2023 Indiana Code › Title 6. Taxation › Article 3.6. Local Income Taxes › Chapter 7. Special Purpose Rates › 6-3.6-7-22. Union County; Additional Rate for County Courthouse, County Jail, and Other Criminal Justice Facilities; Uses; Balance Transfer to County Rainy Day Fund

Sec. 22. (a) This section applies only to Union County.
(b) Union County possesses unique economic development challenges due to:
(1) the county's heavy agricultural base;
(2) the presence of a large amount of state owned property in the county that is exempt from property taxation; and
(3) recent obligations of the school corporation in the county that have already increased property taxes in the county and imposed additional property tax burdens on the county's agricultural base.
Maintaining low property tax rates is essential to economic development. The use of a tax under this section for the purposes described in this section, rather than the use of property taxes, promotes these purposes.
(c) The county fiscal body may impose a tax on the adjusted gross income of local taxpayers at a tax rate that does not exceed the lesser of the following:
(1) Twenty-five hundredths percent (0.25%).
(2) The rate necessary to carry out the purposes described in this section.
(d) Revenue raised from a tax under this section may be used only for the following purposes:
(1) To finance, construct, acquire, improve, renovate, or equip the county courthouse.
(2) To repay bonds issued, or leases entered into, for constructing, acquiring, improving, renovating, and equipping the county courthouse.
(3) Subject to subsection (g), for the following purposes:
(A) To operate the county courthouse.
(B) To finance, construct, acquire, improve, renovate, equip, or operate:
(i) the county jail; or
(ii) other county criminal justice facilities.
(C) To repay bonds issued, or leases entered into, for constructing, acquiring, improving, renovating, and equipping:
(i) the county jail; or
(ii) other county criminal justice facilities.
(e) The tax imposed under this section may be imposed only until the last of the following dates:
(1) The date on which the following conditions are satisfied:
(A) The purposes described in subsection (d)(1) are completed.
(B) If an ordinance has been adopted and is in effect under subsection (g), the county fiscal body adopts an ordinance to repeal the tax imposed on the adjusted gross income of local taxpayers under subsection (c).
(2) The date on which the last of any bonds issued (including any refunding bonds) or leases described in subsection (d)(2) are fully paid.
The term of the bonds issued (including any refunding bonds) or a lease entered into under subsection (d)(2) may not exceed twenty-two (22) years.
(f) Funds accumulated from a tax under this section after:
(1) the redemption of the bonds issued;
(2) the final payment of lease rentals due under a lease entered into under this section; or
(3) the adoption of an ordinance to repeal the tax imposed under this section;
shall be transferred to the county rainy day fund established under IC 36-1-8-5.1.
(g) Before revenues from a tax under this section may be used for the purposes described in subsection (d)(3), the county fiscal body 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 (d)(1) through (d)(2) are completed.
As added by P.L.243-2015, SEC.10. Amended by P.L.184-2018, SEC.8; P.L.10-2019, SEC.39.