"Base year"; calculation of initial certified distribution
Sec. 5. (a) As used in this section, "base year" for a civil taxing
unit means the most recent calendar year:
(1) in which the civil taxing unit is located in an adopting
county, as determined under section 4 of this chapter; and
(2) that is immediately preceded by a calendar year in which the
civil taxing unit either:
(A) was not located in an adopting county, as determined
under section 4 of this chapter; or
(B) did not impose an ad valorem property tax levy.
If the civil taxing unit was located in an adopting county in calendar
year 1979, as determined under section 4 of this chapter, the civil
taxing unit's base year is calendar year 1979 or the year determined
above, whichever is later.
(b) As used in this section, "initial certified distribution" means the
amount of certified shares received by a civil taxing unit in the year
determined under subsection (e).
(c) If the county adjusted gross income tax was not in effect on
January 1 of the calendar year immediately preceding the ensuing
calendar year in the county in which a particular civil taxing unit is
located, then the civil taxing unit's base year certified share is the
amount of certified shares to be received by the civil taxing unit
during its base year.
(d) If the county adjusted gross income tax was in effect on
January 1 of the calendar year immediately preceding the ensuing
calendar year in the county in which a particular civil taxing unit is
located, then the civil taxing unit's base year certified share is the
amount of the civil taxing unit's initial certified distribution
multiplied by a fraction:
(1) The numerator of the fraction equals the remainder of the
county adjusted gross income tax rate of the county in which the
civil taxing unit is located and that is imposed on January 1 of
the ensuing calendar year minus one quarter of one percent
(1/4%).
(2) The denominator of the fraction equals the remainder of the
county adjusted gross income tax rate of the county in which the
civil taxing unit is located and that is imposed on January 1 of
the civil taxing unit's base year minus one quarter of one percent
(1/4%).
(e) This subsection applies to a civil taxing unit that is located in
a county that:
(1) adopts the county adjusted gross income tax after December
31, 2002; and
(2) had a county adjusted gross income tax in effect on January
1 of the calendar year immediately preceding the ensuing
calendar year.
Until the department of state revenue, after reviewing the
recommendation of the budget agency, notifies the department of
local government finance that a full transition to certification of
distributions as provided in IC 6-3.5-1.1-9(a)(1) through
IC 6-3.5-1.1-9(a)(2) has occurred for the calendar year, the initial
certified distribution to be used under subsection (e) for the civil
taxing unit shall be the amount of the certified shares certified for the
civil taxing unit in the most current calendar year preceding the
ensuing calendar year. For the calendar year for which a full
transition to certification of distributions as provided in
IC 6-3.5-1.1-9(a)(1) through IC 6-3.5-1.1-9(a)(2) has occurred and
each subsequent calendar year, the initial certified distribution to be
used under subsection (e) for the civil taxing unit is the amount of
certified shares certified for the civil taxing unit in the calendar year
in which a full transition to certification of distributions as provided
in IC 6-3.5-1.1-9(a)(1) through IC 6-3.5-1.1-9(a)(2) initially occurred
for the civil taxing unit. The department of state revenue, after
reviewing the recommendation of the budget agency, shall provide
the notice to the department of local government finance as required
under this subsection.
As added by P.L.73-1983, SEC.1. Amended by P.L.267-2003, SEC.1.
Last modified: May 28, 2006