Indiana 2024 Regular Session

Indiana House Bill HB1134 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	HOUSE BILL No. 1134
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 6-3.6-6-21.3; IC 6-5.5-8-2; IC 6-6-5-10;
7	7	IC 6-6-5.5-19.
8	8	Synopsis: Local income tax. Provides that, for the purpose of
9	9	distributing the local income tax (LIT), if two or more school
10	10	corporations or civil taxing units merge or consolidate to form a single
11	11	school corporation or civil taxing unit, the school corporation or civil
12	12	taxing unit is entitled to the combined pro rata distribution of the LIT
13	13	revenue allocated to each applicable school corporation or civil taxing
14	14	unit in existence on January 1 of the immediately preceding calendar
15	15	year prior to the merger or consolidation. Provides that the department
16	16	of local government finance shall make certain adjustments pertaining
17	17	to the distribution of LIT for Floyd County in 2025, which provide that
18	18	the Highlander Fire Protection District (district) shall receive an
19	19	amount equal to the combined distribution that would have been
20	20	distributed to the Greenville Fire Protection District (FPD) and the
21	21	Lafayette Fire Protection District (FPD) in 2024, but for their
22	22	elimination resulting from the merger to establish the district. Requires
23	23	corresponding adjustments in 2025 to reduce the distribution for each
24	24	applicable civil taxing unit and school corporation in Floyd County,
25	25	excluding the district, by an amount that equals the proportionate share
26	26	of the amount of LIT received in 2024 of the combined distribution that
27	27	would have been distributed to the Greenville FPD and the Lafayette
28	28	FPD in 2024, but for their elimination. Provides, for purposes of
29	29	calculating distributions of the financial institutions tax to local taxing
30	30	units, how to calculate distributions for a taxing unit that did not
31	31	receive distributions in 2012 because the unit was subsequently
32	32	established from the merger or consolidation of two or more taxing
33	33	units that received distributions from the financial institutions tax fund
34	34	(Continued next page)
35	35	Effective: July 1, 2024; January 1, 2025.
36	36	Clere
37	37	January 8, 2024, read first time and referred to Committee on Ways and Means.
38	38	2024 IN 1134—LS 6854/DI 116 Digest Continued
39	39	in 2012. Provides, for purposes of calculating qualified distributions of
40	40	the commercial motor vehicle excise tax to local taxing units, how to
41	41	calculate base revenue distributions for a taxing unit that did not
42	42	receive a base revenue distribution in 2001 because the taxing unit was
43	43	subsequently established from the merger or consolidation of two or
44	44	more taxing units that received base revenue distributions in 2001.
45	45	Provides that, for purposes of determining the apportionment or
46	46	distribution of the motor vehicle excise tax, that the county auditor may
47	47	make adjustments to reflect the merger or consolidation of two or more
48	48	taxing units. Makes technical corrections.
49	49	2024 IN 1134—LS 6854/DI 1162024 IN 1134—LS 6854/DI 116 Introduced
50	50	Second Regular Session of the 123rd General Assembly (2024)
51	51	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
52	52	Constitution) is being amended, the text of the existing provision will appear in this style type,
53	53	additions will appear in this style type, and deletions will appear in this style type.
54	54	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
55	55	provision adopted), the text of the new provision will appear in this style type. Also, the
56	56	word NEW will appear in that style type in the introductory clause of each SECTION that adds
57	57	a new provision to the Indiana Code or the Indiana Constitution.
58	58	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
59	59	between statutes enacted by the 2023 Regular Session of the General Assembly.
60	60	HOUSE BILL No. 1134
61	61	A BILL FOR AN ACT to amend the Indiana Code concerning
62	62	taxation.
63	63	Be it enacted by the General Assembly of the State of Indiana:
64	64	1 SECTION 1. IC 6-3.6-6-21.3 IS ADDED TO THE INDIANA
65	65	2 CODE AS A NEW SECTION TO READ AS FOLLOWS
66	66	3 [EFFECTIVE JULY 1, 2024]: Sec. 21.3. (a) This section:
67	67	4 (1) does not apply to:
68	68	5 (A) distributions made under this chapter to a civil taxing
69	69	6 unit for fire protection services within a fire protection
70	70	7 territory established under IC 36-8-19; or
71	71	8 (B) distributions of revenue under section 9 of this chapter;
72	72	9 and
73	73	10 (2) applies only to the following:
74	74	11 (A) Any allocation or distribution of revenue under section
75	75	12 3(a)(2) of this chapter that is made on the basis of property
76	76	13 tax levies in counties that formerly imposed a tax under
77	77	14 IC 6-3.5-1.1 (before its repeal on January 1, 2017).
