Ind. Code ch. 6-3.6-1

Ind. Code § 6-3.6-1-1 Purpose; effective date of article; procedures for transition

Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028. Sec. 1. (a) The purpose of this article is to consolidate and simplify the various local income tax laws (referred to as a "former tax" in this article) that are in effect on May 1, 2016, into a uniform law that transitions each county from the former taxes to the tax governed by this article. (b) Notwithstanding the effective date of the repeal of the former tax laws on January 1, 2017, an adopting body may not adopt any ordinances under a former tax after June 30, 2016. In addition, notwithstanding the effective date of this article being July 1, 2015, an adopting body may not take any action under this article before July 1, 2016. (c) To carry out the transition, the office of management and budget, along with the appropriate state agencies and in cooperation with each county, shall do the following: (1) Document all terms, conditions, limitations, and obligations that exist under the former taxes. (2) Categorize the tax rate under the former taxes into the appropriate tax rate or rates under this article to provide revenue for all the same purposes for which revenue under a former tax was used in 2016, except to the extent required under this article and to the extent that an adopting body takes action under this article after June 30, 2016, to change the purposes and allocation of the revenue as permitted under this article. Matching the purposes of a former tax to the purposes under this article, including the apportionment, allocation, and distribution of revenue under this article shall be accomplished by using the best information available. These purposes include, but are not limited to, one (1) or more of the following: (A) Property tax credits using the options set forth in IC 6-3.6-5. This categorization is limited to former tax rates that were dedicated to providing credits against property taxes under IC 6-3.5-1.1-26 (repealed), IC 6-3.5-6 (repealed), or IC 6-3.5-7 (repealed). (B) School corporation distributions and additional revenue. All former tax rates not used for a specified project or categorized under clause (A) shall be categorized under IC 6-3.6-6 using the former tax rates or dollar amounts that were dedicated for school corporation distributions, public safety, economic development, and certified shares. (C) A special purpose project (IC 6-3.6-7) using the former tax rate that was dedicated to the project. (d) The transition under this article shall be completed by August 1, 2016, for purposes of local government budgets for 2017 and for purposes of the distribution and allocation of revenue under this article after December 31, 2016. As added by P.L.243-2015, SEC.10. Amended by P.L.197-2016, SEC.39; P.L.130-2018, SEC.28.

Ind. Code § 6-3.6-1-1 Purpose; effective date of article; procedures for transition

Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028. Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028. Sec. 1. (a) The purpose of this article is to consolidate and simplify the various local income tax laws (referred to as a "former tax" in this article) that are in effect on May 1, 2016, into a uniform law that transitions each county from the former taxes to the tax governed by this article. (b) Notwithstanding the effective date of the repeal of the former tax laws on January 1, 2017, an adopting body may not adopt any ordinances under a former tax after June 30, 2016. In addition, notwithstanding the effective date of this article being July 1, 2015, an adopting body may not take any action under this article before July 1, 2016. (c) To carry out the transition, the office of management and budget, along with the appropriate state agencies and in cooperation with each county, shall do the following: (1) Document all terms, conditions, limitations, and obligations that exist under the former taxes. (2) Categorize the tax rate under the former taxes into the appropriate tax rate or rates under this article to provide revenue for all the same purposes for which revenue under a former tax was used in 2016, except to the extent required under this article and to the extent that an adopting body takes action under this article after June 30, 2016, to change the purposes and allocation of the revenue as permitted under this article. Matching the purposes of a former tax to the purposes under this article, including the apportionment, allocation, and distribution of revenue under this article shall be accomplished by using the best information available. These purposes include, but are not limited to, one (1) or more of the following: (A) Property tax credits using the options set forth in IC 6-3.6-5 (before its expiration). This categorization is limited to former tax rates that were dedicated to providing credits against property taxes under IC 6-3.5-1.1-26 (repealed), IC 6-3.5-6 (repealed), or IC 6-3.5-7 (repealed). (B) School corporation distributions and additional revenue. All former tax rates not used for a specified project or categorized under clause (A) shall be categorized under IC 6-3.6-6 using the former tax rates or dollar amounts that were dedicated for school corporation distributions, public safety, economic development, and certified shares. (C) A special purpose project (IC 6-3.6-7) using the former tax rate that was dedicated to the project. (d) The transition under this article shall be completed by August 1, 2016, for purposes of local government budgets for 2017 and for purposes of the distribution and allocation of revenue under this article after December 31, 2016. As added by P.L.243-2015, SEC.10. Amended by P.L.197-2016, SEC.39; P.L.130-2018, SEC.28; P.L.68-2025, SEC.91.

