CHAPTER 17. REGIONAL TRANSPORTATION IMPROVEMENT INCOME TAX
IC 8-24-17
Chapter 17. Regional Transportation Improvement Income Tax
IC 8-24-17-1
Authority to impose tax on member county taxpayers
Sec. 1. (a) An improvement tax may be imposed on the adjusted
gross income of county taxpayers by the board. To impose the
improvement tax, the board must first request a determination of the
improvement tax rate that may be imposed in each county under
section 2 of this chapter.
(b) The bus service board and the commuter rail service board
shall make recommendations to the board regarding the part of the
improvement income tax rate in each county that shall be dedicated
to the bus service division and to the commuter rail service division.
As added by P.L.182-2009(ss), SEC.282.
IC 8-24-17-2
Maximum member county tax rate
Sec. 2. A county's improvement tax rate in a member county may
not exceed the lesser of twenty-five hundredths percent (0.25%) or
the rate for that member county as determined under section 3 of this
chapter.
As added by P.L.182-2009(ss), SEC.282.
IC 8-24-17-3
Required findings to impose tax; certifications; adjustments
Sec. 3. (a) If the board desires to impose the improvement tax, the
board must first make written findings concerning the following:
(1) The value of the public transportation facilities of the
district and the service divisions that the board proposes to put
in service after December 31, 2009, and to be allocated to each
member county.
(2) The total amount of the capital needs of the district and the
service divisions for the five (5) year period beginning in the
year of the request, reduced by the amount of capital costs that
will be paid from sources other than the improvement tax.
(3) The annual amount of capital costs that the board proposes
to be allocated to each member county for the five (5) year
period beginning in the year of the request, reduced by the
amount of capital costs that will be paid from sources other than
the improvement tax. In determining the amount to propose for
capital costs to be allocated to each member county, the board
shall allocate the capital costs according to a formula
established by the board that reflects the benefit received by the
county from the capital costs in facilitating public transportation
in the county and to and from the county.
(4) The total amount of the operating needs of the district and
service districts for the five (5) year period beginning in the
year of the request, reduced by the amount of operating
expenses that will be paid from sources other than the
improvement tax.
(5) The annual amount of operating expenses that the board
proposes to be allocated to each member county for the five (5)
year period beginning in the year of the request, using the total
number of passengers and total miles traveled by individuals
using public transportation within each member county that is
provided by the district, reduced by the amount of operating
expenses that will be paid from sources other than the
improvement tax.
(b) In determining capital and operating costs under subsection
(a), the costs shall be allocated, as determined by the board, to the
capital expenses and operation costs of the district's commuter rail
service division and the district's bus service division.
(c) Based on the findings under subsection (a) and the required
allocation under subsection (b), the board shall make a determination
and certify to the department the improvement tax rate that will be
necessary for each year of the five (5) year period in each member
county to pay for both the annual capital costs and annual operating
expenses that are allocated to that member county. The rate imposed
in a member county must be sufficient to raise the annual capital
costs and annual operating expenses allocated to the county.
(d) A determination under this section shall be made using the
best information available. The budget agency shall assist the board
in computing the appropriate tax rates for each member county.
(e) The board may adopt a resolution adjusting the tax rate in a
member county if the rates are too low to pay for both the annual
capital costs and annual operating expenses that are allocated to each
member county.
(f) The budget agency may cause a new determination to be made
if:
(1) the budget director finds that the actual annual capital costs
and annual operating expenses are less than the improvement
tax revenue for two (2) consecutive years such that the
improvement tax rate could be reduced by at least
five-hundredths percent (0.05%) for a member county; or
(2) it has been more than three (3) years since the previous
determination was made.
If a new determination under this subsection results in the
improvement tax rate for each member county being at least
five-hundredths percent (0.05%) less than the rate in effect in the
year the new determination is made, the rate for each member county
is reduced to the new rate without any action by the board. The new
rate takes effect October 1 of the year of the new determination. The
budget agency shall certify the new improvement tax rate to the
board and the department.
As added by P.L.182-2009(ss), SEC.282.
IC 8-24-17-4
Required notice and resolution to impose tax
Sec. 4. (a) To impose the improvement tax, the board must first
publish a notice in each member county in accordance with IC 5-3-1.
In addition to the requirements of IC 5-3-1, the notice must include:
(1) a clear and concise statement that the board will be
considering the imposition of the regional transportation
improvement tax at the meeting; and
(2) the content of the proposed resolution to impose the
improvement tax.
(b) To impose the improvement tax, the board must, after March
31 but before August 1 of a year, adopt a resolution. The resolution
to impose the tax must include the rate for each member county and
substantially state the following for each member county:
"The Northern Indiana Regional Transportation District
imposes the regional transportation improvement tax on the
county taxpayers of _________ County. The improvement tax
is imposed at a rate of _________ percent (____%) of taxable
income. This tax takes effect October 1 of this year.".
As added by P.L.182-2009(ss), SEC.282.
