Loading chat...
IN HB1380
Bill
Status
1/17/2017
Primary Sponsor
Michael Karickhoff
Click for details
AI Summary
-
Nonresident local taxpayers who work in a county different from their county of residence must pay local income tax in the work county at 25% of the combined tax rates imposed on resident taxpayers in that county.
-
Taxpayers paying the reduced nonresident rate in their employment county receive a credit against their full tax liability in their home county equal to the amount paid to the employment county.
-
The bill defines "nonresident local taxpayer" as any individual who maintains a principal place of business or employment in a county but does not reside there, while remaining an Indiana resident.
-
County auditors must adjust certified distributions to account for taxes collected from nonresident taxpayers and taxes paid by residents to other counties, beginning within ten months of initial collection.
-
The changes become effective July 1, 2017.
Legislative Description
Local option income taxes. Provides that an individual who has a principal place of employment or business in a county other than the individual's county of residence shall pay a local income tax imposed by the county where the individual maintains the principal place of employment or business at a rate that is 25% of the sum of certain tax rates imposed on residents of the county under those taxes. Provides a credit against any tax liability imposed by the individual's county of residence equal to the amount of the tax paid to the county where the individual has the
Last Action
First reading: referred to Committee on Ways and Means
1/17/2017