Bill Text: IN HB1116 | 2013 | Regular Session | Introduced
Bill Title: Property taxes.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2013-05-13 - Public Law 218 [HB1116 Detail]
Download: Indiana-2013-HB1116-Introduced.html
Citations Affected: IC 6-1.1; IC 36-1.5-4-18; IC 36-6-6-14;
IC 36-7-14-39; IC 36-12-1-14.
Synopsis: Property taxes. Makes numerous changes concerning the
administration of property taxes. Repeals a statute requiring a public
library that is governed by an appointed board and located in a county
other than Marion County to obtain, from the appropriate county, city,
or town fiscal body, the approval of its budget or an additional
appropriation only if the budget is increased by more than the assessed
value growth quotient. Provides that libraries are subject to the current
law requiring other taxing units governed by appointed boards to have
all budgets and additional appropriations approved by the appropriate
county, city, or town fiscal body.
Effective: July 1, 2013.
January 8, 2013, read first time and referred to Committee on Ways and Means.
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
(b) With respect to a reassessment of real property under a county's reassessment plan under section 4.2 of this chapter, the county council of each county shall, for property taxes due each year, levy against all the taxable property in the county an amount equal to the estimated costs of the reassessment under section 28.5 of this chapter for the group of parcels to be reassessed in that year.
determines it is appropriate because the estimated cost of:
(1) a reassessment of one (1) or more groups of parcels under a
county's reassessment plan prepared under section 4.2 of this
chapter; or
(2) making annual adjustments under section 4.5 of this chapter;
has changed.
(e) (c) The county assessor may petition the county fiscal body to
increase the levy under subsection (b) to pay for the costs of:
(1) a reassessment of one (1) or more groups of parcels under a
county's reassessment plan prepared under section 4.2 of this
chapter;
(2) verification under 50 IAC 21-3-2 of sales disclosure forms
forwarded to the county assessor under IC 6-1.1-5.5-3; or
(3) processing annual adjustments under section 4.5 of this
chapter.
The assessor must document the needs and reasons for the increased
funding.
(f) (d) If the county fiscal body denies a petition under subsection
(e), (c), the county assessor may appeal to the department of local
government finance. The department of local government finance shall:
(1) hear the appeal; and
(2) determine whether the additional levy is necessary.
(b) This section applies to a taxing unit other than a county. If a taxing unit will impose property taxes due and payable in the ensuing calendar year, the taxing unit shall file the following information in the manner prescribed by the department of local government finance with the fiscal body of the county in which the taxing unit is located:
(1) A statement of the proposed or estimated tax rate and tax levy for the taxing unit for the ensuing budget year.
(2) In the case of a taxing unit other than a school corporation, a copy of the taxing unit's proposed budget for the ensuing budget year.
(c) In the case of a taxing unit located in more than one (1) county, the taxing unit shall file the information under subsection (b) with the fiscal body of the county in which the greatest part of the taxing unit's
net assessed valuation is located.
(d) A taxing unit must file the information under subsection (b)
before September 2 of a year.
(e) A county fiscal body shall complete the following in a manner
prescribed by the department of local government finance before
October 2 of a year:
(1) Review any proposed or estimated tax rate or tax levy filed by
a taxing unit with the county fiscal body under this section.
(2) In the case of a taxing unit other than a school corporation,
review any proposed or estimated budget filed by a taxing unit
with the county fiscal body under this section.
(3) In the case of a taxing unit other than a school corporation,
issue a nonbinding recommendation to a taxing unit regarding the
taxing unit's proposed or estimated tax rate or tax levy or
proposed budget.
(f) The recommendation under subsection (e) must include a
comparison of any increase in the taxing unit's budget or tax levy to:
(1) the average increase in Indiana nonfarm personal income for
the preceding six (6) calendar years and the average increase in
nonfarm personal income for the county for the preceding six (6)
calendar years; and
(2) increases in the budgets and tax levies of other taxing units in
the county.
(g) The department of local government finance must provide each
county fiscal body with the most recent available information
concerning increases in Indiana nonfarm personal income and
increases in county nonfarm personal income.
(h) If a taxing unit fails to file the information required by
subsection (b) with the fiscal body of the county in which the taxing
unit is located by the time prescribed in subsection (d), the most recent
annual appropriations and annual tax levy of that taxing unit are
continued for the ensuing budget year.
(i) If a county fiscal body fails to complete the requirements of
subsection (e) before the deadline in subsection (e) for any taxing unit
subject to this section, the most recent annual appropriations and
annual tax levy of the county are continued for the ensuing budget year.
10 of this chapter.
(b) Subject to the limitations and requirements prescribed in this
section, the department of local government finance may review,
revise, reduce, or increase the budget by fund, tax rate, or tax levy of
any of the political subdivisions whose tax rates compose the aggregate
tax rate within a political subdivision whose budget, tax rate, or tax
levy is the subject of an appeal initiated under this chapter.
(c) Except as provided in subsections (j) and (k), section 16.1 of
this chapter, the department of local government finance is not
required to hold a public hearing before the department of local
government finance reviews, revises, reduces, or increases a political
subdivision's budget by fund, tax rate, or tax levy under this section. the
department must hold a public hearing on the budget, tax rate, and tax
levy. The department of local government finance shall hold the
hearing in the county in which the political subdivision is located. The
department of local government finance may consider the budgets by
fund, tax rates, and tax levies of several political subdivisions at the
same public hearing. At least five (5) days before the date fixed for a
public hearing, the department of local government finance shall give
notice of the time and place of the hearing and of the budgets by fund,
levies, and tax rates to be considered at the hearing. The department of
local government finance shall publish the notice in two (2)
newspapers of general circulation published in the county. However,
if only one (1) newspaper of general circulation is published in the
county, the department of local government finance shall publish the
notice in that newspaper.
(d) Except as provided in subsection (i), IC 20-46, or IC 6-1.1-18.5,
the department of local government finance may not increase a political
subdivision's budget by fund, tax rate, or tax levy to an amount which
exceeds the amount originally fixed by the political subdivision.
However, if the department of local government finance determines
that IC 5-3-1-2.3(b) applies to the tax rate, tax levy, or budget of the
political subdivision, the maximum amount by which the department
may increase the tax rate, tax levy, or budget is the amount originally
fixed by the political subdivision, and not the amount that was
incorrectly published or omitted in the notice described in
IC 5-3-1-2.3(b). The department of local government finance shall give
the political subdivision notification electronically in the manner
prescribed by the department of local government finance specifying
any revision, reduction, or increase the department proposes in a
political subdivision's tax levy or tax rate. The political subdivision has
ten (10) calendar days from the date the political subdivision receives
the notice to provide a response electronically in the manner prescribed
by the department of local government finance. The response may
include budget reductions, reallocation of levies, a revision in the
amount of miscellaneous revenues, and further review of any other
item about which, in the view of the political subdivision, the
department is in error. The department of local government finance
shall consider the adjustments as specified in the political subdivision's
response if the response is provided as required by this subsection and
shall deliver a final decision to the political subdivision.
(e) The department of local government finance may not approve a
levy for lease payments by a city, town, county, library, or school
corporation if the lease payments are payable to a building corporation
for use by the building corporation for debt service on bonds and if:
(1) no bonds of the building corporation are outstanding; or
(2) the building corporation has enough legally available funds on
hand to redeem all outstanding bonds payable from the particular
lease rental levy requested.
(f) The department of local government finance shall certify its
action to:
(1) the county auditor;
(2) the political subdivision if the department acts pursuant to an
appeal initiated by the political subdivision;
(3) the taxpayer that initiated an appeal under section 13 of this
chapter, or, if the appeal was initiated by multiple taxpayers, the
first ten (10) taxpayers whose names appear on the statement filed
to initiate the appeal; and
(4) a taxpayer that owns property that represents at least ten
percent (10%) of the taxable assessed valuation in the political
subdivision.
