Introduced Version
HOUSE BILL No. 1401
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-1.1-17; IC 6-1.1-18-5.
Synopsis: Approval of public library budgets. Provides that a public
library in Lake County is not required to have its budget and tax levy
approved by a city or town council or by the county council, if the
public library's budget does not increase by a percentage greater than
the percentage that is used to increase the maximum property tax levies
of local taxing units in counties other than Lake County. Deletes a
reference to public libraries in a statute that no longer applies to public
libraries.
Effective: Upon passage.
Lawson L
January 22, 2013, read first time and referred to Committee on Government and Regulatory
Reform.
Introduced
First Regular Session 118th General Assembly (2013)
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HOUSE BILL No. 1401
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 6-1.1-17-20; (13)IN1401.1.1. -->
SECTION 1. IC 6-1.1-17-20, AS AMENDED BY P.L.137-2012,
SECTION 27, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 20. (a) This section applies 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. For purposes of this
section, an individual who qualifies to be appointed to a governing
body or serves on a governing body because of the individual's status
as an elected official of another taxing unit shall be treated as an
official who was not elected to serve on the governing body.
(b) 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 public library
or an entity whose tax levies are subject to review and modification by
a city-county legislative body under IC 36-3-6-9.
(c) 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 to the city or town fiscal body in the manner prescribed
by the department of local government finance before September 2 of
a year. However, in the case of a public library that is subject to this
section and is described in subdivision (2), the public library shall
submit its proposed budget and property tax levy to the county fiscal
body in the manner provided in subsection (d), rather than to the city
or town fiscal body, if more than fifty percent (50%) of the parcels of
real property within the jurisdiction of the public library are located
outside the city or town.
(d) If subsection (c) 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
to the county fiscal body in the manner prescribed by the department
of local government finance before September 2 of a year.
(e) 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.
(f) If a taxing unit fails to file the information required in subsection
(c) or (d), whichever applies, with the appropriate fiscal body by the
time prescribed by this section, the most recent annual appropriations
and annual tax levy of that taxing unit are continued for the ensuing
budget year.
(g) If the appropriate fiscal body fails to complete the requirements
of subsection (e) before the adoption deadline in section 5 of this
chapter for any taxing unit subject to this section, the most recent
annual appropriations and annual tax levy of the city, town, or county,
whichever applies, are continued for the ensuing budget year.
SOURCE: IC 6-1.1-17-20.3; (13)IN1401.1.2. -->
SECTION 2. IC 6-1.1-17-20.3, AS ADDED BY P.L.137-2012,
SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 20.3. (a) This section applies only to the
governing body of a public library that:
(1) is not comprised of a majority of officials who are elected to
serve on the governing body; and
(2) has a percentage increase in the proposed budget for the
taxing unit for the ensuing calendar year that is more than:
(A) the
result of:
(A) (i) except as provided in item (ii), the assessed value
growth quotient determined under IC 6-1.1-18.5-2 for the
ensuing calendar year;
or
(ii) in the case of a public library in Lake County, the
assessed value growth quotient determined under
IC 6-1.1-18.5-2 for the ensuing calendar year for those
civil taxing units that are not located in Lake County;
minus
(B) one (1).
For purposes of this section, an individual who qualifies to be
appointed to a governing body or serves on a governing body because
of the individual's status as an elected official of another taxing unit
shall be treated as an official who was not elected to serve on the
governing body.
(b) This section does not apply to an entity whose tax levies are
subject to review and modification by a city-county legislative body
under IC 36-3-6-9.
(c) If:
(1) the assessed valuation of a public library is entirely contained
within a city or town; or
(2) the assessed valuation of a public library is not entirely
contained within a city or town but the public library 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 in the manner prescribed by the
department of local government finance before September 2 of a year.
However, the governing body shall submit its proposed budget and
property tax levy to the county fiscal body in the manner provided in
subsection (d), rather than to the city or town fiscal body, if more than
fifty percent (50%) of the parcels of real property within the
jurisdiction of the public library are located outside the city or town.
(d) If subsection (c) does not apply, the governing body of the public
library shall submit its proposed budget and property tax levy to the
county fiscal body in the county where the public library has the most
assessed valuation. The proposed budget and levy shall be submitted
to the county fiscal body in the manner prescribed by the department
of local government finance before September 2 of a year.
(e) 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 public library. The fiscal body may reduce
or modify but not increase the proposed budget or tax levy.
(f) If a public library fails to file the information required in
subsection (c) or (d), whichever applies, with the appropriate fiscal
body by the time prescribed by this section, the most recent annual
appropriations and annual tax levy of that public library are continued
for the ensuing budget year.
