(A) Pursuant to the provisions of I.C. 6-3.5-1.1-26, the Council hereby imposes the property tax relief county adjusted income tax rate on the county taxpayers to raise income tax revenue to provide property tax relief to taxpayers in the county (the “rate for property tax relief”). The rate for property tax relief is imposed at a rate of 0.25%.
(B) The rate for property tax relief shall be applied in the allocations as follows:
(1) One hundred percent of revenues from the rate for property tax relief shall be used to provide local property tax replacement credits at a uniform rate to all taxpayers in the county. The local property tax replacement credits shall be treated for all purposes as property tax levies. The County Auditor shall determine the local property tax replacement credit percentage for a particular year based on the amount of tax revenue that will be used under this division (B)(1) to provide local property tax replacement credits in that year. The Council has made available to the public the Council’s best estimate of the amount of property tax replacement credits to be provided under this division (B)(1) to homesteads, other residential property, commercial property, industrial property and agricultural property. The Council acknowledges that some taxpayers in the county that do not pay the rate for property tax relief will receive a property tax replacement credit that is funded with tax revenue from the rate for property tax relief.
(2) Zero percent of revenues from the rate for property tax relief shall be used to uniformly provide the homestead credit percentage in the county. The homestead credits shall be treated for all purposes as property tax levies. The homestead credits do not reduce the basis for determining any state homestead credit. The homestead credits shall be applied to the net property taxes due on the homestead after the application of all other assessed value deductions or property tax deductions and credits that apply to the amount owed under I.C. 6-1.1. The County Auditor shall determine the homestead credit percentage for a particular year based on the amount of tax revenue from the rate for property tax relief that will be used under this division (B)(2) to provide homestead credits in that year.
(3) Zero percent of revenues from the rate for property tax relief shall be used to provide local property tax replacement credits at a uniform rate for all qualified residential property (as defined in I.C. 6-3.5-1.1-1) in the county. The local property tax replacement credits shall be treated for all purposes as property tax levies. The County Auditor shall determine the local property tax replacement credit percentage for a particular year based on the amount of tax revenue from the rate for property tax relief that will be used under this division (B)(3) to provide local property tax replacement credits in that year.
(C) The rate for property tax relief shall take effect January 1, 2015.
(D) The County Adjusted Gross Income Tax (CAGIT) revenue attributable to the rate for property tax relief shall be in addition to any other CAGIT rates imposed on the taxpayers of the county and shall be used pursuant to the provisions of I.C. 6-3.5-1.1-26 and state law.
(E) The County Auditor shall immediately transmit a certified copy of this section to the Commissioner of the Department of Revenue, the director of the budget agency and the Commissioner of the Department of Local Government Finance in electronic format, in accordance with I.C. 6-3.5-1.1-26(d).
(F) The County Auditor and any officer of the Council are hereby authorized and directed to take any and all other actions on behalf of the county as may be necessary, appropriate or desirable to carry out the purposes of this section in accordance with I.C. 6-3.5-1.1 and this section.
(Council Ord. 05, 2014, passed 10-14-2014)