§ 6-1.1-20-3.1 — Procedures to be completed by political subdivision before imposing property taxes for bonds or lease for certain projects; thresholds

Indiana § 6-1.1-20-3.1

• Jurisdiction: Indiana
• Art. 1.1: PROPERTY TAXES
• Ch. 20: Procedures for Issuance of Bonds and Other Evidences

Text

1. (a) Subject to section 3.5(a)(1)(C) of this
chapter, this section applies only to the following:
(1) A controlled project (as defined in section 1.1 of this chapter
as in effect June 30, 2008) for which the proper officers of a
political subdivision make a preliminary determination in the
manner described in subsection (b) before July 1, 2008.
(2) An elementary school building, middle school building, high
school building, or other school building for academic instruction
that:
(A) is a controlled project;
(B) will be used for any combination of kindergarten through
grade 12; and
(C) will not cost more than the lesser of the following:
(i) The threshold amount determined under this item. In the
case of an ordinance or resolution adopted before January 1,
2018, making a preliminary determination to issue bonds or
enter into a lease for the project, the threshold amount is ten
million dollars ($10,000,000). In the case of an ordinance or
resolution adopted after December 31, 2017, and before
January 1, 2019, making a preliminary determination to issue
bonds or enter into a lease for the project, the threshold
amount is fifteen million dollars ($15,000,000). In the case of
an ordinance or resolution adopted in a calendar year after
December 31, 2018, making a preliminary determination to
issue bonds or enter into a lease for the project, the threshold
amount is an amount (as determined by the department of
local government finance) equal to the result of the maximum
levy growth quotient determined under IC 6-1.1-18.5-2 for
the year multiplied by the threshold amount determined under
this item for the preceding calendar year. In the case of a
threshold amount determined under this item that applies for
a calendar year after December 31, 2018, the department of
local government finance shall publish the threshold in the
Indiana Register under IC 4-22-7-7 not more than sixty (60)
days after the date the budget agency releases the maximum
levy growth quotient for the ensuing year under IC 6-1.1-18.5-2.
(ii) An amount equal to one percent (1%) of the total gross
assessed value of property within the political subdivision on
the last assessment date, if that total gross assessed value is
more than one billion dollars ($1,000,000,000), or ten million
dollars ($10,000,000), if the total gross assessed value of
property within the political subdivision on the last
assessment date is not more than one billion dollars
($1,000,000,000).
(3) Any other controlled project that:
(A) is not a controlled project described in subdivision (1) or
(2); and
(B) will not cost the political subdivision more than the lesser
of the following:
(i) The threshold amount determined under this item. In the
case of an ordinance or resolution adopted before January 1,
2018, making a preliminary determination to issue bonds or
enter into a lease for the project, the threshold amount is
twelve million dollars ($12,000,000). In the case of an
ordinance or resolution adopted after December 31, 2017,
and before January 1, 2019, making a preliminary
determination to issue bonds or enter into a lease for the
project, the threshold amount is fifteen million dollars
($15,000,000). In the case of an ordinance or resolution
adopted in a calendar year after December 31, 2018, making
a preliminary determination to issue bonds or enter into a
lease for the project, the threshold amount is an amount (as
determined by the department of local government finance)
equal to the result of the maximum levy growth quotient
determined under IC 6-1.1-18.5-2 for the year multiplied by
the threshold amount determined under this item for the
preceding calendar year. In the case of a threshold amount
determined under this item that applies for a calendar year
after December 31, 2018, the department of local government
finance shall publish the threshold in the Indiana Register
under IC 4-22-7-7 not more than sixty (60) days after the date
the budget agency releases the maximum levy growth
quotient for the ensuing year under IC 6-1.1-18.5-2.
(ii) An amount equal to one percent (1%) of the total gross
assessed value of property within the political subdivision on
the last assessment date, if that total gross assessed value is
more than one hundred million dollars ($100,000,000), or
one million dollars ($1,000,000), if the total gross assessed
value of property within the political subdivision on the last
assessment date is not more than one hundred million dollars
($100,000,000).
(4) A controlled project funded by debt service if the scope of the
project changes from the purpose of the project initially
advertised to taxpayers as determined under section 4.2(c) of this
chapter.
