2010 Indiana Code
TITLE 6. TAXATION
ARTICLE 1.1. PROPERTY TAXES
CHAPTER 18.5. CIVIL GOVERNMENT PROPERTY TAX CONTROLS
IC 6-1.1-18.5
Chapter 18.5. Civil Government Property Tax Controls
IC 6-1.1-18.5-1 Version a
Definitions
Note: This version of section effective until 3-25-2010. See also
following version of this section, effective 3-25-2010.
Sec. 1. As used in this chapter:
"Ad valorem property tax levy for an ensuing calendar year"
means the total property taxes imposed by a civil taxing unit for
current property taxes collectible in that ensuing calendar year.
"Adopting county" means any county in which the county
adjusted gross income tax is in effect.
"Civil taxing unit" means any taxing unit except a school
corporation.
"Maximum permissible ad valorem property tax levy for the
preceding calendar year" means the greater of:
(1) the remainder of:
(A) the civil taxing unit's maximum permissible ad valorem
property tax levy for the calendar year immediately
preceding the ensuing calendar year, as that levy was
determined under section 3 of this chapter; minus
(B) one-half (1/2) of the remainder of:
(i) the civil taxing unit's maximum permissible ad valorem
property tax levy referred to in clause (A); minus
(ii) the civil taxing unit's ad valorem property tax levy for
the calendar year immediately preceding the ensuing
calendar year referred to in subdivision (2); or
(2) the civil taxing unit's ad valorem property tax levy for the
calendar year immediately preceding the ensuing calendar year,
as that levy was determined by the department of local
government finance in fixing the civil taxing unit's budget, levy,
and rate for that preceding calendar year under IC 6-1.1-17, and
after eliminating the effects of temporary excessive levy appeals
and temporary adjustments made to the working maximum levy
for the calendar year immediately preceding the ensuing
calendar year, as determined by the department of local
government finance.
"Taxable property" means all tangible property that is subject to
the tax imposed by this article and is not exempt from the tax under
IC 6-1.1-10 or any other law. For purposes of sections 2 and 3 of this
chapter, the term "taxable property" is further defined in section 6 of
this chapter.
As added by P.L.73-1983, SEC.1. Amended by P.L.198-2001,
SEC.51; P.L.1-2004, SEC.21 and P.L.23-2004, SEC.22;
P.L.154-2006, SEC.46; P.L.1-2010, SEC.28.
IC 6-1.1-18.5-1 Version b
Definitions
Note: This version of section effective 3-25-2010. See also
preceding version of this section, effective until 3-25-2010.
Sec. 1. As used in this chapter:
"Ad valorem property tax levy for an ensuing calendar year"
means the total property taxes imposed by a civil taxing unit for
current property taxes collectible in that ensuing calendar year.
"Adopting county" means any county in which the county
adjusted gross income tax is in effect.
"Civil taxing unit" means any taxing unit except a school
corporation.
"Maximum permissible ad valorem property tax levy for the
preceding calendar year" means the greater of:
(1) the remainder of:
(A) the civil taxing unit's maximum permissible ad valorem
property tax levy for the calendar year immediately
preceding the ensuing calendar year, as that levy was
determined under section 3 of this chapter; minus
(B) one-half (1/2) of the remainder of:
(i) the civil taxing unit's maximum permissible ad valorem
property tax levy referred to in clause (A); minus
(ii) the civil taxing unit's ad valorem property tax levy for
the calendar year immediately preceding the ensuing
calendar year referred to in subdivision (2); or
(2) the civil taxing unit's ad valorem property tax levy for the
calendar year immediately preceding the ensuing calendar year,
as that levy was determined by the department of local
government finance in fixing the civil taxing unit's budget, levy,
and rate for that preceding calendar year under IC 6-1.1-17, and
after eliminating the effects of temporary excessive levy appeals
and temporary adjustments made to the working maximum levy
for the calendar year immediately preceding the ensuing
calendar year, as determined by the department of local
government finance.
However, for the determination of the maximum permissible
property tax levy for property taxes first due and payable after
December 31, 2010, upon request by a civil taxing unit, the
department of local government finance may make an adjustment to
the civil taxing unit's maximum permissible ad valorem property tax
levy for the ensuing calendar year if the civil taxing unit's actual levy
was lower than the civil taxing unit's maximum permissible ad
valorem property tax levy for the calendar year immediately
preceding the ensuing calendar year because of the civil taxing unit's
use of cash balances.
"Taxable property" means all tangible property that is subject to
the tax imposed by this article and is not exempt from the tax under
IC 6-1.1-10 or any other law. For purposes of sections 2 and 3 of this
chapter, the term "taxable property" is further defined in section 6 of
this chapter.
As added by P.L.73-1983, SEC.1. Amended by P.L.198-2001,
SEC.51; P.L.1-2004, SEC.21 and P.L.23-2004, SEC.22;
P.L.154-2006, SEC.46; P.L.1-2010, SEC.28; P.L.113-2010, SEC.31.
IC 6-1.1-18.5-2
Assessed value growth quotient; Lake County determination
Sec. 2. (a) As used in this section, "Indiana nonfarm personal
income" means the estimate of total nonfarm personal income for
Indiana in a calendar year as computed by the federal Bureau of
Economic Analysis using any actual data for the calendar year and
any estimated data determined appropriate by the federal Bureau of
Economic Analysis.
(b) Subject to subsection (c), for purposes of determining a civil
taxing unit's maximum permissible ad valorem property tax levy for
an ensuing calendar year, the civil taxing unit shall use the assessed
value growth quotient determined in the last STEP of the following
STEPS:
STEP ONE: For each of the six (6) calendar years immediately
preceding the year in which a budget is adopted under
IC 6-1.1-17-5 for the ensuing calendar year, divide the Indiana
nonfarm personal income for the calendar year by the Indiana
nonfarm personal income for the calendar year immediately
preceding that calendar year, rounding to the nearest
one-thousandth (0.001).
STEP TWO: Determine the sum of the STEP ONE results.
STEP THREE: Divide the STEP TWO result by six (6),
rounding to the nearest one-thousandth (0.001).
STEP FOUR: Determine the lesser of the following:
(A) The STEP THREE quotient.
(B) One and six-hundredths (1.06).
(c) This subsection applies only to civil taxing units in Lake
County. Notwithstanding any other provision, for property taxes first
due and payable after December 31, 2007, the assessed value growth
quotient used to determine a civil taxing unit's maximum permissible
ad valorem property tax levy under this chapter for a particular
calendar year is one (1) unless a tax rate of one percent (1%) will be
in effect under IC 6-3.5-1.1-26 or IC 6-3.5-6-32 in Lake County for
that calendar year.
As added by P.L.73-1983, SEC.1. Amended by P.L.44-1984, SEC.1;
P.L.198-2001, SEC.52; P.L.192-2002(ss), SEC.35; P.L.224-2007,
SEC.19; P.L.1-2008, SEC.3.
IC 6-1.1-18.5-3
Maximum ad valorem property tax levy; formula
Sec. 3. (a) A civil taxing unit that is treated as not being located
in an adopting county under section 4 of this chapter may not impose
an ad valorem property tax levy for an ensuing calendar year that
exceeds the amount determined in the last STEP of the following
STEPS:
STEP ONE: Add the civil taxing unit's maximum permissible
ad valorem property tax levy for the preceding calendar year to
the part of the civil taxing unit's certified share, if any, that was
used to reduce the civil taxing unit's ad valorem property tax
levy under STEP EIGHT of subsection (b) for that preceding
calendar year.
STEP TWO: Multiply the amount determined in STEP ONE by
the amount determined in the last STEP of section 2(b) of this
chapter.
STEP THREE: Determine the lesser of one and fifteen
hundredths (1.15) or the quotient (rounded to the nearest
ten-thousandth (0.0001)), of the assessed value of all taxable
property subject to the civil taxing unit's ad valorem property
tax levy for the ensuing calendar year, divided by the assessed
value of all taxable property that is subject to the civil taxing
unit's ad valorem property tax levy for the ensuing calendar year
and that is contained within the geographic area that was
subject to the civil taxing unit's ad valorem property tax levy in
the preceding calendar year.
STEP FOUR: Determine the greater of the amount determined
in STEP THREE or one (1).
STEP FIVE: Multiply the amount determined in STEP TWO by
the amount determined in STEP FOUR.
STEP SIX: Add the amount determined under STEP TWO to
the amount determined under subsection (c).
STEP SEVEN: Determine the greater of the amount determined
under STEP FIVE or the amount determined under STEP SIX.
(b) Except as otherwise provided in this chapter, a civil taxing
unit that is treated as being located in an adopting county under
section 4 of this chapter may not impose an ad valorem property tax
levy for an ensuing calendar year that exceeds the amount
determined in the last STEP of the following STEPS:
STEP ONE: Add the civil taxing unit's maximum permissible
ad valorem property tax levy for the preceding calendar year to
the part of the civil taxing unit's certified share, if any, used to
reduce the civil taxing unit's ad valorem property tax levy under
STEP EIGHT of this subsection for that preceding calendar
year.
STEP TWO: Multiply the amount determined in STEP ONE by
the amount determined in the last STEP of section 2(b) of this
chapter.
STEP THREE: Determine the lesser of one and fifteen
hundredths (1.15) or the quotient of the assessed value of all
taxable property subject to the civil taxing unit's ad valorem
property tax levy for the ensuing calendar year divided by the
assessed value of all taxable property that is subject to the civil
taxing unit's ad valorem property tax levy for the ensuing
calendar year and that is contained within the geographic area
that was subject to the civil taxing unit's ad valorem property
tax levy in the preceding calendar year.
STEP FOUR: Determine the greater of the amount determined
in STEP THREE or one (1).
STEP FIVE: Multiply the amount determined in STEP TWO by
the amount determined in STEP FOUR.
STEP SIX: Add the amount determined under STEP TWO to
the amount determined under subsection (c).
STEP SEVEN: Determine the greater of the amount determined
under STEP FIVE or the amount determined under STEP SIX.
