Indiana § 20-23-6-12.5 Conditions of consolidation; debt; property tax levies

Indiana Statutes

§ 20-23-6-12.5 — Conditions of consolidation; debt; property tax levies

Indiana § 20-23-6-12.5

Title 20EDUCATION

Art. 23ORGANIZATION OF SCHOOL CORPORATIONS

Ch. 6Consolidation of School Corporations

This text of Indiana § 20-23-6-12.5 (Conditions of consolidation; debt; property tax levies) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ind. Code § 20-23-6-12.5 (2026).

Text

5.

(a)The governing body of two (2) or more school corporations situated in the same or adjoining counties may:

(1)consolidate; or

(2)be required to consolidate under section 5.5 of this chapter; their respective school corporations under the conditions prescribed in this section. A school corporation that consolidates with one (1) or more school corporations as prescribed under this section is considered a subunit of the consolidated school corporation.

(b)A resolution for consolidation under this section must include:

(1)subject to section 3(b) of this chapter, the information required in section 3(a)(1) through 3(a)(4) of this chapter; and

(2)a declaration that debts or obligations paid by a debt service levy under IC 20-40-9 incurred by a subunit before the consolidated school co

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5. (a) The governing body of two (2) or
more school corporations situated in the same or adjoining counties
may:
(1) consolidate; or
(2) be required to consolidate under section 5.5 of this chapter;
their respective school corporations under the conditions prescribed in
this section. A school corporation that consolidates with one (1) or
more school corporations as prescribed under this section is considered
a subunit of the consolidated school corporation.
(b) A resolution for consolidation under this section must include:
(1) subject to section 3(b) of this chapter, the information required
in section 3(a)(1) through 3(a)(4) of this chapter; and
(2) a declaration that debts or obligations paid by a debt service
levy under IC 20-40-9 incurred by a subunit before the
consolidated school corporation comes into existence may be
levied only on the taxpayers of the subunit that initially incurred
the debts or obligations.
(c) A resolution for consolidation under this section may include
any declarations concerning the proposed consolidation that are
otherwise permitted under this chapter, including the following:
(1) A declaration that the name or attendance area of each school
within a subunit may remain unchanged after the date on which
the consolidated school corporation comes into existence.
(2) A declaration that the administrative functions of each subunit
will be consolidated in the proposed consolidated school
corporation.
(d) All debts of the former school corporations shall be assumed and
paid by the new consolidated school corporation. However, a debt
service levy under IC 20-46-7 for debts and obligations incurred by a
school corporation before the date the school corporation consolidates
under this chapter may be levied only in the subunit of the consolidated
school corporation that initially incurred the debt or obligation, unless
otherwise provided in the resolution.
(e) All debts and obligations incurred by the consolidated school
corporation after the date on which the consolidation becomes effective
are considered a debt or obligation of the consolidated school
corporation as a whole.
(f) This subsection applies to a consolidation under this section.
Upon receipt of the resolution to consolidate under section 11 of this
chapter, the department of local government finance shall set for the
consolidated school corporation:
(1) new maximum levies under IC 20-46-4 and IC 20-46-5, which
must equal the sum of the existing maximum levies adjusted for
assessed value growth; and
(2) a new maximum rate under IC 20-46-6, which equals an
amount determined as follows:
STEP ONE: Determine the maximum amount that may be
levied under each subunit's maximum capital projects fund tax
rate.
STEP TWO: Determine the sum of the STEP ONE amounts.
STEP THREE: Determine the sum of the certified net assessed
values for the subunits.
STEP FOUR: Divide the STEP TWO amount by the STEP
THREE amount.
STEP FIVE: Determine the product (rounded to the nearest
ten-thousandth (0.0001)) of:
(i) the STEP FOUR amount; multiplied by
(ii) one hundred (100).
(g) A consolidation under this section is subject to all other
provisions of this chapter to the extent the provisions are not
inconsistent with and do not conflict with this section. If there is a
conflict between any provision in this chapter and a provision in this
section, this section governs.