§ 6-3.6-7-19.5 — Additional rate for Rush County jail and related facilities construction, operation, and maintenance; pledge for bonds; balance transfer to county rainy day fund

Indiana § 6-3.6-7-19.5

• Jurisdiction: Indiana
• Art. 3.6: LOCAL INCOME TAXES
• Ch. 7: Special Purpose Rates

Text

5. (a) This section applies to Rush County.
(b) The county council may, by ordinance, determine that additional
local income tax revenue is needed in the county to do the following:
(1) Finance, construct, acquire, improve, renovate, and equip the
county jail and related buildings and parking facilities, including
costs related to the demolition of existing buildings, the
acquisition of land, and any other reasonably related costs.
(2) Repay bonds issued or leases entered into for the purposes
described in subdivision (1).
(3) Operate and maintain the facilities described in subdivision
(1).
(c) If the county council makes the determination set forth in
subsection (b), the county council may adopt an ordinance to impose
a local income tax rate of:
(1) fifteen-hundredths percent (0.15%);
(2) two-tenths percent (0.2%);
(3) twenty-five hundredths percent (0.25%);
(4) three-tenths percent (0.3%);
(5) thirty-five hundredths percent (0.35%);
(6) four-tenths percent (0.4%);
(7) forty-five hundredths percent (0.45%);
(8) five-tenths percent (0.5%);
(9) fifty-five hundredths percent (0.55%); or
(10) six-tenths percent (0.6%).
The tax rate may not be greater than the rate necessary to pay for the
purposes described in subsection (b).
(d) The tax rate used to pay for the purposes described in subsection
(b)(1) and (b)(2) may be imposed only until the latest of the following
dates:
(1) The date on which the financing, construction, acquisition,
improvement, and equipping of the facilities as described in
subsection (b) are completed.
(2) The date on which the last of any bonds issued (including
refunding bonds) or leases entered into to finance the
construction, acquisition, improvement, renovation, and
equipping of the facilities described in subsection (b) are fully
paid.
(3) The date on which an ordinance adopted under subsection (c)
is rescinded.
(e) If the county council imposes a tax under this section to pay for
the purposes described in subsection (b)(1) and (b)(2), in the year
before the facilities are ready for occupancy, the county council shall
by ordinance establish a tax rate at a rate permitted under subsection
(c) so that the revenue from the tax rate established under this
subsection does not exceed the costs of operating and maintaining the
facilities described in subsection (b). The tax rate under this subsection
may be imposed beginning in the year following the year the ordinance
is adopted and until the date on which the ordinance adopted under this
subsection is rescinded.
(f) The term of a bond issued (including any refunding bond) or a
lease entered into under subsection (b) may not exceed twenty-five (25)
years.
(g) The county treasurer shall establish a county jail revenue fund
to be used only for the purposes described in this section. Local income
tax revenues derived from the tax rate imposed under this section shall
be deposited in the county jail revenue fund.
(h) Local income tax revenues derived from the tax rate imposed
under this section:
(1) may be used only for the purposes described in this section;
(2) may not be considered by the department of local government
finance in determining the county's maximum permissible
property tax levy limit under IC 6-1.1-18.5; and
(3) may be pledged to the repayment of bonds issued or leases
entered into for the purposes described in subsection (b).
(i) Rush County possesses unique governmental and economic
development challenges and opportunities due to the following:
(1) Deficiencies in the current county jail, including the
following:
(A) Aging facilities that have not been significantly improved
or renovated since the original construction.
(B) Lack of recreation and medical facilities.
(C) Inadequate line of sight supervision of inmates due to the
configuration of the aging jail.
(D) Lack of adequate housing for an increasing female inmate
population and for inmates with special needs.
(E) Lack of adequate administrative space.
(F) Increasing maintenance demands and costs resulting from
having aging facilities.
(2) A limited industrial and commercial assessed valuation in the
county.
The use of local income tax revenues as provided in this section is
necessary for the county to provide adequate jail capacity in the county
and to maintain low property tax rates essential to economic
development. The use of local income tax revenues as provided in this
section to pay any bonds issued or leases entered into to finance the
construction, acquisition, improvement, renovation, and equipping of
the facilities described in subsection (b), rather than the use of property
taxes, promotes those purposes.
(j) Money accumulated from the local income tax rate imposed
under this section after the termination of the tax under this section
shall be transferred to the county rainy day fund under IC 36-1-8-5.1.

Legislative History

As added by P.L.197-2016, SEC.61.