Indiana § 6-1.1-18.5-3 Maximum ad valorem property tax levy; formula

Indiana Statutes

§ 6-1.1-18.5-3 — Maximum ad valorem property tax levy; formula

Indiana § 6-1.1-18.5-3

Art. 1.1PROPERTY TAXES

Ch. 18.5Civil Government Property Tax Controls

This text of Indiana § 6-1.1-18.5-3 (Maximum ad valorem property tax levy; formula) 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 § 6-1.1-18.5-3 (2026).

Text

Note: This version of section effective until 1-1-2028. See also following version of this section, effective 1-1-2028. Sec. 3.

(a)A civil taxing unit may not impose an ad valorem property tax levy for an ensuing calendar year that exceeds the amount determined in the last STEP of the following STEPS: STEP ONE: Determine the civil taxing unit's maximum permissible ad valorem property tax levy for the preceding calendar year. STEP TWO: Multiply the amount determined in STEP ONE by the amount determined in the last STEP of section 2(b) of this chapter. STEP THREE: Determine the lesser of one and fifteen hundredths (1.15) or the quotient (rounded to the nearest ten-thousandth (0.0001)), of the assessed value of all taxable property subject to the civil taxing unit's ad valorem property tax l

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Note: This version of section effective until 1-1-2028. See also
following version of this section, effective 1-1-2028.
Sec. 3. (a) A civil taxing unit may not impose an ad
valorem property tax levy for an ensuing calendar year that exceeds the
amount determined in the last STEP of the following STEPS:
STEP ONE: Determine the civil taxing unit's maximum
permissible ad valorem property tax levy for the preceding
calendar year.
STEP TWO: Multiply the amount determined in STEP ONE by
the amount determined in the last STEP of section 2(b) of this
chapter.
STEP THREE: Determine the lesser of one and fifteen hundredths
(1.15) or the quotient (rounded to the nearest ten-thousandth
(0.0001)), of the assessed value of all taxable property subject to
the civil taxing unit's ad valorem property tax levy for the ensuing
calendar year, divided by the assessed value of all taxable
property that is subject to the civil taxing unit's ad valorem
property tax levy for the ensuing calendar year and that is
contained within the geographic area that was subject to the civil
taxing unit's ad valorem property tax levy in the preceding
calendar year.
STEP FOUR: Determine the greater of the amount determined in
STEP THREE or one (1).
STEP FIVE: Multiply the amount determined in STEP TWO by
the amount determined in STEP FOUR.
STEP SIX: Add the amount determined under STEP TWO to the
amount of an excessive levy appeal granted under section 13 of
this chapter for the ensuing calendar year.
STEP SEVEN: Determine the greater of STEP FIVE or STEP
SIX.
(b) This subsection applies only to a civil taxing unit that is located
in a county that is covered by IC 6-3.6-11-1. For purposes of subsection
(a), revenue under IC 6-3.6-6 that is applied for purposes of a levy
freeze shall not be included in the amount determined under STEP
ONE of subsection (a) for the civil taxing unit. Notwithstanding any
provision in this section, any other section of this chapter, or IC 12-20-21-3.2, and except as provided in subsection (c), if the adopting
body has adopted a resolution specifying that any increase in the
maximum levy is to be funded using local income tax revenue, the
maximum permissible ad valorem property tax levy calculated under
this section for the ensuing calendar year for the civil taxing unit is
equal to the civil taxing unit's maximum permissible ad valorem
property tax levy for the current calendar year. If the adopting body has
adopted a resolution specifying that any increase in the maximum levy
is not to be funded using local income tax revenue, the maximum
permissible ad valorem property tax levy for the civil taxing unit is
equal to the civil taxing unit's maximum permissible ad valorem
property tax levy calculated under this section for the ensuing calendar
year.
(c) In the case of a civil taxing unit that:
(1) is partially located in a county that is covered by IC 6-3.6-11-1; and
(2) is partially located in a county that is not described in
subdivision (1);
the department of local government finance shall, notwithstanding
subsection (b), adjust the portion of the civil taxing unit's maximum
permissible ad valorem property tax levy that is attributable (as
determined by the department of local government finance) to the
county or counties described in subdivision (2). The department of
local government finance shall adjust this portion of the civil taxing
unit's maximum permissible ad valorem property tax levy so that,
notwithstanding subsection (b), this portion is allowed to increase as
otherwise provided in this section. If the department of local
government finance increases the civil taxing unit's maximum
permissible ad valorem property tax levy under this subsection, any
additional property taxes imposed by the civil taxing unit under the
adjustment shall be paid only by the taxpayers in the county or counties
described in subdivision (2).

Legislative History

As added by P.L.73-1983, SEC.1. Amended by P.L.64-1986, SEC.1; P.L.78-1987, SEC.4; P.L.151-2001, SEC.4; P.L.198-2001, SEC.53; P.L.1-2002, SEC.21; P.L.192-2002(ss), SEC.36; P.L.1-2003, SEC.25; P.L.224-2007, SEC.20; P.L.146-2008, SEC.169; P.L.42-2011, SEC.7; P.L.172-2011, SEC.35; P.L.234-2013, SEC.1; P.L.153-2014, SEC.1; P.L.197-2016, SEC.14; P.L.247-2017, SEC.1.