78	78	15 (B) Any allocation or distribution of revenue under section
79	79	2024 IN 1134—LS 6854/DI 116 2
80	80	1 3(a)(3) of this chapter that is made on the basis of property
81	81	2 tax levies in counties that formerly imposed a tax under
82	82	3 IC 6-3.5-6 (before its repeal on January 1, 2017).
83	83	4 (b) Subject to subsection (a), if two (2) or more:
84	84	5 (1) school corporations; or
85	85	6 (2) civil taxing units;
86	86	7 of an adopting county merge or consolidate to form a single school
87	87	8 corporation or civil taxing unit, the school corporation or civil
88	88	9 taxing unit that is in existence on January 1 of the current year is
89	89	10 entitled to the combined pro rata distribution of the revenue under
90	90	11 section 3(a)(2) or 3(a)(3) of this chapter (as appropriate) allocated
91	91	12 to each applicable school corporation or civil taxing unit in
92	92	13 existence on January 1 of the immediately preceding calendar year
93	93	14 prior to the merger or consolidation.
94	94	15 (c) The department of local government finance shall make
95	95	16 adjustments to civil taxing units in accordance with
96	96	17 IC 6-1.1-18.5-7.
97	97	18 SECTION 2. IC 6-5.5-8-2, AS AMENDED BY THE TECHNICAL
98	98	19 CORRECTIONS BILL OF THE 2024 GENERAL ASSEMBLY, IS
99	99	20 AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1,
100	100	21 2025]: Sec. 2. (a) On or before December 1 and June 1 of each year the
101	101	22 auditor of state comptroller shall transfer from the financial
102	102	23 institutions tax fund to each county auditor for distribution to the taxing
103	103	24 units (as defined in IC 6-1.1-1-21) in the county, an amount equal to
104	104	25 fifty percent (50%) of the sum of the distributions under this section for
105	105	26 all the taxing units of the county for the state fiscal year. The amount
106	106	27 of a taxing unit's distribution for the state fiscal year is equal to the
107	107	28 result of:
108	108	29 (1) an amount equal to forty percent (40%) of the total financial
109	109	30 institutions tax revenue collected during the preceding state fiscal
110	110	31 year; multiplied by
111	111	32 (2) a fraction equal to:
112	112	33 (A) the amount of the guaranteed distributions received by the
113	113	34 taxing unit under this chapter during calendar year 2012
114	114	35 (based on the best information available to the department);
115	115	36 divided by
116	116	37 (B) the total amount of all guaranteed distributions received by
117	117	38 all taxing units under this chapter during calendar year 2012
118	118	39 (based on the best information available to the department).
119	119	40 (b) The county auditor shall distribute the distributions received
120	120	41 under subsection (a) to the taxing units in the county at the same time
121	121	42 that the county auditor makes the semiannual distribution of real
122	122	2024 IN 1134—LS 6854/DI 116 3
123	123	1 property taxes to the taxing units.
124	124	2 (c) The distributions received under subsection (a) may be used for
125	125	3 any legal purpose.
126	126	4 (d) This subsection applies to a taxing unit that did not receive
127	127	5 a guaranteed distribution under this chapter during calendar year
128	128	6 2012 because the taxing unit was subsequently established as a
129	129	7 result of a merger or consolidation of two (2) or more taxing units
130	130	8 that received a guaranteed distribution under this chapter during
131	131	9 calendar year 2012. The amount of the guaranteed distribution
132	132	10 used in the numerator of the fraction described in subsection (a)(2)
133	133	11 equals the combined guaranteed distributions received during
134	134	12 calendar year 2012 by each taxing unit that was subsequently
135	135	13 merged or consolidated into the current taxing unit.
136	136	14 SECTION 3. IC 6-6-5-10, AS AMENDED BY THE TECHNICAL
137	137	15 CORRECTIONS BILL OF THE 2024 GENERAL ASSEMBLY, IS
138	138	16 AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2024]:
139	139	17 Sec. 10. (a) The bureau shall establish procedures necessary for the
140	140	18 collection of the tax imposed by this chapter and for the proper
141	141	19 accounting for the same. The necessary forms and records shall be
142	142	20 subject to approval by the state board of accounts.
143	143	21 (b) The county treasurer, upon receiving the excise tax collections,
144	144	22 shall receipt such collections into a separate account for settlement
145	145	23 thereof at the same time as property taxes are accounted for and settled
146	146	24 in June and December of each year, with the right and duty of the
147	147	25 treasurer and auditor to make advances prior to the time of final
148	148	26 settlement of such property taxes in the same manner as provided in
149	149	27 IC 5-13-6-3.
