Citations Affected: IC 6-1.1; IC 21-2; IC 21-3.
Synopsis: School referendum tax levies. Provides that if an excessive
levy referendum is approved, a school corporation may impose a
referendum tax levy that is separate from the general fund tax levy.
Provides that voters may reimpose or extend a referendum tax levy
through the referendum process but may not approve a referendum tax
levy that is imposed for more than seven years. Provides that if the
majority of voters in a referendum to allow a school corporation to
impose a referendum tax levy did not vote to approve the levy, another
referendum to impose a referendum tax levy may not be held for a
period of two years. Does not include the referendum tax levy in the
determination of state tuition support or maximum general fund tax
levy. Provides that a levy increase due to the imposition of a
referendum tax levy is not eligible for property tax replacement credits.
Effective: January 1, 2003.
January 7, 2002, read first time and referred to Committee on Finance.
January 22, 2002, reported favorably _ Do Pass.
January 28, 2002, read second time, amended, ordered engrossed.
A BILL FOR AN ACT to amend the Indiana Code concerning
education finance.
SECTION 1. IC 6-1.1-19-4.5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 4.5. (a) With
respect to every appeal petition that is delivered to the tax control board
by the state board of tax commissioners department of local
government finance under section 4.1 of this chapter and that includes
a request for emergency financial relief (except an appeal petition
described in section 4.7 of this chapter), the tax control board shall,
after having made the study of the appeal petition and related materials
that the tax control board considers necessary, make an appropriate
recommendation to the state board of tax commissioners. department
of local government finance. If the appeal petition requests an
excessive tax levy under subsection (c), the tax control board shall
expedite the board's review as necessary to permit the referendum to be
conducted without a special election. In respect of the appeal petition,
the tax control board may make to the state board of tax commissioners
department of local government finance any of the recommendations
described in section 4.4(a) of this chapter, subject to the limitations
described in section 4.4(b) of this chapter.
(b) In addition, if the tax control board concludes that the appellant
school corporation cannot, in the ensuing calendar year, carry out the
public educational duty committed to the appellant school corporation
by law if, for the ensuing calendar year, the appellant school
corporation does not receive emergency financial relief, the tax control
board may recommend to the state board of tax commissioners
department of local government finance that the order of the county
board of tax adjustment or the county auditor in respect of the budget,
tax levy, or tax rate of the appellant school corporation be approved, or
disapproved and modified, as specified in the tax control board's
recommendation and that the appellant school corporation receive
emergency financial relief from the state, on terms to be specified by
the tax control board in the board's recommendation, in the form of:
(1) a grant or grants from any funds of the state that are available
for such a purpose;
(2) a loan or loans from any funds of the state that are available
for such a purpose;
(3) permission to the appellant school corporation to borrow funds
from a source other than the state or assistance in obtaining the
loan;
(4) an advance or advances of funds that will become payable to
the appellant school corporation under any law providing for the
payment of state funds to school corporations;
(5) permission to the appellant school corporation to:
(A) cancel any unpaid obligation of the appellant school
corporation's general fund to the appellant school corporation's
cumulative building fund; or
(B) use, for general fund purposes, any unobligated balance in
the appellant school corporation's cumulative building fund
and the proceeds of any levy made or to be made by the
appellant school corporation for the appellant school
corporation's cumulative building fund;
(6) permission to use, for general fund purposes, any unobligated
balance in any construction fund, including any unobligated
proceeds of a sale of the school corporation's general obligation
bonds; or
(7) a combination of the emergency financial relief described in
subdivisions (1) through (6).
(c) In addition to, or in lieu of, any recommendation that the tax
control board may make under this section, the tax control board may
recommend that the appellant school corporation be permitted to make
an excessive a referendum tax levy for the ensuing calendar year
under this subsection. The recommendation may not be put into effect
until a majority of the individuals who vote in a referendum that is
conducted in accordance with the following requirements approves the
appellant school corporation's making an excessive a referendum tax
levy for the ensuing calendar year:
(1) Whenever:
(A) the tax control board recommends to the state board of tax
commissioners department of local government finance that
the appellant school corporation be permitted to make an
excessive a referendum tax levy for the ensuing calendar year
if a majority of the individuals voting in a referendum held in
the appellant school corporation approves the appellant school
corporation's making an excessive a referendum tax levy;
(B) the state board of tax commissioners department of local
government finance gives the board's written approval of the
recommendation; and
(C) the appellant school corporation requests that the tax
control board take the steps necessary to cause a referendum
to be conducted;
the tax control board shall proceed in accordance with this
subsection.