IC 8-24-17-5
Power to increase or decrease tax rate; required notice and
resolution
Sec. 5. (a) The board may increase or decrease the improvement
tax rate imposed upon the county taxpayers in each member county
as long as the resulting rate does not exceed the rate certified under
section 3 of this chapter.
(b) To increase the improvement tax rate, the board must first
publish a notice in each member county in accordance with IC 5-3-1.
In addition to the requirements of IC 5-3-1, the notice must include
the content of the proposed resolution to increase the improvement
tax rate.
(c) To decrease or increase the rate, the board must, after March
31 but before August 1 of a year, adopt a resolution. The resolution
to increase or decrease the tax must include the rate for each member
county and substantially state the following for each member county:
"The Northern Indiana Regional Transportation District
increases (decreases) the regional transportation improvement
tax rate imposed upon the county taxpayers of
______________________ County from _____ percent (___%)
to _____ percent (___%) of taxable income. This tax rate
increase (decrease) takes effect October 1 of this year.".
As added by P.L.182-2009(ss), SEC.282.
IC 8-24-17-6
Tax effective until rescinded; required resolution to rescind
Sec. 6. (a) The improvement tax imposed under this chapter
remains in effect until rescinded.
(b) The board may rescind the tax by adopting a resolution to
rescind the tax after March 31 but before August 1 of a year.
As added by P.L.182-2009(ss), SEC.282.
IC 8-24-17-7
Effective date of resolutions
Sec. 7. (a) Any resolution adopted under this chapter takes effect
October 1 of the year the resolution is adopted.
(b) The secretary of the board shall record all votes taken on
resolutions presented for a vote under the authority of this chapter
and shall, not more than ten (10) days after the vote, send a certified
copy of the results to the department and the budget director by
certified mail.
As added by P.L.182-2009(ss), SEC.282.
IC 8-24-17-8
Special account for tax revenue
Sec. 8. (a) A special account within the state general fund shall be
established for the district. Any revenue derived from the imposition
of the improvement tax shall be credited to the district's account in
the state general fund.
(b) Any income earned on money credited to an account under
subsection (a) becomes a part of that account.
(c) Any revenue credited to an account established under
subsection (a) at the end of a fiscal year may not be credited to any
other account in the state general fund. Money in the district's
account is appropriated to make distributions required by this
chapter.
As added by P.L.182-2009(ss), SEC.282.
IC 8-24-17-9
Revenue distribution
Sec. 9. (a) Revenue derived from the imposition of the
improvement tax shall be distributed to the treasurer of the board.
(b) Before August 2 of each calendar year, the budget agency
shall certify to the treasurer of the board the amount of improvement
tax revenue that the department determines has been:
(1) received for the district for the taxable year ending before
the calendar year in which the determination is made; and
(2) reported on an annual return or amended return processed
by the department in the state fiscal year ending before July 1
of the calendar year in which the determination is made.
The amount shall be adjusted as provided in this section. The amount
certified is the district's certified distribution for the following
calendar year.
(c) The budget agency shall adjust the amount determined under
subsection (b) for:
(1) refunds of improvement tax made in the state fiscal year;
and
(2) the amount of interest in the district's special account that
has been accrued but has not been included in a certification
made in a preceding year.
(d) The budget agency shall certify an amount that is less than the
amount determined under subsection (c) if the budget agency
determines that the reduced distribution is necessary to offset
overpayments made in a calendar year before the calendar year of the
distribution. The budget agency may reduce the amount of the
certified distribution over several calendar years so that any
overpayments are offset over several years rather than in one (1)
lump sum.
(e) The budget agency shall certify an amount that is more than
the amount determined under subsection (c) if the budget agency
determines that the increased distribution is necessary to offset
underpayments made in a calendar year before the calendar year of
the distribution.
(f) The budget agency shall adjust the certified distribution of the
district to correct for any clerical or mathematical errors made in any
previous certification under this section. The budget agency may
reduce the amount of the certified distribution over several calendar
years so that any reduction under this subsection is offset over
several years rather than in one (1) lump sum.
(g) This subsection applies if the district:
(1) initially imposed the improvement tax; or
(2) increases the improvement tax rate;
under this chapter and the tax or increased rate takes effect in the
same calendar year in which the budget agency makes a certification
under this section. The budget agency shall adjust the certified
distribution of a county to provide for a distribution in the
immediately following calendar year.
(h) The budget agency shall provide to the treasurer of the board
an informative summary of the calculations used to determine the
certified distribution. The summary of calculations must include the
following:
(1) The amount reported on individual income tax returns
processed by the department during the previous state fiscal
year.
(2) Adjustments for:
(A) refunds;
(B) special account interest;
(C) over or under distributions in prior years;
(D) clerical or mathematical errors in prior years; and
(E) tax rate changes.
(3) The balance in the district's special account as of the cutoff
date set by the budget agency.
(i) One-twelfth (1/12) of a district's certified distribution for a
calendar year shall be distributed from the district's account to the
treasurer of the board each month.