150	150	28 (c) As used in this subsection, "taxing district" has the meaning set
151	151	29 forth in IC 6-1.1-1-20, "taxing unit" has the meaning set forth in
152	152	30 IC 6-1.1-1-21, and "tuition support levy" refers to a school
153	153	31 corporation's tuition support property tax levy under IC 20-45-3-11
154	154	32 (repealed) for the school corporation's general fund. The county auditor
155	155	33 shall determine the total amount of excise taxes collected for each
156	156	34 taxing district in the county and the amount so collected (and the
157	157	35 distributions received under section 9.5 of this chapter) shall be
158	158	36 apportioned and distributed among the respective funds of the taxing
159	159	37 units in the same manner and at the same time as property taxes are
160	160	38 apportioned and distributed (subject to adjustment as provided in
161	161	39 IC 36-8-19-7.5). In the event a taxing unit merges or consolidates
162	162	40 with one (1) or more taxing units in the county, the county auditor
163	163	41 shall include adjustments to the current taxing unit's
164	164	42 apportionment and distributions, if necessary, so that the
165	165	2024 IN 1134—LS 6854/DI 116 4
166	166	1 apportionment and distributions accurately reflect the merger or
167	167	2 consolidation of the taxing units. However, for purposes of
168	168	3 determining distributions under this section for 2009 and each year
169	169	4 thereafter, a state welfare and tuition support allocation shall be
170	170	5 deducted from the total amount available for apportionment and
171	171	6 distribution to taxing units under this section before any apportionment
172	172	7 and distribution is made. The county auditor shall remit the state
173	173	8 welfare and tuition support allocation to the treasurer of state for
174	174	9 deposit, as directed by the budget agency. The amount of the state
175	175	10 welfare and tuition support allocation for a county for a particular year
176	176	11 is equal to the result determined under STEP FOUR of the following
177	177	12 formula:
178	178	13 STEP ONE: Determine the result of the following:
179	179	14 (A) Separately for 1997, 1998, and 1999 for each taxing
180	180	15 district in the county, determine the result of:
181	181	16 (i) the amount appropriated in the year by the county from
182	182	17 the county's county welfare fund and county welfare
183	183	18 administration fund; divided by
184	184	19 (ii) the total amounts appropriated by all taxing units in the
185	185	20 county for the same year.
186	186	21 (B) Determine the sum of the clause (A) amounts.
187	187	22 (C) Divide the clause (B) amount by three (3).
188	188	23 (D) Determine the result of:
189	189	24 (i) the amount of excise taxes allocated to the taxing district
190	190	25 that would otherwise be available for distribution to taxing
191	191	26 units in the taxing district; multiplied by
192	192	27 (ii) the clause (C) amount.
193	193	28 STEP TWO: Determine the result of the following:
194	194	29 (A) Separately for 2006, 2007, and 2008 for each taxing
195	195	30 district in the county, determine the result of:
196	196	31 (i) the tax rate imposed in the taxing district for the county's
197	197	32 county medical assistance to wards fund, family and
198	198	33 children's fund, children's psychiatric residential treatment
199	199	34 services fund, county hospital care for the indigent fund,
200	200	35 children with special health care needs county fund, plus, in
201	201	36 the case of Marion County, the tax rate imposed by the
202	202	37 health and hospital corporation that was necessary to raise
203	203	38 thirty-five million dollars ($35,000,000) from all taxing
204	204	39 districts in the county; divided by
205	205	40 (ii) the aggregate tax rate imposed in the taxing district for
206	206	41 the same year.
207	207	42 (B) Determine the sum of the clause (A) amounts.
208	208	2024 IN 1134—LS 6854/DI 116 5
209	209	1 (C) Divide the clause (B) amount by three (3).
210	210	2 (D) Determine the result of:
211	211	3 (i) the amount of excise taxes allocated to the taxing district
212	212	4 that would otherwise be available for distribution to taxing
213	213	5 units in the taxing district after subtracting the STEP ONE
214	214	6 (D) amount for the same taxing district; multiplied by
215	215	7 (ii) the clause (C) amount.
216	216	8 (E) Determine the sum of the clause (D) amounts for all taxing
217	217	9 districts in the county.
218	218	10 STEP THREE: Determine the result of the following:
219	219	11 (A) Separately for 2006, 2007, and 2008 for each taxing
220	220	12 district in the county, determine the result of:
221	221	13 (i) the tuition support levy tax rate imposed in the taxing
222	222	14 district plus the tax rate imposed by the school corporation
223	223	15 for the school corporation's special education preschool fund
224	224	16 in the district; divided by
225	225	17 (ii) the aggregate tax rate imposed in the taxing district for
226	226	18 the same year.
