Indiana 2025 Regular Session

Indiana House Bill HB1646 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. 1646
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 6-1.1-20.6-10; IC 6-2.5-11; IC 6-3.5-12;
7	7	IC 6-8.1; IC 36-1-8-5.1; IC 36-7.
8	8	Synopsis: Local option sales taxes. Allows counties, cities, and towns
9	9	to adopt a local sales tax applicable to tangible personal property
10	10	delivered (not by common carrier) within the geographic boundaries of
11	11	the political subdivision. Provides that the local option sales tax
12	12	revenue may be used for infrastructure improvements. Provides that the
13	13	department of state revenue shall maintain several data bases of local
14	14	sales tax data associated with the local option sales tax, in accordance
15	15	with the requirements of the Streamlined Sales and Use Tax
16	16	Agreement. Adds the local option sales tax to the list of local taxes that
17	17	may be captured by the state in the case of a local unit failing to make
18	18	timely debt payments and sources of revenue that may be used by the
19	19	local unit to make debt service payments.
20	20	Effective: July 1, 2025.
21	21	Isa
22	22	January 21, 2025, read first time and referred to Committee on Ways and Means.
23	23	2025 IN 1646—LS 7421/DI 125 Introduced
24	24	First Regular Session of the 124th General Assembly (2025)
25	25	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
26	26	Constitution) is being amended, the text of the existing provision will appear in this style type,
27	27	additions will appear in this style type, and deletions will appear in this style type.
28	28	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
29	29	provision adopted), the text of the new provision will appear in this style type. Also, the
30	30	word NEW will appear in that style type in the introductory clause of each SECTION that adds
31	31	a new provision to the Indiana Code or the Indiana Constitution.
32	32	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
33	33	between statutes enacted by the 2024 Regular Session of the General Assembly.
34	34	HOUSE BILL No. 1646
35	35	A BILL FOR AN ACT to amend the Indiana Code concerning
36	36	taxation.
37	37	Be it enacted by the General Assembly of the State of Indiana:
38	38	1 SECTION 1. IC 6-1.1-20.6-10, AS AMENDED BY P.L.197-2016,
39	39	2 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
40	40	3 JULY 1, 2025]: Sec. 10. (a) As used in this section, "debt service
41	41	4 obligations of a political subdivision" refers to:
42	42	5 (1) the principal and interest payable during a calendar year on
43	43	6 bonds; and
44	44	7 (2) lease rental payments payable during a calendar year on
45	45	8 leases;
46	46	9 of a political subdivision payable from ad valorem property taxes.
47	47	10 (b) Political subdivisions are required by law to fully fund the
48	48	11 payment of their debt obligations in an amount sufficient to pay any
49	49	12 debt service or lease rentals on outstanding obligations, regardless of
50	50	13 any reduction in property tax collections due to the application of tax
51	51	14 credits granted under this chapter.
52	52	15 (c) Upon the failure of a political subdivision to pay any of the
53	53	16 political subdivision's debt service obligations during a calendar year
54	54	17 when due, the treasurer of state, upon being notified of the failure by
55	55	2025 IN 1646—LS 7421/DI 125 2
56	56	1 a claimant, shall pay the unpaid debt service obligations that are due
57	57	2 from money in the possession of the state that would otherwise be
58	58	3 available for distribution to the political subdivision under any other
59	59	4 law, deducting the payment from the amount distributed. A deduction
60	60	5 under this subsection must be made:
61	61	6 (1) first from:
62	62	7 (A) local income tax distributions under IC 6-3.6-9; and
63	63	8 (B) local option gross retail tax distributions under
64	64	9 IC 6-3.5-12; and
65	65	10 (2) second from any other undistributed funds of the political
66	66	11 subdivision in the possession of the state.
67	67	12 (d) This section shall be interpreted liberally so that the state shall
68	68	13 to the extent legally valid ensure that the debt service obligations of
69	69	14 each political subdivision are paid when due. However, this section
70	70	15 does not create a debt of the state.
71	71	16 SECTION 2. IC 6-2.5-11-2 IS AMENDED TO READ AS
72	72	17 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 2. As used in this
73	73	18 chapter:
74	74	19 (1) "Agreement" means the Streamlined Sales and Use Tax
75	75	20 Agreement.
76	76	21 (2) "Certified automated system" means software certified jointly
77	77	22 by the states that are signatories to the agreement to calculate the
78	78	23 tax imposed by each jurisdiction on a transaction, to determine
79	79	24 the amount of tax to remit to the appropriate state, and to maintain
80	80	25 a record of the transaction.
81	81	26 (3) "Certified service provider" means an agent certified jointly by
82	82	27 the states that are signatories to the agreement to perform all of
83	83	28 the seller's sales tax functions.
84	84	29 (4) "Person" means an individual, a trust, an estate, a fiduciary, a
85	85	30 partnership, a limited liability company, a limited liability
86	86	31 partnership, a corporation, or any other legal entity.
87	87	32 (5) "Sales tax" means:
88	88	33 (A) the state gross retail tax levied under IC 6-2.5; and
89	89	34 (B) the local option gross retail tax imposed under
90	90	35 IC 6-3.5-12.
91	91	36 (6) "Seller" means any person making sales, leases, or rentals of
92	92	37 personal property or services.
93	93	38 (7) "State" means any state of the United States and the District
94	94	39 of Columbia.
95	95	40 (8) "Use tax" means the use tax levied under IC 6-2.5.
96	96	41 SECTION 3. IC 6-2.5-11-13 IS ADDED TO THE INDIANA CODE
97	97	42 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
98	98	2025 IN 1646—LS 7421/DI 125 3
99	99	1 1, 2025]: Sec. 13. (a) As used in this section, "local taxing
100	100	2 jurisdiction" means the taxing jurisdiction of a political
101	101	3 subdivision.
102	102	4 (b) As used in this section, "taxing jurisdiction" means the
103	103	5 geographical territory of the state or a political subdivision in
104	104	6 which a sales or use tax is in effect.
