified in the ordinance.
10 (2) The last day of the month that succeeds the month in
11 which the ordinance is adopted.
12 Sec. 4. (a) Except as provided in subsection (c), a tax imposed
13 under section 3 of this chapter applies to a transaction in which
14 food or beverage is furnished, prepared, or served:
15 (1) for consumption at a location or on equipment provided by
16 a retail merchant;
17 (2) in the town; and
18 (3) by a retail merchant for consideration.
19 (b) Transactions described in subsection (a)(1) include
20 transactions in which food or beverage is:
21 (1) served by a retail merchant off the merchant's premises;
22 (2) sold in a heated state or heated by a retail merchant;
23 (3) made of two (2) or more food ingredients, mixed or
24 combined by a retail merchant for sale as a single item (other
25 than food that is only cut, repackaged, or pasteurized by the
26 seller, and eggs, fish, meat, poultry, and foods containing these
27 raw animal foods requiring cooking by the consumer as
28 recommended by the federal Food and Drug Administration
29 in chapter 3, subpart 3-401.11 of its Food Code so as to
30 prevent food borne illnesses); or
31 (4) sold with eating utensils provided by a retail merchant,
32 including plates, knives, forks, spoons, glasses, cups, napkins,
33 or straws (for purposes of this subdivision, a plate does not
34 include a container or package used to transport food).
35 (c) The town food and beverage tax does not apply to the
36 furnishing, preparing, or serving of a food or beverage in a
37 transaction that is exempt, or to the extent the transaction is
38 exempt, from the state gross retail tax imposed by IC 6-2.5.
39 Sec. 5. The town food and beverage tax rate:
40 (1) must be imposed in an increment of twenty-five
41 hundredths percent (0.25%); and
42 (2) may not exceed one percent (1%);
EH 1121—LS 6566/DI 125 24
1 of the gross retail income received by the merchant from the food
2 or beverage transaction described in section 4 of this chapter. For
3 purposes of this chapter, the gross retail income received by the
4 retail merchant from a transaction does not include the amount of
5 tax imposed on the transaction under IC 6-2.5.
6 Sec. 6. A tax imposed under this chapter is imposed, paid, and
7 collected in the same manner that the state gross retail tax is
8 imposed, paid, and collected under IC 6-2.5. However, the return
9 to be filed with the payment of the tax imposed under this chapter
10 may be made on a separate return or may be combined with the
11 return filed for the payment of the state gross retail tax, as
12 prescribed by the department of state revenue.
13 Sec. 7. The amounts received from the tax imposed under this
14 chapter shall be paid monthly by the treasurer of state to the town
15 fiscal officer upon warrants issued by the state comptroller.
16 Sec. 8. (a) If a tax is imposed under section 3 of this chapter by
17 the town, the town fiscal officer shall establish a food and beverage
18 tax receipts fund.
19 (b) The town fiscal officer shall deposit in the fund all amounts
20 received under this chapter.
21 (c) Money earned from the investment of money in the fund
22 becomes a part of the fund.
23 Sec. 9. Money in the food and beverage tax receipts fund must
24 be used by the town only for the following purposes:
25 (1) To reduce the town's property tax levy for a particular
26 year at the discretion of the town, but this use does not reduce
27 the maximum permissible ad valorem property tax levy under
28 IC 6-1.1-18.5 for the town.
29 (2) For economic development purposes, including the pledge
30 of money under IC 5-1-14-4 for bonds, leases, or other
31 obligations for economic development purposes.
32 (3) To create new parks and amenities, and to expand and
33 enhance existing parks and amenities.
34 (4) To upgrade, expand, and otherwise improve the town's
35 water, sanitary sewer, and storm water utilities.
36 Revenue derived from the imposition of a tax under this chapter
37 may be treated by the town as additional revenue for the purpose
38 of fixing its budget for the budget year during which the revenues
39 are to be distributed to the town.
40 Sec. 10. With respect to obligations for which a pledge has been
41 made under section 9 of this chapter, the general assembly
42 covenants with the holders of the obligations that this chapter will
EH 1121—LS 6566/DI 125 25
1 not be repealed or amended in a manner that will adversely affect
2 the imposition or collection of the tax imposed under this chapter
3 if the payment of any of the obligations is outstanding.
4 Sec. 11. (a) If the town imposes the tax authorized by this
5 chapter, the tax terminates on July 1, 2046.
6 (b) This chapter expires July 1, 2046.
7 SECTION 21. [EFFECTIVE JULY 1, 2024] (a) The definitions
8 used in IC 6-3.6-2 apply throughout this SECTION.
9 (b) As used in this SECTION, "district" refers to the
10 Highlander Fire Protection District located in Floyd County
11 established by an ordinance adopted by the Floyd County
12 commissioners on December 30, 2022.
13 (c) As used in this SECTION, "Greenville FPD" refers to the
14 Greenville Township Fire Protection District located in Floyd
15 County as it existed prior to its merger with the Lafayette FPD.
16 (d) As used in this SECTION, "Lafayette FPD" refers to the
17 Lafayette Township Fire Protection District located in Floyd
18 County as it existed prior to its merger with the Greenville FPD.
19 (e) Notwithstanding IC 6-3.6-6, as amended by this act, and
20 IC 6-3.6-9-15, the department of local government finance shall
21 include with its distribution under IC 6-3.6-9-5 for Floyd County
22 in 2025 and for the calculations of any potential supplemental
23 distribution under IC 6-3.6-9-15 for 2026 the following
24 adjustments:
25 (1) An amount equal to the combined distribution that would
26 have been distributed to the Greenville FPD and the Lafayette
27 FPD in 2024, but for their elimination resulting from the
28 merger to establish the district, shall be added to the
29 distribution to the district.
30 (2) The distribution for each applicable civil taxing unit and
31 school corporation in Floyd County, excluding the district,
32 shall be reduced by an amount in accordance with
33 IC 6-3.6-9-6 that equals the proportionate share of the
34 amount of local income tax received in 2024 under IC 6-3.6-6,
35 before its amendment by this act, of the combined distribution
36 that would have been distributed to the Greenville FPD and
37 the Lafayette FPD in 2024, but for their elimination resulting
38 from the merger to establish the district.
39 (f) Notwithstanding IC 6-1.1-18.5, the department of local
40 government finance shall make a one (1) time temporary
41 adjustment to the maximum levies in accordance with the
42 adjustments described in subsection (e) that may not be included
EH 1121—LS 6566/DI 125 26
1 in the calculation of a maximum levy in a subsequent year of the
2 applicable taxing units.
3 (g) This SECTION expires January 1, 2027.
