Citations Affected: IC 6-1.1; IC 6-2.5-10-1; IC 6-3; IC 6-8.1-1-1;
IC 6-10; IC 21-2; IC 21-3; IC 36-1-2-7.
Synopsis: Elimination of school property taxes. Terminates the
authority of a school corporation to impose a property tax for
educational purposes other than to repay an obligation that: (1) was
entered into before April 1, 2006; and (2) includes a pledge requiring
the school corporation to repay the obligation only from property taxes.
Permits a school corporation to impose a local income for education tax
against adjusted gross income in the taxing unit. Reduces the state
adjusted gross income tax imposed on individuals. Eliminates
distributions to school corporations from the property tax replacement
fund. Provides for an additional state funded ADM flat grant to school
corporations and charter schools. Requires school corporations to use
the grant to reduce the local income tax for education tax rates imposed
for debt service and capital projects. Makes an appropriation. Makes
other related changes.
Effective: July 1, 2006; January 1, 2007.
January 10, 2006, read first time and referred to Committee on Ways and Means.
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation and to make an appropriation.
this STEP is the school corporation's adjusted target property
local income for education tax rate.
STEP THREE: Divide Determine the school corporation's total
assessed value by one hundred dollars ($100). adjusted gross
income of all taxpayers in the school corporation.
STEP FOUR: Multiply the STEP TWO result by the STEP
THREE result.
STEP FIVE: Determine the sum of the following:
(A) The STEP FOUR result.
(B) An amount equal to the annual decrease in federal aid to
impacted areas from the year preceding the ensuing calendar
year by three (3) years to the year preceding the ensuing
calendar year by two (2) years.
(C) The part of the maximum general fund local income for
education tax levy for the year that equals the original amount
of the levy by the school corporation to cover the costs of
opening a new school facility or reopening an existing facility
during the preceding year.
(D) The amount determined under item (iv) of the following
formula:
(i) Determine the target revenue per ADM under
IC 21-3-1.7-6.7 for each charter school that included at least
one (1) student who has legal settlement in the school
corporation in the charter school's current ADM.
(ii) For each charter school, multiply the item (i) amount by
the number of students who have legal settlement in the
school corporation and who are included in the charter
school's current ADM.
(iii) Determine the sum of the item (ii) amounts.
(iv) Multiply the item (iii) amount by thirty-five hundredths
(0.35).
In determining the number of students for purposes of this
clause, each kindergarten pupil shall be counted as one-half
(1/2) pupil.
(c) For purposes of this section, "total assessed value" with respect
to a school corporation means the total assessed value of all taxable
property for ad valorem property taxes first due and payable during that
year.
(d) The department of local government finance shall annually
establish an assessment ratio and adjustment factor for each school
corporation to be used upon the review and recommendation of the
budget committee. The information compiled, including background
documentation, may not be used in a:
(1) review of an assessment under IC 6-1.1-8, IC 6-1.1-13,
IC 6-1.1-14, or IC 6-1.1-15;
(2) petition for a correction of error under IC 6-1.1-15-12; or
(3) petition for refund under IC 6-1.1-26.
(e) (c) All tax rates and tax levies computed under this section shall
be computed by rounding in conformity with IC 21-3-1.7-7.
valorem property tax levy. The amount of the levy shall be determined
each year and the levy may not exceed the lesser of the following:
(1) The revenue derived from a local income for education tax
rate of eight and thirty-three hundredths cents ($0.0833) for each
one hundred dollars ($100) of assessed valuation one thousand
nine hundred seventy-two ten thousandths percent (0.1972%)
within the school corporation.
(2) The revenue derived from a tax rate equal to the difference
between the maximum rate allowed for the school corporation's
capital projects fund under IC 21-2-15 minus the actual capital
projects fund rate that will be in effect for the school corporation
for a particular year.
(e) The department of local government finance shall review the
petition of the school corporation and the recommendation of the
school property tax control board and:
(1) disapprove the petition if the petition does not comply with
this section;
(2) approve the petition; or
(3) approve the petition with modifications.
(f) A property tax levy under this section is in addition to, and not
part of, the school corporation's general fund property tax levy for
purposes of determining the school corporation's maximum permissible
general fund property tax levy under this chapter.
(g) Money received from a property tax levy under this section shall
be deposited in the school corporation's racial balance fund established
under this section. Money in the fund may be used only for education
programs that improve or maintain racial balance in the school
corporation. Money in the fund may not be used for:
(1) transportation; or
(2) capital improvements;
even though those costs may be attributable to the school corporation's
proposed programs for improving or maintaining racial balance in the
school corporation.
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(4) and IC 6-1.1-18.5-13(5) 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)
(repealed); 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; and
(ii) is not debt that is issued under IC 5-1-5 to refund debt
incurred before January 1, 1984; and
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 (as effective January 1, 1995) 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
(repealed) that is included in the amount determined under
IC 12-19-7-4(a) STEP SEVEN (as effective January 1,
1995) 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, except as
otherwise provided by law, 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) (1) 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) imposed in a
county on real property for a stated assessment year.
(3) (2) 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) 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,
except as otherwise provided by law, 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) (1) 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) on real
property.
(3) (2) 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) 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.
