*SB0033.1*
January 31, 2024
SENATE BILL No. 33
_____
DIGEST OF SB 33 (Updated January 30, 2024 11:36 am - DI 120)
Citations Affected: IC 6-3.6; IC 36-8.
Synopsis: Distributions of public safety income tax revenue. Provides
that a qualified township and various fire entities may apply to the
county adopting body for a distribution of local income tax revenue that
is allocated to public safety purposes. Requires the county adopting
body to review a submitted application at a public hearing at which the
qualified township or entity must present and explain its application.
Provides that after the public hearing on the application, and before
September 1, the county adopting body may adopt a resolution
approving the application and requiring that tax revenue be distributed
to the qualified township or entity. Provides the calculation for the
amount of the allocation to a qualified township. Repeals certain
provisions enacted in the 2023 session in HB 1454 regarding
distribution of tax revenue allocated to public safety to township fire
departments, volunteer fire departments, fire protection territories, or
fire protection districts. Makes certain changes to provisions regarding
the local income tax rate for local costs of the state judicial system in
the county.
Effective: Upon passage; July 1, 2024.
Niemeyer
January 8, 2024, read first time and referred to Committee on Tax and Fiscal Policy.
January 30, 2024, amended, reported favorably — Do Pass.
SB 33—LS 6193/DI 120 January 31, 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.
SENATE BILL No. 33
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 6-3.6-6-2.9, AS ADDED BY P.L.193-2023,
2 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 UPON PASSAGE]: Sec. 2.9. (a) For purposes of this section,
4 "courtroom costs" includes staffing costs only for the court
5 reporter, court bailiff, or court administrator.
6 (b) A county fiscal body may adopt an ordinance to impose a tax
7 rate for county staff expenses courtroom costs of the state judicial
8 system in the county. The tax rate must be in increments of
9 one-hundredth of one percent (0.01%) and may not exceed two-tenths
10 of one percent (0.2%). The tax rate may not be in effect for more than
11 twenty-five (25) years.
12 (b) (c) The revenue generated by a tax rate imposed under this
13 section must be distributed directly to the county before the remainder
14 of the expenditure rate revenue is distributed. The revenue shall be
15 maintained in a separate dedicated county fund and used by the county
16 only for paying for county staff expenses courtroom costs of the state
17 judicial system in the county.
SB 33—LS 6193/DI 120 2
1 (c) (d) The local income tax revenue budgeted and spent under this
2 section by each county may not comprise more than fifty percent (50%)
3 of the county's total budgeted operational staffing expenses related to
4 the courtroom costs of the state judicial system in any given year.
5 (d) (e) Counties that enact an ordinance to impose a tax rate under
6 this section shall annually report the following information for the prior
7 calendar year by May 1 to the justice reinvestment advisory council
8 established by IC 33-38-9.5-2:
9 (1) The types of court positions paid with local income tax
10 revenue generated by this section.
11 (2) The number of court positions by type paid for with local
12 income tax revenue generated by this section.
13 (3) The average salary by type of court position paid for with local
14 income tax revenue generated by this section.
15 (4) The county's total budgeted and actual staffing expenses
16 courtroom costs related to the state judicial system.
17 (5) The county's portion of local income tax revenue that was
18 (A) budgeted for staffing expenses related to the state judicial
19 system; and
20 (B) actually spent on staffing expenses. courtroom costs
21 related to the state judicial system.
22 (e) (f) The justice reinvestment advisory council shall annually
23 compile and report to the legislative council prior to July 1 of each year
24 the information required in subsection (d) for each county. The report
25 must be in an electronic format under IC 5-14-6.
26 SECTION 2. IC 6-3.6-6-8, AS AMENDED BY P.L.236-2023,
27 SECTION 81, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
28 JULY 1, 2024]: Sec. 8. (a) This section applies to the allocation of
29 additional revenue from a tax under this chapter to public safety
30 purposes. Funding dedicated for a PSAP under a former tax continues
31 to apply under this chapter until it is rescinded or modified. If funding
32 was not dedicated for a PSAP under a former tax, the adopting body
33 may adopt a resolution providing that all or part of the additional
34 revenue allocated to public safety is to be dedicated for a PSAP. The
35 resolution first applies in the following year and then thereafter until it
36 is rescinded or modified. Funding dedicated for a PSAP shall be
37 allocated and distributed as provided in IC 6-3.6-11-4.
38 (b) As used in this section, "qualified fire protection district"
39 means a fire protection district established under IC 36-8-11.
40 (c) As used in this section, "qualified fire protection territory"
41 means a fire protection territory as described in IC 36-8-19-5
42 whose boundaries are entirely contained within a single county
SB 33—LS 6193/DI 120 3
1 other than Marion County.
