IC 6-1.1-21.8
    Chapter 21.8. Rainy Day Fund Loans to Qualified Taxing Units

IC 6-1.1-21.8-1
"Board" defined
    Sec. 1. As used in this chapter, "board" refers to the state board offinance.
As added by P.L.157-2002, SEC.1.

IC 6-1.1-21.8-2
"Qualified taxing unit" defined
    Sec. 2. As used in this chapter, "qualified taxing unit" means ataxing unit located in a county having a population of more than onehundred forty-five thousand (145,000) but less than one hundredforty-eight thousand (148,000).
As added by P.L.157-2002, SEC.1.

IC 6-1.1-21.8-3
Loan application; prerequisites to grant of loan
    Sec. 3. A qualified taxing unit may apply to the board for one (1)or more loans from the counter-cyclical revenue and economicstabilization fund. The board may make a loan from the fund to thequalified taxing unit if:
        (1) a taxpayer with tangible property subject to taxation by thequalified taxing unit has filed a petition to reorganize under thefederal bankruptcy code;
        (2) the taxpayer has defaulted on one (1) or more of its propertytax payments;
        (3) the qualified taxing unit has experienced and will continueto experience a significant revenue shortfall as a result of thedefault; and
        (4) the taxpayer is a steel manufacturer.
As added by P.L.157-2002, SEC.1.

IC 6-1.1-21.8-4
Loan terms; repayment schedule
    Sec. 4. (a) The board shall determine the terms of a loan madeunder this chapter. However, the interest charged on the loan may notexceed the percent of increase in the United States Department ofLabor Consumer Price Index for Urban Wage Earners and ClericalWorkers during the most recent twelve (12) month period for whichdata is available as of the date that the unit applies for a loan underthis chapter. In the case of a qualified taxing unit that is not a schoolcorporation or a public library (as defined in IC 36-12-1-5), a loanmust be repaid not later than ten (10) years after the date on whichthe loan was made. In the case of a qualified taxing unit that is aschool corporation or a public library (as defined in IC 36-12-1-5),a loan must be repaid not later than eleven (11) years after the dateon which the loan was made. A school corporation or a public library(as defined in IC 36-12-1-5) is not required to begin making

payments to repay a loan until after June 30, 2004. The total amountof all the loans made under this chapter may not exceed twenty-eightmillion dollars ($28,000,000). The board may disburse the proceedsof a loan in installments. However, not more than one-third (1/3) ofthe total amount to be loaned under this chapter may be disbursed atany particular time without the review of the budget committee andthe approval of the budget agency.
    (b) A loan made under this chapter shall be repaid only from:
        (1) property tax revenues of the qualified taxing unit that aresubject to the levy limitations imposed by IC 6-1.1-18.5;
        (2) in the case of a school corporation, the school corporation'sdebt service fund; or
        (3) any other source of revenues (other than property taxes) thatis legally available to the qualified taxing unit.
The payment of any installment of principal constitutes a first chargeagainst the property tax revenues described in subdivision (1) that arecollected by the qualified taxing unit during the calendar year theinstallment is due and payable.
    (c) The obligation to repay a loan made under this chapter is nota basis for the qualified taxing unit to obtain an excessive tax levyunder IC 6-1.1-18.5.
    (d) Whenever the board receives a payment on a loan made underthis chapter, the board shall deposit the amount paid in thecounter-cyclical revenue and economic stabilization fund.
    (e) This section does not prohibit a qualified taxing unit fromrepaying a loan made under this chapter before the date specified insubsection (a) if a taxpayer described in section 3 of this chapterresumes paying property taxes to the qualified taxing unit.
    (f) Interest accrues on a loan made under this chapter until thedate the board receives notice from the county auditor that the countyhas adopted at least one (1) of the following:
        (1) The county adjusted gross income tax under IC 6-3.5-1.1.
        (2) The county option income tax under IC 6-3.5-6.
        (3) The county economic development income tax underIC 6-3.5-7.
Notwithstanding subsection (a), interest may not be charged on aloan made under this chapter if a tax described in this subsection isadopted before a qualified taxing unit applies for the loan.
As added by P.L.157-2002, SEC.1. Amended by P.L.267-2003,SEC.2; P.L.1-2005, SEC.93; P.L.228-2005, SEC.23 andP.L.246-2005, SEC.66; P.L.2-2006, SEC.62; P.L.146-2008,SEC.244.

