HB 1194 Summary

• Authorizes counties to impose an additional income tax rate (up to 1%) to offset property tax circuit breaker losses sustained by political subdivisions in the county.

• Creates new IC 6-3.5-1.1-29 for county adjusted gross income tax and IC 6-3.5-6-34 for county option income tax, allowing these supplemental rates to be annually adjusted.

• Revenue from the new rates must be distributed to each political subdivision that experienced property tax reductions under IC 6-1.1-20.6-9.5, proportional to their losses.

• The additional tax rate and revenue do not count toward maximum income tax rate limits or property tax levy caps under state law.

• Effective upon passage with an emergency declaration.