(2) The question to be submitted to the voters in the referendum
must read as follows:
"For the __ (insert number) calendar year or years
immediately following the holding of the referendum, shall the
school corporation impose a property tax rate that does not
exceed _____________ (insert amount) cents ($0.__) (insert
amount) on each one hundred dollars ($100) of assessed
valuation and that is in addition to the school corporation's
normal tax rate?".
The voters in a referendum may not approve a referendum
tax levy that is imposed for more than seven (7) years.
However, a referendum tax levy may be reimposed or
extended under this subsection.
(3) The tax control board shall act under IC 3-10-9-3 to certify the
question to be voted on at the referendum to the county election
board of each county in which any part of the appellant school
corporation lies. Each county clerk shall, upon receiving the
question certified by the tax control board, call a meeting of the
county election board to make arrangements for the referendum.
The referendum shall be held in the next primary or general
election in which the residents of the appellant school corporation
are entitled to vote after certification of the question under
IC 3-10-9-3. However, if the referendum would be held at a
primary or general election more than six (6) months after
certification by the tax control board, the referendum shall be held
at a special election to be conducted not less than sixty (60) days
after the question is certified to the circuit court clerk or clerks by
the tax control board. The appellant school corporation shall
advise each affected county election board of the date on which
the appellant school corporation desires that the referendum be
held, and, if practicable, the referendum shall be held on the day
specified by the appellant school corporation. The referendum
shall be held under the direction of the county election board,
which shall take all steps necessary to carry out the referendum.
Not less than ten (10) days before the date on which the
referendum is to be held, the county election board shall cause
notice of the question that is to be voted upon at the referendum
to be published in accordance with IC 5-3-1. and IC 20-5-12. If
the referendum is not conducted at a primary or general election,
the appellant school corporation in which the referendum is to be
held shall pay all of the costs of holding the referendum.
(4) Each county election board shall cause the question certified
to the circuit court clerk by the tax control board to be placed on
the ballot in the form prescribed by IC 3-10-9-4. The county
election board shall also cause an adequate supply of ballots and
voting equipment to be delivered to the precinct election board of
each precinct in which the referendum is to be held.
(5) The individuals entitled to vote in the referendum are all of the
registered voters resident in the appellant school corporation.
(6) Each precinct election board shall count the affirmative votes
and the negative votes cast in the referendum and shall certify
those two (2) totals to the county election board of each county in
which the referendum is held. The circuit court clerk of each
county shall, immediately after the votes cast in the referendum
have been counted, certify the results of the referendum to the tax
control board. Upon receiving the certification of all of the votes
cast in the referendum, the tax control board shall promptly
certify the result of the referendum to the state board of tax
commissioners. department of local government finance. If a
majority of the individuals who voted in the referendum voted
"yes" on the referendum question, the state board of tax
commissioners, department of local government finance, upon
being notified in the manner described in this subsection of the
result of the referendum, shall take prompt and appropriate steps
to notify the appellant school corporation that the appellant school
corporation is authorized to collect, for the calendar year that next
follows the calendar year in which the referendum is held, an
excessive a referendum tax levy not greater than the amount
approved in the referendum. The excessive referendum tax levy
shall become the adjusted base levy for that may be imposed for
the number of calendar year years approved by the voters
following the referendum for the school corporation in which the
referendum is held. unless the question upon which the voters
voted at the referendum has been framed to preclude the
excessive tax levy from becoming the adjusted base levy of the
school corporation. If a majority of the individuals who voted
in the referendum voted "yes" on the referendum question,
the school corporation shall establish a referendum tax levy
fund under IC 21-2-11.6. A school corporation's referendum
tax levy may not be considered in the determination of the
school corporation's state tuition support under IC 21-3-1.7
or the determination of the school corporation's maximum
general fund tax levy under this chapter and IC 21-3-1.7. If a
majority of the persons who voted in the referendum did not vote
"yes" on the referendum question, the appellant school
corporation may not make any tax levy for its general fund other
than a normal tax levy and another referendum under this
subsection may not be held for a period of two (2) years after
the date of the referendum.
