Ind. Code ch. 6-3.6-3

Ind. Code ch. 6-3.6-3
in effect

Ind. Code § 6-3.6-3-1 Adopting body; local income tax council; county fiscal body

Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028. Sec. 1. (a) The following is the adopting body for a county: (1) The local income tax council in a county in which the county income tax council adopted either: (A) a county option income tax under IC 6-3.5-6 (repealed) that was in effect on January 1, 2015; or (B) a county economic development income tax for the county under IC 6-3.5-7 (repealed) that was in effect on January 1, 2015. (2) The county fiscal body in any other county. (3) The county fiscal body for purposes of adopting a rate dedicated to paying for a PSAP in the county as permitted by IC 6-3.6-6-2.5. (4) The county fiscal body for purposes of adopting a rate dedicated to paying for acute care hospitals in the county as permitted by IC 6-3.6-6-2.6. (5) The county fiscal body for purposes of adopting a rate dedicated to paying for correctional facilities and rehabilitation facilities in the county as permitted by IC 6-3.6-6-2.7. (b) A local income tax council is established for each county. The membership of each county's local income tax council consists of the fiscal body of the county and the fiscal body of each city or town that lies either partially or entirely within that county. As added by P.L.243-2015, SEC.10. Amended by P.L.180-2016, SEC.15; P.L.184-2018, SEC.1; P.L.137-2024, SEC.2.

Ind. Code § 6-3.6-3-1 Adopting body; county fiscal body

Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028. Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028. Sec. 1. (a) The fiscal body of the county is the adopting body for a county. (b) The fiscal body of the city or town is the adopting body for a city or town for purposes of adopting a municipal rate under IC 6-3.6-6-22. As added by P.L.243-2015, SEC.10. Amended by P.L.180-2016, SEC.15; P.L.184-2018, SEC.1; P.L.137-2024, SEC.2; P.L.68-2025, SEC.102.

Ind. Code § 6-3.6-3-2 Actions by ordinance or resolution; uniform documents; hearing requirements and procedures; certification

Sec. 2. (a) An adopting body or, if authorized by this article, another governmental entity that is not an adopting body, may take an action under this article only by ordinance, unless this article permits the action to be taken by resolution. (b) The department of local government finance, in consultation with the department of state revenue, may make electronically available uniform notices, ordinances, and resolutions that an adopting body or other governmental entity may use to take an action under this article. (c) An ordinance or resolution adopted under this article must comply with the notice and hearing requirements set forth in IC 5-3-1. (d) The department of local government finance shall prescribe the procedures to be used by the adopting body or governmental entity for submitting to the department the notice, the adopting ordinance or resolution, and the vote results on an ordinance or resolution. The department of local government finance shall notify the submitting entity within thirty (30) days after submission whether the department has received the necessary information required by the department. A final action taken by an adopting body or governmental entity under this article to impose a new tax or amend an existing tax is not effective until the department of local government finance notifies the adopting body or governmental entity that it has received the required information from the submitting entity. (e) Not later than July 1 of each calendar year, the county auditor shall certify to the department of local government finance and to the state GIS officer which taxing units comprise each taxing district in the county. As added by P.L.243-2015, SEC.10. Amended by P.L.247-2017, SEC.8; P.L.257-2019, SEC.69; P.L.159-2020, SEC.54; P.L.157-2026, SEC.112.

Ind. Code § 6-3.6-3-2.5 Annual submission of a county's, city's, or town's debt service obligations payable from local income tax revenue

Effective 7-1-2027. Sec. 2.5. (a) As used in this section, "debt service obligations" refers to: (1) the principal and interest payable during a calendar year on bonds; (2) lease rental payments payable during a calendar year on leases; and (3) any amount required under an agreement for bonds or leases to be deposited in a sinking fund or other reserve during a calendar year; of a county, city, or town payable from local income taxes. (b) Before August 1 of each calendar year, the fiscal officer of each county, city, and town shall provide the department of local government finance with the total amount of the county's, city's, or town's debt service obligations payable from local income tax revenues that will be due in the ensuing calendar year and, upon request by the department of local government finance, any additional ensuing calendar years. (c) The department of local government finance shall annually determine whether each county, city, or town with debt service obligations due in the ensuing year has timely submitted to the department of local government finance the information required under this section. As added by P.L.157-2026, SEC.113.

