Introduced Version
HOUSE BILL No. 1583
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-1.1-18.5-4.7; IC 36-1-7-3; IC 36-2-5-2.
Synopsis: County and municipal property taxes. Allows political
subdivisions to finance an interlocal agreement for provision of a
service by increasing the maximum levy of the political subdivision
that provides the service and decreasing the maximum levy of the
political subdivision to which the service is provided. Provides for the
same levy adjustments in the absence of an interlocal agreement upon
petition to the department of local government finance. Provides that
a county may not levy property taxes in a municipality for services the
municipality provides itself.
Effective: Upon passage.
Culver
January 16, 2009, read first time and referred to Committee on Ways and Means.
Introduced
First Regular Session 116th General Assembly (2009)
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HOUSE BILL No. 1583
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 6-1.1-18.5-4.7; (09)IN1583.1.1. -->
SECTION 1. IC 6-1.1-18.5-4.7 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 4.7. (a) If a civil taxing unit
provides a service to another civil taxing unit after 2009, the civil
taxing units may jointly petition the department of local
government finance for:
(1) an increase for the civil taxing unit providing the service;
and
(2) a decrease in the same amount for the civil taxing unit to
which the service is provided;
of the maximum permissible property tax levy under section 3 of
this chapter.
(b) If civil taxing units referred to in subsection (a) discontinue
their service agreement, the civil taxing units shall notify the
department of local government finance, and the department shall:
(1) decrease for the civil taxing unit that provided the service;
and
(2) increase in the same amount for the civil taxing unit to
which the service was provided;
the maximum permissible property tax levy under section 3 of this
chapter.
(c) The civil taxing units referred to in subsection (a) must:
(1) petition the department of local government finance under
subsection (a) not later than December 1 of a calendar year
for levy adjustments under subsection (a); and
(2) notify the department of local government finance under
subsection (b) not later than December 1 of a calendar year
for levy adjustments under subsection (b);
for property taxes first due and payable in the immediately
succeeding calendar year.
(d) Upon finding that the requirements of this section have been
met, the department of local government finance shall:
(1) determine the levy adjustment under subsection (a) or (b)
in an amount reasonably calculated to equal the annual
expense of providing the service; and
(2) make the levy adjustments referred to in subsection (a) or
(b).
SOURCE: IC 36-1-7-3; (09)IN1583.1.2. -->
SECTION 2. IC 36-1-7-3 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 3. (a) An agreement under this
section must provide for the following:
(1) Its duration.
(2) Its purpose.
(3) Subject to subsection (d), the manner of financing, staffing,
and supplying the joint undertaking and of establishing and
maintaining a budget therefor.
(4) The methods that may be employed in accomplishing the
partial or complete termination of the agreement and for disposing
of property upon partial or complete termination.
(5) Administration through:
(A) a separate legal entity, the nature, organization,
composition, and powers of which must be provided; or
(B) a joint board composed of representatives of the entities
that are parties to the agreement, and on which all parties to
the agreement must be represented.
(6) The manner of acquiring, holding, and disposing of real and
personal property used in the joint undertaking, whenever a joint
board is created under subdivision (5)(B).
In addition, such an agreement may provide for any other appropriate
matters.
(b) A separate legal entity or joint board established by an
agreement under this section has only the powers delegated to it by the
agreement. The agreement may not provide for members, directors, or
trustees of the separate legal entity or joint board to make appointments
(either individually or jointly) to fill vacancies on the separate legal
entity or joint board.
(c) Subsection (a)(6) does not apply to an emergency management
assistance compact under IC 10-14-5.
(d) An agreement under this section under which a political
subdivision provides a service to another political subdivision after
2009 may provide for financing the agreement by:
(1) an increase for the political subdivision providing the
service; and
(2) a decrease in the same amount for the political subdivision
to which the service is provided;
of the maximum permissible property tax levy under IC 6-1.1-18.5.
(e) If an agreement that provides for financing under subsection
(d) is terminated, the department of local government finance
shall:
(1) decrease for the political subdivision that provided the
service; and
(2) increase in the same amount for the political subdivision
to which the service was provided;
the maximum permissible property tax levy under IC 6-1.1-18.5.
(f) A political subdivision shall notify the department of local
government finance not later than December 1 of a calendar year
of:
(1) the political subdivision's entry into an agreement that
requires levy adjustments under subsection (d); or
(2) the political subdivision's termination of an agreement
that requires levy adjustments under subsection (e);
for property taxes first due and payable in the immediately
succeeding calendar year.
(g) The department of local government finance shall:
(1) determine the levy adjustment under subsection (d) or (e)
in an amount reasonably calculated to equal the annual
expense of providing the service; and
(2) make the levy adjustments referred to in subsection (d) or
(e).
SOURCE: IC 36-2-5-2; (09)IN1583.1.3. -->
SECTION 3. IC 36-2-5-2 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 2. (a) The county fiscal body
shall fix:
(1) the rate of taxation for county purposes; and
(2) the rate of taxation for other purposes whenever the rate is not
fixed by statute and is required to be uniform throughout the
county.
(b) The county fiscal body shall appropriate money to be paid out of
the county treasury, and money may be paid out of the treasury only
under an appropriation made by the fiscal body, except as otherwise
provided by law.
(c) If a municipality in the county instead of the county serves
in the municipality a purpose for which a rate of taxation is fixed
under subsection (a)(1) for property taxes first due and payable
after 2009, the tax levy for which the rate is fixed is on all taxable
real and personal property in the county outside the corporate
boundaries of:
(1) that municipality; and
(2) any other municipality in the county to which this
subsection applies.
(d) The department of local government finance:
(1) may adopt rules under IC 4-22-2 for; and
(2) shall ensure;
the proper application of subsection (c).
SOURCE: ; (09)IN1583.1.4. -->
SECTION 4. [EFFECTIVE UPON PASSAGE] (a) The department
of local government finance may adopt temporary rules in the
manner provided for the adoption of emergency rules under
IC 4-22-2-37.1 to implement IC 36-2-5-2(c), as added by this act. A
temporary rule adopted under this SECTION expires on the
earliest of the following:
(1) The date that the department of local government finance
adopts another temporary rule under this SECTION that
repeals, amends, or supersedes the previously adopted
temporary rule.
(2) The date that the department of local government finance
adopts a permanent rule under IC 4-22-2 that repeals,
amends, or supersedes the previously adopted temporary rule.
(3) The date specified in the temporary rule.
(4) July 1, 2011.
(b) This SECTION expires July 1, 2011.
SOURCE: ; (09)IN1583.1.5. -->
SECTION 5.
An emergency is declared for this act.