Reprinted
March 24, 2009
ENGROSSED
SENATE BILL No. 388
_____
DIGEST OF SB 388
(Updated March 23, 2009 4:34 pm - DI 51)
Citations Affected: IC 6-1.1; IC 12-29; noncode.
Synopsis: Property tax levies for mental health services. Permits a
county that wants to impose a property tax levy for the first time after
2008 for a community mental health center or a community mental
retardation and other developmental disabilities center to submit a first
year budget for approval by the department of local government
finance. Provides that the first year levy for the approved budget is
outside the property tax levy limit. Increases the circuit breaker
property tax credit that applies to property taxes first due and payable
in 2009.
Effective: January 1, 2009 (retroactive); upon passage.
Broden, Skinner, Randolph
(HOUSE SPONSORS _ PELATH, BORROR)
January 8, 2009, read first time and referred to Committee on Appropriations.
February 19, 2009, amended, reported favorably _ Do Pass.
February 23, 2009, read second time, ordered engrossed. Engrossed.
February 24, 2009, read third time, passed. Yeas 49, nays 0.
HOUSE ACTION
March 5, 2009, read first time and referred to Committee on Rules and Legislative
Procedures.
March 16, 2009, reassigned to Committee on Ways and Means pursuant to Rule 127.
March 17, 2009, reported _ Do Pass.
March 23, 2009, read second time, amended, ordered engrossed.
Reprinted
March 24, 2009
First Regular Session 116th General Assembly (2009)
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,
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ENGROSSED
SENATE BILL No. 388
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 6-1.1-18.5-10; (09)ES0388.2.1. -->
SECTION 1. IC 6-1.1-18.5-10, AS AMENDED BY P.L.146-2008,
SECTION 174, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2009 (RETROACTIVE)]: Sec. 10.
(a)
Subject to subsection (d), The ad valorem property tax levy limits
imposed by section 3 of this chapter do not apply to ad valorem
property taxes imposed by a civil taxing unit to be used to fund:
(1) community mental health centers under:
(A) IC 12-29-2-1.2, for only those civil taxing units that
authorized financial assistance under IC 12-29-1 before 2002
for a community mental health center as long as the tax levy
under this section does not exceed the levy authorized in 2002;
(B) IC 12-29-2-2 through IC 12-29-2-5; and
(C) IC 12-29-2-13; or
(2) community mental retardation and other developmental
disabilities centers under IC 12-29-1-1;
to the extent that those property taxes are attributable to any increase
in the assessed value of the civil taxing unit's taxable property caused
by a general reassessment of real property that took effect after
February 28, 1979.
(b) Subject to subsection (d), For purposes of computing the ad
valorem property tax levy limits imposed on a civil taxing unit by
section 3 of this chapter, the civil taxing unit's ad valorem property tax
levy for a particular calendar year does not include that part of the levy
described in subsection (a).
(c) This subsection applies to property taxes first due and payable
after December 31, 2008. Notwithstanding subsections (a) and (b) or
any other law, any property taxes imposed by a civil taxing unit that are
exempted by this section from the ad valorem property tax levy limits
imposed by section 3 of this chapter may not increase annually by a
percentage greater than the result of:
(1) the assessed value growth quotient determined under section
2 of this chapter; minus
(2) one (1).
(d) The exemptions under subsections (a) and (b) from the ad
valorem property tax levy limits do not apply to a civil taxing unit that
did not fund a community mental health center or community mental
retardation and other developmental disabilities center in 2008.
(d) For a county that did not impose an ad valorem property tax
levy before January 1, 2009, for the county general fund to provide
financial assistance under IC 12-29-1 (community mental
retardation and other developmental disabilities center) or
IC 12-29-2 (community mental health center), the levy limits do not
apply to the part of the county's general fund that is used in the
first ensuing calendar year to provide financial assistance under
IC 12-29-1 or IC 12-29-2. The department of local government
finance shall review a county's proposed budget that is submitted
under IC 12-29-1-1 or IC 12-29-2-1.2 and make a final
determination of the county's financial assistance budget for the
first ensuing calendar year.
