Imposition of tax; procedures; rate of tax; ordinance; effective
date; vote
Sec. 5. (a) Except as provided in subsection (c), the county
economic development income tax may be imposed on the adjusted
gross income of county taxpayers. The entity that may impose the tax
is:
(1) the county income tax council (as defined in IC 6-3.5-6-1)
if the county option income tax is in effect on January 1 of the
year the county economic development income tax is imposed;
(2) the county council if the county adjusted gross income tax
is in effect on January 1 of the year the county economic
development tax is imposed; or
(3) the county income tax council or the county council,
whichever acts first, for a county not covered by subdivision (1)
or (2).
To impose the county economic development income tax, a county
income tax council shall use the procedures set forth in IC 6-3.5-6
concerning the imposition of the county option income tax.
(b) Except as provided in subsections (c), (g), (k), (p), and (r) the
county economic development income tax may be imposed at a rate
of:
(1) one-tenth percent (0.1%);
(2) two-tenths percent (0.2%);
(3) twenty-five hundredths percent (0.25%);
(4) three-tenths percent (0.3%);
(5) thirty-five hundredths percent (0.35%);
(6) four-tenths percent (0.4%);
(7) forty-five hundredths percent (0.45%); or
(8) five-tenths percent (0.5%);
on the adjusted gross income of county taxpayers.
(c) Except as provided in subsection (h), (i), (j), (k), (l), (m), (n),
(o), (p), or (s), the county economic development income tax rate
plus the county adjusted gross income tax rate, if any, that are in
effect on January 1 of a year may not exceed one and twenty-five
hundredths percent (1.25%). Except as provided in subsection (g),
(p), (r), or (t), the county economic development tax rate plus the
county option income tax rate, if any, that are in effect on January 1
of a year may not exceed one percent (1%).
(d) To impose, increase, decrease, or rescind the county economic
development income tax, the appropriate body must, after January 1
but before April 1 of a year, adopt an ordinance. The ordinance to
impose the tax must substantially state the following:
"The ________ County _________ imposes the county economic
development income tax on the county taxpayers of _________
County. The county economic development income tax is imposed
at a rate of _________ percent (____%) on the county taxpayers of
the county. This tax takes effect July 1 of this year.".
(e) Any ordinance adopted under this chapter takes effect July 1
of the year the ordinance is adopted.
(f) The auditor of a county shall record all votes taken on
ordinances presented for a vote under the authority of this chapter
and shall, not more than ten (10) days after the vote, send a certified
copy of the results to the commissioner of the department by certified
mail.
(g) This subsection applies to a county having a population of
more than one hundred forty-eight thousand (148,000) but less than
one hundred seventy thousand (170,000). Except as provided in
subsection (p), in addition to the rates permitted by subsection (b),
the:
(1) county economic development income tax may be imposed
at a rate of:
(A) fifteen-hundredths percent (0.15%);
(B) two-tenths percent (0.2%); or
(C) twenty-five hundredths percent (0.25%); and
(2) county economic development income tax rate plus the
county option income tax rate that are in effect on January 1 of
a year may equal up to one and twenty-five hundredths percent
(1.25%);
if the county income tax council makes a determination to impose
rates under this subsection and section 22 of this chapter.
(h) For a county having a population of more than forty-one
thousand (41,000) but less than forty-three thousand (43,000), except
as provided in subsection (p), the county economic development
income tax rate plus the county adjusted gross income tax rate that
are in effect on January 1 of a year may not exceed one and
thirty-five hundredths percent (1.35%) if the county has imposed the
county adjusted gross income tax at a rate of one and one-tenth
percent (1.1%) under IC 6-3.5-1.1-2.5.
(i) For a county having a population of more than thirteen
thousand five hundred (13,500) but less than fourteen thousand
(14,000), except as provided in subsection (p), the county economic
development income tax rate plus the county adjusted gross income
tax rate that are in effect on January 1 of a year may not exceed one
and fifty-five hundredths percent (1.55%).
(j) For a county having a population of more than seventy-one
thousand (71,000) but less than seventy-one thousand four hundred
(71,400), except as provided in subsection (p), the county economic
development income tax rate plus the county adjusted gross income
tax rate that are in effect on January 1 of a year may not exceed one
and five-tenths percent (1.5%).
(k) This subsection applies to a county having a population of
more than twenty-seven thousand four hundred (27,400) but less than
twenty-seven thousand five hundred (27,500). Except as provided in
subsection (p), in addition to the rates permitted under subsection
(b):
(1) the county economic development income tax may be
imposed at a rate of twenty-five hundredths percent (0.25%);
and
(2) the sum of the county economic development income tax
rate and the county adjusted gross income tax rate that are in
effect on January 1 of a year may not exceed one and
five-tenths percent (1.5%);
if the county council makes a determination to impose rates under
this subsection and section 22.5 of this chapter.
