Introduced Version
HOUSE BILL No. 1646
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-1.1-20.6-10; IC 6-2.5-11; IC 6-3.5-12;
IC 6-8.1; IC 36-1-8-5.1; IC 36-7.
Synopsis: Local option sales taxes. Allows counties, cities, and towns
to adopt a local sales tax applicable to tangible personal property
delivered (not by common carrier) within the geographic boundaries of
the political subdivision. Provides that the local option sales tax
revenue may be used for infrastructure improvements. Provides that the
department of state revenue shall maintain several data bases of local
sales tax data associated with the local option sales tax, in accordance
with the requirements of the Streamlined Sales and Use Tax
Agreement. Adds the local option sales tax to the list of local taxes that
may be captured by the state in the case of a local unit failing to make
timely debt payments and sources of revenue that may be used by the
local unit to make debt service payments.
Effective: July 1, 2025.
Isa
January 21, 2025, read first time and referred to Committee on Ways and Means.
2025 IN 1646—LS 7421/DI 125 Introduced
First Regular Session of the 124th General Assembly (2025)
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 2024 Regular Session of the General Assembly.
HOUSE BILL No. 1646
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 6-1.1-20.6-10, AS AMENDED BY P.L.197-2016,
2 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2025]: Sec. 10. (a) As used in this section, "debt service
4 obligations of a political subdivision" refers to:
5 (1) the principal and interest payable during a calendar year on
6 bonds; and
7 (2) lease rental payments payable during a calendar year on
8 leases;
9 of a political subdivision payable from ad valorem property taxes.
10 (b) Political subdivisions are required by law to fully fund the
11 payment of their debt obligations in an amount sufficient to pay any
12 debt service or lease rentals on outstanding obligations, regardless of
13 any reduction in property tax collections due to the application of tax
14 credits granted under this chapter.
15 (c) Upon the failure of a political subdivision to pay any of the
16 political subdivision's debt service obligations during a calendar year
17 when due, the treasurer of state, upon being notified of the failure by
2025 IN 1646—LS 7421/DI 125 2
1 a claimant, shall pay the unpaid debt service obligations that are due
2 from money in the possession of the state that would otherwise be
3 available for distribution to the political subdivision under any other
4 law, deducting the payment from the amount distributed. A deduction
5 under this subsection must be made:
6 (1) first from:
7 (A) local income tax distributions under IC 6-3.6-9; and
8 (B) local option gross retail tax distributions under
9 IC 6-3.5-12; and
10 (2) second from any other undistributed funds of the political
11 subdivision in the possession of the state.
12 (d) This section shall be interpreted liberally so that the state shall
13 to the extent legally valid ensure that the debt service obligations of
14 each political subdivision are paid when due. However, this section
15 does not create a debt of the state.
16 SECTION 2. IC 6-2.5-11-2 IS AMENDED TO READ AS
17 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 2. As used in this
18 chapter:
19 (1) "Agreement" means the Streamlined Sales and Use Tax
20 Agreement.
21 (2) "Certified automated system" means software certified jointly
22 by the states that are signatories to the agreement to calculate the
23 tax imposed by each jurisdiction on a transaction, to determine
24 the amount of tax to remit to the appropriate state, and to maintain
25 a record of the transaction.
26 (3) "Certified service provider" means an agent certified jointly by
27 the states that are signatories to the agreement to perform all of
28 the seller's sales tax functions.
29 (4) "Person" means an individual, a trust, an estate, a fiduciary, a
30 partnership, a limited liability company, a limited liability
31 partnership, a corporation, or any other legal entity.
32 (5) "Sales tax" means:
33 (A) the state gross retail tax levied under IC 6-2.5; and
34 (B) the local option gross retail tax imposed under
35 IC 6-3.5-12.
36 (6) "Seller" means any person making sales, leases, or rentals of
37 personal property or services.
38 (7) "State" means any state of the United States and the District
39 of Columbia.
40 (8) "Use tax" means the use tax levied under IC 6-2.5.
41 SECTION 3. IC 6-2.5-11-13 IS ADDED TO THE INDIANA CODE
42 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
2025 IN 1646—LS 7421/DI 125 3
1 1, 2025]: Sec. 13. (a) As used in this section, "local taxing
2 jurisdiction" means the taxing jurisdiction of a political
3 subdivision.
4 (b) As used in this section, "taxing jurisdiction" means the
5 geographical territory of the state or a political subdivision in
6 which a sales or use tax is in effect.
7 (c) The department shall maintain a data base that describes
8 boundary changes for all local taxing jurisdictions. The data base
9 must include a description of each change and the effective date of
10 the change.
