Local taxation.

Authors: Representative Jeffrey Thompson

Sponsors: Senator Brandt Hershman, Senator Travis Holdman

Advisors: Representative Todd Huston, Representative Daniel Leonard, Representative Randy Truitt, Representative Melanie Wright


Provides for a transition from the county adjusted gross income tax (CAGIT), the county option income tax (COIT), the county economic development income tax (CEDIT), and the various local income taxes for special purposes and special projects to a single local income tax with three rate components. Retains special distributions. Specifies that the transition is to take effect in 2017. Provides for a report by the office of management and budget to the legislative council in 2015 showing the effect of the transition on taxing units and taxpayers. Authorizes Rush County to impose a CAGIT tax rate for the construction, renovation, operation, or maintenance of a county jail. Provides that the tax rate adopted by the county may range from 0.15% to 0.6%. Urges the legislative council to assign to the fiscal policy interim study committee a study of COIT councils and a review of changes to the Indiana Code that are necessary to bring provisions into conformity with this act, including those laws enacted during the 2015 regular session of the general assembly.