CHAPTER 21.8. RAINY DAY FUND LOANS TO QUALIFIED TAXING UNITS
IC 6-1.1-21.8
Chapter 21.8. Rainy Day Fund Loans to Qualified Taxing Units
IC 6-1.1-21.8-1
"Board" defined
Sec. 1. As used in this chapter, "board" refers to the state board of
finance.
As added by P.L.157-2002, SEC.1.
IC 6-1.1-21.8-2
"Qualified taxing unit" defined
Sec. 2. As used in this chapter, "qualified taxing unit" means a
taxing unit located in a county having a population of more than one
hundred forty-five thousand (145,000) but less than one hundred
forty-eight thousand (148,000).
As added by P.L.157-2002, SEC.1.
IC 6-1.1-21.8-3
Loan application; prerequisites to grant of loan
Sec. 3. A qualified taxing unit may apply to the board for one (1)
or more loans from the counter-cyclical revenue and economic
stabilization fund. The board may make a loan from the fund to the
qualified taxing unit if:
(1) a taxpayer with tangible property subject to taxation by the
qualified taxing unit has filed a petition to reorganize under the
federal bankruptcy code;
(2) the taxpayer has defaulted on one (1) or more of its property
tax payments;
(3) the qualified taxing unit has experienced and will continue
to experience a significant revenue shortfall as a result of the
default; and
(4) the taxpayer is a steel manufacturer.
As added by P.L.157-2002, SEC.1.
IC 6-1.1-21.8-4
Loan terms; repayment schedule
Sec. 4. (a) The board shall determine the terms of a loan made
under this chapter. However, the interest charged on the loan may not
exceed the percent of increase in the United States Department of
Labor Consumer Price Index for Urban Wage Earners and Clerical
Workers during the most recent twelve (12) month period for which
data is available as of the date that the unit applies for a loan under
this chapter. In the case of a qualified taxing unit that is not a school
corporation or a public library (as defined in IC 36-12-1-5), a loan
must be repaid not later than ten (10) years after the date on which
the loan was made. In the case of a qualified taxing unit that is a
school corporation or a public library (as defined in IC 36-12-1-5),
a loan must be repaid not later than eleven (11) years after the date
on which the loan was made. A school corporation or a public library
(as defined in IC 36-12-1-5) is not required to begin making
payments to repay a loan until after June 30, 2004. The total amount
of all the loans made under this chapter may not exceed twenty-eight
million dollars ($28,000,000). The board may disburse the proceeds
of a loan in installments. However, not more than one-third (1/3) of
the total amount to be loaned under this chapter may be disbursed at
any particular time without the review of the budget committee and
the approval of the budget agency.
(b) A loan made under this chapter shall be repaid only from:
(1) property tax revenues of the qualified taxing unit that are
subject to the levy limitations imposed by IC 6-1.1-18.5;
(2) in the case of a school corporation, the school corporation's
debt service fund; or
(3) any other source of revenues (other than property taxes) that
is legally available to the qualified taxing unit.
The payment of any installment of principal constitutes a first charge
against the property tax revenues described in subdivision (1) that are
collected by the qualified taxing unit during the calendar year the
installment is due and payable.
(c) The obligation to repay a loan made under this chapter is not
a basis for the qualified taxing unit to obtain an excessive tax levy
under IC 6-1.1-18.5.
(d) Whenever the board receives a payment on a loan made under
this chapter, the board shall deposit the amount paid in the
counter-cyclical revenue and economic stabilization fund.
(e) This section does not prohibit a qualified taxing unit from
repaying a loan made under this chapter before the date specified in
subsection (a) if a taxpayer described in section 3 of this chapter
resumes paying property taxes to the qualified taxing unit.
(f) Interest accrues on a loan made under this chapter until the
date the board receives notice from the county auditor that the county
has adopted at least one (1) of the following:
(1) The county adjusted gross income tax under IC 6-3.5-1.1.
(2) The county option income tax under IC 6-3.5-6.
(3) The county economic development income tax under
IC 6-3.5-7.
