(A) A deduction equal to 100% of the assessed value of inventory applies to the inventory located in the county beginning with the 2005 assessment year.
(B) The County Auditor is hereby authorized and directed to provide a certified copy of this section to the department of local government finance and to each township assessor prior to February 1, 2005.
(C) State law allows the Council to increase the current rate of the county economic development income tax (“CEDIT”) by up to 0.25% for the sole purpose of mitigating the increased ad valorem property taxes on homesteads resulting from the deduction of the assessed value of inventory in the county.
(D) The current rate for CEDIT in the county is 0.25%, and it is necessary to increase this rate by 0.08% to mitigate the increased ad valorem property taxes on homesteads resulting from the deduction of the assessed value of inventory in the county.
(E) The county imposes the county economic development income tax on the county taxpayers of the county. The county economic development income tax is imposed at a rate of 0.33% on the county taxpayers of the county. This tax takes effect July 1 of this year.
(F) Beginning with the 2005 assessment year and continuing each year thereafter, the certified distribution described in state law shall be used to provide for allocated increased homestead credits as provided for in state law to offset the effect on homesteads resulting from the 100% deduction for inventory. The increased percentage of the homestead credit shall be determined by the County Auditor as specified in division (G) below.
(G) For the 2005 assessment year and continuing each year thereafter, the County Auditor shall determine the following:
(1) The amount of the certified distribution that is available to provide an increased homestead credit percentage for the year; and
(2) An increased percentage of homestead credit for each taxing district in the county that allocates to the taxing district an amount of increased homestead credits that bears the same proportion to the amount determined under division (G)(1) above that the amount of inventory assessed value deducted under I.C. 6-1.1-12-42 in the taxing district for the immediately preceding year’s assessment date bears to the total inventory assessed value deducted I.C. 6-1.1-32-42 in the county for the immediately preceding year’s assessment date.
(H) The County Auditor shall retain from the payments of the county’s certified distribution an amount equal to the revenue lost, of any, due to the increase of the homestead credit within the county. The money shall be distributed to the civil taxing units and school corporations of the county as if the money were from property tax collections and in such a manner that no civil taxing unit or school corporation will suffer a net revenue loss because of the allowance of an increased homestead credit.
(Council Ord. 2004-1, passed 3-30-2004)