Introduced Version






HOUSE BILL No. 1145

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DIGEST OF INTRODUCED BILL



Citations Affected: IC 6-1.1-17.

Synopsis: Approval of tax rates in Marion County. Requires a taxing unit (other than an excluded city or a township) in Marion County that proposes to increase its property tax rate to receive the approval of the city-county council and the mayor of the consolidated city. Prohibits the department of local government finance from approving a greater rate increase unless the department finds a need based on the health, safety, or well-being of the citizens of the county.

Effective: July 1, 2004.





Murphy, Noe




    January 13, 2004, read first time and referred to Committee on Ways and Means.







Introduced

Second Regular Session 113th General Assembly (2004)


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 2003 Regular Session of the General Assembly.

HOUSE BILL No. 1145



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

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

SOURCE: IC 6-1.1-17-16; (04)IN1145.1.1. -->     SECTION 1. IC 6-1.1-17-16, AS AMENDED BY P.L.256-2003, SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 16. (a) Subject to the limitations and requirements prescribed in this section and except as provided in section 21(e) of this chapter, the department of local government finance may revise, reduce, or increase a political subdivision's budget, 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 and except as provided in section 21(e) of this chapter, the department of local government finance may review, revise, reduce, or increase the budget, 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 subsection (j), before the department of local government finance reviews, revises, reduces, or increases a political subdivision's budget, 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, 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, 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 6-1.1-19, or IC 6-1.1-18.5, the department of local government finance may not increase a political subdivision's budget, tax rate, or tax levy to an amount which exceeds the amount originally fixed by the political subdivision. 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 one (1) week from the date the political subdivision receives the notice to provide a written response to the department of local government finance's Indianapolis office specifying how to make the required reductions in the amount budgeted for each office or department. The department of local government finance shall make reductions as specified in the political subdivision's response if the response is provided as required by this subsection and sufficiently specifies all necessary reductions. The department of local government finance may make a revision, a reduction, or an increase in a political subdivision's budget only in the total amounts budgeted for each office or department within each of the major budget classifications prescribed by the state board of accounts.
    (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; and
        (2) the political subdivision if the department acts pursuant to an appeal initiated by 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 acts under an appeal initiated by taxpayers under section 13 of this chapter, a taxpayer who signed the petition under that section.
        (3) If the department acts under an appeal initiated by the county auditor under section 14 of this chapter, the county auditor.
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 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. A public hearing is not required in connection with this review of the budget.
SOURCE: IC 6-1.1-17-20; (04)IN1145.1.2. -->     SECTION 2. IC 6-1.1-17-20 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 20. (a) Except as provided in subsection (b), this section applies:
        (1) to each governing body of a taxing unit that is not comprised of a majority of officials who are elected to serve on the governing body; and
        (2) if the proposed property tax levy for the taxing unit for the ensuing calendar year is more than five percent (5%) greater than the property tax levy for the taxing unit for the current calendar year.
    (b) This section does not apply to a taxing unit (other than an excluded city described in IC 36-3-1-7) located in a county containing a consolidated city.
     (c) 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 a school corporation or a public library district.
    (c) (d) 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 fourteen (14) days before the city or town fiscal body is required to hold budget approval hearings meets under section 5(a) of this chapter.
    (d) (e) If subsection (c) (d) 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 fourteen (14) days before the county fiscal body is required to hold budget approval hearings meets under section 5(a) of this chapter.
    (e) (f) 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. However, the fiscal body may not reduce the proposed tax levy to an amount that is less than the maximum permissible levy under IC 6-1.1-18.5-3.
SOURCE: IC 6-1.1-17-21; (04)IN1145.1.3. -->     SECTION 3. IC 6-1.1-17-21 IS ADDED TO THE INDIANA CODE

AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 21. (a) This section applies to a taxing unit (other than an excluded city described in IC 36-3-1-7 or a township) located in a county containing a consolidated city.
    (b) For purposes of this section, an increase in a taxing unit's property tax rate is the amount by which the rate exceeds the taxing unit's rate for the immediately preceding year.
    (c) If a taxing unit proposes an increase in its property tax rate, the governing body of the
taxing unit must submit its proposed property tax levy and property tax rate to the city-county council at least fourteen (14) days before the city-county council meets under section 5(a) of this chapter.
    (d) The city-county council shall:
        (1) review each property tax levy and property tax rate submitted under subsection (c); and
        (2) either approve or deny an increase in the taxing unit's property tax rate.
    (e) If the city-county council approves an increase in the taxing unit's property tax rate, the city-county council shall notify the mayor of the consolidated city of the approval. The mayor shall:
        (1) review each property tax rate increase approval submitted under this section;
        (2) either approve or deny the increase; and
        (3) notify the department of local government finance of the mayor's action under this subsection.
    (f) The department of local government finance may approve an increase in a taxing unit's property tax rate in an amount that exceeds an increase approved by the mayor of the consolidated city under subsection (e) only if the department finds that the failure to increase the rate in that amount will adversely affect the health, safety, or well-being of the citizens of the county.

SOURCE: ; (04)IN1145.1.4. -->     SECTION 4. [EFFECTIVE JULY 1, 2004] IC 6-1.1-17-16 and IC 6-1.1-17-20, both as amended by this act, and IC 6-1.1-17-21, as added by this act, apply only to property taxes first due and payable after December 31, 2004.