105	105	7 (c) The department shall maintain a data base that describes
106	106	8 boundary changes for all local taxing jurisdictions. The data base
107	107	9 must include a description of each change and the effective date of
108	108	10 the change.
109	109	11 (d) The department shall maintain a data base of all sales and
110	110	12 use tax rates for each jurisdiction in Indiana that levies a sales or
111	111	13 use tax. The state and each political subdivision in the data base
112	112	14 must be identified by codes that conform with Federal Information
113	113	15 Processing Standards, as developed by the National Institute of
114	114	16 Standards and Technology.
115	115	17 (e) The department shall maintain a data base that assigns to
116	116	18 each five (5) digit and nine (9) digit ZIP code in Indiana the taxing
117	117	19 jurisdictions within the ZIP code that levy a sales or use tax in the
118	118	20 taxing jurisdiction.
119	119	21 (f) The department shall maintain the data bases described in
120	120	22 subsections (c) through (e) in accordance with the requirements of
121	121	23 the agreement.
122	122	24 (g) The department shall allow sellers and certified service
123	123	25 providers access to the data bases described in subsections (c)
124	124	26 through (e).
125	125	27 (h) The department may contract with a vendor to maintain the
126	126	28 data bases that the department is required to maintain under this
127	127	29 section.
128	128	30 SECTION 4. IC 6-2.5-11-14 IS ADDED TO THE INDIANA CODE
129	129	31 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
130	130	32 1, 2025]: Sec. 14. (a) Except as provided in subsection (b), a seller
131	131	33 or certified service provider is not liable for the tax, penalties, and
132	132	34 interest associated with charging and collecting the incorrect
133	133	35 amount of sales or use tax for a retail transaction if:
134	134	36 (1) the seller or certified service provider has relied on
135	135	37 erroneous data provided by the department in the data base
136	136	38 described in section 13(e) of this chapter; and
137	137	39 (2) the erroneous data provided by the department in the data
138	138	40 base described in section 13(e) of this chapter is the reason
139	139	41 that the seller or certified service provider charged and
140	140	42 collected the incorrect amount of sales or use tax on the retail
141	141	2025 IN 1646—LS 7421/DI 125 4
142	142	1 transaction.
143	143	2 (b) If the department:
144	144	3 (1) corrects the errors in the data base described in section
145	145	4 13(e) of this chapter; and
146	146	5 (2) provides the seller or certified service provider with notice
147	147	6 of the corrected data;
148	148	7 the relief provided by subsection (a) ceases ten (10) days after the
149	149	8 seller or certified service provider receives the department's notice
150	150	9 of corrected data.
151	151	10 SECTION 5. IC 6-3.5-12 IS ADDED TO THE INDIANA CODE
152	152	11 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
153	153	12 JULY 1, 2025]:
154	154	13 Chapter 12. Local Option Gross Retail Tax
155	155	14 Sec. 1. Except as otherwise provided in this chapter, the
156	156	15 definitions set forth in:
157	157	16 (1) IC 6-2.5-1; and
158	158	17 (2) IC 36-1-2;
159	159	18 apply throughout this chapter.
160	160	19 Sec. 2. As used in this chapter, "adopting county or
161	161	20 municipality" means a county or municipality that has adopted the
162	162	21 local option gross retail tax.
163	163	22 Sec. 3. As used in this chapter, "gross retail income" has the
164	164	23 meaning set forth in IC 6-2.5-1-5, except that the term does not
165	165	24 include taxes imposed under IC 6-2.5 or IC 6-9.
166	166	25 Sec. 4. As used in this chapter, "local option gross retail tax
167	167	26 district" of an adopting county or municipality means the
168	168	27 geographic territory in which the local option gross retail tax
169	169	28 adopted by the adopting county or municipality is imposed.
170	170	29 Sec. 5. As used in this chapter, "municipality" means a city or
171	171	30 town.
172	172	31 Sec. 6. (a) Using procedures described in this chapter, the fiscal
173	173	32 body of a county or municipality may adopt an ordinance to
174	174	33 impose or rescind the local option gross retail tax in the local
175	175	34 option gross retail tax district of the county or municipality.
176	176	35 (b) Before the fiscal body of a county or municipality may adopt
177	177	36 an ordinance to impose or rescind a tax under this chapter, the
178	178	37 fiscal body of the county or municipality must hold a public
179	179	38 hearing on the proposed ordinance. The fiscal body of the county
180	180	39 or municipality must provide notice to the public in accordance
181	181	40 with IC 5-3-1 of the date, time, and place of the public hearing.
182	182	41 Sec. 7. (a) An ordinance imposing the local option gross retail
183	183	42 tax under this chapter must specify the tax rate to be imposed
184	184	2025 IN 1646—LS 7421/DI 125 5
185	185	1 under this chapter, not to exceed one percent (1%).
186	186	2 (b) An ordinance imposing the local option gross retail tax
187	187	3 under this chapter must specify the date the local option gross
188	188	4 retail tax takes effect. A tax imposed under this chapter must take
189	189	5 effect on the first day of a calendar quarter. A tax imposed under
190	190	6 this chapter may not take effect until at least sixty (60) days after
191	191	7 the date the ordinance imposing the tax is adopted.
192	192	8 (c) An ordinance to rescind the local option gross retail tax must
193	193	9 specify the date the rescission of the tax takes effect.
194	194	10 Sec. 8. (a) An ordinance imposing the local option gross retail
195	195	11 tax under this chapter must specify the boundaries of the county or
196	196	12 municipality on the effective date of the local option gross retail
197	197	13 tax. The boundaries of the county or municipality on the effective
198	198	14 date of the local option gross retail tax are the initial boundaries of
199	199	15 the local option gross retail tax district of the county or
200	200	16 municipality.
