§ 6-3.6-9-15 — Trust account; excess balance; supplemental distribution; amount; allocation

Indiana § 6-3.6-9-15

• Jurisdiction: Indiana
• Art. 3.6: LOCAL INCOME TAXES
• Ch. 9: Distribution of Revenue

Text

Note: This version of section amended by P.L.230-2025, SEC.85.
See also following repeal of this section by P.L.68-2025, SEC.169,
effective 1-1-2028.
Sec. 15. (a) If the budget agency determines that the
balance in a county trust account exceeds fifteen percent (15%) (or the
percentage set forth in subsection (g), if applicable) of the certified
distributions to be made to the county in the determination year, the
budget agency shall make a supplemental distribution to the county
from the county's trust account. The budget agency shall use the trust
account balance as of December 31 of the year that precedes the
determination year by two (2) years (referred to as the "trust account
balance year" in this section).
(b) A supplemental distribution described in subsection (a) must be:
(1) made at the same time as the determinations are provided to
the county auditor under subsection (d)(3); and
(2) allocated in the same manner as certified distributions for the
purposes described in this article.
(c) The amount of a supplemental distribution described in
subsection (a) is equal to the amount by which:
(1) the balance in the county trust account; minus
(2) the amount of any supplemental or special distribution that has
not yet been accounted for in the last known balance of the
county's trust account;
exceeds fifteen percent (15%) (or the percentage set forth in subsection
(g), if applicable) of the certified distributions to be made to the county
in the determination year.
(d) For a county that qualifies for a supplemental distribution under
this section in a year, the following apply:
(1) Before February 15, the budget agency shall update the
information described in section 9 of this chapter to include the
excess account balances to be distributed under this section.
(2) Before May 2, the budget agency shall provide the amount of
the supplemental distribution for the county to the department of
local government finance and to the county auditor.
(3) The department of local government finance shall determine
for the county and each taxing unit within the county:
(A) the amount and allocation of the supplemental distribution
attributable to the taxes that were imposed as of December 31
of the trust account balance year, including any specific
distributions for that year; and
(B) the amount of the allocation for each of the purposes set
forth in this article, using the allocation percentages in effect in
the trust account balance year.
The department of local government finance shall provide these
determinations to the county auditor before May 16 of the
determination year.
(4) Before June 1, the county auditor shall distribute to each
taxing unit the amount of the supplemental distribution that is
allocated to the taxing unit under subdivision (3). However, for a
county with a former tax to provide for a levy freeze under IC 6-3.6-11-1, the supplemental distribution shall first be distributed
as determined in any resolution adopted under IC 6-3.6-11-1(d).
For determinations before 2019, the tax rates in effect under and the
allocation methods specified in the former income tax laws shall be
used for the determinations under subdivision (3).
(e) For any part of a supplemental distribution attributable to
property tax credits under a former income tax or IC 6-3.6-5, the
adopting body for the county may allocate the supplemental
distribution to property tax credits for not more than the three (3) years
after the year the supplemental distribution is received.
(f) Any income earned on money held in a trust account established
for a county under this chapter shall be deposited in that trust account.
(g) This subsection applies only to counties that contain at least four
(4) municipalities (cities or towns) each with a population greater than
forty thousand (40,000), as determined by the most recent federal
decennial census, in which at least one (1) of those municipalities
meets the definition of a qualifying municipality under IC 6-1.1-18.5-31(d). The following percentages apply for purposes of the
determinations under subsections (a) and (c):
(1) For the determination year beginning after December 31,
2025, and ending before January 1, 2027, twelve and five-tenths
percent (12.5%).
(2) For the determination year beginning after December 31,
2026, and ending before January 1, 2028, ten percent (10%).
(3) For a determination year beginning after December 31, 2027,
and ending before January 1, 2029, seven and five-tenths percent
(7.5%).
(4) For the determination year beginning after December 31,
2028, and ending before January 1, 2030, five percent (5%).
(5) For the determination year beginning after December 31,
2029, and ending before January 1, 2031, two and one-half
percent (2.5%).
(6) For the determination year beginning after December 31,
2030, one percent (1%).

Legislative History

As added by P.L.243-2015, SEC.10. Amended by P.L.126-2016, SEC.2; P.L.257-2019, SEC.73; P.L.239-2023, SEC.15; P.L.230-2025, SEC.85.