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 alsofollowing 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 forcurrent property taxes collectible in that ensuing calendar year.
"Adopting county" means any county in which the countyadjusted gross income tax is in effect.
"Civil taxing unit" means any taxing unit except a schoolcorporation.
"Maximum permissible ad valorem property tax levy for thepreceding calendar year" means the greater of:
(1) the remainder of:
(A) the civil taxing unit's maximum permissible ad valoremproperty tax levy for the calendar year immediatelypreceding the ensuing calendar year, as that levy wasdetermined 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 valoremproperty tax levy referred to in clause (A); minus
(ii) the civil taxing unit's ad valorem property tax levy forthe calendar year immediately preceding the ensuingcalendar year referred to in subdivision (2); or
(2) the civil taxing unit's ad valorem property tax levy for thecalendar year immediately preceding the ensuing calendar year,as that levy was determined by the department of localgovernment finance in fixing the civil taxing unit's budget, levy,and rate for that preceding calendar year under IC 6-1.1-17, andafter eliminating the effects of temporary excessive levy appealsand temporary adjustments made to the working maximum levyfor the calendar year immediately preceding the ensuingcalendar year, as determined by the department of localgovernment finance.
"Taxable property" means all tangible property that is subject tothe tax imposed by this article and is not exempt from the tax underIC 6-1.1-10 or any other law. For purposes of sections 2 and 3 of thischapter, the term "taxable property" is further defined in section 6 ofthis 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 forcurrent property taxes collectible in that ensuing calendar year.
"Adopting county" means any county in which the countyadjusted gross income tax is in effect.
"Civil taxing unit" means any taxing unit except a schoolcorporation.
"Maximum permissible ad valorem property tax levy for thepreceding calendar year" means the greater of:
(1) the remainder of:
(A) the civil taxing unit's maximum permissible ad valoremproperty tax levy for the calendar year immediatelypreceding the ensuing calendar year, as that levy wasdetermined 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 valoremproperty tax levy referred to in clause (A); minus
(ii) the civil taxing unit's ad valorem property tax levy forthe calendar year immediately preceding the ensuingcalendar year referred to in subdivision (2); or
(2) the civil taxing unit's ad valorem property tax levy for thecalendar year immediately preceding the ensuing calendar year,as that levy was determined by the department of localgovernment finance in fixing the civil taxing unit's budget, levy,and rate for that preceding calendar year under IC 6-1.1-17, andafter eliminating the effects of temporary excessive levy appealsand temporary adjustments made to the working maximum levyfor the calendar year immediately preceding the ensuingcalendar year, as determined by the department of localgovernment finance.
However, for the determination of the maximum permissibleproperty tax levy for property taxes first due and payable afterDecember 31, 2010, upon request by a civil taxing unit, thedepartment of local government finance may make an adjustment tothe civil taxing unit's maximum permissible ad valorem property taxlevy for the ensuing calendar year if the civil taxing unit's actual levywas lower than the civil taxing unit's maximum permissible advalorem property tax levy for the calendar year immediatelypreceding the ensuing calendar year because of the civil taxing unit'suse of cash balances.
"Taxable property" means all tangible property that is subject tothe tax imposed by this article and is not exempt from the tax underIC 6-1.1-10 or any other law. For purposes of sections 2 and 3 of thischapter, the term "taxable property" is further defined in section 6 ofthis 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 personalincome" means the estimate of total nonfarm personal income forIndiana in a calendar year as computed by the federal Bureau ofEconomic Analysis using any actual data for the calendar year andany estimated data determined appropriate by the federal Bureau ofEconomic Analysis.
