Additional rate for jail facilities in county subject to federal court
order; use of additional revenues
Sec. 3.3. (a) This section applies only to a county that:
(1) operates a county jail that is subject to an order that:
(A) was issued by a federal district court before January 1,
2003; and
(B) has not been terminated;
(2) operates a county jail that fails to meet:
(A) American Correctional Association Jail Construction
Standards; and
(B) Indiana jail operation standards adopted by the
department of correction; and
(3) has insufficient revenue to finance the construction,
acquisition, improvement, renovation, and equipping of a
county jail and related buildings and parking facilities.
(b) For purposes of this section, "county jail" includes any other
penal facility that is:
(1) located in; and
(2) operated by;
the county.
(c) 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 a
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.
(d) 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 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 (c). 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 (c) 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 (c) are fully paid. The term of the
bonds issued (including any refunding bonds) or a lease entered into
under subsection (c)(2) may not exceed thirty (30) years.
(e) If the county council makes a determination under subsection
(c), the county council may adopt a tax rate under subsection (d). 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.
(f) 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.
(g) County adjusted gross income tax revenues derived from the
tax rate imposed under this section:
(1) may only be used for 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 (c).
(h) 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. The use of county
adjusted gross income tax revenues as provided in this chapter, rather
than use of property taxes, to pay any bonds issued or leases entered
into to finance the construction, acquisition, improvement,
renovation, and equipping described in subsection (c) promotes that
purpose.
(i) 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 general fund.
As added by P.L.42-2003, SEC.2.
Last modified: May 28, 2006