(o) "Board" refers to the property tax replacement fund board
established under section 10 of this chapter.
whether the total amount of property tax replacement credits granted
in Indiana under section 5 of this chapter and homestead credits
granted in Indiana under IC 6-1.1-20.9-2 for a year, determined without
applying subsection (b), will be less than the amount determined under
subsection (b). The budget agency shall give notice of its determination
to the members of the board and, in an electronic format under
IC 5-14-6, the general assembly. If the budget agency determines that
the amount determined under subsection (b) will not be exceeded in a
particular year, the board shall increase for that year the percentages
used to determine a taxpayer's property tax replacement credit amount
and the homestead credit percentage applicable under IC 6-1.1-20.9-2
so that the total amount of property tax replacement credits granted in
Indiana under section 5 of this chapter and homestead credits granted
in Indiana under IC 6-1.1-20.9-2 at least equals the amount determined
under subsection (b). In making adjustments under this subsection, the
board shall increase percentages in the following order until the total
of property tax replacement credits granted under section 5 of this
chapter and homestead credits granted under IC 6-1.1-20.9-2 for the
year at least equals the amount determined under subsection (b):
(1) The homestead credit percentage specified in IC 6-1.1-20.9-2
until the homestead percentage reaches the lesser of:
(A) thirty fifty percent (30%); (50%); or
(B) the percentage at which the total of property tax
replacement credits granted under section 5 of this chapter and
homestead credits granted under IC 6-1.1-20.9-2 for the year
at least equals the amount determined under subsection (b).
(2) If the amount determined under subsection (b) is not exceeded
after increasing the homestead percentage under subdivision (1),
the board shall increase the property tax replacement credit
percentage specified in section 2(j)(1) and 2(l)(1) of this chapter
until the property tax replacement percentage reaches the lesser
of:
(A) seventy percent (70%); or
(B) the percentage at which the total of property tax
replacement credits granted under section 5 of this chapter and
homestead credits granted under IC 6-1.1-20.9-2 for the year,
as adjusted under this subsection, at least equals the amount
determined under subsection (b).
(3) (2) If the amount determined under subsection (b) is not
exceeded after making all possible increases in credit percentages
under subdivisions subdivision (1), and (2), the board shall
increase the property tax replacement credit percentages specified
in section 2(j)(2), 2(j)(3), 2(l)(2), and 2(l)(3) 2 of this chapter to
the percentage at which the total of property tax replacement
credits granted under section 5 of this chapter and homestead
credits granted under IC 6-1.1-20.9-2 for the year, as adjusted
under this subsection, at least equals the amount determined
under subsection (b).
(d) The adjusted percentages set under subsection (c):
(1) are the percentages that apply under:
(A) section 5 of this chapter to determine a taxpayer's property
tax replacement credit amount; and
(B) IC 6-1.1-20.9-2 to determine a taxpayer's homestead
credit; and
(2) must be used by the:
(A) department in estimating the eligible property tax
replacement amount under section 3 of this chapter; and
(B) department of local government finance in making its
certification under section 3(b) of this chapter;
and for all other purposes under this chapter and IC 6-1.1-20.9
related to distributions under this chapter;
for the particular year covered by a budget agency's determination
under subsection (c).
adjusted, however, for any change in assessed valuation which may
have been made pursuant to a post-abstract adjustment if the change is
set forth on the tax statement or on a corrected tax statement stating the
taxpayer's tax liability, as prepared by the county treasurer in
accordance with IC 6-1.1-22-8(a). However, except when using the
term under section 2(l)(1) of this chapter, The tax liability of a taxpayer
does not include the amount of any property tax owed by the taxpayer
that is attributable to that part of any property tax levy subtracted under
section 2(g)(1)(B), 2(g)(1)(C), 2(g)(1)(D), 2(g)(1)(E), 2(g)(1)(F),
2(g)(1)(G), 2(g)(1)(H), 2(g)(1)(I), 2(g)(1)(J), or 2(g)(1)(K) of this
chapter in computing the total county tax levy.
(c) The credit for taxes payable in a particular year with respect to
mobile homes which are assessed under IC 6-1.1-7 is equivalent to the
taxpayer's property tax replacement credit amount for the taxes payable
with respect to the assessments plus the adjustments stated in this
section.
(d) Each taxpayer in a taxing district that contains all or part of an
economic development district that meets the requirements of section
5.5 of this chapter is entitled to an additional credit for property tax
replacement. This credit is equal to the product of:
(1) the STEP TWO quotient determined under section 4(a)(3) of
this chapter for the taxing district; multiplied by
(2) the taxpayer's taxes levied in the taxing district that are
allocated to a special fund under IC 6-1.1-39-5.
2001.
STEP TWO: The governing body shall estimate the amount of tax
increment revenues it will receive in the next calendar year after
implementation of the increase in the property tax credits payable
under IC 6-1.1-21, as amended by the general assembly in 2002,
with respect to general fund levies imposed by elimination of
school corporation property taxes by the general assembly in
2006 for all school corporations with jurisdiction in the allocation
area.
STEP THREE: Subtract the STEP TWO amount from the STEP
ONE amount.
1 of the year. In a year in which a general reassessment becomes
effective, the department may extend the deadline under this subsection
by giving written notice to the appellant before the deadline.
(c) If the department approves an appeal filed under this section, it
shall order a distribution from the property tax replacement fund in the
amount determined under section 13(b) of this chapter in the same
manner as distributions are made under IC 6-1.1-21-4.
(d) If the department denies an appeal filed under section 13 of this
chapter, or does not grant the maximum permissible distribution under
section 13(b) of this chapter, the legislative body of the unit that
established the district may increase the levy imposed under this
chapter to an amount that, when combined with any distribution
received under this chapter, does not exceed the tax increment
replacement amount.
required to collect or administer.
and published in the same manner as other tax rates under this
article.
(e) The amount collected from an additional tax rate imposed
under this section shall be deposited in the taxing unit's account in
the excess fund.