201	201	17 (b) If at any time the boundaries of an adopting county or
202	202	18 municipality do not coincide with the boundaries of the local option
203	203	19 gross retail tax district of the adopting county or municipality, the
204	204	20 fiscal body of an adopting county or municipality may adopt an
205	205	21 ordinance to alter the boundaries of the local option gross retail tax
206	206	22 district to coincide with the boundaries of the adopting county or
207	207	23 municipality.
208	208	24 (c) An ordinance adopted under subsection (b) must specify the
209	209	25 date on which the altered boundaries of the local option gross retail
210	210	26 tax district take effect. The altered boundaries of the local option
211	211	27 gross retail tax district must take effect on the first day of a
212	212	28 calendar quarter. The altered boundaries of the local option gross
213	213	29 retail tax district may not take effect until at least sixty (60) days
214	214	30 after the date on which the ordinance is adopted.
215	215	31 (d) An ordinance adopted under subsection (b) must specify the
216	216	32 changes to the boundaries of the local option gross retail tax
217	217	33 district of the adopting county.
218	218	34 Sec. 9. (a) If the fiscal body of a county or municipality adopts
219	219	35 an ordinance under this chapter, the fiscal body of the county or
220	220	36 municipality shall immediately send a certified copy of the
221	221	37 ordinance to the department.
222	222	38 (b) If:
223	223	39 (1) the fiscal body of a county or municipality adopts an
224	224	40 ordinance to impose the local option gross retail tax under
225	225	41 section 6 of this chapter; or
226	226	42 (2) the fiscal body of an adopting county or municipality
227	227	2025 IN 1646—LS 7421/DI 125 6
228	228	1 adopts an ordinance to change the boundaries of the adopting
229	229	2 municipality's local option gross retail tax district under
230	230	3 section 8 of this chapter;
231	231	4 the fiscal body shall immediately transmit information concerning
232	232	5 the boundaries of the local option gross retail tax district to the
233	233	6 department in an electronic format prescribed by the department.
234	234	7 Sec. 10. (a) A tax imposed under this chapter by the fiscal body
235	235	8 of an adopting county or municipality applies only to a retail
236	236	9 transaction that:
237	237	10 (1) is subject to the state gross retail tax; and
238	238	11 (2) is sourced to the local option gross retail tax district of the
239	239	12 adopting county or municipality under the sourcing rules of
240	240	13 IC 6-2.5.
241	241	14 (b) Subsection (a) applies to a local option gross retail tax
242	242	15 throughout the period an ordinance imposing the local option gross
243	243	16 retail tax is in effect. An amendment of the state gross retail tax
244	244	17 applies also to the local option gross retail tax in effect in an
245	245	18 adopting county or municipality on the date the amendment to the
246	246	19 state gross retail tax becomes effective.
247	247	20 Sec. 11. (a) This section applies to a retail transaction that is
248	248	21 subject to the local option gross retail tax.
249	249	22 (b) The local option gross retail tax is measured by the gross
250	250	23 retail income received by a retail merchant in a retail unitary
251	251	24 transaction and is imposed at the rate set forth in the ordinance
252	252	25 imposing the tax. The rate must be stated as a whole percentage
253	253	26 point.
254	254	27 (c) A retail merchant may apply the rounding rule of
255	255	28 IC 6-2.5-2-2(b) to the unrounded total of:
256	256	29 (1) the state gross retail tax; plus
257	257	30 (2) the local option gross retail tax;
258	258	31 that is imposed on a retail transaction.
259	259	32 Sec. 12. (a) A person who receives goods or services in a retail
260	260	33 transaction that is taxed under this chapter is liable for the tax.
261	261	34 The person shall pay the tax to the retail merchant as a separate
262	262	35 amount added to the consideration for the goods or services. The
263	263	36 retail merchant shall collect the tax as an agent for the state and
264	264	37 the county. The tax imposed under this chapter shall be imposed,
265	265	38 paid, and collected in the same manner in which the state gross
266	266	39 retail tax is imposed, paid, and collected under IC 6-2.5.
267	267	40 (b) A county or municipality that imposes the local option gross
268	268	41 retail tax under this chapter is prohibited from conducting an audit
269	269	42 of any retail merchant or purchaser for the purpose of determining
270	270	2025 IN 1646—LS 7421/DI 125 7
271	271	1 whether the proper amount of local option gross retail tax has been
272	272	2 collected or paid.
273	273	3 Sec. 13. (a) A special account within the state general fund shall
274	274	4 be established for each adopting county or municipality that
275	275	5 imposes the local option gross retail tax. Revenue collected under
276	276	6 this chapter within an adopting county or municipality shall be
277	277	7 deposited in that adopting county's or municipality's account in the
278	278	8 state general fund.
279	279	9 (b) Income earned on money held in an account under
280	280	10 subsection (a) becomes a part of that account.
281	281	11 (c) Revenue remaining in an account established under
282	282	12 subsection (a) at the end of a fiscal year does not revert to the state
283	283	13 general fund.
284	284	14 Sec. 14. (a) Revenue derived from the imposition of the local
285	285	15 option gross retail tax shall, in the manner prescribed by this
286	286	16 section, be distributed to the adopting county or municipality that
287	287	17 imposed it. Revenue in a county's or municipality's special account
288	288	18 is appropriated to make the distributions required by this chapter.
289	289	19 (b) Before the fifteenth business day of each month, the state
290	290	20 comptroller shall distribute the amount specified in subsection (c)
291	291	21 to the fiscal officer of each adopting county or municipality.
292	292	22 (c) The amount to be distributed each month to an adopting
293	293	23 county or municipality under this section is the amount
294	294	24 accumulated at the end of the previous month in the adopting
295	295	25 county's or municipality's special account established under section
296	296	26 13 of this chapter.
297	297	27 (d) The state comptroller may adjust the amount specified in
298	298	28 subsection (c) to account for mathematical or clerical errors
299	299	29 involving a previous distribution under this section. At the
300	300	30 discretion of the state comptroller, an adjustment under this
301	301	31 section may be prorated over two (2) or more future distributions
302	302	32 under this section.