(5) This subdivision does not apply to a project for which a public
hearing to issue bonds or enter into a lease has been conducted
under IC 20-26-7-37 before July 1, 2023, or to a project for which
an ordinance or resolution making a preliminary determination to
issue bonds or enter into a lease is adopted after June 30, 2025.
Any other controlled project if both of the following apply:
(A) The political subdivision's total debt service tax rate is more
than forty cents ($0.40) per one hundred dollars ($100) of
assessed value, but less than eighty cents ($0.80) per one
hundred dollars ($100) of assessed value.
(B) The controlled project is not otherwise described in section
3.5(a)(1) of this chapter.
This subdivision expires December 31, 2025. For purposes of this
subdivision, a political subdivision's total debt service tax rate
does not include a tax rate imposed in a referendum debt service
levy approved by voters.
(6) Any other controlled project if the following apply:
(A) An ordinance or resolution making a preliminary
determination to issue bonds or enter into a lease for the project
is adopted after June 30, 2025.
(B) The controlled project is not otherwise described in section
3.5(a)(1) of this chapter.
(C) In the case of a:
(i) school corporation, the school corporation's total debt
service tax rate is more than forty cents ($0.40) per one
hundred dollars ($100) of assessed value, but not more than
seventy cents ($0.70) per one hundred dollars ($100) of
assessed value;
(ii) city, county, or town, the city's, county's, or town's total
debt service tax rate is more than twenty-five cents ($0.25)
per one hundred dollars ($100) of assessed value, but not
more than forty cents ($0.40) per one hundred dollars ($100)
of assessed value; or
(iii) political subdivision not described in item (i) or (ii), the
political subdivision's total debt service tax rate is more than
five cents ($0.05) per one hundred dollars ($100) of assessed
value, but not more than ten cents ($0.10) per one hundred
dollars ($100) of assessed value.
However, this subdivision does not apply to a project for which a
public hearing to issue bonds or enter into a lease has been
conducted under IC 20-26-7-37 before July 1, 2025. For purposes
of this subdivision, a political subdivision's total debt service tax
rate does not include a tax rate imposed in a referendum debt
service tax levy approved by voters.
(b) A political subdivision may not impose property taxes to pay
debt service on bonds or lease rentals on a lease for a controlled project
without completing the following procedures:
(1) The proper officers of a political subdivision shall publish
notice in accordance with IC 5-3-1 and send notice by first class
mail to the circuit court clerk and to any organization that delivers
to the officers, before January 1 of that year, an annual written
request for such notices of any meeting to consider adoption of a
resolution or an ordinance making a preliminary determination to
issue bonds or enter into a lease and shall conduct at least two (2)
public hearings on a preliminary determination before adoption
of the resolution or ordinance. The political subdivision must at
each of the public hearings on the preliminary determination
allow the public to testify regarding the preliminary determination
and must make the following information available to the public
at each of the public hearings on the preliminary determination,
in addition to any other information required by law:
(A) The result of the political subdivision's current and
projected annual debt service payments divided by the net
assessed value of taxable property within the political
subdivision.
(B) The result of:
(i) the sum of the political subdivision's outstanding long
term debt plus the outstanding long term debt of other taxing
units that include any of the territory of the political
subdivision; divided by
(ii) the net assessed value of taxable property within the
political subdivision.
(C) The information specified in subdivision (3)(A) through
(3)(H).
(2) When the proper officers of a political subdivision make a
preliminary determination to issue bonds or enter into a lease for
a controlled project, the officers shall give notice of the
preliminary determination by:
(A) publication in accordance with IC 5-3-1; and
(B) first class mail to the circuit court clerk and to the
organizations described in subdivision (1).
(3) A notice under subdivision (2) of the preliminary
determination of the political subdivision to issue bonds or enter
into a lease for a controlled project must include the following
information:
(A) The maximum term of the bonds or lease.
(B) The maximum principal amount of the bonds or the
maximum lease rental for the lease.
(C) The estimated interest rates that will be paid and the total
interest costs associated with the bonds or lease.
(D) The purpose of the bonds or lease.
(E) A statement that any owners of property within the political
subdivision or registered voters residing within the political
subdivision who want to initiate a petition and remonstrance
process against the proposed debt service or lease payments
must file a petition that complies with subdivisions (4) and (5)
not later than thirty (30) days after publication in accordance
with IC 5-3-1.