As added by P.L.182-2009(ss), SEC.282.
IC 8-24-17-10
Revenue deposited in capital, operating, and reserve accounts
Sec. 10. The district shall deposit the amount received under this
chapter as follows:
(1) An amount equal to the budgeted annual capital costs as
certified by the budget agency in a separate capital account.
(2) An amount equal to the budgeted operating expenses as
certified by the budget agency in a separate operating account.
(3) Any part of a distribution remaining after making the
deposits required under subdivisions (1) and (2) shall be
deposited in a separate reserve account.
As added by P.L.182-2009(ss), SEC.282.
IC 8-24-17-11
Determination of taxpayer residency and principal place of
business
Sec. 11. (a) For purposes of this chapter, an individual shall be
treated as a resident of the county in which the individual:
(1) maintains a home if the individual maintains only one (1)
home in Indiana;
(2) if subdivision (1) does not apply, is registered to vote;
(3) if subdivisions (1) and (2) do not apply, registers the
individual's personal automobile; or
(4) if subdivisions (1), (2), and (3) do not apply, spends the
majority of the individual's time in Indiana during the taxable
year in question.
(b) The residence or principal place of business or employment of
an individual is to be determined on January 1 of the calendar year
in which the individual's taxable year commences. If an individual
changes the location of the individual's residence or principal place
of employment or business to another county in Indiana during a
calendar year, the individual's liability for improvement tax is not
affected.
As added by P.L.182-2009(ss), SEC.282.
IC 8-24-17-12
Computation of tax in effect for a partial year
Sec. 12. If the improvement tax is not in effect during a county
taxpayer's entire taxable year, the amount of improvement tax that
the county taxpayer owes for that taxable year equals the product of:
(1) the amount of improvement tax the county taxpayer would
owe if the tax had been imposed during the county taxpayer's
entire taxable year; multiplied by
(2) a fraction, the:
(A) numerator of which equals the number of days during
the county taxpayer's taxable year during which the
improvement tax was in effect; and
(B) denominator of which equals three hundred sixty-five
(365).
As added by P.L.182-2009(ss), SEC.282.
IC 8-24-17-13
Credit for the elderly; computation
Sec. 13. (a) If for the taxable year a county taxpayer is (or a
county taxpayer and the county taxpayer's spouse who file a joint
return are) allowed a credit for the elderly or individuals with a total
disability under Section 22 of the Internal Revenue Code, the county
taxpayer is (or the county taxpayer and the county taxpayer's spouse
are) entitled to a credit against the county taxpayer's (or the county
taxpayer's and the county taxpayer's spouse's) improvement tax
liability for that same taxable year. The amount of the credit equals
the lesser of:
(1) the product of:
(A) the county taxpayer's (or the county taxpayer's and the
county taxpayer's spouse's) credit for the elderly or
individuals with a total disability for that same taxable year;
multiplied by
(B) a fraction, the:
(i) numerator of which is the improvement tax rate
imposed against the county taxpayer (or against the county
taxpayer and the county taxpayer's spouse); and
(ii) denominator of which is fifteen-hundredths (0.15); or
(2) the amount of improvement tax imposed on the county
taxpayer (or the county taxpayer and the county taxpayer's
spouse).
(b) If a county taxpayer and the county taxpayer's spouse file a
joint return and are subject to different improvement tax rates for the
same taxable year, they shall compute the credit under this section by
using the formula provided by subsection (a), except that they shall
use the average of the two (2) improvement tax rates imposed against
them as the numerator referred to in subsection (a)(1)(B)(i).
As added by P.L.182-2009(ss), SEC.282.
IC 8-24-17-14
Adjusted gross income tax provisions; applicability; employer's
annual withholding report
Sec. 14. (a) Except as otherwise provided in this chapter, all
provisions of the adjusted gross income tax law (IC 6-3) concerning:
(1) definitions;
(2) declarations of estimated tax;
(3) filing of returns;
(4) remittances;
(5) incorporation of the provisions of the Internal Revenue
Code;
(6) penalties and interest;
(7) exclusion of military pay credits for withholding; and
(8) exemptions and deductions;
apply to the imposition, collection, and administration of the
improvement tax.
(b) IC 6-3-1-3.5(a)(6), IC 6-3-3-3, IC 6-3-3-5, and IC 6-3-5-1 do
not apply to the improvement tax.
(c) Notwithstanding subsections (a) and (b), each employer shall
report to the department the amount of withholdings of the
improvement tax attributable to each county. This report shall be
submitted to the department:
(1) each time the employer remits to the department the tax that
is withheld; and
(2) annually along with the employer's annual withholding
report.
As added by P.L.182-2009(ss), SEC.282.
IC 8-24-17-15
Improvement tax considered a listed tax and an income tax
Sec. 15. The improvement tax is a listed tax and an income tax for
the purposes of IC 6-8.1.
As added by P.L.182-2009(ss), SEC.282.