1. (a) A county fiscal body may adopt an ordinance to impose a tax rate for correctional facilities and rehabilitation facilities in the county. The tax rate must be in increments of:

   1. (1) in the case of a county with bonds or lease agreements outstanding on July 1, 2023, for which a pledge of tax revenue from revenue received under a tax rate imposed under this section is made, one-hundredth of one percent (0.01%) and may not exceed three-tenths of one percent (0.3%); and

   2. (2) in the case of a county with no bonds or lease agreements outstanding on July 1, 2023, for which a pledge of tax revenue from revenue received under a tax rate imposed under this section is made, one-hundredth of one percent (0.01%) and may not exceed two-tenths of one percent (0.2%).

      Not more than an amount equal to the amount of revenue that is attributable to two-tenths of one percent (0.2%) of a tax rate imposed under this section may be used for operating expenses for correctional facilities and rehabilitation facilities in the county.

2. (b) The tax rate imposed under this section may not be in effect for more than:

   1. (1) twenty-two (22) years, in the case of a tax rate imposed in an ordinance adopted before January 1, 2019; or
   2. (2) twenty-five (25) years, in the case of a tax rate imposed in an ordinance adopted on or after January 1, 2019.
3. (c) The revenue generated by a tax rate imposed under this section must be distributed directly to the county before the remainder of the expenditure rate revenue is distributed. The revenue shall be maintained in a separate dedicated county fund and used by the county only for paying for correctional facilities and rehabilitation facilities in the county.

As added by P.L.184-2018, SEC.2. Amended by P.L.257-2019, SEC.70; P.L.137-2022, SEC.53; P.L.236-2023, SEC.79.