Ind. Code § 6-3.6-3-3 Effective date of ordinance

Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028. Sec. 3. (a) Except as provided in subsection (f), an ordinance adopted under this article takes effect as provided in this section. (b) An ordinance that adopts, increases, decreases, or rescinds a tax or a tax rate takes effect as follows: (1) An ordinance adopted after December 31 of the immediately preceding year and before September 1 of the current year takes effect on October 1 of the current year. (2) An ordinance adopted after August 31 and before November 1 of the current year takes effect on January 1 of the following year. (3) An ordinance adopted after October 31 of the current year and before January 1 of the following year takes effect on October 1 of the following year. (c) An ordinance that grants, increases, decreases, rescinds, or changes a credit against the property tax liability of a taxpayer takes effect as follows: (1) An ordinance adopted after December 31 of the immediately preceding year and before November 2 of the current year takes effect on January 1 of, and applies to property taxes first due and payable in, the year immediately following the year in which the ordinance is adopted. (2) An ordinance adopted after November 1 of the current year and before January 1 of the immediately succeeding year takes effect on January 1 of, and applies to property taxes first due and payable in, the year that follows the current year by two (2) years. (d) An ordinance that grants, increases, decreases, rescinds, or changes a distribution or allocation of taxes takes effect as follows: (1) An ordinance adopted after December 31 of the immediately preceding year and before November 2 of the current year takes effect January 1 of the year immediately following the year in which the ordinance is adopted. (2) An ordinance adopted after November 1 of the current year and before January 1 of the immediately succeeding year takes effect January 1 of the year that follows the current year by two (2) years. (e) An ordinance not described in subsections (b) through (d) takes effect as provided under IC 36 for other ordinances of the governmental entity adopting the ordinance. (f) An ordinance described in section 7(e) or 7.5(e) of this chapter that changes a tax rate or changes the allocation of revenue received from a tax rate does not take effect as provided under this section if the county adopting body fails to meet the required deadlines for notice described in section 7(e) or 7.5(e) of this chapter. If an ordinance does not take effect, the tax rate or allocation, as applicable, that is subject to the proposed change in the ordinance shall be the lesser of the: (1) applicable distribution schedule for the certified distribution for the upcoming calendar year; or (2) applicable distribution schedule for the certified distribution for the current calendar year; unless, or until, a subsequent ordinance is adopted and the required deadlines for notice described in section 7(e) or 7.5(e) of this chapter are met. This subsection expires January 1, 2025. As added by P.L.243-2015, SEC.10. Amended by P.L.247-2017, SEC.9; P.L.236-2023, SEC.75.

Ind. Code § 6-3.6-3-3 Effective date of ordinance

Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028. Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028. Sec. 3. (a) Except as provided in subsection (f), an ordinance adopted by a county under this article takes effect as provided in this section. (b) An ordinance that adopts, increases, decreases, or rescinds a tax or a tax rate takes effect as follows: (1) An ordinance adopted on or before October 1 of a calendar year shall take effect on January 1 of the calendar year that immediately succeeds the year in which the ordinance is adopted. (2) An ordinance adopted after October 1 of a calendar year shall take effect on January 1 of the second succeeding calendar year following the year the ordinance is adopted. However, an ordinance adopted to impose a tax rate under IC 6-3.6-6-2(b)(3) or IC 6-3.6-6-2(b)(4) must be adopted on or before October 1 of a calendar year. (c) An ordinance that grants, increases, decreases, rescinds, or changes a credit against the property tax liability of a taxpayer under IC 6-3.6-5 (before its expiration) takes effect as follows: (1) An ordinance adopted after December 31 of the immediately preceding year and before November 2 of the current year takes effect on January 1 of, and applies to property taxes first due and payable in, the year immediately following the year in which the ordinance is adopted. (2) An ordinance adopted after November 1 of the current year and before January 1 of the immediately succeeding year takes effect on January 1 of, and applies to property taxes first due and payable in, the year that follows the current year by two (2) years. This subsection expires December 31, 2028. (d) An ordinance that grants, increases, decreases, rescinds, or changes a distribution or allocation of taxes takes effect as follows: (1) An ordinance adopted on or before October 1 of a calendar year shall take effect on January 1 of the calendar year that immediately succeeds the year in which the ordinance is adopted. (2) An ordinance adopted after October 1 of a calendar year shall take effect on January 1 of the second succeeding calendar year following the year the ordinance is adopted. (e) An ordinance not described in subsections (b) through (d) takes effect as provided under IC 36 for other ordinances of the governmental entity adopting the ordinance. (f) An ordinance described in section 7(e) or 7.5(e) of this chapter that changes a tax rate or changes the allocation of revenue received from a tax rate does not take effect as provided under this section if the county adopting body fails to meet the required deadlines for notice described in section 7(e) or 7.5(e) of this chapter. If an ordinance does not take effect, the tax rate or allocation, as applicable, that is subject to the proposed change in the ordinance shall be the lesser of the: (1) applicable distribution schedule for the certified distribution for the upcoming calendar year; or (2) applicable distribution schedule for the certified distribution for the current calendar year; unless, or until, a subsequent ordinance is adopted and the required deadlines for notice described in section 7(e) or 7.5(e) of this chapter are met. This subsection expires January 1, 2025. As added by P.L.243-2015, SEC.10. Amended by P.L.247-2017, SEC.9; P.L.236-2023, SEC.75; P.L.68-2025, SEC.103; P.L.157-2026, SEC.114.

