2023 Indiana Code › Title 6. Taxation › Article 3.6. Local Income Taxes › Chapter 9. Distribution of Revenue › 6-3.6-9-17. Special Distribution; Permitted Expenditures

Sec. 17. (a) As used in this section, "fiscal body" has the meaning set forth in IC 36-1-2-6.
(b) This section refers to a county's trust account maintained under the former local income tax laws set forth in IC 6-3.5-1.1, IC 6-3.5-6, and IC 6-3.5-7 (all as repealed January 1, 2017).
(c) Before May 1, 2016, the budget agency shall make a one (1) time special distribution to each county having a positive balance in the county's trust account as of December 31, 2014.
(d) The amount of the special distribution from a county's trust account is one hundred percent (100%) of the balance in the county's trust account as of December 31, 2014, as determined by the budget agency.
(e) Before May 1, 2016, the budget agency and the department of local government finance shall do the following:
(1) For any county having a positive balance in the county's trust account as of December 31, 2014, determine the amount of the trust account balance as of December 31, 2014 (referred to as the county's trust balance amount).
(2) Determine each taxing unit's share of the county's trust balance amount (referred to as the taxing unit's allocation amount), using the following allocation method for each former tax:
(A) For county adjusted gross income taxes (IC 6-3.5-1.1) (repealed) as follows:
(i) First, the taxing units that would have received property tax replacement credits shall be allocated that part of the county's allocation amount that would have been considered property tax replacements under IC 6-3.5-1.1 (repealed).
(ii) The remaining amount of the county's allocation amount shall be allocated in the same manner as certified shares under IC 6-3.5-1.1 (repealed).
(B) For county option income taxes (IC 6-3.5-6) (repealed), the county's allocation amount shall be allocated in the same manner as certified shares under IC 6-3.5-6 (repealed).
(C) For county economic development income taxes, the county's allocation amount shall be allocated in the same manner as a certified distribution under IC 6-3.5-7-12(b) (repealed) or IC 6-3.5-7-12(c) (repealed), whichever applies.
(f) Before May 1, 2016, the budget agency and the department of local government finance shall jointly determine and provide to the county auditor the following:
(1) The county's trust balance amount.
(2) Each taxing unit's allocation amount.
(g) Before June 1, 2016, the county auditor shall distribute to each taxing unit an amount equal to the taxing unit's allocation amount.
(h) Money distributed to a county, city, or town may be expended only upon an appropriation by the county's, city's, or town's fiscal body as follows:
(1) At least seventy-five percent (75%) of the special distribution must be:
(A) used exclusively by the county, city, or town for:
(i) engineering, land acquisition, construction, resurfacing, maintenance, restoration, or rehabilitation of both local and arterial road and street systems;
(ii) the payment of principal and interest on bonds sold primarily to finance road, street, or thoroughfare projects;
(iii) any local costs required to undertake a recreational or reservoir road project under IC 8-23-5;
(iv) the purchase, rental, or repair of highway equipment;
(v) providing a match for a grant from the local road and bridge matching grant fund under IC 8-23-30; or
(vi) capital projects for aviation related property or facilities, including capital projects of a board of aviation commissioners established under IC 8-22-2 or an airport authority established under IC 8-22-3-1; or
(B) deposited in the county's, city's, or town's rainy day fund established under IC 36-1-8-5.1. The money deposited in a rainy day fund under this clause may not be appropriated from the rainy day fund or transferred to another fund under IC 36-1-8-5.1(g), unless the money will be used exclusively for purposes set forth in clause (A).
(2) The remaining part of the special distribution may be used by the county, city, or town for any of the purposes of the county, city, or town.
The amount received by a taxing unit that is not a county, city, or town shall be deposited in the taxing unit's rainy day fund established under IC 36-1-8-5.1. However, in the case of a school corporation, the school corporation may deposit the amount received in any of its funds.
As added by P.L.126-2016, SEC.3. Amended by P.L.85-2017, SEC.27; P.L.244-2017, SEC.15.