§ 6-1.1-20-3.5 — Procedures required before imposing property taxes for bonds or lease for certain projects; thresholds; petition requesting initiation of referendum

Indiana § 6-1.1-20-3.5

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

Text

5. (a) This section applies only to a controlled
project that meets the following conditions:
(1) The controlled project is described in one (1) of the following
categories:
(A) An elementary school building, middle school building,
high school building, or other school building for academic
instruction that will be used for any combination of
kindergarten through grade 12 and will 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).
(B) Any other controlled project that is not a controlled project
described in clause (A) and will 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).
(C) Any other controlled project for which a political
subdivision adopts an ordinance or resolution making a
preliminary determination to issue bonds or enter into a lease
for the project, if the sum of:
(i) the cost of that controlled project; plus
(ii) the costs of all other controlled projects for which the
political subdivision has previously adopted within the
preceding three hundred sixty-five (365) days an ordinance
or resolution making a preliminary determination to issue
bonds or enter into a lease for those other controlled projects;
exceeds twenty-five million dollars ($25,000,000).
(D) 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 4.3(c) of
this chapter.
(E) This clause 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. Except as provided in section 4.5 of this
chapter, any other controlled project if the political
subdivision's total debt service tax rate is at least eighty cents
($0.80) per one hundred dollars ($100) of assessed value. This
clause expires December 31, 2025. For purposes of this clause,
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.
(F) Except as provided in section 4.5 of this chapter, any other
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, if:
(i) in the case of a school corporation, the school
corporation's total debt service tax rate is more than seventy
cents ($0.70) per one hundred dollars ($100) of assessed
value;
(ii) in the case of a city, county, or town, the city's, county's,
or town's total debt service tax rate is more than forty cents
($0.40) per one hundred dollars ($100) of assessed value; or
(iii) in the case of a political subdivision not described in
item (i) or (ii), the political subdivision's total debt service tax
rate is more than ten cents ($0.10) per one hundred dollars
($100) of assessed value.
However, this clause 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 clause, 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.
(2) The proper officers of the political subdivision make a
preliminary determination after June 30, 2008, in the manner
described in subsection (b) to issue bonds or enter into a lease for
the controlled project.
(b) Subject to subsection (d), 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 notices of any meeting to consider the adoption of an
ordinance or a resolution making a preliminary determination to
issue bonds or enter into a lease and shall conduct at least two (2)
public hearings on the preliminary determination before adoption
of the ordinance or resolution. 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)(G).
(2) If the proper officers of a political subdivision make a
preliminary determination to issue bonds or enter into a lease, 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 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 the proposed debt service or lease
payments must be approved in an election on a local public
question held under section 3.6 of this chapter.
(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 annually
incur to operate the facility.
(G) 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.
(H) The information specified in subdivision (1)(A) through
(1)(B).
(4) This subdivision does not apply to a controlled project
described in subsection (a)(1)(E) (before its expiration) or
subsection (a)(1)(F). After notice is given, a petition requesting
the application of the local public question process under section
3.6 of this chapter 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) This subdivision does not apply to a controlled project
described in subsection (a)(1)(E) (before its expiration) or
subsection (a)(1)(F). 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) This subdivision does not apply to a controlled project
described in subsection (a)(1)(E) (before its expiration) or
subsection (a)(1)(F). 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) This subdivision does not apply to a controlled project
described in subsection (a)(1)(E) (before its expiration) or
subsection (a)(1)(F). 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) This subdivision does not apply to a controlled project
described in subsection (a)(1)(E) (before its expiration) or
subsection (a)(1)(F). 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, not more than fifteen (15)
business days after receiving a petition, shall 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) This subdivision does not apply to a controlled project
described in subsection (a)(1)(E) (before its expiration) or
subsection (a)(1)(F). 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 after receiving the statement from the
county auditor under subdivision (8), as applicable, shall make
the final determination of whether a sufficient number of persons
have signed the petition. 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 referendum 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 political
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) This subdivision does not apply to a controlled project
described in subsection (a)(1)(E) (before its expiration) or
subsection (a)(1)(F). 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 the referendum process. The certificate must state the
number of petitioners who are owners of property within the
political subdivision and the number of petitioners who are
registered voters residing within the political subdivision.
(11) This subdivision does not apply to a controlled project
described in subsection (a)(1)(E) (before its expiration) or
subsection (a)(1)(F). If a sufficient petition requesting the local
public question 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) If the proper officers of a political subdivision make a
preliminary determination to issue bonds or enter into a lease, the
officers shall provide to the county auditor:
(1) a copy of the notice required by subsection (b)(2); and
(2) any other information the county auditor requires to fulfill the
county auditor's duties under section 3.6 of this chapter.
(d) In addition to the procedures in subsection (b), if any capital
improvement components addressed in the most recent:
(1) threat assessment of the buildings within the school
corporation; or
(2) school safety plan (as described in IC 20-26-18.2-2(b));
concerning a particular school have not been completed or require
additional funding to be completed, before the school corporation may
impose property taxes to pay debt service on bonds or lease rentals for
a lease for a controlled project, and in addition to any other components
of the controlled project, the controlled project must include any capital
improvements necessary to complete those components described in
subdivisions (1) and (2) that have not been completed or that require
additional funding to be completed.
(e) In addition to the other procedures in this section, an ordinance
or resolution making a preliminary determination to issue bonds or
enter into leases that is considered for adoption must include a
statement of:
(1) the maximum annual debt service for the controlled project for
each year in which the debt service will be paid; and
(2) the schedule of the estimated annual tax levy and rate over a
ten (10) year period;
factoring in changes that will occur to the debt service levy and tax rate
during the period on account of any outstanding bonds or lease
obligations that will mature or terminate during the period.

Legislative History

As added by P.L.146-2008, SEC.193. Amended by P.L.182-2009(ss), SEC.145; P.L.41-2010, SEC.4; P.L.113-2010, SEC.35; P.L.218-2013, SEC.10; P.L.138-2016, SEC.2; P.L.246-2017, SEC.5; P.L.272-2019, SEC.1; P.L.159-2020, SEC.42; P.L.136-2021, SEC.3; P.L.239-2023, SEC.8; P.L.136-2024, SEC.24; P.L.68-2025, SEC.67.