Sec. 7. (a) The department of local government finance, after
review of the recommendation of the budget agency, may impose
an additional tax rate for a taxing unit to cover a shortfall in tax
collections below the amount of tax revenue certified for use in a
taxing unit's budget.
(b) An additional tax rate under this section may be imposed
over more than one (1) year to recover the full amount of the
shortfall.
(c) The department of local government finance shall notify the
taxing unit's fiscal officer of a proposed additional tax rate under
this section on the schedule determined by the department of local
government finance.
(d) An additional tax rate under this section shall be certified
and published in the same manner as other tax rates under this
article.
(e) The amount collected from an additional tax rate imposed
under this section shall be deposited in the taxing unit's account in
the excess fund.
Chapter 5. Determination of Tax Area
Sec. 1. A tax levy for a taxing unit shall be imposed in the tax
area determined under this chapter.
Sec. 2. The tax rate imposed by a taxing unit in the taxing unit's
tax area shall be uniformly applied to the adjusted gross income of
all taxpayers in the tax area.
Sec. 3. The tax area for a taxing unit is the area within the
boundaries of the taxing unit.
Chapter 6. Imposition of Tax
Sec. 1. The fiscal body of a taxing unit may impose a local
income for education tax on the adjusted gross income of taxpayers
in the taxing unit's tax area.
Sec. 2. The tax is imposed on the adjusted gross income of:
(1) each individual who is a resident of the tax area on the
residency determination date for the individual's taxable
year; and
(2) each individual who is a nonresident of the tax area on the
residency determination date for the individual's taxable year.
Sec. 3. The tax on a nonresident may be imposed only on the
part of the nonresident's adjusted gross income that is derived
from the individual's principal place of business or employment in
the tax area.
Sec. 4. In the case of a resident of Perry County, the tax may not
be imposed on the part of the individual's adjusted gross income
that is:
(1) earned in a county that is:
(A) located in another state; and
(B) adjacent to the county in which the taxpayer resides;
and
(2) subject to an income tax imposed by a county, city, town,
or other local governmental entity in the other state.
Sec. 5. For purposes of this chapter, an individual shall be
treated as a resident of the tax area in which the individual:
(1) maintains a home, if the individual maintains only one (1)
home in Indiana;
(2) if subdivision (1) does not apply, is registered to vote;
(3) if subdivision (1) or (2) does not apply, registers the
individual's personal automobile; or
(4) if subdivision (1), (2), or (3) does not apply, spends the
majority of the individual's time spent in Indiana during the
taxable year in question.
Sec. 6. The residence or principal place of business or
employment of an individual is to be determined on January 1 of
the year in which the individual's taxable year begins. If an
individual changes the location of the individual's residence or
principal place of employment or business to another tax area in
Indiana during a year, the individual's liability for the tax is not
affected.
Sec. 7. A taxing unit's fiscal body may pass a resolution to enter
into reciprocity agreements with the taxing authority of a city,
town, municipality, county, or other similar local governmental
entity of any other state. A reciprocity agreement must provide
that the income of Indiana residents is exempt from income
taxation by the other local governmental entity to the extent that
income of nonresidents who reside in the other local governmental
entity is exempt from the tax in the Indiana taxing unit entering
into the agreement.
Sec. 8. A reciprocity agreement adopted under this chapter may
not become effective until it is also made effective in the other local
governmental entity that is a party to the agreement.
Sec. 9. The form and effective date of any reciprocity agreement
described in this chapter must be approved by the department of
state revenue. The taxing unit shall certify the reciprocity
agreement and any change in the reciprocity agreement to the
department of state revenue.
Sec. 10. If for any taxable year a taxpayer is subject to different
tax rates for the tax imposed in a tax area, the taxpayer's tax rate
for the tax area for that taxable year is the rate determined in
STEP FOUR of the following STEPS:
STEP ONE: Multiply the number of months in the taxpayer's
taxable year that precede July 1 by the rate in effect before
the rate change.
STEP TWO: Multiply the number of months in the taxpayer's
taxable year that follow June 30 by the rate in effect after the
rate change.
STEP THREE: Add the results determined under STEP ONE
and STEP TWO.
STEP FOUR: Divide the STEP THREE result by twelve (12).
Sec. 11. If the tax is not in effect during a taxpayer's entire
taxable year, the amount of tax that the taxpayer owes for that
taxable year equals the product of:
(1) the amount of tax the taxpayer would owe if the tax had
been imposed during the taxpayer's entire taxable year;
multiplied by
(2) a fraction. The numerator of the fraction equals the
number of days in the taxpayer's taxable year during which
the tax was in effect. The denominator of the fraction equals
the total number of days in the taxpayer's taxable year.
However, if the taxpayer files state income tax returns on a yearly
basis, the fraction to be applied under this section is one-half (1/2).
Sec. 12. (a) Except as provided in subsection (b), if for a
particular taxable year a resident is liable for an income tax
imposed by a county, city, town, or other local governmental entity
located outside Indiana, the resident is entitled to a credit against
the resident's total tax liability imposed under this article for that
same taxable year. The amount of the credit equals the amount of
tax imposed by the other governmental entity on income derived
from sources outside Indiana and subject to the tax under this
chapter. However, the credit provided by this section may not
reduce a resident's tax liability under this article to an amount less
than would have been owed if the income subject to taxation by the
other governmental entity had been ignored.
(b) The credit provided by this section does not apply to a
resident to the extent that the other governmental entity provides
for a credit to the resident for the amount of taxes owed under this
article.
(c) To claim the credit provided by this section, a resident must
provide the department of state revenue with satisfactory evidence
that the resident is entitled to the credit.