(b) Subject to subsection (c), for purposes of determining a civiltaxing unit's maximum permissible ad valorem property tax levy foran ensuing calendar year, the civil taxing unit shall use the assessedvalue growth quotient determined in the last STEP of the followingSTEPS:
STEP ONE: For each of the six (6) calendar years immediatelypreceding the year in which a budget is adopted underIC 6-1.1-17-5 for the ensuing calendar year, divide the Indiananonfarm personal income for the calendar year by the Indiananonfarm personal income for the calendar year immediatelypreceding that calendar year, rounding to the nearestone-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 LakeCounty. Notwithstanding any other provision, for property taxes firstdue and payable after December 31, 2007, the assessed value growthquotient used to determine a civil taxing unit's maximum permissiblead valorem property tax levy under this chapter for a particularcalendar year is one (1) unless a tax rate of one percent (1%) will bein effect under IC 6-3.5-1.1-26 or IC 6-3.5-6-32 in Lake County forthat 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 locatedin an adopting county under section 4 of this chapter may not imposean ad valorem property tax levy for an ensuing calendar year thatexceeds the amount determined in the last STEP of the followingSTEPS:
STEP ONE: Add the civil taxing unit's maximum permissiblead valorem property tax levy for the preceding calendar year tothe part of the civil taxing unit's certified share, if any, that wasused to reduce the civil taxing unit's ad valorem property taxlevy under STEP EIGHT of subsection (b) for that preceding
calendar year.
STEP TWO: Multiply the amount determined in STEP ONE bythe amount determined in the last STEP of section 2(b) of thischapter.
STEP THREE: Determine the lesser of one and fifteenhundredths (1.15) or the quotient (rounded to the nearestten-thousandth (0.0001)), of the assessed value of all taxableproperty subject to the civil taxing unit's ad valorem propertytax levy for the ensuing calendar year, divided by the assessedvalue of all taxable property that is subject to the civil taxingunit's ad valorem property tax levy for the ensuing calendar yearand that is contained within the geographic area that wassubject to the civil taxing unit's ad valorem property tax levy inthe preceding calendar year.
STEP FOUR: Determine the greater of the amount determinedin STEP THREE or one (1).
STEP FIVE: Multiply the amount determined in STEP TWO bythe amount determined in STEP FOUR.
STEP SIX: Add the amount determined under STEP TWO tothe amount determined under subsection (c).
STEP SEVEN: Determine the greater of the amount determinedunder STEP FIVE or the amount determined under STEP SIX.
(b) Except as otherwise provided in this chapter, a civil taxingunit that is treated as being located in an adopting county undersection 4 of this chapter may not impose an ad valorem property taxlevy for an ensuing calendar year that exceeds the amountdetermined in the last STEP of the following STEPS:
STEP ONE: Add the civil taxing unit's maximum permissiblead valorem property tax levy for the preceding calendar year tothe part of the civil taxing unit's certified share, if any, used toreduce the civil taxing unit's ad valorem property tax levy underSTEP EIGHT of this subsection for that preceding calendaryear.
STEP TWO: Multiply the amount determined in STEP ONE bythe amount determined in the last STEP of section 2(b) of thischapter.
STEP THREE: Determine the lesser of one and fifteenhundredths (1.15) or the quotient of the assessed value of alltaxable property subject to the civil taxing unit's ad valoremproperty tax levy for the ensuing calendar year divided by theassessed value of all taxable property that is subject to the civiltaxing unit's ad valorem property tax levy for the ensuingcalendar year and that is contained within the geographic areathat was subject to the civil taxing unit's ad valorem propertytax levy in the preceding calendar year.
STEP FOUR: Determine the greater of the amount determinedin STEP THREE or one (1).
STEP FIVE: Multiply the amount determined in STEP TWO bythe 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 determinedunder STEP FIVE or the amount determined under STEP SIX.
STEP EIGHT: Subtract the amount determined under STEPFIVE of subsection (e) from the amount determined underSTEP 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 thefollowing:
(1) If a civil taxing unit in the immediately preceding calendaryear provided an area outside its boundaries with services on acontractual basis and in the ensuing calendar year that area hasbeen annexed by the civil taxing unit, the amount paid by theannexed area during the immediately preceding calendar yearfor services that the civil taxing unit must provide to that areaduring the ensuing calendar year as a result of the annexation.
(2) If the civil taxing unit has had an excessive levy appealapproved under section 13(a)(1) of this chapter for the ensuingcalendar year, an amount determined by the civil taxing unit forthe ensuing calendar year that does not exceed the amount ofthat excessive levy.
