§ 20-46-9-10 — Question form; resolution to extend a referendum levy; formula; certification

Indiana § 20-46-9-10

• Jurisdiction: Indiana
• Title 20: EDUCATION
• Art. 46: LEVIES OTHER THAN GENERAL FUND LEVIES
• Ch. 9: School Safety Referendum Tax Levy

Text

Note: This version of section effective until 1-1-2026. See also
following version of this section, effective 1-1-2026.
Sec. 10. (a) This section applies only to a referendum
to allow a school corporation to extend a referendum tax levy.
(b) The question to be submitted to the voters in the referendum
must read as follows:
"Shall the school corporation continue to impose increased
property taxes paid to the school corporation by homeowners and
businesses for _____ (insert number of years) years immediately
following the holding of the referendum for the purpose of
funding ______ (insert short description of purposes)? The
property tax increase requested in this referendum was originally
approved by the voters in _______ (insert the year in which the
referendum tax levy was approved) and if extended will increase
the average property tax paid to the school corporation per year on
a residence within the school corporation by ______% (insert the
estimated average percentage of property tax increase on a
residence within the school corporation) and if extended will
increase the average property tax paid to the school corporation
per year on a business property within the school corporation by
______% (insert the estimated average percentage of property tax
increase on a business within the school corporation).".
(c) The number of years for which a referendum tax levy may be
extended if the public question under this section is approved may not
exceed the number of years for which the expiring referendum tax levy
was imposed.
(d) At the request of the governing body of a school corporation that
proposes to impose property taxes under this chapter, the county
auditor of the county in which the school corporation is located shall
determine the estimated average percentage of property tax increase on
a homestead to be paid to the school corporation that must be included
in the public question under subsection (b) as follows:
STEP ONE: Determine the average assessed value of a homestead
located within the school corporation.
STEP TWO: For purposes of determining the net assessed value
of the average homestead located within the school corporation,
subtract:
(A) an amount for the homestead standard deduction under IC 6-1.1-12-37 as if the homestead described in STEP ONE was
eligible for the deduction; and
(B) an amount for the supplemental homestead deduction under
IC 6-1.1-12-37.5 as if the homestead described in STEP ONE
was eligible for the deduction;
from the result of STEP ONE.
STEP THREE: Divide the result of STEP TWO by one hundred
(100).
STEP FOUR: Determine the overall average tax rate per one
hundred dollars ($100) of assessed valuation for the current year
imposed on property located within the school corporation.
STEP FIVE: For purposes of determining net property tax liability
of the average homestead located within the school corporation:
(A) multiply the result of STEP THREE by the result of STEP
FOUR; and
(B) as appropriate, apply any currently applicable county
property tax credit rates and the credit for excessive property
taxes under IC 6-1.1-20.6-7.5(a)(1).
STEP SIX: Determine the amount of the school corporation's part
of the result determined in STEP FIVE.
STEP SEVEN: Multiply:
(A) the tax rate that will be imposed if the public question is
approved by the voters; by
(B) the result of STEP THREE.
STEP EIGHT: Divide the result of STEP SEVEN by the result of
STEP SIX, expressed as a percentage.
(e) At the request of the governing body of a school corporation that
proposes to impose property taxes under this chapter, the county
auditor of the county in which the school corporation is located shall
determine the estimated average percentage of property tax increase on
a business property to be paid to the school corporation that must be
included in the public question under subsection (b) as follows:
STEP ONE: Determine the average assessed value of business
property located within the school corporation.
STEP TWO: Divide the result of STEP ONE by one hundred
(100).
STEP THREE: Determine the overall average tax rate per one
hundred dollars ($100) of assessed valuation for the current year
imposed on property located within the school corporation.
STEP FOUR: For purposes of determining net property tax
liability of the average business property located within the school
corporation:
(A) multiply the result of STEP TWO by the result of STEP
THREE; and
(B) as appropriate, apply any currently applicable county
property tax credit rates and the credit for excessive property
taxes under IC 6-1.1-20.6-7.5 as if the applicable percentage
was three percent (3%).
STEP FIVE: Determine the amount of the school corporation's
part of the result determined in STEP FOUR.
STEP SIX: Multiply:
(A) the result of STEP TWO; by
(B) the tax rate that will be imposed if the public question is
approved by the voters.
STEP SEVEN: Divide the result of STEP SIX by the result of
STEP FIVE, expressed as a percentage.
(f) The county auditor shall certify the estimated average percentage
of property tax increase on a homestead to be paid to the school
corporation determined under subsection (d), and the estimated average
percentage of property tax increase on a business property to be paid
to the school corporation determined under subsection (e), in a manner
prescribed by the department of local government finance, and provide
the certification to the governing body of the school corporation that
proposes to impose property taxes.

Legislative History

As added by P.L.272-2019, SEC.12. Amended by P.L.38-2021, SEC.66; P.L.174-2022, SEC.56; P.L.236-2023, SEC.156.