Sec. 10.5. (a) The fiscal officer of a taxing unit may establish a separate fund known as the property tax assessment appeals fund to hold property tax receipts that are attributable to an increase in the taxing unit’s tax rate caused by a reduction in the taxing unit’s net assessed value under IC 6-1.1-17-0.5.

     (b) A taxing unit may transfer property tax receipts from a fund that is not a debt service fund to the taxing unit’s property tax assessment appeals fund. A taxing unit may not transfer property tax receipts from a debt service fund to the taxing unit’s property tax assessment appeals fund.

     (c) A taxing unit may use money in the taxing unit’s property tax assessment appeals fund only to pay the following:

(1) Expenses incurred by a county assessor or county auditor in defending appeals prosecuted under this chapter with respect to property located in the taxing unit.

(2) Refunds under IC 6-1.1-26-3.1.

     (d) The balance in a taxing unit’s property tax assessment appeals fund may not exceed five percent (5%) of the amount budgeted by the taxing unit for a particular year.

     (e) Money transferred to a taxing unit’s property tax assessment appeals fund is not considered miscellaneous revenue. Both the taxing unit and the department of local government finance shall disregard any balance in the taxing unit’s property tax assessment appeals fund in the determination of the taxing unit’s property tax levy, property tax rate, and budget (except for appropriations for the purposes permitted by subsection (c)) for a particular calendar year.

     (f) Property tax receipts that qualify as levy excess under IC 6-1.1-18.5-17 and IC 20-44-3 must be treated as levy excess and are not eligible for transfer to a taxing unit’s property tax assessment appeals fund.

As added by P.L.244-2015, SEC.2. Amended by P.L.203-2016, SEC.7; P.L.232-2017, SEC.15; P.L.121-2019, SEC.11.