4 SECTION 22. An emergency is declared for this act.
EH 1121—LS 6566/DI 125 27
COMMITTEE REPORT
Mr. Speaker: Your Committee on Ways and Means, to which was
referred House Bill 1121, has had the same under consideration and
begs leave to report the same back to the House with the
recommendation that said bill be amended as follows:
Page 1, between lines 8 and 9, begin a new paragraph and insert:
"SECTION 2. IC 6-3.6-3-1, AS AMENDED BY P.L.184-2018,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 1. (a) The following is the adopting body for a
county:
(1) The local income tax council in a county in which the county
income tax council adopted either:
(A) a county option income tax under IC 6-3.5-6 (repealed)
that was in effect on January 1, 2015; or
(B) a county economic development income tax for the county
under IC 6-3.5-7 (repealed) that was in effect on January 1,
2015.
(2) The county fiscal body in any other county.
(3) The county fiscal body for purposes of adopting a rate
dedicated to paying for a PSAP in the county as permitted by
IC 6-3.6-6-2.5.
(4) The county fiscal body for purposes of adopting a rate
dedicated to paying for acute care hospitals in the county as
permitted by IC 6-3.6-6-2.6.
(4) (5) The county fiscal body for purposes of adopting a rate
dedicated to paying for correctional facilities and rehabilitation
facilities in the county as permitted by IC 6-3.6-6-2.7.
(b) A local income tax council is established for each county. The
membership of each county's local income tax council consists of the
fiscal body of the county and the fiscal body of each city or town that
lies either partially or entirely within that county.".
Page 5, between lines 24 and 25, begin a new paragraph and insert:
"SECTION 7. IC 6-3.6-6-2.4 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2024]: Sec. 2.4. (a) This section applies only to Marion County.
(b) As used in this section, "improvement and services projects"
means the following:
(1) Providing security for public areas, including installing
and maintaining exterior cameras directly linked with the
Indianapolis metropolitan police department central control.
(2) Employing safety ambassadors to:
(A) deter aggressive panhandling and other nuisance
EH 1121—LS 6566/DI 125 28
behavior;
(B) assist with directions and information;
(C) facilitate open communications with police to report
ongoing issues;
(D) provide safety escort services; and
(E) maintain a network of communication throughout the
downtown area by engaging with private and public
security companies.
(3) Cleaning and maintaining sidewalks, including picking up
litter, removing graffiti, and power washing.
(4) Conducting extensive outreach to unsheltered homeless
individuals.
(5) Funding facility operations for a low barrier shelter for
homeless individuals.
(6) Designing, landscaping, beautifying, or maintaining public
areas.
(7) Activating and promoting public events.
(8) Creating innovative approaches to attracting new
businesses.
(9) Supporting business development.
(10) Planning improvement activities.
(c) The adopting body may, before January 1, 2027, adopt an
ordinance to impose a tax rate in the county for improvement and
services projects located within the boundaries of the Mile Square
area of the consolidated city. The tax rate must be in increments of
one-hundredth of one percent (0.01%) and may not exceed two
hundredths of one percent (0.02%).
(d) The revenue generated by a tax rate imposed under this
section must be distributed directly to the county before the
remainder of the expenditure rate revenue is distributed. The
revenue shall be maintained in a separate dedicated county fund.
(e) The adopting body may not adopt an ordinance under this
section after December 31, 2026.
SECTION 8. IC 6-3.6-6-2.6 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2024]: Sec. 2.6. (a) As used in this section, "acute care hospital"
means an acute care hospital that is:
(1) established and operated under IC 16-22-2, IC 16-22-8, or
IC 16-23; and
(2) licensed under IC 16-21.
(b) A county fiscal body may adopt an ordinance to impose a tax
rate for acute care hospitals located in the county. The tax rate
EH 1121—LS 6566/DI 125 29
must be in increments of one-hundredth of one percent (0.01%)
and may not exceed one-tenth of one percent (0.1%).
(c) The revenue generated by a tax rate imposed under this
section must be distributed directly to the county before the
remainder of the expenditure rate revenue is distributed. The
revenue shall be maintained in a separate dedicated county fund.".
Page 6, between lines 29 and 30, begin a new paragraph and insert:
"SECTION 10. IC 6-3.6-6-3, AS AMENDED BY P.L.95-2022,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 3. (a) Revenue raised from a tax imposed under
this chapter shall be treated as follows:
(1) To make the following distributions:
(A) If an ordinance described in section 2.4 of this chapter
is in effect, to make a distribution to the county equal to
the amount of revenue generated by the rate imposed
under section 2.4 of this chapter.
(A) (B) If an ordinance described in section 2.5 of this chapter
is in effect in a county, to make a distribution to the county
equal to the amount of revenue generated by the rate imposed
under section 2.5 of this chapter.
(C) If an ordinance described in section 2.6 of this chapter
is in effect in a county, to make a distribution to the county
equal to the amount of revenue generated by the rate
imposed under section 2.6 of this chapter.
(B) (D) If an ordinance described in section 2.7 of this chapter
is in effect in a county, to make a distribution to the county
equal to the amount of revenue generated by the rate imposed
under section 2.7 of this chapter.
(C) (E) If an ordinance described in section 2.8 of this chapter
is in effect in a county, to make a distribution to the county
equal to the amount of revenue generated by the rate imposed
under section 2.8 of this chapter.
(2) After making the distributions described in subdivision (1), if
any, to make distributions to school corporations and civil taxing
units in counties that formerly imposed a tax under IC 6-3.5-1.1
(repealed). The revenue categorized from the next twenty-five
hundredths percent (0.25%) of the rate for a former tax adopted
under IC 6-3.5-1.1 (repealed) shall be allocated to school
corporations and civil taxing units. The amount of the allocation
to a school corporation or civil taxing unit shall be determined
using the allocation amounts for civil taxing units and school
corporations in the county.
EH 1121—LS 6566/DI 125 30
(3) After making the distributions described in subdivisions (1)
and (2), the remaining revenue shall be treated as additional
revenue (referred to as "additional revenue" in this chapter).
Additional revenue may not be considered by the department of
local government finance in determining:
(A) any taxing unit's maximum permissible property tax levy
limit under IC 6-1.1-18.5; or
(B) the approved property tax rate for any fund.
(b) In the case of a civil taxing unit that has pledged the tax from
additional revenue for the payment of bonds, leases, or other
obligations as reported by the civil taxing unit under IC 5-1-18, the
adopting body may not, under section 4 of this chapter, reduce the
proportional allocation of the additional revenue that was allocated in
the preceding year if the reduction for that year would result in an
amount less than the amount necessary for the payment of bonds,
leases, or other obligations payable or required to be deposited in a
sinking fund or other reserve in that year for the bonds, leases, or other
obligations for which the tax from additional revenue has been pledged.
To inform an adopting body with regard to allocations that affect the
payment of bonds, leases, or other obligations, a taxing unit may
provide the adopting body with information regarding any outstanding
bonds, leases, or other obligations that are secured by additional
revenue. The information must be provided before the date of the
public hearing at which the adopting body may change the allocation
of additional revenue under section 4 of this chapter.