Ind. Code § 6-3.6-3-3.3 Effective date of ordinance; municipal local income tax

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. 3.3. (a) This section applies to an ordinance adopted by a city or town that adopts, increases, decreases, or rescinds a tax or a tax rate under IC 6-3.6-6-22. (b) An ordinance adopted by a city or town on or before October 1 of a calendar year shall take effect on January 1 of the calendar year that immediately succeeds the year in which the ordinance is adopted. (c) An ordinance adopted by a city or town after October 1 of a calendar year shall take effect on January 1 of the second succeeding calendar year following the year the ordinance is adopted. As added by P.L.68-2025, SEC.104.

Ind. Code § 6-3.6-3-4 Tax rate remains in effect until effective date of ordinance; expiration date

Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028. Sec. 4. (a) Except for a tax rate that has an expiration date, and except as provided in section 3(f) of this chapter (before its expiration), a tax rate remains in effect until the effective date of an ordinance that increases, decreases, or rescinds that tax rate. (b) A tax rate may not be changed more than once each year under this article. As added by P.L.243-2015, SEC.10. Amended by P.L.236-2023, SEC.76.

Ind. Code § 6-3.6-3-4 Tax rate expiration date; continuation of tax rate by ordinance after December 31, 2028

Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028. Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028. Sec. 4. (a) Except for a tax rate that has an expiration date, and except as provided in section 3(f) of this chapter (before its expiration), a tax rate remains in effect until the effective date of an ordinance that increases, decreases, or rescinds that tax rate. (b) A tax rate may not be changed more than once each year under this article. (c) A local income tax expenditure tax rate that is imposed in a county under IC 6-3.6-6 continues in effect after December 31, 2028, only if the adopting body adopts an ordinance to renew the expenditure tax rate beginning January 1, 2029. However, if there are bonds or leases outstanding that are payable from a tax imposed under IC 6-3.6-6, the expenditure tax rate for the county beginning January 1, 2029, under IC 6-3.6-6-2(b)(1) shall be at least the minimum tax rate necessary to produce one and twenty-five hundredths (1.25) times the sum of the: (1) highest annual outstanding debt service; (2) highest annual lease payments; and (3) any amount required under the agreements for the bonds or leases to be deposited in a sinking fund or other reserve; but only until the maturity date of those debt obligations. An ordinance under this subsection must be adopted by the adopting body on or before October 1, 2028, as set forth in section 3(b)(1) of this chapter. However, this subsection shall not be construed to prohibit an adopting body that fails to adopt an ordinance to continue an expenditure tax rate after December 31, 2028, from adopting an ordinance under this article to impose, renew, or modify an expenditure tax rate under IC 6-3.6-6 beginning January 1, 2030, or any year thereafter. As added by P.L.243-2015, SEC.10. Amended by P.L.236-2023, SEC.76; P.L.68-2025, SEC.105; P.L.157-2026, SEC.115.