Ind. Code § 6-3.6-1-1.1 Repealed

As added by P.L.197-2016, SEC.40. Repealed by P.L.130-2018, SEC.29.

Ind. Code § 6-3.6-1-1.5 Transition of certain homestead credits to the property tax relief rate

Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028. Sec. 1.5. (a) In counties that adopted a homestead credit under IC 6-3.5-6-13 (before its repeal January 1, 2017), the transition from the former taxes to the taxes governed under this article shall include the transition of the homestead credit under IC 6-3.5-6-13 (before its repeal January 1, 2017) to a property tax relief rate under IC 6-3.6-5. (b) To accomplish the transition under this section, the department of local government finance shall determine the portion of the income tax rate under IC 6-3.5-6-8 (before its repeal January 1, 2017) that is attributable to the homestead credit approved under IC 6-3.5-6-13 (before its repeal January 1, 2017) and shall allocate that portion of the income tax rate that is attributable to the homestead credit under IC 6-3.5-6-13 (before its repeal January 1, 2017) to the property tax relief rate under IC 6-3.6-5. (c) The department of local government finance shall notify each affected county of the rate that will be allocated to the property tax relief rate not later than July 1, 2016. In addition, the department of local government finance shall notify the state budget agency of the transition under this section. (d) The approval of the local income tax council is not required for the transition of the homestead credit under IC 6-3.5-6-13 (before its repeal January 1, 2017) to a property tax relief rate as set forth in this section. As added by P.L.197-2016, SEC.41.

Ind. Code § 6-3.6-1-1.5 Transition of certain homestead credits to the property tax relief rate

Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028. Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028. Sec. 1.5. (a) In counties that adopted a homestead credit under IC 6-3.5-6-13 (before its repeal January 1, 2017), the transition from the former taxes to the taxes governed under this article shall include the transition of the homestead credit under IC 6-3.5-6-13 (before its repeal January 1, 2017) to a property tax relief rate under IC 6-3.6-5 (before its expiration). (b) To accomplish the transition under this section, the department of local government finance shall determine the portion of the income tax rate under IC 6-3.5-6-8 (before its repeal January 1, 2017) that is attributable to the homestead credit approved under IC 6-3.5-6-13 (before its repeal January 1, 2017) and shall allocate that portion of the income tax rate that is attributable to the homestead credit under IC 6-3.5-6-13 (before its repeal January 1, 2017) to the property tax relief rate under IC 6-3.6-5 (before its expiration). (c) The department of local government finance shall notify each affected county of the rate that will be allocated to the property tax relief rate not later than July 1, 2016. In addition, the department of local government finance shall notify the state budget agency of the transition under this section. (d) This section expires July 1, 2029. As added by P.L.197-2016, SEC.41. Amended by P.L.68-2025, SEC.92; P.L.157-2026, SEC.105.

Ind. Code § 6-3.6-1-2 Applicability of article

Sec. 2. This article applies to: (1) taxes and tax liability in effect after December 31, 2016; (2) homestead and property tax credits against property tax liability imposed for an assessment date after December 31, 2015; and (3) subject to subdivisions (1) and (2), administration of taxes described in section 3 of this chapter, after December 31, 2016. As added by P.L.243-2015, SEC.10.

Ind. Code § 6-3.6-1-3 Continuation of former tax rates

Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028. Sec. 3. Except to the extent that taxes imposed in a county under or determined under: (1) IC 6-3.5-1.1 (repealed); (2) IC 6-3.5-1.5 (repealed); (3) IC 6-3.5-6 (repealed); or (4) IC 6-3.5-7 (repealed); are increased, decreased, or rescinded under this article, the total tax rate in effect in a county under the provisions described in subdivisions (1) through (4) on May 1, 2016, continue in effect after May 1, 2016, and shall be treated as taxes imposed under this article. As added by P.L.243-2015, SEC.10. Amended by P.L.197-2016, SEC.42.

Ind. Code § 6-3.6-1-3 Continuation of former tax rates

Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028. Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028. Sec. 3. (a) Except to the extent that taxes imposed in a county under or determined under: (1) IC 6-3.5-1.1 (repealed); (2) IC 6-3.5-1.5 (repealed); (3) IC 6-3.5-6 (repealed); or (4) IC 6-3.5-7 (repealed); are increased, decreased, or rescinded under this article, the total tax rate in effect in a county under the provisions described in subdivisions (1) through (4) on May 1, 2016, continue in effect after May 1, 2016, and shall be treated as taxes imposed under this article. (b) Notwithstanding subsection (a) or any other provision of this article, a property tax relief rate imposed in a county under IC 6-3.6-5 (before its expiration) expires December 31, 2028. As added by P.L.243-2015, SEC.10. Amended by P.L.197-2016, SEC.42; P.L.68-2025, SEC.93; P.L.157-2026, SEC.106.