303	303	33 Sec. 15. An adopting county or municipality may use local
304	304	34 option gross retail tax revenue received in a distribution under
305	305	35 section 14 of this chapter only for infrastructure improvements.
306	306	36 SECTION 6. IC 6-8.1-1-1, AS AMENDED BY P.L.1-2023,
307	307	37 SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
308	308	38 JULY 1, 2025]: Sec. 1. "Listed taxes" or "taxes" includes only the
309	309	39 pari-mutuel taxes (IC 4-31-9-3 through IC 4-31-9-5); the supplemental
310	310	40 wagering tax (IC 4-33-12); the riverboat wagering tax (IC 4-33-13); the
311	311	41 slot machine wagering tax (IC 4-35-8); the type II gambling game
312	312	42 excise tax (IC 4-36-9); the gross income tax (IC 6-2.1) (repealed); the
313	313	2025 IN 1646—LS 7421/DI 125 8
314	314	1 utility receipts and utility services use taxes (IC 6-2.3) (repealed); the
315	315	2 state gross retail and use taxes (IC 6-2.5); the adjusted gross income tax
316	316	3 (IC 6-3); the pass through entity tax (IC 6-3-2.1); the supplemental net
317	317	4 income tax (IC 6-3-8) (repealed); the county adjusted gross income tax
318	318	5 (IC 6-3.5-1.1) (repealed); the county option income tax (IC 6-3.5-6)
319	319	6 (repealed); the county economic development income tax (IC 6-3.5-7)
320	320	7 (repealed); the local option gross retail tax (IC 6-3.5-12); the local
321	321	8 income tax (IC 6-3.6); the auto rental excise tax (IC 6-6-9); the
322	322	9 financial institutions tax (IC 6-5.5); the gasoline tax (IC 6-6-1.1); the
323	323	10 special fuel tax (IC 6-6-2.5); the motor carrier fuel tax (IC 6-6-4.1); a
324	324	11 motor fuel tax collected under a reciprocal agreement under IC 6-8.1-3;
325	325	12 the vehicle excise tax (IC 6-6-5); the aviation fuel excise tax (IC
326	326	13 6-6-13); the commercial vehicle excise tax (IC 6-6-5.5); the excise tax
327	327	14 imposed on recreational vehicles and truck campers (IC 6-6-5.1); the
328	328	15 hazardous waste disposal tax (IC 6-6-6.6) (repealed); the heavy
329	329	16 equipment rental excise tax (IC 6-6-15); the vehicle sharing excise tax
330	330	17 (IC 6-6-16); the cigarette tax (IC 6-7-1); the closed system cartridge tax
331	331	18 (IC 6-7-2-7.5); the electronic cigarette tax (IC 6-7-4); the beer excise
332	332	19 tax (IC 7.1-4-2); the liquor excise tax (IC 7.1-4-3); the wine excise tax
333	333	20 (IC 7.1-4-4); the hard cider excise tax (IC 7.1-4-4.5); the petroleum
334	334	21 severance tax (IC 6-8-1); the various innkeeper's taxes (IC 6-9); the
335	335	22 various food and beverage taxes (IC 6-9); the county admissions tax
336	336	23 (IC 6-9-13 and IC 6-9-28); the oil inspection fee (IC 16-44-2); the
337	337	24 penalties assessed for oversize vehicles (IC 9-20-3 and IC 9-20-18); the
338	338	25 fees and penalties assessed for overweight vehicles (IC 9-20-4 and
339	339	26 IC 9-20-18); and any other tax or fee that the department is required to
340	340	27 collect or administer.
341	341	28 SECTION 7. IC 6-8.1-3-7.1, AS AMENDED BY P.L.146-2020,
342	342	29 SECTION 36, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
343	343	30 JULY 1, 2025]: Sec. 7.1. (a) As used in this section, "fiscal officer"
344	344	31 means:
345	345	32 (1) a fiscal officer (as defined in IC 36-1-2-7); and
346	346	33 (2) in the case of a county, the county treasurer.
347	347	34 (b) The department shall enter into an agreement with the fiscal
348	348	35 officer of an entity that has adopted a local option gross retail tax
349	349	36 under IC 6-3.5-12, an innkeeper's tax, a food and beverage tax, or an
350	350	37 admissions tax under IC 6-9 to furnish the fiscal officer annually with:
351	351	38 (1) the name of each business collecting the taxes listed in this
352	352	39 subsection; and
353	353	40 (2) the amount of money collected from each business.
354	354	41 For an innkeeper's tax or food and beverage tax remitted through a
355	355	42 marketplace facilitator, the information must include the name of each
356	356	2025 IN 1646—LS 7421/DI 125 9
357	357	1 business and the amount of money collected from each business by a
358	358	2 marketplace facilitator acting on behalf of the business.
359	359	3 (c) The agreement must provide that the department must provide
360	360	4 the information in an electronic format that the fiscal officer can use.
361	361	5 (d) The agreement must include a provision that, unless in
362	362	6 accordance with a judicial order, the fiscal officer, employees of the
363	363	7 fiscal officer, former employees of the fiscal officer, counsel of the
364	364	8 fiscal officer, agents of the fiscal officer, or any other person may not
365	365	9 divulge the names of the businesses, the amount of taxes paid by the
366	366	10 businesses, or any other information disclosed to the fiscal officer by
367	367	11 the department.
