Increase of homestead credit percentage; determination
Sec. 13. (a) A county income tax council of a county in which the
county option income tax is in effect may adopt an ordinance to
increase the percentage credit allowed for homesteads in its county
under IC 6-1.1-20.9-2.
(b) A county income tax council may not increase the percentage
credit allowed for homesteads by an amount that exceeds the amount
determined in the last STEP of the following formula:
STEP ONE: Determine the amount of the sum of all property
tax levies for all taxing units in a county which are to be paid in
the county in 2003 as reflected by the auditor's abstract for the
2002 assessment year, adjusted, however, for any postabstract
adjustments which change the amount of the levies.
STEP TWO: Determine the amount of the county's estimated
property tax replacement under IC 6-1.1-21-3(a) for property
taxes first due and payable in 2003.
STEP THREE: Subtract the STEP TWO amount from the STEP
ONE amount.
STEP FOUR: Determine the amount of the county's total county
levy (as defined in IC 6-1.1-21-2(g)) for property taxes first due
and payable in 2003.
STEP FIVE: Subtract the STEP FOUR amount from the STEP
ONE amount.
STEP SIX: Subtract the STEP FIVE result from the STEP
THREE result.
STEP SEVEN: Divide the STEP THREE result by the STEP
SIX result.
STEP EIGHT: Multiply the STEP SEVEN result by
eight-hundredths (0.08).
STEP NINE: Round the STEP EIGHT product to the nearest
one-thousandth (0.001) and express the result as a percentage.
(c) The increase of the homestead credit percentage must be
uniform for all homesteads in a county.
(d) In the ordinance that increases the homestead credit
percentage, a county income tax council may provide for a series of
increases or decreases to take place for each of a group of succeeding
calendar years.
(e) An ordinance may be adopted under this section after January
1 but before June 1 of a calendar year.
(f) An ordinance adopted under this section takes effect on
January 1 of the next succeeding calendar year.
(g) Any ordinance adopted under this section for a county is
repealed for a year if on January 1 of that year the county option
income tax is not in effect.
As added by P.L.44-1984, SEC.14. Amended by P.L.3-1989, SEC.41;
P.L.224-2003, SEC.247; P.L.97-2004, SEC.30.
Last modified: May 28, 2006