Sec. 13. (a) If for a particular taxable year a taxpayer is, or a
taxpayer and the taxpayer's spouse who file a joint return are,
allowed a credit for the elderly or totally disabled under Section 22
of the Internal Revenue Code, the taxpayer is, or the taxpayer and
the taxpayer's spouse are, entitled to a credit against the tax
liability under this article for that same taxable year. The amount
of the credit equals the lesser of:
(1) the product of:
(A) the credit for the elderly or totally disabled for that
same taxable year; multiplied by
(B) a fraction, the:
(i) numerator of which is the tax rate imposed under this
article against the taxpayer or the taxpayer and the
taxpayer's spouse; and
(ii) denominator of which is fifteen-hundredths (0.15); or
(2) the amount of tax imposed on the taxpayer or the taxpayer
and the taxpayer's spouse.
(b) If a taxpayer and the taxpayer's spouse file a joint return
and are subject to different taxing unit tax rates for the same
taxable year, the taxpayer and the taxpayer's spouse shall compute
the credit under this section by using the formula provided under
subsection (a), except that they shall use the average of the two (2)
tax rates imposed against them as the numerator referred to in
subsection (a)(1)(B)(i).
Sec. 14. Except as otherwise provided in this chapter, all
provisions of the adjusted gross income tax law (IC 6-3)
concerning:
(1) definitions;
(2) declarations of estimated tax;
(3) filing of returns;
(4) deductions or exemptions from adjusted gross income;
(5) remittances;
(6) incorporation of the provisions of the Internal Revenue
Code;
(7) penalties and interest; and
(8) exclusion of military pay credits for withholding;
serve the subpoena, discovery order, or protective order.
Sec. 2. An order issued by the department of local government
finance under this article may be enforced in the manner provided
by IC 4-21.5-6.
Sec. 3. (a) The following may petition for judicial review of the
final determination of the department of local government finance
under this article:
(1) An affected taxing unit.
(2) The county fiscal officer for a county in which an affected
taxing unit is located.
(3) Any person or entity that is the subject of an order under
this article.
(4) If an order was issued under this article as the result of an
appeal, any of the parties to the appeal.
(b) The petition must be filed in the tax court not more than
thirty (30) days after the department of local government finance
enters its order under this article.
Chapter 9. Adoption of Budgets, Tax Rate, and Tax Levies
Sec. 1. Before July 2 in each year, the county fiscal officer shall
send a certified statement to the fiscal officer of each taxing unit in
the county containing the following information:
(1) An estimate of the taxes to be distributed to the taxing unit
during the last six (6) months of the current year.
(2) The average growth in adjusted gross income in the county
over the preceding three (3) years, as determined according
to procedures established by the department of local
government finance.
(3) The amount available in the excess fund to replace revenue
shortfalls from a year before the ensuing year and to reduce
tax rates in the ensuing year.
(4) Any other information at the disposal of the county fiscal
officer that might affect the budget adoption process.
Sec. 2. In formulating budget estimates, a taxing unit's fiscal
officer and fiscal body shall identify the tax levies that are needed
for each fund for the budget year.
Sec. 3. In the notice required under IC 6-1.1-17-3, a taxing unit
shall include the following information:
(1) The amount of the budget for each fund that the taxing
unit proposes to fund from taxes, as determined before the
inclusion of the amounts described in subdivision (2) and the
estimated tax rate necessary to raise the amount.
(2) The amount of each excessive levy appeal or other appeal
under IC 6-1.1-18.5, IC 6-1.1-19, or another law that the
taxing unit proposes to fund from taxes and the estimated tax
rate necessary to raise the amount.
(3) The amount of the taxing unit's budget that will be funded
from a distribution of the taxing unit's reserve in the excess
fund.
(4) The amount of tax levy and tax rate required under
IC 6-10-4-5 and IC 6-10-4-6.
Sec. 4. Not later than the date that the notice described in
section 3 of this chapter is published, a taxing unit shall distribute
a copy of the notice to the county fiscal officer.
Sec. 5. In the hearing conducted under IC 6-1.1-17-3 and
IC 6-1.1-17-5 or IC 6-1.1-17-5.6, a taxing unit shall consider public
testimony concerning the part of the taxing unit's budget that the
taxing unit proposes to fund from taxes.
Sec. 6. Ten (10) or more individuals or entities that could be
subject to a tax under this article may object to a taxing unit's
budget in the same manner as an objection may be filed under
IC 6-1.1-17-5. The taxing unit shall make findings concerning an
objection filed under this section in the same manner as the taxing
unit is required to make findings to an objection filed under
IC 6-1-1.17-5.
Sec. 7. The taxing unit's:
(1) budget; and
(2) tax levies;
must be adopted in conformity with IC 6-1.1-17-5 or
IC 6-1.1-17-5.6, as applicable. The resolution in which the tax levies
are adopted must estimate the tax rates necessary to raise the tax
levies and must separately state the tax levies and tax rates that are
attributable to an excessive levy appeal.
Sec. 8. If the fiscal body does not fix a budget or specify the
taxes needed to fund the budget before the date specified in
IC 6-1.1-17-5 or IC 6-1.1-17-5.6 or any later date approved by the
department of local government finance, the tax levy specified in
the most recently adopted budget shall be treated as the tax levy
adopted for the ensuing year. The department of local government
finance shall compute the appropriate tax rate.
Sec. 9. A tax rate must be uniform throughout the taxing unit's
tax area.
Sec. 10. Each year at least two (2) days before the first meeting
of the county board of tax adjustment held under IC 6-1.1-29-4, a
taxing unit shall file with the county auditor of each county in
which the taxing unit is located:
(1) a statement of the tax rate and levy fixed by the taxing unit
for the ensuing budget year;
(2) two (2) copies of the budget adopted by the taxing unit for
the ensuing budget year; and
(3) two (2) copies of any findings adopted under section 6 of
this chapter.