(g) The following may petition for judicial review of the final
determination of the department of local government finance under
subsection (f):
(1) If the department acts under an appeal initiated by a political
subdivision, the political subdivision.
(2) If the department:
(A) acts under an appeal initiated by one (1) or more taxpayers
under section 13 of this chapter; or
(B) fails to act on the appeal before the department certifies its
action under subsection (f);
a taxpayer who signed the statement filed to initiate the appeal.
(3) If the department acts under an appeal initiated by the county
auditor under section 14 of this chapter, the county auditor.
(4) A taxpayer that owns property that represents at least ten percent (10%) of the taxable assessed valuation in the political subdivision.
The petition must be filed in the tax court not more than forty-five (45) days after the department certifies its action under subsection (f).
(h) The department of local government finance is expressly directed to complete the duties assigned to it under this section not later than February
(i) Subject to the provisions of all applicable statutes, the department of local government finance may increase a political subdivision's tax levy to an amount that exceeds the amount originally fixed by the political subdivision if the increase is:
(1) requested in writing by the officers of the political subdivision;
(2) either:
(A) based on information first obtained by the political subdivision after the public hearing under section 3 of this chapter; or
(B) results from an inadvertent mathematical error made in determining the levy; and
(3) published by the political subdivision according to a notice provided by the department.
(j) The department of local government finance shall annually review the budget by fund of each school corporation not later than April 1. The department of local government finance shall give the school corporation written notification specifying any revision, reduction, or increase the department proposes in the school corporation's budget by fund. A public hearing is not required in connection with this review of the budget.
finance shall hold the hearing in the county in which the political
subdivision is located.
(b) A taxpayer may request a public hearing by filing a written
request with the county auditor or directly with the department of
local government finance in either a paper or electronic format. A
county auditor shall forward any requests received under this
section to the department of local government finance within two
(2) business days of receipt. The department of local government
finance is not required to hold a public hearing under this section
unless it receives the taxpayer's request before November 3.
(c) The department of local government finance may consider
the budgets by fund, tax rates, and tax levies of several political
subdivisions at the same public hearing.
(d) At least five (5) days before the date fixed for a public
hearing, the department of local government finance shall give
notice of the time and place of the hearing and of the budgets by
fund, levies, and tax rates to be considered at the hearing. The
department of local government finance shall publish the notice in
two (2) newspapers of general circulation published in the county.
However, if only one (1) newspaper of general circulation is
published in the county, the department of local government
finance shall publish the notice in that newspaper.
(b) As used in this section, "taxing unit" has the meaning set forth in IC 6-1.1-1-21, except that the term does not include
(c) If:
(1) the assessed valuation of a taxing unit is entirely contained within a city or town; or
(2) the assessed valuation of a taxing unit is not entirely contained within a city or town but the taxing unit was originally established by the city or town;
the governing body shall submit its proposed budget and property tax
levy to the city or town fiscal body. The proposed budget and levy shall
be submitted to the city or town fiscal body in the manner prescribed
by the department of local government finance before September 2 of
a year. However, in the case of a public library that is subject to this
section and is described in subdivision (2), the public library shall
submit its proposed budget and property tax levy to the county fiscal
body in the manner provided in subsection (d), rather than to the city
or town fiscal body, if more than fifty percent (50%) of the parcels of
real property within the jurisdiction of the public library are located
outside the city or town.
(d) If subsection (c) does not apply, the governing body of the taxing
unit shall submit its proposed budget and property tax levy to the
county fiscal body in the county where the taxing unit has the most
assessed valuation. The proposed budget and levy shall be submitted
to the county fiscal body in the manner prescribed by the department
of local government finance before September 2 of a year.
(e) The fiscal body of the city, town, or county (whichever applies)
shall review each budget and proposed tax levy and adopt a final
budget and tax levy for the taxing unit. The fiscal body may reduce or
modify but not increase the proposed budget or tax levy.
(f) If a taxing unit fails to file the information required in subsection
(c) or (d), whichever applies, with the appropriate fiscal body by the
time prescribed by this section, the most recent annual appropriations
and annual tax levy of that taxing unit are continued for the ensuing
budget year.
(g) If the appropriate fiscal body fails to complete the requirements
of subsection (e) before the adoption deadline in section 5 of this
chapter for any taxing unit subject to this section, the most recent
annual appropriations and annual tax levy of the city, town, or county,
whichever applies, are continued for the ensuing budget year.
appointed to a governing body or serves on a governing body because
of the individual's status as an elected official of another taxing unit
shall be treated as an official who was not elected to serve on the
governing body.
(b) This section does not apply to an entity whose tax levies are
subject to review and modification by a city-county legislative body
under IC 36-3-6-9.
(c) If:
(1) the assessed valuation of a public library is entirely contained
within a city or town; or
(2) the assessed valuation of a public library is not entirely
contained within a city or town but the public library was
originally established by the city or town;
the governing body shall submit its proposed budget and property tax
levy to the city or town fiscal body in the manner prescribed by the
department of local government finance before September 2 of a year.
However, the governing body shall submit its proposed budget and
property tax levy to the county fiscal body in the manner provided in
subsection (d), rather than to the city or town fiscal body, if more than
fifty percent (50%) of the parcels of real property within the
jurisdiction of the public library are located outside the city or town.
(d) If subsection (c) does not apply, the governing body of the public
library shall submit its proposed budget and property tax levy to the
county fiscal body in the county where the public library has the most
assessed valuation. The proposed budget and levy shall be submitted
to the county fiscal body in the manner prescribed by the department
of local government finance before September 2 of a year.
(e) The fiscal body of the city, town, or county (whichever applies)
shall review each budget and proposed tax levy and adopt a final
budget and tax levy for the public library. The fiscal body may reduce
or modify but not increase the proposed budget or tax levy.
(f) If a public library fails to file the information required in
subsection (c) or (d), whichever applies, with the appropriate fiscal
body by the time prescribed by this section, the most recent annual
appropriations and annual tax levy of that public library are continued
for the ensuing budget year.
(g) If the appropriate fiscal body fails to complete the requirements
of subsection (e) before the adoption deadline in section 5 of this
chapter for any public library subject to this section, the most recent
annual appropriations and annual tax levy of the city, town, or county,
whichever applies, are continued for the ensuing budget year.
SECTION 29, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 5. (a) If the proper officers of a political
subdivision desire to appropriate more money for a particular year than
the amount prescribed in the budget for that year as finally determined
under this article, they shall give notice of their proposed additional
appropriation. The notice shall state the time and place at which a
public hearing will be held on the proposal. The notice shall be given
once in accordance with IC 5-3-1-2(b).
(b) If the additional appropriation by the political subdivision is
made from a fund that receives:
(1) distributions from the motor vehicle highway account
established under IC 8-14-1-1 or the local road and street account
established under IC 8-14-2-4; or
(2) revenue from property taxes levied under IC 6-1.1;
the political subdivision must report the additional appropriation to the
department of local government finance. If the additional appropriation
is made from a fund described under this subsection, subsections (f),
(g), (h), and (i) apply to the political subdivision.
(c) However, if the additional appropriation is not made from a fund
described under subsection (b), subsections (f), (g), (h), and (i) do not
apply to the political subdivision. Subsections (f), (g), (h), and (i) do
not apply to an additional appropriation made from the cumulative
bridge fund if the appropriation meets the requirements under
IC 8-16-3-3(c).
