Indiana Code 6-1.1-18.5-3. Maximum ad valorem property tax levy; formula
STEP ONE: Determine the civil taxing unit’s maximum permissible ad valorem property tax levy for the preceding calendar year.
Terms Used In Indiana Code 6-1.1-18.5-3
- Ad valorem property tax levy for an ensuing calendar year: means the total property taxes imposed by a civil taxing unit for current property taxes collectible in that ensuing calendar year. See Indiana Code 6-1.1-18.5-1
- Appeal: A request made after a trial, asking another court (usually the court of appeals) to decide whether the trial was conducted properly. To make such a request is "to appeal" or "to take an appeal." One who appeals is called the appellant.
- Civil taxing unit: means any taxing unit except a school corporation. See Indiana Code 6-1.1-18.5-1
- Maximum permissible ad valorem property tax levy for the preceding calendar year: means , for purposes of determining a maximum permissible ad valorem property tax levy under section 3 of this chapter for property taxes imposed for an assessment date after January 15, 2011, the term means the civil taxing unit's maximum permissible ad valorem property tax levy for the calendar year immediately preceding the ensuing calendar year, as that levy was determined under section 3 of this chapter (regardless of whether the taxing unit imposed the entire amount of the maximum permissible ad valorem property tax levy in the immediately preceding year). See Indiana Code 6-1.1-18.5-1
- Property: includes personal and real property. See Indiana Code 1-1-4-5
- Taxable property: means all tangible property that is subject to the tax imposed by this article and is not exempt from the tax under Indiana Code 6-1.1-18.5-1
- Year: means a calendar year, unless otherwise expressed. See Indiana Code 1-1-4-5
STEP THREE: Determine the lesser of one and fifteen hundredths (1.15) or the quotient (rounded to the nearest ten-thousandth (0.0001)), of the assessed value of all taxable property subject to the civil taxing unit’s ad valorem property tax levy for the ensuing calendar year, divided by the assessed value of all taxable property that is subject to the civil taxing unit’s ad valorem property tax levy for the ensuing calendar year and that is contained within the geographic area that was subject to the civil taxing unit’s ad valorem property tax levy in the preceding calendar year.
STEP FOUR: Determine the greater of the amount determined in STEP THREE or one (1).
STEP FIVE: Multiply the amount determined in STEP TWO by the amount determined in STEP FOUR.
STEP SIX: Add the amount determined under STEP TWO to the amount of an excessive levy appeal granted under section 13 of this chapter for the ensuing calendar year.
STEP SEVEN: Determine the greater of STEP FIVE or STEP SIX.
(b) This subsection applies only to a civil taxing unit that is located in a county that is covered by IC 6-3.6-11-1. For purposes of subsection (a), revenue under IC 6-3.6-6 that is applied for purposes of a levy freeze shall not be included in the amount determined under STEP ONE of subsection (a) for the civil taxing unit. Notwithstanding any provision in this section, any other section of this chapter, or IC 12-20-21-3.2, and except as provided in subsection (c), if the adopting body has adopted a resolution specifying that any increase in the maximum levy is to be funded using local income tax revenue, the maximum permissible ad valorem property tax levy calculated under this section for the ensuing calendar year for the civil taxing unit is equal to the civil taxing unit’s maximum permissible ad valorem property tax levy for the current calendar year. If the adopting body has adopted a resolution specifying that any increase in the maximum levy is not to be funded using local income tax revenue, the maximum permissible ad valorem property tax levy for the civil taxing unit is equal to the civil taxing unit’s maximum permissible ad valorem property tax levy calculated under this section for the ensuing calendar year.
(c) In the case of a civil taxing unit that:
(1) is partially located in a county that is covered by IC 6-3.6-11-1; and
(2) is partially located in a county that is not described in subdivision (1);
the department of local government finance shall, notwithstanding subsection (b), adjust the portion of the civil taxing unit’s maximum permissible ad valorem property tax levy that is attributable (as determined by the department of local government finance) to the county or counties described in subdivision (2). The department of local government finance shall adjust this portion of the civil taxing unit’s maximum permissible ad valorem property tax levy so that, notwithstanding subsection (b), this portion is allowed to increase as otherwise provided in this section. If the department of local government finance increases the civil taxing unit’s maximum permissible ad valorem property tax levy under this subsection, any additional property taxes imposed by the civil taxing unit under the adjustment shall be paid only by the taxpayers in the county or counties described in subdivision (2).
As added by P.L.73-1983, SEC.1. Amended by P.L.64-1986, SEC.1; P.L.78-1987, SEC.4; P.L.151-2001, SEC.4; P.L.198-2001, SEC.53; P.L.1-2002, SEC.21; P.L.192-2002(ss), SEC.36; P.L.1-2003, SEC.25; P.L.224-2007, SEC.20; P.L.146-2008, SEC.169; P.L.42-2011, SEC.7; P.L.172-2011, SEC.35; P.L.234-2013, SEC.1; P.L.153-2014, SEC.1; P.L.197-2016, SEC.14; P.L.247-2017, SEC.1.