2018 Indiana Code
TITLE 6. Taxation
ARTICLE 1.1. PROPERTY TAXES
CHAPTER 17. Procedures for Fixing and Reviewing Budgets, Tax Rates, and Tax Levies
6-1.1-17-22. Operating balance in debt service fund
Sec. 22. (a) In determining the amount of the levy for a debt service fund for a budget year, the maximum amount allowed for an operating balance in the debt service fund is the sum of the maximum allowable operating balance for each debt included in the debt service fund. The maximum allowable operating balance for an individual debt shall be calculated as follows:
(1) For debt originally incurred after June 30, 2014, the lesser of:
(A) fifteen percent (15%) of the budget estimate for the debt for the year after the budget year; or
(B) the debt payment to be made in the first six (6) months of the year after the budget year.
(2) For debt originally incurred before July 1, 2014, the lesser of:
(A) fifty percent (50%) of the budget estimate for the debt for the year after the budget year; or
(B) the debt payment to be made in the first six (6) months of the year after the budget year.
If debt is refinanced, the date the refinanced debt was originally incurred, and not the date that the refinancing is closed, is the date to be used for purposes of this subsection.
(b) For purposes of IC 6-1.1-20.6-9.5, the property taxes allowed for an operating balance in the debt service fund under this section may not be construed as an increase in a political subdivision's property tax levy to make up for a reduction in property tax collections resulting from the application of credits under IC 6-1.1-20.6.
As added by P.L.120-2014, SEC.2. Amended by P.L.148-2015, SEC.16.
