Bill Text: IN SB0517 | 2013 | Regular Session | Enrolled
Bill Title: Local government finance.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Passed) 2013-05-13 - Public Law 257 [SB0517 Detail]
Download: Indiana-2013-SB0517-Enrolled.html
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
AN ACT to amend the Indiana Code concerning local government.
Be it enacted by the General Assembly of the State of Indiana:
(b) As used in this section, "increment" means the annual difference between:
(1) the annual debt service payment for the bonds proposed to be retired or refunded; and
(2) the annual debt service payment for the proposed refunding bonds;
for each year that the bonds that are being retired or refunded would have been outstanding.
(c) In order for a school corporation to be an eligible school corporation under this section, the school corporation must determine that the percentage computed under this subsection for the school corporation is at least twenty percent (20%),
year for which the latest certified levies have been determined. A
school corporation shall compute its percentage as follows:
(1) Compute the amount of credits granted under IC 6-1.1-20.6
against the school corporation's combined levy for the school
corporation's:
(A) debt service fund, as described in IC 20-46-7-15;
(B) capital projects fund;
(C) transportation fund;
(D) school bus replacement fund; and
(E) racial balance fund.
(2) Compute the school corporation's combined levy for the
school corporation's:
(A) capital projects fund;
(B) transportation fund;
(C) school bus replacement fund; and
(D) racial balance fund.
(3) Divide the amount computed under subdivision (1) by the
amount computed under subdivision (2) and express it as a
percentage.
A school corporation that desires to be an eligible school corporation
under this section must submit a written request for a certification by
the department of local government finance that the computation of the
school corporation's percentage computed under this subsection is
correct. The department of local government finance shall, not later
than ten (10) working days after the date the department receives the
school corporation's request, certify the percentage computed under
this subsection for the school corporation.
(d) A school corporation that desires to be an eligible school
corporation under this section must satisfy the following conditions:
(1) The school corporation shall conduct a public hearing and
provide notice of the time, date, and place of the hearing,
published as required by IC 5-3-1, before the school corporation
may adopt a resolution under this section. At the public hearing,
the governing body must provide the following information:
(A) The annual debt service payments, applicable debt service
tax rate, and total debt service payments for the bonds
proposed to be retired or refunded.
(B) The annual debt service payments, applicable debt service
fund tax rate, and total debt service payments for the proposed
refunding bonds.
(C) The annual increment for each year that the bonds that are
being retired or refunded would have been outstanding and
any other benefits to be derived from issuing the refunding
bonds.
(2) The requirements of this subdivision do not apply to a school
corporation that adopts a resolution under subsection (g) before
January 1, 2014, and that has a percentage computed under
subsection (c) that is at least twenty percent (20%), as certified by
the department of local government finance. If the amount
determined under subsection (c)(3) is:
(A) more than forty-five percent (45%), notwithstanding
IC 6-1.1-20-3.1(a) and IC 6-1.1-20-3.2(a), the school
corporation shall use the petition and remonstrance process
prescribed by IC 6-1.1-20-3.1(b) and IC 6-1.1-20-3.2(b) and
more individuals must sign the petition for the bond refunding
under this section than the number of individuals signing a
remonstrance against the bond refunding; or
(B) at least thirty percent (30%) but not more than forty-five
percent (45%), the school corporation shall conduct a
referendum on a public question regarding the bond refunding
using the process for a referendum tax levy under IC 20-46-1
and the bond refunding must be approved by the eligible
voters of the school corporation. The question to be submitted
to the voters in the referendum must read as follows:
"Shall ________ (insert the name of the school corporation)
issue refunding bonds to refund not more than fifty percent
(50%) of its outstanding bonds to provide an annual savings
to the school's debt service fund that can be transferred from
the school's debt service fund to the school's capital projects
fund, transportation fund, or school bus replacement fund?".
(3) The requirements of this subdivision apply to a school
corporation that adopts a resolution under subsection (g) before
January 1, 2014, and that has a percentage computed under
subsection (c) that is at least twenty percent (20%), as certified by
the department of local government finance. The school
corporation must either:
(A) have the distressed unit appeal board approve the school
corporation's financial plan for paying any refunding bonds
issued under this section, as provided in subsection (e); or
(B) meet all of the following conditions:
(i) The ratio that the amount of the school corporation's debt
(as determined in December 2010) bears to the school
corporation's 2011 ADM ranks in the ten (10) highest
among all school corporations.
(ii) The ratio that the amount of the school corporation's debt
(as determined in December 2010) bears to the school
corporation's total assessed valuation for calendar year 2011
ranks in the ten (10) highest among all school corporations.
(iii) The amount of homestead assessed valuation in the
school corporation for calendar year 2011 was at least sixty
percent (60%) of the total amount of assessed valuation in
the school corporation for calendar year 2011.
(e) A school corporation meets the requirement of subsection
(d)(3)(A) if:
(1) the school corporation submits to the distressed unit appeal
board the school corporation's financial plan for paying any
refunding bonds issued under this section; and
(2) the distressed unit appeal board approves the plan after
making a determination that the financial plan is feasible.
The distressed unit appeal board must either approve or disapprove the
financial plan not more than sixty (60) days after the later of the date
the school corporation submits the financial plan under this subsection
or the date on which the department of local government finance
certifies the percentage computed for the school corporation under
subsection (c). The distressed unit appeal board may not unreasonably
deny approval of a school corporation's financial plan under this
subsection.
(f) Except as provided in subsection (d)(2)(A), IC 6-1.1-20 does not
apply to bonds issued under this section.
(g) A school corporation that desires to be an eligible school
corporation under this section must, before July 1, 2013, January 1,
2014, and notwithstanding any other law, adopt a resolution that sets
forth the following:
(1) The determinations made under subsection (c), including the
department of local government finance's certification of the
percentage computed under subsection (c).
(2) The requirements of this subdivision do not apply to a
resolution adopted under this subsection before January 1, 2014,
if the school corporation has a percentage computed under
subsection (c) that is at least twenty percent (20%), as certified by
the department of local government finance. The result of the
petition remonstrance process under subsection (d)(2)(A) or the
result of the vote on the public question under subsection
(d)(2)(B), whichever applies.
(3) A determination providing for the:
(A) issuance of bonds to refund not more than fifty percent
(50%) of outstanding bonds or leases issued by or on behalf of
the school corporation; and
(B) payment of redemption premiums and the costs of the
refunding.
(4) With respect to the refunding bonds, the following:
(A) The maximum principal amount.
(B) The maximum interest rate.
(C) The annual lease or debt service payment.
(D) The final maturity date.
(E) The estimated amount of the increment that will occur for
each year that the bonds that are being retired or refunded by
the issuance of refunding bonds would have been outstanding.
(F) A finding that the annual debt service or lease payment on
the refunding bonds will not increase the annual debt service
or lease payment above the annual debt service or lease
payment approved by the school corporation for the original
project.
If the governing body adopts a resolution under this section, the
governing body must publish notice of the adoption of the resolution
as required by IC 5-3-1.
(h) An eligible school corporation may issue refunding bonds as
permitted by this section. In addition, an eligible school corporation
may extend the repayment period beyond the repayment period for the
bonds that are being retired or refunded by the issuance of refunding
bonds. However, the repayment period may be extended only once for
a particular bond, and the extension may not exceed ten (10) years after
the latest maturity date for any of the bonds being retired or refunded
by the eligible school corporation under this section.
(i) Property taxes imposed by an eligible school corporation to pay
debt service for bonds permitted by this section shall be considered for
purposes of calculating the limits to property tax liability under Article
10, Section 1 of the Constitution of the State of Indiana and for
calculating a person's credit under IC 6-1.1-20.6-7.5. However,
property taxes imposed by an eligible school corporation through
December 31, 2019, to pay debt service for bonds permitted by this
section may not be considered in an eligible county, as used in Article
10, Section 1(h) of the Constitution of the State of Indiana, for purposes
of calculating the limits to property tax liability under Article 10,
Section 1 of the Constitution of the State of Indiana or for calculating
a person's credit under IC 6-1.1-20.6-7.5.
(j) If a school corporation described in subsection (d)(3)(B) issues
refunding bonds as permitted by this section, the school corporation
must, not more than sixty (60) days after the department of local
government finance certifies the school corporation's percentage under
subsection (c), report information concerning the refunding to the
distressed unit appeal board. The distressed unit appeal board shall
make a non-binding review with recommendations regarding the
school's financial condition and operating practices.
SECTION 2. IC 6-1.1-3-24, AS ADDED BY P.L.137-2012,
SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 24. (a) In determining the assessed value of
various sizes of outdoor advertising signs for the 2011 through 2014
2016 assessment dates, a taxpayer and assessing official shall use the
following table without any adjustments:
Single Pole Structure
Type of Sign Value Per Structure
At least 48 feet, illuminated $5,000
At least 48 feet, non-illuminated $4,000
At least 26 feet and under 48 feet, illuminated $4,000
At least 26 feet and under 48 feet,
non-illuminated $3,300
Under 26 feet, illuminated $3,200
Under 26 feet, non-illuminated $2,600
Other Types of Outdoor Signs
At least 50 feet, illuminated $2,500
At least 50 feet, non-illuminated $1,500
At least 40 feet and under 50 feet, illuminated $2,000
At least 40 feet and under 50 feet,
non-illuminated $1,300
At least 30 feet and under 40 feet, illuminated $2,000
At least 30 feet and under 40 feet,
non-illuminated $1,300
At least 20 feet and under 30 feet, illuminated $1,600
At least 20 feet and under 30 feet,
non-illuminated $1,000
Under 20 feet, illuminated $1,600
Under 20 feet, non-illuminated $1,000
SECTION 3. IC 6-1.1-10-2 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2014]: Sec. 2. (a) Except as otherwise provided by law, the property owned by this state, a state agency, or the bureau of motor vehicles commission is exempt from property taxation.
(b) Real property leased to a state agency is exempt from property taxes if the lease, regardless of the commencement date, requires the state agency to reimburse the owner for property taxes. If a state agency leases less than all of a parcel of real property, the exemption provided by this subsection is a partial exemption that is equal to the part of the gross assessed value of the real property attributable to the part of the real property leased by the state agency.
SECTION 4. IC 6-1.1-10-45 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2014]: Sec. 45. (a) Tangible personal property consisting of a sign that is manufactured for the Indiana department of transportation in order for the department to comply with 23 U.S.C. 131 is exempt from personal property taxation.
(b) The owner of personal property that wishes to obtain the exemption provided by this section must file an exemption claim along with the owner's annual personal property tax return. The claim must describe and state the assessed value of the personal property for which an exemption is claimed.