Ind. Code § 6-3.6-3-5 Voting on ordinances; votes recorded and certified by auditor of the county; county with a single voting bloc

Note: This version of section effective until 7-1-2027. See also following version of this section, effective 7-1-2027. Sec. 5. (a) The auditor of a county shall record all votes taken on ordinances presented for a vote under this article and not more than ten (10) days after the vote, send a certified copy of the results to: (1) the commissioner of the department of state revenue; and (2) the commissioner of the department of local government finance; in an electronic format approved by the commissioner of the department of local government finance. (b) Except as provided in subsection (c), this subsection applies only to a county that has a local income tax council. The county auditor may cease sending certified copies after the county auditor sends a certified copy of results showing that members of the local income tax council have cast a majority of the votes on the local income tax council for or against the proposed ordinance. (c) This subsection applies only to a county with a single voting bloc that proposes to increase (but not decrease) a tax rate in the county. The county auditor may cease sending certified copies of the votes on the local income tax council voting as a whole under section 9.5 of this chapter after the county auditor sends a certified copy of results showing that the individuals who sit on the fiscal bodies of the county, cities, and towns that are members of the local income tax council have cast a majority of the votes on the local income tax council voting as a whole under section 9.5 of this chapter for or against the proposed ordinance. This subsection expires May 31, 2028. As added by P.L.243-2015, SEC.10. Amended by P.L.154-2020, SEC.29; P.L.159-2021, SEC.21; P.L.137-2024, SEC.3; P.L.223-2025, SEC.5; P.L.157-2026, SEC.116.

Ind. Code § 6-3.6-3-5 Voting on ordinances; votes recorded and certified by auditor of the county

Note: This version of section effective 7-1-2027. See also preceding version of this section, effective until 7-1-2027. Sec. 5. The auditor of a county (or the fiscal officer of a municipality in the case of a local income tax imposed under IC 6-3.6-6-22) shall record all votes taken on ordinances presented for a vote under this article and not more than ten (10) days after the vote, send a certified copy of the results to: (1) the commissioner of the department of state revenue; and (2) the commissioner of the department of local government finance; in an electronic format approved by the commissioner of the department of local government finance. As added by P.L.243-2015, SEC.10. Amended by P.L.154-2020, SEC.29; P.L.159-2021, SEC.21; P.L.137-2024, SEC.3; P.L.223-2025, SEC.5; P.L.68-2025, SEC.106; P.L.157-2026, SEC.116; P.L.23-2026, SEC.39; P.L.157-2026, SEC.117.

Ind. Code § 6-3.6-3-6 Local income tax council; allocation of votes; county with a single voting bloc

Note: This version of section effective until 7-1-2028. See also following repeal of this section, effective 7-1-2028. Sec. 6. (a) This section applies to a county in which the county adopting body is a local income tax council. (b) In the case of a city or town that lies within more than one (1) county, the county auditor of each county shall base the allocations required by subsections (d) and (e) on the population of that part of the city or town that lies within the county for which the allocations are being made. (c) Each local income tax council has a total of one hundred (100) votes. (d) Each county, city, or town that is a member of a local income tax council is allocated a percentage of the total one hundred (100) votes that may be cast. The percentage that a city or town is allocated for a year equals the same percentage that the population of the city or town bears to the population of the county. The percentage that the county is allocated for a year equals the same percentage that the population of all areas in the county not located in a city or town bears to the population of the county. (e) This subsection applies only to a county with a single voting bloc. Each individual who sits on the fiscal body of a county, city, or town that is a member of the local income tax council is allocated for a year the number of votes equal to the total number of votes allocated to the particular county, city, or town under subsection (d) divided by the number of members on the fiscal body of the county, city, or town. This subsection expires May 31, 2028. (f) On or before January 1 of each year, the county auditor shall certify to each member of the local income tax council the number of votes, rounded to the nearest one hundredth (0.01), each member has for that year. (g) This subsection applies only to a county with a single voting bloc. On or before January 1 of each year, in addition to the certification to each member of the local income tax council under subsection (f), the county auditor shall certify to each individual who sits on the fiscal body of each county, city, or town that is a member of the local income tax council the number of votes, rounded to the nearest one hundredth (0.01), each individual has under subsection (e) for that year. This subsection expires May 31, 2028. As added by P.L.243-2015, SEC.10. Amended by P.L.154-2020, SEC.30; P.L.159-2021, SEC.22; P.L.32-2021, SEC.12; P.L.137-2024, SEC.4; P.L.223-2025, SEC.6; P.L.157-2026, SEC.118.

