Certification of municipality's budget; department of state revenue
to determine amount of tax revenue collected
Sec. 12. (a) If the fiscal body of a municipality in a qualifying
county adopts an ordinance under section 11(a) of this chapter, the
department of local government finance may not certify a budget for
the municipality under IC 6-1.1-17-16(f) for the 2002 calendar year
that is greater than ninety-seven percent (97%) of the budget of the
municipality certified by the department for the 2001 calendar year.
The department of local government finance may not certify a budget
for the municipality under IC 6-1.1-17-16(f) for any later calendar
year that is greater than ninety-seven percent (97%) of the budget of
the municipality certified by the department for the calendar year that
immediately precedes the later calendar year.
(b) If the fiscal body of a municipality in a qualifying county
adopts an ordinance in a calendar year under section 11(c) of this
chapter, the department of local government finance may not certify
a budget for the municipality under IC 6-1.1-17-16(f) for the calendar
year that immediately succeeds the calendar year in which the
ordinance is adopted that is greater than ninety-seven percent (97%)
of the budget of the municipality certified by the department for the
calendar year in which the ordinance was adopted. The department
of local government finance may not certify a budget for the
municipality under IC 6-1.1-17-16(f) for any later calendar year that
is greater than ninety-seven percent (97%) of the budget of the
municipality certified by the department for the calendar year that
immediately precedes the later calendar year.
(c) Before July 1 of 2002 and of each year thereafter, the
department of local government finance shall review the budget
approved for each municipality in a qualifying county in which a
municipal option income tax is in effect to determine whether the
restriction under subsection (a) or (b) has been applied. If the
restriction has not been applied:
(1) the municipal option income tax is rescinded as of July 1 of
the year in which the review was made;
(2) the municipality may not impose the municipal option
income tax for any later year; and
(3) the municipality is:
(A) subject to subsection (d), if the municipality adopted the
municipal option income tax in 2002; or
(B) subject to subsection (e), if the municipality adopted the
municipal option income tax in a year that succeeds 2002.
(d) In May 2003, the department of state revenue shall determine
for each municipality subject to this subsection the amount of tax
revenue collected for the municipality after August 31, 2001, and
before July 1, 2002. The department of state revenue shall
immediately notify the municipality of the amount determined under
this subsection. Not later than thirty (30) days after receiving
notification from the department of state revenue, the municipality
shall transfer the amount determined by the department under this
subsection from the municipality's general fund to the county family
and children's fund of the qualifying county in which the
municipality is located.
(e) In May 2004, and in May of each year thereafter, the
department of state revenue shall determine for each municipality
subject to this subsection the amount of tax revenue collected for the
municipality after June 30 of the calendar year that precedes by two
(2) years the calendar year in which the determination is made and
before July 1 of the year that immediately precedes the calendar year
in which the determination is made. The department of state revenue
shall immediately notify the municipality of the amount determined
under this subsection. Not later than thirty (30) days after receiving
notification from the department of state revenue, the municipality
shall transfer the amount determined by the department under this
section from the municipality's general fund to the county family and
children's fund of the qualifying county in which the municipality is
located.
(f) If a municipality makes a transfer from its general fund to the
county's family and children's fund as described in subsection (d) or
(e), the department of local government finance shall reduce by the
amount transferred the county's maximum family and children's fund
levy under IC 6-1.1-18.6 for the calendar year that immediately
succeeds the year in which the transfer is made.
(g) This subsection applies if the fiscal body of a municipality in
a qualifying county adopts an ordinance under section 11 of this
chapter to impose a municipal option income tax. The maximum
permissible ad valorem property tax levy of the municipality is not
subject to any increase under IC 6-1.1-18.5-3(a) or IC 6-1.1-18.5-3(b)
for taxes payable in:
(1) the calendar year that immediately succeeds the calendar
year in which the ordinance is adopted; and
(2) each succeeding calendar year in which the municipal
option income tax remains in effect.
(h) This subsection applies if the fiscal body of a municipality in
a qualifying county adopts an ordinance under section 14 of this
chapter to rescind the municipal option income tax, or if the
municipal option income tax in a municipality is rescinded by
operation of law. For purposes of IC 6-1.1-18.5-3(a) STEP ONE or
IC 6-1.1-18.5-3(b) STEP ONE, the preceding calendar year is
considered to be the calendar year in which an ordinance was
adopted under section 11 of this chapter to impose the municipal
option income tax.
As added by P.L.151-2001, SEC.6. Amended by P.L.90-2002,
SEC.301.
Last modified: May 28, 2006