CHAPTER 17. PROCEDURES FOR FIXING AND REVIEWING BUDGETS, TAX RATES, AND TAX LEVIES
IC 6-1.1-17
Chapter 17. Procedures for Fixing and Reviewing Budgets, Tax
Rates, and Tax Levies
IC 6-1.1-17-0.5
Exclusion by county auditor of certain assessed value on tax
duplicate; county auditor reduction of assessed value used to set
tax rates; limitation on reduction; reduction may not be offered as
evidence in appeal
Sec. 0.5. (a) For purposes of this section, "assessed value" has the
meaning set forth in IC 6-1.1-1-3(a).
(b) The county auditor may exclude and keep separate on the tax
duplicate for taxes payable in a calendar year the assessed value of
tangible property that meets the following conditions:
(1) The assessed value of the property is at least nine percent
(9%) of the assessed value of all tangible property subject to
taxation by a taxing unit.
(2) The property is or has been part of a bankruptcy estate that
is subject to protection under the federal bankruptcy code.
(3) The owner of the property has discontinued all business
operations on the property.
(4) There is a high probability that the taxpayer will not pay
property taxes due on the property in the following year.
(c) This section does not limit, restrict, or reduce in any way the
property tax liability on the property.
(d) For each taxing unit located in the county, the county auditor
may reduce for a calendar year the taxing unit's assessed value that
is certified to the department of local government finance under
section 1 of this chapter and used to set tax rates for the taxing unit
for taxes first due and payable in the immediately succeeding
calendar year. The county auditor may reduce a taxing unit's assessed
value under this subsection only to enable the taxing unit to absorb
the effects of reduced property tax collections in the immediately
succeeding calendar year that are expected to result from any or a
combination of the following:
(1) Successful appeals of the assessed value of property located
in the taxing unit.
(2) Deductions under IC 6-1.1-12-37 and IC 6-1.1-12-37.5 that
result from the granting of applications for the standard
deduction for the calendar year under IC 6-1.1-12-37 or
IC 6-1.1-12-44 after the county auditor certifies assessed value
as described in this section.
(3) Deductions that result from the granting of applications for
deductions for the calendar year under IC 6-1.1-12-44 after the
county auditor certifies assessed value as described in this
section.
(4) Reassessments of real property under IC 6-1.1-4-11.5.
Not later than December 31 of each year, the county auditor shall
send a certified statement, under the seal of the board of county
commissioners, to the fiscal officer of each political subdivision of
the county and to the department of local government finance. The
certified statement must list any adjustments to the amount of the
reduction under this subsection and the information submitted under
section 1 of this chapter that are necessary. The county auditor shall
keep separately on the tax duplicate the amount of any reductions
made under this subsection. The maximum amount of the reduction
authorized under this subsection is determined under subsection (e).
(e) The amount of the reduction in a taxing unit's assessed value
for a calendar year under subsection (d) may not exceed two percent
(2%) of the assessed value of tangible property subject to assessment
in the taxing unit in that calendar year.
(f) The amount of a reduction under subsection (d) may not be
offered in a proceeding before the:
(1) county property tax assessment board of appeals;
(2) Indiana board; or
(3) Indiana tax court;
as evidence that a particular parcel has been improperly assessed.
As added by P.L.291-2001, SEC.206. Amended by P.L.154-2006,
SEC.41; P.L.144-2008, SEC.39; P.L.90-2009, SEC.2;
P.L.182-2009(ss), SEC.113.
IC 6-1.1-17-1
County auditor certified statement; amendment of statement
Sec. 1. (a) On or before August 1 of each year, the county auditor
shall send a certified statement, under the seal of the board of county
commissioners, to the fiscal officer of each political subdivision of
the county and the department of local government finance. The
statement shall contain:
(1) information concerning the assessed valuation in the
political subdivision for the next calendar year;
(2) an estimate of the taxes to be distributed to the political
subdivision during the last six (6) months of the current
calendar year;
(3) the current assessed valuation as shown on the abstract of
charges;
(4) the average growth in assessed valuation in the political
subdivision over the preceding three (3) budget years, excluding
years in which a general reassessment occurs, determined
according to procedures established by the department of local
government finance;
(5) the amount of the political subdivision's assessed valuation
reduction determined under section 0.5(d) of this chapter;
(6) for counties with taxing units that cross into or intersect
with other counties, the assessed valuation as shown on the
most current abstract of property; and
(7) any other information at the disposal of the county auditor
that might affect the assessed value used in the budget adoption
process.
(b) The estimate of taxes to be distributed shall be based on:
(1) the abstract of taxes levied and collectible for the current
calendar year, less any taxes previously distributed for the
calendar year; and
(2) any other information at the disposal of the county auditor
which might affect the estimate.
(c) The fiscal officer of each political subdivision shall present the
county auditor's statement to the proper officers of the political
subdivision.
(d) Subject to subsection (e), after the county auditor sends a
certified statement under subsection (a) or an amended certified
statement under this subsection with respect to a political subdivision
and before the department of local government finance certifies its
action with respect to the political subdivision under section 16(f) of
this chapter, the county auditor may amend the information
concerning assessed valuation included in the earlier certified
statement. The county auditor shall send a certified statement
amended under this subsection, under the seal of the board of county
commissioners, to:
(1) the fiscal officer of each political subdivision affected by
the amendment; and
(2) the department of local government finance.