Ind. Code § 6-3.6-3-6 Repealed

Revisor's Note: The effective date of this section, as repealed by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028. Note: This repeal of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028. As added by P.L.243-2015, SEC.10. Amended by P.L.154-2020, SEC.30; P.L.159-2021, SEC.22; P.L.32-2021, SEC.12; P.L.137-2024, SEC.4; P.L.223-2025, SEC.6; P.L.157-2026, SEC.118. Repealed by P.L.68-2025, SEC.107 and P.L.145-2026, SEC.26.

Ind. Code § 6-3.6-3-7 Local income tax council; procedures for proposal of an ordinance; notice and public hearing; notice to affected local taxing units

Note: This version of section effective until 7-1-2028. See also following repeal of this section, effective 7-1-2028. Sec. 7. (a) This section applies to a county in which the county adopting body is a local income tax council. (b) Before a member of the local income tax council may propose an ordinance under section 8 of this chapter, or vote on a proposed ordinance (including a proposed ordinance under section 8(e) of this chapter that is being considered by the local income tax council as a whole as required under section 9.5 of this chapter (before its expiration)), the member must hold a public hearing on the proposed ordinance and provide the public with notice of the time and place where the public hearing will be held. (c) The notice required by subsection (b) must be given in accordance with IC 5-3-1 and include the proposed ordinance or resolution to propose an ordinance. (d) In addition to the notice required by subsection (b), the adopting body shall also provide a copy of the notice to all taxing units in the county at least ten (10) days before the public hearing. (e) If a county adopting body makes any fiscal decision that has a financial impact to an underlying local taxing unit, the decision must be made, and notice must be given to the affected local taxing unit, by August 1 of a year. If a county adopting body passes an ordinance changing the allocation of local income tax revenue to a local taxing unit, the county adopting body must provide direct notice, in addition to the public notice described in subsection (b), to the affected local taxing unit within fifteen (15) days of the passage of the ordinance. The county adopting body must provide confirmation to the department of state revenue and the department of local government finance that direct notice was provided to the affected local taxing units within fifteen (15) days of the passage of the ordinance. As added by P.L.243-2015, SEC.10. Amended by P.L.247-2017, SEC.10; P.L.154-2020, SEC.31; P.L.236-2023, SEC.77.

Ind. Code § 6-3.6-3-7 Repealed

Revisor's Note: The effective date of this section, as repealed by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028. Note: This repeal of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028. As added by P.L.243-2015, SEC.10. Amended by P.L.247-2017, SEC.10; P.L.154-2020, SEC.31; P.L.236-2023, SEC.77. Repealed by P.L.68-2025, SEC.108.

Ind. Code § 6-3.6-3-7.5 County council hearing requirements for ordinances; notice to affected local taxing units

Sec. 7.5. (a) This section applies to a county in which the county adopting body is the county council. (b) Before the county council may vote on a proposed ordinance under this article, the county council must hold a public hearing on the proposed ordinance and provide the public with notice of the date, time, and place of the public hearing. (c) The notice required by subsection (b) must be given in accordance with IC 5-3-1 and include the proposed ordinance. (d) In addition to the notice required by subsection (b), the adopting body shall also provide a copy of the notice to all taxing units in the county at least ten (10) days before the public hearing. (e) If a county adopting body makes any fiscal decision that has a financial impact to an underlying local taxing unit, the decision must be made, and notice must be given to the affected local taxing unit, by August 1 of a year. If a county adopting body passes an ordinance changing the allocation of local income tax revenue to a local taxing unit, the county adopting body must provide direct notice, in addition to the public notice described in subsection (b), to the affected local taxing unit within fifteen (15) days of the passage of the ordinance. The county adopting body must provide confirmation to the department of state revenue and the department of local government finance that direct notice was provided to the affected local taxing units within fifteen (15) days of the passage of the ordinance. As added by P.L.197-2016, SEC.45. Amended by P.L.247-2017, SEC.11; P.L.236-2023, SEC.78.

