Tax in effect part of year; computation
Sec. 5. (a) Except as provided in subsections (b) through (c), if the
county adjusted gross income tax is not in effect during a county
taxpayer's entire taxable year, then the amount of county adjusted
gross income tax that the county taxpayer owes for that taxable year
equals the product of:
(1) the amount of county adjusted gross income tax the county
taxpayer would owe if the tax had been imposed during the
county taxpayer's entire taxable year; multiplied by
(2) a fraction:
(A) The numerator of the fraction equals the number of days
during the county taxpayer's taxable year during which the
county adjusted gross income tax was in effect.
(B) The denominator of the fraction equals the total number
of days in the county taxpayer's taxable year.
(b) If a county taxpayer:
(1) is unemployed for a part of the taxpayer's taxable year;
(2) was not discharged for just cause (as defined in
IC 22-4-15-1(e)); and
(3) has no earned income for the part of the taxpayer's taxable
year that the tax was in effect;
the county taxpayer's adjusted gross income for the taxable year is
reduced by the amount of the taxpayer's earned income for the
taxable year.
(c) A taxpayer who qualifies under subsection (b) must file a
claim for a refund for the difference between the county adjusted
gross income tax owed, as determined under subsection (a), and the
tax owed, as determined under subsection (b). A claim for a refund
must be on a form approved by the department and include all
supporting documentation reasonably required by the department.
As added by P.L.73-1983, SEC.2. Amended by P.L.96-1987, SEC.1.
Last modified: May 28, 2006