Citations Affected: IC 6-1.1; IC 20-23-1-6.
Synopsis: Property tax liability for various taxpayers. Provides that the
property tax deduction for surviving spouses of World War I veterans
also applies to surviving spouses of veterans of World War II and the
Korean War. Freezes the property tax liability attributable to the first
$100,000 assessed value of the homestead of a person eligible for full
Social Security benefits. Prohibits, for the purpose of raising revenue
for purposes that serve only a county school corporation and not other
school corporations in the county, the county school corporation from
levying property taxes in the territory of the other school corporations.
Effective: Upon passage.
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.
fiscal officer of each political subdivision of the county and the
department of local government finance. The statement shall contain:
(1) information concerning the assessed valuation in the political
subdivision for the next calendar year;
(2) an estimate of the taxes to be distributed to the political
subdivision during the last six (6) months of the current calendar
year;
(3) the current assessed valuation as shown on the abstract of
charges;
(4) the average growth in assessed valuation in the political
subdivision over the preceding three (3) budget years, excluding
years in which a general reassessment occurs, determined
according to procedures established by the department of local
government finance; and
(5) the total of all property taxes first due and payable to the
political subdivision in the current calendar year described in
IC 6-1.1-20.3-5(b) STEP TWO;
(6) the total for each political subdivision of the remainder of:
(A) the product of:
(i) the number of qualified properties (as defined in
IC 6-1.1-20.3-4) in the political subdivision in the current
calendar year; multiplied by
(ii) one hundred thousand dollars ($100,000); minus
(B) the total amount of deductions apportioned for
qualified properties (as defined in IC 6-1.1-20.3-4) in the
political subdivision in the current calendar year under
IC 6-1.1-20.3-5(c)(1)(B); and
(5) (7) any other information at the disposal of the county auditor
that might affect the assessed value used in the budget adoption
process.
(b) The estimate of taxes to be distributed shall be based on:
(1) the abstract of taxes levied and collectible for the current
calendar year, less any taxes previously distributed for the
calendar year; and
(2) any other information at the disposal of the county auditor
which might affect the estimate.
(c) The fiscal officer of each political subdivision shall present the
county auditor's statement to the proper officers of the political
subdivision.
subdivision shall formulate its estimated budget and its proposed tax
rate and tax levy on the form prescribed by the department of local
government finance and approved by the state board of accounts. The
formulation of the tax rate is subject to IC 6-1.1-20.3-9. The
political subdivision shall give notice by publication to taxpayers of:
(1) the estimated budget;
(2) the estimated maximum permissible levy;
(3) the current and proposed tax levies of each fund; and
(4) the amounts of excessive levy appeals to be requested.
In the notice, the political subdivision shall also state the time and
place at which a public hearing will be held on these items. The notice
shall be published twice in accordance with IC 5-3-1 with the first
publication at least ten (10) days before the date fixed for the public
hearing.
(b) The board of directors of a solid waste management district
established under IC 13-21 or IC 13-9.5-2 (before its repeal) may
conduct the public hearing required under subsection (a):
(1) in any county of the solid waste management district; and
(2) in accordance with the annual notice of meetings published
under IC 13-21-5-2.
(c) The trustee of each township in the county shall estimate the
amount necessary to meet the cost of township assistance in the
township for the ensuing calendar year. The township board shall adopt
with the township budget a tax rate sufficient to meet the estimated cost
of township assistance. The taxes collected as a result of the tax rate
adopted under this subsection are credited to the township assistance
fund.
(d) A county shall adopt with the county budget and the department
of local government finance shall certify under section 16 of this
chapter a tax rate sufficient to raise the levy necessary to pay the
following:
(1) The cost of child services (as defined in IC 12-19-7-1) of the
county payable from the family and children's fund.
(2) The cost of children's psychiatric residential treatment
services (as defined in IC 12-19-7.5-1) of the county payable from
the children's psychiatric residential treatment services fund.
A budget, tax rate, or tax levy adopted by a county fiscal body or
approved or modified by a county board of tax adjustment that is less
than the levy necessary to pay the costs described in subdivision (1) or
(2) shall not be treated as a final budget, tax rate, or tax levy under
section 11 of this chapter.
