2023 Indiana Code › Title 6. Taxation › Article 3.6. Local Income Taxes › Chapter 7. Special Purpose Rates › 6-3.6-7-21.5. Additional Rate for Tipton County Jail and Related Facilities; Pledge for Bonds; County Facilities Revenue Fund; Balance Transfer to County Rainy Day Fund

Sec. 21.5. (a) This section applies only to Tipton County.
(b) The county council may, by ordinance, determine that additional local income tax revenue is needed in the county to:
(1) finance the:
(A) construction, acquisition, and equipping of the county jail and related buildings and parking facilities, including costs related to the demolition of existing buildings, the acquisition of land, and any other reasonably related costs; and
(B) improvement, renovation, remodeling, repair, and equipping of the courthouse to address security concerns and mitigate excess moisture in the courthouse;
(2) repay bonds issued or leases entered into for the purposes described in subdivision (1); and
(3) subject to subsection (i), operate and maintain facilities described in subdivision (1).
(c) If the county council makes the determination set forth in subsection (b), the county council may adopt an ordinance to impose a local income tax rate of:
(1) fifteen-hundredths percent (0.15%);
(2) two-tenths percent (0.2%);
(3) twenty-five hundredths percent (0.25%);
(4) three-tenths percent (0.3%);
(5) thirty-five hundredths percent (0.35%); or
(6) four-tenths percent (0.4%).
The tax rate may not be imposed at a rate greater than is necessary to pay for the purposes described in subsection (b).
(d) The tax imposed under this section may be imposed only until the latest of the following dates:
(1) The date on which the financing for constructing, acquisition, improvement, renovation, remodeling, and equipping described in subsection (b) is completed.
(2) The last of any bonds issued or leases entered into to finance the construction, acquisition, improvement, renovation, remodeling, and equipping described in subsection (b) are fully paid.
(3) The date on which an ordinance adopted under subsection (c) is rescinded. However, this subdivision applies only if an ordinance has been adopted and is in effect under subsection (i).
The term of the bonds issued (including any refunding bonds) or a lease entered into under subsection (b)(2) may not exceed twenty (20) years.
(e) The county treasurer shall establish a county facilities 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 facilities revenue fund.
(f) 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 ad valorem 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).
(g) Tipton County possesses unique governmental and economic development challenges and opportunities due to:
(1) the county's heavy agricultural base;
(2) deficiencies in the current county jail, including:
(A) overcrowding;
(B) lack of program and support space for efficient jail operations;
(C) inadequate line of sight supervision of inmates, due to current jail configuration;
(D) lack of adequate housing for an increasing female inmate population and inmates with special needs;
(E) lack of adequate administrative space; and
(F) increasing maintenance demands and costs resulting from having aging facilities;
(3) the presence of a large industrial employer that offers the opportunity to expand the income tax base; and
(4) the presence of the historic Tipton County jail and sheriff's home, listed on the National Register of Historic Places.
The use of local income tax revenue as provided in this section is necessary for the county to provide adequate jail facilities 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, remodeling, and equipping described in subsection (b), rather than the use of property taxes, promotes those purposes.
(h) Money accumulated from the local income tax rate imposed under this section after:
(1) the redemption of bonds issued;
(2) the final payment of lease rentals due under a lease entered into under this section; and
(3) the termination of the tax under this section;
shall be transferred to the county rainy day fund under IC 36-1-8-5.1.
(i) Before revenues from a tax under this section may be used for the purposes described in subsection (b)(3), the county council must adopt an ordinance that:
(1) specifically authorizes the revenue to be used for those purposes; and
(2) recognizes that if the revenues are used for those purposes, the tax rate will continue after the purposes described in subsection (b)(1) through (b)(2) are completed.
As added by P.L.197-2016, SEC.62. Amended by P.L.184-2018, SEC.7.