Citations Affected: IC 6-1.1-21-2.
Synopsis: Property tax replacement for public assistance levies.
Provides for a 100% property tax replacement credit for the amount by
which certain public assistance levies increased after 2005.
Effective: July 1, 2004.
January 15, 2004, read first time and referred to Committee on Ways and Means.
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
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
(repealed) or any citation listed in IC 6-1.1-18.5-9.8 for a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
(repealed) or any citation listed in IC 6-1.1-18.5-9.8 for a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
(repealed) or any citation listed in IC 6-1.1-18.5-9.8 for a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
(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 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(4) 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:
(i) the amount of property taxes imposed in the county for
the repayment of loans under IC 12-19-5-6 (repealed) that is
included in the amount determined under IC 12-19-7-4(a)
STEP SEVEN for property taxes payable in 1995, or for
property taxes payable in each year after 1995, the amount
determined under IC 12-19-7-4(b); and
(ii) the amount of property taxes imposed in the county
attributable to appeals granted under IC 6-1.1-18.6-3 that is
included in the amount determined under IC 12-19-7-4(a)
STEP SEVEN for property taxes payable in 1995, or the
amount determined under IC 12-19-7-4(b) for property taxes
payable in each year after 1995; plus
(2) all taxes to be paid in the county in respect to mobile home
assessments currently assessed for the year in which the taxes
stated in the abstract are to be paid; plus
(3) the amounts, if any, of county adjusted gross income taxes that
were applied by the taxing units in the county as property tax
replacement credits to reduce the individual levies of the taxing
units for the assessment year, as provided in IC 6-3.5-1.1; plus
(4) the amounts, if any, by which the maximum permissible ad
valorem property tax levies of the taxing units of the county were
reduced under IC 6-1.1-18.5-3(b) STEP EIGHT for the stated
assessment year; plus
(5) the difference between:
(A) the amount determined in IC 6-1.1-18.5-3(e) STEP FOUR;
minus
(B) the amount the civil taxing units' levies were increased
because of the reduction in the civil taxing units' base year
certified shares under IC 6-1.1-18.5-3(e).
(h) "December settlement sheet" means the certificate of settlement
filed by the county auditor with the auditor of state, as required under
IC 6-1.1-27-3.
(i) "Tax duplicate" means the roll of property taxes which each
county auditor is required to prepare on or before March 1 of each year
under IC 6-1.1-22-3.
(j) "Eligible property tax replacement amount" is equal to the sum
of the following:
(1) Sixty percent (60%) of the total county tax levy imposed by
each school corporation in a county for its general fund for a
stated assessment year.
(2) For property taxes first due and payable in 2006 and
thereafter, one hundred percent (100%) of a taxpayer's tax
liability in a calendar year due to the amount by which the
total county tax levy increased after 2005 for any of the
following for a stated assessment year:
(A) County medical assistance to wards fund
(IC 12-13-8-2).
(B) County hospital care for the indigent fund
(IC 12-16-14-1).
(C) Family and children's fund (IC 12-19-7-3).
(D) Children's psychiatric residential treatment services
fund (IC 12-19-7.5-5).
(E) Community mental health centers under IC 12-29.
(F) Community mental retardation and other
developmental disabilities centers under IC 12-29.
(G) Township assistance (IC 12-20).
(H) Children with special health care needs county fund
(IC 16-35-3-1).
(3) Twenty percent (20%) of the total county tax levy (less sixty
percent (60%) of the levy for the general fund of a school
corporation that is part of the total county tax levy) tax liability
described in subdivision (1) and one hundred percent (100%)
of the tax liability described in (2)) imposed in a county on real
property for a stated assessment year.
(3) (4) Twenty percent (20%) of the total county tax levy (less
sixty percent (60%) of the levy for the general fund of a school
corporation that is part of the total county tax levy) tax liability
described in subdivision (1) and one hundred percent (100%)
of the tax liability described in (2)) imposed in a county on
tangible personal property, excluding business personal property,
for an assessment year.
(k) "Business personal property" means tangible personal property
(other than real property) that is being:
(1) held for sale in the ordinary course of a trade or business; or
(2) held, used, or consumed in connection with the production of
income.
(l) "Taxpayer's property tax replacement credit amount" means the
sum of the following:
(1) Sixty percent (60%) of a taxpayer's tax liability in a calendar
year for taxes imposed by a school corporation for its general fund
for a stated assessment year.
(2) For property taxes first due and payable in 2006 and
thereafter, one hundred percent (100%) of a taxpayer's tax
liability in a calendar year due to the amount by which the
total county tax levy increased after 2005 for any of the
following for a stated assessment year:
(A) County medical assistance to wards fund
(IC 12-13-8-2).
(B) County hospital care for the indigent fund
(IC 12-16-14-1).
(C) Family and children's fund (IC 12-19-7-3).
(D) Children's psychiatric residential treatment services
fund (IC 12-19-7.5-5).
(E) Community mental health centers under IC 12-29.
(F) Community mental retardation and other
developmental disabilities centers under IC 12-29.
(G) Township assistance (IC 12-20).
(H) Children with special health care needs county fund
(IC 16-35-3-1).
(3) Twenty percent (20%) of a taxpayer's tax liability for a stated
assessment year for a total county tax levy (less sixty percent
(60%) of the levy for the general fund of a school corporation that
is part of the total county tax levy) tax liability described in
subdivision (1) and one hundred percent (100%) of the tax
liability described in (2)) on real property.
(3) (4) Twenty percent (20%) of a taxpayer's tax liability for a
stated assessment year for a total county tax levy (less sixty
percent (60%) of the levy for the general fund of a school
corporation that is part of the total county tax levy) tax liability
described in subdivision (1) and one hundred percent (100%)
of the tax liability described in (2)) on tangible personal
property other than business personal property.
(m) "Tax liability" means tax liability as described in section 5 of
this chapter.
(n) "General school operating levy" means the ad valorem property
tax levy of a school corporation in a county for the school corporation's
general fund.