368	368	12 (e) The department shall also enter into an agreement with the fiscal
369	369	13 officer of a capital improvement board of managers:
370	370	14 (1) created under IC 36-10-8 or IC 36-10-9; and
371	371	15 (2) that is responsible for expenditure of funds from:
372	372	16 (A) an innkeeper's tax, a food and beverage tax, or an
373	373	17 admissions tax under IC 6-9;
374	374	18 (B) the supplemental auto rental excise tax under IC 6-6-9.7;
375	375	19 or
376	376	20 (C) the state gross retail taxes allocated to a professional sports
377	377	21 development area fund, a sports and convention facilities
378	378	22 operating fund, or other fund under IC 36-7-31 or
379	379	23 IC 36-7-31.3;
380	380	24 to furnish the fiscal officer annually with the name of each business
381	381	25 collecting the taxes listed in this subsection, and the amount of money
382	382	26 collected from each business. An agreement with a fiscal officer under
383	383	27 this subsection must include a nondisclosure provision the same as is
384	384	28 required for a fiscal officer under subsection (d).
385	385	29 SECTION 8. IC 6-8.1-7-1, AS AMENDED BY P.L.118-2024,
386	386	30 SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
387	387	31 JULY 1, 2025]: Sec. 1. (a) This subsection does not apply to the
388	388	32 disclosure of information concerning a conviction on a tax evasion
389	389	33 charge. Unless in accordance with a judicial order or as otherwise
390	390	34 provided in this chapter, the department, its employees, former
391	391	35 employees, counsel, agents, or any other person may not divulge the
392	392	36 amount of tax paid by any taxpayer, terms of a settlement agreement
393	393	37 executed between a taxpayer and the department, investigation records,
394	394	38 investigation reports, or any other information disclosed by the reports
395	395	39 filed under the provisions of the law relating to any of the listed taxes,
396	396	40 including required information derived from a federal return, except to
397	397	41 any of the following when it is agreed that the information is to be
398	398	42 confidential and to be used solely for official purposes:
399	399	2025 IN 1646—LS 7421/DI 125 10
400	400	1 (1) Members and employees of the department.
401	401	2 (2) The governor.
402	402	3 (3) A member of the general assembly or an employee of the
403	403	4 house of representatives or the senate when acting on behalf of a
404	404	5 taxpayer located in the member's legislative district who has
405	405	6 provided sufficient information to the member or employee for
406	406	7 the department to determine that the member or employee is
407	407	8 acting on behalf of the taxpayer.
408	408	9 (4) An employee of the legislative services agency to carry out the
409	409	10 responsibilities of the legislative services agency under
410	410	11 IC 2-5-1.1-7 or another law.
411	411	12 (5) The attorney general or any other legal representative of the
412	412	13 state in any action in respect to the amount of tax due under the
413	413	14 provisions of the law relating to any of the listed taxes.
414	414	15 (6) Any authorized officers of the United States.
415	415	16 (b) The information described in subsection (a) may be revealed
416	416	17 upon the receipt of a certified request of any designated officer of the
417	417	18 state tax department of any other state, district, territory, or possession
418	418	19 of the United States when:
419	419	20 (1) the state, district, territory, or possession permits the exchange
420	420	21 of like information with the taxing officials of the state; and
421	421	22 (2) it is agreed that the information is to be confidential and to be
422	422	23 used solely for tax collection purposes.
423	423	24 (c) The information described in subsection (a) relating to a person
424	424	25 on public welfare or a person who has made application for public
425	425	26 welfare may be revealed to the director of the division of family
426	426	27 resources, and to any director of a county office of the division of
427	427	28 family resources located in Indiana, upon receipt of a written request
428	428	29 from either director for the information. The information shall be
429	429	30 treated as confidential by the directors. In addition, the information
430	430	31 described in subsection (a) relating to a person who has been
431	431	32 designated as an absent parent by the state Title IV-D agency shall be
432	432	33 made available to the state Title IV-D agency upon request. The
433	433	34 information shall be subject to the information safeguarding provisions
434	434	35 of the state and federal Title IV-D programs.
435	435	36 (d) The name, address, Social Security number, and place of
436	436	37 employment relating to any individual who is delinquent in paying
437	437	38 educational loans owed to a postsecondary educational institution may
438	438	39 be revealed to that institution if it provides proof to the department that
439	439	40 the individual is delinquent in paying for educational loans. This
440	440	41 information shall be provided free of charge to approved postsecondary
441	441	42 educational institutions (as defined by IC 21-7-13-6(a)). The
442	442	2025 IN 1646—LS 7421/DI 125 11
443	443	1 department shall establish fees that all other institutions must pay to the
444	444	2 department to obtain information under this subsection. However, these
445	445	3 fees may not exceed the department's administrative costs in providing
446	446	4 the information to the institution.
447	447	5 (e) The information described in subsection (a) relating to reports
448	448	6 submitted under IC 6-6-1.1-502 concerning the number of gallons of
449	449	7 gasoline sold by a distributor and IC 6-6-2.5 concerning the number of
450	450	8 gallons of special fuel sold by a supplier and the number of gallons of
451	451	9 special fuel exported by a licensed exporter or imported by a licensed
452	452	10 transporter may be released by the commissioner upon receipt of a
453	453	11 written request for the information.
454	454	12 (f) The information described in subsection (a) may be revealed
455	455	13 upon the receipt of a written request from the administrative head of a
456	456	14 state agency of Indiana when:
457	457	15 (1) the state agency shows an official need for the information;
458	458	16 and
459	459	17 (2) the administrative head of the state agency agrees that any
460	460	18 information released will be kept confidential and will be used
461	461	19 solely for official purposes.
462	462	20 (g) The information described in subsection (a) may be revealed
463	463	21 upon the receipt of a written request from the chief law enforcement
464	464	22 officer of a state or local law enforcement agency in Indiana when it is
465	465	23 agreed that the information is to be confidential and to be used solely
466	466	24 for official purposes.
467	467	25 (h) The name and address of retail merchants, including township,
468	468	26 as specified in IC 6-2.5-8-1(k) may be released solely for tax collection
469	469	27 purposes to township assessors and county assessors.
470	470	28 (i) The department shall notify the appropriate innkeeper's tax
471	471	29 board, bureau, or commission that a taxpayer is delinquent in remitting
472	472	30 innkeepers' taxes under IC 6-9.