227	227	19 (B) Determine the sum of the clause (A) amounts.
228	228	20 (C) Divide the clause (B) amount by three (3).
229	229	21 (D) Determine the result of:
230	230	22 (i) the amount of excise taxes allocated to the taxing district
231	231	23 that would otherwise be available for distribution to taxing
232	232	24 units in the taxing district after subtracting the STEP ONE
233	233	25 (D) amount for the same taxing district; multiplied by
234	234	26 (ii) the clause (C) amount.
235	235	27 (E) Determine the sum of the clause (D) amounts for all taxing
236	236	28 districts in the county.
237	237	29 STEP FOUR: Determine the sum of the STEP ONE, STEP TWO,
238	238	30 and STEP THREE amounts for the county.
239	239	31 If the boundaries of a taxing district change after the years for which a
240	240	32 ratio is calculated under STEP ONE, STEP TWO, or STEP THREE,
241	241	33 the auditor of state comptroller shall establish a ratio for the new
242	242	34 taxing district that reflects the tax rates imposed in the predecessor
243	243	35 taxing districts. If a new taxing district is established after the years for
244	244	36 which a ratio is calculated under STEP ONE, STEP TWO, or STEP
245	245	37 THREE, the auditor of state comptroller shall establish a ratio for the
246	246	38 new taxing district and adjust the ratio for other taxing districts in the
247	247	39 county.
248	248	40 (d) Such determination shall be made from copies of vehicle
249	249	41 registration forms furnished by the bureau of motor vehicles. Prior to
250	250	42 such determination, the county assessor of each county shall, from
251	251	2024 IN 1134—LS 6854/DI 116 6
252	252	1 copies of registration forms, cause information pertaining to legal
253	253	2 residence of persons owning taxable vehicles to be verified from the
254	254	3 assessor's records, to the extent such verification can be so made. The
255	255	4 assessor shall further identify and verify from the assessor's records the
256	256	5 several taxing units within which such persons reside.
257	257	6 (e) Such verifications shall be done by not later than thirty (30) days
258	258	7 after receipt of vehicle registration forms by the county assessor, and
259	259	8 the assessor shall certify such information to the county auditor for the
260	260	9 auditor's use as soon as it is checked and completed.
261	261	10 SECTION 4. IC 6-6-5.5-19, AS AMENDED BY THE TECHNICAL
262	262	11 CORRECTIONS BILL OF THE 2024 GENERAL ASSEMBLY, IS
263	263	12 AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2024]:
264	264	13 Sec. 19. (a) As used in this section, "assessed value" means an amount
265	265	14 equal to the true tax value of commercial vehicles that:
266	266	15 (1) are subject to the commercial vehicle excise tax under this
267	267	16 chapter; and
268	268	17 (2) would have been subject to assessment as personal property
269	269	18 on March 1, 2000, under the law in effect before January 1, 2000.
270	270	19 (b) For calendar year 2001, a taxing unit's base revenue shall be
271	271	20 determined as provided in subsection (f). For calendar years that begin
272	272	21 after December 31, 2001, and before January 1, 2009, a taxing unit's
273	273	22 base revenue shall be determined by multiplying the previous year's
274	274	23 base revenue by one hundred five percent (105%). For calendar years
275	275	24 that begin after December 31, 2008, a taxing unit's base revenue is
276	276	25 equal to:
277	277	26 (1) the amount of commercial vehicle excise tax collected during
278	278	27 the previous state fiscal year; multiplied by
279	279	28 (2) the taxing unit's percentage as determined in subsection (f) for
280	280	29 calendar year 2001.
281	281	30 (c) The amount of commercial vehicle excise tax distributed to the
282	282	31 taxing units of Indiana from the commercial vehicle excise tax fund
283	283	32 shall be determined in the manner provided in this section.
284	284	33 (d) On or before July 1, 2000, each county assessor shall certify to
285	285	34 the county auditor the assessed value of commercial vehicles in every
286	286	35 taxing district.
287	287	36 (e) On or before August 1, 2000, the county auditor shall certify the
288	288	37 following to the department of local government finance:
289	289	38 (1) The total assessed value of commercial vehicles in the county.
290	290	39 (2) The total assessed value of commercial vehicles in each taxing
291	291	40 district of the county.
292	292	41 (f) The department of local government finance shall determine
293	293	42 each taxing unit's base revenue by applying the current tax rate for each
294	294	2024 IN 1134—LS 6854/DI 116 7
295	295	1 taxing district to the certified assessed value from each taxing district.