(l) For a county having a population of more than twenty-nine
thousand (29,000) but less than thirty thousand (30,000), except as
provided in subsection (p), the county economic development income
tax rate plus the county adjusted gross income tax rate that are in
effect on January 1 of a year may not exceed one and five-tenths
percent (1.5%).
(m) For:
(1) a county having a population of more than one hundred
eighty-two thousand seven hundred ninety (182,790) but less
than two hundred thousand (200,000); or
(2) a county having a population of more than forty-five
thousand (45,000) but less than forty-five thousand nine
hundred (45,900);
except as provided in subsection (p), the county economic
development income tax rate plus the county adjusted gross income
tax rate that are in effect on January 1 of a year may not exceed one
and five-tenths percent (1.5%).
(n) For a county having a population of more than six thousand
(6,000) but less than eight thousand (8,000), except as provided in
subsection (p), the county economic development income tax rate
plus the county adjusted gross income tax rate that are in effect on
January 1 of a year may not exceed one and five-tenths percent
(1.5%).
(o) This subsection applies to a county having a population of
more than thirty-nine thousand (39,000) but less than thirty-nine
thousand six hundred (39,600). Except as provided in subsection (p),
in addition to the rates permitted under subsection (b):
(1) the county economic development income tax may be
imposed at a rate of twenty-five hundredths percent (0.25%);
and
(2) the sum of the county economic development income tax
rate and:
(A) the county adjusted gross income tax rate that are in
effect on January 1 of a year may not exceed one and
five-tenths percent (1.5%); or
(B) the county option income tax rate that are in effect on
January 1 of a year may not exceed one and twenty-five
hundredths percent (1.25%);
if the county council makes a determination to impose rates under
this subsection and section 24 of this chapter.
(p) In addition:
(1) the county economic development income tax may be
imposed at a rate that exceeds by not more than twenty-five
hundredths percent (0.25%) the maximum rate that would
otherwise apply under this section; and
(2) the:
(A) county economic development income tax; and
(B) county option income tax or county adjusted gross
income tax;
may be imposed at combined rates that exceed by not more than
twenty-five hundredths percent (0.25%) the maximum
combined rates that would otherwise apply under this section.
However, the additional rate imposed under this subsection may not
exceed the amount necessary to mitigate the increased ad valorem
property taxes on homesteads (as defined in IC 6-1.1-20.9-1)
resulting from the deduction of the assessed value of inventory in the
county under IC 6-1.1-12-41 or IC 6-1.1-12-42.
(q) If the county economic development income tax is imposed as
authorized under subsection (p) at a rate that exceeds the maximum
rate that would otherwise apply under this section, the certified
distribution must be used for the purpose provided in section 25(e)
or 26 of this chapter to the extent that the certified distribution
results from the difference between:
(1) the actual county economic development tax rate; and
(2) the maximum rate that would otherwise apply under this
section.
(r) This subsection applies only to a county described in section
27 of this chapter. Except as provided in subsection (p), in addition
to the rates permitted by subsection (b), the:
(1) county economic development income tax may be imposed
at a rate of twenty-five hundredths percent (0.25%); and
(2) county economic development income tax rate plus the
county option income tax rate that are in effect on January 1 of
a year may equal up to one and twenty-five hundredths percent
(1.25%);
if the county council makes a determination to impose rates under
this subsection and section 27 of this chapter.
(s) Except as provided in subsection (p), the county economic
development income tax rate plus the county adjusted gross income
tax rate that are in effect on January 1 of a year may not exceed one
and five-tenths percent (1.5%) if the county has imposed the county
adjusted gross income tax under IC 6-3.5-1.1-3.3.
(t) This subsection applies to Howard County. Except as provided
in subsection (p), the sum of the county economic development
income tax rate and the county option income tax rate that are in
effect on January 1 of a year may not exceed one and twenty-five
hundredths percent (1.25%).
As added by P.L.380-1987(ss), SEC.6. Amended by P.L.35-1990,
SEC.20; P.L.28-1993, SEC.8; P.L.44-1994, SEC.6; P.L.99-1995,
SEC.1; P.L.119-1998, SEC.11; P.L.135-2001, SEC.6; P.L.291-2001,
SEC.179; P.L.185-2001, SEC.3; P.L.1-2002, SEC.34; P.L.178-2002,
SEC.68; P.L.192-2002(ss), SEC.121; P.L.42-2003, SEC.5;
P.L.224-2003, SEC.254; P.L.97-2004, SEC.31; P.L.214-2005,
SEC.20.
Last modified: May 28, 2006