(c) The township or county assessor shall:
(1) review the exemption claim; and
(2) allow or deny the exemption claim in whole or in part.
The assessor's action is subject to all the provisions of this article pertaining to notice, review, or appeal of personal property assessments.
(d) The township or county assessor shall reduce the assessed value of the owner's personal property for the year for which the exemption is claimed by the amount of exemption allowed.
SECTION 5. IC 6-1.1-14-12 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 12. (a) As part of the review under IC 6-1.1-33.5-3(4) and IC 6-1.1-33.5-3(5) of the coefficient of dispersion study and property sales assessment ratio study submitted by a county under 50 IAC 27-4-4, the department of local government finance shall conduct the review and analysis described in this section.
(b) The department shall:
(1) conduct its review and analysis for studies submitted in 2013 through 2017; and
(2) review and analyze only data and studies for property that is classified as improved residential property in townships having a population of more than one hundred thirty thousand (130,000).
(c) The department shall separate each township described in subsection (b) into four (4) comparable groups of parcels as determined by the department. The department shall:
(1) separately review and analyze for each group of parcels data used for the coefficient of dispersion study and the property sales assessment ratio study submitted by the county; and
(2) prepare a coefficient of dispersion study and a property sales assessment ratio study for each group of parcels.
SECTION 6. IC 6-1.1-15-1, AS AMENDED BY P.L.146-2012, SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 1. (a) A taxpayer may obtain a review by the county board of a county or township official's action with respect to either or both of the following:
(1) The assessment of the taxpayer's tangible property.
(2) A deduction for which a review under this section is
authorized by any of the following:
(A) IC 6-1.1-12-25.5.
(B) IC 6-1.1-12-28.5.
(C) IC 6-1.1-12-35.5.
(D) IC 6-1.1-12.1-5.
(E) IC 6-1.1-12.1-5.3.
(F) IC 6-1.1-12.1-5.4.
(b) At the time that notice of an action referred to in subsection (a)
is given to the taxpayer, the taxpayer shall also be informed in writing
of:
(1) the opportunity for a review under this section, including a
preliminary informal meeting under subsection (h)(2) with the
county or township official referred to in this subsection; and
(2) the procedures the taxpayer must follow in order to obtain a
review under this section.
(c) In order to obtain a review of an assessment or deduction
effective for the assessment date to which the notice referred to in
subsection (b) applies, the taxpayer must file a notice in writing with
the county or township official referred to in subsection (a) not later
than forty-five (45) days after the date of the notice referred to in
subsection (b).
(d) A taxpayer may obtain a review by the county board of the
assessment of the taxpayer's tangible property effective for an
assessment date for which a notice of assessment is not given as
described in subsection (b). To obtain the review, the taxpayer must file
a notice in writing with the township assessor, or the county assessor
if the township is not served by a township assessor. The right of a
taxpayer to obtain a review under this subsection for an assessment
date for which a notice of assessment is not given does not relieve an
assessing official of the duty to provide the taxpayer with the notice of
assessment as otherwise required by this article. The notice to obtain
a review must be filed not later than the later of:
(1) May 10 of the year; or
(2) forty-five (45) days after the date of the tax statement mailed
by the county treasurer, regardless of whether the assessing
official changes the taxpayer's assessment.
(e) A change in an assessment made as a result of a notice for
review filed by a taxpayer under subsection (d) after the time
prescribed in subsection (d) becomes effective for the next assessment
date. A change in an assessment made as a result of a notice for review
filed by a taxpayer under subsection (c) or (d) remains in effect from
the assessment date for which the change is made until the next
assessment date for which the assessment is changed under this article.
(f) The written notice filed by a taxpayer under subsection (c) or (d)
must include the following information:
(1) The name of the taxpayer.
(2) The address and parcel or key number of the property.
(3) The address and telephone number of the taxpayer.
(g) The filing of a notice under subsection (c) or (d):
(1) initiates a review under this section; and
(2) constitutes a request by the taxpayer for a preliminary
informal meeting with the official referred to in subsection (a).
(h) A county or township official who receives a notice for review
filed by a taxpayer under subsection (c) or (d) shall:
(1) immediately forward the notice to the county board; and
(2) attempt to hold a preliminary informal meeting with the
taxpayer to resolve as many issues as possible by:
(A) discussing the specifics of the taxpayer's assessment or
deduction;
(B) reviewing the taxpayer's property record card;
(C) explaining to the taxpayer how the assessment or
deduction was determined;
(D) providing to the taxpayer information about the statutes,
rules, and guidelines that govern the determination of the
assessment or deduction;
(E) noting and considering objections of the taxpayer;
(F) considering all errors alleged by the taxpayer; and
(G) otherwise educating the taxpayer about:
(i) the taxpayer's assessment or deduction;
(ii) the assessment or deduction process; and
(iii) the assessment or deduction appeal process.
(i) Not later than ten (10) days after the informal preliminary
meeting, the official referred to in subsection (a) shall forward to the
county auditor and the county board the results of the conference on a
form prescribed by the department of local government finance that
must be completed and signed by the taxpayer and the official. The
form must indicate the following:
(1) If the taxpayer and the official agree on the resolution of all
assessment or deduction issues in the review, a statement of:
(A) those issues; and
(B) the assessed value of the tangible property or the amount
of the deduction that results from the resolution of those issues
in the manner agreed to by the taxpayer and the official.
(2) If the taxpayer and the official do not agree on the resolution
of all assessment or deduction issues in the review:
(A) a statement of those issues; and
(B) the identification of:
(i) the issues on which the taxpayer and the official agree;
and
(ii) the issues on which the taxpayer and the official
disagree.
(j) If the county board receives a form referred to in subsection
(i)(1) before the hearing scheduled under subsection (k):
(1) the county board shall cancel the hearing;
(2) the county official referred to in subsection (a) shall give
notice to the taxpayer, the county board, the county assessor, and
the county auditor of the assessment or deduction in the amount
referred to in subsection (i)(1)(B); and
(3) if the matter in issue is the assessment of tangible property,
the county board may reserve the right to change the assessment
under IC 6-1.1-13.
(k) If:
(1) subsection (i)(2) applies; or
(2) the county board does not receive a form referred to in
subsection (i) not later than one hundred twenty (120) days after
the date of the notice for review filed by the taxpayer under
subsection (c) or (d);
the county board shall hold a hearing on a review under this subsection
not later than one hundred eighty (180) days after the date of that
notice. The county board shall, by mail, give at least thirty (30) days
notice of the date, time, and place fixed for the hearing to the taxpayer
and the county or township official with whom the taxpayer filed the
notice for review. The taxpayer and the county or township official
with whom the taxpayer filed the notice for review are parties to the
proceeding before the county board. A taxpayer may request a
continuance of the hearing by filing, at least twenty (20) days before
the hearing date, a request for continuance with the board and the
county or township official with evidence supporting a just cause for
the continuance. The board shall, not later than ten (10) days after the
date the request for a continuance is filed, either find that the taxpayer
has demonstrated a just cause for a continuance and grant the taxpayer
the continuance, or deny the continuance. A taxpayer may request that
the board take action without the taxpayer being present and that the
board make a decision based on the evidence already submitted to the
board by filing, at least eight (8) days before the hearing date, a request
with the board and the county or township official. A taxpayer may
withdraw a petition by filing, at least eight (8) days before the hearing
date, a notice of withdrawal with the board and the county or township
official.
(l) At the hearing required under subsection (k):
(1) the taxpayer may present the taxpayer's reasons for
disagreement with the assessment or deduction; and
(2) the county or township official with whom the taxpayer filed
the notice for review must present:
(A) the basis for the assessment or deduction decision; and
(B) the reasons the taxpayer's contentions should be denied.
A penalty of fifty dollars ($50) shall be assessed against the taxpayer
if the taxpayer or representative fails to appear at the hearing and,
under subsection (k), the taxpayer's request for continuance is denied,
or the taxpayer's request for continuance, request for the board to take
action without the taxpayer being present, or withdrawal is not timely
filed. A taxpayer may appeal the assessment of the penalty to the
Indiana board or directly to the tax court. The penalty may not be
added as an amount owed on the property tax statement under
IC 6-1.1-22 or IC 6-1.1-22.5.
(m) The official referred to in subsection (a) may not require the
taxpayer to provide documentary evidence at the preliminary informal
meeting under subsection (h). The county board may not require a
taxpayer to file documentary evidence or summaries of statements of
testimonial evidence before the hearing required under subsection (k).
If the action for which a taxpayer seeks review under this section is the
assessment of tangible property, the taxpayer is not required to have an
appraisal of the property in order to do the following:
(1) Initiate the review.
(2) Prosecute the review.
(n) The county board shall prepare a written decision resolving all
of the issues under review. The county board shall, by mail, give notice
of its determination not later than one hundred twenty (120) days after
the hearing under subsection (k) to the taxpayer, the official referred to
in subsection (a), the county assessor, and the county auditor.
(o) If the maximum time elapses:
(1) under subsection (k) for the county board to hold a hearing; or
(2) under subsection (n) for the county board to give notice of its
determination;
the taxpayer may initiate a proceeding for review before the Indiana
board by taking the action required by section 3 of this chapter at any
time after the maximum time elapses.
SECTION 7. IC 6-1.1-17-3.5, AS AMENDED BY P.L.137-2012,
SECTION 24, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 3.5. (a) This section does not apply to taxing units
located in a county in which a county board of tax adjustment reviews
budgets, tax rates, and tax levies. This section does not apply to a
taxing unit that has its proposed budget and proposed property tax levy
approved under section 20 or 20.3 of this chapter or IC 36-3-6-9.
(b) This section applies to a taxing unit other than a county. Except
as provided in section 3.7 of this chapter, 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.
SECTION 8. IC 6-1.1-17-3.7 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2013]: Sec. 3.7. (a) This section authorizes a
three (3) year pilot program to allow county fiscal bodies of
designated counties to carry out a more thorough nonbinding
review of the proposed budgets, property tax rates, and property
tax levies of all taxing units in those counties. The general assembly
finds that, because of the enactment of property tax credits under
IC 6-1.1-20.6, there is an even greater need for taxing units to
cooperate in the adoption of their budgets, property tax rates, and
property tax levies.
(b) The department of local government finance may establish
a pilot program concerning nonbinding review of budgets,
property tax rates, and property tax levies as provided in this
section. The role of the department of local government finance in
the pilot program is to develop the framework for the continuation
of a more thorough nonbinding review in all counties without the
direct involvement of the department of local government finance.
(c) For a county to be eligible for designation as a pilot county
participating in the pilot program:
(1) the county fiscal body must adopt a resolution approving
the submission of an application to be designated as a pilot
county; and
(2) the county fiscal body must submit to the department of
local government finance before the date specified by the
department:
(A) an application in the form and containing the
information prescribed by the department; and
(B) a copy of the resolution adopted under subdivision (1).