IC 6-1.1-21.8-5
Maximum loan amount for a particular qualified taxing unit
    Sec. 5. The maximum amount that the board may loan to aqualified taxing unit is determined under STEP FOUR of thefollowing formula:
        STEP ONE: Determine the amount of the taxpayer's propertytaxes due and payable in November 2001 that are attributable

to the qualified taxing unit as determined by the department oflocal government finance.
        STEP TWO: Multiply the STEP ONE amount by one andthirty-one thousandths (1.031).
        STEP THREE: Multiply the STEP TWO product by two (2).
        STEP FOUR: Add the STEP ONE amount to the STEP THREEproduct.
However, in the case of a qualified taxing unit that is a schoolcorporation, the amount determined under STEP FOUR shall bereduced by the board to the extent that the school corporationreceives relief in the form of adjustments to the school corporation'sassessed valuation under IC 6-1.1-17-0.5 or IC 6-1.1-19-5.3.
As added by P.L.157-2002, SEC.1. Amended by P.L.2-2006, SEC.63;P.L.146-2008, SEC.245.

IC 6-1.1-21.8-6
"Delinquent tax" defined; loan proceeds and delinquent taxpayments; calculation of levy excess; expenditure of loan receipts
    Sec. 6. (a) As used in this section, "delinquent tax" means any tax:
        (1) owed by a taxpayer in a bankruptcy proceeding initiallyfiled in 2001; and
        (2) not paid during the calendar year in which it was first dueand payable.
    (b) Except as provided in subsection (d), the proceeds of a loanreceived by the qualified taxing unit under this chapter are notconsidered to be part of the ad valorem property tax levy actuallycollected by the qualified taxing unit for taxes first due and payableduring a particular calendar year for the purpose of calculating thelevy excess under IC 6-1.1-18.5-17 and IC 20-44-3. The receipt bya qualified taxing unit of any payment of delinquent tax owed by ataxpayer in bankruptcy is considered to be part of the ad valoremproperty tax levy actually collected by the qualified taxing unit fortaxes first due and payable during a particular calendar year for thepurpose of calculating the levy excess under IC 6-1.1-18.5-17 andIC 20-44-3.
    (c) The proceeds of a loan made under this chapter must first beused to retire any outstanding loans made by the department ofcommerce (including any loans made by the department of commercethat are transferred to the Indiana economic developmentcorporation) to cover a qualified taxing unit's revenue shortfallresulting from the taxpayer's default on property tax payments. Anyremaining proceeds of a loan made under this chapter and anypayment of delinquent taxes by the taxpayer may be expended by thequalified taxing unit only to pay obligations of the qualified taxingunit that have been incurred under appropriations for operatingexpenses made by the qualified taxing unit and approved by thedepartment of local government finance.
    (d) If the sum of the receipts of a qualified taxing unit that areattributable to:
        (1) the loan proceeds; and        (2) the payment of property taxes owed by a taxpayer in abankruptcy proceeding and payable in November 2001, May2002, or November 2002;
exceeds the sum of the taxpayer's property tax liability attributableto the qualified taxing unit for property taxes payable in November2001, May 2002, and November 2002, the excess as received duringany calendar year or years shall be set aside and treated for thecalendar year when received as a levy excess subject toIC 6-1.1-18.5-17 or IC 20-44-3. In calculating the payment ofproperty taxes as referred to in subdivision (2), the amount ofproperty tax credit finally allowed under IC 6-1.1-21-5 (before itsrepeal) in respect to those taxes is considered to be a payment ofthose property taxes.
As added by P.L.157-2002, SEC.1. Amended by P.L.4-2005, SEC.42;P.L.2-2006, SEC.64; P.L.146-2008, SEC.246.