STEP EIGHT: Subtract the amount determined under STEP
FIVE of subsection (e) from the amount determined under
STEP SEVEN of this subsection.
(c) The amount to be entered under STEP SIX of subsection (a)
or STEP SIX of subsection (b), as applicable, equals the sum of the
following:
(1) If a civil taxing unit in the immediately preceding calendar
year provided an area outside its boundaries with services on a
contractual basis and in the ensuing calendar year that area has
been annexed by the civil taxing unit, the amount paid by the
annexed area during the immediately preceding calendar year
for services that the civil taxing unit must provide to that area
during the ensuing calendar year as a result of the annexation.
(2) If the civil taxing unit has had an excessive levy appeal
approved under section 13(a)(1) of this chapter for the ensuing
calendar year, an amount determined by the civil taxing unit for
the ensuing calendar year that does not exceed the amount of
that excessive levy.
In all other cases, the amount to be entered under STEP SIX of
subsection (a) or STEP SIX of subsection (b), as the case may be,
equals zero (0).
(d) This subsection applies only to civil taxing units located in a
county having a county adjusted gross income tax rate for resident
county taxpayers (as defined in IC 6-3.5-1.1-1) of one percent (1%)
as of January 1 of the ensuing calendar year. For each civil taxing
unit, the amount to be added to the amount determined in subsection
(e), STEP FOUR, is determined using the following formula:
STEP ONE: Multiply the civil taxing unit's maximum
permissible ad valorem property tax levy for the preceding
calendar year by two percent (2%).
STEP TWO: For the determination year, the amount to be used
as the STEP TWO amount is the amount determined in
subsection (f) for the civil taxing unit. For each year following
the determination year the STEP TWO amount is the lesser of:
(A) the amount determined in STEP ONE; or
(B) the amount determined in subsection (f) for the civil
taxing unit.
STEP THREE: Determine the greater of:
(A) zero (0); or
(B) the civil taxing unit's certified share for the ensuing
calendar year minus the greater of:
(i) the civil taxing unit's certified share for the calendar
year that immediately precedes the ensuing calendar year;
or
(ii) the civil taxing unit's base year certified share.
STEP FOUR: Determine the greater of:
(A) zero (0); or
(B) the amount determined in STEP TWO minus the amount
determined in STEP THREE.
Add the amount determined in STEP FOUR to the amount
determined in subsection (e), STEP THREE, as provided in
subsection (e), STEP FOUR.
(e) For each civil taxing unit, the amount to be subtracted under
subsection (b), STEP EIGHT, is determined using the following
formula:
STEP ONE: Determine the lesser of the civil taxing unit's base
year certified share for the ensuing calendar year, as determined
under section 5 of this chapter, or the civil taxing unit's certified
share for the ensuing calendar year.
STEP TWO: Determine the greater of:
(A) zero (0); or
(B) the remainder of:
(i) the amount of federal revenue sharing money that was
received by the civil taxing unit in 1985; minus
(ii) the amount of federal revenue sharing money that will
be received by the civil taxing unit in the year preceding
the ensuing calendar year.
STEP THREE: Determine the lesser of:
(A) the amount determined in STEP TWO; or
(B) the amount determined in subsection (f) for the civil
taxing unit.
STEP FOUR: Add the amount determined in subsection (d),
STEP FOUR, to the amount determined in STEP THREE.
STEP FIVE: Subtract the amount determined in STEP FOUR
from the amount determined in STEP ONE.
(f) As used in this section, a taxing unit's "determination year"
means the latest of:
(1) calendar year 1987, if the taxing unit is treated as being
located in an adopting county for calendar year 1987 under
section 4 of this chapter;
(2) the taxing unit's base year, as defined in section 5 of this
chapter, if the taxing unit is treated as not being located in an
adopting county for calendar year 1987 under section 4 of this
chapter; or
(3) the ensuing calendar year following the first year that the
taxing unit is located in a county that has a county adjusted
gross income tax rate of more than one-half percent (0.5%) on
July 1 of that year.
The amount to be used in subsections (d) and (e) for a taxing unit
depends upon the taxing unit's certified share for the ensuing
calendar year, the taxing unit's determination year, and the county
adjusted gross income tax rate for resident county taxpayers (as
defined in IC 6-3.5-1.1-1) that is in effect in the taxing unit's county
on July 1 of the year preceding the ensuing calendar year. For the
determination year and the ensuing calendar years following the
taxing unit's determination year, the amount is the taxing unit's
certified share for the ensuing calendar year multiplied by the
appropriate factor prescribed in the following table:
COUNTIES WITH A TAX RATE OF 1/2%
Subsection (e)
Year Factor
For the determination year and each ensuing
calendar year following the determination year 0
COUNTIES WITH A TAX RATE OF 3/4%
Subsection (e)
Year Factor
For the determination year and each ensuing
calendar year following the determination year 1/2
COUNTIES WITH A TAX RATE OF 1.0%
Subsection (d) Subsection (e)
Year Factor Factor
For the determination year 1/6 1/3
For the ensuing calendar year
following the determination year 1/4 1/3
For the ensuing calendar year
following the determination year
by two (2) years 1/3 1/3
(g) This subsection applies only to property taxes first due and payable after December 31, 2007. This subsection applies only to a civil taxing unit that is located in a county for which a county adjusted gross income tax rate is first imposed or is increased in a particular year under IC 6-3.5-1.1-24 or a county option income tax rate is first imposed or is increased in a particular year under IC 6-3.5-6-30. Notwithstanding any provision in this section or any other section of this chapter and except as provided in subsection (h), the maximum permissible ad valorem property tax levy calculated under this section for the ensuing calendar year for a civil taxing unit subject to this section is equal to the civil taxing unit's maximum permissible ad valorem property tax levy for the current calendar year.
(h) This subsection applies only to property taxes first due and payable after December 31, 2007. In the case of a civil taxing unit that:
(1) is partially located in a county for which a county adjusted gross income tax rate is first imposed or is increased in a particular year under IC 6-3.5-1.1-24 or a county option income tax rate is first imposed or is increased in a particular year under IC 6-3.5-6-30; and
(2) is partially located in a county that is not described in subdivision (1);
the department of local government finance shall, notwithstanding subsection (g), adjust the portion of the civil taxing unit's maximum permissible ad valorem property tax levy that is attributable (as determined by the department of local government finance) to the county or counties described in subdivision (2). The department of local government finance shall adjust this portion of the civil taxing unit's maximum permissible ad valorem property tax levy so that,
notwithstanding subsection (g), this portion is allowed to increase as
otherwise provided in this section. If the department of local
government finance increases the civil taxing unit's maximum
permissible ad valorem property tax levy under this subsection, any
additional property taxes imposed by the civil taxing unit under the
adjustment shall be paid only by the taxpayers in the county or
counties described in subdivision (2).
As added by P.L.73-1983, SEC.1. Amended by P.L.64-1986, SEC.1;
P.L.78-1987, SEC.4; P.L.151-2001, SEC.4; P.L.198-2001, SEC.53;
P.L.1-2002, SEC.21; P.L.192-2002(ss), SEC.36; P.L.1-2003,
SEC.25; P.L.224-2007, SEC.20; P.L.146-2008, SEC.169.
IC 6-1.1-18.5-4
Location in adopting county; determination
Sec. 4. For purposes of determining whether a civil taxing unit is
subject to the levy limit imposed by section 3(a) or 3(b) of this
chapter for an ensuing calendar year, the civil taxing unit shall be
treated as being located in an adopting county if on September 1 of
the preceding calendar year the county adjusted gross income tax
was in effect in the county in which the civil taxing unit is located.
In all other cases, civil taxing units shall be treated as not being
located in an adopting county for an ensuing budget year.
As added by P.L.73-1983, SEC.1.
IC 6-1.1-18.5-4.5
Levy adjustment for transfer of duties between assessors
Sec. 4.5. The department of local government finance shall adjust
the maximum permissible ad valorem tax levy of each county and
township to reflect any transfer of duties between assessors under
IC 36-2-15-5 or IC 36-6-5-2 (repealed).
As added by P.L.219-2007, SEC.54. Amended by P.L.1-2010,
SEC.29.
IC 6-1.1-18.5-5
"Base year"; calculation of initial certified distribution
Sec. 5. (a) As used in this section, "base year" for a civil taxing
unit means the most recent calendar year:
(1) in which the civil taxing unit is located in an adopting
county, as determined under section 4 of this chapter; and
(2) that is immediately preceded by a calendar year in which the
civil taxing unit either:
(A) was not located in an adopting county, as determined
under section 4 of this chapter; or
(B) did not impose an ad valorem property tax levy.
If the civil taxing unit was located in an adopting county in calendar
year 1979, as determined under section 4 of this chapter, the civil
taxing unit's base year is calendar year 1979 or the year determined
above, whichever is later.
(b) As used in this section, "initial certified distribution" means
the amount of certified shares received by a civil taxing unit in the
year determined under subsection (e).
(c) If the county adjusted gross income tax was not in effect on
January 1 of the calendar year immediately preceding the ensuing
calendar year in the county in which a particular civil taxing unit is
located, then the civil taxing unit's base year certified share is the
amount of certified shares to be received by the civil taxing unit
during its base year.
(d) If the county adjusted gross income tax was in effect on
January 1 of the calendar year immediately preceding the ensuing
calendar year in the county in which a particular civil taxing unit is
located, then the civil taxing unit's base year certified share is the
amount of the civil taxing unit's initial certified distribution
multiplied by a fraction:
(1) The numerator of the fraction equals the remainder of the
county adjusted gross income tax rate of the county in which
the civil taxing unit is located and that is imposed on January 1
of the ensuing calendar year minus one quarter of one percent
(1/4%).
(2) The denominator of the fraction equals the remainder of the
county adjusted gross income tax rate of the county in which
the civil taxing unit is located and that is imposed on January 1
of the civil taxing unit's base year minus one quarter of one
percent (1/4%).
