Indiana Code - Taxation - Title 6, Section 6-3.5-1.1-2.7

Additional county adjusted gross income tax in county with
population between 71,000 and 71,400

Sec. 2.7. (a) This section applies to a county having a population
of more than seventy-one thousand (71,000) but less than
seventy-one thousand four hundred (71,400).
(b) The county council may, by ordinance, determine that
additional county adjusted gross income tax revenue is needed in the
county to:
(1) finance, construct, acquire, improve, renovate, or equip the
county jail and related buildings and parking facilities,
including costs related to the demolition of existing buildings
and the acquisition of land; and
(2) repay bonds issued, or leases entered into, for constructing,
acquiring, improving, renovating, and equipping the county jail
and related buildings and parking facilities, including costs
related to the demolition of existing buildings and the
acquisition of land.
(c) In addition to the rates permitted by section 2 of this chapter,
the county council may impose the county adjusted gross income tax
at a rate of:
(1) fifteen-hundredths percent (0.15%);
(2) two-tenths percent (0.2%); or
(3) twenty-five hundredths percent (0.25%);
on the adjusted gross income of county taxpayers if the county
council makes the finding and determination set forth in subsection
(b). The tax imposed under this section may be imposed only until
the later of the date on which the financing on, acquisition,
improvement, renovation, and equipping described in subsection (b)
is completed or the date on which the last of any bonds issued or
leases entered into to finance the construction, acquisition,
improvement, renovation, and equipping described in subsection (b)
are fully paid. The term of the bonds issued (including any refunding
bonds) or a lease entered into under subsection (b)(2) may not
exceed twenty (20) years.
(d) If the county council makes a determination under subsection
(b), the county council may adopt a tax rate under subsection (c). The
tax rate may not be imposed at a rate greater than is necessary to pay
the costs of financing, acquiring, improving, renovating, and

equipping the county jail and related buildings and parking facilities,
including costs related to the demolition of existing buildings and the
acquisition of land.
(e) The county treasurer shall establish a county jail revenue fund
to be used only for purposes described in this section. County
adjusted gross income tax revenues derived from the tax rate
imposed under this section shall be deposited in the county jail
revenue fund before making a certified distribution under section 11
of this chapter.
(f) County adjusted gross income tax revenues derived from the
tax rate imposed under this section:
(1) may only be used for the purposes described in this section;
(2) may not be considered by the department of local
government finance in determining the county's maximum
permissible property tax levy limit under IC 6-1.1-18.5; and
(3) may be pledged to the repayment of bonds issued, or leases
entered into, for purposes described in subsection (b).
(g) A county described in subsection (a) possesses unique
economic development challenges due to underemployment in
relation to similarly situated counties. Maintaining low property tax
rates is essential to economic development and the use of county
adjusted gross income tax revenues as provided in this chapter to pay
any bonds issued or leases entered into to finance the construction,
acquisition, improvement, renovation, and equipping described under
subsection (b), rather than use of property taxes, promotes that
purpose.
(h) Notwithstanding any other law, funds accumulated from the
county adjusted gross income tax imposed under this section after:
(1) the redemption of bonds issued; or
(2) the final payment of lease rentals due under a lease entered
into under this section;
shall be transferred to the county highway fund to be used for
construction, resurfacing, restoration, and rehabilitation of county
highways, roads, and bridges.

As added by P.L.135-2001, SEC.2. Amended by P.L.1-2002, SEC.33
and P.L.90-2002, SEC.290.

Last modified: May 28, 2006