(d) A political subdivision may make an additional appropriation
without approval of the department of local government finance if the
additional appropriation is made from a fund that is not described
under subsection (b). However, the fiscal officer of the political
subdivision shall report the additional appropriation to the department
of local government finance.
(e) After the public hearing, the proper officers of the political
subdivision shall file a certified copy of their final proposal and any
other relevant information to the department of local government
finance.
(f) When the department of local government finance receives a
certified copy of a proposal for an additional appropriation under
subsection (e), the department shall determine whether sufficient funds
are available or will be available for the proposal. The determination
shall be made in writing and sent to the political subdivision not more
than fifteen (15) days after the department of local government finance
receives the proposal.
(g) In making the determination under subsection (f), the
department of local government finance shall limit the amount of the
additional appropriation to revenues available, or to be made available,
which have not been previously appropriated.
(h) If the department of local government finance disapproves an
additional appropriation under subsection (f), the department shall
specify the reason for its disapproval on the determination sent to the
political subdivision.
(i) A political subdivision may request a reconsideration of a
determination of the department of local government finance under this
section by filing a written request for reconsideration. A request for
reconsideration must:
(1) be filed with the department of local government finance
within fifteen (15) days of the receipt of the determination by the
political subdivision; and
(2) state with reasonable specificity the reason for the request.
The department of local government finance must act on a request for
reconsideration within fifteen (15) days of receiving the request.
(j) This subsection applies to an additional appropriation by a
political subdivision that must have the political subdivision's annual
appropriations and annual tax levy adopted by a city, town, or county
fiscal body under IC 6-1.1-17-20 or by a legislative or fiscal body under
IC 36-3-6-9. The fiscal or legislative body of the city, town, or county
that adopted the political subdivision's annual appropriation and annual
tax levy must adopt the additional appropriation by ordinance before
the department of local government finance may approve the additional
appropriation.
(k) This subsection applies to a public library that:
(1) is required to submit the public library's budgets, tax rates, and
tax levies for nonbinding review under IC 6-1.1-17-3.5; and
(2) is not required to submit the public library's budgets, tax rates,
and tax levies for binding review and approval under
IC 6-1.1-17-20.
If a public library subject to this subsection proposes to make an
additional appropriation for a year, and the additional appropriation
would result in the budget for the library for that year increasing (as
compared to the previous year) by a percentage that is greater than the
result of the assessed value growth quotient determined under
IC 6-1.1-18.5-2 for the calendar year minus one (1), the additional
appropriation must first be approved by the city, town, or county fiscal
body described in IC 6-1.1-17-20.3(c) or IC 6-1.1-17-20(d), as
appropriate.
SECTION 34, AND AS AMENDED BY P.L.137-2012, SECTION 30,
IS CORRECTED AND AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2013]: Sec. 12. (a) For purposes of this section,
"maximum rate" refers to the maximum:
(1) property tax rate or rates; or
(2) special benefits tax rate or rates;
referred to in the statutes listed in subsection (d).
(b) The maximum rate for taxes first due and payable after 2003 is
the maximum rate that would have been determined under subsection
(e) for taxes first due and payable in 2003 if subsection (e) had applied
for taxes first due and payable in 2003.
(c) The maximum rate must be adjusted each year to account for the
change in assessed value of real property that results from:
(1) an annual adjustment of the assessed value of real property
under IC 6-1.1-4-4.5; or
(2) a general reassessment of real property under IC 6-1.1-4-4; or
(3) a reassessment under a county's reassessment plan prepared
under IC 6-1.1-4-4.2.
(d) The statutes to which subsection (a) refers are:
(1) IC 8-10-5-17;
(2) IC 8-22-3-11;
(3) IC 8-22-3-25;
(4) IC 12-29-1-1;
(5) IC 12-29-1-2;
(6) IC 12-29-1-3;
(7) IC 12-29-3-6;
(8) IC 13-21-3-12;
(9) IC 13-21-3-15;
(10) IC 14-27-6-30;
(11) IC 14-33-7-3;
(12) IC 14-33-21-5;
(13) IC 15-14-7-4;
(14) IC 15-14-9-1;
(15) IC 15-14-9-2;
(16) IC 16-20-2-18;
(17) IC 16-20-4-27;
(18) IC 16-20-7-2;
(19) IC 16-22-14;
(20) IC 16-23-1-29;
(21) IC 16-23-3-6;
(22) IC 16-23-4-2;
(23) IC 16-23-5-6;
(24) IC 16-23-7-2;
(25) IC 16-23-8-2;
(26) IC 16-23-9-2;
(27) IC 16-41-15-5;
(28) IC 16-41-33-4;
(29) IC 20-46-2-3 (before its repeal on January 1, 2009);
(30) IC 20-46-6-5;
(31) IC 20-49-2-10;
(32) IC 36-1-19-1;
(33) IC 23-14-66-2;
(34) IC 23-14-67-3;
(35) IC 36-7-13-4;
(36) IC 36-7-14-28;
(37) IC 36-7-15.1-16;
(38) IC 36-8-19-8.5;
(39) IC 36-9-6.1-2;
(40) IC 36-9-17.5-4;
(41) IC 36-9-27-73;
(42) IC 36-9-29-31;
(43) IC 36-9-29.1-15;
(44) IC 36-10-6-2;
(45) IC 36-10-7-7;
(46) IC 36-10-7-8;
(47) IC 36-10-7.5-19;
(48) IC 36-10-13-5;
(49) IC 36-10-13-7;
(50) IC 36-10-14-4;
(51) IC 36-12-7-7;
(52) IC 36-12-7-8;
(53) IC 36-12-12-10;
(54) a statute listed in IC 6-1.1-18.5-9.8; and
(A) establishes a maximum rate for any part of the:
(i) property taxes; or
(ii) special benefits taxes;
imposed by a political subdivision; and
(B) does not exempt the maximum rate from the adjustment under this section.
(e) For property tax rates imposed for property taxes first due and payable after December 31,
STEP ONE: Except as provided in subsection (g), determine the maximum rate for the political subdivision levying a property tax or special benefits tax under the statute for the previous calendar year.
STEP TWO:
STEP THREE: Determine the three (3) calendar years that immediately precede the
STEP FOUR:
STEP FIVE: Divide the sum of the three (3) quotients computed in STEP FOUR by three (3).
STEP SIX: Determine the greater of the following:
(A) Zero (0).
(B) The STEP FIVE result.
STEP
(A) Zero (0).
(B) The result of the STEP TWO percentage minus the STEP
STEP
(f) The department of local government finance shall compute the maximum rate allowed under subsection (e) and provide the rate to each political subdivision with authority to levy a tax under a statute listed in subsection (d).
(g) This subsection applies only when calculating the maximum rate for taxes due and payable in calendar year 2013. The STEP ONE result is the greater of the following:
(1) The actual maximum rate established for property taxes first due and payable in calendar year 2012.
(2) The maximum rate that would have been established for property taxes first due and payable in calendar year 2012 if the maximum rate had been established under the formula under this section, as amended in the 2012 session of the general assembly.
(1) A controlled project (as defined in section 1.1 of this chapter as in effect June 30, 2008) for which the proper officers of a political subdivision make a preliminary determination in the manner described in subsection (b) before July 1, 2008.
(2) An elementary school building, middle school building, or other school building for academic instruction that:
(A) is a controlled project;
(B) will be used for any combination of kindergarten through grade 8;
(C) will not be used for any combination of grade 9 through grade 12; and
(D) will not cost more than ten million dollars ($10,000,000).
(3) A high school building or other school building for academic instruction that:
(A) is a controlled project;
(B) will be used for any combination of grade 9 through grade 12;
(C) will not be used for any combination of kindergarten through grade 8; and
(D) will not cost more than twenty million dollars ($20,000,000).