11 (d) The department shall maintain a data base of all sales and
12 use tax rates for each jurisdiction in Indiana that levies a sales or
13 use tax. The state and each political subdivision in the data base
14 must be identified by codes that conform with Federal Information
15 Processing Standards, as developed by the National Institute of
16 Standards and Technology.
17 (e) The department shall maintain a data base that assigns to
18 each five (5) digit and nine (9) digit ZIP code in Indiana the taxing
19 jurisdictions within the ZIP code that levy a sales or use tax in the
20 taxing jurisdiction.
21 (f) The department shall maintain the data bases described in
22 subsections (c) through (e) in accordance with the requirements of
23 the agreement.
24 (g) The department shall allow sellers and certified service
25 providers access to the data bases described in subsections (c)
26 through (e).
27 (h) The department may contract with a vendor to maintain the
28 data bases that the department is required to maintain under this
29 section.
30 SECTION 4. IC 6-2.5-11-14 IS ADDED TO THE INDIANA CODE
31 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
32 1, 2025]: Sec. 14. (a) Except as provided in subsection (b), a seller
33 or certified service provider is not liable for the tax, penalties, and
34 interest associated with charging and collecting the incorrect
35 amount of sales or use tax for a retail transaction if:
36 (1) the seller or certified service provider has relied on
37 erroneous data provided by the department in the data base
38 described in section 13(e) of this chapter; and
39 (2) the erroneous data provided by the department in the data
40 base described in section 13(e) of this chapter is the reason
41 that the seller or certified service provider charged and
42 collected the incorrect amount of sales or use tax on the retail
2025 IN 1646—LS 7421/DI 125 4
1 transaction.
2 (b) If the department:
3 (1) corrects the errors in the data base described in section
4 13(e) of this chapter; and
5 (2) provides the seller or certified service provider with notice
6 of the corrected data;
7 the relief provided by subsection (a) ceases ten (10) days after the
8 seller or certified service provider receives the department's notice
9 of corrected data.
10 SECTION 5. IC 6-3.5-12 IS ADDED TO THE INDIANA CODE
11 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
12 JULY 1, 2025]:
13 Chapter 12. Local Option Gross Retail Tax
14 Sec. 1. Except as otherwise provided in this chapter, the
15 definitions set forth in:
16 (1) IC 6-2.5-1; and
17 (2) IC 36-1-2;
18 apply throughout this chapter.
19 Sec. 2. As used in this chapter, "adopting county or
20 municipality" means a county or municipality that has adopted the
21 local option gross retail tax.
22 Sec. 3. As used in this chapter, "gross retail income" has the
23 meaning set forth in IC 6-2.5-1-5, except that the term does not
24 include taxes imposed under IC 6-2.5 or IC 6-9.
25 Sec. 4. As used in this chapter, "local option gross retail tax
26 district" of an adopting county or municipality means the
27 geographic territory in which the local option gross retail tax
28 adopted by the adopting county or municipality is imposed.
29 Sec. 5. As used in this chapter, "municipality" means a city or
30 town.
31 Sec. 6. (a) Using procedures described in this chapter, the fiscal
32 body of a county or municipality may adopt an ordinance to
33 impose or rescind the local option gross retail tax in the local
34 option gross retail tax district of the county or municipality.
35 (b) Before the fiscal body of a county or municipality may adopt
36 an ordinance to impose or rescind a tax under this chapter, the
37 fiscal body of the county or municipality must hold a public
38 hearing on the proposed ordinance. The fiscal body of the county
39 or municipality must provide notice to the public in accordance
40 with IC 5-3-1 of the date, time, and place of the public hearing.
41 Sec. 7. (a) An ordinance imposing the local option gross retail
42 tax under this chapter must specify the tax rate to be imposed
2025 IN 1646—LS 7421/DI 125 5
1 under this chapter, not to exceed one percent (1%).
2 (b) An ordinance imposing the local option gross retail tax
3 under this chapter must specify the date the local option gross
4 retail tax takes effect. A tax imposed under this chapter must take
5 effect on the first day of a calendar quarter. A tax imposed under
6 this chapter may not take effect until at least sixty (60) days after
7 the date the ordinance imposing the tax is adopted.
8 (c) An ordinance to rescind the local option gross retail tax must
9 specify the date the rescission of the tax takes effect.
10 Sec. 8. (a) An ordinance imposing the local option gross retail
11 tax under this chapter must specify the boundaries of the county or
12 municipality on the effective date of the local option gross retail
13 tax. The boundaries of the county or municipality on the effective
14 date of the local option gross retail tax are the initial boundaries of
15 the local option gross retail tax district of the county or
16 municipality.
17 (b) If at any time the boundaries of an adopting county or
18 municipality do not coincide with the boundaries of the local option
19 gross retail tax district of the adopting county or municipality, the
20 fiscal body of an adopting county or municipality may adopt an
21 ordinance to alter the boundaries of the local option gross retail tax
22 district to coincide with the boundaries of the adopting county or
23 municipality.
