2023 Indiana Code › Title 6. Taxation › Article 3.6. Local Income Taxes › Chapter 9. Distribution of Revenue › 6-3.6-9-15. Trust Account; Excess Balance; Supplemental Distribution; Amount; Allocation

Sec. 15. (a) If the budget agency determines that the balance in a county trust account exceeds fifteen percent (15%) 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%) 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.
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.