§ 6-1.1-17-22 — Operating balance in debt service fund

Indiana § 6-1.1-17-22

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

Text

(a) In determining the amount of the levy
for a debt service fund for a budget year, the maximum amount allowed
for an operating balance in the debt service fund is the sum of the
maximum allowable operating balance for each debt included in the
debt service fund. The maximum allowable operating balance for an
individual debt shall be calculated as follows:
(1) For debt originally incurred after June 30, 2014, the lesser of:
(A) fifteen percent (15%) of the budget estimate for the debt for
the year after the budget year; or
(B) the debt payment to be made in the first six (6) months of
the year after the budget year.
(2) For debt originally incurred before July 1, 2014, the lesser of:
(A) fifty percent (50%) of the budget estimate for the debt for
the year after the budget year; or
(B) the debt payment to be made in the first six (6) months of
the year after the budget year.
If debt is refinanced, the date the refinanced debt was originally
incurred, and not the date that the refinancing is closed, is the date to
be used for purposes of this subsection.
(b) For purposes of IC 6-1.1-20.6-9.5, the property taxes allowed for
an operating balance in the debt service fund under this section may
not be construed as an increase in a political subdivision's property tax
levy to make up for a reduction in property tax collections resulting
from the application of credits under IC 6-1.1-20.6.

Legislative History

As added by P.L.120-2014, SEC.2. Amended by P.L.148-2015, SEC.16.