2 (d) As used in this section, "qualified township" of a county
3 refers to any township with a firefighting levy in a county (other
4 than a township located in Marion County) that operates or
5 contracts with a fire department, a volunteer fire department, or
6 an emergency medical services provider.
7 (b) (e) Except as provided in subsections (c) and (d), subsection (g),
8 the amount of the certified distribution that is allocated to public safety
9 purposes, and after making allocations under IC 6-3.6-11, shall be
10 allocated to the county and to each municipality in the county that is
11 carrying out or providing at least one (1) public safety purpose. For
12 purposes of this subsection, in the case of a consolidated city, the total
13 property taxes imposed by the consolidated city include the property
14 taxes imposed by the consolidated city and all special taxing districts
15 (except for a public library district, a public transportation corporation,
16 and a health and hospital corporation), and all special service districts.
17 The amount allocated under this subsection to a county or municipality
18 is equal to the result of:
19 (1) the amount of the remaining certified distribution that is
20 allocated to public safety purposes; multiplied by
21 (2) a fraction equal to:
22 (A) in the case of a county that initially imposed a rate for
23 public safety under IC 6-3.5-6 (repealed), the result of the total
24 property taxes imposed in the county by the county or
25 municipality for the calendar year preceding the distribution
26 year, divided by the sum of the total property taxes imposed in
27 the county by the county and each municipality in the county
28 that is entitled to a distribution under this section for that
29 calendar year; or
30 (B) in the case of a county that initially imposed a rate for
31 public safety under IC 6-3.5-1.1 (repealed) or a county that did
32 not impose a rate for public safety under either IC 6-3.5-1.1
33 (repealed) or IC 6-3.5-6 (repealed), the result of the attributed
34 allocation amount of the county or municipality for the
35 calendar year preceding the distribution year, divided by the
36 sum of the attributed allocation amounts of the county and
37 each municipality in the county that is entitled to a distribution
38 under this section for that calendar year.
39 (f) A qualified township may, before July 1 of a year, apply to
40 the county adopting body for a distribution of tax revenue under
41 this section. The county adopting body shall review an application
42 submitted by a qualified township at a public hearing, after giving
SB 33—LS 6193/DI 120 4
1 notice under IC 5-3-1, at which the qualified township must
2 present and explain its application. Not later than ten (10) days
3 after the public hearing, and before September 1 of a year, the
4 county adopting body may adopt a resolution approving the
5 application and requiring that tax revenue be distributed to the
6 qualified township under this subsection. If a resolution is adopted,
7 part of the certified distribution allocated to the county under
8 subsection (e) shall be allocated to the qualified township (or
9 qualified townships if more than one (1) qualified township applies)
10 in an amount equal to the result of:
11 (1) the amount of the certified distribution that is allocated to
12 the county under subsection (e); multiplied by
13 (2) a fraction equal to:
14 (A) in the case of a county that initially imposed a rate for
15 public safety under IC 6-3.5-6 (repealed), the result of the
16 total property taxes imposed in the county by the qualified
17 township for the calendar year, divided by the sum of the
18 total property taxes imposed in the county by the county
19 and each qualified township in the county; or
20 (B) in the case of a county that initially imposed a rate for
21 public safety under IC 6-3.5-1.1 (repealed) or a county that
22 did not impose a rate for public safety under either
23 IC 6-3.5-1.1 (repealed) or IC 6-3.5-6 (repealed), the result
24 of the attributed allocation amount of the qualified
25 township for the calendar year, divided by the sum of the
26 attributed allocation amounts of the county and each
27 qualified township in the county.
28 The county adopting body shall provide a copy of the resolution to
29 the county auditor and the department of local government finance
30 not more than fifteen (15) days after the resolution is adopted. A
31 resolution adopted under this subsection and provided in a timely
32 manner to the county auditor and the department of local
33 government finance applies to distributions of tax revenue to the
34 qualified township in the following calendar year and each
35 calendar year thereafter until the qualified township rescinds its
36 application under subsection (h).