(e) This subsection applies to a civil taxing unit that is located in
a county that:
(1) adopts the county adjusted gross income tax after December
31, 2002; and
(2) had a county adjusted gross income tax in effect on January
1 of the calendar year immediately preceding the ensuing
calendar year.
Until the department of state revenue, after reviewing the
recommendation of the budget agency, notifies the department of
local government finance that a full transition to certification of
distributions as provided in IC 6-3.5-1.1-9(a)(1) through
IC 6-3.5-1.1-9(a)(2) has occurred for the calendar year, the initial
certified distribution to be used under subsection (e) for the civil
taxing unit shall be the amount of the certified shares certified for the
civil taxing unit in the most current calendar year preceding the
ensuing calendar year. For the calendar year for which a full
transition to certification of distributions as provided in
IC 6-3.5-1.1-9(a)(1) through IC 6-3.5-1.1-9(a)(2) has occurred and
each subsequent calendar year, the initial certified distribution to be
used under subsection (e) for the civil taxing unit is the amount of
certified shares certified for the civil taxing unit in the calendar year
in which a full transition to certification of distributions as provided
in IC 6-3.5-1.1-9(a)(1) through IC 6-3.5-1.1-9(a)(2) initially occurred
for the civil taxing unit. The department of state revenue, after
reviewing the recommendation of the budget agency, shall provide
the notice to the department of local government finance as required
under this subsection.
As added by P.L.73-1983, SEC.1. Amended by P.L.267-2003, SEC.1.
IC 6-1.1-18.5-6
Taxable property; assessed value
Sec. 6. For purposes of STEP THREE of section 3(a) of this
chapter and STEP THREE of section 3(b) of this chapter, the
assessed value of taxable property is the assessed value of that
property as determined by the department of local government
finance in fixing the civil taxing unit's budget, levy, and rate for the
applicable calendar year, excluding deductions allowed under
IC 6-1.1-12 or IC 6-1.1-12.1.
As added by P.L.73-1983, SEC.1. Amended by P.L.44-1984, SEC.2;
P.L.198-2001, SEC.54; P.L.3-2008, SEC.44.
IC 6-1.1-18.5-7
Civil taxing unit not subject to levy limits if it did not have levy for
immediately preceding year; department of local government
finance review of budget, rate, and levy
Sec. 7. (a) A civil taxing unit is not subject to the levy limits
imposed by section 3 of this chapter for an ensuing calendar year if
the civil taxing unit did not adopt an ad valorem property tax levy for
the immediately preceding calendar year.
(b) If under subsection (a) a civil taxing unit is not subject to the
levy limits imposed under section 3 of this chapter for a calendar
year, the civil taxing unit shall refer its proposed budget, ad valorem
property tax levy, and property tax rate for that calendar year to the
department of local government finance. The department of local
government finance shall make a final determination of the civil
taxing unit's budget, ad valorem property tax levy, and property tax
rate for that calendar year. However, a civil taxing unit may not
impose a property tax levy for a year if the unit did not exist as of
March 1 of the preceding year.
As added by P.L.73-1983, SEC.1. Amended by P.L.25-1995, SEC.28;
P.L.90-2002, SEC.163; P.L.224-2007, SEC.21; P.L.146-2008,
SEC.170; P.L.182-2009(ss), SEC.126.
IC 6-1.1-18.5-8
Civil taxing unit bond and lease taxes not subject to levy limits;
department of local government finance approval; exceptions;
judicial review
Sec. 8. (a) The ad valorem property tax levy limits imposed by
section 3 of this chapter do not apply to ad valorem property taxes
imposed by a civil taxing unit if the civil taxing unit is committed to
levy the taxes to pay or fund either:
(1) bonded indebtedness; or
(2) lease rentals under a lease with an original term of at least
five (5) years.
(b) Except as provided by subsections (g) and (h), a civil taxing
unit must file a petition requesting approval from the department of
local government finance to incur bonded indebtedness or execute a
lease with an original term of at least five (5) years not later than
twenty-four (24) months after the first date of publication of notice
of a preliminary determination under IC 6-1.1-20-3.1(2) (as in effect
before July 1, 2008), unless the civil taxing unit demonstrates that a
longer period is reasonable in light of the civil taxing unit's facts and
circumstances. A civil taxing unit must obtain approval from the
department of local government finance before the civil taxing unit
may:
(1) incur the bonded indebtedness; or
(2) enter into the lease.
(c) The department of local government finance shall render a
decision within three (3) months after the date it receives a request
for approval under subsection (b). However, the department of local
government finance may extend this three (3) month period by an
additional three (3) months if, at least ten (10) days before the end of
the original three (3) month period, the department sends notice of
the extension to the executive officer of the civil taxing unit. A civil
taxing unit may petition for judicial review of the final determination
of the department of local government finance under this section.
The petition must be filed in the tax court not more than forty-five
(45) days after the department enters its order under this section.
(d) A civil taxing unit does not need approval under subsection (b)
to obtain temporary loans made in anticipation of and to be paid from
current revenues of the civil taxing unit actually levied and in the
course of collection for the fiscal year in which the loans are made.
(e) For purposes of computing the ad valorem property tax levy
limits imposed on a civil taxing unit by section 3 of this chapter, the
civil taxing unit's ad valorem property tax levy for a calendar year
does not include that part of its levy that is committed to fund or pay
bond indebtedness or lease rentals with an original term of five (5)
years in subsection (a).
(f) A taxpayer may petition for judicial review of the final
determination of the department of local government finance under
this section. The petition must be filed in the tax court not more than
thirty (30) days after the department enters its order under this
section.
(g) This subsection applies only to bonds, leases, and other
obligations for which a civil taxing unit:
(1) after June 30, 2008, makes a preliminary determination as
described in IC 6-1.1-20-3.1 or IC 6-1.1-20-3.5 or a decision as
described in IC 6-1.1-20-5; or
(2) in the case of bonds, leases, or other obligations payable
from ad valorem property taxes but not described in subdivision
(1), adopts a resolution or ordinance authorizing the bonds,
lease rental agreement, or other obligations after June 30, 2008.
Notwithstanding any other provision, review by the department of
local government finance and approval by the department of local
government finance is not required before a civil taxing unit may
issue or enter into bonds, a lease, or any other obligation.
(h) This subsection applies after June 30, 2008. Notwithstanding
any other provision, review by the department of local government
finance and approval by the department of local government finance
is not required before a civil taxing unit may construct, alter, or
repair a capital project.
As added by P.L.73-1983, SEC.1. Amended by P.L.25-1995, SEC.29;
P.L.90-2002, SEC.164; P.L.256-2003, SEC.17; P.L.224-2007,
SEC.22; P.L.146-2008, SEC.171; P.L.182-2009(ss), SEC.127.
IC 6-1.1-18.5-9
Exemption from levy limits; major bridge fund
Sec. 9. The ad valorem property tax levy limits imposed by
section 3 of this chapter do not apply to ad valorem property taxes
imposed by a civil taxing unit under IC 8-16-3.1. For purposes of
computing the ad valorem property tax levy limit imposed on a civil
taxing unit under section 3 of this chapter, the civil taxing unit's ad
valorem property tax levy for a particular calendar year does not
include that part of the levy imposed under IC 8-16-3.1.
As added by P.L.73-1983, SEC.1.
IC 6-1.1-18.5-9.5
Application of property tax levy limits to certain port authority
expenses
Sec. 9.5. (a) This section applies to civil taxing units located in a
county having a population of more than one hundred ten thousand
(110,000) but less than one hundred fifteen thousand (115,000).
(b) The ad valorem property tax levy limits imposed by section 3
of this chapter do not apply to ad valorem property taxes imposed by
a civil taxing unit under IC 8-10-5-17. For purposes of computing the
ad valorem property tax levy limit imposed on a civil taxing unit
under section 3 of this chapter, the civil taxing unit's ad valorem
property tax levy for a particular calendar year does not include that
part of the levy imposed under IC 8-10-5-17.
As added by P.L.24-1984, SEC.5. Amended by P.L.12-1992, SEC.19;
P.L.170-2002, SEC.20.
IC 6-1.1-18.5-9.7
Ad valorem property tax; computation
Sec. 9.7. (a) The ad valorem property tax levy limits imposed by
section 3 of this chapter do not apply to ad valorem property taxes
imposed under IC 12-20-24.
(b) For purposes of computing the ad valorem property tax levy
limits imposed under section 3 of this chapter, a county's or
township's ad valorem property tax levy for a particular calendar year
does not include that part of the levy imposed under the citations
listed in subsection (a).
(c) Notwithstanding subsections (a) and (b), the ad valorem
property tax levy limits imposed by section 3 of this chapter apply to
property taxes imposed under IC 12-20-24 after December 31, 2008,
to pay principal and interest on any short term loans obtained under
IC 12-20 after December 31, 2008.
As added by P.L.45-1984, SEC.1. Amended by P.L.16-1986, SEC.4;
P.L.2-1992, SEC.60; P.L.36-1994, SEC.3; P.L.52-1996, SEC.1;
P.L.273-1999, SEC.55; P.L.224-2003, SEC.85; P.L.146-2008,
SEC.172.
IC 6-1.1-18.5-9.8
Exception from levy limits of certain cumulative fund taxes; tax
rate adjustments
Sec. 9.8. (a) For purposes of determining the property tax levy
limit imposed on a city, town, or county under section 3 of this
chapter, the city, town, or county's ad valorem property tax levy for
a particular calendar year does not include an amount equal to the
lesser of:
(1) the amount of ad valorem property taxes that would be first
due and payable to the city, town, or county during the ensuing
calendar year if the taxing unit imposed the maximum
permissible property tax rate per one hundred dollars ($100) of
assessed valuation that the civil taxing unit may impose for the
particular calendar year under the authority of IC 36-9-14.5 (in
the case of a county) or IC 36-9-15.5 (in the case of a city or
town); or
(2) the excess, if any, of:
(A) the property taxes imposed by the city, town, or county
under the authority of:
IC 3-11-6-9;
IC 8-16-3;
IC 8-16-3.1;
IC 8-22-3-25;
IC 14-27-6-48;
IC 14-33-9-3;
IC 16-22-8-41;
IC 16-22-5-2 through IC 16-22-5-15;
IC 16-23-1-40;
IC 36-8-14;
IC 36-9-4-48;
IC 36-9-14;
IC 36-9-14.5;
IC 36-9-15;
IC 36-9-15.5;
IC 36-9-16;
IC 36-9-16.5;
IC 36-9-17;
IC 36-9-26;
IC 36-9-27-100;
IC 36-10-3-21; or
IC 36-10-4-36;
that are first due and payable during the ensuing calendar
year; over
(B) the property taxes imposed by the city, town, or county
under the authority of the citations listed in clause (A) that
were first due and payable during calendar year 1984.