(4) A school building for academic instruction that:
(A) is a controlled project; and
(B) will be used for both:
(i) kindergarten through grade 8; and
(ii) grade 9 through grade 12; and
(C) will not cost more than fifteen million dollars ($15,000,000).
(A) is not a controlled project described in subdivision (1), (2),
(B) will not cost the political subdivision more than the lesser of the following:
(i) Twelve million dollars ($12,000,000).
(ii) An amount equal to one percent (1%) of the total gross assessed value of property within the political subdivision on the last assessment date, if that amount is at least one million dollars ($1,000,000).
(b) A political subdivision may not impose property taxes to pay debt service on bonds or lease rentals on a lease for a controlled project without completing the following procedures:
(1) The proper officers of a political subdivision shall:
(A) publish notice in accordance with IC 5-3-1; and
(B) send notice by first class mail to the circuit court clerk and to any organization that delivers to the officers, before January 1 of that year, an annual written request for such notices;
of any meeting to consider adoption of a resolution or an ordinance making a preliminary determination to issue bonds or enter into a lease and shall conduct a public hearing on a preliminary determination before adoption of the resolution or ordinance.
(2) When the proper officers of a political subdivision make a preliminary determination to issue bonds or enter into a lease for a controlled project, the officers shall give notice of the preliminary determination by:
(A) publication in accordance with IC 5-3-1; and
(B) first class mail to the circuit court clerk and to the organizations described in subdivision (1)(B).
(3) A notice under subdivision (2) of the preliminary determination of the political subdivision to issue bonds or enter into a lease for a controlled project must include the following information:
(A) The maximum term of the bonds or lease.
(B) The maximum principal amount of the bonds or the maximum lease rental for the lease.
(C) The estimated interest rates that will be paid and the total interest costs associated with the bonds or lease.
(D) The purpose of the bonds or lease.
(E) A statement that any owners of property within the political subdivision or registered voters residing within the political subdivision who want to initiate a petition and remonstrance process against the proposed debt service or lease payments must file a petition that complies with subdivisions (4) and (5) not later than thirty (30) days after publication in accordance with IC 5-3-1.
(F) With respect to bonds issued or a lease entered into to open:
(i) a new school facility; or
(ii) an existing facility that has not been used for at least three (3) years and that is being reopened to provide additional classroom space;
the estimated costs the school corporation expects to incur annually to operate the facility.
(G) A statement of whether the school corporation expects to appeal for a new facility adjustment (as defined in IC 20-45-1-16 (repealed) before January 1, 2009) for an increased maximum permissible tuition support levy to pay the estimated costs described in clause (F).
(H) The political subdivision's current debt service levy and rate and the estimated increase to the political subdivision's debt service levy and rate that will result if the political subdivision issues the bonds or enters into the lease.
(4) After notice is given, a petition requesting the application of a petition and remonstrance process may be filed by the lesser of:
(A) one hundred (100) persons who are either owners of property within the political subdivision or registered voters residing within the political subdivision; or
(B) five percent (5%) of the registered voters residing within the political subdivision.
(5) The state board of accounts shall design and, upon request by the county voter registration office, deliver to the county voter registration office or the county voter registration office's designated printer the petition forms to be used solely in the petition process described in this section. The county voter registration office shall issue to an owner or owners of property
within the political subdivision or a registered voter residing
within the political subdivision the number of petition forms
requested by the owner or owners or the registered voter. Each
form must be accompanied by instructions detailing the
requirements that:
(A) the carrier and signers must be owners of property or
registered voters;
(B) the carrier must be a signatory on at least one (1) petition;
(C) after the signatures have been collected, the carrier must
swear or affirm before a notary public that the carrier
witnessed each signature; and
(D) govern the closing date for the petition period.
Persons requesting forms may be required to identify themselves
as owners of property or registered voters and may be allowed to
pick up additional copies to distribute to other owners of property
or registered voters. Each person signing a petition must indicate
whether the person is signing the petition as a registered voter
within the political subdivision or is signing the petition as the
owner of property within the political subdivision. A person who
signs a petition as a registered voter must indicate the address at
which the person is registered to vote. A person who signs a
petition as an owner of property must indicate the address of the
property owned by the person in the political subdivision.
(6) Each petition must be verified under oath by at least one (1)
qualified petitioner in a manner prescribed by the state board of
accounts before the petition is filed with the county voter
registration office under subdivision (7).
(7) Each petition must be filed with the county voter registration
office not more than thirty (30) days after publication under
subdivision (2) of the notice of the preliminary determination.
(8) The county voter registration office shall determine whether
each person who signed the petition is a registered voter. The
county voter registration office shall, not more than fifteen (15)
business days after receiving a petition, forward a copy of the
petition to the county auditor. Not more than ten (10) business
days after receiving the copy of the petition, the county auditor
shall provide to the county voter registration office a statement
verifying:
(A) whether a person who signed the petition as a registered
voter but is not a registered voter, as determined by the county
voter registration office, is the owner of property in the
political subdivision; and
(B) whether a person who signed the petition as an owner of property within the political subdivision does in fact own property within the political subdivision.
(9) The county voter registration office shall, not more than ten (10) business days after receiving the statement from the county auditor under subdivision (8), make the final determination of the number of petitioners that are registered voters in the political subdivision and, based on the statement provided by the county auditor, the number of petitioners that own property within the political subdivision. Whenever the name of an individual who signs a petition form as a registered voter contains a minor variation from the name of the registered voter as set forth in the records of the county voter registration office, the signature is presumed to be valid, and there is a presumption that the individual is entitled to sign the petition under this section. Except as otherwise provided in this chapter, in determining whether an individual is a registered voter, the county voter registration office shall apply the requirements and procedures used under IC 3 to determine whether a person is a registered voter for purposes of voting in an election governed by IC 3. However, an individual is not required to comply with the provisions concerning providing proof of identification to be considered a registered voter for purposes of this chapter. A person is entitled to sign a petition only one (1) time in a particular petition and remonstrance process under this chapter, regardless of whether the person owns more than one (1) parcel of real property, mobile home assessed as personal property, or manufactured home assessed as personal property, or a combination of those types of property within the subdivision and regardless of whether the person is both a registered voter in the political subdivision and the owner of property within the political subdivision. Notwithstanding any other provision of this section, if a petition is presented to the county voter registration office within forty-five (45) days before an election, the county voter registration office may defer acting on the petition, and the time requirements under this section for action by the county voter registration office do not begin to run until five (5) days after the date of the election.
(10) The county voter registration office must file a certificate and each petition with:
(A) the township trustee, if the political subdivision is a township, who shall present the petition or petitions to the township board; or
(B) the body that has the authority to authorize the issuance of the bonds or the execution of a lease, if the political subdivision is not a township;
within thirty-five (35) business days of the filing of the petition requesting a petition and remonstrance process. The certificate must state the number of petitioners that are owners of property within the political subdivision and the number of petitioners who are registered voters residing within the political subdivision.
If a sufficient petition requesting a petition and remonstrance process is not filed by owners of property or registered voters as set forth in this section, the political subdivision may issue bonds or enter into a lease by following the provisions of law relating to the bonds to be issued or lease to be entered into.
(c) This subsection applies only to a political subdivision that, after April 30, 2011, adopts an ordinance or a resolution making a preliminary determination to issue bonds or enter into a lease subject to this section and section 3.2 of this chapter. A political subdivision may not artificially divide a capital project into multiple capital projects in order to avoid the requirements of this section and section 3.2 of this chapter.
(1) The controlled project is described in one (1) of the following categories:
(A) An elementary school building, middle school building, or other school building for academic instruction that:
(i) will be used for any combination of kindergarten through grade 8;
(ii) will not be used for any combination of grade 9 through grade 12; and
(iii) will cost more than ten million dollars ($10,000,000).