24 (c) An ordinance adopted under subsection (b) must specify the
25 date on which the altered boundaries of the local option gross retail
26 tax district take effect. The altered boundaries of the local option
27 gross retail tax district must take effect on the first day of a
28 calendar quarter. The altered boundaries of the local option gross
29 retail tax district may not take effect until at least sixty (60) days
30 after the date on which the ordinance is adopted.
31 (d) An ordinance adopted under subsection (b) must specify the
32 changes to the boundaries of the local option gross retail tax
33 district of the adopting county.
34 Sec. 9. (a) If the fiscal body of a county or municipality adopts
35 an ordinance under this chapter, the fiscal body of the county or
36 municipality shall immediately send a certified copy of the
37 ordinance to the department.
38 (b) If:
39 (1) the fiscal body of a county or municipality adopts an
40 ordinance to impose the local option gross retail tax under
41 section 6 of this chapter; or
42 (2) the fiscal body of an adopting county or municipality
2025 IN 1646—LS 7421/DI 125 6
1 adopts an ordinance to change the boundaries of the adopting
2 municipality's local option gross retail tax district under
3 section 8 of this chapter;
4 the fiscal body shall immediately transmit information concerning
5 the boundaries of the local option gross retail tax district to the
6 department in an electronic format prescribed by the department.
7 Sec. 10. (a) A tax imposed under this chapter by the fiscal body
8 of an adopting county or municipality applies only to a retail
9 transaction that:
10 (1) is subject to the state gross retail tax; and
11 (2) is sourced to the local option gross retail tax district of the
12 adopting county or municipality under the sourcing rules of
13 IC 6-2.5.
14 (b) Subsection (a) applies to a local option gross retail tax
15 throughout the period an ordinance imposing the local option gross
16 retail tax is in effect. An amendment of the state gross retail tax
17 applies also to the local option gross retail tax in effect in an
18 adopting county or municipality on the date the amendment to the
19 state gross retail tax becomes effective.
20 Sec. 11. (a) This section applies to a retail transaction that is
21 subject to the local option gross retail tax.
22 (b) The local option gross retail tax is measured by the gross
23 retail income received by a retail merchant in a retail unitary
24 transaction and is imposed at the rate set forth in the ordinance
25 imposing the tax. The rate must be stated as a whole percentage
26 point.
27 (c) A retail merchant may apply the rounding rule of
28 IC 6-2.5-2-2(b) to the unrounded total of:
29 (1) the state gross retail tax; plus
30 (2) the local option gross retail tax;
31 that is imposed on a retail transaction.
32 Sec. 12. (a) A person who receives goods or services in a retail
33 transaction that is taxed under this chapter is liable for the tax.
34 The person shall pay the tax to the retail merchant as a separate
35 amount added to the consideration for the goods or services. The
36 retail merchant shall collect the tax as an agent for the state and
37 the county. The tax imposed under this chapter shall be imposed,
38 paid, and collected in the same manner in which the state gross
39 retail tax is imposed, paid, and collected under IC 6-2.5.
40 (b) A county or municipality that imposes the local option gross
41 retail tax under this chapter is prohibited from conducting an audit
42 of any retail merchant or purchaser for the purpose of determining
2025 IN 1646—LS 7421/DI 125 7
1 whether the proper amount of local option gross retail tax has been
2 collected or paid.
3 Sec. 13. (a) A special account within the state general fund shall
4 be established for each adopting county or municipality that
5 imposes the local option gross retail tax. Revenue collected under
6 this chapter within an adopting county or municipality shall be
7 deposited in that adopting county's or municipality's account in the
8 state general fund.
9 (b) Income earned on money held in an account under
10 subsection (a) becomes a part of that account.
11 (c) Revenue remaining in an account established under
12 subsection (a) at the end of a fiscal year does not revert to the state
13 general fund.
14 Sec. 14. (a) Revenue derived from the imposition of the local
15 option gross retail tax shall, in the manner prescribed by this
16 section, be distributed to the adopting county or municipality that
17 imposed it. Revenue in a county's or municipality's special account
18 is appropriated to make the distributions required by this chapter.
19 (b) Before the fifteenth business day of each month, the state
20 comptroller shall distribute the amount specified in subsection (c)
21 to the fiscal officer of each adopting county or municipality.
22 (c) The amount to be distributed each month to an adopting
23 county or municipality under this section is the amount
24 accumulated at the end of the previous month in the adopting
25 county's or municipality's special account established under section
26 13 of this chapter.
27 (d) The state comptroller may adjust the amount specified in
28 subsection (c) to account for mathematical or clerical errors
29 involving a previous distribution under this section. At the
30 discretion of the state comptroller, an adjustment under this
31 section may be prorated over two (2) or more future distributions
32 under this section.
33 Sec. 15. An adopting county or municipality may use local
34 option gross retail tax revenue received in a distribution under
35 section 14 of this chapter only for infrastructure improvements.