Ind. Code § 6-3.6-3-8 Local income tax council; resolution to propose an ordinance; distribution of copy of ordinance; vote; county with a single voting bloc

Note: This version of section effective until 7-1-2028. See also following repeal of this section, effective 7-1-2028. Sec. 8. (a) This section applies to a county in which the county adopting body is a local income tax council. (b) Except as provided in subsection (e), any member of a local income tax council may present an ordinance for passage. To do so, the member must adopt a resolution to propose the ordinance to the local income tax council and distribute a copy of the proposed ordinance to the county auditor. The county auditor shall treat any proposed ordinance distributed to the auditor under this section as a casting of all that member's votes in favor of the proposed ordinance. (c) Except as provided in subsection (f), the county auditor shall deliver copies of a proposed ordinance the auditor receives to all members of the local income tax council within ten (10) days after receipt. Subject to subsection (d), once a member receives a proposed ordinance from the county auditor, the member shall vote on it within thirty (30) days after receipt. (d) Except as provided in subsection (h), if, before the elapse of thirty (30) days after receipt of a proposed ordinance, the county auditor notifies the member that the members of the local income tax council have cast a majority of the votes on the local income tax council for or against the proposed ordinance the member need not vote on the proposed ordinance. (e) This subsection applies only to a county with a single voting bloc that proposes to increase (but not decrease) a tax rate in the county. The fiscal body of any county, city, or town that is a member of a local income tax council may adopt a resolution to propose an ordinance to increase a tax rate in the county to be voted on by the local income tax council as a whole as required under section 9.5 of this chapter and distribute a copy of the proposed ordinance to the county auditor. The county auditor shall treat the vote tally on the resolution adopted under this subsection for each individual who is a member of the fiscal body of the county, city, or town as the voting record for that individual either for or against the ordinance being proposed for consideration by the local income tax council as a whole under section 9.5 of this chapter. This subsection expires May 31, 2028. (f) This subsection applies only to a county with a single voting bloc that proposes to increase (but not decrease) a tax rate in the county. The county auditor shall deliver copies of a proposed ordinance the auditor receives under subsection (e) to the fiscal officers of all members of the local income tax council (other than the member proposing the ordinance under subsection (e)) within ten (10) days after receipt. Subject to subsection (h), once a member receives a proposed ordinance from the county auditor, the member shall vote on it within thirty (30) days after receipt. This subsection expires May 31, 2028. (g) This subsection applies only to a county with a single voting bloc that proposes to increase (but not decrease) a tax rate in the county. The fiscal body of each county, city, or town voting on a resolution to propose an ordinance under subsection (e), or voting on a proposed ordinance being considered by the local income tax council as a whole under section 9.5 of this chapter, must take a roll call vote on the resolution or the proposed ordinance. If an individual who sits on the fiscal body is absent from the meeting in which a vote is taken or abstains from voting on the resolution or proposed ordinance, the fiscal officer of the county, city, or town shall nevertheless consider that individual's vote as a "no" vote against the resolution or the proposed ordinance being considered, whichever is applicable, for purposes of the vote tally under this section and shall note on the vote tally that the individual's "no" vote is due to absence or abstention. The fiscal body of each county, city, or town shall certify the roll call vote on a resolution or a proposed ordinance, either for or against, to the county auditor as set forth under this chapter. This subsection expires May 31, 2028. (h) This subsection applies only to a county with a single voting bloc that proposes to increase (but not decrease) a tax rate in the county. If, before the elapse of thirty (30) days after receipt of a proposed ordinance under subsection (e), the county auditor notifies the member that the individuals who sit on the fiscal bodies of the county, cities, and towns that are members of the local income tax council have cast a majority of the votes on the local income tax council for or against a proposed ordinance voting as a whole under section 9.5 of this chapter, the member need not vote on the proposed ordinance under subsection (e). This subsection expires May 31, 2028. As added by P.L.243-2015, SEC.10. Amended by P.L.154-2020, SEC.32; P.L.159-2021, SEC.23; P.L.137-2024, SEC.5; P.L.223-2025, SEC.7; P.L.157-2026, SEC.119.

Ind. Code § 6-3.6-3-8 Repealed

Revisor's Note: The effective date of this section, as repealed by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028. Note: This repeal of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028. As added by P.L.243-2015, SEC.10. Amended by P.L.154-2020, SEC.32; P.L.159-2021, SEC.23; P.L.137-2024, SEC.5; P.L.223-2025, SEC.7; P.L.157-2026, SEC.119. Repealed by P.L.68-2025, SEC.109 and P.L.145-2026, SEC.27.

