§ 6-3.6-7-28 — Grant County; additional rate for county jail; balance transfer to the county rainy day fund

Indiana § 6-3.6-7-28

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

Text

Note: This version of section effective until 7-1-2027. See also
following version of this section, effective 7-1-2027.
Sec. 28. (a) This section applies to Grant County and
only if the local income tax council repeals provisions of its local
income tax ordinance providing that under IC 6-3.6-10-2(7)
one-hundredth of one percent (0.01%) of the county's special purpose
rate revenue is used to fund the Grant County Economic Growth
Council, Inc.
(b) The local income tax 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, 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)
(c) If the local income tax council makes the determination set forth
in subsection (b), the local income tax council may impose a tax on the
adjusted gross income of local taxpayers at a tax rate that does not
exceed the lesser of the following:
(1) Five-tenths percent (0.5%).
(2) The rate necessary to carry out the purposes described in this
section.
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, renovation, 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is rescinded.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) The tax rate under this section 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which the ordinance adopted under this section is rescinded.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) Grant County possesses unique governmental challenges and
opportunities due to deficiencies in the current county jail. 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.137-2024, SEC.12. Amended by P.L.136-2024, SEC.30.