CHAPTER 8. SUPPLEMENTAL COUNTY LEVY; DEARBORN COUNTY
IC 20-45-8
Chapter 8. Supplemental County Levy; Dearborn County
IC 20-45-8-1
Application
Sec. 1. This chapter applies only to Dearborn County. Thischapter applies to an area outside Dearborn County to the extent thatthe area is part of a qualified school corporation.
As added by P.L.2-2006, SEC.168.
IC 20-45-8-2
Policy
Sec. 2. The following is declared to be the policy of this chapter:
(1) That in certain areas in Indiana there exists a conditioncreated by the large concentration of taxable property in asingle township away from outlying areas that has createdadministrative and financial problems in the maintenance andoperation of school systems in those areas, resulting inmaladjustment of taxable wealth in such areas for levying taxesfor the operation of the schools.
(2) That improvement in the administrative and financialstructures of the qualified school corporations existing onMarch 12, 1965, in those outlying areas is essential for:
(A) the establishment and maintenance of a general uniformand efficient system of public schools to provide a moreequalized educational opportunity for public school pupils;
(B) the achievement of greater equity in school tax ratesamong the inhabitants of the various qualified schoolcorporations existing on March 12, 1965, in these areas; and
(C) the provision for more use of the public funds expendedfor the support of the public school systems.
(3) That statutes existing on March 12, 1965, with respect to thegranting of financial assistance on a countywide school basis,allowing a more favorable use of the taxable wealth of thecounty for the support of the various school districts within orattached to the county, are inadequate to effectuate the need forthis improvement in those areas described in this chapter.
(4) That modification in the statutory provisions existing onMarch 12, 1965, pertaining to the levying of tax rates for schoolpurposes for those areas that qualify within the definitions inthis chapter is essential to carry out the purposes of IC 20-23-4,and the tax levied under this chapter shall be considered acounty tax within the meaning of IC 20-23-4, and to that end itis the intent of the general assembly, by this chapter, to makeprovision for a more satisfactory use of the taxable wealth ofcounties that qualify under this chapter for the promotion,betterment, and improvement of their educational systems.
As added by P.L.2-2006, SEC.168.
IC 20-45-8-3 "Assessed valuation"
Sec. 3. As used in this chapter, "assessed valuation" of anyqualified school corporation means the net assessed value of its realand taxable personal property adjusted by a percentage factor. Thisfactor shall be computed by the department of local governmentfinance on a townshipwide basis for each township in the qualifiedcounty and areas assigned to the qualified county for school purposesin the same manner that the department of local government financecomputes a factor for the various counties of the state underIC 6-1.1-34. In determining the assessed valuation of any qualifiedschool corporation, the factor for any township shall be applied tothe assessed valuation of the real and taxable personal property ofeach qualified school corporation lying within the township andschool areas attached to the township.
As added by P.L.2-2006, SEC.168.
IC 20-45-8-4
"Board of county commissioners"
Sec. 4. As used in this chapter, "board of county commissioners"refers to the board of county commissioners of a qualified county.
As added by P.L.2-2006, SEC.168.
IC 20-45-8-5
"County auditor"
Sec. 5. As used in this chapter, "county auditor" means the countyauditor of a qualified county.
As added by P.L.2-2006, SEC.168.
IC 20-45-8-6
"Fund"
Sec. 6. As used in this chapter, "fund" means the county schooldistribution fund:
(1) into which the receipts from the tax must be credited; and
(2) from which distribution to a qualified school corporationmust be charged.
As added by P.L.2-2006, SEC.168.
IC 20-45-8-7
"Entitlement"
Sec. 7. As used in this chapter, "entitlement" of a qualified schoolcorporation is that part of the fund:
(1) to which a qualified school corporation is entitled for anycalendar year; and
(2) on the basis of which the tax is set under this chapter.
As added by P.L.2-2006, SEC.168.
IC 20-45-8-8
"Paying qualified school corporation"
Sec. 8. As used in this chapter, "paying qualified schoolcorporation" means any qualified school corporation in which the tax
collected on the assessed valuation of the qualified schoolcorporation exceeds the amount of the entitlement payable to thequalified school corporation under this chapter.
As added by P.L.2-2006, SEC.168.
IC 20-45-8-9
"Qualified county"
Sec. 9. As used in this chapter, "qualified county" refers toDearborn County. The term includes any area attached to DearbornCounty for school purposes.