Ind. Code § 6-3.6-3-9 Local income tax council; voting by resolution

Note: This version of section effective until 7-1-2028. See also following repeal of this section, effective 7-1-2028. Sec. 9. (a) Except as provided in subsection (d), this section applies to a county in which the county adopting body is a local income tax council. (b) A member of the local income tax council may exercise its votes by passing a resolution and transmitting the resolution to the county auditor. (c) A resolution passed by a member of the local income tax council exercises all votes of the member on the proposed ordinance, and those votes may not be changed during the year. (d) This section does not apply to a county in which the county adopting body is a local income tax council to which section 9.5 of this chapter applies. This subsection expires May 31, 2024. As added by P.L.243-2015, SEC.10. Amended by P.L.154-2020, SEC.33; P.L.159-2021, SEC.24.

Ind. Code § 6-3.6-3-9 Repealed

Revisor's Note: The effective date of this section, as repealed by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028. Note: This repeal of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028. As added by P.L.243-2015, SEC.10. Amended by P.L.154-2020, SEC.33; P.L.159-2021, SEC.24. Repealed by P.L.68-2025, SEC.110.

Ind. Code § 6-3.6-3-9.5 Local income tax council that is a county with a single voting bloc proposing to increase tax rate; vote; resolution

Sec. 9.5. (a) This section applies to a county: (1) in which the county adopting body is a local income tax council; (2) that is a county with a single voting bloc; and (3) that proposes to increase a tax rate in the county. However, the provisions under section 9 of this chapter shall apply to a county described in subdivisions (1) and (2) that proposes to decrease a tax rate in the county. (b) A local income tax council described in subsection (a) must vote as a whole to exercise its authority to increase a tax rate under this article. (c) A resolution passed by the fiscal body of a county, city, or town that is a member of the local income tax council exercises the vote of each individual who sits on the fiscal body of the county, city, or town on the proposed ordinance, and the individual's vote may not be changed during the year. (d) This section expires May 31, 2028. As added by P.L.154-2020, SEC.34. Amended by P.L.159-2021, SEC.25; P.L.137-2024, SEC.6; P.L.68-2025, SEC.111; P.L.223-2025, SEC.8; P.L.157-2026, SEC.120.

Ind. Code § 6-3.6-3-10 Local income tax council; may not adopt more than one ordinance in a year

Note: This version of section effective until 7-1-2028. See also following repeal of this section, effective 7-1-2028. Sec. 10. (a) This section applies to a county in which the county adopting body is a local income tax council. (b) A local income tax council may pass only one (1) ordinance adopting, increasing, decreasing, or rescinding a tax in one (1) year. Once the ordinance has been passed, the county auditor shall: (1) cease distributing those types of proposed ordinances for the rest of the year; and (2) withdraw from the membership any other of those types of proposed ordinances. Any votes subsequently received by the county auditor on those types of proposed ordinances during that same year are void. (c) The local income tax council may not vote on, nor may the county auditor distribute to the members of the local income tax council, any proposed ordinance during a year, if previously during that same year the county auditor received and distributed to the members of the local income tax council a proposed ordinance whose passage would have substantially the same effect. As added by P.L.243-2015, SEC.10.

Ind. Code § 6-3.6-3-10 Repealed

Revisor's Note: The effective date of this section, as repealed by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028. Note: This repeal of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028. As added by P.L.243-2015, SEC.10. Repealed by P.L.68-2025, SEC.112.

Ind. Code § 6-3.6-3-12 Ordinance containing tax rate that exceeds a maximum allowable tax rate