(b) The maximum property tax rate levied under the statutes listed
in subsection (a) must be adjusted each year to account for the
change in assessed value of real property that results from:
(1) an annual adjustment of the assessed value of real property
under IC 6-1.1-4-4.5; or
(2) a general reassessment of real property under IC 6-1.1-4-4.
(c) The new maximum rate under a statute listed in subsection (a)
is the tax rate determined under STEP SEVEN of the following
formula:
STEP ONE: Determine the maximum rate for the political
subdivision levying a property tax under the statute for the year
preceding the year in which the annual adjustment or general
reassessment takes effect.
STEP TWO: Determine the actual percentage increase (rounded
to the nearest one-hundredth percent (0.01%)) in the assessed
value (before the adjustment, if any, under IC 6-1.1-4-4.5) of
the taxable property from the year preceding the year the annual
adjustment or general reassessment takes effect to the year that
the annual adjustment or general reassessment is effective.
STEP THREE: Determine the three (3) calendar years that
immediately precede the ensuing calendar year and in which a
statewide general reassessment of real property does not first
become effective.
STEP FOUR: Compute separately, for each of the calendar
years determined in STEP THREE, the actual percentage
increase (rounded to the nearest one-hundredth percent
(0.01%)) in the assessed value (before the adjustment, if any,
under IC 6-1.1-4-4.5) of the taxable property from the preceding
year.
STEP FIVE: Divide the sum of the three (3) quotients computed
in STEP FOUR by three (3).
STEP SIX: Determine the greater of the following:
(A) Zero (0).
(B) The result of the STEP TWO percentage minus the
STEP FIVE percentage.
STEP SEVEN: Determine the quotient of the STEP ONE tax
rate divided by the sum of one (1) plus the STEP SIX
percentage increase.
(d) The department of local government finance shall compute the
maximum rate allowed under subsection (c) and provide the rate to
each political subdivision with authority to levy a tax under a statute
listed in subsection (a).
As added by P.L.44-1984, SEC.3. Amended by P.L.5-1986, SEC.13;
P.L.2-1993, SEC.55; P.L.1-1995, SEC.46; P.L.17-1995, SEC.5;
P.L.25-1995, SEC.30; P.L.90-2002, SEC.165; P.L.219-2007,
SEC.55.
IC 6-1.1-18.5-9.9
which certain deductions and exemptions apply
Adjustments of property tax rates for local funds in counties in
(1) 2004;
(2) the year the county first applies the deduction under
IC 6-1.1-12-41, if the county first applies that deduction for
property taxes first due and payable in 2005 or 2006; and
(3) 2007, if the county does not apply the deduction under
IC 6-1.1-12-41 for any year.
(b) If the county does not apply the deduction under
IC 6-1.1-12-41 for property taxes first due and payable in 2004, the
department shall compute the adjustment under subsection (a)(1) to
allow a levy for the fund for which the property tax rate is levied that
equals the levy that would have applied for the fund if exemptions
under IC 6-1.1-10-29(b)(2) (repealed) did not apply for the 2003
assessment date.
(c) If the county applies the deduction under IC 6-1.1-12-41 for
property taxes first due and payable in 2004, the department shall
compute the adjustment under subsection (a)(1) to allow a levy for
the fund for which the property tax rate is levied that equals the levy
that would have applied for the fund if:
(1) exemptions under IC 6-1.1-10-29(b)(2) (repealed); and
(2) deductions under IC 6-1.1-12-41;
did not apply for the 2003 assessment date.
(d) The department shall compute the adjustment under
subsection (a)(2) to allow a levy for the fund for which the property
tax rate is levied that equals the levy that would have applied for the
fund if deductions under IC 6-1.1-12-41 did not apply for the
assessment date of the year that immediately precedes the year for
which the adjustment is made.
(e) The department shall compute the adjustment under subsection
(a)(3) to allow a levy for the fund for which the property tax rate is
levied that equals the levy that would have applied for the fund if
deductions under IC 6-1.1-12-42 did not apply for the 2006
assessment date.
As added by P.L.272-2003, SEC.4. Amended by P.L.2-2006, SEC.45;
P.L.146-2008, SEC.173.
IC 6-1.1-18.5-10
Civil taxing unit levy limit exceptions related to community mental
health centers and community mental retardation and other
developmental disabilities centers levy growth limitation
Sec. 10. (a) The ad valorem property tax levy limits imposed by
section 3 of this chapter do not apply to ad valorem property taxes
imposed by a civil taxing unit to be used to fund:
(1) community mental health centers under:
(A) IC 12-29-2-1.2, for only those civil taxing units that
authorized financial assistance under IC 12-29-1 before 2002
for a community mental health center as long as the tax levy
under this section does not exceed the levy authorized in
2002;
P.L.182-2009(ss), SEC.128.
(B) IC 12-29-2-2 through IC 12-29-2-5; and
(C) IC 12-29-2-13; or
(2) community mental retardation and other developmental
disabilities centers under IC 12-29-1-1;
to the extent that those property taxes are attributable to any increase
in the assessed value of the civil taxing unit's taxable property caused
by a general reassessment of real property that took effect after
February 28, 1979.
(b) For purposes of computing the ad valorem property tax levy
limits imposed on a civil taxing unit by section 3 of this chapter, the
civil taxing unit's ad valorem property tax levy for a particular
calendar year does not include that part of the levy described in
subsection (a).
(c) This subsection applies to property taxes first due and payable
after December 31, 2008. Notwithstanding subsections (a) and (b) or
any other law, any property taxes imposed by a civil taxing unit that
are exempted by this section from the ad valorem property tax levy
limits imposed by section 3 of this chapter may not increase annually
by a percentage greater than the result of:
(1) the assessed value growth quotient determined under section
2 of this chapter; minus
(2) one (1).
(d) For a county that:
(1) did not impose an ad valorem property tax levy in 2008 for
the county general fund to provide financial assistance under
IC 12-29-1 (community mental retardation and other
developmental disabilities center) or IC 12-29-2 (community
mental health center); and
(2) determines for 2009 or a later calendar year to impose a levy
as described in subdivision (1);
the ad valorem property tax levy limits imposed under section 3 of
this chapter do not apply to the part of the county's general fund levy
that is used in the first calendar year for which a determination is
made under subdivision (2) to provide financial assistance under
IC 12-29-1 or IC 12-29-2. The department of local government
finance shall review a county's proposed budget that is submitted
under IC 12-29-1-1 or IC 12-29-2-1.2 and make a final determination
of the amount to which the levy limits do not apply under this
subsection for the first calendar year for which a determination is
made under subdivision (2).
(e) The ad valorem property tax levy limits imposed under section
3 of this chapter do not apply to the county's general fund levy in the
amount determined by the department of local government finance
under subsection (d) in each calendar year following the calendar
year for which the determination under subsection (b) is made.
As added by P.L.73-1983, SEC.1. Amended by P.L.2-1992, SEC.61;
P.L.24-1997, SEC.4; P.L.78-2004, SEC.2; P.L.146-2008, SEC.174;
IC 6-1.1-18.5-10.1
Exemption from levy limits; supplemental juror fees
Sec. 10.1. (a) The ad valorem property tax levy limits imposed by
section 3 of this chapter do not apply to ad valorem property taxes
imposed by a county, city, or town to supplemental juror fees
adopted under IC 33-37-10-1, to the extent provided in subsections
(b) and (c).
(b) Subject to subsection (c), for purposes of determining the
property tax levy limit imposed on a county, city, or town under
section 3 of this chapter, the county, city, or town's ad valorem
property tax levy for a calendar year does not include an amount
equal to:
(1) the average annual expenditures for nonsupplemental juror
fees under IC 33-37-10-1, using the five (5) most recent years
for which expenditure amounts are available; multiplied by
(2) the percentage increase in juror fees that is attributable to
supplemental juror fees under the most recent ordinance
adopted under IC 33-37-10-1.
(c) For property taxes first due and payable after December 31,
2008, property taxes may be excluded under subsection (b) from the
ad valorem property tax levy limits imposed by section 3 of this
chapter only to the extent that:
(1) the county fiscal body adopts a resolution approving some
or all of the property taxes that may be excluded by a city or
town under subsection (b), in the case of property taxes
imposed by a city or town; or
(2) the county fiscal body adopts a resolution:
(A) that approves some or all of the property taxes that may
be excluded by the county under subsection (b); and
(B) that explains why the exclusion under subsection (b) is
necessary and in the best interest of taxpayers;
in the case of property taxes imposed by the county.
In the case of a city or town located in more than one (1) county, the
exclusion under subsection (b) must be approved by the fiscal body
of the county in which the greatest part of the city's or town's net
assessed valuation is located.
As added by P.L.58-1988, SEC.1. Amended by P.L.98-2004, SEC.71;
P.L.146-2008, SEC.175.
IC 6-1.1-18.5-10.2
Taxes levied for township firefighting fund; treatment in
computation of levy limit
Sec. 10.2. For purposes of determining the property tax levy limit
imposed on a township under section 3 of this chapter, the township
ad valorem property tax levy for a particular calendar year does not
include the amount, if any, of ad valorem property taxes that would
be first due and payable to the township during the ensuing calendar
year under the authority of IC 36-8-13-4. The amount of ad valorem
property taxes levied by the township under the authority of
IC 36-8-13-4 shall, for purposes of the property tax levy limits
imposed under section 3 of this chapter, be treated as if that levy
were made by a separate civil taxing unit.