SECTION 11. IC 6-3.6-6-21.3 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2024]: Sec. 21.3. (a) This section:
(1) does not apply to:
(A) distributions made under this chapter to a civil taxing
unit for fire protection services within a fire protection
territory established under IC 36-8-19; or
(B) distributions of revenue under section 9 of this chapter;
and
(2) applies only to the following:
(A) Any allocation or distribution of revenue under section
3(a)(2) of this chapter that is made on the basis of property
tax levies in counties that formerly imposed a tax under
IC 6-3.5-1.1 (before its repeal on January 1, 2017).
(B) Any allocation or distribution of revenue under section
3(a)(3) of this chapter that is made on the basis of property
tax levies in counties that formerly imposed a tax under
EH 1121—LS 6566/DI 125 31
IC 6-3.5-6 (before its repeal on January 1, 2017).
(b) Subject to subsection (a), if two (2) or more:
(1) school corporations; or
(2) civil taxing units;
of an adopting county merge or consolidate to form a single school
corporation or civil taxing unit, the school corporation or civil
taxing unit that is in existence on January 1 of the current year is
entitled to the combined pro rata distribution of the revenue under
section 3(a)(2) or 3(a)(3) of this chapter (as appropriate) allocated
to each applicable school corporation or civil taxing unit in
existence on January 1 of the immediately preceding calendar year
prior to the merger or consolidation.
(c) The department of local government finance shall make
adjustments to civil taxing units in accordance with
IC 6-1.1-18.5-7.
SECTION 12. IC 6-3.6-9-10, AS AMENDED BY P.L.184-2018,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 10. The budget agency shall also certify
information concerning the part of the certified distribution that is
attributable to each of the following:
(1) The tax rate imposed under IC 6-3.6-5.
(2) The tax rate imposed under IC 6-3.6-6, separately stating:
(A) the part of the distribution attributable to a tax rate
imposed under IC 6-3.6-6-2.4;
(A) (B) the part of the distribution attributable to a tax rate
imposed under IC 6-3.6-6-2.5; and
(C) the part of the distribution attributable to a tax rate
imposed under IC 6-3.6-6-2.6; and
(B) (D) the part of the distribution attributable to a tax rate
imposed under IC 6-3.6-6-2.7.
(3) Each tax rate imposed under IC 6-3.6-7.
(4) In the case of Marion County, the local income taxes paid by
local taxpayers described in IC 6-3.6-2-13(3).
The amount certified shall be adjusted to reflect any adjustment in the
certified distribution under this chapter.
SECTION 13. IC 6-5.5-8-2, AS AMENDED BY THE TECHNICAL
CORRECTIONS BILL OF THE 2024 GENERAL ASSEMBLY, IS
AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1,
2025]: Sec. 2. (a) On or before December 1 and June 1 of each year the
auditor of state comptroller shall transfer from the financial
institutions tax fund to each county auditor for distribution to the taxing
units (as defined in IC 6-1.1-1-21) in the county, an amount equal to
EH 1121—LS 6566/DI 125 32
fifty percent (50%) of the sum of the distributions under this section for
all the taxing units of the county for the state fiscal year. The amount
of a taxing unit's distribution for the state fiscal year is equal to the
result of:
(1) an amount equal to forty percent (40%) of the total financial
institutions tax revenue collected during the preceding state fiscal
year; multiplied by
(2) a fraction equal to:
(A) the amount of the guaranteed distributions received by the
taxing unit under this chapter during calendar year 2012
(based on the best information available to the department);
divided by
(B) the total amount of all guaranteed distributions received by
all taxing units under this chapter during calendar year 2012
(based on the best information available to the department).
(b) The county auditor shall distribute the distributions received
under subsection (a) to the taxing units in the county at the same time
that the county auditor makes the semiannual distribution of real
property taxes to the taxing units.
(c) The distributions received under subsection (a) may be used for
any legal purpose.
(d) This subsection applies to a taxing unit that did not receive
a guaranteed distribution under this chapter during calendar year
2012 because the taxing unit was subsequently established as a
result of a merger or consolidation of two (2) or more taxing units
that received a guaranteed distribution under this chapter during
calendar year 2012. The amount of the guaranteed distribution
used in the numerator of the fraction described in subsection (a)(2)
equals the combined guaranteed distributions received during
calendar year 2012 by each taxing unit that was subsequently
merged or consolidated into the current taxing unit.
SECTION 14. IC 6-6-5-10, AS AMENDED BY THE TECHNICAL
CORRECTIONS BILL OF THE 2024 GENERAL ASSEMBLY, IS
AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2024]:
Sec. 10. (a) The bureau shall establish procedures necessary for the
collection of the tax imposed by this chapter and for the proper
accounting for the same. The necessary forms and records shall be
subject to approval by the state board of accounts.
(b) The county treasurer, upon receiving the excise tax collections,
shall receipt such collections into a separate account for settlement
thereof at the same time as property taxes are accounted for and settled
in June and December of each year, with the right and duty of the
EH 1121—LS 6566/DI 125 33
treasurer and auditor to make advances prior to the time of final
settlement of such property taxes in the same manner as provided in
IC 5-13-6-3.
(c) As used in this subsection, "taxing district" has the meaning set
forth in IC 6-1.1-1-20, "taxing unit" has the meaning set forth in
IC 6-1.1-1-21, and "tuition support levy" refers to a school
corporation's tuition support property tax levy under IC 20-45-3-11
(repealed) for the school corporation's general fund. The county auditor
shall determine the total amount of excise taxes collected for each
taxing district in the county and the amount so collected (and the
distributions received under section 9.5 of this chapter) shall be
apportioned and distributed among the respective funds of the taxing
units in the same manner and at the same time as property taxes are
apportioned and distributed (subject to adjustment as provided in
IC 36-8-19-7.5). In the event a taxing unit merges or consolidates
with one (1) or more taxing units in the county, the county auditor
shall include adjustments to the current taxing unit's
apportionment and distributions, if necessary, so that the
apportionment and distributions accurately reflect the merger or
consolidation of the taxing units. However, for purposes of
determining distributions under this section for 2009 and each year
thereafter, a state welfare and tuition support allocation shall be
deducted from the total amount available for apportionment and
distribution to taxing units under this section before any apportionment
and distribution is made. The county auditor shall remit the state
welfare and tuition support allocation to the treasurer of state for
deposit, as directed by the budget agency. The amount of the state
welfare and tuition support allocation for a county for a particular year
is equal to the result determined under STEP FOUR of the following
formula:
STEP ONE: Determine the result of the following:
(A) Separately for 1997, 1998, and 1999 for each taxing
district in the county, determine the result of:
(i) the amount appropriated in the year by the county from
the county's county welfare fund and county welfare
administration fund; divided by
(ii) the total amounts appropriated by all taxing units in the
county for the same year.
(B) Determine the sum of the clause (A) amounts.
