Ind. Code ch. 6-3.6-5

Ind. Code § 6-3.6-5-1 Imposition of tax

Sec. 1. An adopting body may impose a tax under section 6 of this chapter on the adjusted gross income of local taxpayers in the county served by the adopting body. As added by P.L.243-2015, SEC.10.

Ind. Code § 6-3.6-5-2 Treatment of tax as property taxes; credit may not reduce levy limit or approved rate

Sec. 2. A tax imposed under this chapter shall be treated as property taxes for all purposes. However, the department of local government finance may not reduce: (1) any taxing unit's maximum permissible property tax levy limit under IC 6-1.1-18.5; or (2) the approved property tax levy or rate for any fund; by the amount of any credits granted under this chapter. As added by P.L.243-2015, SEC.10.

Ind. Code § 6-3.6-5-3 Adoption of ordinance; imposition of tax; findings and determination of need for the tax revenue

Sec. 3. To impose a tax under this chapter, the adopting body must adopt an ordinance finding and determining that revenues from the tax are needed for the purposes described in section 6 of this chapter. As added by P.L.243-2015, SEC.10.

Ind. Code § 6-3.6-5-4 Credit; reduction in property taxes

Sec. 4. A credit granted under this chapter shall be applied to reduce the property tax liability of a taxpayer before the application of a credit granted under IC 6-1.1-20.4 or IC 6-1.1-20.6. As added by P.L.243-2015, SEC.10. Amended by P.L.247-2017, SEC.12.

Ind. Code § 6-3.6-5-5 Assistance in calculating credit percentage; department of local government finance

Sec. 5. The department of local government finance shall assist adopting bodies and county auditors in calculating credit percentages and amounts under this article. As added by P.L.243-2015, SEC.10. Amended by P.L.197-2016, SEC.46; P.L.201-2023, SEC.105.

Ind. Code § 6-3.6-5-6 Rate of tax; property tax credit; allocation categories; uniform percentage; allocation of revenue to taxing units

Sec. 6. (a) This section applies to all counties. (b) The adopting body may impose a tax rate under this chapter that does not exceed one and twenty-five hundredths percent (1.25%) on the adjusted gross income of local taxpayers in the county served by the adopting body. (c) Revenues from a tax under this section may be used only for the purpose of funding a property tax credit applied on a percentage basis to reduce the property tax liability of taxpayers with tangible property located in the county as authorized under this section. Property taxes imposed due to a referendum in which a majority of the voters in the taxing unit imposing the property taxes approved the property taxes are not eligible for a credit under this section. (d) The adopting body shall specify by ordinance how the revenue from the tax shall be applied under subdivisions (1) through (4) to provide property tax credits in subsequent years. The allocation must be specified as a percentage of property tax relief revenue for taxpayers within each property category. The ordinance must be adopted as provided in IC 6-3.6-3 and takes effect and applies to property taxes as specified in IC 6-3.6-3-3. The ordinance continues to apply thereafter until it is rescinded or modified. The property tax credits may be allocated to all property categories or among any combination of the following categories: (1) For homesteads eligible for a credit under IC 6-1.1-20.6-7.5 that limits the taxpayer's property tax liability for the property to one percent (1%). (2) For residential property, long term care property, agricultural land, and other tangible property (if any) eligible for a credit under IC 6-1.1-20.6-7.5 that limits the taxpayer's property tax liability for the property to two percent (2%). (3) For residential property, as defined in IC 6-1.1-20.6-4. (4) For nonresidential real property, personal property, and other tangible property (if any) eligible for a credit under IC 6-1.1-20.6-7.5 that limits the taxpayer's property tax liability for the property to three percent (3%). (e) Within a category described in subsection (d) for which an ordinance grants property tax credits, the property tax credit rate must be a uniform percentage for all qualifying taxpayers with property in that category in the county. The credit percentage may be, but does not have to be, uniform for all categories of property listed in subsection (d). (f) The county auditor shall allocate the amount of revenue applied as tax credits under this section to the taxing units that imposed the eligible property taxes against which the credits are applied. (g) If the adopting body adopts an ordinance to reduce or eliminate the property tax relief credits that are in effect in the county under this chapter, the county auditor shall give notice of the adoption of the ordinance in accordance with IC 5-3-1 not later than thirty (30) days after the date on which the ordinance is adopted. As added by P.L.243-2015, SEC.10. Amended by P.L.247-2017, SEC.13; P.L.255-2017, SEC.23; P.L.86-2018, SEC.77; P.L.174-2022, SEC.47.

Ind. Code § 6-3.6-5-7 Chapter expiration

Revisor's Note: The effective date of this section, as added by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028. Effective 7-1-2028. Sec. 7. This chapter expires December 31, 2028. As added by P.L.68-2025, SEC.116. Amended by P.L.157-2026, SEC.123.