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 6. (a) The county
board of tax adjustment shall review the budget, tax rate, and tax levy
of each political subdivision filed with the county auditor under section
5 or 5.6 of this chapter. The formulation of the tax rate is subject to
IC 6-1.1-20.3-9. The board shall revise or reduce, but not increase, any
budget, tax rate, or tax levy in order:
(1) to limit the tax rate to the maximum amount permitted under
IC 6-1.1-18; and
(2) to limit the budget to the amount of revenue to be available in
the ensuing budget year for the political subdivision.
(b) The county board of tax adjustment shall make a revision or
reduction in a political subdivision's budget only with respect to the
total amounts budgeted for each office or department within each of the
major budget classifications prescribed by the state board of accounts.
(c) When the county board of tax adjustment makes a revision or
reduction in a budget, tax rate, or tax levy, it shall file with the county
auditor a written order which indicates the action taken. If the board
reduces the budget, it shall also indicate the reason for the reduction in
the order. The chairman of the county board shall sign the order.
before the date fixed for a public hearing, the department of local
government finance shall give notice of the time and place of the
hearing and of the budgets by fund, levies, and tax rates to be
considered at the hearing. The department of local government finance
shall publish the notice in two (2) newspapers of general circulation
published in the county. However, if only one (1) newspaper of general
circulation is published in the county, the department of local
government finance shall publish the notice in that newspaper.
(d) Except as provided in subsection (i), IC 6-1.1-19, or
IC 6-1.1-18.5, the department of local government finance may not
increase a political subdivision's budget by fund, tax rate, or tax levy to
an amount which exceeds the amount originally fixed by the political
subdivision. The department of local government finance shall give the
political subdivision written notification specifying any revision,
reduction, or increase the department proposes in a political
subdivision's tax levy or tax rate. The political subdivision has one (1)
week from the date the political subdivision receives the notice to
provide a written response to the department of local government
finance's Indianapolis office specifying how to make the required
reductions in the amount budgeted by fund. The department of local
government finance shall make reductions as specified in the political
subdivision's response if the response is provided as required by this
subsection and sufficiently specifies all necessary reductions. The
department of local government finance may make a revision, a
reduction, or an increase in a political subdivision's budget only by
fund.
(e) The department of local government finance may not approve a
levy for lease payments by a city, town, county, library, or school
corporation if the lease payments are payable to a building corporation
for use by the building corporation for debt service on bonds and if:
(1) no bonds of the building corporation are outstanding; or
(2) the building corporation has enough legally available funds on
hand to redeem all outstanding bonds payable from the particular
lease rental levy requested.
(f) The department of local government finance shall certify its
action to:
(1) the county auditor;
(2) the political subdivision if the department acts pursuant to an
appeal initiated by the political subdivision;
(3) the first ten (10) taxpayers whose names appear on a petition
filed under section 13 of this chapter; and
(4) a taxpayer that owns property that represents at least ten
percent (10%) of the taxable assessed valuation in the political
subdivision.
(g) The following may petition for judicial review of the final
determination of the department of local government finance under
subsection (f):
(1) If the department acts under an appeal initiated by a political
subdivision, the political subdivision.
(2) If the department acts under an appeal initiated by taxpayers
under section 13 of this chapter, a taxpayer who signed the
petition under that section.
(3) If the department acts under an appeal initiated by the county
auditor under section 14 of this chapter, the county auditor.
(4) A taxpayer that owns property that represents at least ten
percent (10%) of the taxable assessed valuation in the political
subdivision.
The petition must be filed in the tax court not more than forty-five (45)
days after the department certifies its action under subsection (f).
(h) The department of local government finance is expressly
directed to complete the duties assigned to it under this section not later
than February 15th of each year for taxes to be collected during that
year.
(i) Subject to the provisions of all applicable statutes, the
department of local government finance may increase a political
subdivision's tax levy to an amount that exceeds the amount originally
fixed by the political subdivision if the increase is:
(1) requested in writing by the officers of the political
subdivision;
(2) either:
(A) based on information first obtained by the political
subdivision after the public hearing under section 3 of this
chapter; or
(B) results from an inadvertent mathematical error made in
determining the levy; and
(3) published by the political subdivision according to a notice
provided by the department.