37 (c) (g) A fire department, volunteer fire department, qualified fire
38 protection territory provider unit, qualified fire protection district,
39 or emergency medical services provider that:
40 (1) provides fire protection or emergency medical services within
41 the county; and
42 (2) is operated by or serves a political subdivision that is not
SB 33—LS 6193/DI 120 5
1 otherwise entitled to receive a distribution of tax revenue under
2 this section;
3 may, before July 1 of a year, apply to the county adopting body for a
4 distribution of tax revenue under this section during the following
5 calendar year. The county adopting body shall review an application
6 submitted by a qualified fire protection territory provider unit or
7 qualified fire protection district under this subsection at a public
8 hearing, after giving notice under IC 5-3-1, at which the qualified
9 applicant must present and explain its application. Not later than
10 ten (10) days after the public hearing, and the county adopting
11 body may, before September 1 of a year, adopt a resolution approving
12 the application and requiring that one (1) or more of the applicants
13 shall receive a specified amount of the tax revenue to be distributed to
14 the qualified applicant under this section. during the following
15 calendar year. The county adopting body shall provide a copy of the
16 resolution to the county auditor and the department of local
17 government finance not more than fifteen (15) days after the resolution
18 is adopted. A resolution adopted under this subsection and provided in
19 a timely manner to the county auditor and the department applies only
20 to distributions in the following calendar year. Any amount of tax
21 revenue distributed under this subsection to a fire department,
22 volunteer fire department, or emergency medical services provider
23 shall be distributed before the remainder of the tax revenue is allocated
24 under subsection (b). the department of local government finance
25 applies to distributions of tax revenue to the qualified applicant in
26 the following calendar year and each calendar year thereafter until
27 the qualified applicant rescinds its application under subsection
28 (h).
29 (d) From the amount of the certified distribution that is allocated to
30 public safety purposes, and after making allocations under IC 6-3.6-11,
31 the adopting body may adopt a resolution that one (1) or more township
32 fire departments, volunteer fire departments, fire protection territories,
33 or fire protection districts shall receive an amount of the tax revenue to
34 be distributed under this section during the following calendar year up
35 to the amount of revenue that is attributable to five one-hundredths of
36 one percent (0.05%) of the tax rate imposed for allocations to public
37 safety purposes. A resolution adopted under this subsection must
38 include information on the service area for each township fire
39 department, volunteer fire department, fire protection territory, or fire
40 protection district, as applicable. Any distribution under this subsection
41 must be based on the assessed value of real property, not including
42 land, that is served by each township fire department, volunteer fire
SB 33—LS 6193/DI 120 6
1 department, fire protection territory, or fire protection district, as
2 applicable. The adopting body shall provide a copy of the resolution to
3 the county auditor and the department of local government finance not
4 more than fifteen (15) days after the resolution is adopted. A resolution
5 adopted under this subsection and provided in a timely manner to the
6 county auditor and the department applies only to distributions in the
7 following calendar year. Any amount of tax revenue distributed under
8 this subsection to a township fire department, volunteer fire
9 department, fire protection territory, or fire protection district, as
10 applicable, shall be distributed before the remainder of the tax revenue
11 is allocated under subsection (b).
12 (h) A qualified township under subsection (f) or qualified
13 applicant under subsection (g) that wishes to rescind its application
14 under the applicable subsection must notify the county adopting
15 body in writing before July 1 of a year. If the county adopting body
16 receives a qualified township's or qualified applicant's written
17 notice to rescind its application for a distribution of tax revenue
18 under this subsection, the county adopting body shall adopt a
19 resolution rescinding the qualified township's or qualified
20 applicant's distribution before September 1 of a year and shall
21 provide a copy of the resolution to the county auditor and the
22 department of local government finance not more than fifteen (15)
23 days after the resolution is adopted.
24 SECTION 3. IC 36-8-19-8, AS AMENDED BY P.L.236-2023,
25 SECTION 209, IS AMENDED TO READ AS FOLLOWS
26 [EFFECTIVE JULY 1, 2024]: Sec. 8. (a) Upon the adoption of
27 identical ordinances or resolutions, or both, by the participating units
28 under section 6 of this chapter, the designated provider unit must
29 establish a fire protection territory fund from which all expenses of
30 operating and maintaining the fire protection services within the
31 territory, including repairs, fees, salaries, depreciation on all
32 depreciable assets, rents, supplies, contingencies, and all other
33 expenses lawfully incurred within the territory shall be paid. The
34 purposes described in this subsection are the sole purposes of the fund,
35 and money in the fund may not be used for any other expenses. Except
36 as allowed in subsections (d) and (e) and section 8.5 of this chapter, the
37 provider unit is not authorized to transfer money out of the fund at any
38 time.
39 (b) The fund consists of the following:
40 (1) All receipts from the tax imposed under this section.
41 (2) Any money transferred to the fund by the provider unit as
42 authorized under subsection (d).
SB 33—LS 6193/DI 120 7
1 (3) Any receipts from a false alarm fee or service charge imposed
2 by the participating units under IC 36-8-13-4.
3 (4) Any money transferred to the fund by a participating unit
4 under section 8.6 of this chapter.
