01-26-15 Agenda, Packet and Committee Meeting Notice

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under IC 6- 3- 1- 3.5(a) is as defined for individuals in Section 62 of the Internal Revenue Code, subject to certain modifications. In 1995, the St. Joseph County Income Tax Council (the "Income Tax Council ") originally imposed CEDIT on County taxpayers at a rate of one - tenths of one percent (0.1 %), effective July 1, 1995. In 1997, the County Income Tax Council increased CEDIT on County taxpayers to a rate of two- tenths of one percent (0.2 %), effective July 1, 1997. In 2010, the County Income Tax Council increased the CEDIT on County taxpayers to a rate of four - tenths of one percent (0.4 %), effective July 1, 2010. Subject to the limitations provided therein, the CEDIT statute provides for increases or decreases in the tax rate and for rescission of the tax by the body that imposed it. The CEDIT statute expressly states that the Indiana General Assembly may not repeal or amend the CEDIT Statute in a manner that would adversely affect any outstanding bonds payable from CEDIT revenues. CEDIT may be imposed in increments of 0.1% up to 0.2% and at any multiple of 0.05% above 0.2% but not to exceed 0.5 %. With certain exceptions, in counties in which COIT has been enacted, the combined rates of COIT and CEDIT may not exceed 1 %. With certain exceptions, in counties in which CAGIT has been enacted, the combined rates of CAGIT and CEDIT may not exceed 1.25 %. The County Income Tax Council has imposed COIT at an annual rate of six - tenths of one percent (0.6 %). As a result, the combined rate of COIT and CEDIT in St. Joseph County is 1.0 %. The State of Indiana (the "State ") income tax rate, in addition to any applicable CEDIT, COIT and CAGIT tax rates, is currently three and four - tenths percent (3.4 %). The Indiana Department of State Revenue (the "Department of Revenue ") is required to collect CEDIT after adoption by the appropriate body in any county. Such collections are credited to a special account within the State general fund until distribution to the enacting county. In addition, any income earned on money credited to such special account is required to be added to each county's CEDIT proceeds. Further, any funds remaining in any county's CEDIT account at the end of a State fiscal year may not be transferred to any other account in the State general fund. Before July 2 of each calendar year, the Department of Revenue, after reviewing the recommendation of the State Budget Agency, shall certify to the county auditor of each adopting county the amount of CEDIT that has been received from that county for the taxable year ending before the calendar year in which the determination has been made, and reported on a tax return processed by the Department of Revenue before July 1 of the calendar year in which the determination has been made. The amount certified is the county's certified distribution, which must be distributed in equal installments on May 1 and November 1 of the following calendar year. The certified distribution may be adjusted for refunds of CEDIT made in the State fiscal year in which the determination has been made, plus the amount of interest in the county's account that has accrued but has not been included in a prior certification. The Department of Revenue shall certify an amount less than the amount collected to offset overpayments made in prior years, or may adjust the certified amount to correct any clerical or mathematical errors made in any previous certification. The county auditor is to distribute CEDIT revenues (i) based on the proportionate share of the allocation amount of the City and each city, town and the county (each, a "unit ") to the total allocation amount of the City and all units within the county, or (ii) for counties that adopt CEDIT after June 1, 1992, upon passage of an ordinance by the appropriate body, based on each unit's proportionate share of population within the county to the total population of the county. The County Income Tax Council has adopted an ordinance to provide that CEDIT in St. Joseph County will be distributed based upon the allocation amount formula per IC 6- 3.5- 6 -1.1. The county and each city and town in a county are entitled to a share of the county's certified distribution; provided that such county or unit has adopted a capital improvement plan -3-