§ 6-1.1-17-20 — Review of proposed budget and levy of taxing unit (other than public libraries) without an elected governing body by city, town, or county fiscal body

Indiana § 6-1.1-17-20

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

Text

(a) This section applies to each governing
body of a taxing unit that is not comprised of a majority of officials
who are elected to serve on the governing body. For purposes of this
section, an individual who qualifies to be appointed to a governing
body or serves on a governing body because of the individual's status
as an elected official of another taxing unit shall be treated as an
official who was not elected to serve on the governing body.
(b) As used in this section, "taxing unit" has the meaning set forth
in IC 6-1.1-1-21, except that the term does not include a public library
or an entity whose tax levies are subject to review and modification by
a city-county legislative body under IC 36-3-6-9.
(c) If:
(1) the assessed valuation of a taxing unit is entirely contained
within a city or town; or
(2) the assessed valuation of a taxing unit is not entirely contained
within a city or town but:
(A) the taxing unit was originally established by the city or
town; or
(B) the majority of the individuals serving on the governing
body of the taxing unit are appointed by the city or town;
the governing body shall submit its proposed budget and property tax
levy to the city or town fiscal body. The proposed budget and levy shall
be submitted to the city or town fiscal body in the manner prescribed
by the department of local government finance before September 2 of
a year.
(d) If subsection (c) does not apply, the governing body of the taxing
unit shall submit its proposed budget and property tax levy to the
county fiscal body in the county where the taxing unit has the most
assessed valuation. The proposed budget and levy shall be submitted
to the county fiscal body in the manner prescribed by the department
of local government finance before September 2 of a year.
(e) The fiscal body of the city, town, or county (whichever applies)
shall review each budget and proposed tax levy and adopt a final
budget and tax levy for the taxing unit. The fiscal body may reduce or
modify but not increase the proposed budget or tax levy.
(f) If a taxing unit fails to file the information required in subsection
(c) or (d), whichever applies, with the appropriate fiscal body by the
time prescribed by this section, when calculating the maximum ad
valorem property tax levy under IC 6-1.1-18.5-3(a) for the taxing unit
for the ensuing budget year, instead of multiplying the maximum levy
growth quotient determined under IC 6-1.1-18.5-2(b) or IC 6-1.1-18.5-2(e) (as applicable) for the year by the taxing unit's
maximum permissible ad valorem property tax levy for the preceding
calendar year as prescribed in STEP TWO of IC 6-1.1-18.5-3(a), for
purposes of STEP TWO of IC 6-1.1-18.5-3(a), the taxing unit's
maximum permissible ad valorem property tax levy for the preceding
calendar year must instead be multiplied by the result of the following:
STEP ONE: Determine:
(A) the result of STEP FOUR of IC 6-1.1-18.5-2(b) or STEP
FIVE of IC 6-1.1-18.5-2(e) (as applicable); minus
(B) one (1).
STEP TWO: Multiply:
(A) the STEP ONE result; by
(B) eight-tenths (0.8).
STEP THREE: Add one (1) to the STEP TWO result.
However, if the taxing unit files the information as required in
subsection (c) or (d), whichever applies, for the budget year
immediately following the budget year for which the formula under this
subsection is applied, when calculating the maximum ad valorem
property tax levy under IC 6-1.1-18.5-3(a) for the taxing unit for the
subsequent budget year, the taxing unit's maximum permissible ad
valorem property tax levy must be calculated as if the formula under
this subsection had not been applied for the affected budget year.
(g) If the appropriate fiscal body fails to complete the requirements
of subsection (e) before the adoption deadline in section 5 of this
chapter for any taxing unit subject to this section, when calculating the
maximum ad valorem property tax levy under IC 6-1.1-18.5-3(a) for
the city, town, or county for the ensuing budget year, instead of
multiplying the maximum levy growth quotient determined under IC 6-1.1-18.5-2(b) or IC 6-1.1-18.5-2(e) (as applicable) for the year by the
city's, town's, or county's maximum permissible ad valorem property
tax levy for the preceding calendar year as prescribed in STEP TWO
of IC 6-1.1-18.5-3(a), for purposes of STEP TWO of IC 6-1.1-18.5-3(a), the city's, town's, or county's maximum permissible ad
valorem property tax levy for the preceding calendar year must instead
be multiplied by the result of the following:
STEP ONE: Determine:
(A) the result of STEP FOUR of IC 6-1.1-18.5-2(b) or STEP
FIVE of IC 6-1.1-18.5-2(e) (as applicable); minus
(B) one (1).
STEP TWO: Multiply:
(A) the STEP ONE result; by
(B) eight-tenths (0.8).
STEP THREE: Add one (1) to the STEP TWO result.
However, if the city, town, or county files the information as required
in subsection (e) for the budget year immediately following the budget
year for which the formula under this subsection is applied, when
calculating the maximum ad valorem property tax levy under IC 6-1.1-18.5-3(a) for the city, town, or county for the subsequent budget
year, the unit's maximum permissible ad valorem property tax levy
must be calculated as if the formula under this subsection had not been
applied for the affected budget year.

Legislative History

As added by P.L.25-1995, SEC.26. Amended by P.L.1-2004, SEC.19 and P.L.23-2004, SEC.20; P.L.199-2005, SEC.13; P.L.227-2005, SEC.5; P.L.1-2006, SEC.136; P.L.146-2008, SEC.163; P.L.182-2009(ss), SEC.124; P.L.113-2010, SEC.29; P.L.137-2012, SEC.27; P.L.257-2013, SEC.9; P.L.230-2025, SEC.43.