(e) Except as provided in subsection (f), before the county auditor
makes an amendment under subsection (d), the county auditor must
provide an opportunity for public comment on the proposed
amendment at a public hearing. The county auditor must give notice
of the hearing under IC 5-3-1. If the county auditor makes the
amendment as a result of information provided to the county auditor
by an assessor, the county auditor shall give notice of the public
hearing to the assessor.
(f) The county auditor is not required to hold a public hearing
under subsection (e) if:
(1) the amendment under subsection (d) is proposed to correct
a mathematical error made in the determination of the amount
of assessed valuation included in the earlier certified statement;
(2) the amendment under subsection (d) is proposed to add to
the amount of assessed valuation included in the earlier
certified statement assessed valuation of omitted property
discovered after the county auditor sent the earlier certified
statement; or
(3) the county auditor determines that the amendment under
subsection (d) will not result in an increase in the tax rate or tax
rates of the political subdivision.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.37-1992,
SEC.4; P.L.49-1996, SEC.1; P.L.50-1996, SEC.1; P.L.90-2002,
SEC.147; P.L.154-2006, SEC.42; P.L.146-2008, SEC.146;
P.L.1-2010, SEC.25.
IC 6-1.1-17-2
Budget estimates
Sec. 2. (a) When formulating an annual budget estimate, the
proper officers of a political subdivision shall prepare an estimate of
the amount of revenue which the political subdivision will receive
from the state for and during the budget year for which the budget is
being formulated. These estimated revenues shall be shown in the
budget estimate and shall be taken into consideration in calculating
the tax levy which is to be made for the ensuing calendar year.
However, this section does not apply to funds to be received from the
state or the federal government for:
(1) township assistance;
(2) unemployment relief;
(3) old age pensions; or
(4) other funds which may at any time be made available under
"The Economic Security Act" or under any other federal act
which provides for civil and public works projects.
(b) When formulating an annual budget estimate, the proper
officers of a political subdivision shall prepare an estimate of the
amount of revenue that the political subdivision will receive under
a development agreement (as defined in IC 36-1-8-9.5) for and
during the budget year for which the budget is being formulated.
Revenue received under a development agreement may not be used
to reduce the political subdivision's maximum levy under
IC 6-1.1-18.5 but may be used at the discretion of the political
subdivision to reduce the property tax levy of the political
subdivision for a particular year.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.50-1996,
SEC.2; P.L.73-2005, SEC.1; P.L.199-2005, SEC.12; P.L.1-2006,
SEC.135.
IC 6-1.1-17-3
Formulation of local budgets, rates, and levies; public notice; solid
waste management district public hearing; township trustee
estimate of cost of township assistance
Sec. 3. (a) The proper officers of a political subdivision shall
formulate its estimated budget and its proposed tax rate and tax levy
on the form prescribed by the department of local government
finance and approved by the state board of accounts. The political
subdivision shall give notice by publication to taxpayers of:
(1) the estimated budget;
(2) the estimated maximum permissible levy;
(3) the current and proposed tax levies of each fund; and
(4) the amounts of excessive levy appeals to be requested.
In the notice, the political subdivision shall also state the time and
place at which a public hearing will be held on these items. The
notice shall be published twice in accordance with IC 5-3-1 with the
first publication at least ten (10) days before the date fixed for the
public hearing. Beginning in 2009, the duties required by this
subsection must be completed before September 10 of the calendar
year.
(b) The board of directors of a solid waste management district
established under IC 13-21 or IC 13-9.5-2 (before its repeal) may
conduct the public hearing required under subsection (a):
(1) in any county of the solid waste management district; and
(2) in accordance with the annual notice of meetings published
under IC 13-21-5-2.
(c) The trustee of each township in the county shall estimate the
amount necessary to meet the cost of township assistance in the
township for the ensuing calendar year. The township board shall
adopt with the township budget a tax rate sufficient to meet the
estimated cost of township assistance. The taxes collected as a result
of the tax rate adopted under this subsection are credited to the
township assistance fund.
(d) This subsection expires January 1, 2009. A county shall adopt
with the county budget and the department of local government
finance shall certify under section 16 of this chapter a tax rate
sufficient to raise the levy necessary to pay the following:
(1) The cost of child services (as defined in IC 12-19-7-1) of the
county payable from the family and children's fund.
(2) The cost of children's psychiatric residential treatment
services (as defined in IC 12-19-7.5-1) of the county payable
from the children's psychiatric residential treatment services
fund.
A budget, tax rate, or tax levy adopted by a county fiscal body or
approved or modified by a county board of tax adjustment that is less
than the levy necessary to pay the costs described in subdivision (1)
or (2) shall not be treated as a final budget, tax rate, or tax levy under
section 11 of this chapter.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by Acts 1981,
P.L.45, SEC.5; P.L.34-1994, SEC.1; P.L.33-1994, SEC.1;
P.L.1-1996, SEC.41; P.L.51-1996, SEC.1; P.L.49-1996, SEC.2;
P.L.2-1997, SEC.17; P.L.50-1996, SEC.3; P.L.90-2002, SEC.148;
P.L.178-2002, SEC.23; P.L.256-2003, SEC.14; P.L.73-2005, SEC.2;
P.L.234-2005, SEC.3; P.L.162-2006, SEC.3; P.L.219-2007, SEC.49;
P.L.224-2007, SEC.5; P.L.3-2008, SEC.41; P.L.146-2008, SEC.147;
P.L.87-2009, SEC.6; P.L.136-2009, SEC.6; P.L.182-2009(ss),
SEC.114.