36 SECTION 6. IC 6-8.1-1-1, AS AMENDED BY P.L.1-2023,
37 SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
38 JULY 1, 2025]: Sec. 1. "Listed taxes" or "taxes" includes only the
39 pari-mutuel taxes (IC 4-31-9-3 through IC 4-31-9-5); the supplemental
40 wagering tax (IC 4-33-12); the riverboat wagering tax (IC 4-33-13); the
41 slot machine wagering tax (IC 4-35-8); the type II gambling game
42 excise tax (IC 4-36-9); the gross income tax (IC 6-2.1) (repealed); the
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1 utility receipts and utility services use taxes (IC 6-2.3) (repealed); the
2 state gross retail and use taxes (IC 6-2.5); the adjusted gross income tax
3 (IC 6-3); the pass through entity tax (IC 6-3-2.1); the supplemental net
4 income tax (IC 6-3-8) (repealed); the county adjusted gross income tax
5 (IC 6-3.5-1.1) (repealed); the county option income tax (IC 6-3.5-6)
6 (repealed); the county economic development income tax (IC 6-3.5-7)
7 (repealed); the local option gross retail tax (IC 6-3.5-12); the local
8 income tax (IC 6-3.6); the auto rental excise tax (IC 6-6-9); the
9 financial institutions tax (IC 6-5.5); the gasoline tax (IC 6-6-1.1); the
10 special fuel tax (IC 6-6-2.5); the motor carrier fuel tax (IC 6-6-4.1); a
11 motor fuel tax collected under a reciprocal agreement under IC 6-8.1-3;
12 the vehicle excise tax (IC 6-6-5); the aviation fuel excise tax (IC
13 6-6-13); the commercial vehicle excise tax (IC 6-6-5.5); the excise tax
14 imposed on recreational vehicles and truck campers (IC 6-6-5.1); the
15 hazardous waste disposal tax (IC 6-6-6.6) (repealed); the heavy
16 equipment rental excise tax (IC 6-6-15); the vehicle sharing excise tax
17 (IC 6-6-16); the cigarette tax (IC 6-7-1); the closed system cartridge tax
18 (IC 6-7-2-7.5); the electronic cigarette tax (IC 6-7-4); the beer excise
19 tax (IC 7.1-4-2); the liquor excise tax (IC 7.1-4-3); the wine excise tax
20 (IC 7.1-4-4); the hard cider excise tax (IC 7.1-4-4.5); the petroleum
21 severance tax (IC 6-8-1); the various innkeeper's taxes (IC 6-9); the
22 various food and beverage taxes (IC 6-9); the county admissions tax
23 (IC 6-9-13 and IC 6-9-28); the oil inspection fee (IC 16-44-2); the
24 penalties assessed for oversize vehicles (IC 9-20-3 and IC 9-20-18); the
25 fees and penalties assessed for overweight vehicles (IC 9-20-4 and
26 IC 9-20-18); and any other tax or fee that the department is required to
27 collect or administer.
28 SECTION 7. IC 6-8.1-3-7.1, AS AMENDED BY P.L.146-2020,
29 SECTION 36, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
30 JULY 1, 2025]: Sec. 7.1. (a) As used in this section, "fiscal officer"
31 means:
32 (1) a fiscal officer (as defined in IC 36-1-2-7); and
33 (2) in the case of a county, the county treasurer.
34 (b) The department shall enter into an agreement with the fiscal
35 officer of an entity that has adopted a local option gross retail tax
36 under IC 6-3.5-12, an innkeeper's tax, a food and beverage tax, or an
37 admissions tax under IC 6-9 to furnish the fiscal officer annually with:
38 (1) the name of each business collecting the taxes listed in this
39 subsection; and
40 (2) the amount of money collected from each business.
41 For an innkeeper's tax or food and beverage tax remitted through a
42 marketplace facilitator, the information must include the name of each
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1 business and the amount of money collected from each business by a
2 marketplace facilitator acting on behalf of the business.
3 (c) The agreement must provide that the department must provide
4 the information in an electronic format that the fiscal officer can use.
5 (d) The agreement must include a provision that, unless in
6 accordance with a judicial order, the fiscal officer, employees of the
7 fiscal officer, former employees of the fiscal officer, counsel of the
8 fiscal officer, agents of the fiscal officer, or any other person may not
9 divulge the names of the businesses, the amount of taxes paid by the
10 businesses, or any other information disclosed to the fiscal officer by
11 the department.
12 (e) The department shall also enter into an agreement with the fiscal
13 officer of a capital improvement board of managers:
14 (1) created under IC 36-10-8 or IC 36-10-9; and
15 (2) that is responsible for expenditure of funds from:
16 (A) an innkeeper's tax, a food and beverage tax, or an
17 admissions tax under IC 6-9;
18 (B) the supplemental auto rental excise tax under IC 6-6-9.7;
19 or
20 (C) the state gross retail taxes allocated to a professional sports
21 development area fund, a sports and convention facilities
22 operating fund, or other fund under IC 36-7-31 or
23 IC 36-7-31.3;
24 to furnish the fiscal officer annually with the name of each business
25 collecting the taxes listed in this subsection, and the amount of money
26 collected from each business. An agreement with a fiscal officer under
27 this subsection must include a nondisclosure provision the same as is
28 required for a fiscal officer under subsection (d).