The county auditor shall present these items to the county board of
tax adjustment at the board's first meeting. If a taxing unit is
located in more than one (1) county, the county determined under
IC 6-1.1-17-7 has jurisdiction over the taxing unit's budget, tax
rates, and tax levies.
Sec. 11. When a county board of tax adjustment or county fiscal
officer (if the county fiscal officer is permitted by law to act for or
instead of the county board of tax adjustment) reviews budgets, tax
levies, and tax rates under IC 6-1.1-17-6, the county board of tax
adjustment or county fiscal officer may revise or reduce, but not
increase, taxes, tax rates, and the part of the budget funded from
taxes to enforce the taxing unit's tax limits imposed by law. A
county board of tax adjustment or county fiscal officer shall notify
the fiscal officer of each taxing unit of the action taken under this
section.
Sec. 12. When a county board of tax adjustment or county fiscal
officer (if the county fiscal officer is permitted by law to act for or
instead of the county board of tax adjustment) reviews budgets, tax
levies, and tax rates under IC 6-1.1-17-6, the county board of tax
adjustment or county fiscal officer may recommend that a taxing
unit's tax limits are inadequate to carry out the governmental
functions of the taxing unit. The recommendation shall be filed
with the county fiscal officer and the department of local
government finance with findings of fact to support the
recommendation.
Sec. 13. A county board of tax adjustment or the county fiscal
officer (if the county fiscal officer is permitted by law to act for or
instead of the county board of tax adjustment) shall complete its
duties under sections 11 and 12 of this chapter before the date
specified in IC 6-1.1-17-9. The county board of tax adjustment or
county fiscal officer shall issue its determination in the form of a
written order. The written order shall be certified to the following:
(1) The affected taxing unit.
(2) The county fiscal officer for each county in which the
taxing unit is located.
chapter. The department of local government finance may take any
other action permitted by this chapter.
Sec. 20. The department of local government finance may take
an action under this chapter to certify a budget only after
conducting a public hearing on the action in the affected county.
However, if an appeal has been filed concerning a tax rate or tax
levy, the department of local government finance may take an
action that is the subject of an appeal only after conducting a
public hearing on the appeal. The department of local government
finance may merge the proceedings concerning an appeal with any
other public hearing conducted by the department of local
government finance in the county from which the appeal was filed.
Sec. 21. The department of local government finance may, at
any time, increase the taxes imposed for a taxing unit for the
following reasons:
(1) To pay the principal or interest upon a funding, refunding,
or judgment funding obligation of a taxing unit.
(2) To pay the interest or principal upon an outstanding
obligation of the taxing unit.
(3) To pay a judgment rendered against the taxing unit.
(4) To pay lease rentals that have become an obligation of the
taxing unit under IC 21-5-11 or IC 21-5-12.
Sec. 22. The department of local government finance may
increase a taxing unit's taxes to raise sufficient money to pay for
the amount of an excessive levy appeal or other appeal under
IC 6-1.1-19 that exceeds the taxing unit's tax limits.
Sec. 23. The department of local government finance may
increase, decrease, or otherwise revise a tax to correct an error in
data, computations, or advertisements.
Sec. 24. The department of local government finance may
decrease or otherwise revise a tax to enforce the taxing unit's tax
limits.
Sec. 25. The department of local government finance may
increase or otherwise revise a tax to eliminate the effects of
imposing or increasing a tax after January 1 of a year.
Sec. 26. If the department of local government finance increases,
decreases, or otherwise revises a taxing unit's taxes, the
department of local government finance must revise the taxing
unit's budget in the manner provided in IC 6-1.1-17-16.
Sec. 27. The department of local government finance shall
certify a taxing unit's tax levies and tax rates for a year to:
(1) the affected taxing unit;
to exceed the shortfall.
Sec. 32. The department of local government finance shall
certify an order under section 31 of this chapter to:
(1) the affected taxing unit;
(2) the county fiscal officer for the county where tax must be
raised;
(3) the department of state revenue; and
(4) the auditor of state.
Sec. 33. If the department of local government finance orders an
increase in a tax rate under section 31 of this chapter order, the
department of local government finance may order the increase to
begin on the first day of any month that is at least thirty (30) days
after the department of local government finance certifies the new
tax rate to the department of state revenue.
Sec. 34. The procedures in IC 6-1.1-17-16 concerning a budget
reduction apply to a budget reduction order under section 31 of
this chapter.
Sec. 35. Not later than fifteen (15) days after a county fiscal
officer receives certified tax rates and levies under this chapter, the
county fiscal officer shall publish under IC 5-3-1 the following
information:
(1) A description of the tax area to which the certification
applies.
(2) The certified tax levy for each fund covered by the
certification.
(3) The tax rate for each tax covered by the certification.
(4) The total tax rate certified for a taxing unit covered by the
certification.
(5) The total tax rate for all taxing units in the taxing unit's
tax area.
The county fiscal officer may combine the information for more
than one (1) taxing unit in the same publication.
Sec. 36. Except as otherwise ordered by the department of local
government finance, a tax rate certified under this chapter takes
effect on the later of the following:
(1) The first day of the month that is at least thirty (30) days
after the department of local government finance certifies the
tax rate to the department of state revenue.
(2) January 1 following the year in which the tax rate is
adopted.
Chapter 10. Distribution of Tax Revenue
Sec. 1. The auditor of state shall distribute in a year to each
taxing unit an amount equal to the amount of tax revenue that the
department of local finance certifies for use to fund the taxing
unit's budget for the year.