(d) With respect to any school corporation to which a loan or
advance of state funds is made under this section, or for which such a
loan or an advance is recommended, for purposes other than the
purpose specified in section 4.7 of this chapter, the tax control board
may recommend to the state board of tax commissioners department
of local government finance that the school corporation be authorized,
for a specified calendar year, and solely for the purpose of enabling the
school corporation to repay the loan or advance, to collect an excessive
tax levy. A recommendation under this subsection must specify the
amount of the recommended excessive tax levy. Upon receiving the
recommendation from the tax control board, and without any other
proceeding, the state board of tax commissioners department of local
government finance may authorize the school corporation, for a
specified calendar year, to make an excessive tax levy in accordance
with the recommendation of the tax control board or in accordance with
a modification of the recommendation that the state board of tax
commissioners department of local government finance determines
is proper. Whenever the state board of tax commissioners department
of local government finance exercises the power given to the state
board of tax commissioners department of local government finance
under this subsection, the state board department of local
government finance shall, in the state board's department of local
government finance's order to the affected school corporation, specify
the amount of the authorized excessive tax levy and take appropriate
steps to ensure that so much of the proceeds of the excessive tax levy
as should be used for loan repayment purposes is not used for any other
purpose. The state board of tax commissioners department of local
government finance may not exercise the power described in this
subsection to authorize any school corporation to collect an excessive
tax levy for more than one (1) calendar year in any period of four (4)
consecutive calendar years.
SECTION 2. IC 6-1.1-21-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 2. As used in this
chapter:
(a) "Taxpayer" means a person who is liable for taxes on property
assessed under this article.
(b) "Taxes" means taxes payable in respect to property assessed
under this article. The term does not include special assessments,
penalties, or interest, but does include any special charges which a
county treasurer combines with all other taxes in the preparation and
delivery of the tax statements required under IC 6-1.1-22-8(a).
(c) "Department" means the department of state revenue.
(d) "Auditor's abstract" means the annual report prepared by each
county auditor which under IC 6-1.1-22-5, is to be filed on or before
March 1 of each year with the auditor of state.
(e) "Mobile home assessments" means the assessments of mobile
homes made under IC 6-1.1-7.
(f) "Postabstract adjustments" means adjustments in taxes made
subsequent to the filing of an auditor's abstract which change
assessments therein or add assessments of omitted property affecting
taxes for such assessment year.
(g) "Total county tax levy" means the sum of:
(1) the remainder of:
(A) the aggregate levy of all taxes for all taxing units in a
county which are to be paid in the county for a stated
assessment year as reflected by the auditor's abstract for the
assessment year, adjusted, however, for any postabstract
adjustments which change the amount of the aggregate levy;
minus
(B) the sum of any increases in property tax levies of taxing
units of the county that result from appeals described in:
(i) IC 6-1.1-18.5-13(5) and IC 6-1.1-18.5-13(6) filed after
December 31, 1982; plus
(ii) the sum of any increases in property tax levies of taxing
units of the county that result from any other appeals
described in IC 6-1.1-18.5-13 filed after December 31,
1983; plus
(iii) IC 6-1.1-18.6-3 (children in need of services and
delinquent children who are wards of the county); minus
(C) the total amount of property taxes imposed for the stated
assessment year by the taxing units of the county under the
authority of IC 12-1-11.5 (repealed), IC 12-2-4.5 (repealed),
IC 12-19-5, or IC 12-20-24; minus
(D) the total amount of property taxes to be paid during the
stated assessment year that will be used to pay for interest or
principal due on debt that:
(i) is entered into after December 31, 1983;
(ii) is not debt that is issued under IC 5-1-5 to refund debt
incurred before January 1, 1984; and
(iii) does not constitute debt entered into for the purpose of
building, repairing, or altering school buildings for which
the requirements of IC 20-5-52 were satisfied prior to
January 1, 1984; minus
(E) the amount of property taxes imposed in the county for the
stated assessment year under the authority of IC 21-2-6 or any
citation listed in IC 6-1.1-18.5-9.8 for a cumulative building
fund whose property tax rate was initially established or