(F) With respect to bonds issued or a lease entered into to open:
(i) a new school facility; or
(ii) an existing facility that has not been used for at least three
(3) years and that is being reopened to provide additional
classroom space;
the estimated costs the school corporation expects to incur
annually to operate the facility.
(G) A statement of whether the school corporation expects to
appeal for a new facility adjustment (as defined in IC 20-45-1-16 (repealed) before January 1, 2009) for an increased
maximum permissible tuition support levy to pay the estimated
costs described in clause (F).
(H) The following information:
(i) The political subdivision's current debt service levy and
rate.
(ii) The estimated increase to the political subdivision's debt
service levy and rate that will result if the political
subdivision issues the bonds or enters into the lease.
(iii) The estimated amount of the political subdivision's debt
service levy and rate that will result during the following ten
(10) years if the political subdivision issues the bonds or
enters into the lease, after also considering any changes that
will occur to the debt service levy and rate during that period
on account of any outstanding bonds or lease obligations that
will mature or terminate during that period.
(I) The information specified in subdivision (1)(A) through
(1)(B).
(4) After notice is given, a petition requesting the application of
a petition and remonstrance process may be filed by the lesser of:
(A) five hundred (500) persons who are either owners of
property within the political subdivision or registered voters
residing within the political subdivision; or
(B) five percent (5%) of the registered voters residing within
the political subdivision.
(5) The state board of accounts shall design and, upon request by
the county voter registration office, deliver to the county voter
registration office or the county voter registration office's
designated printer the petition forms to be used solely in the
petition process described in this section. The county voter
registration office shall issue to an owner or owners of property
within the political subdivision or a registered voter residing
within the political subdivision the number of petition forms
requested by the owner or owners or the registered voter. Each
form must be accompanied by instructions detailing the
requirements that:
(A) the carrier and signers must be owners of property or
registered voters;
(B) the carrier must be a signatory on at least one (1) petition;
(C) after the signatures have been collected, the carrier must
swear or affirm before a notary public that the carrier witnessed
each signature; and
(D) govern the closing date for the petition period.
Persons requesting forms may be required to identify themselves
as owners of property or registered voters and may be allowed to
pick up additional copies to distribute to other owners of property
or registered voters. Each person signing a petition must indicate
whether the person is signing the petition as a registered voter
within the political subdivision or is signing the petition as the
owner of property within the political subdivision. A person who
signs a petition as a registered voter must indicate the address at
which the person is registered to vote. A person who signs a
petition as an owner of property must indicate the address of the
property owned by the person in the political subdivision.
(6) Each petition must be verified under oath by at least one (1)
qualified petitioner in a manner prescribed by the state board of
accounts before the petition is filed with the county voter
registration office under subdivision (7).
(7) Each petition must be filed with the county voter registration
office not more than thirty (30) days after publication under
subdivision (2) of the notice of the preliminary determination.
(8) The county voter registration office shall determine whether
each person who signed the petition is a registered voter.
However, after the county voter registration office has determined
that at least five hundred twenty-five (525) persons who signed
the petition are registered voters within the political subdivision,
the county voter registration office is not required to verify
whether the remaining persons who signed the petition are
registered voters. If the county voter registration office does not
determine that at least five hundred twenty-five (525) persons
who signed the petition are registered voters, the county voter
registration office shall, not more than fifteen (15) business days
after receiving a petition, forward a copy of the petition to the
county auditor. Not more than ten (10) business days after
receiving the copy of the petition, the county auditor shall provide
to the county voter registration office a statement verifying:
(A) whether a person who signed the petition as a registered
voter but is not a registered voter, as determined by the county
voter registration office, is the owner of property in the political
subdivision; and
(B) whether a person who signed the petition as an owner of
property within the political subdivision does in fact own
property within the political subdivision.