(B) A high school building or other school building for academic instruction that:
(i) will be used for any combination of grade 9 through grade 12;
(ii) will not be used for any combination of kindergarten through grade 8; and
(iii) will cost more than twenty million dollars ($20,000,000).
(C) A school building for academic instruction that:
(i) will be used for both kindergarten through grade 8 and grade 9 through grade 12; and
(ii) will cost more than fifteen million dollars ($15,000,000).
(i) is not a controlled project described in clause (A),
(ii) will cost the political subdivision more than the lesser of twelve million dollars ($12,000,000) or an amount equal to one percent (1%) of the total gross assessed value of property within the political subdivision on the last assessment date (if that amount is at least one million dollars ($1,000,000)).
(2) The proper officers of the political subdivision make a preliminary determination after June 30, 2008, in the manner described in subsection (b) to issue bonds or enter into a lease for the controlled project.
(b) A political subdivision may not impose property taxes to pay debt service on bonds or lease rentals on a lease for a controlled project without completing the following procedures:
(1) The proper officers of a political subdivision shall publish notice in accordance with IC 5-3-1 and send notice by first class mail to the circuit court clerk and to any organization that delivers to the officers, before January 1 of that year, an annual written request for notices of any meeting to consider the adoption of an ordinance or a resolution making a preliminary determination to issue bonds or enter into a lease and shall conduct a public hearing on the preliminary determination before adoption of the ordinance or resolution. The political subdivision must make the following information available to the public at the public hearing on the preliminary determination, in addition to any other information required by law:
(A) The result of the political subdivision's current and projected annual debt service payments divided by the net assessed value of taxable property within the political subdivision.
(B) The result of:
(i) the sum of the political subdivision's outstanding long term debt plus the outstanding long term debt of other taxing units that include any of the territory of the political subdivision; divided by
(ii) the net assessed value of taxable property within the
political subdivision.
(C) The information specified in subdivision (3)(A) through
(3)(G).
(2) If the proper officers of a political subdivision make a
preliminary determination to issue bonds or enter into a lease, the
officers shall give notice of the preliminary determination by:
(A) publication in accordance with IC 5-3-1; and
(B) first class mail to the circuit court clerk and to the
organizations described in subdivision (1).
(3) A notice under subdivision (2) of the preliminary
determination of the political subdivision to issue bonds or enter
into a lease must include the following information:
(A) The maximum term of the bonds or lease.
(B) The maximum principal amount of the bonds or the
maximum lease rental for the lease.
(C) The estimated interest rates that will be paid and the total
interest costs associated with the bonds or lease.
(D) The purpose of the bonds or lease.
(E) A statement that the proposed debt service or lease
payments must be approved in an election on a local public
question held under section 3.6 of this chapter.
(F) With respect to bonds issued or a lease entered into to
open:
(i) a new school facility; or
(ii) an existing facility that has not been used for at least
three (3) years and that is being reopened to provide
additional classroom space;
the estimated costs the school corporation expects to annually
incur to operate the facility.
(G) The political subdivision's current debt service levy and
rate and the estimated increase to the political subdivision's
debt service levy and rate that will result if the political
subdivision issues the bonds or enters into the lease.
(H) The information specified in subdivision (1)(A) through
(1)(B).
(4) After notice is given, a petition requesting the application of
the local public question process under section 3.6 of this chapter
may be filed by the lesser of:
(A) one hundred (100) persons who are either owners of
property within the political subdivision or registered voters
residing within the political subdivision; or
(B) five percent (5%) of the registered voters residing within
the political subdivision.
(5) The state board of accounts shall design and, upon request by
the county voter registration office, deliver to the county voter
registration office or the county voter registration office's
designated printer the petition forms to be used solely in the
petition process described in this section. The county voter
registration office shall issue to an owner or owners of property
within the political subdivision or a registered voter residing
within the political subdivision the number of petition forms
requested by the owner or owners or the registered voter. Each
form must be accompanied by instructions detailing the
requirements that:
(A) the carrier and signers must be owners of property or
registered voters;
(B) the carrier must be a signatory on at least one (1) petition;
(C) after the signatures have been collected, the carrier must
swear or affirm before a notary public that the carrier
witnessed each signature; and
(D) govern the closing date for the petition period.
Persons requesting forms may be required to identify themselves
as owners of property or registered voters and may be allowed to
pick up additional copies to distribute to other owners of property
or registered voters. Each person signing a petition must indicate
whether the person is signing the petition as a registered voter
within the political subdivision or is signing the petition as the
owner of property within the political subdivision. A person who
signs a petition as a registered voter must indicate the address at
which the person is registered to vote. A person who signs a
petition as an owner of property must indicate the address of the
property owned by the person in the political subdivision.
(6) Each petition must be verified under oath by at least one (1)
qualified petitioner in a manner prescribed by the state board of
accounts before the petition is filed with the county voter
registration office under subdivision (7).
(7) Each petition must be filed with the county voter registration
office not more than thirty (30) days after publication under
subdivision (2) of the notice of the preliminary determination.
(8) The county voter registration office shall determine whether
each person who signed the petition is a registered voter.
However, after the county voter registration office has determined
that at least one hundred twenty-five (125) persons who signed
the petition are registered voters within the political subdivision,
the county voter registration office is not required to verify
whether the remaining persons who signed the petition are
registered voters. If the county voter registration office does not
determine that at least one hundred twenty-five (125) persons who
signed the petition are registered voters, the county voter
registration office, not more than fifteen (15) business days after
receiving a petition, shall forward a copy of the petition to the
county auditor. Not more than ten (10) business days after
receiving the copy of the petition, the county auditor shall provide
to the county voter registration office a statement verifying:
(A) whether a person who signed the petition as a registered
voter but is not a registered voter, as determined by the county
voter registration office, is the owner of property in the
political subdivision; and
(B) whether a person who signed the petition as an owner of
property within the political subdivision does in fact own
property within the political subdivision.
(9) The county voter registration office, not more than ten (10)
business days after determining that at least one hundred
twenty-five (125) persons who signed the petition are registered
voters or after receiving the statement from the county auditor
under subdivision (8) (as applicable), shall make the final
determination of whether a sufficient number of persons have
signed the petition. Whenever the name of an individual who
signs a petition form as a registered voter contains a minor
variation from the name of the registered voter as set forth in the
records of the county voter registration office, the signature is
presumed to be valid, and there is a presumption that the
individual is entitled to sign the petition under this section. Except
as otherwise provided in this chapter, in determining whether an
individual is a registered voter, the county voter registration office
shall apply the requirements and procedures used under IC 3 to
determine whether a person is a registered voter for purposes of
voting in an election governed by IC 3. However, an individual is
not required to comply with the provisions concerning providing
proof of identification to be considered a registered voter for
purposes of this chapter. A person is entitled to sign a petition
only one (1) time in a particular referendum process under this
chapter, regardless of whether the person owns more than one (1)
parcel of real property, mobile home assessed as personal
property, or manufactured home assessed as personal property or
a combination of those types of property within the political
subdivision and regardless of whether the person is both a
registered voter in the political subdivision and the owner of
property within the political subdivision. Notwithstanding any
other provision of this section, if a petition is presented to the
county voter registration office within forty-five (45) days before
an election, the county voter registration office may defer acting
on the petition, and the time requirements under this section for
action by the county voter registration office do not begin to run
until five (5) days after the date of the election.