(j) The department of local government finance shall annually
review the budget by fund of each school corporation not later than
April 1. The department of local government finance shall give the
school corporation written notification specifying any revision,
reduction, or increase the department proposes in the school
corporation's budget by fund. A public hearing is not required in
connection with this review of the budget.
property taxes first due and payable in a calendar year with
respect to a qualified property is the amount determined under
STEP THREE of the following formula:
STEP ONE: Subject to subsection (c), determine the amount
of property tax liability for property taxes first due and
payable in that calendar year that is:
(A) based on the property tax rate for the taxing district in
which the qualified property is located; and
(B) attributable to the part of the gross assessed valuation
of the qualified property for the assessment date in the
immediately preceding calendar year that exceeds one
hundred thousand dollars ($100,000).
STEP TWO: Subject to subsection (c), determine the amount
of the qualified individual's property tax liability, for
property taxes first due and payable in the earlier of the
earliest calendar year in which the qualified individual was
eligible for determination of property tax liability on the
qualified property under this section or the immediately
preceding calendar year, that is attributable to the amount of
the gross assessed valuation of the qualified property that
equals the lesser of:
(A) the gross assessed valuation of the qualified property;
or
(B) one hundred thousand dollars ($100,000).
STEP THREE: Determine the sum of the amounts determined
under STEP ONE and STEP TWO.
(c) For purposes of determining the property tax liability under
subsection (b), all property tax deductions and credits are
apportioned based on the relative proportions of:
(1) the amount of gross assessed valuation of the qualified
property that:
(A) for purposes of subsection (b) STEP ONE, equals one
hundred thousand dollars ($100,000); or
(B) for purposes of subsection (b) STEP TWO, equals the
lesser of:
(i) the gross assessed valuation of the qualified property;
or
(ii) one hundred thousand dollars ($100,000); and
(2) the amount of gross assessed valuation of the qualified
property that exceeds the amount of gross assessed valuation
referred to in subdivision (1).
(d) For purposes of this section, if real property, a mobile home,
or a manufactured home is owned by a husband and wife as
tenants by the entirety, the determination of property tax liability
under this section applies if either spouse satisfies the requirements
of section 3 of this chapter.
(e) The part of the property tax liability for a qualified property
determined under subsection (b) STEP TWO for property taxes
first due and payable in a calendar year is considered for all
purposes to be property taxes imposed by the state or a political
subdivision in which the qualified property is located. The amount
of that property tax liability attributable to the state or a political
subdivision is the amount that bears the same proportion to that
property tax liability that the property tax rate of the state or
political subdivision bears to the property tax rate for the taxing
district in which the qualified property is located.
Sec. 6. (a) An individual who desires to have the individual's
property tax liability determined under this chapter must file a
certified statement in duplicate, on forms prescribed by the
department of local government finance, with the auditor of the
county in which the qualified property is located. The statement
must include the parcel number or key number of the real estate
and the name of the city, town, or township in which the real estate
is located. With respect to real property, the statement must be
filed during the twelve (12) months before May 11 of the year
before the first year for which the individual wishes to have the
individual's property tax liability determined under this chapter.
With respect to a mobile home that is not assessed as real property
or a manufactured home that is not assessed as real property, the
statement must be filed during the twelve (12) months before
March 2 of the first year for which the individual wishes to have
the individual's property tax liability determined under this
chapter. The statement may be filed in person or by mail. If
mailed, the statement must be postmarked on or before the last day
for filing. The statement applies for that first year and any
succeeding year for which the individual qualifies to have the
individual's property tax liability determined under this chapter.
(b) The statement referred to in subsection (a) must:
(1) be verified under penalties for perjury; and
(2) contain the following information:
(A) The full name and complete residence address of the
person.
(B) Evidence that the individual is a qualified individual.
(C) If the person is not the sole legal or equitable owner of
the real property, mobile home, or manufactured home,
the exact share of the person's interest in the property.
(D) Any other information that the department of local
government finance requires to be included in the
statement.
Sec. 7. If a qualified individual whose property tax liability is
determined under this chapter changes the use of the qualified
individual's property so that part or all of that property no longer
qualifies for the determination of property tax liability under this
chapter, the qualified individual must file a certified statement
with the auditor of the county, notifying the auditor of the change
of use not later than sixty (60) days after the date of that change.