Sec. 2. The auditor of state shall distribute as required by law
any tax revenue that is:
(1) distributed to an allocation area; or
(2) used as increment tax revenue.
Sec. 3. Distributions under this chapter must be made from the
state general fund.
Sec. 4. Subject to this chapter, the auditor of state shall make
the distribution in eleven (11) equal monthly installments
beginning in February of the year for which the certification is
made. However, if the department of local government finance
adjusts the amount to be distributed after February of a particular
year, the auditor of state shall increase or decrease the distribution
amount equally in each remaining month in the year to reflect the
adjustment.
Sec. 5. (a) This section applies if:
(1) a taxing unit's legislative body adopts a resolution
authorizing the distribution of part of the taxing unit's taxes
to an assignee of the taxing unit; and
(2) the assignment is permitted by law.
(b) The auditor of state shall reduce the amount of a distribution
made to a taxing unit by the amount that the taxing unit directs the
auditor of state to distribute to an assignee of the taxing unit.
(c) A distribution under this section must be made to the
assignee designated in the resolution at the assignee's last known
address, as submitted to the auditor of state by the executive of the
taxing unit before the cutoff date specified by the auditor of state
or as otherwise determined by law.
(d) A distribution under this section may be made not more than
one (1) time each month. The distribution may be made only in the
months specified in the resolution. The distribution for a month
may not exceed the amount that the taxing unit would otherwise be
entitled to receive as a distribution in the month, after deducting
all other distribution assignments.
Sec. 6. The amount necessary to make the distributions required
by this chapter is annually appropriated from the state general
fund.
Chapter 11. Local Income for Education Excess Fund
Sec. 1. The local income for education excess fund is established.
The excess fund shall be administered by the auditor of state.
replace the revenue lost as a result of the reduction in taxes.
(d) Excess revenue distributed to a taxing unit under this section
may be used for any lawful purpose of the taxing unit. The excess
revenue shall be treated as miscellaneous revenue and may not be
considered in computing the maximum taxes that may be levied by
the taxing unit.
Sec. 8. A distribution to a taxing unit under this article may not
be withheld on the grounds that an inadequate amount exists in the
excess fund or in a taxing unit's account in the excess fund. If
insufficient money exists in the excess fund or in an account in the
excess fund to reimburse the state general fund for all distributions
made in a year, the state general fund shall be reimbursed in
subsequent years as money becomes available.
Sec. 9. A transfer of money to the state general fund under
section 6 of this chapter may be made even if an inadequate
amount exists in a particular taxing unit's account in the excess
fund. If insufficient money exists in an account in the excess fund
to reimburse the state general fund for all distributions made in a
year:
(1) an advance to the general fund may be made from any
other account in the excess fund; or
(2) the general fund may be reimbursed as money becomes
available.
The amount of any advance made from an account shall be
replaced as money becomes available.
Sec. 10. The amount necessary to make the transfers and
distributions from the excess fund permitted by this chapter is
annually appropriated from the excess fund.
Chapter 12. Bonds
Sec. 1. Notwithstanding any other law, if a taxing unit desires to
issue obligations or enter into leases, payable wholly or in part
from taxes, the obligations of the taxing unit or any lessor may be
sold at public sale in accordance with IC 5-1-11 or at negotiated
sale.
Sec. 2. A pledge of tax revenues under this article is enforceable
in accordance with IC 5-1-14.
Sec. 3. With respect to obligations for which a pledge has been
made under this article, the general assembly covenants with the
taxing unit and the purchasers or owners of those obligations that
this article will not be repealed or amended in any manner that will
adversely affect the tax collected under this article as long as the
principal of or interest on those obligations is unpaid.
temporary excessive levy appeals and any other temporary
adjustments made to the levy for the calendar year; by
(B) the assessed value growth quotient determined under
subsection (c) STEP FOUR; plus
(2) in 2006 and 2007, the amount determined under subsection
(d).
(c) For purposes of subsection (b), the assessed value growth
quotient is the amount determined under STEP FOUR of the following
formula:
STEP ONE: For each of the six (6) calendar years immediately
preceding the year in which a budget is adopted under
IC 6-1.1-17-5 or IC 6-1.1-17-5.6 for part or all of the ensuing
calendar year, divide the Indiana nonfarm personal income for the
calendar year by the Indiana nonfarm personal income for the
calendar year immediately preceding that calendar year, rounding
to the nearest one-thousandth (0.001).
STEP TWO: Determine the sum of the STEP ONE results.
STEP THREE: Divide the STEP TWO result by six (6), rounding
to the nearest one-thousandth (0.001).
STEP FOUR: Determine the lesser of the following:
(A) The STEP THREE quotient.
(B) One and six-hundredths (1.06).
If the amount levied in a particular year exceeds the amount necessary
to cover the costs payable from the fund, the levy in the following year
shall be reduced by the amount of surplus money.
(d) As used in this subsection, "last state transportation distribution"
means the total amount of state funding received by a school
corporation for transportation costs:
(1) under IC 21-3-3.1-1 through IC 21-3-3.1-3; and
(2) for special education and vocational programs under
IC 21-3-3.1-4;
after June 30, 2003, and before July 1, 2004;
multiplied by two (2). To the extent that the amount determined under
subsection (b)(1) has not been adjusted to reflect the termination of
state distributions for the school corporation's transportation fund, as
determined by the department of local government finance, a school
corporation may increase its school transportation fund levy for 2006
above the amount determined under subsection (b)(1) by fifty percent
(50%) of the school corporation's last state transportation distribution,
and the school corporation may increase its school transportation fund
levy for 2007 above the amount determined under subsection (b)(1) by
the remaining fifty percent (50%) of the school corporation's last state
transportation distribution. The amount of the additional levy imposed
in a year under this subsection shall be treated, for purposes of applying
subsection (b)(1) in the following year, as part of the school
corporation's levy for the school transportation fund for the previous
year.