29 SECTION 8. IC 6-8.1-7-1, AS AMENDED BY P.L.118-2024,
30 SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
31 JULY 1, 2025]: Sec. 1. (a) This subsection does not apply to the
32 disclosure of information concerning a conviction on a tax evasion
33 charge. Unless in accordance with a judicial order or as otherwise
34 provided in this chapter, the department, its employees, former
35 employees, counsel, agents, or any other person may not divulge the
36 amount of tax paid by any taxpayer, terms of a settlement agreement
37 executed between a taxpayer and the department, investigation records,
38 investigation reports, or any other information disclosed by the reports
39 filed under the provisions of the law relating to any of the listed taxes,
40 including required information derived from a federal return, except to
41 any of the following when it is agreed that the information is to be
42 confidential and to be used solely for official purposes:
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1 (1) Members and employees of the department.
2 (2) The governor.
3 (3) A member of the general assembly or an employee of the
4 house of representatives or the senate when acting on behalf of a
5 taxpayer located in the member's legislative district who has
6 provided sufficient information to the member or employee for
7 the department to determine that the member or employee is
8 acting on behalf of the taxpayer.
9 (4) An employee of the legislative services agency to carry out the
10 responsibilities of the legislative services agency under
11 IC 2-5-1.1-7 or another law.
12 (5) The attorney general or any other legal representative of the
13 state in any action in respect to the amount of tax due under the
14 provisions of the law relating to any of the listed taxes.
15 (6) Any authorized officers of the United States.
16 (b) The information described in subsection (a) may be revealed
17 upon the receipt of a certified request of any designated officer of the
18 state tax department of any other state, district, territory, or possession
19 of the United States when:
20 (1) the state, district, territory, or possession permits the exchange
21 of like information with the taxing officials of the state; and
22 (2) it is agreed that the information is to be confidential and to be
23 used solely for tax collection purposes.
24 (c) The information described in subsection (a) relating to a person
25 on public welfare or a person who has made application for public
26 welfare may be revealed to the director of the division of family
27 resources, and to any director of a county office of the division of
28 family resources located in Indiana, upon receipt of a written request
29 from either director for the information. The information shall be
30 treated as confidential by the directors. In addition, the information
31 described in subsection (a) relating to a person who has been
32 designated as an absent parent by the state Title IV-D agency shall be
33 made available to the state Title IV-D agency upon request. The
34 information shall be subject to the information safeguarding provisions
35 of the state and federal Title IV-D programs.
36 (d) The name, address, Social Security number, and place of
37 employment relating to any individual who is delinquent in paying
38 educational loans owed to a postsecondary educational institution may
39 be revealed to that institution if it provides proof to the department that
40 the individual is delinquent in paying for educational loans. This
41 information shall be provided free of charge to approved postsecondary
42 educational institutions (as defined by IC 21-7-13-6(a)). The
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1 department shall establish fees that all other institutions must pay to the
2 department to obtain information under this subsection. However, these
3 fees may not exceed the department's administrative costs in providing
4 the information to the institution.
5 (e) The information described in subsection (a) relating to reports
6 submitted under IC 6-6-1.1-502 concerning the number of gallons of
7 gasoline sold by a distributor and IC 6-6-2.5 concerning the number of
8 gallons of special fuel sold by a supplier and the number of gallons of
9 special fuel exported by a licensed exporter or imported by a licensed
10 transporter may be released by the commissioner upon receipt of a
11 written request for the information.
12 (f) The information described in subsection (a) may be revealed
13 upon the receipt of a written request from the administrative head of a
14 state agency of Indiana when:
15 (1) the state agency shows an official need for the information;
16 and
17 (2) the administrative head of the state agency agrees that any
18 information released will be kept confidential and will be used
19 solely for official purposes.
20 (g) The information described in subsection (a) may be revealed
21 upon the receipt of a written request from the chief law enforcement
22 officer of a state or local law enforcement agency in Indiana when it is
23 agreed that the information is to be confidential and to be used solely
24 for official purposes.
25 (h) The name and address of retail merchants, including township,
26 as specified in IC 6-2.5-8-1(k) may be released solely for tax collection
27 purposes to township assessors and county assessors.
28 (i) The department shall notify the appropriate innkeeper's tax
29 board, bureau, or commission that a taxpayer is delinquent in remitting
30 innkeepers' taxes under IC 6-9.
31 (j) All information relating to the delinquency or evasion of the
32 vehicle excise tax may be disclosed to the bureau of motor vehicles in
33 Indiana and may be disclosed to another state, if the information is
34 disclosed for the purpose of the enforcement and collection of the taxes
35 imposed by IC 6-6-5.