473	473	31 (j) All information relating to the delinquency or evasion of the
474	474	32 vehicle excise tax may be disclosed to the bureau of motor vehicles in
475	475	33 Indiana and may be disclosed to another state, if the information is
476	476	34 disclosed for the purpose of the enforcement and collection of the taxes
477	477	35 imposed by IC 6-6-5.
478	478	36 (k) All information relating to the delinquency or evasion of
479	479	37 commercial vehicle excise taxes payable to the bureau of motor
480	480	38 vehicles in Indiana may be disclosed to the bureau and may be
481	481	39 disclosed to another state, if the information is disclosed for the
482	482	40 purpose of the enforcement and collection of the taxes imposed by
483	483	41 IC 6-6-5.5.
484	484	42 (l) All information relating to the delinquency or evasion of
485	485	2025 IN 1646—LS 7421/DI 125 12
486	486	1 commercial vehicle excise taxes payable under the International
487	487	2 Registration Plan may be disclosed to another state, if the information
488	488	3 is disclosed for the purpose of the enforcement and collection of the
489	489	4 taxes imposed by IC 6-6-5.5.
490	490	5 (m) All information relating to the delinquency or evasion of the
491	491	6 excise taxes imposed on recreational vehicles and truck campers that
492	492	7 are payable to the bureau of motor vehicles in Indiana may be disclosed
493	493	8 to the bureau and may be disclosed to another state if the information
494	494	9 is disclosed for the purpose of the enforcement and collection of the
495	495	10 taxes imposed by IC 6-6-5.1.
496	496	11 (n) This section does not apply to:
497	497	12 (1) the beer excise tax, including brand and packaged type (IC
498	498	13 7.1-4-2);
499	499	14 (2) the liquor excise tax (IC 7.1-4-3);
500	500	15 (3) the wine excise tax (IC 7.1-4-4);
501	501	16 (4) the hard cider excise tax (IC 7.1-4-4.5);
502	502	17 (5) the vehicle excise tax (IC 6-6-5);
503	503	18 (6) the commercial vehicle excise tax (IC 6-6-5.5); and
504	504	19 (7) the fees under IC 13-23.
505	505	20 (o) The name and business address of retail merchants within each
506	506	21 county that sell tobacco products may be released to the division of
507	507	22 mental health and addiction and the alcohol and tobacco commission
508	508	23 solely for the purpose of the list prepared under IC 6-2.5-6-14.2.
509	509	24 (p) The name and business address of a person licensed by the
510	510	25 department under IC 6-6 or IC 6-7, or issued a registered retail
511	511	26 merchant's certificate under IC 6-2.5, may be released for the purpose
512	512	27 of reporting the status of the person's license or certificate.
513	513	28 (q) The department may release information concerning total
514	514	29 incremental tax amounts under:
515	515	30 (1) IC 5-28-26;
516	516	31 (2) IC 36-7-13;
517	517	32 (3) IC 36-7-26;
518	518	33 (4) IC 36-7-27;
519	519	34 (5) IC 36-7-31;
520	520	35 (6) IC 36-7-31.3; or
521	521	36 (7) any other statute providing for the calculation of incremental
522	522	37 state taxes that will be distributed to or retained by a political
523	523	38 subdivision or other entity;
524	524	39 to the fiscal officer of the political subdivision or other entity that
525	525	40 established the district or area from which the incremental taxes were
526	526	41 received if that fiscal officer enters into an agreement with the
527	527	42 department specifying that the political subdivision or other entity will
528	528	2025 IN 1646—LS 7421/DI 125 13
529	529	1 use the information solely for official purposes.
530	530	2 (r) The department may release the information as required in
531	531	3 IC 6-8.1-3-7.1 concerning:
532	532	4 (1) an innkeeper's tax, a food and beverage tax, or an admissions
533	533	5 tax under IC 6-9;
534	534	6 (2) the supplemental auto rental excise tax under IC 6-6-9.7; and
535	535	7 (3) the covered taxes allocated to a professional sports
536	536	8 development area fund, sports and convention facilities operating
537	537	9 fund, or other fund under IC 36-7-31 and IC 36-7-31.3.
538	538	10 (s) Information concerning state gross retail tax exemption
539	539	11 certificates that relate to a person who is exempt from the state gross
540	540	12 retail tax under IC 6-2.5-4-5 may be disclosed to a power subsidiary (as
541	541	13 defined in IC 6-2.5-1-22.5) or a person selling the services or
542	542	14 commodities listed in IC 6-2.5-4-5 for the purpose of enforcing and
543	543	15 collecting the state gross retail and use taxes under IC 6-2.5.
544	544	16 (t) The department may release a statement of tax withholding or
545	545	17 other tax information statement provided on behalf of a taxpayer to the
546	546	18 department to:
547	547	19 (1) the taxpayer on whose behalf the tax withholding or other tax
548	548	20 information statement was provided to the department;
549	549	21 (2) the taxpayer's spouse, if:
550	550	22 (A) the taxpayer is deceased or incapacitated; and
551	551	23 (B) the taxpayer's spouse is filing a joint income tax return
552	552	24 with the taxpayer; or
553	553	25 (3) an administrator, executor, trustee, or other fiduciary acting on
554	554	26 behalf of the taxpayer if the taxpayer is deceased.
555	555	27 (u) Information related to a listed tax regarding a taxpayer may be
556	556	28 disclosed to an individual without a power of attorney under
557	557	29 IC 6-8.1-3-8(a)(2) if:
558	558	30 (1) the individual is authorized to file returns and remit payments
559	559	31 for one (1) or more listed taxes on behalf of the taxpayer through
560	560	32 the department's online tax system before September 8, 2020;
561	561	33 (2) the information relates to a listed tax described in subdivision
562	562	34 (1) for which the individual is authorized to file returns and remit
563	563	35 payments;
564	564	36 (3) the taxpayer has been notified by the department of the
565	565	37 individual's ability to access the taxpayer's information for the
566	566	38 listed taxes described in subdivision (1) and the taxpayer has not
567	567	39 objected to the individual's access;
568	568	40 (4) the individual's authorization or right to access the taxpayer's
569	569	41 information for a listed tax described in subdivision (1) has not
570	570	42 been withdrawn by the taxpayer; and
571	571	2025 IN 1646—LS 7421/DI 125 14
572	572	1 (5) disclosure of the information to the individual is not
573	573	2 prohibited by federal law.