(d) After reviewing applications submitted under subsection (c),
the department of local government finance may designate not
more than three (3) counties that submit an application under
subsection (c) as pilot counties under this section. In determining
which counties are designated as pilot counties, the department of
local government finance shall attempt to achieve diversity among
designated counties based on:
(1) the geographical location of the counties;
(2) the population of the counties; and
(3) whether the counties are primarily rural or urban.
(e) The department of local government finance shall notify
each taxing unit in a pilot county of:
(1) the designation of the county as a pilot county; and
(2) the duties of the taxing unit under this section.
(f) The following apply in 2014 and thereafter:
(1) Each taxing unit in a pilot county shall, before September
2 of each year, file with the department of local government
finance and with the county fiscal body:
(A) the taxing unit's proposed budgets, property tax rates,
and property tax levies for the following calendar year;
(B) a statement of whether:
(i) a petition and remonstrance process has been initiated under IC 6-1.1-20 concerning a controlled project of the taxing unit;
(ii) a public question under IC 6-1.1-20 concerning a controlled project of the taxing unit has been certified and will be on the election ballot;
(iii) a referendum tax levy question under IC 20-46-1 has been certified and will be on the election ballot; or
(iv) the taxing unit anticipates that it will during the following eighteen (18) months either adopt a resolution or ordinance under IC 6-1.1-20 making a preliminary determination to issue bonds or enter into a lease concerning a controlled project of the taxing unit, or adopt a resolution under IC 20-46-1 to place a referendum tax levy question on the election ballot; and
(C) any additional information required by the department to prepare the analysis required under subdivision (4).
A school corporation providing information to the department of local government finance shall provide the information through the department's interactive and searchable Internet web site containing local government information (the Indiana gateway for governmental units). When formulating the taxing unit's estimated budget, property tax rate, and property tax levy under section 3 of this chapter, the proper officers of the taxing unit shall consider the estimated consequences of the property tax credits under IC 6-1.1-20.6 on the property taxes that will be collected by the taxing unit and the calculation of fund balances.
(2) A taxing unit in a pilot county that would otherwise be required to submit its proposed budgets, property tax rates, and property tax levies for nonbinding review under section 3.5 of this chapter is not required to do so, but the taxing unit must instead submit the information required by subdivision (1) to the department of local government finance.
(3) A taxing unit that is located in a pilot county and that is subject to binding review and approval of the taxing unit's budgets, property tax rates, and property tax levies under section 20 of this chapter or IC 36-3-6-9:
(A) remains subject to binding review and approval under
those statutes and must submit the information required
under those statutes to the appropriate fiscal body; and
(B) must also submit the information required by
subdivision (1) to the department of local government
finance.
(4) The department shall prepare an analysis of the proposed
budgets, property tax rates, and property tax levies submitted
by taxing units in each pilot county. The department of local
government finance may establish appropriate procedures
and conduct the appropriate analysis that meets the
department's requirements for the review of a unit's budget
under this chapter. The analysis prepared by the department
must include at least the following:
(A) The estimated total property tax rate for each taxing
district in the pilot county.
(B) The estimated total amount of property taxes to be
levied in the pilot county.
(C) The estimated consequences of the property tax credits
under IC 6-1.1-20.6 on:
(i) the property tax rates of each taxing unit and taxing
district in the pilot county;
(ii) the expected total tax rate of each taxing district in
the county; and
(iii) the property taxes that will be collected by each
taxing unit in the pilot county.
(5) The department of local government finance shall, before
October 2 of each year, provide the analysis prepared under
subdivision (4) for a pilot county to the county fiscal body of
the pilot county and to the fiscal body of each taxing unit in
the pilot county. Upon request by the county fiscal body,
representatives of the department of local government finance
shall appear before the county fiscal body to review the
analysis.
(6) The county fiscal body of a pilot county shall, on or before
October 15 of each year:
(A) review the proposed budgets, property tax rates, and
property tax levies of each taxing unit in the pilot county;
(B) review the expected total tax rate of each taxing district
in the county; and
(C) issue a nonbinding recommendation to each taxing unit
in the pilot county regarding the taxing unit's proposed
budgets, property tax rates, and property tax levies.
The review and recommendation required to be carried out
under this subdivision may be carried out by the full county
fiscal body or by a committee appointed by the county fiscal
body for that purpose.
(7) A recommendation by a county fiscal body must include a
comparison of any increase in a taxing unit's budgets,
property tax rates, and property tax levies to:
(A) 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
(B) increases in the budgets, property tax rates, and
property tax levies of other taxing units in the county.
(8) After review under this section, a taxing unit must adopt
its budget, property tax rates, and property tax levies by the
date required under section 5 of this chapter.
(g) The county fiscal body of a pilot county may, before July 1
of a year, adopt a resolution discontinuing the county's
participation in the pilot program. If a county fiscal body adopts
such a resolution:
(1) the county fiscal body shall certify a copy of the resolution
to the department of local government finance;
(2) the county's participation in the pilot program is
terminated; and
(3) the department of local government finance shall attempt
to replace the pilot county with another county that has
applied to be designated as a pilot county.
(h) The department of local government finance shall, before
November 1, 2014, and each year thereafter, report to the
commission on state tax and financing policy concerning the pilot
program and whether the nonbinding review under the pilot
program is fostering cooperation among taxing units in the
adoption of their budgets, property tax rates, and property tax
levies.
(i) This section expires January 1, 2017.
SECTION 9. IC 6-1.1-17-20, AS AMENDED BY P.L.137-2012,
SECTION 27, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 20. (a) This section applies to each governing
body of a taxing unit that is not comprised of a majority of officials
who are elected to serve on the governing body. For purposes of this
section, an individual who qualifies to be 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) 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 a public library
or 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 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:
(A) the taxing unit was originally established by the city or
town; or
(B) the majority of the individuals serving on the
governing body of the taxing unit are appointed 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.
SECTION 10. IC 6-1.1-18-12, AS AMENDED BY SEA 85-2013,
SECTION 14, IS 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;
(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
(55) any statute enacted after December 31, 2003, that:
(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, 2012, the new maximum rate under a statute listed in subsection (d) is the tax rate determined under STEP EIGHT of the following STEPS:
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 year preceding the year in which the annual adjustment or the reassessment under IC 6-1.1-4-4 or IC 6-1.1-4-4.2 takes effect.
STEP TWO: Determine the actual percentage change (rounded to the nearest one-hundredth percent (0.01%)) in the assessed value (before the adjustment, if any, under IC 6-1.1-4-4.5) of the taxable property from the year preceding the year the annual adjustment or the reassessment under IC 6-1.1-4-4 or IC 6-1.1-4-4.2 takes effect to the year that the annual adjustment or the reassessment under IC 6-1.1-4-4 or IC 6-1.1-4-4.2 takes effect.
STEP THREE: Determine the three (3) calendar years that immediately precede the ensuing calendar year and in which a statewide general reassessment of real property under IC 6-1.1-4-4 does not first take effect.
STEP FOUR: Compute separately, for each of the calendar years determined in STEP THREE, the actual percentage change (rounded to the nearest one-hundredth percent (0.01%)) in the assessed value (before the adjustment, if any, under
IC 6-1.1-4-4.5) of the taxable property from the preceding year.
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 SEVEN: Determine the greater of the following:
(A) Zero (0).
(B) The result of the STEP TWO percentage minus the STEP
SIX percentage.
STEP EIGHT: Determine the quotient of the STEP ONE tax rate
divided by the sum of one (1) plus the STEP SEVEN percentage.
(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.
(h) This subsection applies only when calculating the maximum
rate allowed under subsection (e) for the Vincennes Community
School Corporation with respect to property taxes first due and
payable in 2014. The subsection (e) STEP ONE result for the school
corporation's capital projects fund is nineteen and forty-two
hundredths cents ($0.1942).
SECTION 11. IC 6-1.1-18-14 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 14. (a) As used in this section,
"qualified town" means the town of Goodland in Newton County.
(b) Before July 1, 2013, the department shall calculate and
certify to the fiscal body of a qualified town the result of:
(1) the amount of the property tax levy that could have been
imposed for property taxes first due and payable in 2013, if
the qualified town had imposed the maximum property tax
levy that would have been permitted by law if the qualified
town had properly submitted its budget and property tax levy
information to the department; minus
(2) the amount of the property tax levy approved by the
department under IC 6-1.1-17 for property taxes first due and
payable in calendar year 2013, after reducing the qualified
town's budget and property tax levy because the qualified
town's budget and property tax levy information were
improperly submitted to the department.
(c) After receiving the certifications required under subsection
(b), the fiscal body of the qualified town may adopt an ordinance
authorizing the town to borrow money from a financial institution
to replace part or all of the amount certified under subsection (b).
(d) If a qualified town receives a loan under this section, the
fiscal officer of the qualified town shall deposit the loan in each
fund affected by the reduction of the qualified town's budget and
property tax levy. The amount deposited may be used for any of
the lawful purposes of that fund.
(e) If a qualified town borrows money under subsection (c), the
qualified town shall impose a property tax levy in calendar year
2014 for the qualified town's debt service fund to repay the total
amount borrowed. The property tax levy under this subsection
must be treated as protected taxes (as defined in IC 6-1.1-20.6-9.8).
(f) This section expires June 30, 2015.
SECTION 12. IC 6-1.1-18-15 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 15. (a) This section applies to
the town of Zionsville in Boone County.
(b) The department of local government finance shall increase
the town's maximum permissible ad valorem property tax levy for
2014 by the amount of the actual 2012 property tax levy that was
imposed by the town for the fire equipment replacement fund
within the fire protection territory in which the town was a
participating unit.
(c) The town's maximum permissible ad valorem property tax
levy for property taxes first due and payable in 2014, as adjusted
under this section, shall be used in the determination of the town's
maximum permissible ad valorem property tax levy for property
taxes first due and payable in 2014 and thereafter.
(d) This section expires July 1, 2016.
SECTION 13. IC 6-1.1-18-16 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 16. (a) This section applies to
a township that submitted a petition under P.L.137-2012,
SECTION 125, to the department of local government finance for
an increase in the maximum permissible ad valorem property tax
levy under IC 36-8-13 (for township fire protection and emergency
services) for property taxes first due and payable in 2013.
(b) Notwithstanding the effective date of P.L.137-2012,
SECTION 125, the actions of the department of local government
finance as a result of the petition are legalized and validated.
(c) This section expires July 1, 2015.
SECTION 14. IC 6-1.1-18-17 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 17. (a) This section applies
only to the school city of Mishawaka.