IC 6-1.1-17-3.5
Certain civil taxing units must file with the county fiscal body a
statement of rate, levy, and budget; deadline for filing; action by
county fiscal body; consequence of failure to act by taxing unit or
fiscal body
Sec. 3.5. (a) This section does not apply to civil 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 civil taxing unit that has its proposed budget and proposed
property tax levy approved under section 20 of this chapter or
IC 36-3-6-9.
(b) This section applies to a civil taxing unit other than a county.
If a civil taxing unit will impose property taxes due and payable in
the ensuing calendar year, the civil taxing unit shall file with the
fiscal body of the county in which the civil taxing unit is located:
(1) a statement of the proposed or estimated tax rate and tax
levy for the civil taxing unit for the ensuing budget year; and
(2) a copy of the civil taxing unit's proposed budget for the
ensuing budget year.
(c) In the case of a civil taxing unit located in more than one (1)
county, the civil taxing unit shall file the information under
subsection (b) with the fiscal body of the county in which the
greatest part of the civil taxing unit's net assessed valuation is
located.
(d) A civil taxing unit must file the information under subsection
(b) at least forty-five (45) days before the civil taxing unit fixes its
tax rate and tax levy and adopts its budget under this chapter.
(e) A county fiscal body shall complete the following at least
fifteen (15) days before the civil taxing unit fixes its tax rate and tax
levy and adopts its budget under this chapter:
(1) Review any proposed or estimated tax rate or tax levy or
proposed budget filed by a civil taxing unit with the county
fiscal body under this section.
(2) Issue a nonbinding recommendation to a civil taxing unit
regarding the civil 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 civil 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 civil 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 civil taxing unit fails to file the information required by
subsection (b) with the fiscal body of the county in which the civil
taxing unit is located by the time prescribed in subsection (d), the
most recent annual appropriations and annual tax levy of that civil
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 civil
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.
As added by P.L.146-2008, SEC.148. Amended by P.L.182-2009(ss),
SEC.115.
IC 6-1.1-17-4
Repealed
(Repealed by Acts 1981, P.L.45, SEC.105.)
IC 6-1.1-17-5
Time for meetings to set local budget, rate, and levy; taxpayer
objections; information to be filed with the county auditor by civil
taxing units; presentation of information to county board of tax
adjustment; carryover of appropriations if budget, rate, and levy
not set
Sec. 5. (a) The officers of political subdivisions shall meet each
year to fix the budget, tax rate, and tax levy of their respective
subdivisions for the ensuing budget year as follows:
(1) The board of school trustees of a school corporation that is
located in a city having a population of more than one hundred
five thousand (105,000) but less than one hundred twenty
thousand (120,000), not later than:
(A) the time required in section 5.6(b) of this chapter; or
(B) November 1 if a resolution adopted under section 5.6(d)
of this chapter is in effect.
(2) The proper officers of all other political subdivisions that
are not school corporations, not later than November 1.
(3) The governing body of a school corporation (other than a
school corporation described in subdivision (1)) that elects to
adopt a budget under section 5.6 of this chapter for budget years
beginning after June 30, 2011, not later than the time required
under section 5.6(b) of this chapter for budget years beginning
after June 30, 2011.
(4) The governing body of a school corporation that is not
described in subdivision (1) or (3), not later than November 1.
Except in a consolidated city and county and in a second class city,
the public hearing required by section 3 of this chapter must be
completed at least ten (10) days before the proper officers of the
political subdivision meet to fix the budget, tax rate, and tax levy. In
a consolidated city and county and in a second class city, that public
hearing, by any committee or by the entire fiscal body, may be held
at any time after introduction of the budget.
(b) Ten (10) or more taxpayers may object to a budget, tax rate,
or tax levy of a political subdivision fixed under subsection (a) by
filing an objection petition with the proper officers of the political
subdivision not more than seven (7) days after the hearing. The
objection petition must specifically identify the provisions of the
budget, tax rate, and tax levy to which the taxpayers object.
(c) If a petition is filed under subsection (b), the fiscal body of the
political subdivision shall adopt with its budget a finding concerning
the objections in the petition and any testimony presented at the
adoption hearing.
(d) This subsection does not apply to a school corporation. Each
year at least two (2) days before the first meeting of the county board
of tax adjustment held under IC 6-1.1-29-4, a political subdivision
shall file with the county auditor:
(1) a statement of the tax rate and levy fixed by the political
subdivision for the ensuing budget year;
(2) two (2) copies of the budget adopted by the political
subdivision for the ensuing budget year; and
(3) two (2) copies of any findings adopted under subsection (c).
Each year the county auditor shall present these items to the county
board of tax adjustment at the board's first meeting under
IC 6-1.1-29-4.
(e) In a consolidated city and county and in a second class city,
the clerk of the fiscal body shall, notwithstanding subsection (d), file
the adopted budget and tax ordinances with the county board of tax
adjustment within two (2) days after the ordinances are signed by the
executive, or within two (2) days after action is taken by the fiscal
body to override a veto of the ordinances, whichever is later.
