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IN HB1046

Bill

Status

Introduced

1/3/2018

Primary Sponsor

Jeffrey Thompson

Click for details

Origin

House of Representatives

2018 Regular Session

AI Summary

HB 1046 Summary

  • Expires existing local income tax law (IC 6-3.6) on December 31, 2021, and replaces it with new local income tax law effective January 1, 2022.

  • Authorizes counties and municipalities to impose property tax relief rates up to 0.5%, and school corporations up to 0.25%; Marion County municipalities are prohibited from imposing relief rates, but the Marion County city-county council may impose up to 1%.

  • Authorizes counties to impose expenditure rates up to 1.25% (or 2% in Marion County), municipalities up to 1%, and school corporations up to 0.25%, with revenue used for any legal purpose including property tax credits.

  • Requires school corporations to obtain voter approval for expenditure rates unless revenue is used solely for additional property tax credits; approved rates may be imposed for a maximum of eight years and may be reimposed if approved by voters again.

  • Distributes county expenditure rate revenue as certified shares to civil taxing units based on property tax levies, with provisions allowing allocation to public safety answering points or property tax credits before distribution.

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% in the case of counties and municipalities and not more than 0.25% in the case of school corporations. 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%

Last Action

Representative Cherry added as coauthor

1/3/2018

Committee Referrals

Ways and Means1/3/2018

Full Bill Text

No bill text available