(b) Notwithstanding any order, decision, or finding of the
department of local government finance to the contrary, the budget
of the school city of Mishawaka for calendar year 2013 is the
budget advertised by the school city under IC 6-1.1-17.
(c) Any order, decision, or finding of the department of local
government finance adjusting the calendar year 2013 budget
advertised by the school city of Mishawaka is void.
(d) Before July 1, 2013, the department shall calculate and
certify to the fiscal body of the school city of Mishawaka the
amount of the property tax levy that could have been imposed for
property taxes first due and payable in 2013, if the school city had
imposed the property tax levy that would have been permitted to
fund its budget for 2013.
(e) After receiving the certification required under subsection
(d), the fiscal body of the school city of Mishawaka may adopt an
ordinance authorizing the school city to borrow money from a
financial institution to replace part or all of the amount certified
under subsection (d).
(f) If the school city of Mishawaka receives a loan under this
section, the fiscal officer of the school city shall deposit the loan in
each fund affected by the reduction of the school city's budget and
property tax levy. The amount deposited may be used for any of
the lawful purposes of that fund.
(g) If the school city of Mishawaka borrows money under
subsection (f), the school city shall impose a property tax levy in
calendar year 2014 for the school city's debt service fund to repay
the total amount borrowed. The property tax levy under this
subsection must be treated as protected taxes, as defined in
IC 6-1.1-20.6-9.8.
(h) The department of local government finance may not make
an order, decision, or finding that adversely affects a budget or
levy of the city of Mishawaka because of the changes to the budget
and levy of the school city of Mishawaka for calendar year 2013.
(i) This section expires June 30, 2015.
SECTION 15. IC 6-1.1-18-18 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 18. (a) This section applies to
the Union-Lakeville fire protection territory in St. Joseph County.
(b) The executive of the provider unit may, upon approval by
the fiscal body of the provider unit, submit a petition to the
department of local government finance for an increase in the
provider unit's maximum permissible ad valorem property tax levy
for purposes of IC 36-8-19 for property taxes first due and payable
in 2014.
(c) If a petition is submitted under subsection (b), the
department of local government finance shall increase the provider
unit's maximum permissible ad valorem property tax levy for
purposes of IC 36-8-19 for property taxes first due and payable in
2014 by the amount necessary to increase the provider unit's
maximum permissible ad valorem property tax levy for purposes
of IC 36-8-19 to seventy percent (70%) of the amount of the
provider unit's maximum permissible ad valorem property tax levy
for purposes of IC 36-8-19 that applied to taxes first due and
payable in 2006.
(d) A provider unit's maximum permissible ad valorem
property tax levy for purposes of IC 36-8-19 for property taxes
first due and payable in 2014, as adjusted under this section, shall
be used in the determination of the provider unit's maximum
permissible ad valorem property tax levy for purposes of
IC 36-8-19 for property taxes first due and payable in 2015 and
thereafter.
(e) This section expires June 30, 2016.
SECTION 16. IC 6-1.1-18-19 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 19. (a) This section applies
only to the town of Williams Creek in Marion County.
(b) Before July 1, 2013, the department shall calculate and
certify to the fiscal body of the town of Williams Creek the amount
of the property tax levy that could have been imposed for property
taxes first due and payable in 2013, if the town had imposed the
maximum property tax levy that would have been permitted by law
if the town had properly published its budget and property tax levy
for 2013.
(c) After receiving the certification required under subsection
(b), the fiscal body of the town of Williams Creek may adopt an
ordinance authorizing the town to borrow money from a financial
institution to replace part or all of the amount certified under
subsection (b).
(d) If the town of Williams Creek receives a loan under this
section, the fiscal officer of the town shall deposit the loan in each
fund affected by the reduction of the town's budget and property
tax levy. The amount deposited may be used for any of the lawful
purposes of that fund.
(e) If the town of Williams Creek borrows money under
subsection (c), the town shall impose a property tax levy in
calendar year 2014 for the town's debt service fund to repay the
total amount borrowed. The property tax levy under this
subsection must be treated as protected taxes, as defined in
IC 6-1.1-20.6-9.8.
(f) This section expires June 30, 2015.
SECTION 17. IC 6-1.1-18-20 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 20. (a) This section applies
only to the city of Lawrence in Marion County.
(b) The city of Lawrence may appeal under IC 6-1.1-18.5-12 for
relief from the property tax levy limitations imposed under
IC 6-1.1-18.5-3 for property taxes first due an payable in 2014 to
recoup a property tax shortfall that the city experienced as a result
of the denial by the department of local government finance of the
city's 2013 budget, property tax rates, and property tax levies.
(c) The department of local government finance may find that
the city of Lawrence should be granted permission to increase its
levy for 2014 in excess of the limitations established under
IC 6-1.1-18.5-3 to permit the city to recoup a property tax shortfall
that the city experienced as a result of the denial by the department
of local government finance of the city's 2013 budget, property tax
rates, and property tax levies because of a change in the date of
adoption of the city's 2013 budget.
(d) An appeal for a levy under this section may not be denied
because of the amount of cash balances in the city of Lawrence's
funds. The maximum increase in the city's levy that may be
approved under this section is two hundred fifty thousand dollars
($250,000).
(e) This section expires June 30, 2015.
SECTION 18. IC 6-1.1-18-21 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 21. (a) This section applies to
Davis Township in Fountain County.
(b) The executive of the township may, upon approval by the
township fiscal body, submit a petition to the department of local
government finance for an increase in the maximum permissible ad
valorem property tax levy under IC 36-8-13 (for township fire
protection and emergency services) for property taxes first due and
payable in 2014.
(c) The department of local government finance shall increase
the maximum permissible ad valorem property tax levy under
IC 36-8-13 for a township that submits a petition under this section
by the lesser of:
(1) the amount of the increase requested in the petition; or
(2) the amount necessary to increase the township's maximum
permissible ad valorem property tax levy under IC 36-8-13
for property taxes first due and payable in 2014 to the amount
of the township's maximum permissible ad valorem property
tax levy under IC 36-8-13 that applied to taxes first due and
payable in 2003.
(d) A township's maximum permissible ad valorem property tax
levy under IC 36-8-13 for property taxes first due and payable in
2014, as adjusted under this section, shall be used in the
determination of the township's maximum permissible ad valorem
property tax levy under IC 36-8-13 for property taxes first due and
payable in 2015 and thereafter.
(e) This section expires January 1, 2016.
SECTION 19. IC 6-1.1-20-12, AS ADDED BY P.L.203-2011,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 12. (a) This section applies to taxes first due and
payable in 2012 or a subsequent year.
(b) The county auditor shall distribute proceeds collected from an
allocation area (as defined in IC 6-1.1-21.2-3) that are attributable to
property taxes imposed after being approved by the voters in a
referendum conducted after April 30, 2010, to the taxing unit for which
the referendum was conducted.
(c) The amount to be distributed under subsection (b) shall be
treated as part of the referendum levy for purposes of setting tax rates
for property taxes imposed after being approved by the voters in a
referendum conducted after April 30, 2010.
(d) For a school corporation that conducted a referendum after
November 1, 2009, and before May 1, 2010, for distributions after
2013, the county auditor shall distribute proceeds collected from an
allocation area (as defined in IC 6-1.1-21.2-3) that are attributable
to property taxes imposed after being approved by the voters in the
referendum, to the school corporation for which the referendum
was conducted. The amount to be distributed to the school
corporation shall be treated as part of the referendum levy for
purposes of setting the school corporation's tax rates.
SECTION 20. IC 6-1.1-20.3-6, AS AMENDED BY P.L.145-2012,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 6. (a) The fiscal body and the executive of a
political subdivision may jointly file a petition with the board seeking
to have the political subdivision designated as a distressed political
subdivision under this chapter.
(b) The governing body and the superintendent of a school
corporation may do any of the following:
(1) Jointly file a petition with the board seeking relief under
section 8.3 of this chapter.
(2) Jointly file a petition with the board seeking to have the
school corporation designated as a distressed political
subdivision under this chapter.
(3) Jointly file a petition with the board requesting authority to transfer before July 1, 2015, excess funds in the school corporation's debt service fund to the school corporation's transportation fund as provided in section 8.4 of this chapter.
(c) The board may adopt procedures governing the timing and required content of a petition under subsection (a).
SECTION 21. IC 6-1.1-20.3-6.5, AS ADDED BY P.L.145-2012, SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 6.5. (a) After the board receives a petition concerning a political subdivision under section 6(a) or 6(b)(2) of this chapter, the board may designate the political subdivision as a distressed political subdivision if at least one (1) of the following conditions applies to the political subdivision:
(1) The political subdivision has defaulted in payment of principal or interest on any of its bonds or notes.
(2) The political subdivision has failed to make required payments to payroll employees for thirty (30) days or two (2) consecutive payrolls.
(3) The political subdivision has failed to make required payments to judgment creditors for sixty (60) days beyond the date of the recording of the judgment.
(4) The political subdivision, for at least thirty (30) days beyond the due date, has failed to do any of the following:
(A) Forward taxes withheld on the incomes of employees.
(B) Transfer employer or employee contributions due under the Federal Insurance Contributions Act (FICA).
(C) Deposit the political subdivision's minimum obligation payment to a pension fund.
(5) The political subdivision has accumulated a deficit equal to eight percent (8%) or more of the political subdivision's revenues. For purposes of this subdivision, "deficit" means a negative fund balance calculated as a percentage of revenues at the end of a budget year for any governmental or proprietary fund. The calculation must be presented on an accrual basis according to generally accepted accounting principles.
(6) The political subdivision has sought to negotiate a resolution or an adjustment of claims that in the aggregate:
(A) exceed thirty percent (30%) of the political subdivision's anticipated annual revenues; and
(B) are ninety (90) days or more past due.
(7) The political subdivision has carried over interfund loans for the benefit of the same fund at the end of two (2) successive years.
(8) The political subdivision has been severely affected, as determined by the board, as a result of granting the property tax credits under IC 6-1.1-20.6.
(9) In addition to the conditions listed in subdivisions (1) through (8), and in the case of a school corporation, the board may also designate a school corporation as a distressed political subdivision if at least one (1) of the following conditions applies:
(A) The school corporation has:
(i) issued refunding bonds under IC 5-1-5-2.5; or
(ii) adopted a resolution under IC 5-1-5-2.5 making the determinations and including the information specified in IC 5-1-5-2.5(g).
(B) The ratio that the amount of the school corporation's debt (as determined in December 2010) bears to the school corporation's 2011 ADM ranks in the highest ten (10) among all school corporations.