In all other cases, the amount to be entered under STEP SIX ofsubsection (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 acounty having a county adjusted gross income tax rate for residentcounty 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 taxingunit, 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 maximumpermissible ad valorem property tax levy for the precedingcalendar year by two percent (2%).
STEP TWO: For the determination year, the amount to be usedas the STEP TWO amount is the amount determined insubsection (f) for the civil taxing unit. For each year followingthe 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 civiltaxing unit.
STEP THREE: Determine the greater of:
(A) zero (0); or
(B) the civil taxing unit's certified share for the ensuingcalendar year minus the greater of:
(i) the civil taxing unit's certified share for the calendaryear 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 amountdetermined in STEP THREE.
Add the amount determined in STEP FOUR to the amountdetermined in subsection (e), STEP THREE, as provided insubsection (e), STEP FOUR.
(e) For each civil taxing unit, the amount to be subtracted undersubsection (b), STEP EIGHT, is determined using the followingformula:
STEP ONE: Determine the lesser of the civil taxing unit's baseyear certified share for the ensuing calendar year, as determinedunder section 5 of this chapter, or the civil taxing unit's certifiedshare 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 wasreceived by the civil taxing unit in 1985; minus
(ii) the amount of federal revenue sharing money that willbe received by the civil taxing unit in the year precedingthe 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 civiltaxing 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 FOURfrom 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 beinglocated in an adopting county for calendar year 1987 undersection 4 of this chapter;
(2) the taxing unit's base year, as defined in section 5 of thischapter, if the taxing unit is treated as not being located in anadopting county for calendar year 1987 under section 4 of thischapter; or
(3) the ensuing calendar year following the first year that thetaxing unit is located in a county that has a county adjustedgross income tax rate of more than one-half percent (0.5%) onJuly 1 of that year.
The amount to be used in subsections (d) and (e) for a taxing unitdepends upon the taxing unit's certified share for the ensuingcalendar year, the taxing unit's determination year, and the countyadjusted gross income tax rate for resident county taxpayers (asdefined in IC 6-3.5-1.1-1) that is in effect in the taxing unit's countyon July 1 of the year preceding the ensuing calendar year. For thedetermination year and the ensuing calendar years following thetaxing unit's determination year, the amount is the taxing unit'scertified 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 andpayable after December 31, 2007. This subsection applies only to acivil taxing unit that is located in a county for which a countyadjusted gross income tax rate is first imposed or is increased in aparticular year under IC 6-3.5-1.1-24 or a county option income taxrate is first imposed or is increased in a particular year underIC 6-3.5-6-30. Notwithstanding any provision in this section or anyother section of this chapter and except as provided in subsection (h),the maximum permissible ad valorem property tax levy calculatedunder this section for the ensuing calendar year for a civil taxing unitsubject to this section is equal to the civil taxing unit's maximumpermissible ad valorem property tax levy for the current calendaryear.
(h) This subsection applies only to property taxes first due andpayable after December 31, 2007. In the case of a civil taxing unitthat:
(1) is partially located in a county for which a county adjustedgross income tax rate is first imposed or is increased in aparticular year under IC 6-3.5-1.1-24 or a county option incometax rate is first imposed or is increased in a particular year underIC 6-3.5-6-30; and
(2) is partially located in a county that is not described insubdivision (1);
the department of local government finance shall, notwithstandingsubsection (g), adjust the portion of the civil taxing unit's maximumpermissible ad valorem property tax levy that is attributable (asdetermined by the department of local government finance) to thecounty or counties described in subdivision (2). The department oflocal government finance shall adjust this portion of the civil taxingunit's maximum permissible ad valorem property tax levy so that,
notwithstanding subsection (g), this portion is allowed to increase asotherwise provided in this section. If the department of localgovernment finance increases the civil taxing unit's maximumpermissible ad valorem property tax levy under this subsection, anyadditional property taxes imposed by the civil taxing unit under theadjustment shall be paid only by the taxpayers in the county orcounties 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 issubject to the levy limit imposed by section 3(a) or 3(b) of thischapter for an ensuing calendar year, the civil taxing unit shall betreated as being located in an adopting county if on September 1 ofthe preceding calendar year the county adjusted gross income taxwas 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 beinglocated 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 adjustthe maximum permissible ad valorem tax levy of each county andtownship to reflect any transfer of duties between assessors underIC 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 taxingunit means the most recent calendar year:
(1) in which the civil taxing unit is located in an adoptingcounty, as determined under section 4 of this chapter; and
(2) that is immediately preceded by a calendar year in which thecivil taxing unit either:
(A) was not located in an adopting county, as determinedunder 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 calendaryear 1979, as determined under section 4 of this chapter, the civiltaxing unit's base year is calendar year 1979 or the year determinedabove, whichever is later.
