2023 Indiana Code › Title 6. Taxation › Article 3.6. Local Income Taxes › Chapter 6. Expenditure Rate › 6-3.6-6-3. Treatment of Tax Revenue; Distributions to School Corporations and Civil Taxing Units; Additional Revenue; Additional Revenue May Not Reduce Levy Limit or Property Tax Rate; Revenue Pledged for Bonds

Sec. 3. (a) Revenue raised from a tax imposed under this chapter shall be treated as follows:
(1) To make the following distributions:
(A) If an ordinance described in section 2.5 of this chapter is in effect in a county, to make a distribution to the county equal to the amount of revenue generated by the rate imposed under section 2.5 of this chapter.
(B) If an ordinance described in section 2.7 of this chapter is in effect in a county, to make a distribution to the county equal to the amount of revenue generated by the rate imposed under section 2.7 of this chapter.
(C) If an ordinance described in section 2.8 of this chapter is in effect in a county, to make a distribution to the county equal to the amount of revenue generated by the rate imposed under section 2.8 of this chapter.
(2) After making the distributions described in subdivision (1), if any, to make distributions to school corporations and civil taxing units in counties that formerly imposed a tax under IC 6-3.5-1.1 (repealed). The revenue categorized from the next twenty-five hundredths percent (0.25%) of the rate for a former tax adopted under IC 6-3.5-1.1 (repealed) shall be allocated to school corporations and civil taxing units. The amount of the allocation to a school corporation or civil taxing unit shall be determined using the allocation amounts for civil taxing units and school corporations in the county.
(3) After making the distributions described in subdivisions (1) and (2), the remaining revenue shall be treated as additional revenue (referred to as "additional revenue" in this chapter). Additional revenue may not be considered by the department of local government finance in determining:
(A) any taxing unit's maximum permissible property tax levy limit under IC 6-1.1-18.5; or
(B) the approved property tax rate for any fund.
(b) In the case of a civil taxing unit that has pledged the tax from additional revenue for the payment of bonds, leases, or other obligations as reported by the civil taxing unit under IC 5-1-18, the adopting body may not, under section 4 of this chapter, reduce the proportional allocation of the additional revenue that was allocated in the preceding year if the reduction for that year would result in an amount less than the amount necessary for the payment of bonds, leases, or other obligations payable or required to be deposited in a sinking fund or other reserve in that year for the bonds, leases, or other obligations for which the tax from additional revenue has been pledged. To inform an adopting body with regard to allocations that affect the payment of bonds, leases, or other obligations, a taxing unit may provide the adopting body with information regarding any outstanding bonds, leases, or other obligations that are secured by additional revenue. The information must be provided before the date of the public hearing at which the adopting body may change the allocation of additional revenue under section 4 of this chapter.
As added by P.L.243-2015, SEC.10. Amended by P.L.180-2016, SEC.17; P.L.197-2016, SEC.47; P.L.85-2017, SEC.24; P.L.247-2017, SEC.14; P.L.184-2018, SEC.3; P.L.95-2022, SEC.5.