5 (5) Any receipts from a distribution made under IC 6-3.6-6-8(d),
6 IC 6-3.6-6-8(g), which shall be deposited in the fund.
7 (c) The provider unit, with the assistance of each of the other
8 participating units, shall annually budget the necessary money to meet
9 the expenses of operation and maintenance of the fire protection
10 services within the territory. The provider unit may maintain a
11 reasonable balance, not to exceed one hundred twenty percent (120%)
12 of the budgeted expenses. Except as provided in IC 6-1.1-18.5-10.5,
13 and subject to section 7(c) of this chapter, after estimating expenses
14 and receipts of money, the provider unit shall establish the tax levy
15 required to fund the estimated budget. Subject to IC 6-1.1-18.5-10.5(c),
16 the amount budgeted under this subsection shall be considered a part
17 of each of the participating unit's budget.
18 (d) If the amount levied in a particular year is insufficient to cover
19 the costs incurred in providing fire protection services within the
20 territory, the provider unit may transfer from available sources to the
21 fire protection territory fund the money needed to cover those costs. In
22 this case:
23 (1) the levy in the following year shall be increased by the amount
24 required to be transferred; and
25 (2) the provider unit is entitled to transfer the amount described
26 in subdivision (1) from the fund as reimbursement to the provider
27 unit.
28 (e) If the amount levied in a particular year exceeds the amount
29 necessary to cover the costs incurred in providing fire protection
30 services within the territory, the levy in the following year shall be
31 reduced by the amount of surplus money that is not transferred to the
32 equipment replacement fund established under section 8.5 of this
33 chapter. The amount that may be transferred to the equipment
34 replacement fund may not exceed five percent (5%) of the levy for that
35 fund for that year. Each participating unit must agree to the amount to
36 be transferred by adopting an ordinance (if the unit is a county or
37 municipality) or a resolution (if the unit is a township) that specifies an
38 identical amount to be transferred.
39 (f) The tax under this section is subject to the tax levy limitations
40 imposed under IC 6-1.1-18.5-10.5.
41 SECTION 4. An emergency is declared for this act.
SB 33—LS 6193/DI 120 8
COMMITTEE REPORT
Madam President: The Senate Committee on Tax and Fiscal Policy,
to which was referred Senate Bill No. 33, 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 1, between the enacting clause and line 1, begin a new
paragraph and insert:
"SECTION 1. IC 6-3.6-6-2.9, AS ADDED BY P.L.193-2023,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 2.9. (a) For purposes of this section,
"courtroom costs" includes staffing costs only for the court
reporter, court bailiff, or court administrator.
(b) A county fiscal body may adopt an ordinance to impose a tax
rate for county staff expenses courtroom costs of the state judicial
system in the county. The tax rate must be in increments of
one-hundredth of one percent (0.01%) and may not exceed two-tenths
of one percent (0.2%). The tax rate may not be in effect for more than
twenty-five (25) years.
(b) (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 and used by the county
only for paying for county staff expenses courtroom costs of the state
judicial system in the county.
(c) (d) The local income tax revenue budgeted and spent under this
section by each county may not comprise more than fifty percent (50%)
of the county's total budgeted operational staffing expenses related to
the courtroom costs of the state judicial system in any given year.
(d) (e) Counties that enact an ordinance to impose a tax rate under
this section shall annually report the following information for the prior
calendar year by May 1 to the justice reinvestment advisory council
established by IC 33-38-9.5-2:
(1) The types of court positions paid with local income tax
revenue generated by this section.
(2) The number of court positions by type paid for with local
income tax revenue generated by this section.
(3) The average salary by type of court position paid for with local
income tax revenue generated by this section.
(4) The county's total budgeted and actual staffing expenses
courtroom costs related to the state judicial system.
(5) The county's portion of local income tax revenue that was
SB 33—LS 6193/DI 120 9
(A) budgeted for staffing expenses related to the state judicial
system; and
(B) actually spent on staffing expenses. courtroom costs
related to the state judicial system.
(e) (f) The justice reinvestment advisory council shall annually
compile and report to the legislative council prior to July 1 of each year
the information required in subsection (d) for each county. The report
must be in an electronic format under IC 5-14-6.".
Page 3, line 4, delete "shall" and insert "may".
Page 4, line 10, strike "and" and insert "the county adopting body".
Page 4, line 10, reset in roman "may,".
Page 4, line 11, delete "the county adopting body shall".
Page 6, after line 40, begin a new paragraph and insert:
"SECTION 4. An emergency is declared for this act.".
Renumber all SECTIONS consecutively.
and when so amended that said bill do pass.
(Reference is to SB 33 as introduced.)
HOLDMAN, Chairperson
Committee Vote: Yeas 11, Nays 0.
SB 33—LS 6193/DI 120