AGO 2004-01.

• Case Date: January 13, 2004
• Court: Indiana

Indiana Attorney General Opinions 2004. AGO 2004-01. January 13, 2004OFFICIAL OPINION 2004-1The Honorable Thomas SaundersIndiana House of Representatives 200 West Washington Street Indianapolis, Indiana 46204 Re: Constitutionality of "special legislation" Dear Representative Saunders: This letter is in response to your request for an opinion on the constitutionality of Ind. Code 6-3.5-7-22.5 as amended by P.L. 224-2003 258. In particular you have asked if it is advisable for Randolph County to expend county option income tax funds collected under this statute on volunteer fire department buildings, apparatus and other equipment. BRIEF ANSWER We have sufficient constitutional concerns regarding Ind. Code 6-3.5-7-22.5, as amended by P.L. 224-2003 258, to advise that additional legislative direction is warranted prior to the expenditure of any funds associated with the increased CEDIT rate other than for the renovation of the former county hospital. FACTUAL BACKGROUND Indiana Code 6-3.5-7-22.5 was first enacted in 2001 as P.L. 185-200 4; it was also included in the same form in the 2001 budget bill as P.L. 291-2001 180. It authorized Randolph County (described by population but not by name) to impose a county economic development income tax ("CEDIT") in excess of that otherwise allowed by law if the county council adopted an ordinance finding that the funds were needed for: financing, constructing, acquiring, renovating, and equipping the county courthouse and for renovating the former county hospital for additional office space, educational facilities, nonsecure juvenile facilities, and other county functions, including the repayment of bonds issued, or leases entered into for renovating the former county hospital for additional office space, educational facilities, nonsecure juvenile facilities, and other county functions.1 (emphasis added) STATE OF INDIANA OFFICE OF THE ATTORNEY GENERAL INDIANA GOVERNMENT CENTER SOUTH, FIFTH FLOOR 302 W. WASHINGTON STREET INDIANAPOLIS, IN 46204-2770 STEVE CARTER ATTORNEY GENERAL TELEPHONE (317) 232-6201 The 2001 version of the law further provided that if such an ordinance was adopted, the tax rate could not be imposed at a rate or for a time greater than necessary to pay the costs incurred in connection with the programs so described (courthouse and county jail modification)2, that the county treasurer was required to establish a "county courthouse revenue fund" into which all revenues derived from the increased tax rate would be...