Miami County additional rate; findings; use
Sec. 27. (a) This section applies only to Miami County. Miami
County possesses unique economic development challenges due to:
(1) underemployment in relation to similarly situated counties;
and
(2) the presence of a United States government military base or
other military installation that is completely or partially inactive
or closed.
Maintaining low property tax rates is essential to economic
development, and the use of county option 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 under subsection (c), rather than
use of property taxes, promotes that purpose.
(b) In addition to the rates permitted by sections 8 and 9 of this
chapter, the county council may impose the county option income tax
at a rate of twenty-five hundredths percent (0.25%) on the adjusted
gross income of resident county taxpayers if the county council
makes the finding and determination set forth in subsection (c).
Section 8(e) of this chapter applies to the application of the
additional rate to nonresident taxpayers.
(c) In order to impose the county option income tax as provided
in this section, the county council must adopt an ordinance finding
and determining that revenues from the county option income tax are
needed to pay the costs of financing, constructing, acquiring,
renovating, and equipping a county jail, including the repayment of
bonds issued, or leases entered into, for financing, constructing,
acquiring, renovating, and equipping a county jail.
(d) If the county council makes a determination under subsection
(c), the county council may adopt a tax rate under subsection (b). The
tax rate may not be imposed at a rate or for a time greater than is
necessary to pay the costs of financing, constructing, acquiring,
renovating, and equipping a county jail.
(e) The county treasurer shall establish a county jail revenue fund
to be used only for the purposes described in this section. County
option 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 18 of this chapter.
(f) County option 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 limit under IC 6-1.1-18.5; and
(3) may be pledged to the repayment of bonds issued, or leases
entered into, for the purposes described in subsection (c).
(g) The department, after reviewing the recommendation of the
budget agency, shall adjust the certified distribution of a county to
provide for an increased distribution of taxes in the immediately
following calendar year after the county adopts an increased tax rate
under this section and in each calendar year thereafter. The
department shall provide for a full transition to certification of
distributions as provided in section 17(a)(1) through 17(a)(2) of this
chapter in the manner provided in section 17(c) of this chapter.
As added by P.L.214-2005, SEC.18.
Last modified: May 28, 2006