296	296	2 The department of local government finance shall also determine the
297	297	3 following:
298	298	4 (1) The total amount of base revenue to be distributed from the
299	299	5 commercial vehicle excise tax fund in 2001 to all taxing units in
300	300	6 Indiana.
301	301	7 (2) The total amount of base revenue to be distributed from the
302	302	8 commercial vehicle excise tax fund in 2001 to all taxing units in
303	303	9 each county.
304	304	10 (3) Each county's total distribution percentage. A county's total
305	305	11 distribution percentage shall be determined by dividing the total
306	306	12 amount of base revenue to be distributed in 2001 to all taxing
307	307	13 units in the county by the total base revenue to be distributed
308	308	14 statewide.
309	309	15 (4) Each taxing unit's distribution percentage. A taxing unit's
310	310	16 distribution percentage shall be determined by dividing each
311	311	17 taxing unit's base revenue by the total amount of base revenue to
312	312	18 be distributed in 2001 to all taxing units in the county. However,
313	313	19 in the event a taxing unit subsequently merges or consolidates
314	314	20 with another taxing unit in the county, the amount of the base
315	315	21 revenue used to calculate the distribution percentage of the
316	316	22 taxing unit resulting from the consolidation or merger under
317	317	23 this subdivision is the combined base revenue distributed in
318	318	24 2001 to each taxing unit that was subsequently merged or
319	319	25 consolidated to establish the currently existing taxing unit.
320	320	26 (g) The department of local government finance shall certify each
321	321	27 taxing unit's base revenue and distribution percentage for calendar year
322	322	28 2001 to the auditor of state on or before September 1, 2000.
323	323	29 (h) The auditor of state comptroller shall keep permanent records
324	324	30 of each taxing unit's base revenue and distribution percentage for
325	325	31 calendar year 2001 for purposes of determining the amount of money
326	326	32 each taxing unit in Indiana is entitled to receive in calendar years that
327	327	33 begin after December 31, 2001.
328	328	34 SECTION 5. [EFFECTIVE JULY 1, 2024] (a) The definitions used
329	329	35 in IC 6-3.6-2 apply throughout this SECTION.
330	330	36 (b) As used in this SECTION, "district" refers to the
331	331	37 Highlander Fire Protection District located in Floyd County
332	332	38 established by an ordinance adopted by the Floyd County
333	333	39 commissioners on December 30, 2022.
334	334	40 (c) As used in this SECTION, "Greenville FPD" refers to the
335	335	41 Greenville Township Fire Protection District located in Floyd
336	336	42 County as it existed prior to its merger with the Lafayette FPD.
337	337	2024 IN 1134—LS 6854/DI 116 8
338	338	1 (d) As used in this SECTION, "Lafayette FPD" refers to the
339	339	2 Lafayette Township Fire Protection District located in Floyd
340	340	3 County as it existed prior to its merger with the Greenville FPD.
341	341	4 (e) Notwithstanding IC 6-3.6-6, as amended by this act, and
342	342	5 IC 6-3.6-9-15, the department of local government finance shall
343	343	6 include with its certified distribution under IC 6-3.6-9-5 for Floyd
344	344	7 County in 2025 and for the calculations of any potential
345	345	8 supplemental distribution under IC 6-3.6-9-15 for 2026 the
346	346	9 following adjustments:
347	347	10 (1) An amount equal to the combined distribution that would
348	348	11 have been distributed to the Greenville FPD and the Lafayette
349	349	12 FPD in 2024, but for their elimination resulting from the
350	350	13 merger to establish the district, shall be added to the
351	351	14 distribution to the district.
352	352	15 (2) The distribution for each applicable civil taxing unit and
353	353	16 school corporation in Floyd County, excluding the district,
354	354	17 shall be reduced by an amount in accordance with
355	355	18 IC 6-3.6-9-6 that equals the proportionate share of the
356	356	19 amount of local income tax received in 2024 under IC 6-3.6-6,
357	357	20 before its amendment by this act, of the combined distribution
358	358	21 that would have been distributed to the Greenville FPD and
359	359	22 the Lafayette FPD in 2024, but for their elimination resulting
360	360	23 from the merger to establish the district.
361	361	24 (f) Notwithstanding IC 6-1.1-18.5, the department of local
362	362	25 government finance shall make a one (1) time temporary
363	363	26 adjustment to the maximum levies in accordance with the
364	364	27 adjustments described in subsection (e) that may not be included
365	365	28 in the calculation of a maximum levy in a subsequent year of the
366	366	29 applicable taxing units.
367	367	30 (g) This SECTION expires January 1, 2027.
368	368	2024 IN 1134—LS 6854/DI 116