(f) If a fiscal body does not fix the budget, tax rate, and tax levy
of the political subdivisions for the ensuing budget year as required
under this section, the most recent annual appropriations and annual
tax levy are continued for the ensuing budget year.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by Acts 1979,
P.L.57, SEC.1; Acts 1980, P.L.8, SEC.53; Acts 1981, P.L.52, SEC.2;
P.L.8-1987, SEC.11; P.L.8-1989, SEC.24; P.L.81-1989, SEC.1;
P.L.44-1991, SEC.2; P.L.1-1992, SEC.15; P.L.35-1994, SEC.1;
P.L.34-1994, SEC.2; P.L.1-1996, SEC.42; P.L.49-1996, SEC.3;
P.L.50-1996, SEC.4; P.L.96-2000, SEC.1; P.L.178-2001, SEC.1;
P.L.177-2002, SEC.6; P.L.170-2002, SEC.19; P.L.178-2002,
SEC.24; P.L.1-2003, SEC.23; P.L.169-2006, SEC.8; P.L.219-2007,
SEC.50; P.L.224-2007, SEC.6; P.L.3-2008, SEC.42; P.L.146-2008,
SEC.149; P.L.182-2009(ss), SEC.116; P.L.111-2010, SEC.1.
IC 6-1.1-17-5.1
Repealed
(Repealed by P.L.96-2000, SEC.8.)
IC 6-1.1-17-5.6
School corporations; adoption of resolution
Sec. 5.6. (a) For budget years beginning before July 1, 2011, this
section applies only to a school corporation that is located in a city
having a population of more than one hundred five thousand
(105,000) but less than one hundred twenty thousand (120,000). For
budget years beginning after June 30, 2011, this section applies to all
school corporations. Beginning in 2011, each school corporation may
elect to adopt a budget under this section that applies from July 1 of
the year through June 30 of the following year. In the initial budget
adopted by a school corporation under this section, the first six (6)
months of that initial budget must be consistent with the last six (6)
months of the budget adopted by the school corporation for the
calendar year in which the school corporation elects by resolution to
begin adopting budgets that correspond to the state fiscal year. A
corporation shall submit a copy of the resolution to the department
of local government finance and the department of education not
more than thirty (30) days after the date the governing body adopts
the resolution.
(b) Before February 1 of each year, the officers of the school
corporation shall meet to fix the budget for the school corporation for
the ensuing budget year, with notice given by the same officers.
However, if a resolution adopted under subsection (d) is in effect, the
officers shall meet to fix the budget for the ensuing budget year
before November 1.
(c) Each year, at least two (2) days before the first meeting of the
county board of tax adjustment held under IC 6-1.1-29-4, the school
corporation shall file with the county auditor:
(1) a statement of the tax rate and tax levy fixed by the school
corporation for the ensuing budget year;
(2) two (2) copies of the budget adopted by the school
corporation for the ensuing budget year; and
(3) any written notification from the department of local
government finance under section 16(i) of this chapter that
specifies a proposed revision, reduction, or increase in the
budget adopted by the school corporation for the ensuing
budget year.
Each year the county auditor shall present these items to the county
board of tax adjustment at the board's first meeting under
IC 6-1.1-29-4.
(d) The governing body of the school corporation may adopt a
resolution to cease using a school year budget year and return to
using a calendar year budget year. A resolution adopted under this
subsection must be adopted after January 1 and before July 1. The
school corporation's initial calendar year budget year following the
adoption of a resolution under this subsection begins on January 1 of
the year following the year the resolution is adopted. The first six (6)
months of the initial calendar year budget for the school corporation
must be consistent with the last six (6) months of the final school
year budget fixed by the department of local government finance
before the adoption of a resolution under this subsection.
(e) A resolution adopted under subsection (d) may be rescinded
by a subsequent resolution adopted by the governing body. If the
governing body of the school corporation rescinds a resolution
adopted under subsection (d) and returns to a school year budget
year, the school corporation's initial school year budget year begins
on July 1 following the adoption of the rescinding resolution and
ends on June 30 of the following year. The first six (6) months of the
initial school year budget for the school corporation must be
consistent with the last six (6) months of the last calendar year
budget fixed by the department of local government finance before
the adoption of a rescinding resolution under this subsection.
As added by P.L.178-2001, SEC.2. Amended by P.L.90-2002,
SEC.149; P.L.177-2002, SEC.7; P.L.219-2007, SEC.51;
P.L.224-2007, SEC.7; P.L.3-2008, SEC.43; P.L.146-2008, SEC.150;
P.L.182-2009(ss), SEC.117; P.L.111-2010, SEC.2.
IC 6-1.1-17-6
Review by county board; revision
Sec. 6. (a) The county board of tax adjustment shall review the
budget, tax rate, and tax levy of each political subdivision filed with
the county auditor under section 5 or 5.6 of this chapter. The board
shall revise or reduce, but not increase, any budget, tax rate, or tax
levy in order:
(1) to limit the tax rate to the maximum amount permitted under
IC 6-1.1-18; and
(2) to limit the budget to the amount of revenue to be available
in the ensuing budget year for the political subdivision.
(b) The county board of tax adjustment shall make a revision or
reduction in a political subdivision's budget only with respect to the
total amounts budgeted for each office or department within each of
the major budget classifications prescribed by the state board of
accounts.
(c) When the county board of tax adjustment makes a revision or
reduction in a budget, tax rate, or tax levy, it shall file with the
county auditor a written order which indicates the action taken. If the
board reduces the budget, it shall also indicate the reason for the
reduction in the order. The chairman of the county board shall sign
the order.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.50-1996,
SEC.6; P.L.178-2001, SEC.3; P.L.224-2007, SEC.8; P.L.146-2008,
SEC.151.
