DIGEST OF INTRODUCED BILL
Local option taxes for counties, cities, and towns. Allows cities and towns, except Indianapolis, to adopt a municipal income tax on individuals who reside within the municipality, regardless of their place of employment. Provides that the maximum rate is 1%. Requires the revenue to be deposited in the municipality's general fund, and allows the municipality to use the revenue for any general fund purpose. Requires the tax to be re-adopted every four years using a ratification ordinance. Allows counties, cities, and towns to adopt a local sales tax applicable to tangible personal property delivered within the geographic boundaries of the political subdivision. Requires the tax to be re-adopted every four years using a ratification ordinance. Provides that the local option sales tax revenue may be used for any lawful purpose. Provides that the department of state revenue shall maintain several data bases of local sales tax data associated with the local option sales tax, in accordance with the requirements of the Streamlined Sales and Use Tax Agreement. Adds the municipal option income tax and local option sales tax to the list of local taxes that may be captured by the state in the case of a local unit failing to make timely debt payments and sources of revenue that may be used by the local unit to make debt service payments. Requires, beginning with the individual income tax return for 2010, the department of state revenue to include on the adjusted gross income tax return a requirement that the taxpayer identify the city or town, if any, where the taxpayer's principal place of residence is located.