Effective 7-1-2028. Sec. 12. (a) This section applies to an ordinance adopted under this article after June 30, 2028. (b) This subsection applies only to an ordinance adopted between January 1 and August 2 of a calendar year or October 2 and December 31 of a calendar year. If an adopting body adopts an ordinance to impose a local income tax under: (1) IC 6-3.6-6-2(b)(1) through IC 6-3.6-6-2(b)(4); (2) IC 6-3.6-6-22; or (3) IC 6-3.6-7; that exceeds the applicable maximum tax rate or applicable maximum aggregate tax rate allowable pursuant to IC 6-3.6-6-2, IC 6-3.6-6-22, or IC 6-3.6-7, the department of local government finance shall notify the adopting body and county fiscal officer or municipal fiscal officer, as applicable, not later than thirty (30) days after the adopting body submits the ordinance and information required under IC 6-3.6-6-2 that one (1) or more tax rates exceed the maximum allowable tax rate. (c) This subsection applies only to an ordinance adopted between January 1 and August 2 of a calendar year or October 2 and December 31 of a calendar year. Not later than thirty (30) days after receiving a notification under subsection (b) from the department of local government finance, the adopting body may adopt an ordinance correcting the applicable tax rate or tax rates. The following apply to an ordinance adopted under this subsection: (1) Any statutory requirements for an ordinance that otherwise apply to an ordinance adopted under this article to impose a local income tax rate also apply to an ordinance adopted under this subsection. (2) If the tax rate or tax rates adopted in an ordinance adopted under this subsection still exceed a maximum allowable tax rate or maximum allowable aggregate tax rate, the ordinance adopted under this subsection shall be considered void and treated as if the adopting body did not adopt any additional ordinance under this subsection. (3) An ordinance adopted under this subsection has the same effective date as the initial ordinance described in subsection (b). (d) If an adopting body adopts an ordinance between August 3 and October 1 of a calendar year to impose a local income tax that exceeds a maximum allowable tax rate or rates, fails to adopt an ordinance correcting the applicable tax rate or tax rates under subsection (c), or, the ordinance is described in subsection (c)(2), the tax rate or rates will be reduced according to the following: (1) If a tax rate or tax rates imposed pursuant to IC 6-3.6-6-2(b)(1) through IC 6-3.6-6-2(b)(4), IC 6-3.6-6-22, or IC 6-3.6-7 exceed the maximum allowable rate specified in IC 6-3.6-6-2(b)(1) through IC 6-3.6-6-2(b)(4), IC 6-3.6-6-22, or IC 6-3.6-7, the tax rate or tax rates that exceed the maximum allowable rate shall be reduced to the maximum allowable rate without further action by the adopting body. (2) If the aggregate tax rates imposed pursuant to IC 6-3.6-6-2(b)(1) through IC 6-3.6-6-2(b)(3) exceed the maximum allowable aggregate rate in IC 6-3.6-6-2(c), the tax rates shall be reduced without any further action by the adopting body according to the following: (A) Any portion of the aggregate tax rate that exceeds the maximum allowable rate shall first be applied by reducing the tax rate imposed under IC 6-3.6-6-2(b)(1), but may not reduce the rate below the tax rate otherwise required under this article. (B) Any remaining portion of the aggregate tax rate that exceeds the maximum allowable rate after the reduction in clause (A) shall be applied to reduce the tax rates imposed under IC 6-3.6-6-2(b)(2) and IC 6-3.6-6-2(b)(3) in proportion to the total rates imposed under IC 6-3.6-6-2(b)(2) and IC 6-3.6-6-2(b)(3). (3) If the tax rate or rates exceed both the maximum allowable rate specified in IC 6-3.6-6-2(b)(1) through IC 6-3.6-6-2(b)(3) and the maximum allowable aggregate tax rate in IC 6-3.6-6-2(c), the tax rates shall first be reduced in the manner set forth in subdivision (1) before application of the reduction manner set forth in subdivision (2). (4) Any tax rate reduction under this subsection has the same effective date as the initial ordinance described in subsection (b). As added by P.L.157-2026, SEC.121.

Ind. Code § 6-3.6-3-13 Municipal unit strategic taskforce; local income tax distribution agreement

Sec. 13. The following apply beginning March 1, 2026: (1) Each county may, prior to October 1, 2026, convene a Municipal Unit Strategic Taskforce (MUST) with one (1) representative from the county council and each city and town fiscal officer in the county to negotiate and establish through unanimous support a local income tax distribution agreement as it pertains to the county's maximum local income tax rates under IC 6-3.6-6-2(b)(1) and IC 6-3.6-6-2(b)(4). The committee may not include representatives from the fire protection and emergency medical services as defined in IC 6-3.6-6-4.3 and nonmunicipal civil taxing units as defined in IC 6-3.6-6-0.5. (2) If the Municipal Unit Strategic Taskforce (MUST) establishes a local income tax distribution agreement under subdivision (1), the county shall send the local income tax distribution agreement to the department of local government finance. The department of local government finance shall compile a report of all local income tax distribution agreements and submit the report to the legislative council in an electronic format under IC 5-14-6 prior to December 1, 2026. As added by P.L.157-2026, SEC.122.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/6Fetched: 10/17/2026