SOURCE: IC 6-1.1-20.6-7; (09)ES0388.2.2. -->
SECTION 2. IC 6-1.1-20.6-7, AS AMENDED BY P.L.146-2008,
SECTION 222, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2009 (RETROACTIVE)]: Sec. 7. (a) This
subsection expires January 1, 2009. In the case of a credit authorized
under section 6 of this chapter or provided by section 6.5(a) or 6.5(b)
of this chapter for property taxes first due and payable in a calendar
year:
(1) a person is entitled to a credit against the person's property tax
liability for property taxes first due and payable in that calendar
year attributable to:
(A) the person's qualified residential property located in the
county, in the case of a calendar year before 2008; or
(B) the person's homestead. (as defined in IC 6-1.1-20.9-1)
property located in the county, in the case of a calendar year
after 2007 and before 2009; and
(2) the amount of the credit is the amount by which the person's
property tax liability attributable to:
(A) the person's qualified residential property, in the case of a
calendar year before 2008; or
(B) the person's homestead property, in the case of a calendar
year after 2007 and before 2009;
for property taxes first due and payable in that calendar year exceeds
two percent (2%) of the gross assessed value that is the basis for
determination of property taxes on the qualified residential property (in
the case of a calendar year before 2008) or the person's homestead
property (in the case of a calendar year after 2007 and before 2009) for
property taxes first due and payable in that calendar year, as adjusted
under subsection (b).
(b) This subsection expires January 1, 2009. This subsection applies
to property taxes first due and payable in 2008. The amount of a credit
to which a person is entitled under subsection (a) in a county shall be
determined without including a taxpayer's property tax liability for
tuition support. Notwithstanding any other provision of this chapter, a
school corporation's tuition support property tax levy collections may
not be reduced because of a credit under this chapter.
(c) This subsection applies to property taxes first due and payable
in expires January 1, 2009. A person is entitled to a credit against the
person's property tax liability for property taxes first due and payable
in 2009. The amount of the credit is the amount by which the person's
property tax liability attributable to the person's:
(1) homestead exceeds one and five-tenths percent (1.5%);
(2) residential property exceeds two and five-tenths percent
(2.5%);
(3) long term care property exceeds two and five-tenths percent
(2.5%);
(4) agricultural land exceeds two and five-tenths percent (2.5%);
(5) nonresidential real property exceeds three and five-tenths
percent (3.5%); or
(6) personal property exceeds three and five-tenths percent
(3.5%);
of the gross assessed value of the property that is the basis for
determination of property taxes for that calendar year.
(d) This subsection applies to property taxes first due and payable
in expires January 1, 2009. Property taxes imposed after being
approved by the voters in a referendum or local public question shall
not be considered for purposes of calculating a person's credit under
this section.
(e) This subsection applies to property taxes first due and payable
in expires January 1, 2009. As used in this subsection, "eligible
county" means only a county for which the general assembly
determines in 2008 that limits to property tax liability under this
chapter are expected to reduce in 2010 the aggregate property tax
revenue that would otherwise be collected by all units of local
government and school corporations in the county by at least twenty
percent (20%). Property taxes imposed in an eligible county to pay debt
service or make lease payments for bonds or leases issued or entered
into before July 1, 2008, shall not be considered for purposes of
calculating a person's credit under this section.
SOURCE: IC 6-1.1-20.6-7.5; (09)ES0388.2.3. -->
SECTION 3. IC 6-1.1-20.6-7.5, AS ADDED BY P.L.146-2008,
SECTION 223, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2009 (RETROACTIVE)]: Sec. 7.5.(a) A
person is entitled to a credit against the person's property tax liability
for property taxes first due and payable after
2009. 2008. The amount
of the credit is the amount by which the person's property tax liability
attributable to the person's:
(1) homestead exceeds one percent (1%);
(2) residential property exceeds two percent (2%);
(3) long term care property exceeds two percent (2%);
(4) agricultural land exceeds two percent (2%);
(5) nonresidential real property exceeds three percent (3%); or
(6) personal property exceeds three percent (3%);
of the gross assessed value of the property that is the basis for
determination of property taxes for that calendar year.
(b) This subsection applies to property taxes first due and payable
after
2009. 2008. Property taxes imposed after being approved by the
voters in a referendum or local public question shall not be considered
for purposes of calculating a person's credit under this section.
