Citations Affected: IC 6-1.1; noncode.
Synopsis: Property taxes. Permits a county to provide a property tax
replacement credit against county property tax levies to taxpayers in
certain taxing districts in which the assessed valuation subject to
property tax exemption is proportionally greater than the average
assessed valuation (weighted for the relative taxable assessed value)
subject to exemption in other taxing districts in the county. Specifies
that a property tax replacement credit may be provided only in counties
in which the percentage of assessed valuation subject to exemption for
at least one taxing district is at least 20% greater than the county
average. Imposes a property tax levy to replace the revenue lost due to
the credit in each taxing district in which the assessed valuation subject
to exemption is proportionally less than the average assessed valuation
subject to exemption in other taxing districts in the county. Specifies
that the property taxes imposed to replace the lost revenue are not
subject to the property tax levy limits.
Effective: July 1, 2009.
January 15, 2009, read first time and referred to Committee on Appropriations.
February 19, 2009, amended, reported favorably _ Do Pass.
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
according to procedures established by the department of local
government finance;
(5) the amount of the political subdivision's assessed valuation
reduction determined under section 0.5(d) of this chapter;
(6) for counties with taxing units that cross into or intersect with
other counties, the assessed valuation as shown on the most
current abstract of property; and
(7) the county auditor's determinations under IC 6-1.1-46-3;
and
(7) (8) 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.
(d) Subject to subsection (e) and except as provided in subsection
(f), after the county auditor sends a certified statement under subsection
(a) or an amended certified statement under this subsection with
respect to a political subdivision and before the department of local
government finance certifies its action with respect to the political
subdivision under section 16(f) of this chapter, the county auditor may
amend the information concerning assessed valuation included in the
earlier certified statement. The county auditor shall send a certified
statement amended under this subsection, under the seal of the board
of county commissioners, to:
(1) the fiscal officer of each political subdivision affected by the
amendment; and
(2) the department of local government finance.
(e) Except as provided in subsection (g), before the county auditor
makes an amendment under subsection (d), the county auditor must
provide an opportunity for public comment on the proposed
amendment at a public hearing. The county auditor must give notice of
the hearing under IC 5-3-1. If the county auditor makes the amendment
as a result of information provided to the county auditor by an assessor,
the county auditor shall give notice of the public hearing to the
assessor.
due and payable in the preceding calendar year; and
(ii) except as provided in subsection (c), the taxing
district is required to impose a property tax replacement
credit levy under this chapter; or
(C) zero (0), a statement that:
(i) the assessed valuation subject to exemption in the
taxing district for property taxes first due and payable in
the preceding calendar year is proportionally the same
as the average assessed valuation subject to exemption in
the taxing districts in the county for property taxes first
due and payable in the preceding calendar year; and
(ii) the credits granted by this chapter and the levies
imposed by this chapter do not apply to the taxing
district.
(c) Additional property tax replacement credits may not be
provided and a property tax replacement credit levy may not be
imposed under subsection (b) in a county unless the amount
determined in the following STEPS is at least two-tenths (0.2) for
at least one (1) taxing district in the county:
STEP ONE: Determine the result of:
(A) the amount determined for the taxing district under
STEP ONE of subsection (a); divided by
(B) the amount determined for the taxing district under
STEP THREE of subsection (a).
STEP TWO: Determine the result of:
(A) the STEP ONE amount; minus
(B) the amount determined under STEP FIVE of
subsection (a).
Sec. 4. Subject to section 3(c) of this chapter, a taxpayer in a
taxing district in which the assessed valuation subject to exemption
for property taxes first due and payable in the preceding calendar
year is proportionally greater than the average assessed valuation
subject to exemption in the taxing districts in the county for
property taxes first due and payable in the preceding calendar year
is entitled to a credit against the taxpayer's tax liability for county
property tax levies.
Sec. 5. The additional property tax replacement credit to which
a taxpayer is entitled under this chapter is the amount determined
under the following formula:
STEP ONE: Determine the sum of the amounts that are levied
for the calendar year in the county under section 6 of this
chapter, as determined by the department of local
government finance in fixing the county's budget, levy, and
rate for the calendar year under IC 6-1.1-17.
STEP TWO: Determine the assessed valuation subject to
exemption in the taxing district for property taxes first due
and payable in the preceding calendar year.
