HB 1124 Summary

• Repeals three existing county income tax laws (county adjusted gross income tax, county option income tax, and county economic development tax) effective January 1, 2015, and replaces them with a unified local income tax law under IC 6-3.6.

• Establishes a new framework for local income taxation allowing counties to impose taxes on adjusted gross income of county taxpayers, with revenue allocated for public safety, economic development, and certified shares to civil taxing units.

• Creates county income tax councils in certain counties to adopt tax ordinances through a voting process where membership is apportioned by population of cities, towns, and unincorporated county areas.

• Provides transitional provisions to convert existing tax rates and obligations under the old system to the new law, maintaining all previously authorized tax pledges, time periods, and bond commitments.

• Directs the legislative council to prepare conforming legislation in the 2015 session to update cross-references in other statutes affected by this comprehensive tax restructuring.