(C) The ratio that the amount of the school corporation's debt (as determined in December 2010) bears to the school corporation's total assessed valuation for calendar year 2011 ranks in the highest ten (10) among all school corporations.
(D) The amount of homestead assessed valuation in the school corporation for calendar year 2011 was at least sixty percent (60%) of the total amount of assessed valuation in the school corporation for calendar year 2011.
The board may consider whether a political subdivision has fully exercised all the local options available to the political subdivision, such as a local option income tax or a local option income tax rate increase or, in the case of a school corporation, an operating referendum.
(b) If the board designates a political subdivision as distressed under subsection (a), the board shall review the designation annually to determine if the distressed political subdivision meets at least one (1) of the conditions listed in subsection (a).
(c) If the board designates a political subdivision as a distressed political subdivision under subsection (a), the board shall immediately
notify:
(1) the treasurer of state; and
(2) the county auditor and county treasurer of each county in
which the distressed political subdivision is wholly or partially
located;
that the board has designated the political subdivision as a distressed
political subdivision.
SECTION 22. IC 6-1.1-20.3-7.5, AS ADDED BY P.L.145-2012,
SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 7.5. (a) This section does not apply to a school
corporation designated before July 1, 2013, as a distressed political
subdivision.
(b) If the board designates a political subdivision as a distressed
political subdivision under section 6.5 of this chapter, the board shall
appoint an emergency manager for the distressed political subdivision.
An emergency manager serves at the pleasure of the board.
(c) The chairperson of the board shall oversee the activities of an
emergency manager.
(d) The distressed political subdivision shall pay the emergency
manager's compensation and reimburse the emergency manager for
actual and necessary expenses.
SECTION 23. IC 6-1.1-20.3-8.3, AS ADDED BY P.L.145-2012,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 8.3. After the board receives a petition
concerning a school corporation under section 6(b) 6(b)(1) of this
chapter, the board shall review the school corporation's request for a
loan from the counter-cyclical revenue and economic stabilization fund
under IC 6-1.1-21.4-3(b). The board shall make a recommendation to
the state board of finance regarding the loan request. The board may
consider whether a school corporation has attempted to secure
temporary cash flow loans from the Indiana bond bank or a financial
institution in making its recommendation.
SECTION 24. IC 6-1.1-20.3-8.4 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 8.4. (a) After the board
receives a petition concerning a school corporation under section
6(b)(3) of this chapter, the board shall review the school
corporation's request for the authority to transfer excess funds in
the school corporation's debt service fund to the school
corporation's transportation fund. The board shall make a
determination regarding:
(1) whether the school corporation may transfer excess funds
in the school corporation's debt service fund to the school
corporation's transportation fund; and
(2) if a transfer is approved under subdivision (1), the amount
of excess funds that may be transferred from the school
corporation's debt service fund to the school corporation's
transportation fund.
(b) The board may not approve a transfer of excess funds from
the school corporation's debt service fund to the school
corporation's transportation fund if the transfer will occur after
June 30, 2015.
(c) This section expires July 1, 2015.
SECTION 25. IC 6-1.1-20.3-8.5, AS ADDED BY P.L.145-2012,
SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 8.5. (a) This section does not apply to a
school corporations. corporation designated before July 1, 2013, as
a distressed political subdivision.
(b) Notwithstanding any other law, an emergency manager of a
distressed political subdivision appointed under section 7.5 of this
chapter shall do the following:
(1) Assume and exercise the authority and responsibilities of both
the executive and the fiscal body of the political subdivision
concerning the adoption, amendment, and enforcement of
ordinances and resolutions relating to or affecting the fiscal
stability of the political subdivision. However, the emergency
manager does not have the power to impose taxes or fees in
addition to the taxes or fees authorized by the political
subdivision before the political subdivision was designated a
distressed political subdivision.
(2) Review the political subdivision's budget.
(3) Review salaries of the political subdivision's employees.
(4) Conduct a financial and compliance audit of the internal
operations of the political subdivision.
(5) Develop a written financial plan in consultation with the
officials of the political subdivision not later than six (6) months
after appointment.
(6) Develop a plan for paying all the political subdivision's
outstanding obligations.
(7) Review existing labor contracts.
(8) Adopt a budget for the political subdivision for each calendar
or fiscal year, as applicable, that the political subdivision remains
a distressed political subdivision.
(9) Review payrolls and other claims against the political
subdivision before payment.
(10) Make, approve, or disapprove the following:
(A) A contract.
(B) An expenditure.
(C) A loan.
(D) The creation of any new position.
(E) The filling of any vacant position.
(11) Submit a written report to the board every three (3) months
concerning:
(A) actions taken by the emergency manager;
(B) expenditures made by the distressed political subdivision;
and
(C) the work that has been done to remove the distressed
political subdivision from distressed status.
(12) Petition the board to terminate a political subdivision's status
as a distressed political subdivision when the conditions found in
section 6.5 of this chapter are no longer applicable to the political
subdivision.
(c) An emergency manager of a distressed political subdivision
appointed under section 7.5 of this chapter may do the following:
(1) Renegotiate existing labor contracts and act as an agent of the
political subdivision in collective bargaining.
(2) Reduce or suspend salaries of the political subdivision's
employees.
(3) Enter into agreements with other political subdivisions for the
provision of services.
(d) Except as provided in section 13(c) of this chapter, an
emergency manager of a distressed political subdivision retains the
powers and duties described in subsections (b) and (c) until:
(1) the emergency manager resigns or dies;
(2) the board removes the emergency manager; or
(3) the political subdivision's status as a distressed political
subdivision is terminated under section 13(b) of this chapter.
SECTION 26. IC 6-1.1-20.3-10, AS AMENDED BY P.L.145-2012, SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 10. A distressed political subdivision may petition the tax court for judicial review of a determination of the board under section 6.5 of this chapter. A school corporation may also petition the tax court for judicial review of a determination of the board under section 8.4 of this chapter. The action must be taken to the tax court under IC 6-1.1-15 in the same manner that an action is taken to appeal a final determination of the Indiana board of tax review. The petition must be filed in the tax court not more than forty-five (45) days after the board enters its final determination.
SECTION 27. IC 6-1.1-20.3-13, AS ADDED BY P.L.145-2012, SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 13. (a) If:
(1) an emergency manager of a distressed political subdivision;
(2) the fiscal body and executive of the political subdivision jointly; or
(3) the governing body of a school corporation that:
(A) employs a new superintendent; or
(B) has a new member elected or appointed to its governing body;
during the time the school corporation is a distressed political subdivision;
files a petition with the board for termination of the political subdivision's status as a distressed political subdivision, the board shall conduct a public hearing on the question of whether to terminate the political subdivision's status as a distressed political subdivision.
(b) The board shall terminate the political subdivision's status as a distressed political subdivision if the board finds that the conditions found in section 6.5 of this chapter are no longer applicable to the political subdivision.
(c) Notwithstanding any other section of this chapter, not later than ninety (90) days after taking office, a new executive of a distressed political subdivision may petition the board for suspension of the political subdivision's distressed status. The executive must include in its petition a written plan to resolve the applicable issues described in section 6.5 of this chapter. If the board approves the executive's written plan, the board may suspend the political subdivision's distressed status
for one hundred eighty (180) days. Suspension under this chapter
terminates automatically upon expiration of the one hundred eighty
(180) day period. The board may consider a petition to terminate the
political subdivision's distressed status during a period of suspension.
SECTION 28. IC 6-1.1-20.6-2, AS AMENDED BY
P.L.182-2009(ss), SECTION 151, IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2. (a) As used in
this chapter, "homestead" refers to a homestead that is eligible for has
been granted a standard deduction under IC 6-1.1-12-37.
(b) The term includes a house or apartment that is owned or leased
by a cooperative housing corporation (as defined in 26 U.S.C. 216(b)).
SECTION 29. IC 6-1.1-20.6-9.8, AS AMENDED BY P.L.137-2012,
SECTION 35, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2013 (RETROACTIVE)]: Sec. 9.8. (a) This section
applies to property taxes first due and payable after December 31,
2009.
(b) The following definitions apply throughout this section:
(1) "Debt service obligations of a political subdivision" refers to:
(A) the principal and interest payable during a calendar year
on bonds; and
(B) lease rental payments payable during a calendar year on
leases;
of a political subdivision payable from ad valorem property taxes.
(2) "Protected taxes" refers to the following:
(A) Property taxes that are exempted from the application of
a credit granted under section 7 or 7.5 of this chapter by
section 7(b), 7(c), 7.5(b), or 7.5(c) of this chapter or another
law.
(B) Property taxes imposed by a political subdivision to pay
for debt service obligations of a political subdivision that are
not exempted from the application of a credit granted under
section 7 or 7.5 of this chapter by section 7(b), 7(c), 7.5(b), or
7.5(c) of this chapter or any other law. Property taxes
described in this subsection are subject to the credit granted
under section 7 or 7.5 of this chapter by section 7(b), 7(c),
7.5(b), or 7.5(c) of this chapter regardless of their designation
as protected taxes.
(3) "Unprotected taxes" refers to property taxes that are not
protected taxes.
(c) Except as provided in subsection (e) for property taxes due and payable in 2013, the total amount
(1) The reduction may be allocated in the amounts determined by the political subdivision using a combination of unprotected taxes of the political subdivision in those taxing districts in which the credit caused a reduction in protected taxes.
(2) The tax revenue and each fund of any other political subdivisions must not be affected by the reduction.
(d) When:
(1) the revenue that otherwise would be distributed to a fund receiving only unprotected taxes is reduced entirely under subsection (c) and the remaining revenue is insufficient for a fund receiving protected taxes to receive the revenue specified by subsection (c); or
(2) there is not a fund receiving only unprotected taxes from which to distribute revenue;
the revenue distributed to the fund receiving protected taxes must also be reduced. If the revenue distributed to a fund receiving protected taxes is reduced, the political subdivision may transfer money from one (1) or more of the other funds of the political subdivision to offset the loss in revenue to the fund receiving protected taxes. The transfer is limited to the amount necessary for the fund receiving protected taxes to receive the revenue specified under subsection (c). The amount transferred shall be specifically identified as a debt service obligation transfer for each affected fund.
(e) This subsection applies to property taxes due and payable in 2013. The total amount of the loss in revenue resulting from the granting of credits under section 7 or 7.5 of this chapter must
reduce the amount of protected and unprotected property taxes
distributed to a fund in proportion to the property tax levy
imposed for that fund relative to the total of all protected and
unprotected property tax levies imposed by the political
subdivision. The allocations shall be made after the political
subdivision receives its distribution.
