LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6566 NOTE PREPARED: Dec 21, 2023
BILL NUMBER: HB 1121 BILL AMENDED:
SUBJECT: Local Income Taxes.
FIRST AUTHOR: Rep. Thompson BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: GENERAL IMPACT: Local
DEDICATED
FEDERAL
Summary of Legislation: This bill extends the expiration of provisions concerning a county with a single
voting bloc and the allocation of votes for a local income tax council. It specifies the amount of revenue from
a local income tax rate imposed for correctional facilities and rehabilitation facilities in a county that may
be used for operating expenses of those facilities.
Effective Date: Upon passage; July 1, 2023 (retroactive).
Explanation of State Expenditures:
Explanation of State Revenues:
Explanation of Local Expenditures: Local Income Tax Councils: The bill’s provisions extend the current
expiration date by one year - from May 31, 2024, to May 31, 2025 - for those counties where the county
adopting body is the local income tax council and the county has a single voting bloc. These provisions
should not have any significant impact for the local units since they’re simply extending current functions
already in place.
Explanation of Local Revenues: Correctional Facilities LIT: The bill’s provisions clarify the percentage
of revenue generated from a county’s LIT rate imposed for correctional facilities and rehabilitation facilities
in a county that may be used for operating expenses of those facilities. Under current law, the amount of a
county’s correctional facilities LIT revenue that can be used towards operating expenses is equal to the
amount of revenue attributable to 0.2% of the tax rate. Under this bill’s provisions, if an increment of the tax
rate does not exceed 0.2%, 100% of the revenue collected from the total tax rate can be used towards
HB 1121 1 operating expenses. This bill’s provisions will allow those counties that impose a LIT rate for correctional
and rehabilitation facilities to use more of the revenue generated from the rate towards operational costs at
these facilities (as opposed to capital construction costs and debt costs associated with the construction of
the facilities).
The table shown at the end of this fiscal note provides a list of counties that have imposed a LIT rate in CY
2024 for correctional and rehabilitation facilities. The table also includes the CY 2024 certified distributions
amounts, certified rates, and estimated amounts of revenue that could be used toward operating expenses
under the current statute (Baseline) and under this bill’s provisions (Policy). A difference (between Policy
vs. Baseline amounts) column is also included.
State Agencies Affected:
Local Agencies Affected: Local Income Tax Councils; Counties.
Information Sources: State Budget Agency Estimated CY 2024 Certified Distributions (Certified November
28, 2023): https://www.in.gov/sba/files/2024-Certification-Calculations-2.pdf.
Fiscal Analyst: James Johnson, 317-232-9869.
CY 2024 Local Income Tax: Correctional Facilities Distributions Amounts & Rates
HB 1121 2 County Certified
Distributions
Certified RateBaseline: Allowable
Amount for Operating
Expenses
Policy: Allowable
Amount for Operating
Expenses
Difference:
Policy vs.
Baseline
Allen $16,294,833 0.1100% $3,585 $16,294,833 $16,291,248
Bartholomew $5,938,249 0.2000% $2,375 $5,938,249 $5,935,874
Boone $8,986,228 0.2000% $3,594 $8,986,228 $8,982,634
Carroll $1,126,768 0.2000% $451 $1,126,768 $1,126,317
Cass $1,700,561 0.2000% $680 $1,700,561 $1,699,881
Clinton $1,607,429 0.2000% $643 $1,607,429 $1,606,786
Dearborn $3,090,722 0.2000% $1,236 $3,090,722 $3,089,486
DeKalb $2,042,601 0.1300% $531 $2,042,601 $2,042,070
Dubois $3,288,224 0.2000% $1,315 $3,288,224 $3,286,909
Fayette $926,083 0.2000% $370 $926,083 $925,713
Floyd $5,850,783 0.2000% $2,340 $5,850,783 $5,848,443
Fulton $1,019,815 0.2000% $408 $1,019,815 $1,019,407
Gibson $2,161,342 0.2000% $865 $2,161,342 $2,160,477
Greene $1,523,400 0.2000% $609 $1,523,400 $1,522,791
Hancock $6,085,164 0.2000% $2,434 $6,085,164 $6,082,730
Hendricks $13,614,448 0.2000% $5,446 $13,614,448 $13,609,003
Henry $2,252,765 0.2000% $901 $2,252,765 $2,251,864
Howard $4,447,663 0.2000% $1,779 $4,447,663 $4,445,884
Huntington $2,215,414 0.2000% $886 $2,215,414 $2,214,528
Jackson $2,357,877 0.2000% $943 $2,357,877 $2,356,934
Jefferson $2,594,555 0.3000% $1,557 $1,729,703 $1,728,147
Johnson $11,830,592 0.2000% $4,732 $11,830,592 $11,825,860
Knox $1,967,254 0.2000% $787 $1,967,254 $1,966,467
Madison $6,282,278 0.2000% $2,513 $6,282,278 $6,279,765
Monroe $424,260 0.0100% $8 $424,260 $424,252
Morgan $860,433 0.0400% $69 $860,433 $860,364
Owen $985,717 0.2000% $394 $985,717 $985,323
Putnam $1,870,558 0.2000% $748 $1,870,558 $1,869,810
Ripley $1,676,952 0.2000% $671 $1,676,952 $1,676,281
Sullivan $952,188 0.2000% $381 $952,188 $951,807
Vanderburgh $2,726,363 0.0500% $273 $2,726,363 $2,726,091
Vigo $5,265,507 0.2000% $2,106 $5,265,507 $5,263,401
Wabash $1,956,048 0.2000% $782 $1,956,048 $1,955,266
Wells $614,635 0.0700% $86 $614,635 $614,549
Whitley $2,300,473 0.2000% $920 $2,300,473 $2,299,553
HB 1121 3