Additional homestead credit to offset inventory property tax
deduction; replacement of lost revenue; ordinances
Sec. 25. (a) This section applies only to a county that has adopted
an ordinance under IC 6-1.1-12-41(f).
(b) For purposes of this section, "imposing entity" means the
entity that adopted the ordinance under IC 6-1.1-12-41(f).
(c) The imposing entity may adopt an ordinance to provide for the
use of the certified distribution described in section 16(c) of this
chapter for the purpose provided in subsection (e). A county income
tax council that adopts an ordinance under this subsection shall use
the procedures set forth in IC 6-3.5-6 concerning the adoption of an
ordinance for the imposition of the county option income tax. Except
as provided in subsection (j), an ordinance must be adopted under
this subsection after January 1 but before June 1 of a calendar year.
The ordinance may provide for an additional rate under section 5(p)
of this chapter. An ordinance adopted under this subsection:
(1) first applies to the certified distribution described in section
16(c) of this chapter made in the calendar year that immediately
succeeds the calendar year in which the ordinance is adopted;
(2) must specify the calendar years to which the ordinance
applies; and
(3) must specify that the certified distribution must be used to
provide for:
(A) uniformly applied increased homestead credits as
provided in subsection (f); or
(B) allocated increased homestead credits as provided in
subsection (h).
An ordinance adopted under this subsection may be combined with
an ordinance adopted under section 26 of this chapter.
(d) If an ordinance is adopted under subsection (c), the percentage
of the certified distribution specified in the ordinance for use for the
purpose provided in subsection (e) shall be:
(1) retained by the county auditor under subsection (i); and
(2) used for the purpose provided in subsection (e) instead of
the purposes specified in the capital improvement plans adopted
under section 15 of this chapter.
(e) If an ordinance is adopted under subsection (c), the imposing
entity shall use the certified distribution described in section 16(c) of
this chapter to increase the homestead credit allowed in the county
under IC 6-1.1-20.9 for a year to offset the effect on homesteads in
the county resulting from a county deduction for inventory under
IC 6-1.1-12-41.
(f) If the imposing entity specifies the application of uniform
increased homestead credits under subsection (c)(3)(A), the county
auditor shall, for each calendar year in which an increased homestead
credit percentage is authorized under this section, determine:
(1) the amount of the certified distribution that is available to
provide an increased homestead credit percentage for the year;
(2) the amount of uniformly applied homestead credits for the
year in the county that equals the amount determined under
subdivision (1); and
(3) the increased percentage of homestead credit that equates to
the amount of homestead credits determined under subdivision
(2).
(g) The increased percentage of homestead credit determined by
the county auditor under subsection (f) applies uniformly in the
county in the calendar year for which the increased percentage is
determined.
(h) If the imposing entity specifies the application of allocated
increased homestead credits under subsection (c)(3)(B), the county
auditor shall, for each calendar year in which an increased homestead
credit is authorized under this section, determine:
(1) the amount of the certified distribution that is available to
provide an increased homestead credit for the year; and
(2) an increased percentage of homestead credit for each taxing
district in the county that allocates to the taxing district an
amount of increased homestead credits that bears the same
proportion to the amount determined under subdivision (1) that
the amount of inventory assessed value deducted under
IC 6-1.1-12-41 in the taxing district for the immediately
preceding year's assessment date bears to the total inventory
assessed value deducted under IC 6-1.1-12-41 in the county for
the immediately preceding year's assessment date.
(i) The county auditor shall retain from the payments of the
county's certified distribution an amount equal to the revenue lost, if
any, due to the increase of the homestead credit within the county.
The money shall be distributed to the civil taxing units and school
corporations of the county:
(1) as if the money were from property tax collections; and
(2) in such a manner that no civil taxing unit or school
corporation will suffer a net revenue loss because of the
allowance of an increased homestead credit.
(j) An entity authorized to adopt:
(1) an ordinance under subsection (c); and
(2) an ordinance under IC 6-1.1-12-41(f);
may consolidate the two (2) ordinances. The limitation under
subsection (c) that an ordinance must be adopted after January 1 of
a calendar year does not apply if a consolidated ordinance is adopted
under this subsection. However, notwithstanding subsection (c)(1),
the ordinance must state that it first applies to certified distributions
in the calendar year in which property taxes are initially affected by
the deduction under IC 6-1.1-12-41.
As added by P.L.192-2002(ss), SEC.127. Amended by P.L.272-2003,
SEC.5; P.L.199-2005, SEC.24.
Last modified: May 28, 2006