SECTION 30. IC 6-1.1-33.5-3, AS AMENDED BY
P.L.182-2009(ss), SECTION 169, IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 3. The division of data
analysis shall:
(1) conduct continuing studies in the areas in which the
department of local government finance operates;
(2) make periodic field surveys and audits of:
(A) tax rolls;
(B) plat books;
(C) building permits;
(D) real estate transfers; and
(E) other data that may be useful in checking property
valuations or taxpayer returns;
(3) make test checks of property valuations to serve as the bases
basis for special reassessments under this article;
(4) conduct biennially annually a review of each coefficient of
dispersion study for each township and county; in Indiana;
(5) conduct quadrennially annually a review of each sales
assessment ratio study for each township and county; in Indiana;
and
(6) report annually to the executive director of the legislative
services agency, in an electronic format under IC 5-14-6, the
information obtained or determined under this section for use by
the executive director and the general assembly, including:
(A) all information obtained by the division of data analysis
from units of local government; and
(B) all information included in:
(i) the local government data base; and
(ii) any other data compiled by the division of data analysis.
SECTION 31. IC 6-1.1-36-17, AS ADDED BY P.L.87-2009,
SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 17. (a) As used in this section, "nonreverting
fund" refers to a nonreverting fund established under subsection (c).
(b) Each county auditor that makes a determination that property was not eligible for a standard deduction under IC 6-1.1-12-37 or a homestead credit under IC 6-1.1-20.9 (repealed) in a particular year shall notify the county treasurer of the determination. The county auditor shall issue a notice of taxes, interest, and penalties due to the owner and include a statement that the payment is to be made payable to the county auditor. The notice must require full payment of the amount owed within thirty (30) days.
(c) Each county auditor shall establish a nonreverting fund. Upon collection of the adjustment in tax due (and any interest and penalties on that amount) after the termination of a deduction or credit as specified in subsection (b), the county treasurer shall deposit that amount:
(1) in the nonreverting fund, if the county contains a consolidated city; or
(2) if the county does not contain a consolidated city:
(A) in the nonreverting fund, to the extent that the amount collected, after deducting the direct cost of any contract, including contract related expenses, under which the contractor is required to identify homestead deduction eligibility, does not cause the total amount deposited in the nonreverting fund under this subsection for the year during which the amount is collected to exceed one hundred thousand dollars ($100,000); or
(B) in the county general fund, to the extent that the amount collected exceeds the amount that may be deposited in the nonreverting fund under clause (A).
Any part of the amount that is not collected by the due date shall be placed on the tax duplicate for the affected property and collected in the same manner as other property taxes. The adjustment in tax due (and any interest and penalties on that amount) after the termination of a deduction or credit as specified in subsection (b) shall be deposited
(d) The amount to be deposited in the nonreverting fund or the county general fund under subsection (c) includes adjustments in the tax due as a result of the termination of deductions or credits available only for property that satisfies the eligibility for a standard deduction under IC 6-1.1-12-37 or a homestead credit under IC 6-1.1-20.9
(repealed), including the following:
(1) Supplemental deductions under IC 6-1.1-12-37.5.
(2) Homestead credits under IC 6-1.1-20.4, IC 6-3.5-1.1-26,
IC 6-3.5-6-13, IC 6-3.5-6-32, IC 6-3.5-7-13.1, or IC 6-3.5-7-26,
or any other law.
(3) Credit for excessive property taxes under IC 6-1.1-20.6-7.5 or
IC 6-1.1-20.6-8.5.
Any amount paid that exceeds the amount required to be deposited in
the nonreverting fund under subsection (c)(1) or (c)(2) shall be
distributed as property taxes.
(e) Money in the nonreverting fund deposited under subsection
(c)(1) or (c)(2) shall be treated as miscellaneous revenue. Distributions
shall be made from the nonreverting fund established under this section
upon appropriation by the county fiscal body and shall be made only
for the following purposes:
(1) Fees and other costs incurred by the county auditor to discover
property that is eligible for a standard deduction under
IC 6-1.1-12-37 or a homestead credit under IC 6-1.1-20.9
(repealed).
(2) Other expenses of the office of the county auditor.
(3) The cost of preparing, sending, and processing notices
described in IC 6-1.1-22-8.1(b)(9). and checklists or notices
described in IC 6-1.1-22.5-12(d).
The amount of deposits in a reverting fund, the balance of a
nonreverting fund, and expenditures from a reverting fund may not be
considered in establishing the budget of the office of the county auditor
or in setting property tax levies that will be used in any part to fund the
office of the county auditor.
SECTION 32. IC 6-1.1-41-16 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2013]: Sec. 16. (a) This section applies to the
town of Zionsville.
(b) Upon the request of the town, the department of local
government finance shall establish for the town a cumulative
building and equipment fund for fire protection and related
services as described in IC 36-8-14 to be a fund of the town
beginning in 2014.
SECTION 33. IC 6-1.1-41-17 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2013]: Sec. 17. (a) This section applies to the
Frankfort Airport Authority in Clinton County.
(b) Notwithstanding IC 8-22-3-25, the maximum permissible ad
valorem property tax levy for the authority's cumulative building
fund may not exceed sixty-seven hundredths of one cent ($0.0067)
on each one hundred dollars ($100) of assessed value of taxable
property within the district.
SECTION 34. IC 8-22-3-24 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 24. The tax levy under
section 23 of this chapter, as finally approved by the department of
local government finance, must be assessed and collected by the county
treasurer of the county or counties within which the district is located
as other taxes are levied and collected. The county treasurer shall remit
all taxes so collected to the treasurer of the authority. Each year, the
board may transfer to the authority's cumulative building fund an
amount not to exceed five percent (5%) of the taxes received under
this section in that year.
SECTION 35. IC 13-21-3-13.5, AS AMENDED BY P.L.37-2012,
SECTION 52, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 13.5. (a) At the end of each year the district shall
prepare, on a form designed by the department of local government
finance, a report that is accessible through the computer gateway
administered by the office of technology established by IC 4-13.1-2-1
and that provides the following information:
(1) For each fund that contains district money:
(A) the cash balance at the end of the year;
(B) a list of all encumbrances on the fund that the district is
legally obligated to pay;
(C) a copy of documentation that supports each encumbrance
listed in clause (B);
(D) the fund balance obtained by subtracting the amount under
clause (B) from the amount under clause (A);
(E) the total expenditures from the fund for the year; and
(F) any other financial information required by the department.
(2) The total of all fund balances calculated under subdivision
(1)(D).
(3) The total of all fund expenditures reported under subdivision
(1)(E).
(4) Any programmatic information required by the department.
(5) The total amount of expenditures by the district for the year.
(6) The per capita expenditures by the district for the year.
(7) The amount of expenditures by the district for the year for personnel costs.
(8) The amount of expenditures by the district for the year for program costs (excluding personnel costs).
(9) The total amount of solid waste (in tons) disposed of in the district for the year for which the district is directly responsible.
(10) The total amount of recycling (in tons) carried out in the district in the year for which the district is directly responsible.
(b) The district shall provide the report prepared under subsection (a):
(1) to the department and to the department of local government finance in a format prescribed by the department; and
(2) to the legislative council in an electronic format under IC 5-14-6;
by
(c) The district shall publish the annual report prepared under subsection (a) on an Internet web site maintained by the district or on the Internet web sites maintained by the counties that are members of the district.
SECTION 36. IC 20-40-2-4, AS AMENDED BY P.L.145-2012, SECTION 24, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 4. (a) Except as provided by subsection (b) or any other law, any lawful school expenses payable from any other fund of a school corporation, including debt service and capital outlay, may be budgeted in and paid from the fund.
(b) Before January 1, 2018, costs attributable to transportation (as defined in IC 20-40-6-1) may be budgeted in and paid from the fund. After December 31, 2017, costs attributable to transportation (as defined in IC 20-40-6-1) may not be budgeted in and paid from the fund. After June 30, 2013, a school corporation may also transfer money from its general fund to its transportation fund (IC 20-40-6) if it qualifies under subsection (c).
(c) A school corporation may make a transfer from its general fund to its transportation fund if the amount of revenue loss from:
(1) the credits for excessive property taxes granted under IC 6-1.1-20.6-7.5 in the amount that affects the school
corporation's transportation fund; plus
(2) allocations to the school transportation fund resulting
from the granting of credits under IC 6-1.1-20.6-7.5 to protect
the protected taxes as provided in IC 6-1.1-20.6-9.8;
is more than seventy-five percent (75%) of the school corporation's
transportation fund levy for the year for which the latest certified
levies have been determined. The amount of the transfer may not
exceed fifty percent (50%) of revenue lost by the school
corporation's transportation fund.
(d) A school corporation may make a transfer from its general
fund to its school bus replacement fund (IC 20-40-7) if the revenue
lost from:
(1) the credits for excessive property taxes granted under
IC 6-1.1-20.6-7.5 in the amount that affects the school
corporation's school bus replacement fund; plus
(2) allocations to the school bus replacement fund resulting
from the granting of credits under IC 6-1.1-20.6-7.5 to protect
the protected taxes as provided in IC 6-1.1-20.6-9.8;
is more than seventy-five percent (75%) of the school corporation's
school bus replacement fund levy for the year for which the latest
certified levies have been determined. The amount of the transfer
may not exceed fifty percent (50%) of revenue lost by the school
corporation's school bus replacement fund.
SECTION 37. IC 20-40-7-6, AS ADDED BY P.L.2-2006,
SECTION 163, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2013]: Sec. 6. Except as otherwise provided by
law, including the exception for transfers permitted by
IC 20-40-2-4(d), the fund is the exclusive fund used to pay the
following costs attributable to transportation:
(1) Amounts paid for the replacement of school buses, either
through a purchase agreement or under a lease agreement.
(2) The costs of contracted transportation service payable from
the fund under section 7 of this chapter.
SECTION 38. IC 20-40-9-6, AS ADDED BY P.L.2-2006,
SECTION 163, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 6. (a) Money in the fund may
be used for payment of the following:
(1) All debt and other obligations arising out of funds borrowed
or advanced for school buildings when purchased from the
proceeds of a bond issue for capital construction.
(2) A lease to provide capital construction.
(3) Interest on emergency and temporary loans.
(4) All debt and other obligations arising out of funds borrowed
or advanced for the purchase or lease of school buses when
purchased or leased from the proceeds of a bond issue, or from
money obtained from a loan made under IC 20-27-4-5, for that
purpose.
(5) All debt and other obligations arising out of funds borrowed
to pay judgments against the school corporation.
(6) All debt and other obligations arising out of funds borrowed
to purchase equipment.
(b) A school corporation may before July 1, 2015, transfer
excess money in the fund to the school corporation's transportation
fund, if the transfer is approved by the distressed unit appeal
board under IC 6-1.1-20.3-8.4.
