Note: This version of section effective until 1-1-2026. See also
following version of this section, effective 1-1-2026.
Sec. 9.
(a)The question to be submitted to the voters
in the referendum must read as follows:
"Shall the school corporation increase property taxes paid to
schools 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)? If this public question is approved by
the voters, the average property tax paid to schools per year on a
residence would increase by ______% (insert the estimated
average percentage of property tax increase paid to schools on a
residence within the school corporation as determined under
subsection (b)) and the averag
Free access — add to your briefcase to read the full text and ask questions with AI
Note: This version of section effective until 1-1-2026. See also
following version of this section, effective 1-1-2026.
Sec. 9. (a) The question to be submitted to the voters
in the referendum must read as follows:
"Shall the school corporation increase property taxes paid to
schools 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)? If this public question is approved by
the voters, the average property tax paid to schools per year on a
residence would increase by ______% (insert the estimated
average percentage of property tax increase paid to schools on a
residence within the school corporation as determined under
subsection (b)) and the average property tax paid to schools per
year on a business property would increase by ______% (insert
the estimated average percentage of property tax increase paid to
schools on a business property within the school corporation as
determined under subsection (c)). The most recent property tax
referendum proposed by the school corporation was held in
______ (insert year) and ________ (insert whether the measure
passed or failed).".
(b) 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 (a) 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.
(c) 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 (a) 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.
(d) The county auditor shall certify the estimated average
percentage of property tax increase on a homestead to be paid to
schools determined under subsection (b), and the estimated average
percentage of property tax increase on a business property to be paid
to schools determined under subsection (c), 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.