36 (k) All information relating to the delinquency or evasion of
37 commercial vehicle excise taxes payable to the bureau of motor
38 vehicles in Indiana may be disclosed to the bureau and may be
39 disclosed to another state, if the information is disclosed for the
40 purpose of the enforcement and collection of the taxes imposed by
41 IC 6-6-5.5.
42 (l) All information relating to the delinquency or evasion of
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1 commercial vehicle excise taxes payable under the International
2 Registration Plan may be disclosed to another state, if the information
3 is disclosed for the purpose of the enforcement and collection of the
4 taxes imposed by IC 6-6-5.5.
5 (m) All information relating to the delinquency or evasion of the
6 excise taxes imposed on recreational vehicles and truck campers that
7 are payable to the bureau of motor vehicles in Indiana may be disclosed
8 to the bureau and may be disclosed to another state if the information
9 is disclosed for the purpose of the enforcement and collection of the
10 taxes imposed by IC 6-6-5.1.
11 (n) This section does not apply to:
12 (1) the beer excise tax, including brand and packaged type (IC
13 7.1-4-2);
14 (2) the liquor excise tax (IC 7.1-4-3);
15 (3) the wine excise tax (IC 7.1-4-4);
16 (4) the hard cider excise tax (IC 7.1-4-4.5);
17 (5) the vehicle excise tax (IC 6-6-5);
18 (6) the commercial vehicle excise tax (IC 6-6-5.5); and
19 (7) the fees under IC 13-23.
20 (o) The name and business address of retail merchants within each
21 county that sell tobacco products may be released to the division of
22 mental health and addiction and the alcohol and tobacco commission
23 solely for the purpose of the list prepared under IC 6-2.5-6-14.2.
24 (p) The name and business address of a person licensed by the
25 department under IC 6-6 or IC 6-7, or issued a registered retail
26 merchant's certificate under IC 6-2.5, may be released for the purpose
27 of reporting the status of the person's license or certificate.
28 (q) The department may release information concerning total
29 incremental tax amounts under:
30 (1) IC 5-28-26;
31 (2) IC 36-7-13;
32 (3) IC 36-7-26;
33 (4) IC 36-7-27;
34 (5) IC 36-7-31;
35 (6) IC 36-7-31.3; or
36 (7) any other statute providing for the calculation of incremental
37 state taxes that will be distributed to or retained by a political
38 subdivision or other entity;
39 to the fiscal officer of the political subdivision or other entity that
40 established the district or area from which the incremental taxes were
41 received if that fiscal officer enters into an agreement with the
42 department specifying that the political subdivision or other entity will
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1 use the information solely for official purposes.
2 (r) The department may release the information as required in
3 IC 6-8.1-3-7.1 concerning:
4 (1) an innkeeper's tax, a food and beverage tax, or an admissions
5 tax under IC 6-9;
6 (2) the supplemental auto rental excise tax under IC 6-6-9.7; and
7 (3) the covered taxes allocated to a professional sports
8 development area fund, sports and convention facilities operating
9 fund, or other fund under IC 36-7-31 and IC 36-7-31.3.
10 (s) Information concerning state gross retail tax exemption
11 certificates that relate to a person who is exempt from the state gross
12 retail tax under IC 6-2.5-4-5 may be disclosed to a power subsidiary (as
13 defined in IC 6-2.5-1-22.5) or a person selling the services or
14 commodities listed in IC 6-2.5-4-5 for the purpose of enforcing and
15 collecting the state gross retail and use taxes under IC 6-2.5.
16 (t) The department may release a statement of tax withholding or
17 other tax information statement provided on behalf of a taxpayer to the
18 department to:
19 (1) the taxpayer on whose behalf the tax withholding or other tax
20 information statement was provided to the department;
21 (2) the taxpayer's spouse, if:
22 (A) the taxpayer is deceased or incapacitated; and
23 (B) the taxpayer's spouse is filing a joint income tax return
24 with the taxpayer; or
25 (3) an administrator, executor, trustee, or other fiduciary acting on
26 behalf of the taxpayer if the taxpayer is deceased.
27 (u) Information related to a listed tax regarding a taxpayer may be
28 disclosed to an individual without a power of attorney under
29 IC 6-8.1-3-8(a)(2) if:
30 (1) the individual is authorized to file returns and remit payments
31 for one (1) or more listed taxes on behalf of the taxpayer through
32 the department's online tax system before September 8, 2020;
33 (2) the information relates to a listed tax described in subdivision
34 (1) for which the individual is authorized to file returns and remit
35 payments;
36 (3) the taxpayer has been notified by the department of the
37 individual's ability to access the taxpayer's information for the
38 listed taxes described in subdivision (1) and the taxpayer has not
39 objected to the individual's access;
40 (4) the individual's authorization or right to access the taxpayer's
41 information for a listed tax described in subdivision (1) has not
42 been withdrawn by the taxpayer; and
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1 (5) disclosure of the information to the individual is not
2 prohibited by federal law.