574	574	3 Except as otherwise provided by this article, this subsection does not
575	575	4 authorize the disclosure of any correspondence from the department
576	576	5 that is mailed or otherwise delivered to the taxpayer relating to the
577	577	6 specified listed taxes for which the individual was given authorization
578	578	7 by the taxpayer. The department shall establish a date, which may be
579	579	8 earlier but not later than September 1, 2023, after which a taxpayer's
580	580	9 information concerning returns and remittances for a listed tax may not
581	581	10 be disclosed to an individual without a power of attorney under
582	582	11 IC 6-8.1-3-8(a)(2) by providing notice to the affected taxpayers and
583	583	12 previously authorized individuals, including notification published on
584	584	13 the department's website. After the earlier of the date established by the
585	585	14 department or September 1, 2023, the department may not disclose a
586	586	15 taxpayer's information concerning returns and remittances for a listed
587	587	16 tax to an individual unless the individual has a power of attorney under
588	588	17 IC 6-8.1-3-8(a)(2) or the disclosure is otherwise allowed under this
589	589	18 article.
590	590	19 (v) The department may publish a list of persons, corporations, or
591	591	20 other entities that qualify or have qualified for an exemption for sales
592	592	21 tax under IC 6-2.5-5-16, IC 6-2.5-5-25, or IC 6-2.5-5-26, or otherwise
593	593	22 provide information regarding a person's, corporation's, or entity's
594	594	23 exemption status under IC 6-2.5-5-16, IC 6-2.5-5-25, or IC 6-2.5-5-26.
595	595	24 For purposes of this subsection, information that may be disclosed
596	596	25 includes:
597	597	26 (1) any federal identification number or other identification
598	598	27 number for the entity assigned by the department;
599	599	28 (2) any expiration date of an exemption under IC 6-2.5-5-25;
600	600	29 (3) whether any sales tax exemption has expired or has been
601	601	30 revoked by the department; and
602	602	31 (4) any other information reasonably necessary for a recipient of
603	603	32 an exemption certificate to determine if an exemption certificate
604	604	33 is valid.
605	605	34 (w) The department may share a taxpayer's name and other personal
606	606	35 identification information with a tax preparer or tax preparation
607	607	36 software provider in cases where the department suspects that a
608	608	37 fraudulent return has been filed on behalf of a taxpayer and the
609	609	38 department suspects that the system of a taxpayer's previous year tax
610	610	39 preparer or tax preparation software provider has been breached.
611	611	40 (x) The department shall notify the appropriate county
612	612	41 treasurer that a taxpayer is delinquent in remitting local option
613	613	42 gross retail taxes collected under IC 6-3.5-12.
614	614	2025 IN 1646—LS 7421/DI 125 15
615	615	1 SECTION 9. IC 36-1-8-5.1, AS AMENDED BY P.L.38-2021,
616	616	2 SECTION 79, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
617	617	3 JULY 1, 2025]: Sec. 5.1. (a) A political subdivision may establish a
618	618	4 rainy day fund by the adoption of:
619	619	5 (1) an ordinance, in the case of a county, city, or town; or
620	620	6 (2) a resolution, in the case of any other political subdivision.
621	621	7 (b) An ordinance or a resolution adopted under this section must
622	622	8 specify the following:
623	623	9 (1) The purposes of the rainy day fund.
624	624	10 (2) The sources of funding for the rainy day fund, which may
625	625	11 include the following:
626	626	12 (A) Unused and unencumbered funds under:
627	627	13 (i) section 5 of this chapter;
628	628	14 (ii) IC 6-3.5-12-15; or
629	629	15 (ii) (iii) IC 6-3.6-9-15.
630	630	16 (B) Any other funding source:
631	631	17 (i) specified in the ordinance or resolution adopted under
632	632	18 this section; and
633	633	19 (ii) not otherwise prohibited by law.
634	634	20 (c) The rainy day fund is subject to the same appropriation process
635	635	21 as other funds that receive tax money.
636	636	22 (d) In any fiscal year, a political subdivision may, at any time, do the
637	637	23 following:
638	638	24 (1) Transfer any unused and unencumbered funds specified in
639	639	25 subsection (b)(2)(A) from any fiscal year to the rainy day fund.
640	640	26 (2) Transfer any other unobligated cash balances from any fiscal
641	641	27 year that are not otherwise identified in subsection (b)(2)(A) or
642	642	28 section 5 of this chapter to the rainy day fund as long as the
643	643	29 transfer satisfies the following requirements:
644	644	30 (A) The amount of the transfer is authorized by and identified
645	645	31 in an ordinance or resolution.
646	646	32 (B) The amount of the transfer is not more than:
647	647	33 (i) before January 1, 2021, ten percent (10%);
648	648	34 (ii) after December 31, 2020, and before January 1, 2025,
649	649	35 fifteen percent (15%); and
650	650	36 (iii) after December 31, 2024, ten percent (10%);
651	651	37 of the political subdivision's total annual budget adopted under
652	652	38 IC 6-1.1-17 for that fiscal year.
653	653	39 (C) The transfer is not made from a debt service fund.
654	654	40 (e) A political subdivision may use only the funding sources
655	655	41 specified in subsection (b)(2)(A) or in the ordinance or resolution
656	656	42 establishing the rainy day fund. The political subdivision may adopt a
657	657	2025 IN 1646—LS 7421/DI 125 16
658	658	1 subsequent ordinance or resolution authorizing the use of another
659	659	2 funding source.
