Additional tax rate to finance courthouse; county facilities revenue
fund; nonreverting fund for operating costs
Sec. 27. (a) This section applies to a county that:
(1) operates a courthouse that is subject to an order that:
(A) is issued by a federal district court;
(B) applies to an action commenced before January 1, 2003;
and
(C) requires the county to comply with the federal
Americans with Disabilities Act; and
(2) has insufficient revenues to finance the construction,
acquisition, improvement, renovation, equipping, and operation
of the courthouse facilities and related facilities.
(b) A county described in this section possesses unique fiscal
challenges in financing, renovating, equipping, and operating the
county courthouse facilities and related facilities because the county
consistently has one of the highest unemployment rates in Indiana.
Maintaining low property tax rates is essential to economic
development in the county. The use of economic development
income tax revenues under this section for the purposes described in
subsection (c) promotes that purpose.
(c) In addition to actions authorized by section 5 of this chapter,
a county council may, using the procedures set forth in this chapter,
adopt an ordinance to impose an additional county economic
development income tax on the adjusted gross income of county
taxpayers. The ordinance imposing the additional tax must include
a finding that revenues from additional tax are needed to pay the
costs of:
(1) constructing, acquiring, improving, renovating, equipping,
or operating the county courthouse or related facilities;
(2) repaying any bonds issued, or leases entered into, for
constructing, acquiring, improving, renovating, equipping, or
operating the county courthouse or related facilities; and
(3) economic development projects described in the county's
capital improvement plan.
(d) The tax rate imposed under this section may not exceed
twenty-five hundredths percent (0.25%).
(e) If the county council adopts an ordinance to impose an
additional tax under this section, the county auditor shall
immediately send a certified copy of the ordinance to the department
by certified mail. The county treasurer shall establish a county
facilities revenue fund to be used only for the purposes described in
subsection (c)(1) and (c)(2). The amount of county economic
development income tax revenues derived from the tax rate imposed
under this section that are necessary to pay the costs described in
subsection (c)(1) and (c)(2) shall be deposited into the county
facilities revenue fund before a certified distribution is made under
section 12 of this chapter. The remainder shall be deposited into the
economic development income tax funds of the county's units.
(f) County economic development income tax revenues derived
from the tax rate imposed under this section may not be used for
purposes other than those described in this section.
(g) County economic development income tax revenues derived
from the tax rate imposed under this section that are deposited into
the county facilities revenue fund may not be considered by the
department of local government finance in determining the county's
ad valorem property tax levy for an ensuing calendar year under
IC 6-1.1-18.5.
(h) Notwithstanding section 5 of this chapter, an ordinance may
be adopted under this section at any time. If the ordinance is adopted
before June 1 of a year, a tax rate imposed under this section takes
effect July 1 of that year. If the ordinance is adopted after May 31 of
a year, a tax rate imposed under this section takes effect on the
January 1 immediately following adoption of the ordinance.
(i) For a county adopting an ordinance before June 1 in a year, in
determining the certified distribution under section 11 of this chapter
for the calendar year beginning with the immediately following
January 1 and each calendar year thereafter, the department shall
take into account the certified ordinance mailed to the department
under subsection (e). For a county adopting an ordinance after May
31, the department shall issue an initial or a revised certified
distribution for the calendar year beginning with the immediately
following January 1. Except for a county adopting an ordinance after
May 31, a county's certified distribution shall be distributed on the
dates specified under section 16 of this chapter. In the case of a
county adopting an ordinance after May 31, the county, beginning
with the calendar year beginning on the immediately following
January 1, shall receive the entire certified distribution for the
calendar year on November 1 of the year.
(j) Notwithstanding any other law, funds accumulated from the
county economic development income tax imposed under this section
and deposited into the county facilities revenue fund or any other
revenues of the county may be deposited into a nonreverting fund of
the county to be used for operating costs of the courthouse facilities,
juvenile detention facilities, or related facilities. Amounts in the
county nonreverting fund may not be used by the department of local
government finance to reduce the county's ad valorem property tax
levy for an ensuing calendar year under IC 6-1.1-18.5.
As added by P.L.224-2003, SEC.257. Amended by P.L.97-2004,
SEC.34.
Last modified: May 28, 2006