(b) As used in this section, "initial certified distribution" meansthe 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 onJanuary 1 of the calendar year immediately preceding the ensuingcalendar year in the county in which a particular civil taxing unit islocated, then the civil taxing unit's base year certified share is theamount of certified shares to be received by the civil taxing unitduring its base year.
(d) If the county adjusted gross income tax was in effect onJanuary 1 of the calendar year immediately preceding the ensuingcalendar year in the county in which a particular civil taxing unit islocated, then the civil taxing unit's base year certified share is theamount of the civil taxing unit's initial certified distributionmultiplied by a fraction:
(1) The numerator of the fraction equals the remainder of thecounty adjusted gross income tax rate of the county in whichthe civil taxing unit is located and that is imposed on January 1of the ensuing calendar year minus one quarter of one percent(1/4%).
(2) The denominator of the fraction equals the remainder of thecounty adjusted gross income tax rate of the county in whichthe civil taxing unit is located and that is imposed on January 1of the civil taxing unit's base year minus one quarter of onepercent (1/4%).
(e) This subsection applies to a civil taxing unit that is located ina county that:
(1) adopts the county adjusted gross income tax after December31, 2002; and
(2) had a county adjusted gross income tax in effect on January1 of the calendar year immediately preceding the ensuingcalendar year.
Until the department of state revenue, after reviewing therecommendation of the budget agency, notifies the department oflocal government finance that a full transition to certification ofdistributions as provided in IC 6-3.5-1.1-9(a)(1) throughIC 6-3.5-1.1-9(a)(2) has occurred for the calendar year, the initialcertified distribution to be used under subsection (e) for the civiltaxing unit shall be the amount of the certified shares certified for thecivil taxing unit in the most current calendar year preceding theensuing calendar year. For the calendar year for which a fulltransition to certification of distributions as provided inIC 6-3.5-1.1-9(a)(1) through IC 6-3.5-1.1-9(a)(2) has occurred andeach subsequent calendar year, the initial certified distribution to beused under subsection (e) for the civil taxing unit is the amount ofcertified shares certified for the civil taxing unit in the calendar yearin which a full transition to certification of distributions as providedin IC 6-3.5-1.1-9(a)(1) through IC 6-3.5-1.1-9(a)(2) initially occurredfor the civil taxing unit. The department of state revenue, afterreviewing the recommendation of the budget agency, shall providethe notice to the department of local government finance as requiredunder 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 thischapter and STEP THREE of section 3(b) of this chapter, theassessed value of taxable property is the assessed value of thatproperty as determined by the department of local governmentfinance in fixing the civil taxing unit's budget, levy, and rate for theapplicable calendar year, excluding deductions allowed underIC 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 forimmediately preceding year; department of local governmentfinance review of budget, rate, and levy
Sec. 7. (a) A civil taxing unit is not subject to the levy limitsimposed by section 3 of this chapter for an ensuing calendar year ifthe civil taxing unit did not adopt an ad valorem property tax levy forthe immediately preceding calendar year.
(b) If under subsection (a) a civil taxing unit is not subject to thelevy limits imposed under section 3 of this chapter for a calendaryear, the civil taxing unit shall refer its proposed budget, ad valoremproperty tax levy, and property tax rate for that calendar year to thedepartment of local government finance. The department of localgovernment finance shall make a final determination of the civiltaxing unit's budget, ad valorem property tax levy, and property taxrate for that calendar year. However, a civil taxing unit may notimpose a property tax levy for a year if the unit did not exist as ofMarch 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 bysection 3 of this chapter do not apply to ad valorem property taxesimposed by a civil taxing unit if the civil taxing unit is committed tolevy the taxes to pay or fund either:
(1) bonded indebtedness; or
(2) lease rentals under a lease with an original term of at leastfive (5) years.
