Version a
General fund ad valorem property tax levy; assessment ratio and
adjustment factor
Note: This version of section effective until 1-1-2006. See also
following version of this section, effective 1-1-2006.
Sec. 1.5. (a) The following definitions apply throughout this
section and IC 21-3-1.7:
(1) "Adjustment factor" means the adjustment factor determined
by the department of local government finance for a school
corporation under IC 6-1.1-34.
(2) "Adjusted target property tax rate" means:
(A) the school corporation's target general fund property tax
rate determined under IC 21-3-1.7-6.8; multiplied by
(B) the school corporation's adjustment factor.
(3) "Previous year property tax rate" means the school
corporation's previous year general fund property tax rate after
the reductions cited in IC 21-3-1.7-5(1), IC 21-3-1.7-5(2), and
IC 21-3-1.7-5(3).
(b) Except as otherwise provided in this chapter, a school
corporation may not, for a calendar year beginning after December
31, 2004, impose a general fund ad valorem property tax levy which
exceeds the following:
STEP ONE: Determine the result of:
(A) the school corporation's adjusted target property tax rate;
minus
(B) the school corporation's previous year property tax rate.
STEP TWO: If the school corporation's adjusted target property
tax rate:
(A) exceeds the school corporation's previous year property
tax rate, perform the calculation under STEP THREE and
not under STEP FOUR;
(B) is less than the school corporation's previous year
property tax rate, perform the calculation under STEP FOUR
and not under STEP THREE; or
(C) equals the school corporation's previous year property
tax rate, determine the levy resulting from using the school
corporation's adjusted target property tax rate and do not
perform the calculation under STEP THREE or STEP
FOUR.
STEP THREE: Determine the levy resulting from using the
school corporation's previous year property tax rate after
increasing the rate by the lesser of:
(A) the STEP ONE result; or
(B) five cents ($0.05).
STEP FOUR: Determine the levy resulting from using the
school corporation's previous year property tax rate after
reducing the rate by the lesser of:
(A) the absolute value of the STEP ONE result; or
(B) five cents ($0.05).
STEP FIVE: Determine the result of:
(A) the STEP TWO (C), STEP THREE, or STEP FOUR
result, whichever applies; plus
(B) an amount equal to the annual decrease in federal aid to
impacted areas from the year preceding the ensuing calendar
year by three (3) years to the year preceding the ensuing
calendar year by two (2) years.
The maximum levy is to include the portion of any excessive
levy and the levy for new facilities.
STEP SIX: Determine the result of:
(A) the STEP FIVE result; plus
(B) the product of:
(i) the weighted average of the amounts determined under
IC 21-3-1.7-6.7(e) STEP NINE for all charter schools
attended by students who have legal settlement in the
school corporation; multiplied by
(ii) thirty-five hundredths (0.35).
In determining the number of students for purposes of this
STEP, each kindergarten pupil shall be counted as one-half
(1/2) pupil.
The result determined under this STEP may not be included in
the school corporation's adjusted base levy for the year
following the year in which the result applies or in the school
corporation's determination of tuition support.
(c) For purposes of this section, "total assessed value" with
respect to a school corporation means the total assessed value of all
taxable property for ad valorem property taxes first due and payable
during that year.
(d) The department of local government finance shall annually
establish an assessment ratio and adjustment factor for each school
corporation to be used upon the review and recommendation of the
budget committee. The information compiled, including background
documentation, may not be used in a:
(1) review of an assessment under IC 6-1.1-8, IC 6-1.1-13,
IC 6-1.1-14, or IC 6-1.1-15;
(2) petition for a correction of error under IC 6-1.1-15-12; or
(3) petition for refund under IC 6-1.1-26.
(e) All tax rates shall be computed by rounding the rate to the
nearest one-hundredth of a cent ($0.0001). All tax levies shall be
computed by rounding the levy to the nearest dollar amount.
(f) For the calendar year beginning January 1, 2004, and ending
December 31, 2004, a school corporation may impose a general fund
ad valorem property tax levy in the amount determined under STEP
EIGHT of the following formula:
STEP ONE: Determine the quotient of:
(A) the school corporation's 2003 assessed valuation;
divided by
(B) the school corporation's 2002 assessed valuation.
STEP TWO: Determine the greater of zero (0) or the difference
between:
(A) the STEP ONE amount; minus
(B) one (1).
STEP THREE: Determine the lesser of eleven-hundredths
(0.11) or the product of:
(A) the STEP TWO amount; multiplied by
(B) eleven-hundredths (0.11).
STEP FOUR: Determine the sum of:
(A) the STEP THREE amount; plus
(B) one (1).
STEP FIVE: Determine the product of:
(A) the STEP FOUR amount; multiplied by
(B) the school corporation's general fund ad valorem
property tax levy for calendar year 2003.
STEP SIX: Determine the lesser of:
(A) the STEP FIVE amount; or
(B) the levy resulting from using the school corporation's
previous year property tax rate after increasing the rate by
five cents ($0.05).
STEP SEVEN: Determine the result of:
(A) the STEP SIX amount; plus
(B) an amount equal to the annual decrease in federal aid to
impacted areas from the year preceding the ensuing calendar
year by three (3) years to the year preceding the ensuing
calendar year by two (2) years.
The maximum levy is to include the part of any excessive levy
and the levy for new facilities.
STEP EIGHT: Determine the result of:
(A) the STEP SEVEN result; plus
(B) the product of:
(i) the weighted average of the amounts determined under
IC 21-3-1.7-6.7(e) STEP NINE for all charter schools
attended by students who have legal settlement in the
school corporation; multiplied by
(ii) thirty-five hundredths (0.35).
In determining the number of students for purposes of this
STEP, each kindergarten pupil shall be counted as one-half
(1/2) pupil.
The result determined under this STEP may not be included in
the school corporation's adjusted base levy for the year
following the year in which the result applies or in the school
corporation's determination of tuition support.
As added by Acts 1978, P.L.34, SEC.2. Amended by Acts 1979,
P.L.208, SEC.8; Acts 1982, P.L.46, SEC.1; P.L.65-1985, SEC.17;
P.L.24-1986, SEC.18; P.L.382-1987(ss), SEC.52; P.L.5-1988,
SEC.43; P.L.345-1989(ss), SEC.1; P.L.51-1990, SEC.1; P.L.1-1991,
SEC.40; P.L.240-1991(ss2), SEC.48; P.L.277-1993(ss), SEC.84;
P.L.278-1993(ss), SEC.3; P.L.1-1994, SEC.26; P.L.38-1994, SEC.1;
P.L.340-1995, SEC.41; P.L.30-1996, SEC.2; P.L.260-1997(ss),
SEC.48; P.L.273-1999, SEC.129; P.L.291-2001, SEC.89;
P.L.90-2002, SEC.173; P.L.224-2003, SEC.136; P.L.276-2003,
SEC.1; P.L.1-2004, SEC.27 and P.L.23-2004, SEC.29.
Last modified: May 28, 2006