(c) This subsection applies to property taxes first due and payable
after
2009. 2008. As used in this subsection, "eligible county" means
only a county for which the general assembly determines in 2008 that
limits to property tax liability under this chapter are expected to reduce
in 2010 the aggregate property tax revenue that would otherwise be
collected by all units of local government and school corporations in
the county by at least twenty percent (20%). Property taxes imposed in
an eligible county to pay debt service or make lease payments for
bonds or leases issued or entered into before July 1, 2008, shall not be
considered for purposes of calculating a person's credit under this
section.
SOURCE: IC 12-29-1-1; (09)ES0388.2.4. -->
SECTION 4. IC 12-29-1-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2009 (RETROACTIVE)]:
Sec. 1. (a) The county executive of a county may authorize the
furnishing of financial assistance to a community mental retardation
and other developmental disabilities center that is located or will be
located in the county.
(b) Assistance authorized under this section shall be used for the
following purposes:
(1) Constructing a center.
(2) Operating a center.
(c) Upon request of the county executive, the county fiscal body
may appropriate annually from the county's general fund the money to
provide financial assistance for the purposes described in subsection
(b). The appropriation may not exceed the amount that could be
collected from an annual tax levy of not more than three and
thirty-three hundredths cents ($0.0333) on each one hundred dollars
($100) of taxable property within the county.
(d) If a county did not provide financial assistance under this
chapter before January 1, 2009, the county may propose a financial
assistance budget for an ensuing calendar year. The county shall
refer its proposed budget for the first calendar year to the
department of local government finance before the tax levy is
advertised. The budget for the first calendar year is subject to
review and approval under IC 6-1.1-18.5-10.
SOURCE: IC 12-29-2-1.2; (09)ES0388.2.5. -->
SECTION 5. IC 12-29-2-1.2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2009 (RETROACTIVE)]:
Sec. 1.2. (a) The county executive of a county may authorize the
furnishing of financial assistance for the purposes described in
subsection (b) to a community mental health center that is located or
will be located:
(1) in the county;
(2) anywhere in Indiana, if the community mental health center is
organized to provide services to at least two (2) counties,
including the county executive's county; or
(3) in an adjacent state, if the center is organized to provide
services to Indiana residents, including residents in the county
executive's county.
If a community mental health center is organized to serve more than
one (1) county, upon request of the county executive, each county fiscal
body may appropriate money annually from the county's general fund
to provide financial assistance for the community mental health center.
(b) Assistance authorized under this section shall be used for the
following purposes:
(1) Constructing a community mental health center.
(2) Operating a community mental health center.
(c) The appropriation from a county authorized under subsection (a)
may not exceed the following:
(1) For 2004, the product of the amount determined under section
2(b)(1) of this chapter multiplied by one and five hundred four
thousandths (1.504).
(2) for 2005 and each year thereafter, the product of the amount
determined under section 2(b)(2) of this chapter for that year
multiplied by one and five hundred four thousandths (1.504).
(d) If a county did not provide financial assistance under this
chapter before January 1, 2009, the county may propose a financial
assistance budget for an ensuing calendar year. The county shall
refer its proposed budget for the first calendar year to the
department of local government finance before the tax levy is
advertised. The budget for the first calendar year is subject to
review and approval under IC 6-1.1-18.5-10.
SOURCE: ; (09)ES0388.2.6. -->
SECTION 6. [EFFECTIVE UPON PASSAGE] The department of
local government finance may adopt temporary rules under this
SECTION in the manner provided under IC 4-22-2-37.1 for the
adoption of emergency rules to implement IC 6-1.1-20.6-7 and
IC 6-1.1-20.6-7.5, both as amended by this act. The rules may
include authority for a county auditor to reconcile any difference
in the tax liability imposed on property in a year that results from
the amendments made to IC 6-1.1-20.6-7 and IC 6-1.1-20.6-7.5 by
this act on a separate billing for an installment under IC 6-1.1-7-7
or 6-1.1-22-9 or a reconciling statement under IC 6-1.1-22.5-12.
Notwithstanding IC 4-22-2-37.1, a temporary rule adopted under
this SECTION expires on the earliest of the following dates:
(1) The date specified in the temporary rule.
(2) The date on which another temporary rule adopted under
this SECTION or a permanent rule adopted under IC 4-22-2
supersedes or repeals the earlier adopted temporary rule.
(3) December 1, 2010.
SOURCE: ; (09)ES0388.2.7. -->
SECTION 7.
An emergency is declared for this act.