Indiana 2025 Regular Session

Indiana House Bill HB1469 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. 1469
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 6-3.6-9-15.
7	7	Synopsis: Local income tax supplemental distributions. Changes the
8	8	local income tax threshold percentages of a county trust account for
9	9	purposes of determining whether a county shall receive a supplemental
10	10	distribution.
11	11	Effective: January 1, 2025 (retroactive).
12	12	Porter
13	13	January 21, 2025, read first time and referred to Committee on Ways and Means.
14	14	2025 IN 1469—LS 6415/DI 116 Introduced
15	15	First Regular Session of the 124th General Assembly (2025)
16	16	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
17	17	Constitution) is being amended, the text of the existing provision will appear in this style type,
18	18	additions will appear in this style type, and deletions will appear in this style type.
19	19	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
20	20	provision adopted), the text of the new provision will appear in this style type. Also, the
21	21	word NEW will appear in that style type in the introductory clause of each SECTION that adds
22	22	a new provision to the Indiana Code or the Indiana Constitution.
23	23	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
24	24	between statutes enacted by the 2024 Regular Session of the General Assembly.
25	25	HOUSE BILL No. 1469
26	26	A BILL FOR AN ACT to amend the Indiana Code concerning
27	27	taxation.
28	28	Be it enacted by the General Assembly of the State of Indiana:
29	29	1 SECTION 1. IC 6-3.6-9-15, AS AMENDED BY P.L.239-2023,
30	30	2 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
31	31	3 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 15. (a) If the budget
32	32	4 agency determines that the balance in a county trust account exceeds:
33	33	5 (1) for a determination year ending before January 1, 2026,
34	34	6 fifteen percent (15%);
35	35	7 (2) for a determination year beginning after December 31,
36	36	8 2025, and ending before January 1, 2027, twelve and
37	37	9 five-tenths percent (12.5%); and
38	38	10 (3) for a determination year beginning after December 31,
39	39	11 2026, ten percent (10%);
40	40	12 of the certified distributions to be made to the county in the
41	41	13 determination year, the budget agency shall make a supplemental
42	42	14 distribution to the county from the county's trust account. The budget
43	43	15 agency shall use the trust account balance as of December 31 of the
44	44	16 year that precedes the determination year by two (2) years (referred to
45	45	17 as the "trust account balance year" in this section).
46	46	2025 IN 1469—LS 6415/DI 116 2
47	47	1 (b) A supplemental distribution described in subsection (a) must be:
48	48	2 (1) made at the same time as the determinations are provided to
49	49	3 the county auditor under subsection (d)(3); and
50	50	4 (2) allocated in the same manner as certified distributions for the
51	51	5 purposes described in this article.
52	52	6 (c) The amount of a supplemental distribution described in
53	53	7 subsection (a) is equal to the amount by which:
54	54	8 (1) the balance in the county trust account; minus
55	55	9 (2) the amount of any supplemental or special distribution that has
56	56	10 not yet been accounted for in the last known balance of the
57	57	11 county's trust account;
58	58	12 exceeds, for a determination year ending before January 1, 2026,
59	59	13 fifteen percent (15%), for a determination year beginning after
60	60	14 December 31, 2025, and ending before January 1, 2027, twelve and
61	61	15 five-tenths percent (12.5%), and for a determination year
62	62	16 beginning after December 31, 2026, ten percent (10%) of the
63	63	17 certified distributions to be made to the county in the determination
64	64	18 year.
65	65	19 (d) For a county that qualifies for a supplemental distribution under
66	66	20 this section in a year, the following apply:
67	67	21 (1) Before February 15, the budget agency shall update the
68	68	22 information described in section 9 of this chapter to include the
69	69	23 excess account balances to be distributed under this section.
70	70	24 (2) Before May 2, the budget agency shall provide the amount of
71	71	25 the supplemental distribution for the county to the department of
72	72	26 local government finance and to the county auditor.
73	73	27 (3) The department of local government finance shall determine
74	74	28 for the county and each taxing unit within the county:
75	75	29 (A) the amount and allocation of the supplemental distribution
76	76	30 attributable to the taxes that were imposed as of December 31
77	77	31 of the trust account balance year, including any specific
78	78	32 distributions for that year; and
79	79	33 (B) the amount of the allocation for each of the purposes set
80	80	34 forth in this article, using the allocation percentages in effect
81	81	35 in the trust account balance year.
82	82	36 The department of local government finance shall provide these
83	83	37 determinations to the county auditor before May 16 of the
84	84	38 determination year.
85	85	39 (4) Before June 1, the county auditor shall distribute to each
86	86	40 taxing unit the amount of the supplemental distribution that is
87	87	41 allocated to the taxing unit under subdivision (3). However, for a
88	88	42 county with a former tax to provide for a levy freeze under
89	89	2025 IN 1469—LS 6415/DI 116 3
90	90	1 IC 6-3.6-11-1, the supplemental distribution shall first be
91	91	2 distributed as determined in any resolution adopted under
92	92	3 IC 6-3.6-11-1(d).
93	93	4 For determinations before 2019, the tax rates in effect under and the
94	94	5 allocation methods specified in the former income tax laws shall be
95	95	6 used for the determinations under subdivision (3).
96	96	7 (e) For any part of a supplemental distribution attributable to
97	97	8 property tax credits under a former income tax or IC 6-3.6-5, the
98	98	9 adopting body for the county may allocate the supplemental
99	99	10 distribution to property tax credits for not more than the three (3) years
100	100	11 after the year the supplemental distribution is received.
101	101	12 (f) Any income earned on money held in a trust account established
102	102	13 for a county under this chapter shall be deposited in that trust account.
103	103	14 SECTION 2. An emergency is declared for this act.
104	104	2025 IN 1469—LS 6415/DI 116