§ 6-1.1-18.5-10.5 — Civil taxing unit levy limit exceptions related to fire protection territories; levy growth limitation; department of local government finance determination of budget, rate, and levy for civil taxing unit that joins fire protection territory; maximum period to implement total tax rate for certain fire protection territory participating units

Indiana § 6-1.1-18.5-10.5

• Jurisdiction: Indiana
• Art. 1.1: PROPERTY TAXES
• Ch. 18.5: Civil Government Property Tax Controls

Text

5. (a) The ad valorem property tax levy
limits imposed by section 3 of this chapter do not apply to ad valorem
property taxes imposed by a civil taxing unit for fire protection services
within a fire protection territory under IC 36-8-19, if the civil taxing
unit is a participating unit in a fire protection territory established
before August 1, 2001. For purposes of computing the ad valorem
property tax levy limits imposed on a civil taxing unit by section 3 of
this chapter on a civil taxing unit that is a participating unit in a fire
protection territory, established before August 1, 2001, the civil taxing
unit's ad valorem property tax levy for a particular calendar year does
not include that part of the levy imposed under IC 36-8-19. Any
property taxes imposed by a civil taxing unit that are exempted by this
subsection from the ad valorem property tax levy limits imposed by
section 3 of this chapter and first due and payable after December 31,
2008, may not increase annually by a percentage greater than the result
of:
(1) the maximum levy growth quotient determined under section
2 of this chapter; minus
(2) one (1).
(b) The department of local government finance may, under this
subsection, increase the maximum permissible ad valorem property tax
levy that would otherwise apply to a civil taxing unit under section 3
of this chapter to meet the civil taxing unit's obligations to a fire
protection territory established under IC 36-8-19. To obtain an increase
in the civil taxing unit's maximum permissible ad valorem property tax
levy, a civil taxing unit shall submit a petition to the department of
local government finance in the year immediately preceding the first
year in which the civil taxing unit levies a tax to support the fire
protection territory. The petition must be filed before the date specified
in section 12(a)(1) of this chapter of that year. The department of local
government finance shall make a final determination of the civil taxing
unit's budget, ad valorem property tax levy, and property tax rate for the
fire protection territory for the ensuing calendar year. In making its
determination under this subsection, the department of local
government finance shall consider the amount that the civil taxing unit
is obligated to provide to meet the expenses of operation and
maintenance of the fire protection services within the territory,
including the participating unit's reasonable share of an operating
balance for the fire protection territory. The department of local
government finance shall determine the entire amount of the allowable
adjustment in the final determination. The department shall order the
adjustment implemented in the amounts and over the number of years,
not exceeding three (3), requested by the petitioning civil taxing unit.
However, the department of local government finance may not approve
under this subsection a property tax levy greater than zero (0) if the
civil taxing unit did not exist as of the assessment date for which the
tax levy will be imposed. For purposes of applying this subsection to
the civil taxing unit's maximum permissible ad valorem property tax
levy in subsequent calendar years, the department of local government
finance may determine not to consider part or all of the part of the
property tax levy imposed to establish the operating balance of the fire
protection territory.
(c) This subsection applies to a participating unit in a fire protection
territory established under IC 36-8-19 after December 31, 2022.
Notwithstanding any other law, if a total tax rate levied upon the
formation of a fire protection territory established under IC 36-8-19 is
to be implemented over a number of years as provided in IC 36-8-19-7(c), the maximum permissible ad valorem property tax levy
that would otherwise apply to a participating unit under section 3 of
this chapter to meet the participating unit's obligations to a fire
protection territory does not apply to ad valorem property taxes
imposed by the participating unit to meet the participating unit's
obligations to the fire protection territory over the number of years in
which the total tax rate is to be implemented by each participating unit.
For purposes of calculating the maximum permissible ad valorem
property tax levy imposed by a participating unit for each year for
which the participating unit implements a total tax rate to support the
fire protection territory, the participating unit's maximum permissible
ad valorem property tax levy for the preceding calendar year under
section 3(a) STEP ONE of this chapter is increased each year by an
amount equal to the difference between:
(1) the amount the participating unit will have to levy for the
ensuing calendar year in order to fund the participating unit's
share of the fire protection territory budget for the operating costs
as provided in the ordinance or resolution making the unit a
participating unit in the fire protection territory; and
(2) the participating unit's levy for fire protection services for the
calendar year that immediately precedes the ensuing calendar year
in which the participating unit levies a tax to support the fire
protection territory.

Legislative History

As added by P.L.37-1994, SEC.1. Amended by P.L.240-2001, SEC.1; P.L.146-2008, SEC.177; P.L.182-2009(ss), SEC.129; P.L.113-2010, SEC.32; P.L.245-2015, SEC.13; P.L.159-2020, SEC.34; P.L.95-2022, SEC.2.