Additional homestead credit to offset inventory property tax
deduction; replacement of lost revenue; auditor adjustment;
ordinance
Sec. 26. (a) This section applies only to homestead credits for
property taxes first due and payable after calendar year 2006.
(b) For purposes of this section, "adopting entity" means:
(1) the entity that adopts an ordinance under IC 6-1.1-12-41(f);
or
(2) any other entity that may impose a county economic
development income tax under section 5 of this chapter.
(c) An adopting entity may adopt an ordinance to provide for the
use of the certified distribution described in section 16(c) of this
chapter for the purpose provided in subsection (e). An adopting
entity that adopts an ordinance under this subsection shall use the
procedures set forth in IC 6-3.5-6 concerning the adoption of an
ordinance for the imposition of the county option income tax. An
ordinance must be adopted under this subsection after January 1 but
before April 1 of a calendar year. The ordinance may provide for an
additional rate under section 5(p) of this chapter. An ordinance
adopted under this subsection:
(1) first applies to the certified distribution described in section
16(c) of this chapter made in the later of the calendar year that
immediately succeeds the calendar year in which the ordinance
is adopted or calendar year 2007; and
(2) must specify that the certified distribution must be used to
provide for:
(A) uniformly applied increased homestead credits as
provided in subsection (f); or
(B) allocated increased homestead credits as provided in
subsection (h).
An ordinance adopted under this subsection may be combined with
an ordinance adopted under section 25 of this chapter.
(d) If an ordinance is adopted under subsection (c), the percentage
of the certified distribution specified in the ordinance for use for the
purpose provided in subsection (e) shall be:
(1) retained by the county auditor under subsection (i); and
(2) used for the purpose provided in subsection (e) instead of
the purposes specified in the capital improvement plans adopted
under section 15 of this chapter.
(e) If an ordinance is adopted under subsection (c), the adopting
entity shall use the certified distribution described in section 16(c) of
this chapter to increase the homestead credit allowed in the county
under IC 6-1.1-20.9 for a year to offset the effect on homesteads in
the county resulting from the statewide deduction for inventory under
IC 6-1.1-12-42.
(f) If the imposing entity specifies the application of uniform
increased homestead credits under subsection (c)(2)(A), the county
auditor shall, for each calendar year in which an increased homestead
credit percentage is authorized under this section, determine:
(1) the amount of the certified distribution that is available to
provide an increased homestead credit percentage for the year;
(2) the amount of uniformly applied homestead credits for the
year in the county that equals the amount determined under
subdivision (1); and
(3) the increased percentage of homestead credit that equates to
the amount of homestead credits determined under subdivision
(2).
(g) The increased percentage of homestead credit determined by
the county auditor under subsection (f) applies uniformly in the
county in the calendar year for which the increased percentage is
determined.
(h) If the imposing entity specifies the application of allocated
increased homestead credits under subsection (c)(2)(B), the county
auditor shall, for each calendar year in which an increased homestead
credit is authorized under this section, determine:
(1) the amount of the certified distribution that is available to
provide an increased homestead credit for the year; and
(2) except as provided in subsection (j), an increased percentage
of homestead credit for each taxing district in the county that
allocates to the taxing district an amount of increased
homestead credits that bears the same proportion to the amount
determined under subdivision (1) that the amount of inventory
assessed value deducted under IC 6-1.1-12-42 in the taxing
district for the immediately preceding year's assessment date
bears to the total inventory assessed value deducted under
IC 6-1.1-12-42 in the county for the immediately preceding
year's assessment date.
(i) The county auditor shall retain from the payments of the
county's certified distribution an amount equal to the revenue lost, if
any, due to the increase of the homestead credit within the county.
The money shall be distributed to the civil taxing units and school
corporations of the county:
(1) as if the money were from property tax collections; and
(2) in such a manner that no civil taxing unit or school
corporation will suffer a net revenue loss because of the
allowance of an increased homestead credit.
(j) Subject to the approval of the imposing entity, the county
auditor may adjust the increased percentage of homestead credit
determined under subsection (h)(2) if the county auditor determines
that the adjustment is necessary to achieve an equitable reduction of
property taxes among the homesteads in the county.
As added by P.L.192-2002(ss), SEC.128. Amended by P.L.1-2003,
SEC.46; P.L.272-2003, SEC.6; P.L.97-2004, SEC.33; P.L.199-2005,
SEC.26.
Last modified: May 28, 2006