(C) Divide the clause (B) amount by three (3).
(D) Determine the result of:
(i) the amount of excise taxes allocated to the taxing district
EH 1121—LS 6566/DI 125 34
that would otherwise be available for distribution to taxing
units in the taxing district; multiplied by
(ii) the clause (C) amount.
STEP TWO: Determine the result of the following:
(A) Separately for 2006, 2007, and 2008 for each taxing
district in the county, determine the result of:
(i) the tax rate imposed in the taxing district for the county's
county medical assistance to wards fund, family and
children's fund, children's psychiatric residential treatment
services fund, county hospital care for the indigent fund,
children with special health care needs county fund, plus, in
the case of Marion County, the tax rate imposed by the
health and hospital corporation that was necessary to raise
thirty-five million dollars ($35,000,000) from all taxing
districts in the county; divided by
(ii) the aggregate tax rate imposed in the taxing district for
the same year.
(B) Determine the sum of the clause (A) amounts.
(C) Divide the clause (B) amount by three (3).
(D) Determine the result of:
(i) the amount of excise taxes allocated to the taxing district
that would otherwise be available for distribution to taxing
units in the taxing district after subtracting the STEP ONE
(D) amount for the same taxing district; multiplied by
(ii) the clause (C) amount.
(E) Determine the sum of the clause (D) amounts for all taxing
districts in the county.
STEP THREE: Determine the result of the following:
(A) Separately for 2006, 2007, and 2008 for each taxing
district in the county, determine the result of:
(i) the tuition support levy tax rate imposed in the taxing
district plus the tax rate imposed by the school corporation
for the school corporation's special education preschool fund
in the district; divided by
(ii) the aggregate tax rate imposed in the taxing district for
the same year.
(B) Determine the sum of the clause (A) amounts.
(C) Divide the clause (B) amount by three (3).
(D) Determine the result of:
(i) the amount of excise taxes allocated to the taxing district
that would otherwise be available for distribution to taxing
units in the taxing district after subtracting the STEP ONE
EH 1121—LS 6566/DI 125 35
(D) amount for the same taxing district; multiplied by
(ii) the clause (C) amount.
(E) Determine the sum of the clause (D) amounts for all taxing
districts in the county.
STEP FOUR: Determine the sum of the STEP ONE, STEP TWO,
and STEP THREE amounts for the county.
If the boundaries of a taxing district change after the years for which a
ratio is calculated under STEP ONE, STEP TWO, or STEP THREE,
the auditor of state comptroller shall establish a ratio for the new
taxing district that reflects the tax rates imposed in the predecessor
taxing districts. If a new taxing district is established after the years for
which a ratio is calculated under STEP ONE, STEP TWO, or STEP
THREE, the auditor of state comptroller shall establish a ratio for the
new taxing district and adjust the ratio for other taxing districts in the
county.
(d) Such determination shall be made from copies of vehicle
registration forms furnished by the bureau of motor vehicles. Prior to
such determination, the county assessor of each county shall, from
copies of registration forms, cause information pertaining to legal
residence of persons owning taxable vehicles to be verified from the
assessor's records, to the extent such verification can be so made. The
assessor shall further identify and verify from the assessor's records the
several taxing units within which such persons reside.
(e) Such verifications shall be done by not later than thirty (30) days
after receipt of vehicle registration forms by the county assessor, and
the assessor shall certify such information to the county auditor for the
auditor's use as soon as it is checked and completed.
SECTION 15. IC 6-6-5.5-19, AS AMENDED BY THE
TECHNICAL CORRECTIONS BILL OF THE 2024 GENERAL
ASSEMBLY, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 19. (a) As used in this section, "assessed value"
means an amount equal to the true tax value of commercial vehicles
that:
(1) are subject to the commercial vehicle excise tax under this
chapter; and
(2) would have been subject to assessment as personal property
on March 1, 2000, under the law in effect before January 1, 2000.
(b) For calendar year 2001, a taxing unit's base revenue shall be
determined as provided in subsection (f). For calendar years that begin
after December 31, 2001, and before January 1, 2009, a taxing unit's
base revenue shall be determined by multiplying the previous year's
base revenue by one hundred five percent (105%). For calendar years
EH 1121—LS 6566/DI 125 36
that begin after December 31, 2008, a taxing unit's base revenue is
equal to:
(1) the amount of commercial vehicle excise tax collected during
the previous state fiscal year; multiplied by
(2) the taxing unit's percentage as determined in subsection (f) for
calendar year 2001.
(c) The amount of commercial vehicle excise tax distributed to the
taxing units of Indiana from the commercial vehicle excise tax fund
shall be determined in the manner provided in this section.
(d) On or before July 1, 2000, each county assessor shall certify to
the county auditor the assessed value of commercial vehicles in every
taxing district.
(e) On or before August 1, 2000, the county auditor shall certify the
following to the department of local government finance:
(1) The total assessed value of commercial vehicles in the county.
(2) The total assessed value of commercial vehicles in each taxing
district of the county.
(f) The department of local government finance shall determine
each taxing unit's base revenue by applying the current tax rate for each
taxing district to the certified assessed value from each taxing district.
The department of local government finance shall also determine the
following:
(1) The total amount of base revenue to be distributed from the
commercial vehicle excise tax fund in 2001 to all taxing units in
Indiana.
(2) The total amount of base revenue to be distributed from the
commercial vehicle excise tax fund in 2001 to all taxing units in
each county.
(3) Each county's total distribution percentage. A county's total
distribution percentage shall be determined by dividing the total
amount of base revenue to be distributed in 2001 to all taxing
units in the county by the total base revenue to be distributed
statewide.
(4) Each taxing unit's distribution percentage. A taxing unit's
distribution percentage shall be determined by dividing each
taxing unit's base revenue by the total amount of base revenue to
be distributed in 2001 to all taxing units in the county. However,
in the event a taxing unit subsequently merges or consolidates
with another taxing unit in the county, the amount of the base
revenue used to calculate the distribution percentage of the
taxing unit resulting from the consolidation or merger under
this subdivision is the combined base revenue distributed in
EH 1121—LS 6566/DI 125 37
2001 to each taxing unit that was subsequently merged or
consolidated to establish the currently existing taxing unit.
(g) The department of local government finance shall certify each
taxing unit's base revenue and distribution percentage for calendar year
2001 to the auditor of state on or before September 1, 2000.
(h) The auditor of state comptroller shall keep permanent records
of each taxing unit's base revenue and distribution percentage for
calendar year 2001 for purposes of determining the amount of money
each taxing unit in Indiana is entitled to receive in calendar years that
begin after December 31, 2001.
SECTION 16. IC 6-9-58 IS ADDED TO THE INDIANA CODE AS
A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2024]:
Chapter 58. Hammond Food and Beverage Tax
Sec. 1. This chapter applies to the city of Hammond.
Sec. 2. The definitions in IC 6-9-12-1 apply throughout this
chapter.
