IC 6-3.5-1.5
    Chapter 1.5. Calculation of Levy Freeze Amounts

IC 6-3.5-1.5-1
Calculation of rate for county adjusted gross income tax or countyoption income tax
    Sec. 1. (a) The department of local government finance and thedepartment of state revenue (before January 1, 2010) or the budgetagency (after December 31, 2009) shall, before July 1 of each year,jointly calculate the county adjusted income tax rate or county optionincome tax rate (as applicable) that must be imposed in a county toraise income tax revenue in the following year equal to the sum ofthe following STEPS:
        STEP ONE: Determine the greater of zero (0) or the result of:
            (1) the department of local government finance's estimate ofthe sum of the maximum permissible ad valorem propertytax levies calculated under IC 6-1.1-18.5 for all civil taxingunits in the county for the ensuing calendar year (before anyadjustment under IC 6-1.1-18.5-3(g) or IC 6-1.1-18.5-3(h)for the ensuing calendar year); minus
            (2) the sum of the maximum permissible ad valoremproperty tax levies calculated under IC 6-1.1-18.5 for allcivil taxing units in the county for the current calendar year.
        In the case of a civil taxing unit that is located in more than one(1) county, the department of local government finance shall,for purposes of making the determination under thissubdivision, apportion the civil taxing unit's maximumpermissible ad valorem property tax levy among the counties inwhich the civil taxing unit is located.
        STEP TWO: This STEP applies only to property taxes first dueand payable before January 1, 2009. Determine the greater ofzero (0) or the result of:
            (1) the department of local government finance's estimate ofthe family and children property tax levy that will beimposed by the county under IC 12-19-7-4 for the ensuingcalendar year (before any adjustment under IC 12-19-7-4(b)for the ensuing calendar year); minus
            (2) the county's family and children property tax levyimposed by the county under IC 12-19-7-4 for the currentcalendar year.
        STEP THREE: This STEP applies only to property taxes firstdue and payable before January 1, 2009. Determine the greaterof zero (0) or the result of:
            (1) the department of local government finance's estimate ofthe children's psychiatric residential treatment servicesproperty tax levy that will be imposed by the county underIC 12-19-7.5-6 for the ensuing calendar year (before anyadjustment under IC 12-19-7.5-6(b) for the ensuing calendaryear); minus
            (2) the children's psychiatric residential treatment services

property tax imposed by the county under IC 12-19-7.5-6 forthe current calendar year.
        STEP FOUR: Determine the greater of zero (0) or the result of:
            (1) the department of local government finance's estimate ofthe county's maximum community mental health centersproperty tax levy under IC 12-29-2-2 for the ensuingcalendar year (before any adjustment under IC 12-29-2-2(c)for the ensuing calendar year); minus
            (2) the county's maximum community mental health centersproperty tax levy under IC 12-29-2-2 for the current calendaryear.
    (b) In the case of a county that wishes to impose a tax rate underIC 6-3.5-1.1-24 or IC 6-3.5-6-30 (as applicable) for the first time, thedepartment of local government finance and the department of staterevenue (before January 1, 2010) or the budget agency (afterDecember 31, 2009) shall jointly estimate the amount that will becalculated under subsection (a) in the second year after the tax rateis first imposed. The department of local government finance and thedepartment of state revenue (before January 1, 2010) or the budgetagency (after December 31, 2009) shall calculate the tax rate underIC 6-3.5-1.1-24 or IC 6-3.5-6-30 (as applicable) that must be imposedin the county in the second year after the tax rate is first imposed toraise income tax revenue equal to the estimate under this subsection.
    (c) The department (before January 1, 2010) or the budget agency(after December 31, 2009) and the department of local governmentfinance shall make the calculations under subsections (a) and (b)based on the best information available at the time the calculation ismade.
    (d) Notwithstanding IC 6-3.5-1.1-24(h) and IC 6-3.5-6-30(h), if acounty has adopted an income tax rate under IC 6-3.5-1.1-24 orIC 6-3.5-6-30 to replace property tax levy growth, the part of the taxrate under IC 6-3.5-1.1-24 or IC 6-3.5-6-30 that was used beforeJanuary 1, 2009, to reduce levy growth in the county family andchildren's fund property tax levy and the children's psychiatricresidential treatment services property tax levy shall instead be usedfor property tax relief in the same manner that a tax rate underIC 6-3.5-1.1-26 or IC 6-3.5-6-32 is used for property tax relief.
As added by P.L.224-2007, SEC.69. Amended by P.L.1-2008, SEC.4;P.L.146-2008, SEC.334; P.L.182-2009(ss), SEC.215.

IC 6-3.5-1.5-2
Certification of amount
    Sec. 2. The department of local government finance shall, beforeJuly 1 of each year, certify the amount calculated for a county undersection 1 of this chapter to the county auditor.
As added by P.L.224-2007, SEC.69.

IC 6-3.5-1.5-3
Authority to carry out chapter
    Sec. 3. The department of local government finance and the

budget agency may take any actions necessary to carry out thepurposes of this chapter.
As added by P.L.224-2007, SEC.69. Amended by P.L.182-2009(ss),SEC.216.