(b) Except as provided by subsections (g) and (h), a civil taxingunit must file a petition requesting approval from the department oflocal government finance to incur bonded indebtedness or execute a
lease with an original term of at least five (5) years not later thantwenty-four (24) months after the first date of publication of noticeof a preliminary determination under IC 6-1.1-20-3.1(2) (as in effectbefore July 1, 2008), unless the civil taxing unit demonstrates that alonger period is reasonable in light of the civil taxing unit's facts andcircumstances. A civil taxing unit must obtain approval from thedepartment of local government finance before the civil taxing unitmay:
(1) incur the bonded indebtedness; or
(2) enter into the lease.
(c) The department of local government finance shall render adecision within three (3) months after the date it receives a requestfor approval under subsection (b). However, the department of localgovernment finance may extend this three (3) month period by anadditional three (3) months if, at least ten (10) days before the end ofthe original three (3) month period, the department sends notice ofthe extension to the executive officer of the civil taxing unit. A civiltaxing unit may petition for judicial review of the final determinationof 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 fromcurrent revenues of the civil taxing unit actually levied and in thecourse of collection for the fiscal year in which the loans are made.
(e) For purposes of computing the ad valorem property tax levylimits imposed on a civil taxing unit by section 3 of this chapter, thecivil taxing unit's ad valorem property tax levy for a calendar yeardoes not include that part of its levy that is committed to fund or paybond 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 finaldetermination of the department of local government finance underthis section. The petition must be filed in the tax court not more thanthirty (30) days after the department enters its order under thissection.
(g) This subsection applies only to bonds, leases, and otherobligations for which a civil taxing unit:
(1) after June 30, 2008, makes a preliminary determination asdescribed in IC 6-1.1-20-3.1 or IC 6-1.1-20-3.5 or a decision asdescribed in IC 6-1.1-20-5; or
(2) in the case of bonds, leases, or other obligations payablefrom 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 oflocal government finance and approval by the department of localgovernment finance is not required before a civil taxing unit mayissue 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 governmentfinance and approval by the department of local government financeis not required before a civil taxing unit may construct, alter, orrepair 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 bysection 3 of this chapter do not apply to ad valorem property taxesimposed by a civil taxing unit under IC 8-16-3.1. For purposes ofcomputing the ad valorem property tax levy limit imposed on a civiltaxing unit under section 3 of this chapter, the civil taxing unit's advalorem property tax levy for a particular calendar year does notinclude 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 authorityexpenses
Sec. 9.5. (a) This section applies to civil taxing units located in acounty 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 3of this chapter do not apply to ad valorem property taxes imposed bya civil taxing unit under IC 8-10-5-17. For purposes of computing thead valorem property tax levy limit imposed on a civil taxing unitunder section 3 of this chapter, the civil taxing unit's ad valoremproperty tax levy for a particular calendar year does not include thatpart 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 bysection 3 of this chapter do not apply to ad valorem property taxesimposed under IC 12-20-24.
(b) For purposes of computing the ad valorem property tax levylimits imposed under section 3 of this chapter, a county's ortownship's ad valorem property tax levy for a particular calendar yeardoes not include that part of the levy imposed under the citationslisted in subsection (a).
(c) Notwithstanding subsections (a) and (b), the ad valoremproperty tax levy limits imposed by section 3 of this chapter apply toproperty taxes imposed under IC 12-20-24 after December 31, 2008,to pay principal and interest on any short term loans obtained underIC 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; taxrate adjustments
Sec. 9.8. (a) For purposes of determining the property tax levylimit imposed on a city, town, or county under section 3 of thischapter, the city, town, or county's ad valorem property tax levy fora particular calendar year does not include an amount equal to thelesser of:
(1) the amount of ad valorem property taxes that would be firstdue and payable to the city, town, or county during the ensuingcalendar year if the taxing unit imposed the maximumpermissible property tax rate per one hundred dollars ($100) ofassessed valuation that the civil taxing unit may impose for theparticular calendar year under the authority of IC 36-9-14.5 (inthe case of a county) or IC 36-9-15.5 (in the case of a city ortown); or
(2) the excess, if any, of:
(A) the property taxes imposed by the city, town, or countyunder 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 calendaryear; over
(B) the property taxes imposed by the city, town, or countyunder 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 listedin subsection (a) must be adjusted each year to account for thechange in assessed value of real property that results from:
(1) an annual adjustment of the assessed value of real propertyunder 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 followingformula:
STEP ONE: Determine the maximum rate for the politicalsubdivision levying a property tax under the statute for the yearpreceding the year in which the annual adjustment or generalreassessment takes effect.