SECTION 39. IC 20-46-1-10.5, AS ADDED BY P.L.203-2011,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 10.5. (a) This section applies to taxes first due and
payable in 2012 or a subsequent year.
(b) The county auditor shall distribute proceeds collected from an
allocation area (as defined in IC 6-1.1-21.2-3) that are attributable to
property taxes imposed after being approved by the voters in a
referendum conducted after April 30, 2010, to the taxing unit for which
the referendum was conducted.
(c) The amount to be distributed under subsection (b) shall be
treated as part of the referendum levy for purposes of setting tax rates
for property taxes imposed after being approved by the voters in a
referendum conducted after April 30, 2010.
(d) For a school corporation that conducted a referendum after
November 1, 2009, and before May 1, 2010, for distributions after
2013, the county auditor shall distribute proceeds collected from an
allocation area (as defined in IC 6-1.1-21.2-3) that are attributable
to property taxes imposed after being approved by the voters in the
referendum, to the school corporation for which the referendum
was conducted. The amount to be distributed to the school
corporation shall be treated as part of the referendum levy for
purposes of setting the school corporation's tax rates.
SECTION 40. IC 36-1-11-3, AS AMENDED BY P.L.27-2008,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 3. (a) This section does not apply to the disposal
of real property under section 5, 5.5, 5.9, or 8, or 18 of this chapter.
(b) Disposal of real property under this chapter is subject to the
approval of:
(1) the executive of the political subdivision or agency; or
(2) the fiscal body of the political subdivision or agency, if there
is no executive.
The executive or fiscal body may not approve a disposal of property
without conducting a public hearing after giving notice under IC 5-3-1.
However, in a municipality the executive shall designate a board or
commission of the municipality to give notice, conduct the hearing, and
notify the executive of its recommendation.
(c) Except as provided in section 3.2 of this chapter, in addition, the
fiscal body of a unit must approve:
(1) every sale of real property having an appraised value of fifty
thousand dollars ($50,000) or more;
(2) every lease of real property for which the total annual rental
payments will be twenty-five thousand dollars ($25,000) or more;
and
(3) every transfer of real property under section 14 or 15 of this
chapter.
SECTION 41. IC 36-1-11-4, AS AMENDED BY P.L.188-2011,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 4. (a) A disposing agent who wants to sell or
transfer real property must comply with this section, except as
permitted by section 4.1, 4.2, 5, 5.5, 5.7, 5.9, 8, 14, or 15, or 18 of this
chapter.
(b) The disposing agent shall first have the property appraised by
two (2) appraisers. The appraisers must be:
(1) professionally engaged in making appraisals;
(2) licensed under IC 25-34.1; or
(3) employees of the political subdivision familiar with the value
of the property.
(c) After the property is appraised, the disposing agent shall publish
a notice in accordance with IC 5-3-1 setting forth the terms and
conditions of the sale and, when subsection (e) is employed, may
engage an auctioneer licensed under IC 25-6.1 to advertise the sale and
to conduct a public auction. The advertising conducted by the
auctioneer is in addition to any other notice required by law and shall
include a detailed description of the property to be sold stating the key
numbers, if any, of the tracts within that property. If the disposing agent
determines that the best sale of the property can be made by letting the
bidders determine certain conditions of the sale (such as required
zoning or soil or drainage conditions) as a prerequisite to purchasing
the property, the disposing agent may permit the bidders to specify
those conditions. The notice must state the following:
(1) Bids will be received beginning on a specific date.
(2) The sale will continue from day to day for a period determined
by the disposing agent of not more than sixty (60) days.
(3) The property may not be sold to a person who is ineligible
under section 16 of this chapter.
(4) A bid submitted by a trust (as defined in IC 30-4-1-1(a)) must
identify each:
(A) beneficiary of the trust; and
(B) settlor empowered to revoke or modify the trust.
(d) A bid must be open to public inspection. A bidder may raise the
bidder's bid, and subject to subsection (e), that raise takes effect after
the board has given written notice of that raise to the other bidders.
(e) The disposing agent may also engage an auctioneer licensed
under IC 25-6.1 to conduct a sale by public auction. The auction may
be conducted either at the time for beginning the sale in accordance
with the public notice or after the beginning of the sale. The disposing
agent shall give each bidder who has submitted a bid written notice of
the time and place of the auction.
(f) The disposing agent may, before expiration of the time set out in
the notice, sell the property to the highest and best bidder. The highest
and best bidder must have complied with any requirement under
subsection (c)(4). However, the disposing agent may sell the property
for less than ninety percent (90%) of the average of the two (2)
appraisals of the tracts only after an additional notice stating the
amount of the bid to be accepted is published in accordance with
IC 5-3-1. The disposing agent may reject all bids. If the disposing agent
rejects all bids, the disposing agent must make a written determination
to reject all bids explaining why all bids were rejected.
(g) If the disposing agent determines that, in the exercise of good
business judgment, the disposing agent should hire a broker or
auctioneer to sell the property, the disposing agent may do so and pay
the broker or auctioneer a reasonable compensation out of the gross
proceeds of the sale. A disposing agent may hire a broker to sell real
property directly rather than using the bid process under subsections (c)
through (f) if:
(1) the disposing agent publishes a notice of the determination to
hire the broker in accordance with IC 5-3-1; and
(2) the property has been up for bid for at least sixty (60) days
before the broker is hired, and either no bids were received or the
disposing agent has rejected all bids that were received.
The disposing agent may hire one (1) of the appraisers as the broker or
auctioneer.
(h) The following apply if a broker is hired under subsection (g):
(1) The property may not be sold to a person who is ineligible
under section 16 of this chapter.
(2) If the property is sold to a trust (as defined in IC 30-4-1-1(a)),
the following information must be placed in the public record
relating to the sale:
(A) Each beneficiary of the trust.
(B) Each settlor empowered to revoke or modify the trust.
SECTION 42. IC 36-1-11-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 7. (a) A disposing agent
who exchanges property must proceed under this section, except as
permitted by section 8 or 18 of this chapter.
(b) An exchange may be made with a person who is:
(1) not a governmental entity; and
(2) eligible under section 16 of this chapter;
only after advertisement following as nearly as practical the procedure
prescribed by section 4 of this chapter, with the property the disposing
agent conveys to be partial or full payment for the property the
disposing agent receives.
SECTION 43. IC 36-1-11-18 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 18. (a) This section applies to
a school corporation located in LaPorte County.
(b) Notwithstanding any other law, a school corporation may
transfer real property to any other governmental agency in
exchange for services provided to the school corporation.
(c) This section constitutes the only authority necessary for a
school corporation to make real property available for exchange
under this section. A school corporation is not required to apply
any additional procedures to an exchange made under this section.
SECTION 44. [EFFECTIVE UPON PASSAGE] (a) As used in this
SECTION, "political subdivision" has the meaning set forth in
IC 36-1-2-13.
(b) The legislative council is urged to assign to an interim study
committee the study of the budgeting process for political
subdivisions, including a study of the following:
(1) The benefits of and limitations resulting from the
publication of budgets, tax rates, and levies by political
subdivisions.
(2) Providing more flexibility in managing a political
subdivision's budget.
(3) The effects of the credit for excessive property taxes
under IC 6-1.1-20.6 on unprotected taxes, as defined in
IC 6-1.1-20.6-9.8.
(4) The granting of a property tax exemption for real or
personal property, or both, if the property is owned,
occupied, and used for providing early childhood
education.
(c) If the study is assigned under subsection (b), the study
committee shall prepare a report of the study committee's findings
and recommendations and submit it to the legislative council in an
electronic format under IC 5-14-6 before November 1, 2013.
(d) This SECTION expires January 1, 2014.
SECTION 45. [EFFECTIVE JANUARY 1, 2009
(RETROACTIVE)] (a) This SECTION applies notwithstanding
IC 6-1.1-10, IC 6-1.1-11, or any other law or administrative rule or
provision.
(b) This SECTION applies to the assessment date of March 1,
2009.
(c) As used in this SECTION, "eligible property" means the real
property described in subsection (d).
(d) As used in this SECTION, "qualified taxpayer" refers to a
taxpayer that:
(1) has leased property located in Marion County to the
bureau of motor vehicles or the bureau of motor vehicles
commission; and
(2) files before September 1, 2013, in a manner consistent with
IC 6-1.1-36-1.5, a Form 136 property tax exemption
application, along with any supporting documents, schedules,
or attachments, claiming an exemption from real property
taxes under IC 36-1-10-18 for property leased to the bureau
of motor vehicles or the bureau of motor vehicles commission.
(e) A qualified taxpayer may, before September 1, 2013, file a
property tax exemption application and supporting documents
claiming a property tax exemption under this SECTION for the
eligible property for the assessment date of March 1, 2009.
(f) A property tax exemption application filed under subsection
(e) by a qualified taxpayer is considered to have been timely filed.
(g) The following apply if a qualified taxpayer demonstrates in
the property tax exemption application filed under subsection (e)
or by other means that the eligible property would have qualified
for an exemption under IC 36-1-10-18 for the assessment date of
March 1, 2009:
(1) The property tax exemption for the eligible property shall
be allowed and granted for the assessment date of March 1,
2009, by the county assessor and county auditor of the county
in which the eligible property is located.
(2) The qualified taxpayer is not required to pay any property
taxes, penalties, or interest with respect to the eligible
property for the March 1, 2009, assessment date.
(3) To the extent the qualified taxpayer has paid any property
taxes, penalties, or interest with respect to the eligible
property for the March 1, 2009, assessment date, the eligible
taxpayer is entitled to a refund of the amounts paid.
(h) The exemption allowed by this SECTION shall be applied
without need of any further ruling or action by the county assessor,
the county auditor, or the county property tax assessment board of
appeals of the county in which the eligible property is located or by
the Indiana board of tax review.
(i) This SECTION expires July 1, 2017.
SECTION 46. [EFFECTIVE JANUARY 1, 2007
(RETROACTIVE)] (a) This SECTION applies notwithstanding
IC 6-1.1-10, IC 6-1.1-11, or any other law or administrative rule or
provision.
(b) This SECTION applies to the March 1, 2007, and March 1,
2008, assessment dates.
(c) As used in this SECTION, "eligible property" means the real
property described in subsection (d).
(d) As used in this SECTION, "qualified taxpayer" refers to a
church that:
(1) purchased real property in June 2007;
(2) has used the real property for church purposes since
purchasing the real property; and
(3) filed a property tax exemption application for the real
property in June 2007.
(e) A qualified taxpayer may, before September 1, 2013, file a
property tax exemption application and supporting documents
claiming a property tax exemption under IC 6-1.1-10-16 and this
SECTION for the eligible property for the March 1, 2007, and
March 1, 2008, assessment dates.