3 Except as otherwise provided by this article, this subsection does not
4 authorize the disclosure of any correspondence from the department
5 that is mailed or otherwise delivered to the taxpayer relating to the
6 specified listed taxes for which the individual was given authorization
7 by the taxpayer. The department shall establish a date, which may be
8 earlier but not later than September 1, 2023, after which a taxpayer's
9 information concerning returns and remittances for a listed tax may not
10 be disclosed to an individual without a power of attorney under
11 IC 6-8.1-3-8(a)(2) by providing notice to the affected taxpayers and
12 previously authorized individuals, including notification published on
13 the department's website. After the earlier of the date established by the
14 department or September 1, 2023, the department may not disclose a
15 taxpayer's information concerning returns and remittances for a listed
16 tax to an individual unless the individual has a power of attorney under
17 IC 6-8.1-3-8(a)(2) or the disclosure is otherwise allowed under this
18 article.
19 (v) The department may publish a list of persons, corporations, or
20 other entities that qualify or have qualified for an exemption for sales
21 tax under IC 6-2.5-5-16, IC 6-2.5-5-25, or IC 6-2.5-5-26, or otherwise
22 provide information regarding a person's, corporation's, or entity's
23 exemption status under IC 6-2.5-5-16, IC 6-2.5-5-25, or IC 6-2.5-5-26.
24 For purposes of this subsection, information that may be disclosed
25 includes:
26 (1) any federal identification number or other identification
27 number for the entity assigned by the department;
28 (2) any expiration date of an exemption under IC 6-2.5-5-25;
29 (3) whether any sales tax exemption has expired or has been
30 revoked by the department; and
31 (4) any other information reasonably necessary for a recipient of
32 an exemption certificate to determine if an exemption certificate
33 is valid.
34 (w) The department may share a taxpayer's name and other personal
35 identification information with a tax preparer or tax preparation
36 software provider in cases where the department suspects that a
37 fraudulent return has been filed on behalf of a taxpayer and the
38 department suspects that the system of a taxpayer's previous year tax
39 preparer or tax preparation software provider has been breached.
40 (x) The department shall notify the appropriate county
41 treasurer that a taxpayer is delinquent in remitting local option
42 gross retail taxes collected under IC 6-3.5-12.
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1 SECTION 9. IC 36-1-8-5.1, AS AMENDED BY P.L.38-2021,
2 SECTION 79, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2025]: Sec. 5.1. (a) A political subdivision may establish a
4 rainy day fund by the adoption of:
5 (1) an ordinance, in the case of a county, city, or town; or
6 (2) a resolution, in the case of any other political subdivision.
7 (b) An ordinance or a resolution adopted under this section must
8 specify the following:
9 (1) The purposes of the rainy day fund.
10 (2) The sources of funding for the rainy day fund, which may
11 include the following:
12 (A) Unused and unencumbered funds under:
13 (i) section 5 of this chapter;
14 (ii) IC 6-3.5-12-15; or
15 (ii) (iii) IC 6-3.6-9-15.
16 (B) Any other funding source:
17 (i) specified in the ordinance or resolution adopted under
18 this section; and
19 (ii) not otherwise prohibited by law.
20 (c) The rainy day fund is subject to the same appropriation process
21 as other funds that receive tax money.
22 (d) In any fiscal year, a political subdivision may, at any time, do the
23 following:
24 (1) Transfer any unused and unencumbered funds specified in
25 subsection (b)(2)(A) from any fiscal year to the rainy day fund.
26 (2) Transfer any other unobligated cash balances from any fiscal
27 year that are not otherwise identified in subsection (b)(2)(A) or
28 section 5 of this chapter to the rainy day fund as long as the
29 transfer satisfies the following requirements:
30 (A) The amount of the transfer is authorized by and identified
31 in an ordinance or resolution.
32 (B) The amount of the transfer is not more than:
33 (i) before January 1, 2021, ten percent (10%);
34 (ii) after December 31, 2020, and before January 1, 2025,
35 fifteen percent (15%); and
36 (iii) after December 31, 2024, ten percent (10%);
37 of the political subdivision's total annual budget adopted under
38 IC 6-1.1-17 for that fiscal year.
39 (C) The transfer is not made from a debt service fund.
40 (e) A political subdivision may use only the funding sources
41 specified in subsection (b)(2)(A) or in the ordinance or resolution
42 establishing the rainy day fund. The political subdivision may adopt a
2025 IN 1646—LS 7421/DI 125 16
1 subsequent ordinance or resolution authorizing the use of another
2 funding source.
3 (f) The department of local government finance may not reduce the
4 actual or maximum permissible levy of a political subdivision as a
5 result of a balance in the rainy day fund of the political subdivision.
