House Bill (S)

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DIGEST

Local income tax. Adds law enforcement training to the permitted uses of the local income tax. Removes the requirement that the department of local government finance (DLGF) prescribe the form for notices, ordinances, and resolutions that may be adopted under the local income tax law. Removes DLGF's duty to prescribe the hearing requirements and procedures to be used for submitting a notice and vote results on ordinances and adopting and submitting an ordinance or a resolution and replaces it with the general requirements for hearings and procedures. Requires DLGF to prescribe the procedures to be used by the adopting body Local income tax. Adds law enforcement training to the permitted uses of the local income tax. Removes the requirement that the department of local government finance (DLGF) prescribe the form for notices, ordinances, and resolutions that may be adopted under the local income tax law. Removes DLGF's duty to prescribe the hearing requirements and procedures to be used for submitting a notice and vote results on ordinances and adopting and submitting an ordinance or a resolution and replaces it with the general requirements for hearings and procedures. Requires DLGF to prescribe the procedures to be used by the adopting body or governmental entity for submissions to the DLGF. Requires DLGF to notify the submitting entity within thirty (30) days of submission as to whether the department has received the necessary information. Provides that imposing a new tax or changing an existing tax is not effective until the DLGF notifies the adopting body or governmental entity that it has received the required information. Specifies that, for a county that adopted a levy freeze under the former county adjusted gross income tax (CAGIT) or county option income tax (COIT), the levy freeze must be funded using a minimum levy freeze rate that may not be decreased or rescinded unless the levy freeze dollar amount can be funded by a lower levy freeze rate for a year. Specifies that the maximum levy freeze tax rate is one percent (1%). Requires the adopting body to adopt an ordinance to lower the levy freeze tax rate to a rate approved by the department of local government finance. Requires that the allocation of property tax credits must be on the basis of the percentage of property tax replacement revenue within a property category. Removes real property, a mobile home, and industrialized housing that would qualify as a homestead if the taxpayer had filed for a homestead credit or the standard deduction from the list of real property that may be provided a homestead credit. Specifies that an adopting body must include in its allocation ordinance whether it is allocating additional revenue to funding for a public safety answering point (PSAP). Provides that unit level allocations must be based on total property taxes being imposed by the unit for the year preceding the distribution year. Makes technical changes to the local income tax laws. Corrects conflicts that involve references to the local income tax. ... View more