reestablished for a stated assessment year that succeeds the
1983 stated assessment year; minus
(F) the remainder of:
(i) the total property taxes imposed in the county for the
stated assessment year under authority of IC 21-2-6 or any
citation listed in IC 6-1.1-18.5-9.8 for a cumulative building
fund whose property tax rate was not initially established or
reestablished for a stated assessment year that succeeds the
1983 stated assessment year; minus
(ii) the total property taxes imposed in the county for the
1984 stated assessment year under the authority of IC 21-2-6
or any citation listed in IC 6-1.1-18.5-9.8 for a cumulative
building fund whose property tax rate was not initially
established or reestablished for a stated assessment year that
succeeds the 1983 stated assessment year; minus
(G) the amount of property taxes imposed in the county for the
stated assessment year under:
(i) IC 21-2-15 for a capital projects fund; plus
(ii) IC 6-1.1-19-10 for a racial balance fund; plus
(iii) IC 20-14-13 for a library capital projects fund; plus
(iv) IC 20-5-17.5-3 for an art association fund; plus
(v) IC 21-2-17 for a special education preschool fund; plus
(vi) IC 21-2-11.6 for a referendum tax levy fund; plus
(vii) an appeal filed under IC 6-1.1-19-5.1 for an increase in
a school corporation's maximum permissible general fund
levy for certain transfer tuition costs; plus
(vii) (viii) an appeal filed under IC 6-1.1-19-5.4 for an
increase in a school corporation's maximum permissible
general fund levy for transportation operating costs; minus
(H) the amount of property taxes imposed by a school
corporation that is attributable to the passage, after 1983, of a
referendum for an excessive tax levy under IC 6-1.1-19,
including any increases in these property taxes that are
attributable to the adjustment set forth in IC 6-1.1-19-1.5(a)
STEP ONE or any other law; minus
(I) for each township in the county, the lesser of:
(i) the sum of the amount determined in IC 6-1.1-18.5-19(a)
STEP THREE or IC 6-1.1-18.5-19(b) STEP THREE,
whichever is applicable, plus the part, if any, of the
township's ad valorem property tax levy for calendar year
1989 that represents increases in that levy that resulted from
an appeal described in IC 6-1.1-18.5-13(5) filed after
December 31, 1982; or
(ii) the amount of property taxes imposed in the township for
the stated assessment year under the authority of
IC 36-8-13-4; minus
(J) for each participating unit in a fire protection territory
established under IC 36-8-19-1, the amount of property taxes
levied by each participating unit under IC 36-8-19-8 and
IC 36-8-19-8.5 less the maximum levy limit for each of the
participating units that would have otherwise been available
for fire protection services under IC 6-1.1-18.5-3 and
IC 6-1.1-18.5-19 for that same year; minus
(K) for each county, the sum of:
meaning set forth in IC 21-2-11-1.
Sec. 3. (a) The governing body of each school corporation for
which a referendum tax levy is approved under IC 6-1.1-19-4.5(c)
shall establish a referendum tax levy fund.
(b) A school corporation may impose a referendum tax levy in
the amount allowed under IC 6-1.1-19-4.5(c) for the school
corporation.
(c) Property tax collections from a school corporation's
referendum tax levy shall be deposited in the referendum tax levy
fund. Money in the fund may be used for any lawful school
expenses.
SECTION 4. IC 21-3-1.7-3.1, AS AMENDED BY P.L.291-2001,
SECTION 240, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2003]: Sec. 3.1. (a) As used in this
chapter, "previous year revenue" for calculations with respect to a
school corporation equals:
(1) the school corporation's tuition support for regular programs,
including basic tuition support, and excluding:
(A) special education grants;
(B) vocational education grants;
(C) at-risk programs;
(D) the enrollment adjustment grant;
(E) for 1999 and thereafter, the academic honors diploma
award; and
(F) for 2001 and thereafter, the primetime distribution;
for the year that precedes the current year; plus
(2) the school corporation's tuition support levy for the year that
precedes the current year before the reductions required under
section 5(1) and 5(2) and 5(3) of this chapter; plus
(3) distributions received by the school corporation under
IC 6-1.1-21.6 for the year that precedes the current year; plus
(4) the school corporation's excise tax revenue for the year that
precedes the current year by two (2) years; minus
(5) an amount equal to the reduction in the school corporation's
tuition support under subsection (b) or IC 20-10.1-2-1, or both.
(b) A school corporation's previous year revenue shall be reduced
if:
(1) the school corporation's state tuition support for special or
vocational education was reduced as a result of a complaint being
filed with the department of education after December 31, 1988,
because the school program overstated the number of children
enrolled in special or vocational education programs; and