Citations Affected: IC 6-1.1.
Synopsis: Fire protection levy. Authorizes an excessive levy for
township fire protection for townships that have resorted to short term
borrowing in the previous two calendar years. Authorizes an excessive
levy for the City of Goshen. (The introduced version of this bill was
prepared by the local government finance study commission.)
Effective: July 1, 2001.
January 9, 2001, read first time and referred to Committee on Local Government.
February 12, 2001, reported _ Do Pass.
February 15, 2001, read second time, amended, ordered engrossed.
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
amount of money borrowed under IC 36-6-6-14 during the
immediately preceding calendar year. However, any increase in
the amount of the civil taxing unit's levy recommended by the
local government tax control board under this subdivision for the
ensuing calendar year may not exceed the lesser of:
(A) ten thousand dollars ($10,000); or
(B) twenty percent (20%) of:
(i) the amount authorized for operating expenses of a
volunteer fire department in the budget of the civil taxing
unit for the immediately preceding calendar year; plus
(ii) the amount of any additional appropriations authorized
during that calendar year for the civil taxing unit's use in
paying operating expenses of a volunteer fire department
under IC 6-1.1-18.5; this chapter; minus
(iii) the amount of money borrowed under IC 36-6-6-14
during that calendar year for the civil taxing unit's use in
paying operating expenses of a volunteer fire department.
(6) Permission to a civil taxing unit to increase its levy in excess
of the limitations established under section 3 of this chapter in
order to raise revenues for pension payments and contributions
the civil taxing unit is required to make under IC 36-8. The
maximum increase in a civil taxing unit's levy that may be
recommended under this subdivision for an ensuing calendar year
equals the amount, if any, by which the pension payments and
contributions the civil taxing unit is required to make under
IC 36-8 during the ensuing calendar year exceeds the product of
one and one-tenth (1.1) multiplied by the pension payments and
contributions made by the civil taxing unit under IC 36-8 during
the calendar year that immediately precedes the ensuing calendar
year. For purposes of this subdivision, "pension payments and
contributions made by a civil taxing unit" does not include that
part of the payments or contributions that are funded by
distributions made to a civil taxing unit by the state.
(7) Permission to increase its levy in excess of the limitations
established under section 3 of this chapter if the local government
tax control board finds that:
(A) the township's poor relief ad valorem property tax rate is
less than one and sixty-seven hundredths cents ($0.0167) per
one hundred dollars ($100) of assessed valuation; and
(B) the township needs the increase to meet the costs of
providing poor relief under IC 12-20 and IC 12-30-4.
The maximum increase that the board may recommend for a
township is the levy that would result from an increase in the
township's poor relief ad valorem property tax rate of one and
sixty-seven hundredths cents ($0.0167) per one hundred dollars
($100) of assessed valuation minus the township's ad valorem
property tax rate per one hundred dollars ($100) of assessed
valuation before the increase.
(8) Permission to a civil taxing unit to increase its levy in excess
of the limitations established under section 3 of this chapter if:
(A) the increase has been approved by the legislative body of
the municipality with the largest population where the civil
taxing unit provides public transportation services; and
(B) the local government tax control board finds that the civil
taxing unit needs the increase to provide adequate public
transportation services.
The local government tax control board shall consider tax rates
and levies in civil taxing units of comparable population, and the
effect (if any) of a loss of federal or other funds to the civil taxing
unit that might have been used for public transportation purposes.
However, the increase that the board may recommend under this
subdivision for a civil taxing unit may not exceed the revenue that
would be raised by the civil taxing unit based on a property tax
rate of one cent ($0.01) per one hundred dollars ($100) of
assessed valuation.
(9) Permission to a civil taxing unit to increase the unit's levy in
excess of the limitations established under section 3 of this
chapter if the local government tax control board finds that:
(A) the civil taxing unit is:
(i) a county having a population of more than one hundred
twenty-nine thousand (129,000) but less than one hundred
thirty thousand six hundred (130,600);
(ii) a city having a population of more than forty-three
thousand seven hundred (43,700) but less than forty-four
thousand (44,000);
(iii) a city having a population of more than twenty-five
thousand five hundred (25,500) but less than twenty-six
thousand (26,000);
(iv) a city having a population of more than fifteen thousand
three hundred fifty (15,350) but less than fifteen thousand
five hundred seventy (15,570); or
(v) a city having a population of more than five thousand six
hundred fifty (5,650) but less than five thousand seven
hundred eight (5,708); and
the township to pay a fair and reasonable amount under a contract
with the municipality that is furnishing the fire protection.
However, for the first time an appeal is granted the resulting rate
increase may not exceed fifty percent (50%) of the difference
between the rate imposed for fire protection within the
municipality that is providing the fire protection to the township
and the township's rate. A township is required to appeal a second
time for an increase under this subdivision if the township wants
to further increase its rate. However, a township's rate may be
increased to equal but may not exceed the rate that is used by the
municipality. More than one (1) township served by the same
municipality may use this appeal.
(12) Permission for a township to increase its levy in excess of
the limitations established under section 3 of this chapter, if
the local government tax control board finds that the
township has been required, for the two (2) consecutive years
preceding the year for which the appeal under this
subdivision is to become effective, to borrow funds under
IC 36-6-6-14 to furnish fire protection for the township or a
part of the township. However, the maximum increase in a
township's levy that may be allowed under this subdivision is
the lesser of the amounts borrowed under IC 36-6-6-14 during
the preceding two (2) calendar years. A particular township
may appeal to increase its levy under this section not more
frequently than every third calendar year.
(13) Permission to a city having a population of more than
twenty-three thousand five hundred (23,500) but less than
twenty-four thousand (24,000) to increase its levy in excess of
the limitations established under section 3 of this chapter if:
(A) an appeal was granted to the city under subdivision (1)
in 1998, 1999, and 2000; and
(B) the increase has been approved by the legislative body
of the city, and the legislative body of the city has by
resolution determined that the increase is necessary to pay
normal operating expenses.
The maximum amount of the increase is equal to the amount
of property tax replacement credits under IC 6-3.5-1.1 that
the city petitioned to have reallocated in 2001 under
subdivision (1) for a purpose other than property tax relief.