Introduced House Bill (H)

Authored by

DIGEST

Local income taxes. Expires the existing local income tax law on December 31, 2021, and adds a new local income tax law effective in 2022 and thereafter. Does the following under the new local income tax law: (1) Authorizes counties, municipalities, and school corporations to each enact a property tax relief tax rate of not more than 0.5%. Provides that in Marion County, municipalities may not enact a property tax relief rate, but the Marion County city-county council may adopt a 1% property tax relief rate. (2) Authorizes counties (other than Marion County), municipalities (other than municipalities in Marion County), Local income taxes. Expires the existing local income tax law on December 31, 2021, and adds a new local income tax law effective in 2022 and thereafter. Does the following under the new local income tax law: (1) Authorizes counties, municipalities, and school corporations to each enact a property tax relief tax rate of not more than 0.5%. Provides that in Marion County, municipalities may not enact a property tax relief rate, but the Marion County city-county council may adopt a 1% property tax relief rate. (2) Authorizes counties (other than Marion County), municipalities (other than municipalities in Marion County), and school corporations to each enact an expenditure rate of not more than 0.5%. (3) Provides that if an expenditure rate is imposed by a municipality or school corporation, the municipality or school corporation shall receive the revenue from the tax, and specifies that the revenue may be used for any legal purpose of the municipality or school corporation (including providing additional property tax credits). (4) Provides that if an expenditure rate is imposed by a county other than Marion County, the revenue shall be distributed as certified shares to civil taxing units in the county (other than municipalities and school corporations) on the basis of property tax levies. (5) Authorizes Marion County to enact an expenditure rate of not more than 0.5%, to be distributed as certified shares to the county and to excluded cities in the county on the basis of property tax levies, and provides that the revenue may be used for any legal purpose of the county or excluded cities. (6) Authorizes Marion County to enact an expenditure rate of not more than 0.5%, to be distributed as certified shares to the county and to townships in the county on the basis of property tax levies, and provides that the revenue may be used for any legal purpose of the county or townships. (7) Specifies that in counties other than Marion County, the revenue from the county's expenditure rate may be allocated to a public safety answering point (PSAP) before the remaining revenue is distributed as certified shares, and provides that the revenue also may be used to provide additional property tax credits. (8) Specifies that in Marion County, the revenue from the county's expenditure rate may be allocated to a public communications system and computer facilities district, a public library, or a public transportation corporation before the remaining revenue is distributed as certified shares, and provides that the revenue also may be used to provide additional property tax credits. (9) Provides that, after May 31, 2017, a political subdivision may not pledge for the payment of bonds, leases, or other obligations any tax revenue received under the current local income tax law. (10) For property taxes due and payable in 2022 and thereafter, requires the department of local government finance to adjust each maximum property tax levy for which a levy freeze amount was applied under the existing local income tax law in 2021. Specifies that the legislative council shall provide for the preparation and introduction of legislation in the 2018 session of the general assembly to correct cross references and make other changes to the Indiana Code, as necessary, to bring other provisions of the Indiana Code into conformity with this act. ... View more