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IN HB1414
Bill
Status
1/17/2017
Primary Sponsor
Jeffrey Thompson
Click for details
AI Summary
HB 1414 Summary: Local Income Tax Restructuring
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Expires existing local income tax law (IC 6-3.6) on December 31, 2021, replacing it with new local income tax framework (IC 6-3.7) effective January 1, 2022.
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Authorizes counties, municipalities, and school corporations to impose property tax relief rates up to 0.5% on adjusted gross income, with Marion County city-county council permitted up to 1%.
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Allows counties, municipalities, and school corporations to impose expenditure rates up to 0.5%, with revenue used for any legal purpose or distributed to other taxing units based on property tax levies.
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Prohibits political subdivisions from pledging local income tax revenue for bond payments after May 31, 2017, and requires adjustment of maximum property tax levies in 2022 to account for previous levy freeze amounts.
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Includes special provisions for 20+ counties with county-specific tax purposes (jail construction, courthouse improvements, economic development), with tax rates and duration limits tailored to each county's circumstances.
Legislative Description
Local income taxes. Expires the existing local income tax law on December 31, 2021, and adds a new local income tax law effective in 2022 and thereafter. Does the following under the new local income tax law: (1) Authorizes counties, municipalities, and school corporations to each enact a property tax relief tax rate of not more than 0.5%. Provides that in Marion County, municipalities may not enact a property tax relief rate, but the Marion County city-county council may adopt a 1% property tax relief rate. (2) Authorizes counties (other than Marion County), municipalities (other than municipalities in Marion County),
Last Action
First reading: referred to Committee on Ways and Means
1/17/2017