(e) Each school corporation may levy for the calendar year a local
income for education tax for the school bus replacement fund in
accordance with the school bus acquisition plan adopted under section
3.1 of this chapter.
(f) The tax rate and levy for each fund shall be established as a part
of the annual budget for the calendar year in accord with IC 6-1.1-17.
subsection may, for property taxes first due and payable after 2005,
2006, levy an additional amount local income for education tax rate
for the referendum tax levy fund that does not exceed the amount of the
excess tax levy added to the school corporation's base tax levy before
2002.
(d) The power of the school corporation to impose the levy
transferred to the referendum tax levy fund under this section expires
on December 31, 2012, unless:
(1) the school corporation adopts a resolution to reimpose or
extend the local income for education referendum tax levy; and
(2) the local income for education referendum tax levy is
approved, before January 1, 2013, by a majority of the individuals
who vote in a referendum that is conducted in accordance with
the requirements in IC 6-1.1-19-4.5(c).
As soon as practicable after adopting the resolution under subdivision
(1), the school corporation shall send a certified copy of the resolution
to the county auditor and the department of local government finance.
Upon receipt of the certified resolution, the tax control board shall
proceed in the same manner as the tax control board would for any
other local income for education referendum tax levy being reimposed
or extended under IC 6-1.1-19-4.5(c). However, if requested by the
school corporation in the resolution adopted under subdivision (1), the
question of reimposing or extending a referendum local income for
education tax levy transferred to the referendum tax levy fund under
this section may be combined with a question presented to the voters
to reimpose or extend a referendum tax levy initially imposed after
2001. A referendum tax levy reimposed or extended under this
subsection shall be treated for all purposes as a local income for
education referendum tax levy reimposed or extended under
IC 6-1.1-19-4.5(c).
(e) The school corporation's referendum tax levy under subsection
(c) 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 local
income for education tax levy under IC 6-1.1-19 and IC 21-3-1.7.
hundredths cents ($0.4167) on each one hundred dollars ($100) of
assessed valuation of the lesser of:
(1) five thousand seven hundred seventy-three ten
thousandths percent (0.5773%) within the school corporation;
or
(2) the product of:
(A) the maximum property tax rate permitted in the school
corporation under this section (before January 1, 2007)
after adjustments for reassessment, as stated as a tax rate
per one hundred dollars ($100) of assessed valuation;
multiplied by
(B) two and three thousand six hundred seventy-five ten
thousandths (2.3675).
The tax rate must be stated as a percentage. This actual rate must be
advertised in the same manner as other property tax rates.
(b) The maximum property tax rate levied by each school
corporation must be adjusted each time a general reassessment of
property takes effect. The adjusted property tax rate becomes the new
maximum property tax rate for the levy for property taxes first due and
payable in each year:
(1) after the general reassessment for which the adjustment was
made takes effect; and
(2) before the next general reassessment takes effect.
(c) The new maximum rate under this section is the tax rate
determined under STEP SEVEN of the following formula:
STEP ONE: Determine the maximum rate for the school
corporation for the year preceding the year in which the general
reassessment takes effect.
STEP TWO: Determine the actual percentage increase (rounded
to the nearest one-hundredth percent (0.01%)) in the assessed
value of the taxable property from the year preceding the year the
general reassessment takes effect to the year that the general
reassessment is effective.
STEP THREE: Determine the three (3) calendar years that
immediately precede the ensuing calendar year and in which a
statewide general reassessment of real property does not first
become effective.
STEP FOUR: Compute separately, for each of the calendar years
determined in STEP THREE, the actual percentage increase
(rounded to the nearest one-hundredth percent (0.01%)) in the
assessed value of the taxable property from the preceding year.
STEP FIVE: Divide the sum of the three (3) quotients computed
in STEP FOUR by three (3).
STEP SIX: Determine the greater of the following:
(A) Zero (0).
(B) The result of the STEP TWO percentage minus the STEP
FIVE percentage.
STEP SEVEN: Determine the quotient of the STEP ONE tax rate
divided by the sum of one (1) plus the STEP SIX percentage
increase.
(d) (b) The department of local government finance shall compute
the maximum rate allowed under subsection (c) (a), after review of
the recommendation of the budget agency, and provide the rate to
each school corporation.
(e) (c) For a year in which a school corporation uses money from the
school corporation's capital projects fund to pay for costs described in
section 4(l) of this chapter, the school corporation may impose a
property local income for education tax rate that exceeds the rate
described in subsection (a). The amount by which the property tax rate
may exceed the rate described in subsection (a) equals the amount
determined under STEP THREE TWO of the following formula:
STEP ONE: Determine the school corporation's expenditures
under section 4(l) of this chapter for the calendar year.
STEP TWO: Determine the quotient of:
(A) the STEP ONE amount; divided by
(B) the adjusted gross income (as defined in IC 6-10-2-4) of
taxpayers in the tax area (as defined in IC 6-10-2-15) for
the school corporation's assessed valuation corporation for
the year.
STEP THREE: Determine the product of:
(A) the STEP TWO amount; multiplied by
(B) one hundred (100).
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2007]: Sec. 11. As used in this article,
"tax area" has the meaning set forth in IC 6-10-2-15.