As added by P.L.343-1989(ss), SEC.1.
IC 6-1.1-18.5-10.3
Levy limit on taxes by library board for capital projects fund;
exemption
Sec. 10.3. (a) This subsection does not apply to property taxes
first due and payable after December 31, 2008. The ad valorem
property tax levy limits imposed by section 3 of this chapter do not
apply to ad valorem property taxes imposed by a library board for a
capital projects fund under IC 36-12-12. However, the maximum
amount that is exempt from the levy limits under this section may not
exceed the property taxes that would be raised in the ensuing
calendar year with a property tax rate of one and thirty-three
hundredths cents ($0.0133) per one hundred dollars ($100) of
assessed valuation.
(b) This subsection does not apply to property taxes first due and
payable after December 31, 2008. For purposes of computing the ad
valorem property tax levy limit imposed on a library board under
section 3 of this chapter, the library board's ad valorem property tax
levy for a particular calendar year does not include that part of the
levy imposed under IC 36-12-12 that is exempt from the ad valorem
property tax levy limits under subsection (a).
As added by P.L.35-1990, SEC.8. Amended by P.L.6-1997, SEC.83;
P.L.1-2005, SEC.88; P.L.231-2005, SEC.1; P.L.146-2008, SEC.176.
IC 6-1.1-18.5-10.4
Levy limit on taxes imposed by township; exemption
Sec. 10.4. (a) The ad valorem property tax levy limits imposed by
section 3 of this chapter do not apply to ad valorem property taxes
imposed by a township or a fire protection district under IC 36-8-14.
(b) For purposes of computing the ad valorem property tax levy
limit imposed on a township or a fire protection district under section
3 of this chapter, the township's or the fire protection district's ad
valorem property tax levy for a particular calendar year does not
include that part of the levy imposed under IC 36-8-14.
As added by P.L.35-1990, SEC.9. Amended by P.L.36-2000, SEC.1.
IC 6-1.1-18.5-10.5
Civil taxing unit levy limit exceptions related to fire protection
territories; levy growth limitation; department of local government
finance determination of budget, rate, and levy for civil taxing unit
that joins fire protection territory
Sec. 10.5. (a) The ad valorem property tax levy limits imposed by
section 3 of this chapter do not apply to ad valorem property taxes
imposed by a civil taxing unit for fire protection services within a
fire protection territory under IC 36-8-19, if the civil taxing unit is a
participating unit in a fire protection territory established before
August 1, 2001. For purposes of computing the ad valorem property
tax levy limits imposed on a civil taxing unit by section 3 of this
chapter on a civil taxing unit that is a participating unit in a fire
protection territory, established before August 1, 2001, the civil
taxing unit's ad valorem property tax levy for a particular calendar
year does not include that part of the levy imposed under IC 36-8-19.
Any property taxes imposed by a civil taxing unit that are exempted
by this subsection from the ad valorem property tax levy limits
imposed by section 3 of this chapter and first due and payable after
December 31, 2008, may not increase annually by a percentage
greater than the result of:
P.L.146-2008, SEC.177; P.L.182-2009(ss), SEC.129; P.L.113-2010,
SEC.32.
(1) the assessed value growth quotient determined under section
2 of this chapter; minus
(2) one (1).
(b) The department of local government finance may, under this
subsection, increase the maximum permissible ad valorem property
tax levy that would otherwise apply to a civil taxing unit under
section 3 of this chapter to meet the civil taxing unit's obligations to
a fire protection territory established under IC 36-8-19. To obtain an
increase in the civil taxing unit's maximum permissible ad valorem
property tax levy, a civil taxing unit shall submit a petition to the
department of local government finance in the year immediately
preceding the first year in which the civil taxing unit levies a tax to
support the fire protection territory. The petition must be filed before
the date specified in section 12(a)(1) of this chapter of that year. The
department of local government finance shall make a final
determination of the civil taxing unit's budget, ad valorem property
tax levy, and property tax rate for the fire protection territory for the
ensuing calendar year. In making its determination under this
subsection, the department of local government finance shall
consider the amount that the civil taxing unit is obligated to provide
to meet the expenses of operation and maintenance of the fire
protection services within the territory, including the participating
unit's reasonable share of an operating balance for the fire protection
territory. The department of local government finance shall
determine the entire amount of the allowable adjustment in the final
determination. The department shall order the adjustment
implemented in the amounts and over the number of years, not
exceeding three (3), requested by the petitioning civil taxing unit.
However, the department of local government finance may not
approve under this subsection a property tax levy greater than zero
(0) if the civil taxing unit did not exist as of the March 1 assessment
date for which the tax levy will be imposed. For purposes of applying
this subsection to the civil taxing unit's maximum permissible ad
valorem property tax levy in subsequent calendar years, the
department of local government finance may determine not to
consider part or all of the part of the property tax levy imposed to
establish the operating balance of the fire protection territory.
As added by P.L.37-1994, SEC.1. Amended by P.L.240-2001, SEC.1;
IC 6-1.1-18.5-11
Repealed
(Repealed by P.L.182-2009(ss), SEC.467.)
IC 6-1.1-18.5-12
Civil taxing unit appeal to department of local government finance
for relief from levy limits; department procedure and summons for
appearance or production of books and records
Sec. 12. (a) Any civil taxing unit that determines that it cannot
carry out its governmental functions for an ensuing calendar year
under the levy limitations imposed by section 3 of this chapter may:
(1) before October 20 of the calendar year immediately
preceding the ensuing calendar year; or
(2) in the case of a request described in section 16 of this
chapter, before December 31 of the calendar year immediately
preceding the ensuing calendar year;
appeal to the department of local government finance for relief from
those levy limitations. In the appeal the civil taxing unit must state
that it will be unable to carry out the governmental functions
committed to it by law unless it is given the authority that it is
petitioning for. The civil taxing unit must support these allegations
by reasonably detailed statements of fact.
(b) The department of local government finance shall immediately
proceed to the examination and consideration of the merits of the
civil taxing unit's appeal.
(c) In considering an appeal, the department of local government
finance has the power to conduct hearings, require any officer or
member of the appealing civil taxing unit to appear before it, or
require any officer or member of the appealing civil taxing unit to
provide the department with any relevant records or books.
(d) If an officer or member:
(1) fails to appear at a hearing after having been given written
notice requiring that person's attendance; or
(2) fails to produce the books and records that the department
by written notice required the officer or member to produce;
then the department may file an affidavit in the circuit court in the
jurisdiction in which the officer or member may be found setting
forth the facts of the failure.
(e) Upon the filing of an affidavit under subsection (d), the circuit
court shall promptly issue a summons, and the sheriff of the county
within which the circuit court is sitting shall serve the summons. The
summons must command the officer or member to appear before the
department to provide information to the department or to produce
books and records for the department's use, as the case may be.
Disobedience of the summons constitutes, and is punishable as, a
contempt of the circuit court that issued the summons.
(f) All expenses incident to the filing of an affidavit under
subsection (d) and the issuance and service of a summons shall be
charged to the officer or member against whom the summons is
issued, unless the circuit court finds that the officer or member was
acting in good faith and with reasonable cause. If the circuit court
finds that the officer or member was acting in good faith and with
reasonable cause or if an affidavit is filed and no summons is issued,
the expenses shall be charged against the county in which the
affidavit was filed and shall be allowed by the proper fiscal officers
of that county.
(g) The fiscal officer of a civil taxing unit that appeals under
section 16 of this chapter for relief from levy limitations shall
immediately file a copy of the appeal petition with the county auditor
and the county treasurer of the county in which the unit is located.
As added by P.L.73-1983, SEC.1. Amended by P.L.90-2002,
SEC.167; P.L.178-2002, SEC.27; P.L.23-2004, SEC.23;
P.L.67-2006, SEC.2; P.L.219-2007, SEC.56; P.L.224-2007, SEC.24;
P.L.3-2008, SEC.45; P.L.146-2008, SEC.179; P.L.182-2009(ss),
SEC.130.
IC 6-1.1-18.5-13
Types of relief available to civil taxing unit in appeal for relief from
levy limits
Sec. 13. With respect to an appeal filed under section 12 of this
chapter, the department may find that a civil taxing unit should
receive any one (1) or more of the following types of relief:
(1) Permission to the civil taxing unit to increase its levy in
excess of the limitations established under section 3 of this
chapter, if in the judgment of the department the increase is
reasonably necessary due to increased costs of the civil taxing
unit resulting from annexation, consolidation, or other
extensions of governmental services by the civil taxing unit to
additional geographic areas or persons. With respect to
annexation, consolidation, or other extensions of governmental
services in a calendar year, if those increased costs are incurred
by the civil taxing unit in that calendar year and more than one
(1) immediately succeeding calendar year, the unit may appeal
under section 12 of this chapter for permission to increase its
levy under this subdivision based on those increased costs in
any of the following:
(A) The first calendar year in which those costs are incurred.
(B) One (1) or more of the immediately succeeding four (4)
calendar years.
(2) A levy increase may not be granted under this subdivision
for property taxes first due and payable after December 31,
2008. Permission to the civil taxing unit to increase its levy in
excess of the limitations established under section 3 of this
chapter, if the local government tax control board finds that the
civil taxing unit needs the increase to meet the civil taxing unit's
share of the costs of operating a court established by statute
enacted after December 31, 1973. Before recommending such
an increase, the local government tax control board shall
consider all other revenues available to the civil taxing unit that
could be applied for that purpose. The maximum aggregate levy
increases that the local government tax control board may
recommend for a particular court equals the civil taxing unit's
estimate of the unit's share of the costs of operating a court for
the first full calendar year in which it is in existence. For
purposes of this subdivision, costs of operating a court include:
(A) the cost of personal services (including fringe benefits);
(B) the cost of supplies; and
(C) any other cost directly related to the operation of the
court.
