§ 6-1.1-21.8-4 — Loan terms; repayment schedule

Indiana § 6-1.1-21.8-4

• Jurisdiction: Indiana
• Art. 1.1: PROPERTY TAXES
• Ch. 21.8: Rainy Day Fund Loans to Qualified Taxing Units

Text

(a) The board shall determine the terms of
a loan made under this chapter. However, the interest charged on the
loan may not exceed the percent of increase in the United States
Department of Labor Consumer Price Index for Urban Wage Earners
and Clerical Workers during the most recent twelve (12) month period
for which data is available as of the date that the unit applies for a loan
under this chapter. In the case of a qualified taxing unit that is not a
school corporation or a public library (as defined in IC 36-12-1-5), a
loan must be repaid not later than ten (10) years after the date on which
the loan was made. In the case of a qualified taxing unit that is a school
corporation or a public library (as defined in IC 36-12-1-5), a loan must
be repaid not later than eleven (11) years after the date on which the
loan was made. A school corporation or a public library (as defined in
IC 36-12-1-5) is not required to begin making payments to repay a loan
until after June 30, 2004. The total amount of all the loans made under
this chapter may not exceed twenty-eight million dollars ($28,000,000).
The board may disburse the proceeds of a loan in installments.
However, not more than one-third (1/3) of the total amount to be
loaned under this chapter may be disbursed at any particular time
without the review of the budget committee and the approval of the
budget agency.
(b) A loan made under this chapter shall be repaid only from:
(1) property tax revenues of the qualified taxing unit that are
subject to the levy limitations imposed by IC 6-1.1-18.5;
(2) in the case of a school corporation, the school corporation's
debt service fund; or
(3) any other source of revenues (other than property taxes) that
is legally available to the qualified taxing unit.
The payment of any installment of principal constitutes a first charge
against the property tax revenues described in subdivision (1) that are
collected by the qualified taxing unit during the calendar year the
installment is due and payable.
(c) The obligation to repay a loan made under this chapter is not a
basis for the qualified taxing unit to obtain an excessive tax levy under
IC 6-1.1-18.5.
(d) Whenever the board receives a payment on a loan made under
this chapter, the board shall deposit the amount paid in the
counter-cyclical revenue and economic stabilization fund.
(e) This section does not prohibit a qualified taxing unit from
repaying a loan made under this chapter before the date specified in
subsection (a) if a taxpayer described in section 3 of this chapter
resumes paying property taxes to the qualified taxing unit.
(f) Interest accrues on a loan made under this chapter until the date
the board receives notice from the county auditor that the county has
adopted a local income tax under IC 6-3.6. Notwithstanding subsection
(a), interest may not be charged on a loan made under this chapter if a
tax described in this subsection is adopted before a qualified taxing
unit applies for the loan.

Legislative History

As added by P.L.157-2002, SEC.1. Amended by P.L.267-2003, SEC.2; P.L.1-2005, SEC.93; P.L.228-2005, SEC.23 and P.L.246-2005, SEC.66; P.L.2-2006, SEC.62; P.L.146-2008, SEC.244; P.L.197-2016, SEC.19.