CHAPTER 20.3. DISTRESSED POLITICAL SUBDIVISIONS
IC 6-1.1-20.3
Chapter 20.3. Distressed Political Subdivisions
IC 6-1.1-20.3-1
"Distressed unit appeals board"
Sec. 1. As used in this chapter, "board" refers to the distressedunit appeal board established by section 4 of this chapter.
As added by P.L.224-2007, SEC.36. Amended by P.L.146-2008,SEC.201.
IC 6-1.1-20.3-2
"Distressed political subdivision"
Sec. 2. As used in this chapter, "distressed political subdivision"means a political subdivision that expects to have the politicalsubdivision's property tax collections reduced by at least five percent(5%) in a calendar year as a result of the application of the creditunder IC 6-1.1-20.6 for that calendar year.
As added by P.L.224-2007, SEC.36. Amended by P.L.146-2008,SEC.202.
IC 6-1.1-20.3-3
"Political subdivision"
Sec. 3. As used in this chapter, "political subdivision" has themeaning set forth in IC 36-1-2-13.
As added by P.L.224-2007, SEC.36.
IC 6-1.1-20.3-4
Board established; members
Sec. 4. (a) The distressed unit appeal board is established.
(b) The distressed unit appeal board consists of the followingmembers:
(1) The director of the office of management and budget or thedirector's designee. The director or the director's designee shallserve as chairperson of the distressed unit appeal board.
(2) The commissioner of the department of local governmentfinance or the commissioner's designee.
(3) The commissioner of the department of state revenue or thecommissioner's designee.
(4) The state examiner of the state board of accounts or the stateexaminer's designee.
(5) The following members appointed by the governor:
(A) One (1) member appointed from nominees submitted bythe Indiana Association of Cities and Towns.
(B) One (1) member appointed from nominees submitted bythe Association of Indiana Counties.
(C) One (1) member appointed from nominees submitted bythe Indiana Association of School Superintendents.
A member nominated and appointed under this subdivisionmust be an elected official of a political subdivision.
(6) One (1) member appointed by the governor (in addition to
members appointed under subdivision (5)).
(7) One (1) member appointed by the speaker of the house ofrepresentatives. A member appointed under this subdivisionserves a term of four (4) years.
(c) The members appointed under subsection (b)(5) andsubsection (b)(6) serve at the pleasure of the governor.
(d) Each member of the commission is entitled to reimbursementfor:
(1) traveling expenses as provided under IC 4-13-1-4; and
(2) other expenses actually incurred in connection with themember's duties as provided in the state policies and proceduresestablished by the Indiana department of administration andapproved by the budget agency.
As added by P.L.224-2007, SEC.36. Amended by P.L.146-2008,SEC.203.
IC 6-1.1-20.3-5
Staff; funding; contracts
Sec. 5. (a) The department of local government finance shallprovide the board with the staff and assistance that the boardreasonably requires.
(b) The department of local government finance shall providefrom the department's budget funding to support the board's dutiesunder this chapter.
(c) The board may contract with accountants, financial experts,and other advisors and consultants as necessary to carry out theboard's duties under this chapter.
As added by P.L.224-2007, SEC.36. Amended by P.L.146-2008,SEC.204.
IC 6-1.1-20.3-6
Petition to board; financial plan
Sec. 6. (a) For property taxes first due and payable in 2008 andthereafter, the fiscal body of a distressed political subdivision maypetition the board for relief as authorized under this chapter from theapplication of the credit under IC 6-1.1-20.6 for a calendar year.
(b) A petition under subsection (a) must include a proposedfinancial plan for the distressed political subdivision. The proposedfinancial plan must include the following:
(1) Proposed budgets that would enable the distressed politicalsubdivision to cease being a distressed political subdivision.
(2) Proposed efficiencies, consolidations, cost reductions, usesof alternative or additional revenues, or other actions that wouldenable the distressed political subdivision to cease being adistressed political subdivision.
(3) Proposed increases, if any, in the percentage thresholds(specified as a percentage of gross assessed value) at which thecredit under IC 6-1.1-20.6 will apply, including any varyingpercentages for different classes of property.
(4) Proposed reductions, if any, to the credits under
IC 6-1.1-20.6 (by percentages), including any varyingpercentage reductions for different classes of property.
