§ 6-1.1-17-16 — Department of local government finance certification of tax rates, tax levies, and budgets; public hearing requests; deadline for completion; limitations on levy for lease payments; judicial review of department action

Indiana § 6-1.1-17-16

• Jurisdiction: Indiana
• Art. 1.1: PROPERTY TAXES
• Ch. 17: Procedures for Fixing and Reviewing Budgets, Tax

Text

(a) The department of local government
finance shall certify the tax rates and tax levies for all funds of political
subdivisions subject to the department of local government finance's
review.
(b) For a fund of a political subdivision subject to levy limits under
IC 6-1.1-18.5-3, the department of local government finance shall
calculate and certify the allowable budget of the fund if the political
subdivision adopts a tax levy that exceeds the estimated maximum levy
limits as provided by the department of local government finance under
IC 6-1.1-18.5-24.
(c) For a fund of a political subdivision subject to levy limits under
IC 6-1.1-18.5-3 and for which the political subdivision adopts a tax
levy that is not more than the levy limits under IC 6-1.1-18.5-3, the
department of local government finance shall review the fund to ensure
the adopted budget is fundable based on the unit's adopted tax levy and
estimates of available revenues. If the adopted budget is fundable, the
department of local government finance shall use the adopted budget
as the approved appropriation for the fund for the budget year. As
needed, the political subdivision may complete the additional
appropriation process through IC 6-1.1-18-5 for these funds during the
budget year.
(d) For a fund of the political subdivision subject to levy limits
under IC 6-1.1-18.5-3 and for which the political subdivision adopts a
tax levy that is not more than the levy limits under IC 6-1.1-18.5-3, if
the department of local government finance has determined the adopted
budget is not fundable based on the unit's adopted tax levy and
estimates of available revenues, the department of local government
finance shall calculate and certify the allowable budget that is fundable
based on the adopted tax levy and the department's estimates of
available revenues.
(e) For all other funds of a political subdivision not described in
subsections (b), (c), and (d), the department of local government
finance shall certify a budget for the fund.
(f) Except as provided in section 16.1 of this chapter, the department
of local government finance is not required to hold a public hearing
before the department of local government finance reviews, revises,
reduces, or increases a political subdivision's budget by fund, tax rate,
or tax levy under this section.
(g) Except as provided in subsection (l), IC 20-46, or IC 6-1.1-18.5,
the department of local government finance may not increase a political
subdivision's budget by fund, tax rate, or tax levy to an amount which
exceeds the amount originally fixed by the political subdivision.
However, if the department of local government finance determines
that IC 5-3-1-2.3(b) applies to the tax rate, tax levy, or budget of the
political subdivision, the maximum amount by which the department
may increase the tax rate, tax levy, or budget is the amount originally
fixed by the political subdivision, and not the amount that was
incorrectly published or omitted in the notice described in IC 5-3-1-2.3(b). The department of local government finance shall give
the political subdivision notification electronically in the manner
prescribed by the department of local government finance specifying
any revision, reduction, or increase the department proposes in a
political subdivision's tax levy or tax rate. The political subdivision has
ten (10) calendar days from the date the political subdivision receives
the notice to provide a response electronically in the manner prescribed
by the department of local government finance. The response may
include budget reductions, reallocation of levies, a revision in the
amount of miscellaneous revenues, and further review of any other
item about which, in the view of the political subdivision, the
department is in error. The department of local government finance
shall consider the adjustments as specified in the political subdivision's
response if the response is provided as required by this subsection and
shall deliver a final decision to the political subdivision. The
department of local government finance may not consider any
adjustments that are suggested by the political subdivision after the
expiration of the ten (10) day period allowed for the political
subdivision's response.
(h) The department of local government finance may not approve a
levy for lease payments by a city, town, county, library, or school
corporation if the lease payments are payable to a building corporation
for use by the building corporation for debt service on bonds and if:
