Introduced Version




Citations Affected: IC 6-1.1-21-2.5.

Synopsis: Restriction on school levy. Prohibits a school corporation from levying taxes to offset a reduction in revenue resulting from a statutory amendment reducing the amount of state property tax replacement payable to the school corporation.

Effective: January 1, 2003 (retroactive).


    January 7, 2003, read first time and referred to Committee on Finance.


First Regular Session 113th General Assembly (2003)

PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2002 Regular or Special Session of the General Assembly.


    A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

Be it enacted by the General Assembly of the State of Indiana:

    SECTION 1. IC 6-1.1-21-2.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003 (RETROACTIVE)]: Sec. 2.5. (a) This section applies if, for taxes first due and payable after December 31, 2002:
        (1) section 2(j) and 2(l) of this chapter is amended; or
        (2) any other amendment is enacted;
to reduce below sixty percent (60%) the amount of property tax replacement payable by the state under this chapter with respect to a
school corporation for its general fund for a stated assessment year.
    (b) A school corporation may not:
        (1) for a stated assessment year under subsection (a); or
        (2) for a later assessment year;
levy and collect from taxpayers the amount of taxes that would have been replaced by a state property tax replacement distribution under this chapter if the percentage had not been

reduced as described in subsection (a).
    SECTION 2. An emergency is declared for this act.