Loading chat...
IN HB1485
Bill
Status
5/6/2015
Primary Sponsor
Jeffrey Thompson
Click for details
AI Summary
HB 1485 Summary
-
Consolidates Indiana's complex local income tax system by repealing four separate tax codes (CAGIT, COIT, CEDIT, and special purpose taxes) effective January 1, 2017, and replacing them with a unified Article 6-3.6 local income tax structure.
-
Establishes three components for the new tax: property tax relief rates (IC 6-3.6-5), expenditure rates for schools and public services (IC 6-3.6-6), and special purpose rates (IC 6-3.6-7), with county councils retaining authority to impose and adjust rates by ordinance.
-
Authorizes Rush County to impose additional county adjusted gross income tax at rates up to 0.6% for jail facility financing, construction, renovation, and operation, with bonds limited to 25-year terms and revenue segregated in a dedicated fund.
-
Mandates transition procedures including documentation of existing tax terms and categorization of current tax rates into new components by the Office of Management and Budget, with a comprehensive report to the legislative council by November 1, 2015.
-
Declares an emergency and directs the legislative council to prepare conforming legislation in 2016 to correct cross-references and ensure Indiana Code consistency with the new unified tax structure.
Legislative Description
Local taxation. Provides for a transition from the county adjusted gross income tax (CAGIT), the county option income tax (COIT), the county economic development income tax (CEDIT), and the various local income taxes for special purposes and special projects to a single local income tax with three rate components. Retains special distributions. Specifies that the transition is to take effect in 2017. Provides for a report by the office of management and budget to the legislative council in 2015 showing the effect of the transition on taxing units and taxpayers. Authorizes Rush County to impose a CAGIT tax rate for
Last Action
Public Law 243
5/6/2015