As added by P.L.2-2006, SEC.168.
IC 20-45-8-10
"Qualified school corporation"
Sec. 10. As used in this chapter, "qualified school corporation"means a school corporation that has under its jurisdiction anyterritory that is located in the qualified county.
As added by P.L.2-2006, SEC.168.
IC 20-45-8-11
"Receiving qualified school corporation"
Sec. 11. As used in this chapter, "receiving qualified schoolcorporation" means any qualified school corporation receiving anentitlement under this chapter that exceeds the amount of the taxcollected on the assessed valuation of the qualified schoolcorporation.
As added by P.L.2-2006, SEC.168.
IC 20-45-8-12
"Tax"
Sec. 12. As used in this chapter, "tax" means the countysupplemental school financing property tax to be levied by the boardof county commissioners of a qualifying county under this chapter.
As added by P.L.2-2006, SEC.168.
IC 20-45-8-13
"Total school tax rate"
Sec. 13. "Total school tax rate" means the sum of the property taxrates levied for all school purposes.
As added by P.L.2-2006, SEC.168.
IC 20-45-8-14
Establishment of fund
Sec. 14. A county school distribution fund is established in aqualified county.
As added by P.L.2-2006, SEC.168.
IC 20-45-8-15
Appropriation
Sec. 15. There shall be appropriated from the fund to qualified
school corporations, in the manner provided in this chapter,sufficient amounts of money to achieve the purposes of this chapter.
As added by P.L.2-2006, SEC.168.
IC 20-45-8-16
Duty; levy of countywide tax
Sec. 16. (a) The board of county commissioners shall levy acounty supplemental school financing tax at a rate that is sufficientto annually provide adequate funds to carry out the purposes of thischapter. The various officials and employees of the qualified countyand the qualified school corporations charged with the duty oflevying, collecting, and receiving other property tax funds for countyor school purposes, or both, shall take the appropriate and respectivesteps as otherwise required by law for the levying, collecting, andreceiving of property taxes in order to levy, collect, and receive thetax.
(b) The receipts from the tax shall be credited into the fund andpaid from the fund by the county auditor to the qualified schoolcorporations.
As added by P.L.2-2006, SEC.168.
IC 20-45-8-17
Levy in contiguous area of adjacent county
Sec. 17. If the area of a qualified school corporation extends intoan adjoining county, the tax rate fixed by the board of countycommissioners shall control for the levying and assessment of the taxin the area extending into the adjoining county. The board of countycommissioners and other county officials of the adjoining countyshall take all appropriate and necessary action as otherwise requiredby law for:
(1) the levying, collecting, and receiving of the countysupplemental school financing taxes; and
(2) the payment of the taxes into the fund;
for distribution under this chapter.
As added by P.L.2-2006, SEC.168.
IC 20-45-8-18
Certification; information needed to calculate levy
Sec. 18. (a) Before July 11 of each year, the state superintendentshall deliver to the county auditor a certified statement of the ADMin grades 1 through 12 residing in each qualified school corporationfor the immediately preceding school year.
(b) Upon the receipt of the information, the county auditor shallcompute the amount to be distributed to each of the qualified schoolcorporations from the receipts of the tax levy, based on the formulaset forth in this chapter.
(c) The county auditor shall annually issue a warrant to the countytreasurer ordering the payment to the respective qualified schoolcorporations the various amounts in the fund at each semiannual taxsettlement period during the year in which the tax has been collected. (d) The qualified school corporations and the proper officials andemployees of the qualified school corporations shall receive thereceipts distributed by the county treasurer in the same manner asother tax receipts are received.
As added by P.L.2-2006, SEC.168.
IC 20-45-8-19
Use
Sec. 19. The receipts from the tax are available to a qualifiedschool corporation for any purpose or purposes for which schoolexpenditures are authorized by law. The purpose or purposes forwhich the receipts from the tax are used rests within the discretion ofthe administrative officer or governing board of each qualified schoolcorporation. The budgets of the qualified school corporations mustreflect the anticipated receipts from the tax. Appropriations shall bemade of the receipts from the tax as other appropriations are made.
As added by P.L.2-2006, SEC.168.
IC 20-45-8-20
Application of other laws
Sec. 20. The tax levy is subject to all laws concerning review bythe county board of tax adjustment and the department of localgovernment finance.