Sec. 3. (a) The fiscal body of the city may adopt an ordinance to
impose an excise tax, known as the city food and beverage tax, on
transactions described in section 4 of this chapter. The fiscal body
of the city may adopt an ordinance under this subsection only after
the fiscal body has previously held at least one (1) separate public
hearing in which a discussion of the proposed ordinance to impose
the city food and beverage tax is the only substantive issue on the
agenda for the public hearing.
(b) If the city fiscal body adopts an ordinance under subsection
(a), the city fiscal body shall immediately send a certified copy of
the ordinance to the department of state revenue.
(c) If the city fiscal body adopts an ordinance under subsection
(a), the city food and beverage tax applies to transactions that
occur after the later of the following:
(1) The day specified in the ordinance.
(2) The last day of the month that succeeds the month in
which the ordinance is adopted.
Sec. 4. (a) Except as provided in subsection (c), a tax imposed
under section 3 of this chapter applies to a transaction in which
food or beverage is furnished, prepared, or served:
(1) for consumption at a location or on equipment provided by
a retail merchant;
(2) in the city; and
(3) by a retail merchant for consideration.
(b) Transactions described in subsection (a)(1) include
EH 1121—LS 6566/DI 125 38
transactions in which food or beverage is:
(1) served by a retail merchant off the merchant's premises;
(2) sold in a heated state or heated by a retail merchant;
(3) made of two (2) or more food ingredients, mixed or
combined by a retail merchant for sale as a single item (other
than food that is only cut, repackaged, or pasteurized by the
seller, and eggs, fish, meat, poultry, and foods containing these
raw animal foods requiring cooking by the consumer as
recommended by the federal Food and Drug Administration
in chapter 3, subpart 3-401.11 of its Food Code so as to
prevent food borne illnesses); or
(4) sold with eating utensils provided by a retail merchant,
including plates, knives, forks, spoons, glasses, cups, napkins,
or straws (for purposes of this subdivision, a plate does not
include a container or package used to transport food).
(c) The city food and beverage tax does not apply to the
furnishing, preparing, or serving of a food or beverage in a
transaction that is exempt, or to the extent the transaction is
exempt, from the state gross retail tax imposed by IC 6-2.5.
Sec. 5. The city food and beverage tax rate:
(1) must be imposed in an increment of twenty-five
hundredths percent (0.25%); and
(2) may not exceed one percent (1%);
of the gross retail income received by the merchant from the food
or beverage transaction described in section 4 of this chapter. For
purposes of this chapter, the gross retail income received by the
retail merchant from a transaction does not include the amount of
tax imposed on the transaction under IC 6-2.5.
Sec. 6. A tax imposed under this chapter is imposed, paid, and
collected in the same manner that the state gross retail tax is
imposed, paid, and collected under IC 6-2.5. However, the return
to be filed with the payment of the tax imposed under this chapter
may be made on a separate return or may be combined with the
return filed for the payment of the state gross retail tax, as
prescribed by the department of state revenue.
Sec. 7. The amounts received from the tax imposed under this
chapter shall be paid monthly by the treasurer of state to the city
fiscal officer upon warrants issued by the state comptroller.
Sec. 8. (a) If a tax is imposed under section 3 of this chapter by
the city, the city fiscal officer shall establish a food and beverage
tax receipts fund.
(b) The city fiscal officer shall deposit in the fund all amounts
EH 1121—LS 6566/DI 125 39
received under this chapter.
(c) Money earned from the investment of money in the fund
becomes a part of the fund.
Sec. 9. Money in the food and beverage tax receipts fund must
be used by the city only for the following purposes:
(1) Development related to the northern Indiana commuter
transportation district's construction of the West Lake
Corridor Commuter Rail Project.
(2) Development in the city's downtown area, including the
purchase of land for development in the city's downtown area.
(3) The expansion and improvement of the Hammond
Sportsplex and Community Center, including the purchase of
land for the expansion and improvement of the Hammond
Sportsplex and Community Center.
(4) The expansion and improvement of the Pavilion at Wolf
Lake Memorial Park, including the purchase of land for the
expansion and improvement of the Pavilion at Wolf Lake
Memorial Park.
(5) The pledge of money under IC 5-1-14-4 for bonds, leases,
or other obligations incurred for a purpose described in
subdivisions (1) through (4).
Revenue derived from the imposition of a tax under this chapter
may be treated by the city as additional revenue for the purpose of
fixing its budget for the budget year during which the revenues are
to be distributed to the city.
Sec. 10. With respect to obligations for which a pledge has been
made under section 9 of this chapter, the general assembly
covenants with the holders of the obligations that this chapter will
not be repealed or amended in a manner that will adversely affect
the imposition or collection of the tax imposed under this chapter
if the payment of any of the obligations is outstanding.
Sec. 11. (a) If the city imposes the tax authorized by this chapter,
the tax terminates on July 1, 2047.
(b) This chapter expires July 1, 2047.
SECTION 17. IC 6-9-59 IS ADDED TO THE INDIANA CODE AS
A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2024]:
Chapter 59. Cicero Food and Beverage Tax
Sec. 1. This chapter applies to the town of Cicero.
Sec. 2. The definitions in IC 6-9-12-1 apply throughout this
chapter.
Sec. 3. (a) The fiscal body of the town may adopt an ordinance
EH 1121—LS 6566/DI 125 40
to impose an excise tax, known as the town food and beverage tax,
on transactions described in section 4 of this chapter. The fiscal
body of the town may adopt an ordinance under this subsection
only after the fiscal body has previously held at least one (1)
separate public hearing in which a discussion of the proposed
ordinance to impose the town food and beverage tax is the only
substantive issue on the agenda for the public hearing.
(b) If the town fiscal body adopts an ordinance under subsection
(a), the town fiscal body shall immediately send a certified copy of
the ordinance to the department of state revenue.
(c) If the town fiscal body adopts an ordinance under subsection
(a), the town food and beverage tax applies to transactions that
occur after the later of the following:
(1) The day specified in the ordinance.
(2) The last day of the month that succeeds the month in
which the ordinance is adopted.
Sec. 4. (a) Except as provided in subsection (c), a tax imposed
under section 3 of this chapter applies to a transaction in which
food or beverage is furnished, prepared, or served:
(1) for consumption at a location or on equipment provided by
a retail merchant;
(2) in the town; and
(3) by a retail merchant for consideration.
(b) Transactions described in subsection (a)(1) include
transactions in which food or beverage is:
(1) served by a retail merchant off the merchant's premises;
(2) sold in a heated state or heated by a retail merchant;
(3) made of two (2) or more food ingredients, mixed or
combined by a retail merchant for sale as a single item (other
than food that is only cut, repackaged, or pasteurized by the
seller, and eggs, fish, meat, poultry, and foods containing these
raw animal foods requiring cooking by the consumer as
recommended by the federal Food and Drug Administration
in chapter 3, subpart 3-401.11 of its Food Code so as to
prevent food borne illnesses); or
(4) sold with eating utensils provided by a retail merchant,
including plates, knives, forks, spoons, glasses, cups, napkins,
or straws (for purposes of this subdivision, a plate does not
include a container or package used to transport food).