IC 6-1.1-17-7
Multiple county political subdivision; filing budget, tax levy, and
tax rate; jurisdiction
Sec. 7. If the boundaries of a political subdivision cross one (1) or
more county lines, the budget, tax levy, and tax rate fixed by the
political subdivision shall be filed with the county auditor of each
affected county in the manner prescribed in section 5 or 5.6 of this
chapter. The board of tax adjustment of the county which contains
the largest portion of the value of property taxable by the political
subdivision, as determined from the abstracts of taxable values last
filed with the auditor of state, has jurisdiction over the budget, tax
rate, and tax levy to the same extent as if the property taxable by the
political subdivision were wholly within the county. The secretary of
the county board of tax adjustment shall notify the county auditor of
each affected county of the action of the board. Appeals from actions
of the county board of tax adjustment may be initiated in any
affected county.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.50-1996,
SEC.7; P.L.178-2001, SEC.4; P.L.224-2007, SEC.9; P.L.146-2008,
SEC.152.
IC 6-1.1-17-8
Maximum aggregate tax rate; inadequacy; recommendations
Sec. 8. (a) If the county board of tax adjustment determines that
the maximum aggregate tax rate permitted within a political
subdivision under IC 6-1.1-18 is inadequate, the county board shall,
subject to the limitations prescribed in IC 20-45-4 (before January 1,
2009), file its written recommendations in duplicate with the county
auditor. The board shall include with its recommendations:
(1) an analysis of the aggregate tax rate within the political
subdivision;
(2) a recommended breakdown of the aggregate tax rate among
the political subdivisions whose tax rates compose the
aggregate tax rate within the political subdivision; and
(3) any other information that the county board considers
relevant to the matter.
(b) The county auditor shall forward one (1) copy of the county
board's recommendations to the department of local government
finance and shall retain the other copy in the county auditor's office.
The department of local government finance shall, in the manner
prescribed in section 16 of this chapter, review the budgets by fund,
tax rates, and tax levies of the political subdivisions described in
subsection (a)(2).
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.90-2002,
SEC.150; P.L.228-2005, SEC.19; P.L.2-2006, SEC.37;
P.L.224-2007, SEC.10; P.L.146-2008, SEC.153.
IC 6-1.1-17-8.5
Review by department if assessed value reduced; appeal
Sec. 8.5. (a) If a county auditor reduces a taxing unit's assessed
valuation under section 0.5(d) of this chapter, the department of local
government finance shall, in the manner prescribed in section 16 of
this chapter, review the budget, tax rate, and tax levy of the taxing
unit.
(b) The county auditor may appeal to the department of local
government finance to reduce a taxing unit's assessed valuation by an
amount that exceeds the limits set forth in section 0.5(e) of this
chapter. The department of local government finance:
(1) may require the county auditor to submit supporting
information with the county auditor's appeal;
(2) shall consider the appeal at the time of the review required
by subsection (a); and
(3) may approve, modify and approve, or reject the amount of
the reduction sought in the appeal.
As added by P.L.154-2006, SEC.43.
IC 6-1.1-17-9
Deadline for completion of duties by county board of tax
adjustment; county auditor action if county board fails to act
Sec. 9. (a) The county board of tax adjustment shall complete the
duties assigned to it under this chapter on or before November 2 of
each year, except that in a consolidated city and county and in a
county containing a second class city, the duties of this board need
not be completed until December 1 of each year.
(b) If the county board of tax adjustment fails to complete the
duties assigned to it within the time prescribed in this section or to
reduce aggregate tax rates so that they do not exceed the maximum
rates permitted under IC 6-1.1-18, the county auditor shall calculate
and fix the tax rate within each political subdivision of the county so
that the maximum rate permitted under IC 6-1.1-18 is not exceeded.
(c) When the county auditor calculates and fixes tax rates, the
county auditor shall send a certificate notice of those rates to each
political subdivision of the county. The county auditor shall send
these notices within five (5) days after:
(1) publication of the notice required by section 12 of this
chapter; or
(2) the tax rates are calculated and fixed by the county auditor;
whichever applies.
(d) When the county auditor calculates and fixes tax rates, that
action shall be treated as if it were the action of the county board of
tax adjustment.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by Acts 1981,
P.L.52, SEC.3; P.L.44-1991, SEC.3; P.L.224-2007, SEC.11;
P.L.146-2008, SEC.154; P.L.182-2009(ss), SEC.118.
IC 6-1.1-17-10
Maximum aggregate tax rate; exceeding; procedure
Sec. 10. When the aggregate tax rate within a political
subdivision, as approved or modified by the county board of tax
adjustment (before January 1, 2009), exceeds the maximum
aggregate tax rate prescribed in IC 6-1.1-18-3(a), the county auditor
shall certify the budgets, tax rates, and tax levies of the political
subdivisions whose tax rates compose the aggregate tax rate within
the political subdivision, as approved or modified by the county
board, to the department of local government finance for final
review. For purposes of this section, the maximum aggregate tax rate
limit exceptions provided in IC 6-1.1-18-3(b) do not apply.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.90-2002,
SEC.151; P.L.224-2007, SEC.12; P.L.146-2008, SEC.155.