SECTION 199, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2007]: Sec. 8.2. (a) Notwithstanding
IC 21-3-1.6 and subject to section 9 of this chapter, the state
distribution for a calendar year for tuition support for basic programs
for each school corporation equals the result determined using the
following formula:
STEP ONE: For a:
(A) school corporation not described in clause (B), determine
the school corporation's result under STEP SEVEN of section
6.7(c) of this chapter for the calendar year; and
(B) school corporation that has target revenue per adjusted
ADM for a calendar year that is equal to the amount under
section 6.7(c) STEP ONE of this chapter, determine the sum
of:
(i) the school corporation's result under section 6.7(c) STEP
ONE of this chapter for the calendar year multiplied by the
school corporation's adjusted ADM for the current year; plus
(ii) the amount of the annual decrease in federal aid to
impacted areas from the year preceding the ensuing calendar
year by three (3) years to the year preceding the ensuing
calendar year by two (2) years; plus
(iii) the part of the maximum general fund local income for
education tax levy for the year that equals the original
amount of the levy imposed by the school corporation to
cover the costs of opening a new school facility or reopening
an existing facility during the preceding year.
STEP TWO: This STEP applies to a school corporation that is not
a charter school. Determine the sum of:
(A) the school corporation's tuition support levy; plus
(B) the school corporation's excise tax revenue for the year
that precedes the current year by one (1) year.
STEP THREE: This STEP applies to a charter school. Determine
the product of:
(A) the amount determined under section 6.7(c) STEP SEVEN
of this chapter for the charter school; multiplied by
(B) thirty-five hundredths (0.35).
STEP FOUR: Determine the difference between:
(A) the STEP ONE amount; minus
(B) the STEP TWO or STEP THREE amount, as applicable.
(b) If the state tuition support determined for a school corporation
under this section is negative, the school corporation is not entitled to
any state tuition support. In addition, the school corporation's
maximum general fund local income for education tax levy under
IC 6-1.1-19-1.5 shall be reduced by the amount of the negative result.
appropriation in any year is less than necessary to fund the
distribution, the appropriation shall be proportionately reduced to
eliminate the difference between the amount appropriated and the
amount necessary to fund the distribution.
Sec. 7. The amount of a distribution under this chapter shall be
distributed to the school corporations and charter schools during
the month of July in each year. Warrants shall be issued to the
state treasurer ordering the distribution to the respective school
corporations from the state general fund.
Sec. 8. (a) Each school corporation shall use the distribution
under this chapter in the following manner:
(1) The school corporation, if it has debt service, shall use the
distribution to reduce the local income for education tax rate
imposed to pay debt service.
(2) The school corporation may use for the capital projects
fund or current operating expense any remaining amount in
the distribution after subtracting the amount used under
subdivision (1).
(b) The budgets of the various school corporations must reflect
the anticipated receipts from the state adjusted ADM flat grant
distribution. Appropriations shall be made as other appropriations
are made.
Sec. 9. A charter school may use the amount of a distribution for
any operating or capital educational purpose.
school corporation to impose an ad valorem property tax for school
purposes is terminated on December 31, 2006. This subsection does
not apply to property taxes that a school corporation is permitted
by law to impose for nonschool purposes, such as property taxes
for historic societies and art associations.
(b) Except as provided in IC 21-2-4-3, as amended by this act,
any reference in a law, rule, or agreement to a property tax,
property tax levy, or property tax rate imposed under IC 6-1.1-19,
IC 20, or IC 21 shall be treated for taxes imposed after December
31, 2006, as a reference to a local income for education tax, local
income for education tax levy, or local income for education tax
rate imposed under IC 6-10, as added by this act. This subsection
shall be construed to apply IC 6-1.1-20 to controlled projects that
will be funded in any part by local income for education taxes
imposed under IC 6-10, as added by this act.
(c) The preparation of local income for education tax levies and
tax rates for 2007 shall be imposed in 2006 using the procedures in
IC 6-10, as added by this act. The part of a school corporation's
2007 budget funded by a local income for education tax levy is
subject to IC 6-1.1-17 and IC 6-1.1-19 to the same extent as if the
budget were funded by property taxes. If the local income for
education tax rate raises more revenue than is necessary to fund
the budget as finally certified by the department of local
government finance under IC 6-1.1-17-16, the surplus shall be used
to reduce local income for education tax rates in 2008.
(d) Any reference in a law, rule, or agreement to an average
daily attendance flat grant shall be treated after December 31,
2006, as a reference to the ADM flat grant.
(e) The legislative council shall provide for the preparation of
legislation for introduction in the 2007 session to bring the laws
into conformity with this SECTION.
(f) 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 this act. A
temporary rule adopted under this subsection expires on the
earliest of the following:
(1) The date that the department of local government finance
adopts another temporary rule under this subsection 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) December 31, 2008.
(g) The department of education may adopt temporary rules in
the manner provided for the adoption of emergency rules under
IC 4-22-2-37.1 to implement this act. A temporary rule adopted
under this subsection expires on the earliest of the following:
(1) The date that the department of education adopts another
temporary rule under this subsection that repeals, amends, or
supersedes the previously adopted temporary rule.
(2) The date that the department of education 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) December 31, 2008.
(h) The appropriation to the property tax replacement fund
board in P.L.246-2005 for distributions under IC 6-1.1-21 for the
state fiscal year beginning July 1, 2006, and ending June 30, 2007,
is reduced by one billion six hundred sixty-seven million dollars
($1,667,000,000). The reduction shall be applied fifty percent
(50%) to the appropriation from the general fund and fifty percent
(50%) to the appropriation payable from the property tax
replacement fund.