2018 Indiana Code
TITLE 6. Taxation
ARTICLE 1.1. PROPERTY TAXES
CHAPTER 20.6. Credit for Excessive Property Taxes
6-1.1-20.6-9.9. Allocation of credits by eligible school corporations
Sec. 9.9. (a) If:
(1) a school corporation in 2017, 2018, or 2019 issues new bonds or enters into a new lease rental agreement for which the school corporation is imposing or will impose a debt service levy other than:
(A) to refinance or renew prior bond or lease rental obligations existing before January 1, 2017; or
(B) indebtedness that is approved in a local public question or referendum under IC 6-1.1-20 or any other law; and
(2) the school corporation's:
(A) total debt service levy in 2018 or 2019 is greater than the school corporation's total debt service levy in 2016; and
(B) total debt service tax rate in 2018 or 2019 is greater than the school corporation's total debt service tax rate in 2016;
the school corporation is not eligible to allocate credits proportionately under this section.
(b) Subject to subsection (a), a school corporation is eligible to allocate credits proportionately under this section for 2016, 2017, 2018, or 2019 if the school corporation's percentage computed under this subsection is at least ten percent (10%) for its transportation fund levy for that year (for 2017 and 2018) or operations fund levy after 2018, as certified by the department of local government finance. A school corporation shall compute its percentage under this subsection as follows:
(1) Compute the amount of credits granted under this chapter against the school corporation's levy for the school corporation's transportation fund (for 2017 and 2018) or operations fund after 2018.
(2) Compute the school corporation's levy for the school corporation's transportation fund (for 2017 and 2018) or operations fund levy after 2018.
(3) Divide the amount computed under subdivision (1) by the amount computed under subdivision (2) and express it as a percentage.
The computation must be made by taking into account the requirements of section 9.8 of this chapter regarding protected taxes and the impact of credits granted under this chapter on the revenue to be distributed to the school corporation's transportation fund (for 2017 and 2018) or operations fund after 2018 for the particular year.
(c) A school corporation that desires to be an eligible school corporation under this section must, before May 1 of the year for which it wants a determination, submit a written request for a certification by the department of local government finance that the computation of the school corporation's percentage under subsection (b) is correct. The department of local government finance shall, not later than June 1 of that year, determine whether the percentage computed by the school corporation is accurate and certify whether the school corporation is eligible under this section.
(d) For a school corporation that is certified as eligible under this section, the school corporation may allocate the effect of the credits granted under this chapter proportionately among all the school corporation's property tax funds that are not exempt under section 7.5(b) or 7.5(c) of this chapter, based on the levy for each fund and without taking into account the requirements of section 9.8 of this chapter regarding protected taxes.
As added by P.L.120-2014, SEC.3. Amended by P.L.151-2016, SEC.1; P.L.244-2017, SEC.13.