IC 6-1.1-17-11
Final budget, tax rate, and tax levy; appeal and review
Sec. 11. A budget, tax rate, or tax levy of a political subdivision,
as approved or modified by the county board of tax adjustment, is
final unless:
(1) action is taken by the county auditor in the manner provided
under section 9 of this chapter;
(2) the action of the county board is subject to review by the
department of local government finance under section 8 or 10
of this chapter; or
(3) an appeal to the department of local government finance is
initiated with respect to the budget, tax rate, or tax levy.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.50-1996,
SEC.8; P.L.90-2002, SEC.152; P.L.224-2007, SEC.13;
P.L.146-2008, SEC.156.
IC 6-1.1-17-12
County auditor notice to taxpayers of modification of budgets,
rates, and levies by county board of tax adjustment; notice of
appeal opportunity
Sec. 12. If the budgets, tax rates, or tax levies are modified by the
county board of tax adjustment or county auditor, the county auditor
shall within fifteen (15) days of the modification prepare a notice of
the tax rates to be charged on each one hundred dollars ($100) of
assessed valuation for the various funds in each taxing district. The
notice shall also inform the taxpayers of the manner in which they
may initiate an appeal of the modification by the county board or
county auditor. The county auditor shall post the notice at the county
courthouse and publish it in two (2) newspapers which represent
different political parties and which have a general circulation in the
county.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by Acts 1981,
P.L.52, SEC.4; P.L.224-2007, SEC.14; P.L.146-2008, SEC.157;
P.L.182-2009(ss), SEC.119.
IC 6-1.1-17-13
Appeal by taxpayers of modification of budgets, rates, and levies
by county board of tax adjustment; action on the appeal required
by the department of local government finance
Sec. 13. (a) Ten (10) or more taxpayers or one (1) taxpayer that
owns property that represents at least ten percent (10%) of the
taxable assessed valuation in the political subdivision may initiate an
appeal from the county board of tax adjustment's or county auditor's
modification of a political subdivision's budget, tax rate, or tax levy
by filing a statement of their objections with the county auditor. The
statement must be filed not later than ten (10) days after the
publication of the notice required by section 12 of this chapter. The
statement shall specifically identify the provisions of the budget, tax
rate, or tax levy to which the taxpayers object. The county auditor
shall forward the statement, with the budget, to the department of
local government finance.
(b) The department of local government finance shall:
(1) subject to subsection (c), give notice to the first ten (10)
taxpayers whose names appear on the petition, or to the
taxpayer that owns property that represents at least ten percent
(10%) of the taxable assessed valuation in the political
subdivision in the case of an appeal initiated by that taxpayer,
of the date, time, and location of the hearing on the objection
statement filed under subsection (a);
(2) conduct a hearing on the objection; and
(3) after the hearing:
(A) consider the testimony and evidence submitted at the
hearing; and
(B) mail the department's:
(i) written determination; and
(ii) written statement of findings;
to the first ten (10) taxpayers whose names appear on the
petition, or to the taxpayer that owns property that represents
at least ten percent (10%) of the taxable assessed valuation
in the political subdivision in the case of an appeal initiated
by that taxpayer.
The department of local government finance may hold the hearing in
conjunction with the hearing required under IC 6-1.1-17-16.
(c) The department of local government finance shall provide
written notice to:
(1) the first ten (10) taxpayers whose names appear on the
petition; or
(2) the taxpayer that owns property that represents at least ten
percent (10%) of the taxable assessed valuation in the political
subdivision, in the case of an appeal initiated by that taxpayer;
at least five (5) days before the date of the hearing.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.90-2002,
SEC.153; P.L.178-2002, SEC.25; P.L.1-2003, SEC.24;
P.L.228-2005, SEC.20; P.L.182-2009(ss), SEC.120.
IC 6-1.1-17-14
County auditor must appeal to the department of local government
finance if the township assistance rate is reduced below the
necessary rate
Sec. 14. The county auditor shall initiate an appeal to the
department of local government finance if the county fiscal body or
the county board of tax adjustment reduces a township assistance tax
rate below the rate necessary to meet the estimated cost of township
assistance.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.90-2002,
SEC.154; P.L.73-2005, SEC.3; P.L.234-2005, SEC.4; P.L.224-2007,
SEC.15; P.L.146-2008, SEC.158; P.L.182-2009(ss), SEC.121.
IC 6-1.1-17-15
Appeal by political subdivision to department of local government
finance for increase in modified rate or levy; approval of appeal
required by local legislative body
Sec. 15. A political subdivision may appeal to the department of
local government finance for an increase in its tax rate or tax levy as
modified by the county board of tax adjustment or the county
auditor. To initiate the appeal, the political subdivision must file a
statement with the department of local government finance not later
than ten (10) days after publication of the notice required by section
12 of this chapter. The legislative body of the political subdivision
must authorize the filing of the statement by adopting a resolution.
The resolution must be attached to the statement of objections, and
the statement must be signed by the following officers:
(1) In the case of counties, by the board of county
commissioners and by the president of the county council.
(2) In the case of all other political subdivisions, by the highest
executive officer and by the presiding officer of the legislative
body.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.41-1993,
SEC.18; P.L.90-2002, SEC.155; P.L.224-2007, SEC.16;
P.L.146-2008, SEC.159; P.L.182-2009(ss), SEC.122.
IC 6-1.1-17-16
Limitations and requirements for department of local government
finance revision, reduction, or increase of a political subdivision's
budget by fund, rate, or levy; limitations on levy for lease
payments; judicial review of department action
Sec. 16. (a) Subject to the limitations and requirements prescribed
in this section, the department of local government finance may
revise, reduce, or increase a political subdivision's budget by fund,
tax rate, or tax levy which the department reviews under section 8 or
10 of this chapter.