(c) The town food and beverage tax does not apply to the
furnishing, preparing, or serving of a food or beverage in a
transaction that is exempt, or to the extent the transaction is
EH 1121—LS 6566/DI 125 41
exempt, from the state gross retail tax imposed by IC 6-2.5.
Sec. 5. The town food and beverage tax rate:
(1) must be imposed in an increment of twenty-five
hundredths percent (0.25%); and
(2) may not exceed one percent (1%);
of the gross retail income received by the merchant from the food
or beverage transaction described in section 4 of this chapter. For
purposes of this chapter, the gross retail income received by the
retail merchant from a transaction does not include the amount of
tax imposed on the transaction under IC 6-2.5.
Sec. 6. A tax imposed under this chapter is imposed, paid, and
collected in the same manner that the state gross retail tax is
imposed, paid, and collected under IC 6-2.5. However, the return
to be filed with the payment of the tax imposed under this chapter
may be made on a separate return or may be combined with the
return filed for the payment of the state gross retail tax, as
prescribed by the department of state revenue.
Sec. 7. The amounts received from the tax imposed under this
chapter shall be paid monthly by the treasurer of state to the town
fiscal officer upon warrants issued by the state comptroller.
Sec. 8. (a) If a tax is imposed under section 3 of this chapter by
the town, the town fiscal officer shall establish a food and beverage
tax receipts fund.
(b) The town fiscal officer shall deposit in the fund all amounts
received under this chapter.
(c) Money earned from the investment of money in the fund
becomes a part of the fund.
Sec. 9. Money in the food and beverage tax receipts fund must
be used by the town only for the following purposes:
(1) To reduce the town's property tax levy for a particular
year at the discretion of the town, but this use does not reduce
the maximum permissible ad valorem property tax levy under
IC 6-1.1-18.5 for the town.
(2) For economic development purposes, including the pledge
of money under IC 5-1-14-4 for bonds, leases, or other
obligations for economic development purposes.
(3) To create new parks and amenities, and to expand and
enhance existing parks and amenities.
(4) To upgrade, expand, and otherwise improve the town's
water, sanitary sewer, and stormwater utilities.
Revenue derived from the imposition of a tax under this chapter
may be treated by the town as additional revenue for the purpose
EH 1121—LS 6566/DI 125 42
of fixing its budget for the budget year during which the revenues
are to be distributed to the town.
Sec. 10. With respect to obligations for which a pledge has been
made under section 9 of this chapter, the general assembly
covenants with the holders of the obligations that this chapter will
not be repealed or amended in a manner that will adversely affect
the imposition or collection of the tax imposed under this chapter
if the payment of any of the obligations is outstanding.
Sec. 11. (a) If the town imposes the tax authorized by this
chapter, the tax terminates on July 1, 2046.
(b) This chapter expires July 1, 2046.
SECTION 18. [EFFECTIVE JULY 1, 2024] (a) The definitions
used in IC 6-3.6-2 apply throughout this SECTION.
(b) As used in this SECTION, "district" refers to the
Highlander Fire Protection District located in Floyd County
established by an ordinance adopted by the Floyd County
commissioners on December 30, 2022.
(c) As used in this SECTION, "Greenville FPD" refers to the
Greenville Township Fire Protection District located in Floyd
County as it existed prior to its merger with the Lafayette FPD.
(d) As used in this SECTION, "Lafayette FPD" refers to the
Lafayette Township Fire Protection District located in Floyd
County as it existed prior to its merger with the Greenville FPD.
(e) Notwithstanding IC 6-3.6-6, as amended by this act, and
IC 6-3.6-9-15, the department of local government finance shall
include with its certified distribution under IC 6-3.6-9-5 for Floyd
County in 2025 and for the calculations of any potential
supplemental distribution under IC 6-3.6-9-15 for 2026 the
following adjustments:
(1) An amount equal to the combined distribution that would
have been distributed to the Greenville FPD and the Lafayette
FPD in 2024, but for their elimination resulting from the
merger to establish the district, shall be added to the
distribution to the district.
(2) The distribution for each applicable civil taxing unit and
school corporation in Floyd County, excluding the district,
shall be reduced by an amount in accordance with
IC 6-3.6-9-6 that equals the proportionate share of the
amount of local income tax received in 2024 under IC 6-3.6-6,
before its amendment by this act, of the combined distribution
that would have been distributed to the Greenville FPD and
the Lafayette FPD in 2024, but for their elimination resulting
EH 1121—LS 6566/DI 125 43
from the merger to establish the district.
(f) Notwithstanding IC 6-1.1-18.5, the department of local
government finance shall make a one (1) time temporary
adjustment to the maximum levies in accordance with the
adjustments described in subsection (e) that may not be included
in the calculation of a maximum levy in a subsequent year of the
applicable taxing units.
(g) This SECTION expires January 1, 2027.".
Renumber all SECTIONS consecutively.
and when so amended that said bill do pass.
(Reference is to HB 1121 as introduced.)
THOMPSON
Committee Vote: yeas 19, nays 5.
_____
HOUSE MOTION
Mr. Speaker: I move that House Bill 1121 be amended to read as
follows:
Page 6, line 41, after "boundaries of" insert ", or directly serving
or benefiting,".
Page 6, line 42, delete "city." and insert "city, as provided under
IC 36-7-41.2.".
Page 7, line 6, after "revenue" insert ":
(1)".
Page 7, line 6, delete "fund." and insert "fund; and
(2) may be used only by the Mile Square improvement and
services project board established by IC 36-7-41.2-3 to finance
improvement and services projects located within, or directly
serving or benefiting, the Mile Square area of the consolidated
city as provided under IC 36-7-41.2.".
Page 21, between lines 32 and 33, begin a new paragraph and insert:
"SECTION 18. IC 36-7-41.2 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]:
Chapter 41.2. Mile Square Improvement and Services Projects
Board
Sec. 1. As used in this chapter, "board" refers to the Mile
EH 1121—LS 6566/DI 125 44
Square improvement and services projects board established under
section 3 of this chapter.
Sec. 2. As used in this chapter, "improvement and services
projects" has the meaning set forth in IC 6-3.6-6-2.4(b).
Sec. 3. (a) If the adopting body adopts an ordinance under
IC 6-3.6-6-2.4, the Mile Square improvement and services projects
board is established. The board consists of eight (8) members to be
appointed as follows:
(1) Two (2) members appointed by the legislative body of the
consolidated city.
(2) Two (2) members appointed by the mayor of the
consolidated city.
