§ 6-1.1-18.5-31 — Maximum permissible ad valorem property tax levy for certain qualifying municipalities; debt service levies; one time permanent increase

Indiana § 6-1.1-18.5-31

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

Text

(a) This section applies only to counties
that contain at least four (4) municipalities each with a population
greater than forty thousand (40,000), as determined by the most recent
federal decennial census.
(b) As used in this section, "maximum levy to assessed value
comparison" refers to the maximum property tax levy to property
assessed value comparison determined under subsection (e).
(c) As used in this section, "municipality" means a city or town.
(d) As used in this section, "qualifying municipality" means a
municipality that meets the condition set forth in subsection (f).
(e) The department of local government finance shall, before August
1, determine a maximum property tax levy to property assessed value
comparison for all municipalities statewide using the following
formula:
STEP ONE: For each municipality, determine the municipality's
maximum permissible ad valorem property tax levy for taxes first
due and payable in 2024.
STEP TWO: For each municipality, determine the total property
assessed value of the municipality, as certified by the county
auditor, for taxes first due and payable in 2024.
STEP THREE: For each municipality, determine the quotient of:
(A) STEP ONE; divided by
(B) STEP TWO;
expressed as a percentage.
(f) This section applies only to a municipality in which for taxes first
due and payable in 2025, the municipality has a maximum levy to
assessed value comparison that is in the lowest twentieth percentile of
municipalities under STEP THREE of subsection (e) when compared
to all municipalities statewide.
(g) If this section applies, the executive of a qualifying municipality
may, not later than July 1, 2025, and after receiving approval by the
legislative body, submit a petition to the department of local
government finance to increase the maximum permissible ad valorem
property tax levy of a qualifying municipality under this subsection. If
a petition is submitted under this subsection, the department of local
government finance shall increase the maximum permissible ad
valorem property tax levy of the qualifying municipality for property
taxes first due and payable in 2025 to include all debt service levies of
the qualifying municipality for property taxes first due and payable in
2025.
(h) An adjustment under this section is a one (1) time and
permanent increase. The qualifying municipality's ad valorem property
tax levy for property taxes first due and payable in 2025, as adjusted
under this section, shall be used in the determination of the qualifying
municipality's maximum permissible ad valorem property tax levy
under this chapter for property taxes first due and payable in 2026 and
thereafter.
(i) Notwithstanding STEP ONE of section 3(a) of this chapter, for
purposes of determining a qualifying municipality's maximum
permissible ad valorem property tax levy for property taxes first due
and payable in 2026, the amount determined in STEP ONE of section
3(a) of this chapter shall be the result determined in STEP TWO of the
following calculation:
STEP ONE: Determine a qualifying municipality's maximum
permissible ad valorem property tax levy for property taxes first
due and payable in 2025 without regard to the adjustment under
this section.
STEP TWO: Determine the sum of:
(A) STEP ONE; plus
(B) the amount of the adjustment under this section.
This calculation only applies to determining a qualifying municipality's
maximum ad valorem property tax levy for property taxes first due and
payable in 2026 and not to a determination for any other tax year.
(j) This section expires June 30, 2030.

Legislative History

As added by P.L.230-2025, SEC.45.