(b) Subject to the limitations and requirements prescribed in this
section, the department of local government finance may review,
revise, reduce, or increase the budget by fund, tax rate, or tax levy of
any of the political subdivisions whose tax rates compose the
aggregate tax rate within a political subdivision whose budget, tax
rate, or tax levy is the subject of an appeal initiated under this
chapter.
(c) Except as provided in subsections (j) and (k), before the
department of local government finance reviews, revises, reduces, or
increases a political subdivision's budget by fund, tax rate, or tax levy
under this section, the department must hold a public hearing on the
budget, tax rate, and tax levy. The department of local government
finance shall hold the hearing in the county in which the political
subdivision is located. The department of local government finance
may consider the budgets by fund, tax rates, and tax levies of several
political subdivisions at the same public hearing. At least five (5)
days before the date fixed for a public hearing, the department of
local government finance shall give notice of the time and place of
the hearing and of the budgets by fund, levies, and tax rates to be
considered at the hearing. The department of local government
finance shall publish the notice in two (2) newspapers of general
circulation published in the county. However, if only one (1)
newspaper of general circulation is published in the county, the
department of local government finance shall publish the notice in
that newspaper.
(d) Except as provided in subsection (i), IC 20-46, or
IC 6-1.1-18.5, the department of local government finance may not
increase a political subdivision's budget by fund, tax rate, or tax levy
to an amount which exceeds the amount originally fixed by the
political subdivision. However, if the department of local
government finance determines that IC 5-3-1-2.3(b) applies to the tax
rate, tax levy, or budget of the political subdivision, the maximum
amount by which the department may increase the tax rate, tax levy,
or budget is the amount originally fixed by the political subdivision,
and not the amount that was incorrectly published or omitted in the
notice described in IC 5-3-1-2.3(b). The department of local
government finance shall give the political subdivision written
notification specifying any revision, reduction, or increase the
department proposes in a political subdivision's tax levy or tax rate.
The political subdivision has ten (10) calendar days from the date the
political subdivision receives the notice to provide a written response
to the department of local government finance's Indianapolis office.
The response may include budget reductions, reallocation of levies,
a revision in the amount of miscellaneous revenues, and further
review of any other item about which, in the view of the political
subdivision, the department is in error. The department of local
government finance shall consider the adjustments as specified in the
political subdivision's response if the response is provided as
required by this subsection and shall deliver a final decision to the
political subdivision.
(e) The department of local government finance may not approve
a levy for lease payments by a city, town, county, library, or school
corporation if the lease payments are payable to a building
corporation for use by the building corporation for debt service on
bonds and if:
(1) no bonds of the building corporation are outstanding; or
(2) the building corporation has enough legally available funds
on hand to redeem all outstanding bonds payable from the
particular lease rental levy requested.
(f) The department of local government finance shall certify its
action to:
(1) the county auditor;
(2) the political subdivision if the department acts pursuant to
an appeal initiated by the political subdivision;
(3) the taxpayer that initiated an appeal under section 13 of this
chapter, or, if the appeal was initiated by multiple taxpayers, the
first ten (10) taxpayers whose names appear on the statement
filed to initiate the appeal; and
(4) a taxpayer that owns property that represents at least ten
percent (10%) of the taxable assessed valuation in the political
subdivision.
(g) The following may petition for judicial review of the final
determination of the department of local government finance under
subsection (f):
(1) If the department acts under an appeal initiated by a political
subdivision, the political subdivision.
(2) If the department:
(A) acts under an appeal initiated by one (1) or more
taxpayers under section 13 of this chapter; or
(B) fails to act on the appeal before the department certifies
its action under subsection (f);
a taxpayer who signed the statement filed to initiate the appeal.
(3) If the department acts under an appeal initiated by the
county auditor under section 14 of this chapter, the county
auditor.
(4) A taxpayer that owns property that represents at least ten
percent (10%) of the taxable assessed valuation in the political
subdivision.
The petition must be filed in the tax court not more than forty-five
(45) days after the department certifies its action under subsection
(f).
(h) The department of local government finance is expressly
directed to complete the duties assigned to it under this section not
later than February 15th of each year for taxes to be collected during
that year.
(i) Subject to the provisions of all applicable statutes, the
department of local government finance may increase a political
subdivision's tax levy to an amount that exceeds the amount
originally fixed by the political subdivision if the increase is:
(1) requested in writing by the officers of the political
subdivision;
(2) either:
(A) based on information first obtained by the political
subdivision after the public hearing under section 3 of this
chapter; or
(B) results from an inadvertent mathematical error made in
determining the levy; and
(3) published by the political subdivision according to a notice
provided by the department.
(j) The department of local government finance shall annually
review the budget by fund of each school corporation not later than
April 1. The department of local government finance shall give the
school corporation written notification specifying any revision,
reduction, or increase the department proposes in the school
corporation's budget by fund. A public hearing is not required in
connection with this review of the budget.