(3) Permission to the civil taxing unit to increase its levy in
excess of the limitations established under section 3 of this
chapter, if the department finds that the quotient determined
under STEP SIX of the following formula is equal to or greater
than one and two-hundredths (1.02):
STEP ONE: Determine the three (3) calendar years that most
immediately precede the ensuing calendar year and in which
a statewide general reassessment of real property or the
initial annual adjustment of the assessed value of real
property under IC 6-1.1-4-4.5 does not first become
effective.
STEP TWO: Compute separately, for each of the calendar
years determined in STEP ONE, the quotient (rounded to the
nearest ten-thousandth (0.0001)) of the sum of the civil
taxing unit's total assessed value of all taxable property and:
(i) for a particular calendar year before 2007, the total
assessed value of property tax deductions in the unit under
IC 6-1.1-12-41 or IC 6-1.1-12-42 in the particular calendar
year; or
(ii) for a particular calendar year after 2006, the total
assessed value of property tax deductions that applied in
the unit under IC 6-1.1-12-42 in 2006 plus for a particular
calendar year after 2009, the total assessed value of
property tax deductions that applied in the unit under
IC 6-1.1-12-37.5 in 2008;
divided by the sum determined under this STEP for the
calendar year immediately preceding the particular calendar
year.
STEP THREE: Divide the sum of the three (3) quotients
computed in STEP TWO by three (3).
STEP FOUR: Compute separately, for each of the calendar
years determined in STEP ONE, the quotient (rounded to the
nearest ten-thousandth (0.0001)) of the sum of the total
assessed value of all taxable property in all counties and:
(i) for a particular calendar year before 2007, the total
assessed value of property tax deductions in all counties
under IC 6-1.1-12-41 or IC 6-1.1-12-42 in the particular
calendar year; or
(ii) for a particular calendar year after 2006, the total
assessed value of property tax deductions that applied in
all counties under IC 6-1.1-12-42 in 2006 plus for a
particular calendar year after 2009, the total assessed value
of property tax deductions that applied in the unit under
IC 6-1.1-12-37.5 in 2008;
divided by the sum determined under this STEP for the
calendar year immediately preceding the particular calendar
year.
STEP FIVE: Divide the sum of the three (3) quotients
computed in STEP FOUR by three (3).
STEP SIX: Divide the STEP THREE amount by the STEP
FIVE amount.
The civil taxing unit may increase its levy by a percentage not
greater than the percentage by which the STEP THREE amount
exceeds the percentage by which the civil taxing unit may
increase its levy under section 3 of this chapter based on the
assessed value growth quotient determined under section 2 of
this chapter.
(4) A levy increase may not be granted under this subdivision
for property taxes first due and payable after December 31,
2008. Permission to the civil taxing unit to increase its levy in
excess of the limitations established under section 3 of this
chapter, if the local government tax control board finds that the
civil taxing unit needs the increase to pay the costs of furnishing
fire protection for the civil taxing unit through a volunteer fire
department. For purposes of determining a township's need for
an increased levy, the local government tax control board shall
not consider the amount of money borrowed under IC 36-6-6-14
during the immediately preceding calendar year. However, any
increase in the amount of the civil taxing unit's levy
recommended by the local government tax control board under
this subdivision for the ensuing calendar year may not exceed
the lesser of:
(A) ten thousand dollars ($10,000); or
(B) twenty percent (20%) of:
(i) the amount authorized for operating expenses of a
volunteer fire department in the budget of the civil taxing
unit for the immediately preceding calendar year; plus
(ii) the amount of any additional appropriations authorized
during that calendar year for the civil taxing unit's use in
paying operating expenses of a volunteer fire department
under this chapter; minus
(iii) the amount of money borrowed under IC 36-6-6-14
during that calendar year for the civil taxing unit's use in
paying operating expenses of a volunteer fire department.
(5) A levy increase may not be granted under this subdivision
for property taxes first due and payable after December 31,
2008. Permission to a civil taxing unit to increase its levy in
excess of the limitations established under section 3 of this
chapter in order to raise revenues for pension payments and
contributions the civil taxing unit is required to make under
IC 36-8. The maximum increase in a civil taxing unit's levy that
may be recommended under this subdivision for an ensuing
calendar year equals the amount, if any, by which the pension
payments and contributions the civil taxing unit is required to
make under IC 36-8 during the ensuing calendar year exceeds
the product of one and one-tenth (1.1) multiplied by the pension
payments and contributions made by the civil taxing unit under
IC 36-8 during the calendar year that immediately precedes the
ensuing calendar year. For purposes of this subdivision,
"pension payments and contributions made by a civil taxing
unit" does not include that part of the payments or contributions
that are funded by distributions made to a civil taxing unit by
the state.
(6) A levy increase may not be granted under this subdivision
for property taxes first due and payable after December 31,
2008. Permission to increase its levy in excess of the limitations
established under section 3 of this chapter if the local
government tax control board finds that:
(A) the township's township assistance ad valorem property
tax rate is less than one and sixty-seven hundredths cents
($0.0167) per one hundred dollars ($100) of assessed
valuation; and
(B) the township needs the increase to meet the costs of
providing township assistance under IC 12-20 and
IC 12-30-4.
The maximum increase that the board may recommend for a
township is the levy that would result from an increase in the
township's township assistance ad valorem property tax rate of
one and sixty-seven hundredths cents ($0.0167) per one
hundred dollars ($100) of assessed valuation minus the
township's ad valorem property tax rate per one hundred dollars
($100) of assessed valuation before the increase.
(7) A levy increase may not be granted under this subdivision
for property taxes first due and payable after December 31,
2008. Permission to a civil taxing unit to increase its levy in
excess of the limitations established under section 3 of this
chapter if:
(A) the increase has been approved by the legislative body
of the municipality with the largest population where the
civil taxing unit provides public transportation services; and
(B) the local government tax control board finds that the
civil taxing unit needs the increase to provide adequate
public transportation services.
The local government tax control board shall consider tax rates
and levies in civil taxing units of comparable population, and
the effect (if any) of a loss of federal or other funds to the civil
taxing unit that might have been used for public transportation
purposes. However, the increase that the board may recommend
under this subdivision for a civil taxing unit may not exceed the
revenue that would be raised by the civil taxing unit based on
a property tax rate of one cent ($0.01) per one hundred dollars
($100) of assessed valuation.
(8) A levy increase may not be granted under this subdivision
for property taxes first due and payable after December 31,
2008. Permission to a civil taxing unit to increase the unit's levy
in excess of the limitations established under section 3 of this
chapter if the local government tax control board finds that:
(A) the civil taxing unit is:
(i) a county having a population of more than one hundred
forty-eight thousand (148,000) but less than one hundred
seventy thousand (170,000);
(ii) a city having a population of more than fifty-five
thousand (55,000) but less than fifty-nine thousand
(59,000);
(iii) a city having a population of more than twenty-eight
thousand seven hundred (28,700) but less than twenty-nine
thousand (29,000);
(iv) a city having a population of more than fifteen
thousand four hundred (15,400) but less than sixteen
thousand six hundred (16,600); or
(v) a city having a population of more than seven thousand
(7,000) but less than seven thousand three hundred
(7,300); and
(B) the increase is necessary to provide funding to undertake
removal (as defined in IC 13-11-2-187) and remedial action
(as defined in IC 13-11-2-185) relating to hazardous
substances (as defined in IC 13-11-2-98) in solid waste
disposal facilities or industrial sites in the civil taxing unit
that have become a menace to the public health and welfare.
The maximum increase that the local government tax control
board may recommend for such a civil taxing unit is the levy
that would result from a property tax rate of six and sixty-seven
hundredths cents ($0.0667) for each one hundred dollars ($100)
of assessed valuation. For purposes of computing the ad
valorem property tax levy limit imposed on a civil taxing unit
under section 3 of this chapter, the civil taxing unit's ad valorem
property tax levy for a particular year does not include that part
of the levy imposed under this subdivision. In addition, a
property tax increase permitted under this subdivision may be
imposed for only two (2) calendar years.
(9) A levy increase may not be granted under this subdivision
for property taxes first due and payable after December 31,
2008. Permission for a county:
(A) having a population of more than eighty thousand
(80,000) but less than ninety thousand (90,000) to increase
the county's levy in excess of the limitations established
under section 3 of this chapter, if the local government tax
control board finds that the county needs the increase to
meet the county's share of the costs of operating a jail or
juvenile detention center, including expansion of the facility,
if the jail or juvenile detention center is opened after
December 31, 1991;
(B) that operates a county jail or juvenile detention center
that is subject to an order that:
(i) was issued by a federal district court; and
(ii) has not been terminated;
(C) that operates a county jail that fails to meet:
(i) American Correctional Association Jail Construction
Standards; and
(ii) Indiana jail operation standards adopted by the
department of correction; or
(D) that operates a juvenile detention center that fails to
meet standards equivalent to the standards described in
clause (C) for the operation of juvenile detention centers.
Before recommending an increase, the local government tax
control board shall consider all other revenues available to the
county that could be applied for that purpose. An appeal for
operating funds for a jail or a juvenile detention center shall be
considered individually, if a jail and juvenile detention center
are both opened in one (1) county. The maximum aggregate
levy increases that the local government tax control board may
recommend for a county equals the county's share of the costs
of operating the jail or a juvenile detention center for the first
full calendar year in which the jail or juvenile detention center
is in operation.
(10) A levy increase may not be granted under this subdivision
for property taxes first due and payable after December 31,
2008. Permission for a township to increase its levy in excess
of the limitations established under section 3 of this chapter, if
the local government tax control board finds that the township
needs the increase so that the property tax rate to pay the costs
of furnishing fire protection for a township, or a portion of a
township, enables the township to pay a fair and reasonable
amount under a contract with the municipality that is furnishing
the fire protection. However, for the first time an appeal is
granted the resulting rate increase may not exceed fifty percent
(50%) of the difference between the rate imposed for fire
protection within the municipality that is providing the fire
protection to the township and the township's rate. A township
is required to appeal a second time for an increase under this
subdivision if the township wants to further increase its rate.