Ind. Code § 6-3.6-1-4 Applicable provisions for changes in a tax; credits; pledges for payment from tax revenue

Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028. Sec. 4. Notwithstanding: (1) IC 6-3.5-1.1 (repealed); (2) IC 6-3.5-1.5 (repealed); (3) IC 6-3.5-6 (repealed); or (4) IC 6-3.5-7 (repealed); a change in a tax imposed under a provision described in subdivisions (1) through (4), credits related to property taxes, allocations of tax revenue, and pledges for payment from tax revenue after December 31, 2016, must be made under this article and not under the provisions described in subdivisions (1) through (4). As added by P.L.243-2015, SEC.10. Amended by P.L.197-2016, SEC.43.

Ind. Code § 6-3.6-1-4 Applicable provisions for changes in a tax; credits; pledges for payment from tax revenue

Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028. Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028. Sec. 4. Notwithstanding: (1) IC 6-3.5-1.1 (repealed); (2) IC 6-3.5-1.5 (repealed); (3) IC 6-3.5-6 (repealed); or (4) IC 6-3.5-7 (repealed); a change in a tax imposed under a provision described in subdivisions (1) through (4), credits related to property taxes provided under IC 6-3.6-5 (before its expiration), allocations of tax revenue, and pledges for payment from tax revenue after December 31, 2016, must be made under this article and not under the provisions described in subdivisions (1) through (4). As added by P.L.243-2015, SEC.10. Amended by P.L.197-2016, SEC.43; P.L.68-2025, SEC.94.

Ind. Code § 6-3.6-1-5 References to repealed and replaced statutes

Sec. 5. A reference in a statute or rule to a statute that is repealed and replaced in the same or a different form in this article shall be treated after December 31, 2016, as a reference to the new provision. As added by P.L.243-2015, SEC.10.

Ind. Code § 6-3.6-1-6 Continuation of rights; duties; obligations; proceedings; liabilities; bonds and leases

Sec. 6. A pledge of a tax described in section 3 of this chapter for the payment of bonds, leases, or other expenditures shall be treated as a pledge of the related tax under this article for the same purpose. Notwithstanding the repeal of IC 6-3.5-1.1, IC 6-3.5-1.5, IC 6-3.5-6, and IC 6-3.5-7 and the enactment of this article, any pledge of revenues received from a tax imposed under any of the provisions of IC 6-3.5-1.1, IC 6-3.5-1.5, IC 6-3.5-6, and IC 6-3.5-7 (prior to their repeal) to the payment, in whole or in part, of: (1) the principal of and interest on bonds; (2) lease rentals due under a lease; and (3) the payment of any other obligation; is binding and enforceable and remains in full force and effect as long as the principal of and interest on any bonds, the lease rentals due under any lease, or the payment of any obligation remains unpaid. The enactment of this article does not affect any rights, duties, obligations, proceedings, or liabilities accrued before January 1, 2017. Those rights, duties, obligations, proceedings, or liabilities continue and shall be imposed and enforced under prior law as if this article had not been enacted and the prior law had not been repealed. As added by P.L.243-2015, SEC.10.

Ind. Code § 6-3.6-1-7 Continuation of time periods; time limits; former tax

Sec. 7. A period that began with respect to a tax described in section 3 of this chapter and limits the period in which the tax may be imposed continues under this article from the starting date and time of the original action under the laws described in section 3 of this chapter and limits the period in which the related tax under this article may be imposed as if the period were initiated under this article. As added by P.L.243-2015, SEC.10.

Ind. Code § 6-3.6-1-8 Continuation of time periods; time limits; bonds or leases payable from tax

Sec. 8. A period that began with respect to the issuance of bonds or leases payable from a tax described in section 3 of this chapter and limits the period in which the bonds or leases may be in effect continues under this article from the starting date and time of the original action under the laws described in section 3 of this chapter and limits the period in which the bonds or leases may be in effect as if the period were initiated under this article. As added by P.L.243-2015, SEC.10.

Ind. Code § 6-3.6-1-9 Certification to each county of tax rates by tax category

Sec. 9. Before August 2, 2016, the budget agency, with the assistance of the department of local government finance, shall certify to each county the income tax rates under this article, by tax rate category, as categorized by the office of management and budget under this chapter. As added by P.L.243-2015, SEC.10.

Ind. Code § 6-3.6-1-10 Transition assistance; department of local government finance

Sec. 10. The department of local government finance shall assist adopting bodies and other local governmental entities as necessary to provide for a transition to the administration of taxes under this article. As added by P.L.243-2015, SEC.10.