(10) The county voter registration office must file a certificate and
each petition with:
(A) the township trustee, if the political subdivision is a
township, who shall present the petition or petitions to the
township board; or
(B) the body that has the authority to authorize the issuance of
the bonds or the execution of a lease, if the political
subdivision is not a township;
within thirty-five (35) business days of the filing of the petition
requesting the referendum process. The certificate must state the
number of petitioners who are owners of property within the
political subdivision and the number of petitioners who are
registered voters residing within the political subdivision.
(11) If a sufficient petition requesting the local public question
process is not filed by owners of property or registered voters as
set forth in this section, the political subdivision may issue bonds
or enter into a lease by following the provisions of law relating to
the bonds to be issued or lease to be entered into.
(c) If the proper officers of a political subdivision make a
preliminary determination to issue bonds or enter into a lease, the
officers shall provide to the county auditor:
(1) a copy of the notice required by subsection (b)(2); and
(2) any other information the county auditor requires to fulfill the
county auditor's duties under section 3.6 of this chapter.
(b) The application of the credit under this chapter results in a reduction of the property tax collections of each political subdivision in which the credit is applied. Except as provided in IC 20-46-1, a political subdivision may not increase its property tax levy to make up
for that reduction.
(c) The county auditor shall in each calendar year notify each
political subdivision in which the credit under this chapter is applied
of the reduction of property tax collections referred to in subsection (b)
for the political subdivision for that year.
(d) (c) A political subdivision may not borrow money to compensate
the political subdivision or any other political subdivision for the
reduction of property tax collections referred to in subsection (b).
(b) At least twenty-one (21) days before the application for judgment is made, the county auditor shall
(1) certified mail, return receipt requested, to the mortgagee's last known address; or
(2) personal service upon the mortgagee.
(c)
(b) The plan of reorganization must include at least the following:
(1) The name and a description of the reorganized political subdivision that will succeed the reorganizing political subdivisions.
(2) A description of the boundaries of the reorganized political subdivision.
(3) Subject to section 40 of this chapter, a description of the taxing areas in which taxes to retire obligations of the reorganizing political subdivisions will be imposed.
(4) A description of the membership of the legislative body, fiscal body, and executive of the reorganized political subdivision, a description of the election districts or appointment districts from which officers will be elected or appointed, and the manner in which the membership of each elected or appointed office will be elected or appointed.
(5) A description of the services to be offered by the reorganized political subdivision and the service areas in which the services will be offered.
(6) The disposition of the personnel, the agreements, the assets, and, subject to section 40 of this chapter, the liabilities of the reorganizing political subdivisions, including the terms and conditions upon which the transfer of property and personnel will be achieved.
(7) Any other matter that the:
(A) reorganization committee determines to be necessary or appropriate; or
(B) legislative bodies of the reorganizing political subdivisions require the reorganization committee;
to include in the plan of reorganization.
(8) In the case of a reorganization described in section 1(a)(9) of this chapter, if the legislative bodies of the reorganizing political subdivisions have specified that the vote on the public question regarding the reorganization shall be conducted on a countywide basis under section 30(b) of this chapter with a rejection threshold, the reorganization committee shall include in the reorganization plan a rejection threshold, specified as a percentage, that applies for purposes of section 32(b) of this chapter. The rejection threshold must be the same for each municipality that is a party to the proposed reorganization and to the county that is a party to the proposed reorganization.
(9) In the case of a reorganization described in section 1(a)(9) of this chapter, the reorganization committee shall determine and
include in the reorganization plan the percentage of voters voting
on the public question regarding the proposed reorganization who
must vote, on a countywide basis, in favor of the proposed
reorganization for the public question to be approved. This
percentage is referred to in this chapter as the "countywide vote
approval percentage". The countywide vote approval percentage
must be greater than fifty percent (50%).
(10) The statement fiscal impact analysis required by subsection
(e).
(c) In the case of a reorganization described in section 1(a)(9) of this
chapter, the reorganization committee may not change the decision of
the legislative bodies of the reorganizing political subdivisions
regarding whether the vote on the public question regarding the
reorganization shall be conducted on a countywide basis without a
rejection threshold or with a rejection threshold.
(d) Upon completion of the plan of reorganization, the
reorganization committee shall present the plan of reorganization to the
legislative body of each of the reorganizing political subdivisions for
adoption. The initial plan of reorganization must be submitted to the
legislative body of each of the reorganizing political subdivisions not
later than one (1) year after the clerk of the last political subdivision
that adopts a reorganization resolution under this chapter has certified
the resolution to all of the political subdivisions named in the
resolution. In the case of a plan of reorganization submitted to a
political subdivision by a reorganization committee after June 30, 2010,
the political subdivision shall post a copy of the plan of reorganization
on an Internet web site maintained or authorized by the political
subdivision not more than thirty (30) days after receiving the plan of
reorganization from the reorganization committee.
(e) A reorganization committee must include in the plan of
reorganization submitted to a political subdivision after June 30, 2010,
a statement of:
(1) whether a fiscal impact analysis concerning the proposed
reorganization has been prepared or has not been prepared by or
on behalf of the reorganization committee; and
(2) whether a fiscal impact analysis concerning the proposed
reorganization has been made available or has not been made
available to the public by or on behalf of the reorganization
committee.
(e) In the case of a plan of reorganization submitted to a
political subdivision by a reorganization committee after June 30,
2013, the reorganization committee shall also prepare a fiscal
impact analysis concerning the proposed reorganization. The fiscal
impact analysis must include the following:
(1) The cost estimates of planned services to be provided in
each taxing area of the reorganized political subdivision.
(2) For each taxing area of the reorganized political
subdivision, anticipated net assessed value and a list of each
fund to which the taxing area would contribute.
(3) The method or methods of financing the planned services.
The plan must explain how specific and detailed expenses will
be funded and must indicate the taxes, grants, and other
funding used.
(4) Estimates of maximum levies, budgets, and tax rates of the
reorganized political subdivision by fund.
(5) The plan for the reorganization and extension of services
to portions of the reorganized political subdivision.
(6) The plan for providing or continuing services to parts of
the reorganizing political subdivision that will not be a part of
the reorganized political subdivision.
(f) The fiscal impact analysis required by subsection (e) must be
submitted to the political subdivision at the same time the plan of
reorganization is presented to the political subdivision under
subsection (d). The political subdivision shall post a copy of the
fiscal impact analysis on an Internet web site maintained or
authorized by the political subdivision not more than thirty (30)
days after receiving the fiscal impact analysis from the
reorganization committee.
(b) Subject to section 14.5 of this chapter, if the legislative body finds that a need for fire and emergency services or other emergency exists, it may issue a special order, entered and signed on the record, authorizing the executive to borrow a specified amount of money sufficient to meet the emergency. However, the legislative body may not authorize the executive to borrow money under this subsection in more than three (3) calendar years during any five (5) year period.
(c) Notwithstanding IC 36-8-13-4(a), the legislative body may
authorize the executive to borrow a specified sum from a township
fund other than the township firefighting fund if the legislative body
finds that the emergency requiring the expenditure of money is related
to paying the operating expenses of a township fire department or a
volunteer fire department. At its next annual session, the legislative
body shall cover the debt created by making a levy to the credit of the
fund for which the amount was borrowed under this subsection.
(d) In determining whether a fire and emergency services need
exists requiring the expenditure of money not included in the
township's budget estimates and levy, the legislative body and any
reviewing authority considering the approval of the additional
borrowing shall consider the following factors:
(1) The current and projected certified and noncertified public
safety payroll needs of the township.
(2) The current and projected need for fire and emergency
services within the jurisdiction served by the township.
(3) Any applicable national standards or recommendations for the
provision of fire protection and emergency services.
(4) Current and projected growth in the number of residents and
other citizens served by the township, emergency service runs,
certified and noncertified personnel, and other appropriate
measures of public safety needs in the jurisdiction served by the
township.