However, a township's rate may be increased to equal but may
not exceed the rate that is used by the municipality. More than
one (1) township served by the same municipality may use this
appeal.
(11) A levy increase may not be granted under this subdivision
for property taxes first due and payable after December 31,
2008. Permission for a township to increase its levy in excess
of the limitations established under section 3 of this chapter, if
the local government tax control board finds that the township
has been required, for the three (3) consecutive years preceding
the year for which the appeal under this subdivision is to
become effective, to borrow funds under IC 36-6-6-14 to
furnish fire protection for the township or a part of the
township. However, the maximum increase in a township's levy
that may be allowed under this subdivision is the least of the
amounts borrowed under IC 36-6-6-14 during the preceding
three (3) calendar years. A township may elect to phase in an
approved increase in its levy under this subdivision over a
period not to exceed three (3) years. A particular township may
appeal to increase its levy under this section not more
frequently than every fourth calendar year.
(12) Permission to a city having a population of more than
twenty-nine thousand (29,000) but less than thirty-one thousand
(31,000) to increase its levy in excess of the limitations
established under section 3 of this chapter if:
(A) an appeal was granted to the city under this section to
reallocate property tax replacement credits under
IC 6-3.5-1.1 in 1998, 1999, and 2000; and
(B) the increase has been approved by the legislative body
of the city, and the legislative body of the city has by
resolution determined that the increase is necessary to pay
normal operating expenses.
The maximum amount of the increase is equal to the amount of
property tax replacement credits under IC 6-3.5-1.1 that the city
petitioned under this section to have reallocated in 2001 for a
purpose other than property tax relief.
(13) A levy increase may be granted under this subdivision only
for property taxes first due and payable after December 31,
2008. Permission to a civil taxing unit to increase its levy in
excess of the limitations established under section 3 of this
chapter if the civil taxing unit cannot carry out its governmental
functions for an ensuing calendar year under the levy
limitations imposed by section 3 of this chapter due to a natural
disaster, an accident, or another unanticipated emergency.
As added by P.L.73-1983, SEC.1. Amended by P.L.74-1983, SEC.1;
P.L.44-1984, SEC.4; P.L.24-1986, SEC.17; P.L.83-1987, SEC.1;
P.L.84-1987, SEC.1; P.L.54-1988, SEC.3; P.L.35-1990, SEC.10;
P.L.2-1992, SEC.62; P.L.12-1992, SEC.20; P.L.1-1993, SEC.29;
P.L.67-1993, SEC.1; P.L.66-1993, SEC.1; P.L.25-1995, SEC.31;
P.L.87-1995, SEC.1; P.L.6-1997, SEC.85; P.L.181-2001, SEC.1;
P.L.198-2001, SEC.55; P.L.1-2002, SEC.22; P.L.89-2002, SEC.1;
P.L.192-2002(ss), SEC.37; P.L.256-2003, SEC.18; P.L.245-2003,
SEC.16; P.L.224-2003, SEC.246; P.L.1-2004, SEC.22 and
P.L.23-2004, SEC.24; P.L.73-2005, SEC.4; P.L.80-2006, SEC.1;
P.L.154-2006, SEC.47; P.L.196-2007, SEC.2; P.L.224-2007,
SEC.25; P.L.3-2008, SEC.46; P.L.146-2008, SEC.180;
P.L.182-2009(ss), SEC.131.
IC 6-1.1-18.5-13.3
Repealed
(Repealed by P.L.83-1987, SEC.2.)
IC 6-1.1-18.5-13.5
Limit on amount of levy appeal relief for certain towns for the cost
of furnishing fire protection
Sec. 13.5. A levy increase may not be granted under this section
for property taxes first due and payable after December 31, 2009.
With respect to an appeal filed under section 12 of this chapter, the
department of local government finance may give permission to a
town having a population of more than three hundred seventy-five
(375) but less than five hundred (500) located in a county having a
population of more than seventy-one thousand (71,000) but less than
seventy-one thousand four hundred (71,400) to increase its levy in
excess of the limitations established under section 3 of this chapter,
if the department finds that the town needs the increase to pay the
costs of furnishing fire protection for the town. However, any
increase in the amount of the town's levy under this section for the
ensuing calendar year may not exceed the greater of:
(1) twenty-five thousand dollars ($25,000); or
(2) twenty percent (20%) of the sum of:
(A) the amount authorized for the cost of furnishing fire
protection in the town's budget for the immediately
preceding calendar year; plus
(B) the amount of any additional appropriations authorized
under IC 6-1.1-18-5 during that calendar year for the town's
use in paying the costs of furnishing fire protection.
As added by P.L.60-1986, SEC.2. Amended by P.L.12-1992, SEC.21;
P.L.25-1995, SEC.32; P.L.90-2002, SEC.168; P.L.224-2007,
SEC.26; P.L.182-2009(ss), SEC.132.
IC 6-1.1-18.5-13.6
Civil taxing unit appeal to department of local government finance
for relief from levy limits related to voting systems
Sec. 13.6. A levy increase may not be granted under this section
for property taxes first due and payable after December 31, 2008. For
an appeal filed under section 12 of this chapter, the department of
local government finance may give permission to a county to
increase its levy in excess of the limitations established under section
3 of this chapter if the department finds that the county needs the
increase to pay for:
(1) a new voting system; or
(2) the expansion or upgrade of an existing voting system;
under IC 3-11-6.
As added by P.L.178-2002, SEC.28. Amended by P.L.224-2007,
SEC.27; P.L.146-2008, SEC.181; P.L.182-2009(ss), SEC.133.
IC 6-1.1-18.5-14
and rate errors
Department of local government finance correction of certain levy
(b) A correction made under subsection (a) for a prior calendar
year shall be applied to the civil taxing unit's levy limitations, rate,
and levy for the ensuing calendar year to offset any cumulative effect
that the error caused in the determination of the civil taxing unit's
levy limitations, rate, or levy for the ensuing calendar year.
As added by P.L.73-1983, SEC.1. Amended by P.L.90-2002,
SEC.169; P.L.224-2007, SEC.28; P.L.146-2008, SEC.182;
P.L.182-2009(ss), SEC.134.
IC 6-1.1-18.5-15
Judicial review of department of local government finance
correction of certain levy and rate errors
Sec. 15. (a) The department of local government finance, upon
making a finding under section 13 or 14 of this chapter, shall enter
an order setting forth its final determination.
(b) A civil taxing unit may petition for judicial review of the final
determination made by the department of local government finance
under subsection (a). The action must be taken to the tax court under
IC 6-1.1-15 in the same manner that an action is taken to appeal a
final determination of the Indiana board. The petition must be filed
in the tax court not more than forty-five (45) days after the
department enters its order under subsection (a).
As added by P.L.73-1983, SEC.1. Amended by P.L.90-2002,
SEC.170; P.L.256-2003, SEC.19; P.L.224-2007, SEC.29;
P.L.146-2008, SEC.183; P.L.182-2009(ss), SEC.135.
IC 6-1.1-18.5-16
Civil taxing unit appeal to department of local government finance
for relief from levy limits related to revenue shortfall related to
erroneous assessed valuation
Sec. 16. (a) A civil taxing unit may request permission from the
department to impose an ad valorem property tax levy that exceeds
the limits imposed by section 3 of this chapter if:
(1) the civil taxing unit experienced a property tax revenue
shortfall that resulted from erroneous assessed valuation figures
being provided to the civil taxing unit;
(2) the erroneous assessed valuation figures were used by the
civil taxing unit in determining its total property tax rate; and
(3) the error in the assessed valuation figures was found after
the civil taxing unit's property tax levy resulting from that total
rate was finally approved by the department of local
government finance.
(b) A civil taxing unit may request permission from the
department to impose an ad valorem property tax levy that exceeds
the limits imposed by section 3 of this chapter if the civil taxing unit
experienced a property tax revenue shortfall because of the payment
of refunds that resulted from appeals under this article and IC 6-1.5.
(c) If the department determines that a shortfall described in
subsection (a) or (b) has occurred, the department of local
government finance may find that the civil taxing unit should be
allowed to impose a property tax levy exceeding the limit imposed
by section 3 of this chapter. However, the maximum amount by
which the civil taxing unit's levy may be increased over the limits
imposed by section 3 of this chapter equals the remainder of the civil
taxing unit's property tax levy for the particular calendar year as
finally approved by the department of local government finance
minus the actual property tax levy collected by the civil taxing unit
for that particular calendar year.
(d) Any property taxes collected by a civil taxing unit over the
limits imposed by section 3 of this chapter under the authority of this
section may not be treated as a part of the civil taxing unit's
maximum permissible ad valorem property tax levy for purposes of
determining its maximum permissible ad valorem property tax levy
for future years.
(e) If the department of local government finance authorizes an
excess tax levy under this section, it shall take appropriate steps to
insure that the proceeds are first used to repay any loan made to the
civil taxing unit for the purpose of meeting its current expenses.
As added by P.L.73-1983, SEC.1. Amended by P.L.90-2002,
SEC.171; P.L.1-2004, SEC.23 and P.L.23-2004, SEC.25;
P.L.224-2007, SEC.30; P.L.146-2008, SEC.184; P.L.182-2009(ss),
SEC.136.
IC 6-1.1-18.5-17
Civil taxing unit levy excess fund; use of fund
Sec. 17. (a) As used in this section, "levy excess" means the part
of the ad valorem property tax levy actually collected by a civil
taxing unit, for taxes first due and payable during a particular
calendar year, that exceeds the civil taxing unit's ad valorem property
tax levy, as approved by the department of local government finance
under IC 6-1.1-17. The term does not include delinquent ad valorem
property taxes collected during a particular year that were assessed
for an assessment date that precedes the assessment date for the
current year in which the ad valorem property taxes are collected.
(b) A civil taxing unit's levy excess is valid and may not be
contested on the grounds that it exceeds the civil taxing unit's levy
limit for the applicable calendar year. However, the civil taxing unit
shall deposit, except as provided in subsections (h) and (i), its levy
excess in a special fund to be known as the civil taxing unit's levy
excess fund.
