Citations Affected: IC 6-1.1; noncode.
Synopsis: Fire protection borrowing levy appeals. Permits a township
approved for an excessive property tax levy based on borrowing for fire
protection to phase in the approved increase over a period not to exceed
three years. Revises population parameters to make them consistent
with the 2000 decennial census.
Effective: July 1, 2002.
January 8, 2002, read first time and referred to Committee on Governmental and
Regulatory Affairs.
January 24, 2002, reported favorably _ Do Pass.
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
SECTION 1.
IC 6-1.1-18.5-13
, AS AMENDED BY P.L.181-2001,
SECTION 1, AND AS AMENDED BY P.L.198-2001, SECTION 55,
IS AMENDED AND CORRECTED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2002]: Sec. 13. With respect to an appeal filed
under section 12 of this chapter, the local government tax control board
may recommend that a civil taxing unit receive any one (1) or more of
the following types of relief:
(1) Permission to the civil taxing unit to reallocate the amount set
aside as a property tax replacement credit as required by
IC 6-3.5-1.1
for a purpose other than property tax relief. However,
whenever this occurs, the local government tax control board
shall also state the amount to be reallocated.
(2) Permission to the civil taxing unit to increase its levy in excess
of the limitations established under section 3 of this chapter, if in
the judgment of the local government tax control board the
increase is reasonably necessary due to increased costs of the civil
taxing unit resulting from annexation, consolidation, or other
extensions of governmental services by the civil taxing unit to
additional geographic areas or persons.
(3) Permission to the civil taxing unit 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 civil taxing unit
needs the increase to meet the civil taxing unit's share of the costs
of operating a court established by statute enacted after December
31, 1973. Before recommending such an increase, the local
government tax control board shall consider all other revenues
available to the civil taxing unit that could be applied for that
purpose. The maximum aggregate levy increases that the local
government tax control board may recommend for a particular
court equals the civil taxing unit's share of the costs of operating
a court for the first full calendar year in which it is in existence.
(4) Permission to the civil taxing unit to increase its levy in excess
of the limitations established under section 3 of this chapter, if the
civil taxing unit's average three (3) year growth factor, as
determined in section 2 2(a) (STEP THREE) of this chapter for
calendar years ending before January 1, 2006, or section 2(b)
(STEP THREE) of this chapter for calendar years beginning after
December 31, 2005, exceeds one and one-tenth (1.1). However,
any increase in the amount of the civil taxing unit's levy
recommended by the local government tax control board under
this subdivision may not exceed an amount equal to the remainder
of:
(A) the amount of ad valorem property taxes the civil taxing
unit could impose for the ensuing calendar year under section
3 of this chapter if at STEP TWO of subsection (a) or (b), as
the case may be, the amount determined in STEP THREE of
section 2 2(a) of this chapter for calendar years ending before
January 1, 2006, or in STEP THREE of section 2(b) of this
chapter for calendar years beginning after December 31,
2005, is substituted for the amount determined under STEP
FIVE of section 2 2(a) of this chapter for calendar years
ending before January 1, 2006, or under STEP FIVE of
section 2(b) of this chapter for calendar years beginning after
December 31, 2005; minus
(B) the amount of ad valorem property taxes the civil taxing
unit could impose under section 3 of this chapter for the
ensuing calendar year.
In addition, before the local government tax control board may
recommend the relief allowed under this subdivision, the civil
taxing unit must show a need for the increased levy because of
special circumstances, and the local government tax control board
must consider other sources of revenue and other means of relief.
(5) Permission to the civil taxing unit 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 civil taxing unit
needs the increase to pay the costs of furnishing fire protection for
the civil taxing unit through a volunteer fire department. For
purposes of determining a township's need for an increased levy,
the local government tax control board shall not consider the
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); one hundred
forty-eight thousand (148,000) but less than one hundred
seventy thousand (170,000);
or juvenile detention center, including expansion of the facility,
if the jail or juvenile detention center is opened after December
31, 1991. Before recommending an increase, the local
government tax control board shall consider all other revenues
available to the county that could be applied for that purpose. An
appeal for operating funds for a jail or juvenile detention center
shall be considered individually, if a jail and juvenile detention
center are both opened in one (1) county. The maximum
aggregate levy increases that the local government tax control
board may recommend for a county equals the county's share of
the costs of operating the jail or juvenile detention center for the
first full calendar year in which the jail or juvenile detention
center is in operation.
(11) 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 needs the
increase so that the property tax rate to pay the costs of furnishing
fire protection for a township, or a portion of a township, enables
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 three (3) 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 least of the amounts borrowed under
IC 36-6-6-14
during the preceding three (3) calendar years. A
township may elect to phase in an approved increase in its
levy under this subdivision over a period not to exceed three
(3) years. A particular township may appeal to increase its levy
under this section not more frequently than every fourth 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) twenty-nine thousand (29,000)
but less than thirty-one thousand (31,000) 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.
SECTION 2. [EFFECTIVE JULY 1, 2002] (a)
IC 6-1.1-18.5-13
, as
amended by this act, applies to property taxes first due and
payable after December 31, 2002.
(b) This SECTION expires January 1, 2004.