As added by P.L.2-2006, SEC.168. Amended by P.L.224-2007,SEC.115; P.L.146-2008, SEC.493.
IC 20-45-8-21
Eligibility for distribution; required minimum levy
Sec. 21. To qualify to receive any of the receipts of a tax levy, aqualified school corporation must levy against the assessed valuationof the qualified school corporation a total school tax rate sufficientto generate an amount equal to the amount of revenues deposited inthe fund in calendar year 1979.
As added by P.L.2-2006, SEC.168.
IC 20-45-8-22
Calculation; tax levy
Sec. 22. (a) The amount to be raised by the tax shall bedetermined in any calendar year by the county auditor and certifiedto by the board of county commissioners before the time for makingthe county budgets in the year.
(b) The amount is the total of the entitlements of all qualifiedschool corporations.
(c) The entitlement of each qualified school corporationcalculated in a calendar year is an amount equal to the resultdetermined under STEP TWO of the following formula:
STEP ONE: Calculate the quotient of:
(A) the total amount deposited in the fund in calendar year1979 or the first year in which a deposit was made,whichever is later; divided by (B) the total ADM of the immediately preceding school yearof qualified school corporations that received money fromthe fund in 1979.
STEP TWO: Calculate the product of:
(A) the STEP ONE result; multiplied by
(B) the ADM of the immediately preceding school year ofthe qualified school corporation that received money fromthe fund in 1979.
As added by P.L.2-2006, SEC.168.
IC 20-45-8-23
Distribution; revenue in addition to other levies
Sec. 23. The entitlement of a receiving qualified schoolcorporation may not have the effect of reducing the total school taxrate of the qualified school corporation below the total school taxrate prevailing in any paying qualified school corporation. Anyentitlement payable under this chapter shall be reduced so as not toproduce that effect. However, the entitlement of a receiving qualifiedschool corporation that levies its maximum tuition support levy shallnot be affected by the receiving qualified school corporation's taxrate.
As added by P.L.2-2006, SEC.168.
IC 20-45-8-24
Duty; levy of countywide tax; amount
Sec. 24. (a) The board of county commissioners shall levy a taxrate on all the real and taxable personal property in the county thatis sufficient to raise the total of the entitlements in the same manneras other county property tax rates are levied.
(b) If the board of county commissioners fails in any calendar yearto levy the tax rate required by this chapter, the department of localgovernment finance shall certify the amount of the tax levy to thecounty auditor. The certified rate shall be the tax for the calendaryear. The tax shall be collected and received by the county treasurerin the same manner as other county property taxes are collected.
As added by P.L.2-2006, SEC.168.
IC 20-45-8-25
Distribution to school corporations
Sec. 25. (a) The money received into the fund in any calendar yearshall be paid to the qualified school corporations in accordance withtheir entitlements, determined in the immediately preceding calendaryear, in the same manner as other tax distributions.
(b) A qualified school corporation has the same rights to advancepayments of a distribution from the fund as the qualified schoolcorporation's right to advance payments of other property taxes.
(c) If the tax receipts in the county school distribution fund in anycalendar year are less than the total of the entitlements for anyreason, on account of delinquencies in collection or otherwise, eachentitlement shall be reduced in the same percentage so that the entire
fund is exhausted.
(d) If the tax receipts in any calendar year are more than the totalof the entitlements because of the collection of delinquencies forprior years, each entitlement shall be increased in the samepercentage so that the entire fund is exhausted.
As added by P.L.2-2006, SEC.168.
IC 20-45-8-26
Budget
Sec. 26. In making its budget, each qualified school corporationshall take into account its anticipated receipts from the fund. Thecounty auditor, before July 15 of each year, shall certify to eachqualified school corporation the amount of its entitlement from thefund to be used in the preparation of its budget. Any qualified schoolcorporation may also appropriate its entitlement by emergencyappropriation in the same manner as any property tax receipt.
As added by P.L.2-2006, SEC.168.
IC 20-45-8-27
Distribution; revenue in addition to state tuition support
Sec. 27. The tax provided by this chapter may not operate todiminish the amount of state tuition support or other aid given by thestate.
As added by P.L.2-2006, SEC.168.
IC 20-45-8-28
Certification; other information
Sec. 28. The department of local government finance and the statesuperintendent shall make certifications of any information in theirpossession, or any other certifications required by this chapter thatwill facilitate this chapter's execution.
As added by P.L.2-2006, SEC.168.