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 6193 NOTE PREPARED: Feb 22, 2024
BILL NUMBER: SB 33 BILL AMENDED: Feb 22, 2024
SUBJECT: Distributions of Public Safety Income Tax Revenue.
FIRST AUTHOR: Sen. Niemeyer BILL STATUS: CR Adopted - 2
nd
House
FIRST SPONSOR: Rep. Slager
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
DEDICATED
FEDERAL
Summary of Legislation: (Amended) Public Safety LIT - This bill provides that a township fire department,
volunteer fire department, fire protection territory, or fire protection district may apply to the county adopting
body for a distribution of local income tax revenue that is allocated to public safety purposes. It requires the
county adopting body to review certain submitted applications at a public hearing. The bill resets certain
provisions enacted in the 2023 session in HEA 1454 regarding distribution of tax revenue allocated to public
safety to township fire departments, volunteer fire departments, fire protection territories, or fire protection
districts.
Judicial System LIT - This bill defines"courtroom costs". It provides that a county fiscal body may adopt an
ordinance to impose a tax rate for: (1) in the case of a tax rate adopted before January 1, 2024, county staff
expenses of the state judicial system in the county; or (2) in the case of a tax rate adopted after December
31, 2023, courtroom costs of the state judicial system in the county. It provides that the revenue shall be used
by the county: (1) in the case of the tax rate adopted before January 1, 2024, only for paying for county staff
expenses of the state judicial system in the county; and (2) in the case of a tax rate adopted after December
31, 2023, only for paying the courtroom costs of the state judicial system in the county. The bill also provides
that the local income tax revenue spent by each county may not comprise more than 50% of the county's total
operational staffing expenses related to the courtroom costs of the state judicial system in any given year.
Effective Date: Upon passage; July 1, 2024.
Explanation of State Expenditures: Department of Local Government Finance (DLGF): The administrative
workload for the DLGF may increase as a result of computing and reporting the additional public safety
SB 33 1 revenue allocations of local income tax revenue, should a qualified township, fire protection district, or fire
protection territory unit submit an application to its applicable county adopting body for an allocation of this
revenue. It is assumed that the DLGF will be able to make these calculations using existing resources and
not require additional appropriations to implement this bill’s provisions.
Explanation of State Revenues:
Explanation of Local Expenditures: (Revised) Public Safety LIT: The bill allows a township fire
department, volunteer fire department, fire protection district, and fire protection territory unit that provides
fire protection or emergency medical services within a county and that imposed a property tax levy for these
services in the most recent calendar year to apply to the county adopting body to receive an allocation of
public safety local income tax revenue. The application must be received before July 1, and the county
adopting body must review the unit’s application at a public hearing and may adopt a resolution approving
the unit’s request. This bill’s provision may result in an increase in the administrative workload of the county
adopting bodies to the extent these units will file an application to receive an allocation of the public safety
local income tax revenue, and the adopting body would need to have a public hearing where the application
is reviewed and may be presented by the units. The bill gives the county adopting body the discretion to
review multiple applications at one public hearing.
Judicial System LIT: This bill defines “courtroom costs” for those counties that choose to adopt a LIT rate
on January 1, 2024, or after ,to help fund their judicial system. SEA 417-2023 authorized county fiscal bodies
to impose a LIT rate for funding county staff expenses of the judicial system. The revenue budgeted and
spent by the county from the judicial system LIT may not comprise more than 50% of the county’s total
budgeted operational staffing expenses for the judicial system in any given year. For counties that adopt this
rate on January 1, 2024, or after, this bill revises the allowable expenses for which the judicial system LIT
may be spent to be limited to courtroom costs, which include staffing costs only for the court reporter, court
bailiff, or court administrator. The revenue budgeted and spent by the county from the judicial system LIT
may not comprise more than 50% of the county’s total operational staffing expenses related to the courtroom
costs of the state judicial system in any given year. [For CY 2024, only Floyd County has adopted a judicial
system LIT rate. The county has a certified rate of 0.040% and a certified distribution of approximately $1.2
M for CY 2024. Additionally, the county will be allowed to use the revenue generated from this LIT rate to
fund costs as referenced in SEA 417-2023.]
Explanation of Local Revenues: (Revised) Public Safety LIT: Local units currently receiving a distribution
of LIT revenue allocated to public safety may have their distribution reduced depending on whether a county
adopting body decides to approve a resolution allocating a portion of the revenue to qualifying township fire
departments, fire protection territories, or fire protection districts. This could result in LIT revenue shifts
among the eligible civil units within a county since this particular allocation - if approved - would be
distributed to the applicable units before the remainder of the public safety LIT. The actual revenue shifts
will depend on actions by the county adopting body, including the amount of public safety local income tax
revenue they choose to allocate and the number of the number of qualifying units that apply for a distribution.
(Revised) Additional Information - Currently, when a county allocates a portion of their local income tax
expenditure rate to public safety, the associated revenue is distributed between the county and the cities and
towns within the county that provide at least one public safety service. Other civil taxing units that operate
a fire department, volunteer fire department, or an EMS provider may request a portion of the certified
distribution associated with the public safety rate, but the distribution is not required. [A qualifying township
operates or contracts with a fire department, volunteer fire department, or an EMS provider.]
SB 33 2 Based on CY 2024 certified distributions as of November 29, 2023, 76 counties dedicate a portion of their
expenditure rate revenue to public safety. The total CY 2024 certified distribution of public safety revenue
is $577.3 M. Approximately $67.2 M is dedicated to fund a public safety answering point.
State Agencies Affected: Department of Local Government Finance.
Local Agencies Affected: County units and other eligible taxing units in counties that allocate a portion of
their expenditure rate to public safety; counties that allocate a portion of their expenditure rate to judicial
system expenses.
Information Sources: State Budget Agency, CY 2024 Local Income Tax Certified Distributions; LSA
Property Tax Database.
Fiscal Analyst: James Johnson, 317-232-9869.
SB 33 3