(c) The board may adopt procedures governing the timing andrequired content of a petition under subsection (a).
As added by P.L.224-2007, SEC.36. Amended by P.L.146-2008,SEC.205.
IC 6-1.1-20.3-7
Actions by board
Sec. 7. (a) If the fiscal body of a distressed political subdivisionsubmits a petition under section 6 of this chapter, the board shallreview the petition and assist in establishing a financial plan for thedistressed political subdivision.
(b) In reviewing a petition submitted under section 6 of thischapter, the board:
(1) shall consider:
(A) the proposed financial plan;
(B) comparisons to similarly situated political subdivisions;
(C) the existing revenue and expenditures of politicalsubdivisions in the county; and
(D) any other factor considered relevant by the board; and
(2) may establish subcommittees or temporarily appointnonvoting members to the board to assist in the review.
As added by P.L.224-2007, SEC.36. Amended by P.L.146-2008,SEC.206; P.L.1-2009, SEC.43.
IC 6-1.1-20.3-8
Relief granted board
Sec. 8. (a) The board may authorize relief as provided insubsection (b) from the application of the credit under IC 6-1.1-20.6for a calendar year if the governing body of each politicalsubdivision in the county that is affected by the financial plan hasadopted a resolution agreeing to the terms of the financial plan.
(b) If the conditions of subsection (a) are satisfied, the board may,notwithstanding IC 6-1.1-20.6, do any of the following:
(1) Increase the percentage thresholds (specified as a percentageof gross assessed value) at which the credit under IC 6-1.1-20.6applies to a person's property tax liability in the politicalsubdivision.
(2) Provide for percentage reductions to credits otherwiseprovided under IC 6-1.1-20.6 in the political subdivision.
(3) Provide that some or all of the property taxes that:
(A) are being imposed to pay bonds, leases, or other debtobligations; and
(B) would otherwise be included in the calculation of thecredit under IC 6-1.1-20.6 in the political subdivision;
shall not be included for purposes of calculating a person'scredit under IC 6-1.1-20.6.
(c) If the board provides relief described in subsection (b), theboard shall conduct audits and reviews as necessary to determine
whether the affected political subdivision is abiding by the terms ofthe financial plan agreed to under subsection (a).
As added by P.L.224-2007, SEC.36. Amended by P.L.146-2008,SEC.207.
IC 6-1.1-20.3-9
Record of proceedings
Sec. 9. The board shall keep a record of its proceedings and itsorders.
As added by P.L.146-2008, SEC.208.
IC 6-1.1-20.3-10
Petition for judicial review
Sec. 10. A distressed political subdivision may petition the taxcourt for judicial review of a final determination of the board. Theaction must be taken to the tax court under IC 6-1.1-15 in the samemanner that an action is taken to appeal a final determination of theIndiana board of tax review. The petition must be filed in the taxcourt not more than forty-five (45) days after the board enters itsfinal determination.
As added by P.L.146-2008, SEC.209.
IC 6-1.1-20.3-11
Court rules; procedure
Sec. 11. The tax court shall adopt rules and procedures underwhich proceedings are heard and decided.
As added by P.L.146-2008, SEC.210.
IC 6-1.1-20.3-12
Burden of proof; findings of fact; grounds for relief
Sec. 12. (a) The burden of demonstrating the invalidity of anaction taken by the board is on the party to the judicial reviewproceeding asserting the invalidity.
(b) The validity of an action taken by the distressed unit appealboard shall be determined in accordance with the standards of reviewprovided in this section as applied to the agency action at the time itwas taken.
(c) The tax court shall make findings of fact on each materialissue on which the court's decision is based.
(d) The tax court shall grant relief under IC 33-26-6-7 only if thetax court determines that a person seeking judicial relief has beenprejudiced by an action of the board that is:
(1) arbitrary, capricious, an abuse of discretion, or otherwise notin accordance with law;
(2) contrary to constitutional right, power, privilege, orimmunity;
(3) in excess of statutory jurisdiction, authority, or limitations,or short of statutory jurisdiction, authority, or limitations;
(4) without observance of procedure required by law; or
(5) unsupported by substantial or reliable evidence.As added by P.L.146-2008, SEC.211.