(f) A property tax exemption application filed under subsection
(e) by a qualified taxpayer is considered to have been timely filed.
(g) If a qualified taxpayer demonstrates in the property tax
exemption application filed under subsection (e) or by other means
that the eligible property would have qualified for an exemption
under IC 6-1.1-10-16 for the March 1, 2007, and March 1, 2008,
assessment dates if the property tax exemption application had
been filed under IC 6-1.1-11 in a timely manner for the March 1,
2007, and March 1, 2008, assessment dates and the taxpayer had
owned the real property on May 1, 2007:
(1) the property tax exemption for the eligible property shall
be allowed and granted for the March 1, 2007, and March 1,
2008, assessment dates by the county assessor and county
auditor of the county in which the eligible property is located;
(2) the qualified taxpayer is not required to pay any property
taxes, penalties, or interest with respect to the eligible
property for the March 1, 2007, and March 1, 2008,
assessment dates; and
(3) to the extent the qualified taxpayer has paid any property
taxes, penalties, or interest with respect to the eligible
property for the March 1, 2007, and March 1, 2008,
assessment dates, the eligible taxpayer is entitled to a refund
of the amounts paid.
The county auditor may pay the refund in two (2) equal
installments over a two (2) year period.
(h) The exemption allowed by this SECTION shall be applied
without need of any further ruling or action by the county assessor,
the county auditor, or the county property tax assessment board of
appeals of the county in which the eligible property is located or by
the Indiana board of tax review.
(i) This SECTION expires July 1, 2017.
SECTION 47. [EFFECTIVE JANUARY 1, 2011
(RETROACTIVE)] (a) This SECTION applies notwithstanding
IC 6-1.1-10, IC 6-1.1-11, or any other law or administrative rule or
provision.
(b) This SECTION applies to the March 1, 2011, and March 1,
2012, assessment dates.
(c) As used in this SECTION, "eligible property" means the
parcel of real property described in subsection (d)(1) for which the
qualified taxpayer failed to timely file the property tax exemption
application.
(d) As used in this SECTION, "qualified taxpayer" refers to a
nonprofit corporation that:
(1) owns multiple parcels of real property in Marion County
that are owned, occupied, and used for educational, literary,
scientific, religious, or charitable purposes described in
IC 6-1.1-10-16; and
(2) failed to timely file a property tax exemption application
for one (1) of the parcels described in subdivision (1) for the
March 1, 2011, assessment date.
(e) A qualified taxpayer may, before September 1, 2013, file a
property tax exemption application and supporting documents
claiming a property tax exemption under IC 6-1.1-10-16 and this
SECTION for the eligible property for the March 1, 2011, and
March 1, 2012, assessment dates.
(f) A property tax exemption application filed under subsection
(e) by a qualified taxpayer is considered to have been timely filed.
(g) If a qualified taxpayer demonstrates in the property tax
exemption application filed under subsection (e) or by other means
that the eligible property would have qualified for an exemption
under IC 6-1.1-10-16 for the March 1, 2011, and March 1, 2012,
assessment dates if the property tax exemption application had
been filed under IC 6-1.1-11 in a timely manner for the March 1,
2011, and March 1, 2012, assessment dates:
(1) the property tax exemption for the eligible property shall
be allowed and granted for the March 1, 2011, and March 1,
2012, assessment dates by the county assessor and county
auditor of Marion County;
(2) the qualified taxpayer is not required to pay any property
taxes, penalties, or interest with respect to the eligible
property for the March 1, 2011, and March 1, 2012,
assessment dates; and
(3) to the extent the qualified taxpayer has paid any property
taxes, penalties, or interest with respect to the eligible
property for the March 1, 2011, and March 1, 2012,
assessment dates, the eligible taxpayer is entitled to a refund
of the amounts paid.
The county auditor may pay the refund in two (2) equal
installments over a two (2) year period.
(h) The exemption allowed by this SECTION shall be applied
without need of any further ruling or action by the county assessor,
the county auditor, or the county property tax assessment board of
appeals of Marion County or by the Indiana board of tax review.
(i) This SECTION expires July 1, 2017.
SECTION 48. [EFFECTIVE UPON PASSAGE] (a) This
SECTION applies notwithstanding IC 6-1.1-10, IC 6-1.1-11, or any
other law or administrative rule or provision.
(b) This SECTION applies to the March 1, 2011, and March 1,
2012, assessment dates.
(c) As used in this SECTION, "eligible property" means a
vacant parcel of real property in Marion County that is owned, is
occupied, and will be used for educational, literary, scientific,
religious, or charitable purposes described in IC 6-1.1-10-16.
(d) As used in this SECTION, "qualified taxpayer" refers to a
ministry that:
(1) is exempt from federal income taxes;
(2) owns an eligible property;
(3) acquired the eligible property after the 2012 assessment
date; and
(4) redeemed the eligible property after it was sold for
delinquent taxes in 2012.
(e) A qualified taxpayer may before September 1, 2013, file a
property tax exemption application and supporting documents
claiming a property tax exemption under IC 6-1.1-10-16 and this
SECTION for the eligible property for the March 1, 2011, and for
the March 1, 2012, assessment dates.
(f) A property tax exemption application filed under subsection
(e) by a qualified taxpayer is considered to have been timely filed.
(g) If a qualified taxpayer demonstrates in the property tax
exemption application filed under subsection (e) or by other means
that the eligible property would have qualified for an exemption
under IC 6-1.1-10-16 for the March 11, 2011, and March 1, 2012,
assessment dates if the property tax exemption application had
been filed under IC 6-1.1-11 in a timely manner for the March 11,
2011, and March 1, 2012, assessment dates:
(1) the property tax exemption for the eligible property shall
be allowed and granted for the March 11, 2011, and March 1,
2012, assessment dates by the county assessor and county
auditor of Marion County; and
(2) the qualified taxpayer is not required to pay any property
taxes, penalties, or interest with respect to the eligible
property for the March 11, 2011, and March 1, 2012,
assessment dates.
(h) To the extent the qualified taxpayer has:
(1) paid any property taxes, penalties, or interest with respect
to the eligible property for the March 1, 2011, and March 12,
2012, assessment dates; or
(2) paid to redeem the property under IC 6-1.1-24 and
IC 6-1.1-25;
the eligible taxpayer is entitled to a refund of the amounts paid.
Notwithstanding the filing deadlines for a claim in IC 6-1.1-26, any
claim for a refund filed by an eligible taxpayer under this
subsection before September 1, 2013, is considered timely filed.
The county auditor may make a determination that any refund due
under this SECTION shall be paid in two (2) equal annual
installments.
(i) The exemption allowed by this SECTION shall be applied
without need of any further ruling or action by the county assessor,
the county auditor, or the county property tax assessment board of
appeals of Marion County or by the Indiana board of tax review.
(j) This SECTION expires July 1, 2017.
SECTION 49. [EFFECTIVE UPON PASSAGE] (a) This
SECTION applies notwithstanding IC 6-1.1-10, IC 6-1.1-11, or any
other law or administrative rule or provision.
(b) This SECTION applies to the March 1, 2012, and March 1,
2013, assessment dates.
(c) As used in this SECTION, "eligible property" means real
property in Grant County that is:
(1) a national historic landmark; and
(2) owned, occupied, and used for educational, literary,
scientific, religious, or charitable purposes described in
IC 6-1.1-10-16.
(d) As used in this SECTION, "qualified taxpayer" refers to a
charitable organization that:
(1) is exempt from federal income taxes;
(2) owns an eligible property; and
(3) acquired the eligible property after the 2011 assessment
date.
(e) A qualified taxpayer may before September 1, 2013, file a
property tax exemption application and supporting documents
claiming a property tax exemption under IC 6-1.1-10-16 and this
SECTION for the eligible property for the March 1, 2012, and
March 1, 2013, assessment dates.
(f) A property tax exemption application filed under subsection
(e) by a qualified taxpayer is considered to have been timely filed.
(g) If a qualified taxpayer demonstrates in the property tax
exemption application filed under subsection (e) or by other means
that the eligible property would have qualified for an exemption
under IC 6-1.1-10-16 for the March 1, 2012, and March 1, 2013,
assessment dates if the property tax exemption application had
been filed under IC 6-1.1-11 in a timely manner for the March 1,
2012, assessment date:
(1) the property tax exemption for the eligible property shall
be allowed and granted for the March 1, 2012, and March 1,
2013, assessment dates by the county assessor and county
auditor of Grant County; and
(2) the qualified taxpayer is not required to pay any property
taxes, penalties, or interest with respect to the eligible
property for the March 1, 2012, and March 1, 2013,
assessment dates.
(h) The exemption allowed by this SECTION shall be applied
without need of any further ruling or action by the county assessor,
the county auditor, or the county property tax assessment board of
appeals of Grant County or by the Indiana board of tax review.
The county auditor may make a determination that any refund due
under this SECTION shall be paid in two (2) equal annual
installments.
(i) This SECTION expires July 1, 2017.
SECTION 50. [EFFECTIVE JULY 1, 2013] (a) As used in this
SECTION, "taxing unit" has the meaning set forth in
IC 6-1.1-17-20(b).
(b) If:
(1) the fiscal body of a city or town adopted a final budget and
levy for a taxing unit under IC 6-1.1-17-20 (before its
amendment by this act) after June 30, 2012, and before July
1, 2013;
(2) after June 30, 2012, and before July 1, 2013, IC 6-1.1-17-20
(before its amendment by this act) required the taxing unit to
submit the taxing unit's proposed budget and levy to the fiscal
body of a county; and
(3) after June 30, 2013, IC 6-1.1-17-20(c)(2)(B) (as amended
by this act) requires the taxing unit to submit the taxing unit's
proposed budget and levy to the fiscal body of the city or town
that appoints the majority of the individuals serving on the
governing board of the taxing unit;
the action taken by the fiscal body of the city or town under
IC 6-1.1-17-20 (before its amendment by this act) to adopt a final
budget and levy for the taxing unit after June 30, 2012, and before
July 1, 2013, is legalized and validated.
(c) This SECTION expires January 1, 2014.
SECTION 51. [EFFECTIVE UPON PASSAGE] (a)
IC 6-1.1-20.6-2, as amended by this act, applies only to property
taxes first due and payable after December 31, 2013.
(b) This SECTION expires July 1, 2016.
SECTION 52. [EFFECTIVE UPON PASSAGE] (a)
IC 6-1.1-20.6-9.8, as amended by this act, applies to property taxes
first due and payable after December 31, 2012.
(b) This SECTION expires January 1, 2015.
SECTION 53. An emergency is declared for this act.
SEA 517 _ CC 1
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