660	660	3 (f) The department of local government finance may not reduce the
661	661	4 actual or maximum permissible levy of a political subdivision as a
662	662	5 result of a balance in the rainy day fund of the political subdivision.
663	663	6 (g) A county, city, or town may at any time, by ordinance or
664	664	7 resolution, transfer to:
665	665	8 (1) its general fund; or
666	666	9 (2) any other appropriated funds of the county, city, or town;
667	667	10 money that has been deposited in the rainy day fund of the county, city,
668	668	11 or town.
669	669	12 (h) A school corporation may at any time, by resolution, transfer to
670	670	13 its education fund or operations fund money that has been deposited in
671	671	14 its rainy day fund.
672	672	15 SECTION 10. IC 36-7-13-3.8, AS AMENDED BY P.L.197-2016,
673	673	16 SECTION 125, IS AMENDED TO READ AS FOLLOWS
674	674	17 [EFFECTIVE JULY 1, 2025]: Sec. 3.8. As used in this chapter, "state
675	675	18 and local income taxes" means taxes imposed under any of the
676	676	19 following:
677	677	20 (1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax).
678	678	21 (2) IC 6-3.6 (local income tax).
679	679	22 (3) IC 6-3.5-12 (local option gross retail tax).
680	680	23 SECTION 11. IC 36-7-30-21, AS AMENDED BY P.L.197-2016,
681	681	24 SECTION 132, IS AMENDED TO READ AS FOLLOWS
682	682	25 [EFFECTIVE JULY 1, 2025]: Sec. 21. (a) Notwithstanding any other
683	683	26 law, the legislative body may pledge revenues received or to be
684	684	27 received by the unit from:
685	685	28 (1) the unit's local option gross retail tax distribution under
686	686	29 IC 6-3.5-12;
687	687	30 (1) (2) the unit's additional revenue from the local income tax that
688	688	31 is designated for certified shares or economic development under
689	689	32 IC 6-3.6-6;
690	690	33 (2) (3) any other source legally available to the unit for the
691	691	34 purposes of this chapter; or
692	692	35 (3) (4) any combination of revenues under subdivisions (1)
693	693	36 through (2); (3);
694	694	37 in any amount to pay amounts payable under section 18 or 19 of this
695	695	38 chapter.
696	696	39 (b) The legislative body may covenant to adopt an ordinance to
697	697	40 increase revenues at the time it is necessary to raise funds to pay any
698	698	41 amounts payable under section 18 or 19 of this chapter.
699	699	42 (c) The reuse authority may pledge revenues received or to be
700	700	2025 IN 1646—LS 7421/DI 125 17
701	701	1 received from any source legally available to the reuse authority for the
702	702	2 purposes of this chapter in any amount to pay amounts payable under
703	703	3 section 18 or 19 of this chapter.
704	704	4 (d) The pledge or covenant under this section may be for the term
705	705	5 of the bonds issued under section 18 of this chapter, the term of a lease
706	706	6 entered into under section 19 of this chapter, or for a shorter period as
707	707	7 determined by the legislative body. Money pledged by the legislative
708	708	8 body under this section shall be considered revenues or other money
709	709	9 available to the reuse authority under sections 18 through 19 of this
710	710	10 chapter.
711	711	11 (e) The general assembly covenants not to impair this pledge or
712	712	12 covenant as long as any bonds issued under section 18 of this chapter
713	713	13 are outstanding or as long as any lease entered into under section 19 of
714	714	14 this chapter is still in effect. The pledge or covenant shall be enforced
715	715	15 as provided in IC 5-1-14-4.
716	716	16 SECTION 12. IC 36-7-30.5-26, AS AMENDED BY P.L.197-2016,
717	717	17 SECTION 133, IS AMENDED TO READ AS FOLLOWS
718	718	18 [EFFECTIVE JULY 1, 2025]: Sec. 26. (a) Notwithstanding any other
719	719	19 law, the legislative body of a unit may pledge revenues received or to
720	720	20 be received by the unit from:
721	721	21 (1) the unit's local option gross retail tax distribution under
722	722	22 IC 6-3.5-12;
723	723	23 (1) (2) the unit's additional revenue from the local income tax that
724	724	24 is designated for certified shares or economic development under
725	725	25 IC 6-3.6-6;
726	726	26 (2) (3) any other source legally available to the unit for the
727	727	27 purposes of this chapter; or
728	728	28 (3) (4) any combination of revenues under subdivisions (1)
729	729	29 through (2); (3);
730	730	30 in any amount to pay amounts payable under section 23 or 24 of this
731	731	31 chapter.
732	732	32 (b) The legislative body may covenant to adopt an ordinance to
733	733	33 increase revenues at the time it is necessary to raise funds to pay any
734	734	34 amounts payable under section 23 or 24 of this chapter.
735	735	35 (c) The development authority may pledge revenues received or to
736	736	36 be received from any source legally available to the development
737	737	37 authority for the purposes of this chapter in any amount to pay amounts
738	738	38 payable under section 23 or 24 of this chapter.
739	739	39 (d) The pledge or covenant under this section may be for:
740	740	40 (1) the term of the bonds issued under section 23 of this chapter;
741	741	41 (2) the term of a lease entered into under section 24 of this
742	742	42 chapter; or
743	743	2025 IN 1646—LS 7421/DI 125 18
744	744	1 (3) a shorter period as determined by the legislative body.
745	745	2 Money pledged by the legislative body under this section shall be
746	746	3 considered revenues or other money available to the development
747	747	4 authority under sections 23 through 24 of this chapter.
748	748	5 (e) The general assembly covenants not to impair this pledge or
749	749	6 covenant as long as any bonds issued under section 23 of this chapter
750	750	7 are outstanding or as long as any lease entered into under section 24 of
751	751	8 this chapter is still in effect. The pledge or covenant shall be enforced
752	752	9 as provided in IC 5-1-14-4.
753	753	2025 IN 1646—LS 7421/DI 125