Indiana § 36-1.5-3-5 Savings through reorganization; budgets, rates, and levies; reductions
in property tax levies, property tax rates, and budgets; school
corporation reorganizations

Indiana Statutes

§ 36-1.5-3-5 — Savings through reorganization; budgets, rates, and levies; reductions in property tax levies, property tax rates, and budgets; school corporation reorganizations

Indiana § 36-1.5-3-5

Title 36LOCAL GOVERNMENT

Art. 1.5GOVERNMENT MODERNIZATION

Ch. 3Adjustment of Maximum Permissible Levies, Tax Rates,

This text of Indiana § 36-1.5-3-5 (Savings through reorganization; budgets, rates, and levies; reductions in property tax levies, property tax rates, and budgets; school corporation reorganizations) 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 § 36-1.5-3-5 (2026).

Text

(a)This subsection applies to the plan of reorganization of a political subdivision other than a school corporation. The plan of reorganization must specify the amount (if any) of the decrease that the department of local government finance shall make to the maximum permissible property tax levies, maximum permissible property tax rates, and budgets under IC 6-1.1-17 and IC 6-1.1-18.5 of the reorganized political subdivision to:

(1)eliminate double taxation for services or goods provided by the reorganized political subdivision; or

(2)eliminate any excess by which the amount of property taxes imposed by the reorganized political subdivision exceeds the amount necessary to pay for services or goods provided under this article.

(b)This subsection applies to a plan of reorganization for a

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(a) This subsection applies to the plan of
reorganization of a political subdivision other than a school
corporation. The plan of reorganization must specify the amount (if
any) of the decrease that the department of local government finance
shall make to the maximum permissible property tax levies, maximum
permissible property tax rates, and budgets under IC 6-1.1-17 and IC 6-1.1-18.5 of the reorganized political subdivision to:
(1) eliminate double taxation for services or goods provided by
the reorganized political subdivision; or
(2) eliminate any excess by which the amount of property taxes
imposed by the reorganized political subdivision exceeds the
amount necessary to pay for services or goods provided under this
article.
(b) This subsection applies to a plan of reorganization for a school
corporation. The plan of reorganization must specify the adjustments
that the department of local government finance shall make to the
maximum permissible property tax levies, maximum permissible
property tax rates, and budgets under IC 6-1.1-17 and IC 6-1.1-18.5 of
the reorganized school corporation. The following apply to a school
corporation reorganized under this article:
(1) The new maximum permissible tax levy under IC 20-46-8
(operations fund property tax levy) for the first calendar year in
which the reorganization is effective equals the following:
STEP ONE: Determine for each school corporation that is part
of the reorganization the sum of the maximum levies under IC 20-46-8 (operations fund property tax levy) for the ensuing
calendar year, including the maximum levy growth quotient (IC 6-1.1-18.5-2) adjustment for the ensuing calendar year.
STEP TWO: Determine the sum of the STEP ONE amounts.
STEP THREE: Multiply the STEP TWO amount by one
hundred three percent (103%).
(2) The new debt service levy under IC 20-46-7 for the first
calendar year in which the reorganization is effective equals the
sum of the debt service fund levies for each school corporation
that is part of the reorganization that would have been permitted
under IC 20-46-7 in the calendar year.
(c) The fiscal body of the reorganized political subdivision shall
determine and certify to the department of local government finance
the amount of the adjustment (if any) under subsection (a).
(d) The amount of the adjustment (if any) under subsection (a) or (b)
must comply with the reorganization agreement under which the
political subdivision or school corporation is reorganized under this
article.

Legislative History

As added by P.L.186-2006, SEC.4. Amended by P.L.58-2011, SEC.3; P.L.255-2013, SEC.7; P.L.217-2017, SEC.159; P.L.238-2019, SEC.22; P.L.159-2020, SEC.76.