Calculation of certified distribution; notice to county auditor
Sec. 17. (a) Revenue derived from the imposition of the county
option income tax shall, in the manner prescribed by this section, be
distributed to the county that imposed it. The amount that is to be
distributed to a county during an ensuing calendar year equals the
amount of county option income tax revenue that the department,
after reviewing the recommendation of the budget agency,
determines has been:
(1) received from that county for a taxable year ending in a
calendar year preceding the calendar year in which the
determination is made; and
(2) reported on an annual return or amended return processed
by the department in the state fiscal year ending before July 1
of the calendar year in which the determination is made;
as adjusted (as determined after review of the recommendation of the
budget agency) for refunds of county option income tax made in the
state fiscal year.
(b) Before August 2 of each calendar year, the department, after
reviewing the recommendation of the budget agency, shall certify to
the county auditor of each adopting county the amount determined
under subsection (a) plus the amount of interest in the county's
account that has accrued and has not been included in a certification
made in a preceding year. The amount certified is the county's
"certified distribution" for the immediately succeeding calendar year.
The amount certified shall be adjusted, as necessary, under
subsections (c), (d), and (e). The department shall provide with the
certification an informative summary of the calculations used to
determine the certified distribution.
(c) The department shall certify an amount less than the amount
determined under subsection (b) if the department, after reviewing
the recommendation of the budget agency, determines that the
reduced distribution is necessary to offset overpayments made in a
calendar year before the calendar year of the distribution. The
department, after reviewing the recommendation of the budget
agency, may reduce the amount of the certified distribution over
several calendar years so that any overpayments are offset over
several years rather than in one (1) lump sum.
(d) The department, after reviewing the recommendation of the
budget agency, shall adjust the certified distribution of a county to
correct for any clerical or mathematical errors made in any previous
certification under this section. The department, after reviewing the
recommendation of the budget agency, may reduce the amount of the
certified distribution over several calendar years so that any
adjustment under this subsection is offset over several years rather
than in one (1) lump sum.
(e) This subsection applies to a county that:
(1) initially imposed the county option income tax; or
(2) increases the county option income tax rate;
under this chapter in the same calendar year in which the department
makes a certification under this section. The department, after
reviewing the recommendation of the budget agency, shall adjust the
certified distribution of a county to provide for a distribution in the
immediately following calendar year and in each calendar year
thereafter. The department shall provide for a full transition to
certification of distributions as provided in subsection (a)(1) through
(a)(2) in the manner provided in subsection (c).
(f) One-twelfth (1/12) of each adopting county's certified
distribution for a calendar year shall be distributed from its account
established under section 16 of this chapter to the appropriate county
treasurer on the first day of each month of that calendar year.
(g) Upon receipt, each monthly payment of a county's certified
distribution shall be allocated among, distributed to, and used by the
civil taxing units of the county as provided in sections 18 and 19 of
this chapter.
(h) All distributions from an account established under section 16
of this chapter shall be made by warrants issued by the auditor of
state to the treasurer of state ordering the appropriate payments.
As added by P.L.44-1984, SEC.14. Amended by P.L.23-1986,
SEC.10; P.L.178-2002, SEC.61; P.L.1-2003, SEC.42; P.L.267-2003,
SEC.8; P.L.207-2005, SEC.7.
Last modified: May 28, 2006