Sec. 8. A taxpayer other than a qualified individual is entitled to
the determination of property tax liability under this chapter if:
(1) an individual uses the residence as the individual's
principal place of residence;
(2) the individual has a beneficial interest in the taxpayer;
(3) the taxpayer either owns the residence or is buying it
under a contract, recorded in the county recorder's office,
that provides that the individual is to pay the property taxes
on the residence; and
(4) the residence consists of a single family dwelling and the
real estate, not exceeding one (1) acre, that immediately
surrounds that dwelling.
Sec. 9. The property tax rate of a political subdivision in which
one (1) or more qualified properties are located is determined for
property taxes first due and payable in a calendar year in the
amount calculated to result in a levy in the amount of the
remainder of:
(1) the levy of the political subdivision for that year
determined without regard to this chapter; minus
(2) the total for all qualified properties in the political
subdivision of the amounts of property tax liability for that
year determined under section 5(b) STEP TWO of this
chapter.
Sec. 10. For property taxes first due and payable in each
calendar year, the amount of assessed valuation referred to in
IC 6-1.1-17-1(a)(6) for a political subdivision is excluded from the
assessed valuation that:
(1) would be determined without regard to this section; and
(2) is used to set the tax rate for the political subdivision.
7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON
PASSAGE]: Sec. 6. (a) The township trustees of each township of each
county shall perform all the civil functions performed before March 13,
1947, by the township trustees. The township trustees of the county
constitute a county board of education to manage the affairs of the
county school corporation created under this chapter in each county.
(b) School cities and school towns retain independent organization
and administration unless abandoned as provided by law. The county
school corporation includes all areas not organized on March 13, 1947,
into jurisdictions controlled and governed as school cities or school
towns.
(c) The board shall meet:
(1) at the time the board designates at the office of the county
superintendent; and
(2) at other times and places the county superintendent considers
necessary.
(d) At the first meeting of each year, to be held on the first
Wednesday after the first Monday in January, the board shall organize
by selecting a president, a vice president, a secretary, and a treasurer
from its membership.
(e) The county superintendent shall call the board into special
session. Unless the board elects to have this section remain inoperative,
the board shall organize itself. The failure of the county superintendent
to call the board into session under this section may not be construed
to mean that a county school corporation described in this section is in
existence in the county, and a county school corporation may not be
brought into existence until the board has met in special session after
March 13, 1947, and has taken action to organize itself into a county
school corporation, after consideration of the question of whether it
should elect to have the provisions of this section remain inoperative.
The organization, if affected, must be:
(1) filed with the county auditor; and
(2) published by the county auditor in two (2) newspapers of
different political persuasions of general circulation throughout
the county within ten (10) days after the filing.
The organization is considered to fulfill the requirements of this section
for the transacting of public business under this section. The secretary
of the board shall keep an accurate record of the minutes of the board,
which shall be kept at the county superintendent's office. The county
superintendent shall act as administrator of the board and shall carry
out such acts and duties as shall be designated by the board. A quorum
consists of two-thirds (2/3) of the members of the board.
possession of the treasurer at any one (1) time conditioned as an
ordinary official bond, with a reliable surety company or at least two
(2) sufficient freehold sureties, who may not be members of the board,
as surety or sureties on the treasurer's bond.
(k) The president and secretary shall each give bond, with a surety
or sureties described in subsection (j), to be approved by the county
auditor, in the sum of one-fourth (1/4) of the amount required of the
treasurer under subsection (j). A board may purchase bonds from a
reliable surety company and pay for them out of the special school
revenue of the board's county.
(l) The powers set forth in this section may not be considered or
construed to limit the authority of a board to the powers expressly
conferred in this section or to restrict or modify any authority granted
by any other law not in conflict with this section.
(m) A board may annually levy the amount of taxes that in the
judgment of the board, made a matter of record in the board's minutes,
is necessary to produce income sufficient to conduct and carry on the
common schools committed to the board.
(n) For the purpose of producing income for purposes that:
(1) serve the county school corporation; and
(2) do not serve the school corporations in the county that are
not county school corporations;
the board may levy taxes under subsection (m) only on taxable
property in the part of the territory of the county that excludes the
territory of each school corporation in the county that is not a
county school corporation.
(n) (o) A board shall annually levy a sum sufficient to meet all
payments of principal and interest as they mature in the year for which
the levy is made on the bonds, notes, or other obligations of the board.
The board may impose tax levies within statutory limits, and the levies
are subject to:
(1) the same review as school city and school town levies; and
(2) the restriction in subsection (n).