(5) Salary comparisons for certified and noncertified public safety
personnel in the township and other surrounding or comparable
jurisdictions.
(6) Prior annual expenditures for fire and emergency services,
including all amounts budgeted under this chapter.
(7) Current and projected growth in the assessed value of property
requiring protection in the jurisdiction served by the township.
(8) Other factors directly related to the provision of public safety
within the jurisdiction served by the township.
(e) In the event the township received additional funds under this
chapter in the immediately preceding budget year for an approved
expenditure, any reviewing authority shall take into consideration the
use of the funds in the immediately preceding budget year and the
continued need for funding the services and operations to be funded
with the proceeds of the loan.
"Allocation area" means that part of a redevelopment project area
to which an allocation provision of a declaratory resolution adopted
under section 15 of this chapter refers for purposes of distribution and
allocation of property taxes.
"Base assessed value" means the following:
(1) If an allocation provision is adopted after June 30, 1995, in a
declaratory resolution or an amendment to a declaratory
resolution establishing an economic development area:
(A) the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A), the net
assessed value of property that is assessed as residential
property under the rules of the department of local government
finance, as finally determined for any assessment date after the
effective date of the allocation provision.
(2) If an allocation provision is adopted after June 30, 1997, in a
declaratory resolution or an amendment to a declaratory
resolution establishing a redevelopment project area:
(A) the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A), the net
assessed value of property that is assessed as residential
property under the rules of the department of local government
finance, as finally determined for any assessment date after the
effective date of the allocation provision.
(3) If:
(A) an allocation provision adopted before June 30, 1995, in
a declaratory resolution or an amendment to a declaratory
resolution establishing a redevelopment project area expires
after June 30, 1997; and
(B) after June 30, 1997, a new allocation provision is included
in an amendment to the declaratory resolution;
the net assessed value of all the property as finally determined for
the assessment date immediately preceding the effective date of
the allocation provision adopted after June 30, 1997, as adjusted
under subsection (h).
(4) Except as provided in subdivision (5), for all other allocation
areas, the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h).
(5) If an allocation area established in an economic development
area before July 1, 1995, is expanded after June 30, 1995, the
definition in subdivision (1) applies to the expanded part of the
area added after June 30, 1995.
(6) If an allocation area established in a redevelopment project
area before July 1, 1997, is expanded after June 30, 1997, the
definition in subdivision (2) applies to the expanded part of the
area added after June 30, 1997.
Except as provided in section 39.3 of this chapter, "property taxes"
means taxes imposed under IC 6-1.1 on real property. However, upon
approval by a resolution of the redevelopment commission adopted
before June 1, 1987, "property taxes" also includes taxes imposed
under IC 6-1.1 on depreciable personal property. If a redevelopment
commission adopted before June 1, 1987, a resolution to include within
the definition of property taxes taxes imposed under IC 6-1.1 on
depreciable personal property that has a useful life in excess of eight
(8) years, the commission may by resolution determine the percentage
of taxes imposed under IC 6-1.1 on all depreciable personal property
that will be included within the definition of property taxes. However,
the percentage included must not exceed twenty-five percent (25%) of
the taxes imposed under IC 6-1.1 on all depreciable personal property.
(b) A declaratory resolution adopted under section 15 of this chapter
on or before the allocation deadline determined under subsection (i)
may include a provision with respect to the allocation and distribution
of property taxes for the purposes and in the manner provided in this
section. A declaratory resolution previously adopted may include an
allocation provision by the amendment of that declaratory resolution on
or before the allocation deadline determined under subsection (i) in
accordance with the procedures required for its original adoption. A
declaratory resolution or an amendment that establishes an allocation
provision after June 30, 1995, must specify an expiration date for the
allocation provision. For an allocation area established before July 1,
2008, the expiration date may not be more than thirty (30) years after
the date on which the allocation provision is established. For an
allocation area established after June 30, 2008, the expiration date may
not be more than twenty-five (25) years after the date on which the first
obligation was incurred to pay principal and interest on bonds or lease
rentals on leases payable from tax increment revenues. However, with
respect to bonds or other obligations that were issued before July 1,
2008, if any of the bonds or other obligations that were scheduled when
issued to mature before the specified expiration date and that are
payable only from allocated tax proceeds with respect to the allocation
area remain outstanding as of the expiration date, the allocation
provision does not expire until all of the bonds or other obligations are
no longer outstanding. The allocation provision may apply to all or part
of the redevelopment project area. The allocation provision must
require that any property taxes subsequently levied by or for the benefit
of any public body entitled to a distribution of property taxes on taxable
property in the allocation area be allocated and distributed as follows:
(1) Except as otherwise provided in this section, the proceeds of
the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made;
or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
the respective taxing units.
(2) The excess of the proceeds of the property taxes imposed for
the assessment date with respect to which the allocation and
distribution is made that are attributable to taxes imposed after
being approved by the voters in a referendum or local public
question conducted after April 30, 2010, not otherwise included
in subdivision (1) shall be allocated to and, when collected, paid
into the funds of the taxing unit for which the referendum or local
public question was conducted.
(3) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivisions (1) and (2)
shall be allocated to the redevelopment district and, when
collected, paid into an allocation fund for that allocation area that
may be used by the redevelopment district only to do one (1) or
more of the following:
(A) Pay the principal of and interest on any obligations
payable solely from allocated tax proceeds which are incurred
by the redevelopment district for the purpose of financing or
refinancing the redevelopment of that allocation area.
(B) Establish, augment, or restore the debt service reserve for
bonds payable solely or in part from allocated tax proceeds in
that allocation area.
(C) Pay the principal of and interest on bonds payable from
allocated tax proceeds in that allocation area and from the
special tax levied under section 27 of this chapter.
(D) Pay the principal of and interest on bonds issued by the
unit to pay for local public improvements that are physically
located in or physically connected to that allocation area.
(E) Pay premiums on the redemption before maturity of bonds
payable solely or in part from allocated tax proceeds in that
allocation area.
(F) Make payments on leases payable from allocated tax
proceeds in that allocation area under section 25.2 of this
chapter.
(G) Reimburse the unit for expenditures made by it for local
public improvements (which include buildings, parking
facilities, and other items described in section 25.1(a) of this
chapter) that are physically located in or physically connected
to that allocation area.
(H) Reimburse the unit for rentals paid by it for a building or
parking facility that is physically located in or physically
connected to that allocation area under any lease entered into
under IC 36-1-10.
(I) For property taxes first due and payable before January 1,
2009, pay all or a part of a property tax replacement credit to
taxpayers in an allocation area as determined by the
redevelopment commission. This credit equals the amount
determined under the following STEPS for each taxpayer in a
taxing district (as defined in IC 6-1.1-1-20) that contains all or
part of the allocation area:
STEP ONE: Determine that part of the sum of the amounts
under IC 6-1.1-21-2(g)(1)(A), IC 6-1.1-21-2(g)(2),
IC 6-1.1-21-2(g)(3), IC 6-1.1-21-2(g)(4), and
IC 6-1.1-21-2(g)(5) (before their repeal) that is attributable to
the taxing district.
STEP TWO: Divide:
(i) that part of each county's eligible property tax
replacement amount (as defined in IC 6-1.1-21-2 (before its
repeal)) for that year as determined under IC 6-1.1-21-4
(before its repeal) that is attributable to the taxing district;
by
(ii) the STEP ONE sum.
STEP THREE: Multiply:
(i) the STEP TWO quotient; times
(ii) the total amount of the taxpayer's taxes (as defined in
IC 6-1.1-21-2 (before its repeal)) levied in the taxing district
that have been allocated during that year to an allocation
fund under this section.