(k) The department of local government finance may hold a
hearing under subsection (c) only if the notice required in section 12
of this chapter is published at least ten (10) days before the date of
the hearing.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.73-1983,
SEC.7; P.L.35-1990, SEC.7; P.L.35-1994, SEC.2; P.L.85-1995,
SEC.3; P.L.86-1995, SEC.5; P.L.49-1996, SEC.4; P.L.50-1996,
SEC.9; P.L.90-2002, SEC.156; P.L.256-2003, SEC.15;
P.L.228-2005, SEC.21; P.L.2-2006, SEC.38; P.L.154-2006, SEC.44;
P.L.169-2006, SEC.9; P.L.1-2007, SEC.42; P.L.146-2008, SEC.160;
P.L.182-2009(ss), SEC.123.
IC 6-1.1-17-16.5
Cumulative building or sinking fund proposal; action by
department of local government finance
Sec. 16.5. This section applies in each case in which the
department of local government finance has the power to approve or
disapprove the tax levy for a cumulative building or sinking fund
proposed to be established by a political subdivision. The department
may:
(1) approve the tax levy;
(2) disapprove the tax levy; or
(3) modify the tax levy by approving it at any amount less than
the tax levy proposed to be established.
As added by Acts 1981, P.L.11, SEC.23. Amended by P.L.90-2002,
SEC.157.
IC 6-1.1-17-16.7
Proposals to establish cumulative funds or sinking funds;
submission to department of local government finance
Sec. 16.7. (a) A political subdivision that in any year adopts a
proposal to establish a cumulative fund or sinking fund under any of
the following provisions must submit the proposal to the department
of local government finance before August 2 of that year:
IC 3-11-6
IC 8-10-5
IC 8-16-3
IC 8-16-3.1
IC 8-22-3
IC 14-27-6
IC 14-33-21
IC 16-22-5
IC 16-22-8
IC 36-8-14
IC 36-9-4
IC 36-9-14
IC 36-9-14.5
IC 36-9-15
IC 36-9-15.5
IC 36-9-16
IC 36-9-17
IC 36-9-26
IC 36-9-27
IC 36-10-3
IC 36-10-4
IC 36-10-7.5
(b) If a proposal described in subsection (a) is not submitted to the
department of local government finance before August 2 of a year,
the political subdivision may not levy a tax for the cumulative fund
or sinking fund in the ensuing year.
As added by P.L.41-1993, SEC.17. Amended by P.L.2-1995, SEC.23;
P.L.1-1995, SEC.45; P.L.90-2002, SEC.158.
IC 6-1.1-17-17
Increase in tax rate and levy by department of local government
finance
Sec. 17. Subject to the limitations contained in IC 6-1.1-18.5 and
IC 20-46, the department of local government finance may at any
time increase the tax rate and tax levy of a political subdivision for
the following reasons:
(1) To pay the principal or interest upon a funding, refunding,
or judgment funding obligation of a political subdivision.
(2) To pay the interest or principal upon an outstanding
obligation of the political subdivision.
(3) To pay a judgment rendered against the political
subdivision.
(4) To pay lease rentals that have become an obligation of the
political subdivision under IC 20-47-2 or IC 20-47-3.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.73-1983,
SEC.8; P.L.90-2002, SEC.159; P.L.2-2006, SEC.39; P.L.146-2008,
SEC.161.
IC 6-1.1-17-18
Repealed
(Repealed by P.L.273-1999, SEC.66.)
IC 6-1.1-17-19
Conflicting provisions
Sec. 19. If there is a conflict between the provisions of this
chapter and the provisions of IC 6-1.1-18.5 or IC 20-46, the
provisions of IC 6-1.1-18.5 and IC 20-46 control with respect to the
adoption of, review of, and limitations on budgets, tax rates, and tax
levies.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.73-1983,
SEC.9; P.L.2-2006, SEC.40; P.L.146-2008, SEC.162.
IC 6-1.1-17-20
Circumstances under which a taxing unit's proposed budget and
levy must be reviewed by the city, town, or county fiscal body
Sec. 20. (a) This section applies to each governing body of a
taxing unit that:
(1) is not comprised of a majority of officials who are elected
to serve on the governing body; and
(2) either:
(A) is:
(i) a conservancy district subject to IC 14-33-9;
(ii) a solid waste management district subject to IC 13-21;
or
(iii) a fire protection district subject to IC 36-8-11-18; or
(B) has a percentage increase in the proposed budget for the
taxing unit for the ensuing calendar year that is more than
the result of:
(i) the assessed value growth quotient determined under
IC 6-1.1-18.5-2 for the ensuing calendar year; minus
(ii) one (1).
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:
(1) a school corporation; or
(2) 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 the taxing unit was
originally established by the city or town;
the governing body shall submit its proposed budget and property tax
levy to the city or town fiscal body. The proposed budget and levy
shall be submitted at least thirty (30) days before the city or town
fiscal body is required to hold budget approval hearings under this
chapter. 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 at least thirty (30) days before the county fiscal body is
required to hold budget approval hearings under this chapter.
(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.
As added by P.L.25-1995, SEC.26. Amended by P.L.1-2004, SEC.19
and P.L.23-2004, SEC.20; P.L.199-2005, SEC.13; P.L.227-2005,
SEC.5; P.L.1-2006, SEC.136; P.L.146-2008, SEC.163;
P.L.182-2009(ss), SEC.124; P.L.113-2010, SEC.29.
IC 6-1.1-17-20.5
Circumstances under which a taxing unit's proposed bonds or lease
must be reviewed by the city, town, or county fiscal body
Sec. 20.5. (a) This section applies to the governing body of a
taxing unit unless a majority of the governing body is comprised 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:
(1) a school corporation; or
(2) 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 valua