STEP TWO: Determine the actual percentage increase (roundedto the nearest one-hundredth percent (0.01%)) in the assessedvalue (before the adjustment, if any, under IC 6-1.1-4-4.5) ofthe taxable property from the year preceding the year the annualadjustment or general reassessment takes effect to the year thatthe annual adjustment or general reassessment is effective.
STEP THREE: Determine the three (3) calendar years thatimmediately precede the ensuing calendar year and in which astatewide general reassessment of real property does not firstbecome effective.
STEP FOUR: Compute separately, for each of the calendaryears determined in STEP THREE, the actual percentageincrease (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 precedingyear.
STEP FIVE: Divide the sum of the three (3) quotients computedin 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 theSTEP FIVE percentage.
STEP SEVEN: Determine the quotient of the STEP ONE taxrate divided by the sum of one (1) plus the STEP SIXpercentage increase.
(d) The department of local government finance shall compute themaximum rate allowed under subsection (c) and provide the rate toeach political subdivision with authority to levy a tax under a statutelisted 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
Adjustments of property tax rates for local funds in counties in
which certain deductions and exemptions apply
Sec. 9.9. (a) The department of local government finance shalladjust the maximum property tax rate levied under the statutes listedin section 9.8(a) of this chapter, IC 20-46-3-6, or IC 20-46-6-5 ineach county for property taxes first due and payable in:
(1) 2004;
(2) the year the county first applies the deduction underIC 6-1.1-12-41, if the county first applies that deduction forproperty taxes first due and payable in 2005 or 2006; and
(3) 2007, if the county does not apply the deduction underIC 6-1.1-12-41 for any year.
(b) If the county does not apply the deduction underIC 6-1.1-12-41 for property taxes first due and payable in 2004, thedepartment shall compute the adjustment under subsection (a)(1) toallow a levy for the fund for which the property tax rate is levied thatequals the levy that would have applied for the fund if exemptionsunder IC 6-1.1-10-29(b)(2) (repealed) did not apply for the 2003assessment date.
(c) If the county applies the deduction under IC 6-1.1-12-41 forproperty taxes first due and payable in 2004, the department shallcompute the adjustment under subsection (a)(1) to allow a levy forthe fund for which the property tax rate is levied that equals the levythat 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 undersubsection (a)(2) to allow a levy for the fund for which the propertytax rate is levied that equals the levy that would have applied for thefund if deductions under IC 6-1.1-12-41 did not apply for theassessment date of the year that immediately precedes the year forwhich 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 islevied that equals the levy that would have applied for the fund ifdeductions under IC 6-1.1-12-42 did not apply for the 2006assessment 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 mentalhealth centers and community mental retardation and otherdevelopmental disabilities centers levy growth limitation
Sec. 10. (a) The ad valorem property tax levy limits imposed bysection 3 of this chapter do not apply to ad valorem property taxesimposed 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 thatauthorized financial assistance under IC 12-29-1 before 2002
for a community mental health center as long as the tax levyunder this section does not exceed the levy authorized in2002;
(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 developmentaldisabilities centers under IC 12-29-1-1;
to the extent that those property taxes are attributable to any increasein the assessed value of the civil taxing unit's taxable property causedby a general reassessment of real property that took effect afterFebruary 28, 1979.
(b) For purposes of computing the ad valorem property tax levylimits imposed on a civil taxing unit by section 3 of this chapter, thecivil taxing unit's ad valorem property tax levy for a particularcalendar year does not include that part of the levy described insubsection (a).