If not all the taxpayers in an allocation area receive the credit in full, each taxpayer in the allocation area is entitled to receive the same proportion of the credit. A taxpayer may not receive a credit under this section and a credit under section 39.5 of this chapter (before its repeal) in the same year.
(J) Pay expenses incurred by the redevelopment commission for local public improvements that are in the allocation area or serving the allocation area. Public improvements include buildings, parking facilities, and other items described in section 25.1(a) of this chapter.
(K) Reimburse public and private entities for expenses incurred in training employees of industrial facilities that are located:
(i) in the allocation area; and
(ii) on a parcel of real property that has been classified as industrial property under the rules of the department of local government finance.
However, the total amount of money spent for this purpose in any year may not exceed the total amount of money in the allocation fund that is attributable to property taxes paid by the industrial facilities described in this clause. The reimbursements under this clause must be made within three (3) years after the date on which the investments that are the basis for the increment financing are made.
(L) Pay the costs of carrying out an eligible efficiency project (as defined in IC 36-9-41-1.5) within the unit that established the redevelopment commission. However, property tax proceeds may be used under this clause to pay the costs of carrying out an eligible efficiency project only if those property tax proceeds exceed the amount necessary to do the following:
(i) Make, when due, any payments required under clauses (A) through (K), including any payments of principal and interest on bonds and other obligations payable under this subdivision, any payments of premiums under this subdivision on the redemption before maturity of bonds, and any payments on leases payable under this subdivision.
(ii) Make any reimbursements required under this subdivision.
(iii) Pay any expenses required under this subdivision.
(iv) Establish, augment, or restore any debt service reserve under this subdivision.
The allocation fund may not be used for operating expenses of the commission.
(4) Except as provided in subsection (g), before July 15 of each year, the commission shall do the following:
(A) Determine the amount, if any, by which the assessed value of the taxable property in the allocation area for the most recent assessment date minus the base assessed value, when multiplied by the estimated tax rate of the allocation area, will exceed the amount of assessed value needed to produce the property taxes necessary to make, when due, principal and interest payments on bonds described in subdivision (3), plus the amount necessary for other purposes described in subdivision (3).
(B) Provide a written notice to the county auditor, the fiscal body of the county or municipality that established the department of redevelopment, and the officers who are authorized to fix budgets, tax rates, and tax levies under IC 6-1.1-17-5 for each of the other taxing units that is wholly or partly located within the allocation area. The notice must:
(i) state the amount, if any, of excess assessed value that the commission has determined may be allocated to the respective taxing units in the manner prescribed in subdivision (1); or
(ii) state that the commission has determined that there is no excess assessed value that may be allocated to the respective taxing units in the manner prescribed in subdivision (1).
The county auditor shall allocate to the respective taxing units the amount, if any, of excess assessed value determined by the commission. The commission may not authorize an allocation of assessed value to the respective taxing units under this subdivision if to do so would endanger the interests of the holders of bonds described in subdivision (3) or lessors under section 25.3 of this chapter.
(c) For the purpose of allocating taxes levied by or for any taxing unit or units, the assessed value of taxable property in a territory in the allocation area that is annexed by any taxing unit after the effective date of the allocation provision of the declaratory resolution is the lesser of:
(1) the assessed value of the property for the assessment date with respect to which the allocation and distribution is made; or
(2) the base assessed value.
(d) Property tax proceeds allocable to the redevelopment district
under subsection (b)(3) may, subject to subsection (b)(4), be
irrevocably pledged by the redevelopment district for payment as set
forth in subsection (b)(3).
(e) Notwithstanding any other law, each assessor shall, upon
petition of the redevelopment commission, reassess the taxable
property situated upon or in, or added to, the allocation area, effective
on the next assessment date after the petition.
(f) Notwithstanding any other law, the assessed value of all taxable
property in the allocation area, for purposes of tax limitation, property
tax replacement, and formulation of the budget, tax rate, and tax levy
for each political subdivision in which the property is located is the
lesser of:
(1) the assessed value of the property as valued without regard to
this section; or
(2) the base assessed value.
(g) If any part of the allocation area is located in an enterprise zone
created under IC 5-28-15, the unit that designated the allocation area
shall create funds as specified in this subsection. A unit that has
obligations, bonds, or leases payable from allocated tax proceeds under
subsection (b)(3) shall establish an allocation fund for the purposes
specified in subsection (b)(3) and a special zone fund. Such a unit
shall, until the end of the enterprise zone phase out period, deposit each
year in the special zone fund any amount in the allocation fund derived
from property tax proceeds in excess of those described in subsection
(b)(1) and (b)(2) from property located in the enterprise zone that
exceeds the amount sufficient for the purposes specified in subsection
(b)(3) for the year. The amount sufficient for purposes specified in
subsection (b)(3) for the year shall be determined based on the pro rata
portion of such current property tax proceeds from the part of the
enterprise zone that is within the allocation area as compared to all
such current property tax proceeds derived from the allocation area. A
unit that has no obligations, bonds, or leases payable from allocated tax
proceeds under subsection (b)(3) shall establish a special zone fund
and deposit all the property tax proceeds in excess of those described
in subsection (b)(1) and (b)(2) in the fund derived from property tax
proceeds in excess of those described in subsection (b)(1) and (b)(2)
from property located in the enterprise zone. The unit that creates the
special zone fund shall use the fund (based on the recommendations of
the urban enterprise association) for programs in job training, job
enrichment, and basic skill development that are designed to benefit
residents and employers in the enterprise zone or other purposes
specified in subsection (b)(3), except that where reference is made in
subsection (b)(3) to allocation area it shall refer for purposes of
payments from the special zone fund only to that part of the allocation
area that is also located in the enterprise zone. Those programs shall
reserve at least one-half (1/2) of their enrollment in any session for
residents of the enterprise zone.
(h) The state board of accounts and department of local government
finance shall make the rules and prescribe the forms and procedures
that they consider expedient for the implementation of this chapter.
After each general reassessment of real property in an area under
IC 6-1.1-4-4 and after each reassessment in an area under a
reassessment plan prepared under IC 6-1.1-4-4.2, the department of
local government finance shall adjust the base assessed value one (1)
time to neutralize any effect of the reassessment of the real property in
the area on the property tax proceeds allocated to the redevelopment
district under this section. After each annual adjustment under
IC 6-1.1-4-4.5, the department of local government finance shall adjust
the base assessed value one (1) time to neutralize any effect of the
annual adjustment on the property tax proceeds allocated to the
redevelopment district under this section. However, the adjustments
under this subsection may not include the effect of property tax
abatements under IC 6-1.1-12.1, and these adjustments may not
produce less property tax proceeds allocable to the redevelopment
district under subsection (b)(3) than would otherwise have been
received if the general reassessment, the reassessment under the
reassessment plan, or the annual adjustment had not occurred.
decrease base assessed value only to the extent that assessed values
in the allocation area have been decreased due to annual
adjustments or the reassessment under the reassessment plan. The
department of local government finance may prescribe procedures for
county and township officials to follow to assist the department in
making the adjustments.
(i) The allocation deadline referred to in subsection (b) is
determined in the following manner:
(1) The initial allocation deadline is December 31, 2011.
(2) Subject to subdivision (3), the initial allocation deadline and
subsequent allocation deadlines are automatically extended in
increments of five (5) years, so that allocation deadlines
subsequent to the initial allocation deadline fall on December 31,
2016, and December 31 of each fifth year thereafter.
(3) At least one (1) year before the date of an allocation deadline
determined under subdivision (2), the general assembly may enact
a law that:
(A) terminates the automatic extension of allocation deadlines under subdivision (2); and
(B) specifically designates a particular date as the final allocation deadline.
(b) This SECTION expires January 1, 2016.