(g) If the appropriate fiscal body fails to complete the requirements
of subsection (e) before the adoption deadline in section 5 of this
chapter for any public library subject to this section, the most recent
annual appropriations and annual tax levy of the city, town, or county,
whichever applies, are continued for the ensuing budget year.
SOURCE: IC 6-1.1-18-5; (13)IN1401.1.3. -->
SECTION 3. IC 6-1.1-18-5, AS AMENDED BY P.L.137-2012,
SECTION 29, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 5. (a) If the proper officers of a political
subdivision desire to appropriate more money for a particular year than
the amount prescribed in the budget for that year as finally determined
under this article, they shall give notice of their proposed additional
appropriation. The notice shall state the time and place at which a
public hearing will be held on the proposal. The notice shall be given
once in accordance with IC 5-3-1-2(b).
(b) If the additional appropriation by the political subdivision is
made from a fund that receives:
(1) distributions from the motor vehicle highway account
established under IC 8-14-1-1 or the local road and street account
established under IC 8-14-2-4; or
(2) revenue from property taxes levied under IC 6-1.1;
the political subdivision must report the additional appropriation to the
department of local government finance. If the additional appropriation
is made from a fund described under this subsection, subsections (f),
(g), (h), and (i) apply to the political subdivision.
(c) However, if the additional appropriation is not made from a fund
described under subsection (b), subsections (f), (g), (h), and (i) do not
apply to the political subdivision. Subsections (f), (g), (h), and (i) do
not apply to an additional appropriation made from the cumulative
bridge fund if the appropriation meets the requirements under
IC 8-16-3-3(c).
(d) A political subdivision may make an additional appropriation
without approval of the department of local government finance if the
additional appropriation is made from a fund that is not described
under subsection (b). However, the fiscal officer of the political
subdivision shall report the additional appropriation to the department
of local government finance.
(e) After the public hearing, the proper officers of the political
subdivision shall file a certified copy of their final proposal and any
other relevant information to the department of local government
finance.
(f) When the department of local government finance receives a
certified copy of a proposal for an additional appropriation under
subsection (e), the department shall determine whether sufficient funds
are available or will be available for the proposal. The determination
shall be made in writing and sent to the political subdivision not more
than fifteen (15) days after the department of local government finance
receives the proposal.
(g) In making the determination under subsection (f), the
department of local government finance shall limit the amount of the
additional appropriation to revenues available, or to be made available,
which have not been previously appropriated.
(h) If the department of local government finance disapproves an
additional appropriation under subsection (f), the department shall
specify the reason for its disapproval on the determination sent to the
political subdivision.
(i) A political subdivision may request a reconsideration of a
determination of the department of local government finance under this
section by filing a written request for reconsideration. A request for
reconsideration must:
(1) be filed with the department of local government finance
within fifteen (15) days of the receipt of the determination by the
political subdivision; and
(2) state with reasonable specificity the reason for the request.
The department of local government finance must act on a request for
reconsideration within fifteen (15) days of receiving the request.
(j) This subsection applies to an additional appropriation by a
political subdivision that must have the political subdivision's annual
appropriations and annual tax levy adopted by a city, town, or county
fiscal body under IC 6-1.1-17-20 or by a legislative or fiscal body under
IC 36-3-6-9. The fiscal or legislative body of the city, town, or county
that adopted the political subdivision's annual appropriation and annual
tax levy must adopt the additional appropriation by ordinance before
the department of local government finance may approve the additional
appropriation.
(k) This subsection applies to a public library that:
(1) is required to submit the public library's budgets, tax rates, and
tax levies for nonbinding review under IC 6-1.1-17-3.5; and
(2) is not required to submit the public library's budgets, tax rates,
and tax levies for binding review and approval under
IC 6-1.1-17-20 or IC 6-1.1-17-20.3.
If a public library subject to this subsection proposes to make an
additional appropriation for a year, and the additional appropriation
would result in the budget for the library for that year increasing (as
compared to the previous year) by a percentage that is greater than the
result of the assessed value growth quotient determined under
IC 6-1.1-18.5-2 for the calendar year minus one (1), percentage
determined under IC 6-1.1-17-20.3(a)(2), the additional
appropriation must first be approved by the city, town, or county fiscal
body described in IC 6-1.1-17-20.3(c) or
IC 6-1.1-17-20(d),
IC 6-1.1-17-20.3(d), as appropriate.
SOURCE: ; (13)IN1401.1.4. -->
SECTION 4.
An emergency is declared for this act.