(1) no bonds of the building corporation are outstanding; or
(2) the building corporation has enough legally available funds on
hand to redeem all outstanding bonds payable from the particular
lease rental levy requested.
(i) The department of local government finance shall certify its
action to:
(1) the county auditor;
(2) if the budget and levy of the political subdivision are being
continued:
(A) the state board of accounts;
(B) the state comptroller; and
(C) the department of state revenue;
(3) the political subdivision if the department acts pursuant to an
appeal initiated by the political subdivision; and
(4) a taxpayer that owns property that represents at least ten
percent (10%) of the taxable assessed valuation in the political
subdivision.
(j) The following may petition for judicial review of the final
determination of the department of local government finance under
subsection (i):
(1) If the department acts under an appeal initiated by a political
subdivision, the political subdivision.
(2) A taxpayer that owns property that represents at least ten
percent (10%) of the taxable assessed valuation in the political
subdivision.
The petition must be filed in the tax court not more than forty-five (45)
days after the department certifies its action under subsection (i).
(k) The department of local government finance is expressly
directed to complete the duties assigned to it under this section as
follows:
(1) Not later than December 31 of the year preceding that budget
year, unless subdivision (2) applies.
(2) Not later than January 15 of the budget year if any of the
following are true:
(A) A taxing unit in a county intends to issue debt after
December 1 in the year preceding the budget year and has
indicated its intent to issue debt after December 1 in the year
preceding the budget year as specified in section 5 of this
chapter.
(B) A taxing unit intends to file a shortfall appeal under IC 6-1.1-18.5-16 and has indicated its intent to file a shortfall
appeal as specified in section 5 of this chapter.
(C) The deadline for a city in the county to fix the budget, tax
rate, and tax levy has been extended, in accordance with section
5.2 of this chapter, due to the executive's veto of the ordinance
fixing the budget, tax rate, and tax levy.
(l) Subject to the provisions of all applicable statutes, and
notwithstanding IC 6-1.1-18-1, the department of local government
finance shall, unless the department finds extenuating circumstances,
increase a political subdivision's tax levy to an amount that exceeds the
amount originally advertised or adopted by the political subdivision if:
(1) the increase is requested in writing by the officers of the
political subdivision;
(2) the request includes:
(A) the corrected budget, tax rate, or levy, as applicable; and
(B) the time and place of the meeting described in subdivision
(4);
(3) the political subdivision publishes the requested increase on
the department's advertising website;
(4) the political subdivision adopts the needed changes to its
budget, tax levy, or rate in a public meeting of the governing
body; and
(5) notice is given to the county fiscal body of the department's
correction.
The political subdivision shall publish notice of the meeting described
in subdivision (4) on the Indiana transparency website in the manner
prescribed by the department not later than forty-eight (48) hours
(excluding weekends and holidays) before the meeting. If the
department increases a levy beyond what was advertised or adopted
under this subsection, it shall, unless the department finds extenuating
circumstances, reduce the certified levy affected below the maximum
allowable levy by the lesser of five percent (5%) of the difference
between the advertised or adopted levy and the increased levy, or one
hundred thousand dollars ($100,000).
(m) If the department of local government finance has determined
that the proposed tax levy for a political subdivision's budget exceeds
the permissible tax levy for the political subdivision under section 23
of this chapter, the department of local government finance shall
calculate and certify the allowable tax levy and tax rate for the political
subdivision based on the provisions in section 23 of this chapter.
[Pre-1975 Property Tax Recodification Citations:
6-1-1-24.5; 6-1-46-8 part.]
Formerly: Acts 1975, P.L.47, SEC.1. As amended by
P.L.73-1983, SEC.7; P.L.35-1990, SEC.7; P.L.35-1994, SEC.2;
P.L.85-1995, SEC.3; P.L.86-1995, SEC.5; P.L.49-1996, SEC.4;
P.L.50-1996, SEC.9; P.L.90-2002, SEC.156; P.L.256-2003, SEC.15;
P.L.228-2005, SEC.21; P.L.2-2006, SEC.38; P.L.154-2006, SEC.44;
P.L.169-2006, SEC.9; P.L.1-2007, SEC.42; P.L.146-2008, SEC.160;
P.L.182-2009(ss), SEC.123; P.L.137-2012, SEC.26; P.L.218-2013,
SEC.2; P.L.183-2014, SEC.21; P.L.149-2016, SEC.23; P.L.184-2016,
SEC.11; P.L.257-2019, SEC.47; P.L.159-2020, SEC.24; P.L.38-2021,
SEC.27; P.L.9-2024, SEC.169; P.L.68-2025, SEC.56.