Additional rate for county jail facilities; fund; use of additional
revenue; balance transfer to county highway fund
Sec. 2.9. (a) This section applies to a county having a population
of more than twenty-nine thousand (29,000) but less than thirty
thousand (30,000).
(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, remodel, or
equip the county jail and related buildings and parking
facilities, including costs related to the demolition of existing
buildings, the acquisition of land, and any other reasonably
related costs; and
(2) repay bonds issued or leases entered into for constructing,
acquiring, improving, renovating, remodeling, and equipping
the county jail and related buildings and parking facilities,
including costs related to the demolition of existing buildings,
the acquisition of land, and any other reasonably related costs.
(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, remodeling, and equipping described in
subsection (b) are completed or the date on which the last of any
bonds issued or leases entered into to finance the construction,
acquisition, improvement, renovation, remodeling, 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-five (25) 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, remodeling,
and equipping the county jail and related buildings and parking
facilities, including costs related to the demolition of existing
buildings, the acquisition of land, and any other reasonably related
costs.
(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 be used only 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
governmental and economic development challenges due to:
(1) underemployment in relation to similarly situated counties
and the loss of a major manufacturing business;
(2) an increase in property taxes for taxable years after
December 31, 2000, for the construction of a new elementary
school; and
(3) overcrowding of the county jail, the costs associated with
housing the county's inmates outside the county, and the
potential unavailability of additional housing for inmates
outside the county.
The use of county adjusted gross income tax revenues as provided in
this chapter is necessary for the county to provide adequate jail
capacity in the county and to maintain low property tax rates
essential to economic development. 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, remodeling, and equipping described in
subsection (b), rather than the use of property taxes, promotes those
purposes.
(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.178-2002, SEC.54. Amended by P.L.1-2003,
SEC.39.
Last modified: May 28, 2006