Section 6-1.1-17-3.1 - School corporation operating referendum tax levy; maximum amount(a) This section:(1) applies only to an operating referendum tax levy under IC 20-46-1 approved by the voters before January 1, 2023, that is imposed by a school corporation for taxes first due and payable in 2024 and 2025;(2) does not apply to an operating referendum tax levy under IC 20-46-1: (A) approved by the voters during a time that the school corporation imposing the levy was designated as a distressed political subdivision; or(B) approved by the voters after December 31, 2022, and before January 1, 2025, that is imposed by a school corporation for taxes first due and payable in 2024 or 2025; and(3) does not apply to any other tax year.(b) As used in this section, "ADM" refers to the school corporation's average daily membership used to determine the state tuition support distribution under IC 20-43. In the case of a school corporation that has entered into an agreement with one (1) or more charter schools to participate as an innovation network charter school under IC 20-25.7-5, the term includes the average daily membership of any innovation network charter school that is treated as a school operated by the school corporation when calculating the total amount of state tuition support to be distributed to the school corporation.(c) Notwithstanding any increase in the assessed value of property from the previous assessment date, for taxes first due and payable in 2024, the total amount of operating referendum tax that may be levied by a school corporation may not exceed the lesser of:(1) the maximum operating referendum tax that could have been levied by the school corporation if the maximum referendum rate was imposed for taxes first due and payable in 2023 multiplied by one and three-hundredths (1.03); or(2) the maximum operating referendum tax that could otherwise be levied by the school corporation for taxes first due and payable in 2024. The tax rate for an operating referendum tax levy shall be decreased, if necessary, to comply with this limitation.
(d) Notwithstanding any increase in the assessed value of property from the previous assessment date, for taxes first due and payable in 2025, the total amount of operating referendum tax that may be levied by a school corporation may not exceed the lesser of the following: (1) The maximum operating referendum tax that could have been levied by the school corporation if the maximum referendum rate was imposed for taxes first due and payable in the immediately preceding calendar year, as adjusted by this section, multiplied by the result determined under STEP SEVEN of the following formula: STEP ONE: Subtract:
(i) the school corporation's spring count of ADM made in the calendar year preceding by five (5) years the calendar year in which the property taxes are first due and payable; from(ii) the school corporation's spring count of ADM made in the immediately preceding calendar year. STEP TWO: Divide the STEP ONE result by four (4).
STEP THREE: Divide the STEP TWO result by the school corporation's spring count of ADM made in the calendar year preceding by five (5) years the calendar year in which the property taxes are first due and payable.
STEP FOUR: Multiply the STEP THREE amount by one and five-tenths (1.5).
STEP FIVE: Add the STEP FOUR result and one and six-hundredths (1.06).
STEP SIX: Determine the greater of the STEP FIVE result or one and six-hundredths (1.06).
STEP SEVEN: Determine the lesser of the STEP SIX result or one and twelve-hundredths (1.12).
(2) The maximum operating referendum tax that could otherwise be levied by the school corporation for taxes first due and payable in the current calendar year. The tax rate for an operating referendum tax levy shall be decreased, if necessary, to comply with this limitation.
(e) The department of education shall provide to the department of local government finance each school corporation's applicable ADM counts as needed to make the determinations under this section.Amended by P.L. 136-2024,SEC. 20, eff. 3/13/2024.Added by P.L. 239-2023,SEC. 4, eff. 5/4/2023.