45 IAC 3.1-4-6 Duration of tax

Authority: IC 6-8.1-3-3

Affected: IC 6-3.6

Sec. 6. (a) The local income tax (LIT) is in effect until affirmatively changed by the adopting body for the county, the date otherwise specified in the ordinance, or the date mandated by the appropriate provision of Indiana law.

(b) This subsection applies only to a LIT rate change as follows:

(1) If a LIT is changed between January 1 of a calendar year and August 31 of a calendar year, inclusive, the new LIT is effective on October 1 of that same calendar year. For purposes of computing an individual's LIT for that calendar year, the rate shall be equal to seventy-five percent (75%) of the LIT prior to change plus twenty-five percent (25%) of the LIT after the change.

(2) If a LIT is changed between September 1 of a calendar year and October 31 of a calendar year, inclusive, the new LIT is effective on January 1 of the following calendar year.

(3) If a LIT is changed between November 1 of a calendar year and December 31 of a calendar year, inclusive, the new LIT is effective on October 1 of the following calendar year. The LIT for the following calendar year is computed in a manner similar to subdivision (1).

(Department of State Revenue; 45 IAC 3.1-4-6; filed May 10, 2017, 3:04 p.m.: 20170607-IR-045160491FRA; readopted filed Aug 11, 2023, 10:08 a.m.: 20230906-IR-045230534RFA)