6 (g) A county, city, or town may at any time, by ordinance or
7 resolution, transfer to:
8 (1) its general fund; or
9 (2) any other appropriated funds of the county, city, or town;
10 money that has been deposited in the rainy day fund of the county, city,
11 or town.
12 (h) A school corporation may at any time, by resolution, transfer to
13 its education fund or operations fund money that has been deposited in
14 its rainy day fund.
15 SECTION 10. IC 36-7-13-3.8, AS AMENDED BY P.L.197-2016,
16 SECTION 125, IS AMENDED TO READ AS FOLLOWS
17 [EFFECTIVE JULY 1, 2025]: Sec. 3.8. As used in this chapter, "state
18 and local income taxes" means taxes imposed under any of the
19 following:
20 (1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax).
21 (2) IC 6-3.6 (local income tax).
22 (3) IC 6-3.5-12 (local option gross retail tax).
23 SECTION 11. IC 36-7-30-21, AS AMENDED BY P.L.197-2016,
24 SECTION 132, IS AMENDED TO READ AS FOLLOWS
25 [EFFECTIVE JULY 1, 2025]: Sec. 21. (a) Notwithstanding any other
26 law, the legislative body may pledge revenues received or to be
27 received by the unit from:
28 (1) the unit's local option gross retail tax distribution under
29 IC 6-3.5-12;
30 (1) (2) the unit's additional revenue from the local income tax that
31 is designated for certified shares or economic development under
32 IC 6-3.6-6;
33 (2) (3) any other source legally available to the unit for the
34 purposes of this chapter; or
35 (3) (4) any combination of revenues under subdivisions (1)
36 through (2); (3);
37 in any amount to pay amounts payable under section 18 or 19 of this
38 chapter.
39 (b) The legislative body may covenant to adopt an ordinance to
40 increase revenues at the time it is necessary to raise funds to pay any
41 amounts payable under section 18 or 19 of this chapter.
42 (c) The reuse authority may pledge revenues received or to be
2025 IN 1646—LS 7421/DI 125 17
1 received from any source legally available to the reuse authority for the
2 purposes of this chapter in any amount to pay amounts payable under
3 section 18 or 19 of this chapter.
4 (d) The pledge or covenant under this section may be for the term
5 of the bonds issued under section 18 of this chapter, the term of a lease
6 entered into under section 19 of this chapter, or for a shorter period as
7 determined by the legislative body. Money pledged by the legislative
8 body under this section shall be considered revenues or other money
9 available to the reuse authority under sections 18 through 19 of this
10 chapter.
11 (e) The general assembly covenants not to impair this pledge or
12 covenant as long as any bonds issued under section 18 of this chapter
13 are outstanding or as long as any lease entered into under section 19 of
14 this chapter is still in effect. The pledge or covenant shall be enforced
15 as provided in IC 5-1-14-4.
16 SECTION 12. IC 36-7-30.5-26, AS AMENDED BY P.L.197-2016,
17 SECTION 133, IS AMENDED TO READ AS FOLLOWS
18 [EFFECTIVE JULY 1, 2025]: Sec. 26. (a) Notwithstanding any other
19 law, the legislative body of a unit may pledge revenues received or to
20 be received by the unit from:
21 (1) the unit's local option gross retail tax distribution under
22 IC 6-3.5-12;
23 (1) (2) the unit's additional revenue from the local income tax that
24 is designated for certified shares or economic development under
25 IC 6-3.6-6;
26 (2) (3) any other source legally available to the unit for the
27 purposes of this chapter; or
28 (3) (4) any combination of revenues under subdivisions (1)
29 through (2); (3);
30 in any amount to pay amounts payable under section 23 or 24 of this
31 chapter.
32 (b) The legislative body may covenant to adopt an ordinance to
33 increase revenues at the time it is necessary to raise funds to pay any
34 amounts payable under section 23 or 24 of this chapter.
35 (c) The development authority may pledge revenues received or to
36 be received from any source legally available to the development
37 authority for the purposes of this chapter in any amount to pay amounts
38 payable under section 23 or 24 of this chapter.
39 (d) The pledge or covenant under this section may be for:
40 (1) the term of the bonds issued under section 23 of this chapter;
41 (2) the term of a lease entered into under section 24 of this
42 chapter; or
2025 IN 1646—LS 7421/DI 125 18
1 (3) a shorter period as determined by the legislative body.
2 Money pledged by the legislative body under this section shall be
3 considered revenues or other money available to the development
4 authority under sections 23 through 24 of this chapter.
5 (e) The general assembly covenants not to impair this pledge or
6 covenant as long as any bonds issued under section 23 of this chapter
7 are outstanding or as long as any lease entered into under section 24 of
8 this chapter is still in effect. The pledge or covenant shall be enforced
9 as provided in IC 5-1-14-4.
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