§ 6-1.1-20.6-9.8 — Allocation of taxes exempted from credit

Indiana § 6-1.1-20.6-9.8

• Jurisdiction: Indiana
• Art. 1.1: PROPERTY TAXES
• Ch. 20.6: Credit for Excessive Property Taxes

Text

8. (a) This section applies to property taxes
first due and payable after December 31, 2009.
(b) The following definitions apply throughout this section:
(1) "Debt service obligations of a political subdivision" refers to:
(A) the principal and interest payable during a calendar year on
bonds; and
(B) lease rental payments payable during a calendar year on
leases;
of a political subdivision payable from ad valorem property taxes.
(2) "Protected taxes" refers to the following:
(A) Property taxes that are exempted from the application of a
credit granted under section 7 or 7.5 of this chapter by section
7(b), 7(c), 7.5(b), or 7.5(c) of this chapter or another law.
(B) Property taxes imposed by a political subdivision to pay for
debt service obligations of a political subdivision that are not
exempted from the application of a credit granted under section
7 or 7.5 of this chapter by section 7(b), 7(c), 7.5(b), or 7.5(c) of
this chapter or any other law. Property taxes described in this
clause are subject to the credit granted under section 7 or 7.5 of
this chapter by section 7(b), 7(c), 7.5(b), or 7.5(c) of this
chapter regardless of their designation as protected taxes.
(3) "Unprotected taxes" refers to property taxes that are not
protected taxes.
(c) Except as provided in section 9.9 of this chapter, the total
amount of revenue to be distributed to the fund for which the protected
taxes were imposed shall be determined as if no credit were granted
under section 7 or 7.5 of this chapter. The total amount of the loss in
revenue resulting from the granting of credits under section 7 or 7.5 of
this chapter must reduce only the amount of unprotected taxes
distributed to a fund using the following criteria:
(1) The reduction may be allocated in the amounts determined by
the political subdivision using a combination of unprotected taxes
of the political subdivision in those taxing districts in which the
credit caused a reduction in protected taxes.
(2) The tax revenue and each fund of any other political
subdivisions must not be affected by the reduction.
(d) When:
(1) the revenue that otherwise would be distributed to a fund
receiving only unprotected taxes is reduced entirely under
subsection (c) and the remaining revenue is insufficient for a fund
receiving protected taxes to receive the revenue specified by
subsection (c); or
(2) there is not a fund receiving only unprotected taxes from
which to distribute revenue;
the revenue distributed to the fund receiving protected taxes must also
be reduced. If the revenue distributed to a fund receiving protected
taxes is reduced, the political subdivision may transfer money from one
(1) or more of the other funds of the political subdivision to offset the
loss in revenue to the fund receiving protected taxes. The transfer is
limited to the amount necessary for the fund receiving protected taxes
to receive the revenue specified under subsection (c). The amount
transferred shall be specifically identified as a debt service obligation
transfer for each affected fund.

Legislative History

As added by P.L.172-2011, SEC.42. Amended by P.L.137-2012, SEC.35; P.L.257-2013, SEC.29; P.L.244-2017, SEC.12; P.L.9-2024, SEC.171.