Howard County additional rate; findings; uses
Sec. 28. (a) This section applies only to Howard County.
(b) Maintaining low property tax rates is essential to economic
development, and the use of county option income tax revenues as
provided in this chapter and as needed in the county to fund the
operation and maintenance of a jail and juvenile detention center,
rather than the use of property taxes, promotes that purpose.
(c) In addition to the rates permitted by sections 8 and 9 of this
chapter, the county fiscal body 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
fiscal body makes the finding and determination set forth in
subsection (d). Section 8(e) of this chapter applies to the application
of the additional rate to nonresident taxpayers.
(d) In order to impose the county option income tax as provided
in this section, the county fiscal body must adopt an ordinance:
(1) finding and determining that revenues from the county
option income tax are needed in the county to fund the
operation and maintenance of a jail, a juvenile detention center,
or both; and
(2) agreeing to freeze the part of any property tax levy imposed
in the county for the operation of the jail or juvenile detention
center, or both, covered by the ordinance at the rate imposed in
the year preceding the year in which a full year of additional
county option income tax is certified for distribution to the
county under this section for the term in which an ordinance is
in effect under this section.
(e) If the county fiscal body makes a determination under
subsection (d), the county fiscal body may adopt a tax rate under
subsection (c). Subject to the limitations in subsection (c), the county
fiscal body may amend an ordinance adopted under this section to
increase, decrease, or rescind the additional tax rate imposed under
this section. As soon as practicable after the adoption of an ordinance
under this section, the county fiscal body shall send a certified copy
of the ordinance to the county auditor, the department of local
government finance, and the department of state revenue. An
ordinance adopted under this section before April 1 in a year applies
to the imposition of county income taxes after June 30 in that year.
An ordinance adopted under this section after March 31 of a year
initially applies to the imposition of county option income taxes after
June 30 of the immediately following year.
(f) 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.
(g) 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;
and
(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.
(h) The department of local government finance shall enforce an
agreement under subsection (d)(2).
(i) 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.19.
Last modified: May 28, 2006