Authorization; rate of tax; form and adoption of ordinance
Sec. 2. (a) The county council of any county in which the county
option income tax will not be in effect on July 1 of a year under an
ordinance adopted during a previous calendar year may impose the
county adjusted gross income tax on the adjusted gross income of
county taxpayers of its county effective July 1 of that year.
(b) Except as provided in section 2.5, 2.7, 2.8, 2.9, 3.3, 3.5, or 3.6
of this chapter, the county adjusted gross income tax may be imposed
at a rate of one-half of one percent (0.5%), three-fourths of one
percent (0.75%), or one percent (1%) on the adjusted gross income
of resident county taxpayers of the county. Any county imposing the
county adjusted gross income tax must impose the tax on the
nonresident county taxpayers at a rate of one-fourth of one percent
(0.25%) on their adjusted gross income. If the county council elects
to decrease the county adjusted gross income tax, the county council
may decrease the county adjusted gross income tax rate in increments
of one-tenth of one percent (0.1%).
(c) To impose the county adjusted gross income tax, the county
council must, after January 1 but before April 1 of a year, adopt an
ordinance. The ordinance must substantially state the following:
"The ________ County Council imposes the county adjusted
gross income tax on the county taxpayers of ________ County.
The county adjusted gross income tax is imposed at a rate of
_____ percent (_____%) on the resident county taxpayers of the
county and one-fourth of one percent (0.25%) on the
nonresident county taxpayers of the county. This tax takes
effect July 1 of this year.".
(d) Any ordinance adopted under this section takes effect July 1
of the year the ordinance is adopted.
(e) The auditor of a county shall record all votes taken on
ordinances presented for a vote under the authority of this section
and immediately send a certified copy of the results to the
department by certified mail.
(f) If the county adjusted gross income tax had previously been
adopted by a county under IC 6-3.5-1 (before its repeal on March 15,
1983) and that tax was in effect at the time of the enactment of this
chapter, then the county adjusted gross income tax continues in that
county at the rates in effect at the time of enactment until the rates
are modified or the tax is rescinded in the manner prescribed by this
chapter. If a county's adjusted gross income tax is continued under
this subsection, then the tax shall be treated as if it had been imposed
under this chapter and is subject to rescission or reduction as
authorized in this chapter.
As added by P.L.73-1983, SEC.2. Amended by P.L.44-1984, SEC.13;
P.L.3-1990, SEC.24; P.L.35-1990, SEC.12; P.L.42-1994, SEC.1;
P.L.119-1998, SEC.6; P.L.135-2001, SEC.1; P.L.178-2002, SEC.52;
P.L.42-2003, SEC.1.
Last modified: May 28, 2006