(3) Four (4) members appointed by the governor. One (1) of
the members appointed under this subdivision must represent
the business community and own real property located within
the Mile Square area of the consolidated city. The president
pro tempore of the senate and the speaker of the house of
representatives may each make one (1) recommendation to
the governor concerning the appointment of a member under
this subdivision.
A majority of the board members must own real property within
the Mile Square area of the consolidated city. Each board member
shall serve a term of one (1) year from the first day of January
after the board member's appointment and until the board
member's successor is appointed and qualified.
(b) A proposal before the board must receive at least five (5)
votes to authorize action by the board.
(c) Downtown Indy, Inc., or its successor organization, shall
provide staff support to the board.
Sec. 4. The board may use revenues generated by the tax rate
imposed under IC 6-3.6-6-2.4 to finance improvement and services
projects located within, or directly serving or benefiting, the Mile
Square area of the consolidated city.
Sec. 5. The board shall comply with IC 36-1-12 when
contracting for public works.
Sec. 6. The board may enter into lease or contractual
agreements, or both, with governmental, nonprofit, or other
private entities for the purpose of carrying out improvement and
services projects.
Sec. 7. If the ordinance adopted under IC 6-3.6-6-2.4 is repealed,
the assets and liabilities of the board shall be disposed of in the
manner determined by the fiscal body of the consolidated city.
EH 1121—LS 6566/DI 125 45
However, liabilities incurred by the board are not an obligation of
the consolidated city and are payable only from the revenues
generated by the tax rate imposed under IC 6-3.6-6-2.4.
Sec. 8. The board shall submit an annual report to the fiscal
body of the consolidated city not later than June 30 of each year.
The report must summarize the board's activities and expenditures
during the preceding calendar year.
Sec. 9. Subject to section 10 of this chapter, after approval of the
fiscal body of the consolidated city, the board may issue revenue
bonds payable from revenues generated by the tax rate imposed
under IC 6-3.6-6-2.4 to finance an improvement and services
project.
Sec. 10. If the board fails to comply with a requirement under
this chapter, the board may not issue revenue bonds.".
Renumber all SECTIONS consecutively.
(Reference is to HB 1121 as printed January 25, 2024.)
THOMPSON
_____
COMMITTEE REPORT
Madam President: The Senate Committee on Tax and Fiscal Policy,
to which was referred House Bill No. 1121, has had the same under
consideration and begs leave to report the same back to the Senate with
the recommendation that said bill be AMENDED as follows:
Page 6, delete lines 8 through 42.
Page 7, delete lines 1 through 16.
Page 7, line 31, delete "fund." and insert "fund and used only for
the operating expenses of the acute care hospital located in the
county.".
Page 8, delete line 42.
Page 9, delete lines 1 through 3.
Page 9, line 4, reset in roman "(A)".
Page 9, line 4, delete "(B)".
Page 9, line 8, delete "(C)" and insert "(B)".
Page 9, line 12, delete "(D)" and insert "(C)".
Page 9, line 16, delete "(E)" and insert "(D)".
Page 11, between lines 2 and 3, begin a new paragraph and insert:
"SECTION 11. IC 6-3.6-7-17, AS AMENDED BY P.L.38-2021,
SECTION 46, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
EH 1121—LS 6566/DI 125 46
JULY 1, 2024]: Sec. 17. (a) This section applies only to Perry County.
(b) Perry County possesses unique governmental and economic
development challenges due to:
(1) underemployment in relation to similarly situated counties and
the loss of a major manufacturing business; and
(2) overcrowding of the county jail, the costs associated with
housing the county's inmates outside the county, and the potential
unavailability of additional housing for inmates outside the
county.
The use of a tax under this section is necessary for the county to
provide adequate jail capacity in the county and to maintain low
property tax rates essential to economic development. The use of a tax
under this section for the purposes described in this section promotes
these purposes.
(c) The county fiscal body may impose a tax on the adjusted gross
income of local taxpayers at a tax rate that does not exceed the lesser
of the following:
(1) Five-tenths percent (0.5%).
(2) The rate necessary to carry out the purposes described in this
section.
(d) Revenue from a tax imposed under this section may be used only
for the following purposes:
(1) To finance, construct, acquire, improve, renovate, remodel, or
equip the county jail and related buildings and parking facilities,
including costs related to the demolition of existing buildings, the
acquisition of land, and any other reasonably related costs.
(2) To repay bonds issued or leases entered into for constructing,
acquiring, improving, renovating, remodeling, and equipping the
county jail and related buildings and parking facilities, including
costs related to the demolition of existing buildings, the
acquisition of land, and any other reasonably related costs.
(e) The tax imposed under this section may be imposed only until
the last of the following dates:
(1) The date on which the purposes described in subsection (d)(1)
are completed.
(2) The date on which the last of any bonds issued (including any
refunding bonds) or leases described in subsection (d)(2) are fully
paid.
The term of the bonds issued (including any refunding bonds) or a
lease entered into under subsection (d)(2) may not exceed twenty-five
(25) years.
(f) Funds accumulated from a tax under this section after:
EH 1121—LS 6566/DI 125 47
(1) the redemption of the bonds issued; or
(2) the final payment of lease rentals due under a lease entered
into under this section;
shall be transferred to the county jail operations fund to be used for
financing the maintenance and operations of the Perry County
detention center. a county capital project fund to be used to finance
capital projects within Perry County.
SECTION 12. IC 6-3.6-7-28 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 28. (a) This section applies to Grant County
and only if the county council repeals provisions of its local income
tax ordinance providing that under IC 6-3.6-10-2(7) one-hundredth
of one percent (0.01%) of the county's special purpose rate revenue
is used to fund the Grant County Economic Growth Council, Inc.
(b) The county council may, by ordinance, determine that
additional local income tax revenue is needed in the county to do
the following:
(1) Finance, construct, acquire, improve, renovate, and equip
the county jail, including costs related to the demolition of
existing buildings, the acquisition of land, and any other
reasonably related costs.
(2) Repay bonds issued or leases entered into for the purposes
described in subdivision (1)
(c) If the county council makes the determination set forth in
subsection (b), the county council may impose a tax on the adjusted
gross income of local taxpayers at a tax rate that does not exceed
the lesser of the following:
(1) Five-tenths percent (0.5%).
(2) The rate necessary to carry out the purposes described in
this section.
The tax rate may not be greater than the rate necessary to pay for
the purposes described in subsection (b).
(d) The tax rate used to pay for the purposes described in
subsection (b)(1) and (b)(2) may be imposed only until the latest of
the following dates:
(1) The date on which the financing, construction, acquisition,
improvement, renovation, and equipping of the facilities as
described in subsection (b) are completed.
(2) The date on which the last of any bonds issued (including
refunding bonds) or leases entered into to finance the
construction, acquisition, improvement, renovation, and
equipping of the facilities described in subsection (b) are fully
EH 1121—LS 6566/DI 125 48
paid.