(c) The chief fiscal officer of a civil taxing unit may invest money
in the civil taxing unit's levy excess fund in the same manner in
which money in the civil taxing unit's general fund may be invested.
However, any income derived from investment of the money shall be
deposited in and becomes a part of the levy excess fund.
(d) The department of local government finance shall require a
civil taxing unit to include the amount in its levy excess fund in the
civil taxing unit's budget fixed under IC 6-1.1-17.
(e) Except as provided by subsection (f), a civil taxing unit may
not spend any money in its levy excess fund until the expenditure of
the money has been included in a budget that has been approved by
the department of local government finance under IC 6-1.1-17. For
purposes of fixing its budget and for purposes of the ad valorem
property tax levy limits imposed under this chapter, a civil taxing
unit shall treat the money in its levy excess fund that the department
of local government finance permits it to spend during a particular
calendar year as part of its ad valorem property tax levy for that same
calendar year.
(f) A civil taxing unit may transfer money from its levy excess
fund to its other funds to reimburse those funds for amounts withheld
from the civil taxing unit as a result of refunds paid under
IC 6-1.1-26.
(g) Subject to the limitations imposed by this section, a civil
taxing unit may use money in its levy excess fund for any lawful
purpose for which money in any of its other funds may be used.
(h) If the amount that would, notwithstanding this subsection, be
deposited in the levy excess fund of a civil taxing unit for a particular
calendar year is less than one hundred dollars ($100), no money shall
be deposited in the levy excess fund of the unit for that year.
(i) This subsection applies only to a civil taxing unit that:
(1) has a levy excess for a particular calendar year;
(2) in the preceding calendar year experienced a shortfall in
property tax collections below the civil taxing unit's property
tax levy approved by the department of local government
finance under IC 6-1.1-17; and
(3) did not receive permission from the department to impose,
because of the shortfall in property tax collections in the
preceding calendar year, a property tax levy that exceeds the
limits imposed by section 3 of this chapter.
The amount that a civil taxing unit subject to this subsection must
transfer to the civil taxing unit's levy excess fund in the calendar year
in which the excess is collected shall be reduced by the amount of
the civil taxing unit's shortfall in property tax collections in the
preceding calendar year (but the reduction may not exceed the
amount of the civil taxing unit's levy excess).
As added by P.L.73-1983, SEC.1. Amended by P.L.64-1985, SEC.1;
P.L.90-2002, SEC.172; P.L.23-2004, SEC.26 and P.L.1-2004,
SEC.24; P.L.154-2006, SEC.48; P.L.219-2007, SEC.57;
P.L.182-2009(ss), SEC.137.
IC 6-1.1-18.5-18
Citation to prior law; continued effect of rules
Sec. 18. (a) If a provision of the prior property tax control law for
civil taxing units (IC 6-3.5-1) has been replaced in the same form or
in a restated form by a provision of this chapter, then a citation to the
provision of the prior law shall be construed as a citation to the
corresponding provision of this chapter.
(b) Any rule adopted under, and applicable to, the prior property
tax control law for civil taxing units (IC 6-3.5-1) continues in effect
under this article if the provisions under which it was adopted and to
which it was applicable were replaced, in the same or restated form,
by corresponding provisions of this chapter.
As added by P.L.73-1983, SEC.1.
IC 6-1.1-18.5-19
Levy limit on taxes for township firefighting fund
Sec. 19. (a) If a township levied an ad valorem property tax levy
for a township firefighting fund under IC 36-8-13-4 for calendar year
1989, the maximum permissible ad valorem property tax levy that
will apply to the township's firefighting fund under section 3 of this
chapter for calendar year 1990 is the amount determined in STEP
FIVE of the following STEPS:
STEP ONE: Determine the part of the township's ad valorem
property tax levy for calendar year 1989 that was dedicated to
the township firefighting fund.
STEP TWO: If the township incurred any loans or bonded
indebtedness to pay for fire protection or emergency services
during the period from January 1, 1987, through December 31,
1989 (excluding loans or bonded indebtedness used to purchase
firefighting apparatus or equipment or housing), determine the
number of calendar years during that period in which the
township incurred the loans or bonded indebtedness.
STEP THREE: Calculate the quotient of:
(A) the total amounts of loans or bonded indebtedness
incurred by the township for fire protection and emergency
services during the period from January 1, 1987, through
December 31, 1989 (excluding loans or bonded indebtedness
used to purchase firefighting apparatus or equipment or
housing); divided by
(B) the number determined in STEP TWO.
STEP FOUR: Add the result determined in STEP ONE to the
result determined in STEP THREE.
STEP FIVE: Calculate the maximum ad valorem property tax
levy that would result from making the calculations contained
in section 3 of this chapter as those calculations apply to the
township, using the result obtained in STEP FOUR for the civil
taxing unit's maximum permissible ad valorem property tax levy
for the preceding calendar year under section 3(a) or 3(b) of this
chapter, whichever applies to the township.
If the amount determined under this subsection is substantially lower
than the township's normal expenditure patterns for fire protection
and emergency services (excluding the expenditures for the purchase
of firefighting apparatus or equipment or housing), the township may
appeal to the local government tax control board for an increase in
the 1990 maximum permissible ad valorem property tax levy for its
township firefighting fund. In considering the appeal, the local
government tax control board shall consider other sources of revenue
used by the township during calendar year 1989 to fund fire
protection and emergency services that are also available for such
funding in 1990 and thereafter and the board shall also consider any
other relevant factors.
(b) If a township did not have a township firefighting fund under
IC 36-8-13-4 for calendar year 1989, but appropriated funds for fire
protection or emergency services for that calendar year, the
township's maximum ad valorem property tax levy that will apply to
the township's firefighting fund under section 3 of this chapter for
calendar year 1990 is the amount determined in STEP FIVE of the
following STEPS:
STEP ONE: Determine the amount that the township
appropriated from its general fund for fire protection and
emergency services (excluding appropriations for the purchase
of firefighting apparatus or equipment or housing).
STEP TWO: If the township incurred any loans or bonded
indebtedness to pay for fire protection or emergency services
during the period from January 1, 1987, through December 31,
1989 (excluding loans or bonded indebtedness used to purchase
firefighting apparatus or equipment or housing), determine the
number of calendar years during that period in which the
township incurred the loans or bonded indebtedness.
STEP THREE: Calculate the quotient of:
(A) the total amounts of loans or bonded indebtedness
incurred by the township for fire protection and emergency
services during the period from January 1, 1987, through
December 31, 1989 (excluding loans or bonded indebtedness
used to purchase firefighting apparatus or equipment or
housing); divided by
(B) the number determined in STEP TWO.
STEP FOUR: Add the result of STEP ONE to the result of
STEP THREE.
STEP FIVE: Calculate the maximum ad valorem property tax
levy that would result from making the calculations contained
in section 3 of this chapter, as those calculations apply to the
township, using the result obtained in STEP FOUR for the civil
taxing unit's maximum permissible ad valorem property tax levy
for the preceding calendar year under section 3(a) or 3(b) of this
chapter, whichever applies to the township.
If the amount determined under this subsection is substantially lower
than the township's normal expenditure patterns for fire protection
and emergency services (excluding the expenditures for the purchase
of firefighting apparatus or equipment or housing), the township may
appeal to the local government tax control board for an increase in
its 1990 maximum permissible levy for its township firefighting
fund. In considering the appeal, the local government tax control
board shall consider other sources of revenue used by the township
during calendar year 1989 to fund fire protection and emergency
services that are also available for such funding in 1990 and
thereafter and the board shall also consider any other relevant
factors.
(c) If for calendar year 1989:
(1) a township had a township firefighting fund under
IC 36-8-13-4 but did not have an ad valorem property tax levy
for that fund; or
(2) a township did not have a township firefighting fund and
appropriated no money for fire protection or emergency
services;
the township's maximum permissible ad valorem property tax levy
for its township firefighting fund shall be determined under section
7 of this chapter in the calendar year in which the township first
establishes such a levy.
As added by P.L.343-1989(ss), SEC.2.
IC 6-1.1-18.5-19.1
Tax levy limits imposed by IC 6-1.1-18.5-3; bank personal property
Sec. 19.1. (a) The ad valorem property tax levy limits imposed by
section 3 of this chapter do not apply to ad valorem property taxes
imposed on personal property of banks that became subject to
assessment in 1989 and thereafter because of IC 6-1.1-2-7.
(b) For purposes of computing the ad valorem property tax levy
limits imposed under section 3 of this chapter, a civil taxing unit's ad
valorem property tax levy for a particular calendar year does not
include that part of the levy imposed on bank personal property as
provided in subsection (a).
As added by P.L.347-1989(ss), SEC.3. Amended by P.L.1-1990,
SEC.72.
IC 6-1.1-18.5-20
Exemption from levy limits; local airport authorities
Sec. 20. (a) The ad valorem property tax levy limits imposed by
section 3 of this chapter do not apply to ad valorem property taxes
imposed by a local airport authority under IC 8-22-3-25 for a
cumulative building fund.
(b) For purposes of computing the ad valorem property tax levy
limits imposed on a civil taxing unit by section 3 of this chapter, a
local airport authority's ad valorem property tax levy for a calendar
year does not include that part of its levy that is levied under
IC 8-22-3-25 for a cumulative building fund.
As added by P.L.19-1994, SEC.2.
IC 6-1.1-18.5-21
Civil taxing unit's determination that levy limits do not apply to
taxes to repay certain rainy day fund loans
Sec. 21. A civil taxing unit may determine that the ad valorem
property tax levy limits imposed by section 3 of this chapter do not
apply to all or part of the ad valorem property taxes imposed to repay
a loan under either or both of the following:
(1) IC 6-1.1-21.3.
(2) IC 6-1.1-21.9.
As added by P.L.114-2006, SEC.1. Amended by P.L.182-2009(ss),
SEC.138.
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