(c) This subsection applies to property taxes first due and payableafter December 31, 2008. Notwithstanding subsections (a) and (b) orany other law, any property taxes imposed by a civil taxing unit thatare exempted by this section from the ad valorem property tax levylimits imposed by section 3 of this chapter may not increase annuallyby a percentage greater than the result of:
(1) the assessed value growth quotient determined under section2 of this chapter; minus
(2) one (1).
(d) For a county that:
(1) did not impose an ad valorem property tax levy in 2008 forthe county general fund to provide financial assistance underIC 12-29-1 (community mental retardation and otherdevelopmental disabilities center) or IC 12-29-2 (communitymental health center); and
(2) determines for 2009 or a later calendar year to impose a levyas described in subdivision (1);
the ad valorem property tax levy limits imposed under section 3 ofthis chapter do not apply to the part of the county's general fund levythat is used in the first calendar year for which a determination ismade under subdivision (2) to provide financial assistance underIC 12-29-1 or IC 12-29-2. The department of local governmentfinance shall review a county's proposed budget that is submittedunder IC 12-29-1-1 or IC 12-29-2-1.2 and make a final determinationof the amount to which the levy limits do not apply under thissubsection for the first calendar year for which a determination ismade under subdivision (2).
(e) The ad valorem property tax levy limits imposed under section3 of this chapter do not apply to the county's general fund levy in theamount determined by the department of local government financeunder subsection (d) in each calendar year following the calendaryear 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;
P.L.182-2009(ss), SEC.128.
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 bysection 3 of this chapter do not apply to ad valorem property taxesimposed by a county, city, or town to supplemental juror feesadopted under IC 33-37-10-1, to the extent provided in subsections(b) and (c).
(b) Subject to subsection (c), for purposes of determining theproperty tax levy limit imposed on a county, city, or town undersection 3 of this chapter, the county, city, or town's ad valoremproperty tax levy for a calendar year does not include an amountequal to:
(1) the average annual expenditures for nonsupplemental jurorfees under IC 33-37-10-1, using the five (5) most recent yearsfor which expenditure amounts are available; multiplied by
(2) the percentage increase in juror fees that is attributable tosupplemental juror fees under the most recent ordinanceadopted 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 thead valorem property tax levy limits imposed by section 3 of thischapter only to the extent that:
(1) the county fiscal body adopts a resolution approving someor all of the property taxes that may be excluded by a city ortown under subsection (b), in the case of property taxesimposed 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 maybe excluded by the county under subsection (b); and
(B) that explains why the exclusion under subsection (b) isnecessary 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, theexclusion under subsection (b) must be approved by the fiscal bodyof the county in which the greatest part of the city's or town's netassessed 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 incomputation of levy limit
Sec. 10.2. For purposes of determining the property tax levy limitimposed on a township under section 3 of this chapter, the townshipad valorem property tax levy for a particular calendar year does notinclude the amount, if any, of ad valorem property taxes that wouldbe first due and payable to the township during the ensuing calendaryear under the authority of IC 36-8-13-4. The amount of ad valorem
property taxes levied by the township under the authority ofIC 36-8-13-4 shall, for purposes of the property tax levy limitsimposed under section 3 of this chapter, be treated as if that levywere 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 taxesfirst due and payable after December 31, 2008. The ad valoremproperty tax levy limits imposed by section 3 of this chapter do notapply to ad valorem property taxes imposed by a library board for acapital projects fund under IC 36-12-12. However, the maximumamount that is exempt from the levy limits under this section may notexceed the property taxes that would be raised in the ensuingcalendar year with a property tax rate of one and thirty-threehundredths cents ($0.0133) per one hundred dollars ($100) ofassessed valuation.
(b) This subsection does not apply to property taxes first due andpayable after December 31, 2008. For purposes of computing the advalorem property tax levy limit imposed on a library board undersection 3 of this chapter, the library board's ad valorem property taxlevy for a particular calendar year does not include that part of thelevy imposed under IC 36-12-12 that is exempt from the ad valoremproperty 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 bysection 3 of this chapter do not apply to ad valorem property taxesimposed by a township or a fire protection district under IC 36-8-14.
