Bill > HB1469

This bill modifies the local income tax supplemental distribution rules for Indiana counties by gradually lowering the threshold percentage that determines when a county can receive a supplemental distribution from its trust account. Currently set at 15%, the threshold will decrease to 12.5% for determination years between January 1, 2026, and January 1, 2027, and then drop to 10% for determination years beginning after December 31, 2026. The supplemental distribution process remains largely unchanged, with the budget agency calculating the excess balance in a county's trust account based on the balance as of December 31 two years prior. When the trust account balance exceeds the specified percentage of certified distributions, a supplemental distribution will be made, which will be allocated to taxing units within the county using the same method as certified distributions. The bill also allows counties to allocate any part of the supplemental distribution attributable to property tax credits for up to three years after receiving the distribution. An emergency clause is included, indicating the immediate importance of the legislation.

Budget and Finance

https://iga.in.gov/legislative/2025/bills/house/1469/details