STEP THREE: Determine the sum of the STEP TWO
amounts for all taxing districts in the county for which the
result in section 3(b) of this chapter is a number greater than
zero (0).
STEP FOUR: Determine the result of the STEP TWO amount
divided by the STEP THREE amount.
STEP FIVE: Multiply the STEP ONE amount by the STEP
FOUR amount.
STEP SIX: Determine the sum of the property tax levies being
imposed by the county for the most recent assessment date in
the taxing district.
STEP SEVEN: Determine the taxpayer's tax liability for the
property tax levies being imposed by the county for the most
recent assessment date in the taxing district.
STEP EIGHT: Determine the result of the STEP SEVEN
amount divided by the STEP SIX amount.
STEP NINE: Multiply the STEP FIVE amount by the STEP
EIGHT amount.
Sec. 6. Subject to section 3(c) of this chapter, a property tax levy
shall be imposed by the county under section 7 of this chapter in a
taxing district in which the assessed valuation subject to exemption
for property taxes first due and payable in the preceding calendar
year is proportionally less than the average assessed valuation
subject to exemption in the taxing districts in the county.
Sec. 7. The amount of the property tax levy to be imposed in a
taxing district under section 6 of this chapter is determined under
the following formula:
STEP ONE: Determine the absolute value of the amount
certified for the taxing district under STEP SEVEN of section
3(a) of this chapter for the most recent assessment date.
STEP TWO: Determine the net assessed valuation in the
taxing district for property taxes first due and payable in the
preceding calendar year.
STEP THREE: Subtract the STEP ONE amount from the
STEP TWO amount.
STEP FOUR: Determine the sum of all property tax levies
imposed by the county in the taxing district for property taxes
first due and payable in the preceding calendar year.
STEP FIVE: Determine the total tax rate that would have
been necessary to raise the STEP FOUR amount in the taxing
district for property taxes first due and payable in the
preceding calendar year if the STEP FOUR amount had been
raised using the assessed valuation amount determined under
STEP THREE.
STEP SIX: Determine the total county tax rate imposed in the
taxing district for property taxes first due and payable in the
preceding calendar year.
STEP SEVEN: Determine the result of:
(A) the STEP FIVE amount; minus
(B) the STEP SIX amount.
STEP EIGHT: Determine the result of:
(A) the STEP SEVEN amount; multiplied by
(B) the STEP TWO amount.
Sec. 8. The tax rate for the levy imposed by the county in a
taxing district is the tax rate necessary to raise the property tax
levy determined under section 7 of this chapter using the assessed
valuation that is actually subject to taxation in the taxing district.
Sec. 9. (a) The property tax levy limits imposed by
IC 6-1.1-18.5-3 do not apply to property taxes imposed under this
chapter.
(b) For purposes of computing the property tax levy limits
imposed on a county by IC 6-1.1-18.5-3, a property tax levy for a
calendar year does not include the part of the county's levy that is
levied under this chapter.
Sec. 10. The department of local government finance shall
certify under IC 6-1.1-17 the property tax levies required under
section 7 of this chapter and the tax rates required under section
8 of this chapter. To comply with this section, the department of
local government finance may certify a property tax levy that
exceeds the amount originally fixed by the county in a taxing
district.
Sec. 11. Proceeds received under this chapter may not be
considered a levy excess under IC 6-1.1-18.5-17.
Sec. 12. (a) A taxing district property tax replacement credit
account is established in the general fund of each county. The
county treasurer shall deposit the amount collected from a
property tax levy imposed under this chapter in the account.
(b) The amount in a taxing district property tax replacement
credit account may be used only to replace property tax revenues
lost as the result of granting property tax replacement credits to
taxpayers with property in taxing districts in which the assessed
valuation subject to exemption for property taxes first due and
payable in the preceding calendar year is proportionally greater
than the average assessed valuation subject to exemption in the
taxing districts in the county.
Sec. 13. The money in the property tax replacement credit
account shall be distributed to the funds of the county as though
the money were property tax collections and in such a manner that
no county fund suffers a net revenue loss due to the allowance of
property tax replacement credit under this chapter. However, if
the money in the taxing district property tax replacement credit
account is insufficient to replace all the revenue lost, the amount
distributed to each county fund shall be reduced proportionally.