(3) The date on which an ordinance adopted under subsection
(c) is rescinded.
(e) The tax rate under this section may be imposed beginning in
the year following the year the ordinance is adopted and until the
date on which the ordinance adopted under this section is
rescinded.
(f) The term of a bond issued (including any refunding bond) or
a lease entered into under subsection (b) may not exceed
twenty-five (25) years.
(g) The county treasurer shall establish a county jail revenue
fund to be used only for the purposes described in this section.
Local income tax revenues derived from the tax rate imposed
under this section shall be deposited in the county jail revenue
fund.
(h) Local income tax revenues derived from the tax rate
imposed under this section:
(1) may be used only for the purposes described in this
section;
(2) may not be considered by the department of local
government finance in determining the county's maximum
permissible property tax levy limit under IC 6-1.1-18.5; and
(3) may be pledged to the repayment of bonds issued or leases
entered into for the purposes described in subsection (b).
(i) Grant County possesses unique governmental challenges and
opportunities due to deficiencies in the current county jail. The use
of local income tax revenues as provided in this section is necessary
for the county to provide adequate jail capacity in the county and
to maintain low property tax rates essential to economic
development. The use of local income tax revenues as provided in
this section to pay any bonds issued or leases entered into to
finance the construction, acquisition, improvement, renovation,
and equipping of the facilities described in subsection (b), rather
than the use of property taxes, promotes those purposes.
(j) Money accumulated from the local income tax rate imposed
under this section after the termination of the tax under this
section shall be transferred to the county rainy day fund under
IC 36-1-8-5.1.".
Page 11, delete lines 10 through 11.
Page 11, line 12, reset in roman "(A)".
Page 11, line 12, delete "(B)".
Page 11, line 14, delete "(C)" and insert "(B)".
EH 1121—LS 6566/DI 125 49
Page 11, line 16, delete "(D)" and insert "(C)".
Page 16, between lines 39 and 40, begin a new paragraph and insert:
"SECTION 18. IC 6-9-53-3, AS ADDED BY P.L.290-2019,
SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 3. (a) The fiscal body of the county may levy a tax
on every person engaged in the business of renting or furnishing, for
periods of less than thirty (30) days, any room or rooms, lodgings, or
accommodations in any:
(1) hotel;
(2) motel;
(3) boat motel;
(4) inn;
(5) college or university memorial union;
(6) college or university residence hall or dormitory; or
(7) tourist cabin;
located in the county.
(b) The tax does not apply to gross income received in a transaction
in which:
(1) a student rents lodgings in a college or university residence
hall while that student participates in a course of study for which
the student receives college credit from a college or university
located in the county; or
(2) a person rents a room, lodging, or accommodations for a
period of thirty (30) days or more.
(c) Subject to subsection (d), the tax may not exceed the rate of six
eight percent (6%) (8%) on the gross retail income derived from
lodging income only and is in addition to the state gross retail tax
imposed under IC 6-2.5.
(d) Notwithstanding subsection (c), the tax rate imposed by the
fiscal body of Knox County under this chapter may not exceed five
seven percent (5%) (7%) if either of the following apply:
(1) The Grouseland Foundation, Inc., is dissolved.
(2) Tours of the territorial mansion and presidential site of
William Henry Harrison are no longer provided.
(e) The tax shall be imposed, paid, and collected in the same manner
as the state gross retail tax is imposed, paid, and collected under
IC 6-2.5.
(f) This subsection applies only if the fiscal body increases the
tax rate to more than six percent (6%). The portion of the tax rate
that exceeds six percent (6%) expires on December 31, 2045.
SECTION 19. IC 6-9-53-5, AS AMENDED BY THE TECHNICAL
CORRECTIONS BILL OF THE 2024 GENERAL ASSEMBLY, IS
EH 1121—LS 6566/DI 125 50
AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2024]:
Sec. 5. The amounts received from the tax imposed under this chapter
shall be paid monthly by the treasurer of state upon warrants issued by
the auditor of state comptroller as follows:
(1) If the tax rate imposed under section 3 of this chapter is five
seven percent (5%) (7%) or less, all amounts received from the
tax shall be paid to the county treasurer.
(2) If the tax rate imposed under section 3 of this chapter is more
than five seven percent (5%), (7%), amounts received from the
tax shall be allocated and paid as follows:
(A) The amount received from the tax as a result of a five
seven percent (5%) (7%) rate shall be allocated and paid to
the county treasurer.
(B) The amount received from the tax that exceeds the amount
under clause (A) shall be allocated and paid to the Grouseland
Foundation, Inc.".
Page 21, line 27, delete "stormwater" and insert "storm water".
Page 21, delete lines 41 through 42.
Delete page 22.
Page 23, delete lines 1 through 18.
Page 23, line 33, delete "certified".
Renumber all SECTIONS consecutively.
and when so amended that said bill do pass.
(Reference is to HB 1121 as reprinted January 30, 2024.)
HOLDMAN, Chairperson
Committee Vote: Yeas 14, Nays 0.
_____
SENATE MOTION
Madam President: I move that Engrossed House Bill 1121 be
amended to read as follows:
Replace the effective dates in SECTIONS 17 through 18 with
"[EFFECTIVE UPON PASSAGE]".
Page 19, line 8, after "IC 6-2.5." insert "However, if the county
fiscal body increases the tax rate to more than six percent (6%),
the portion of the tax rate that exceeds six percent (6%) shall
expire on December 31, 2045.".
EH 1121—LS 6566/DI 125 51
Page 19, line 10, reset in roman "five".
Page 19, line 11, delete "seven".
Page 19, line 11, reset in roman "(5%)".
Page 19, line 11, delete "(7%)" and insert ", or, if the county fiscal
body increases the tax rate to more than six percent (6%) under
subsection (c), may not exceed seven percent (7%),".
Page 19, delete lines 18 through 20.
Page 19, delete lines 27 through 38, begin a new line block indented
and insert:
"(1) If the tax rate imposed under section 3 of this chapter is:
(A) five percent (5%) or less; or
(B) during the period that an increase under section 3(c) of
this chapter is in effect, seven percent (7%) or less;
all amounts received from the tax shall be paid to the county
treasurer.
(2) If the tax rate imposed under section 3 of this chapter is more
than five percent (5%), or, during the period that an increase
under section 3(c) of this chapter is in effect, more than seven
percent (7%), amounts received from the tax shall be allocated
and paid as follows:
(A) The amount received from the tax as a result of a five
percent (5%) rate, or, during the period that an increase
under section 3(c) of this chapter is in effect, as a result of
a seven percent (7%) rate, shall be allocated and paid to the
county treasurer.
(B) The amount received from the tax that exceeds the amount
under clause (A) shall be allocated and paid to the Grouseland
Foundation, Inc.".
(Reference is to EHB 1121 as printed February 28, 2024.)
HOLDMAN
EH 1121—LS 6566/DI 125