(b) For purposes of computing the ad valorem property tax levylimit imposed on a township or a fire protection district under section3 of this chapter, the township's or the fire protection district's advalorem property tax levy for a particular calendar year does notinclude 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 protectionterritories; levy growth limitation; department of local governmentfinance determination of budget, rate, and levy for civil taxing unitthat joins fire protection territory
Sec. 10.5. (a) The ad valorem property tax levy limits imposed bysection 3 of this chapter do not apply to ad valorem property taxesimposed by a civil taxing unit for fire protection services within afire protection territory under IC 36-8-19, if the civil taxing unit is a
participating unit in a fire protection territory established beforeAugust 1, 2001. For purposes of computing the ad valorem propertytax levy limits imposed on a civil taxing unit by section 3 of thischapter on a civil taxing unit that is a participating unit in a fireprotection territory, established before August 1, 2001, the civiltaxing unit's ad valorem property tax levy for a particular calendaryear 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 exemptedby this subsection from the ad valorem property tax levy limitsimposed by section 3 of this chapter and first due and payable afterDecember 31, 2008, may not increase annually by a percentagegreater than the result of:
(1) the assessed value growth quotient determined under section2 of this chapter; minus
(2) one (1).
(b) The department of local government finance may, under thissubsection, increase the maximum permissible ad valorem propertytax levy that would otherwise apply to a civil taxing unit undersection 3 of this chapter to meet the civil taxing unit's obligations toa fire protection territory established under IC 36-8-19. To obtain anincrease in the civil taxing unit's maximum permissible ad valoremproperty tax levy, a civil taxing unit shall submit a petition to thedepartment of local government finance in the year immediatelypreceding the first year in which the civil taxing unit levies a tax tosupport the fire protection territory. The petition must be filed beforethe date specified in section 12(a)(1) of this chapter of that year. Thedepartment of local government finance shall make a finaldetermination of the civil taxing unit's budget, ad valorem propertytax levy, and property tax rate for the fire protection territory for theensuing calendar year. In making its determination under thissubsection, the department of local government finance shallconsider the amount that the civil taxing unit is obligated to provideto meet the expenses of operation and maintenance of the fireprotection services within the territory, including the participatingunit's reasonable share of an operating balance for the fire protectionterritory. The department of local government finance shalldetermine the entire amount of the allowable adjustment in the finaldetermination. The department shall order the adjustmentimplemented in the amounts and over the number of years, notexceeding three (3), requested by the petitioning civil taxing unit.However, the department of local government finance may notapprove under this subsection a property tax levy greater than zero(0) if the civil taxing unit did not exist as of the March 1 assessmentdate for which the tax levy will be imposed. For purposes of applyingthis subsection to the civil taxing unit's maximum permissible advalorem property tax levy in subsequent calendar years, thedepartment of local government finance may determine not toconsider part or all of the part of the property tax levy imposed toestablish 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;
P.L.146-2008, SEC.177; P.L.182-2009(ss), SEC.129; P.L.113-2010,SEC.32.
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 financefor relief from levy limits; department procedure and summons forappearance or production of books and records
Sec. 12. (a) Any civil taxing unit that determines that it cannotcarry out its governmental functions for an ensuing calendar yearunder the levy limitations imposed by section 3 of this chapter may:
(1) before October 20 of the calendar year immediatelypreceding the ensuing calendar year; or
(2) in the case of a request described in section 16 of thischapter, before December 31 of the calendar year immediatelypreceding the ensuing calendar year;
appeal to the department of local government finance for relief fromthose levy limitations. In the appeal the civil taxing unit must statethat it will be unable to carry out the governmental functionscommitted to it by law unless it is given the authority that it ispetitioning for. The civil taxing unit must support these allegationsby reasonably detailed statements of fact.
(b) The department of local government finance shall immediatelyproceed to the examination and consideration of the merits of thecivil taxing unit's appeal.
(c) In considering an appeal, the department of local governmentfinance has the power to conduct hearings, require any officer ormember of the appealing civil taxing unit to appear before it, orrequire any officer or member of the appea