(9) The county voter registration office, not more than ten (10)
business days after determining that at least five hundred
twenty-five (525) persons who signed the petition are registered
voters or receiving the statement from the county auditor under
subdivision (8), as applicable, shall make the final determination
of the number of petitioners that are registered voters in the
political subdivision and, based on the statement provided by the
county auditor, the number of petitioners that own property within
the political subdivision. Whenever the name of an individual
who signs a petition form as a registered voter contains a minor
variation from the name of the registered voter as set forth in the
records of the county voter registration office, the signature is
presumed to be valid, and there is a presumption that the
individual is entitled to sign the petition under this section. Except
as otherwise provided in this chapter, in determining whether an
individual is a registered voter, the county voter registration office
shall apply the requirements and procedures used under IC 3 to
determine whether a person is a registered voter for purposes of
voting in an election governed by IC 3. However, an individual is
not required to comply with the provisions concerning providing
proof of identification to be considered a registered voter for
purposes of this chapter. A person is entitled to sign a petition
only one (1) time in a particular petition and remonstrance
process under this chapter, regardless of whether the person owns
more than one (1) parcel of real property, mobile home assessed
as personal property, or manufactured home assessed as personal
property, or a combination of those types of property within the
subdivision and regardless of whether the person is both a
registered voter in the political subdivision and the owner of
property within the political subdivision. Notwithstanding any
other provision of this section, if a petition is presented to the
county voter registration office within forty-five (45) days before
an election, the county voter registration office may defer acting
on the petition, and the time requirements under this section for
action by the county voter registration office do not begin to run
until five (5) days after the date of the election.
(10) The county voter registration office must file a certificate and
each petition with:
(A) the township trustee, if the political subdivision is a
township, who shall present the petition or petitions to the
township board; or
(B) the body that has the authority to authorize the issuance of
the bonds or the execution of a lease, if the political subdivision
is not a township;
within thirty-five (35) business days of the filing of the petition
requesting a petition and remonstrance process. The certificate
must state the number of petitioners that are owners of property
within the political subdivision and the number of petitioners who
are registered voters residing within the political subdivision.
If a sufficient petition requesting a petition and remonstrance process
is not filed by owners of property or registered voters as set forth in this
section, the political subdivision may issue bonds or enter into a lease
by following the provisions of law relating to the bonds to be issued or
lease to be entered into.
(c) A political subdivision may not divide a controlled project in
order to avoid the requirements of this section and section 3.2 of this
chapter. A person that owns property within a political subdivision or
a person that is a registered voter residing within a political subdivision
may file a petition with the department of local government finance
objecting that the political subdivision has divided a controlled project
in order to avoid the requirements of this section and section 3.2 of this
chapter. The petition must be filed not more than ten (10) days after the
political subdivision gives notice of the political subdivision's decision
to issue bonds or enter into leases for a capital project that the person
believes is the result of a division of a controlled project that is
prohibited by this subsection. If the department of local government
finance receives a petition under this subsection, the department shall
not later than thirty (30) days after receiving the petition make a final
determination on the issue of whether the political subdivision divided
a controlled project in order to avoid the requirements of this section
and section 3.2 of this chapter. If the department of local government
finance determines that a political subdivision divided a controlled
project in order to avoid the requirements of this section and section
3.2 of this chapter and the political subdivision continues to desire to
proceed with the project, the political subdivision shall fulfill the
requirements of this section and section 3.2 of this chapter, if
applicable, regardless of the cost of the project in dispute. A political
subdivision shall be considered to have divided a capital project in
order to avoid the requirements of this section and section 3.2 of this
chapter if the result of one (1) or more of the subprojects cannot
reasonably be considered an independently desirable end in itself
without reference to another capital project. This subsection does not
prohibit a political subdivision from undertaking a series of capital
projects in which the result of each capital project can reasonably be
considered an independently desirable end in itself without reference
to another capital project.

Legislative History

As added by P.L.25-1995, SEC.48. Amended by P.L.53-1996, SEC.2; P.L.56-1997, SEC.1; P.L.178-2002, SEC.31; P.L.1-2004, SEC.30 and P.L.23-2004, SEC.33; P.L.2-2006, SEC.54; P.L.219-2007, SEC.60; P.L.146-2008, SEC.191; P.L.182-2009(ss), SEC.143; P.L.41-2010, SEC.2; P.L.113-2010, SEC.33; P.L.42-2011, SEC.8; P.L.198-2011, SEC.1; P.L.218-2013, SEC.9; P.L.203-2015, SEC.2; P.L.138-2016, SEC.1; P.L.246-2017, SEC.3; P.L.159-2020, SEC.41; P.L.239-2023, SEC.7; P.L.136-2024, SEC.23; P.L.68-2025, SEC.66.