IC 6-3.6-8-3 (Version b): County or municipality residency; determination

Sec. 3. (a) For purposes of this article, an individual shall be treated as a resident of the county (or the municipality in the case of a local income tax imposed under IC 6-3.6-6-22) in which the individual:

(1) maintains a home, if the individual maintains only one (1) home in Indiana;

(2) if subdivision (1) does not apply, is registered to vote;

(3) if subdivision (1) or (2) does not apply, registers the individual's personal automobile; or

(4) spent more of the individual's time in Indiana during the taxable year in question compared to any other county, if subdivision (1), (2), or (3) does not apply.

(b) The residence of an individual is to be determined on January 1 of the calendar year in which the individual's taxable year commences. If an individual changes the location of the individual's residence to another county (or municipality in the case of a local income tax imposed under IC 6-3.6-6-22) in Indiana during a calendar year, the individual's liability for tax is not affected.

(c) Notwithstanding subsection (b), if an individual becomes a local taxpayer for purposes of IC 36-7-27 during a calendar year because the individual changes the location of the individual's residence to a county or municipality in which the individual begins employment or business at a qualified economic development tax project (as defined in IC 36-7-27-9), the individual's adjusted gross income attributable to employment or business at the qualified economic development tax project is taxable only by the county or municipality containing the qualified economic development tax project.

(d) In determining residency for purposes of a local income tax imposed under IC 6-3.6-6-2(b)(4) or IC 6-3.6-6-22, the following apply:

(1) The criteria in subsection (a)(1) through (a)(4) must be applied to municipalities and the parts of a county in which the county may impose a tax rate under IC 6-3.6-6-2(b)(4).

(2) If an individual meets the criteria in subsection (a)(1) through (a)(3) for an area in the county in which the county may impose a tax rate under IC 6-3.6-6-2(b)(4), the individual is considered a resident of that area of the county and is subject to a tax rate imposed under IC 6-3.6-6-2(b)(4).

(3) If an individual is a resident of the county pursuant to subsection (a)(4), the:

(A) time spent in all areas within the county in which the county may impose a tax rate under IC 6-3.6-6-2(b)(4) shall be aggregated; and

(B) determination of the individual's residence within the county shall be determined solely by the time spent in the municipality (or part of the county) and the parts of a county in which the county may impose a tax rate under IC 6-3.6-6-2(b)(4).