Ind. Code § 6-1.1-18.5-3

Current through P.L. 171-2024

Section 6-1.1-18.5-3 - Maximum ad valorem property tax levy; formula

(a) A civil taxing unit may not impose an ad valorem property tax levy for an ensuing calendar year that exceeds the amount determined in the last STEP of the following STEPS:

STEP ONE: Determine the civil taxing unit's maximum permissible ad valorem property tax levy for the preceding calendar year.

STEP TWO: Multiply the amount determined in STEP ONE by the amount determined in the last STEP of section 2(b) of this chapter.

STEP THREE: Determine the lesser of one and fifteen hundredths (1.15) or the quotient (rounded to the nearest ten-thousandth (0.0001)), of the assessed value of all taxable property subject to the civil taxing unit's ad valorem property tax levy for the ensuing calendar year, divided by the assessed value of all taxable property that is subject to the civil taxing unit's ad valorem property tax levy for the ensuing calendar year and that is contained within the geographic area that was subject to the civil taxing unit's ad valorem property tax levy in the preceding calendar year.

STEP FOUR: Determine the greater of the amount determined in STEP THREE or one (1).

STEP FIVE: Multiply the amount determined in STEP TWO by the amount determined in STEP FOUR.

STEP SIX: Add the amount determined under STEP TWO to the amount of an excessive levy appeal granted under section 13 of this chapter for the ensuing calendar year.

STEP SEVEN: Determine the greater of STEP FIVE or STEP SIX.

(b) This subsection applies only to a civil taxing unit that is located in a county that is covered by IC 6-3.6-11-1. For purposes of subsection (a), revenue under IC 6-3.6-6 that is applied for purposes of a levy freeze shall not be included in the amount determined under STEP ONE of subsection (a) for the civil taxing unit. Notwithstanding any provision in this section, any other section of this chapter, or IC 12-20-21-3.2, and except as provided in subsection (c), if the adopting body has adopted a resolution specifying that any increase in the maximum levy is to be funded using local income tax revenue, the maximum permissible ad valorem property tax levy calculated under this section for the ensuing calendar year for the civil taxing unit is equal to the civil taxing unit's maximum permissible ad valorem property tax levy for the current calendar year. If the adopting body has adopted a resolution specifying that any increase in the maximum levy is not to be funded using local income tax revenue, the maximum permissible ad valorem property tax levy for the civil taxing unit is equal to the civil taxing unit's maximum permissible ad valorem property tax levy calculated under this section for the ensuing calendar year.

(c) In the case of a civil taxing unit that:

(1) is partially located in a county that is covered by IC 6-3.6-11-1; and

(2) is partially located in a county that is not described in subdivision (1);

the department of local government finance shall, notwithstanding subsection (b), adjust the portion of the civil taxing unit's maximum permissible ad valorem property tax levy that is attributable (as determined by the department of local government finance) to the county or counties described in subdivision (2). The department of local government finance shall adjust this portion of the civil taxing unit's maximum permissible ad valorem property tax levy so that, notwithstanding subsection (b), this portion is allowed to increase as otherwise provided in this section. If the department of local government finance increases the civil taxing unit's maximum permissible ad valorem property tax levy under this subsection, any additional property taxes imposed by the civil taxing unit under the adjustment shall be paid only by the taxpayers in the county or counties described in subdivision (2).

IC 6-1.1-18.5-3

Amended by P.L. 247-2017,SEC. 1, eff. 1/1/2017.

Amended by P.L. 197-2016, SEC. 14, eff. 1/1/2017.

Amended by P.L. 153-2014, SEC. 1, eff. 7/1/2014.

Amended by P.L. 234-2013, SEC. 1, eff. 7/1/2013.

Amended by P.L. 172-2011, SEC. 35, eff. 1/1/2012.

Amended by P.L. 42-2011, SEC. 7, eff. 4/20/2011.

As added by P.L. 73-1983, SEC.1. Amended by P.L. 64-1986, SEC.1; P.L. 78-1987, SEC.4; P.L. 151-2001, SEC.4; P.L. 198-2001, SEC.53; P.L. 1-2002, SEC.21; P.L. 192-2002 (ss), SEC.36; P.L. 1-2003, SEC.25; P.L. 224-2007, SEC.20; P.L. 146-2008, SEC.169.