Additional rate for county courthouse; fund; use of additional
revenue; balance transfer to county highway fund
Sec. 3.6. (a) This section applies only to a county having a
population of more than six thousand (6,000) but less than eight
thousand (8,000).
(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, or equip the
county courthouse; and
(2) repay bonds issued, or leases entered into, for constructing,
acquiring, improving, renovating, and equipping the county
courthouse.
(c) In addition to the rates permitted under 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 (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, and equipping described in subsection (b) 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 (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-two (22) 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 for a time greater than is necessary to
pay the costs of financing, constructing, acquiring, renovating, and
equipping the county courthouse.
(e) The county treasurer shall establish a county courthouse
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
courthouse revenue fund before a certified distribution is made under
section 11 of this chapter.
(f) County adjusted gross income tax revenues derived from the
tax rate imposed under this section:
(1) may only be used 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 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
economic development challenges due to:
(1) the county's heavy agricultural base;
(2) the presence of a large amount of state owned property in
the county that is exempt from property taxation; and
(3) recent obligations of the school corporation in the county
that have already increased property taxes in the county and
imposed additional property tax burdens on the county's
agricultural base.
Maintaining low property tax rates is 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, and equipping described in subsection (b), rather than the
use of property taxes, promotes that purpose.
(h) Notwithstanding any other law, funds accumulated from the
county adjusted gross income tax imposed under this section after:
(1) the redemption of the 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.55. Amended by P.L.1-2003,
SEC.40; P.L.97-2004, SEC.29.
Last modified: May 28, 2006