IN HB1056

Authorizes taxing units to impose variable local option income taxes on individual residents and nonresidents whose principal place of business or employment is in the taxing unit

Allows the tax to replace property tax revenue lost from circuit breaker credits under IC 6-1.1-20.6-7.5 or from eliminating property taxes on individually-owned real property

Provides a 100% credit against property taxes on real property for owners who are subject to the variable local income tax, effectively eliminating property taxes for qualifying individuals

Requires the Department of Local Government Finance to annually compute tax rates sufficient to fund the purposes specified by each taxing unit, with rates rounded to the nearest 0.0001%

Establishes a mandatory rainy day fund for each taxing unit equal to 5% of the prior year's distributions, with excess funds used to reduce future tax rates

Repeals the distressed unit appeal board statute (IC 6-1.1-20.3), effective July 1, 2011