Citations Affected: IC 6-1.1-17-1; IC 6-1.1-46.
Synopsis: Property tax abatement. Provides a credit against municipal
property taxes to a taxpayer in a municipal taxing district in which the
assessed valuation subject to tax abatement is proportionally greater
than the average assessed valuation subject to tax abatement in other
taxing districts in the county. Imposes an equalization levy in the
county to replace the revenue lost as a result of the credit.
Effective: January 1, 2007.
January 9, 2006, read first time and referred to Committee on Ways and Means.
A BILL FOR AN ACT to amend the Indiana Code concerning
according to procedures established by the department of local
(5) the county auditor's determinations under IC 6-1.1-46-3; and
(5) (6) any other information at the disposal of the county auditor
that might affect the assessed value used in the budget adoption
(b) The estimate of taxes to be distributed shall be based on:
(1) the abstract of taxes levied and collectible for the current calendar year, less any taxes previously distributed for the calendar year; and
(2) any other information at the disposal of the county auditor which might affect the estimate.
(c) The fiscal officer of each political subdivision shall present the county auditor's statement to the proper officers of the political subdivision.
high abatement district in a designating unit is entitled to a credit
against the taxpayer's tax liability to the designating unit. The
amount of the credit for taxes first due and payable in a calendar
year is the remainder of:
(1) the amount of the taxpayer's tax liability; minus
(2) the amount of tax for the calendar year for which the taxpayer would be liable to the designating unit if the average abatement for the covered taxing district for the assessment date in the immediately preceding year applied in the determination of the net assessed valuation used to determine the designating unit's tax rate for the calendar year.
(b) The credit under this section does not apply to the taxpayers in a high abatement district in a county if none of the quotients determined under section 3(a) of this chapter for the covered taxing districts in the county differs from any other quotient determined for the covered taxing districts in the county by more than one percent (1%).
(c) The auditor of the county shall apply the credit under this section against the tax liability of each taxpayer that qualifies for the credit. A taxpayer is not required to apply for the credit.
Sec. 5. (a) Subject to subsection (b), the county fiscal body shall impose an equalization levy in addition to the property tax levy for the county determined under IC 6-1.1-17 if one (1) or more designating units in which a credit is applied under section 4 of this chapter is located in the county. The amount of the equalization levy for taxes first due and payable in a calendar year in which a credit is applied under section 4 of this chapter is the combined amount of those credits for taxes first due and payable in that calendar year in all designating units in the county.
(b) An additional property tax levy under this section does not apply to a county if none of the quotients determined under section 3(a) of this chapter for the covered taxing districts in the county differs from any other quotient determined for the covered taxing districts in the county by more than one percent (1%).
Sec. 6. (a) The property tax levy limits imposed by IC 6-1.1-18.5-3 do not apply to property taxes imposed under this chapter.
(b) For purposes of computing the property tax levy limits imposed on a county by IC 6-1.1-18.5-3, a property tax levy for a calendar year does not include the part of the county's levy that is levied under this chapter.
Sec. 7. The department of local government finance shall certify
the tax levies and tax rates required under section 5 of this chapter
in the same manner in which the department certifies levies and
rates under IC 6-1.1-17. To comply with this section, the
department of local government finance may certify a tax levy that
exceeds the amount originally fixed by the county.
Sec. 8. Tax proceeds received under this chapter are not considered a levy excess under IC 6-1.1-18.5-17.
Sec. 9. A covered taxing district tax abatement credit account is established in the general fund of each county. The county treasurer shall deposit the amount collected from a levy imposed under this chapter in the account.
Sec. 10. (a) The amount in a covered taxing district tax abatement credit account:
(1) may be used only to replace property tax revenues lost by designating units as the result of applying credits under section 4 of this chapter; and
(2) subject to subsection (b), shall be distributed to the designating units of the county:
(A) as though the money were property tax collections; and
(B) in such a manner that no designating unit suffers a net revenue loss as the result of the application of credits under section 4 of this chapter.
(b) If the money in the account referred to in subsection (a) is insufficient to replace all the revenue lost as described in subsection (a)(1), the amount distributed to each designating unit is reduced in proportion to the relative gross assessed valuation in each designating unit that is eligible to receive a distribution.
Sec. 11. The department of local government finance shall adopt rules under IC 4-22-2 to implement this chapter.