Notwithstanding subsection (a), interest may not be charged on a
loan made under this chapter if a tax described in this subsection is
adopted before a qualified taxing unit applies for the loan.
As added by P.L.157-2002, SEC.1. Amended by P.L.267-2003,
SEC.2; P.L.1-2005, SEC.93; P.L.228-2005, SEC.23 and
P.L.246-2005, SEC.66; P.L.2-2006, SEC.62; P.L.146-2008,
SEC.244.
IC 6-1.1-21.8-5
Maximum loan amount for a particular qualified taxing unit
Sec. 5. The maximum amount that the board may loan to a
qualified taxing unit is determined under STEP FOUR of the
following formula:
STEP ONE: Determine the amount of the taxpayer's property
taxes due and payable in November 2001 that are attributable
to the qualified taxing unit as determined by the department of
local government finance.
STEP TWO: Multiply the STEP ONE amount by one and
thirty-one thousandths (1.031).
STEP THREE: Multiply the STEP TWO product by two (2).
STEP FOUR: Add the STEP ONE amount to the STEP THREE
product.
However, in the case of a qualified taxing unit that is a school
corporation, the amount determined under STEP FOUR shall be
reduced by the board to the extent that the school corporation
receives relief in the form of adjustments to the school corporation's
assessed valuation under IC 6-1.1-17-0.5 or IC 6-1.1-19-5.3.
As added by P.L.157-2002, SEC.1. Amended by P.L.2-2006, SEC.63;
P.L.146-2008, SEC.245.
IC 6-1.1-21.8-6
"Delinquent tax" defined; loan proceeds and delinquent tax
payments; calculation of levy excess; expenditure of loan receipts
Sec. 6. (a) As used in this section, "delinquent tax" means any tax:
(1) owed by a taxpayer in a bankruptcy proceeding initially
filed in 2001; and
(2) not paid during the calendar year in which it was first due
and payable.
(b) Except as provided in subsection (d), the proceeds of a loan
received by the qualified taxing unit under this chapter are not
considered to be part of the ad valorem property tax levy actually
collected by the qualified taxing unit for taxes first due and payable
during a particular calendar year for the purpose of calculating the
levy excess under IC 6-1.1-18.5-17 and IC 20-44-3. The receipt by
a qualified taxing unit of any payment of delinquent tax owed by a
taxpayer in bankruptcy is considered to be part of the ad valorem
property tax levy actually collected by the qualified taxing unit for
taxes first due and payable during a particular calendar year for the
purpose of calculating the levy excess under IC 6-1.1-18.5-17 and
IC 20-44-3.
(c) The proceeds of a loan made under this chapter must first be
used to retire any outstanding loans made by the department of
commerce (including any loans made by the department of commerce
that are transferred to the Indiana economic development
corporation) to cover a qualified taxing unit's revenue shortfall
resulting from the taxpayer's default on property tax payments. Any
remaining proceeds of a loan made under this chapter and any
payment of delinquent taxes by the taxpayer may be expended by the
qualified taxing unit only to pay obligations of the qualified taxing
unit that have been incurred under appropriations for operating
expenses made by the qualified taxing unit and approved by the
department of local government finance.
(d) If the sum of the receipts of a qualified taxing unit that are
attributable to:
(1) the loan proceeds; and
(2) the payment of property taxes owed by a taxpayer in a
bankruptcy proceeding and payable in November 2001, May
2002, or November 2002;
exceeds the sum of the taxpayer's property tax liability attributable
to the qualified taxing unit for property taxes payable in November
2001, May 2002, and November 2002, the excess as received during
any calendar year or years shall be set aside and treated for the
calendar year when received as a levy excess subject to
IC 6-1.1-18.5-17 or IC 20-44-3. In calculating the payment of
property taxes as referred to in subdivision (2), the amount of
property tax credit finally allowed under IC 6-1.1-21-5 (before its
repeal) in respect to those taxes is considered to be a payment of
those property taxes.
As added by P.L.157-2002, SEC.1. Amended by P.L.4-2005, SEC.42;
P.L.2-2006, SEC.64; P.L.146-2008, SEC.246.