Department of local government finance action on political
subdivision budget, tax rate, and tax levy; hearing; limitations;
appeal
Sec. 16. (a) Subject to the limitations and requirements prescribed
in this section, the department of local government finance may
revise, reduce, or increase a political subdivision's budget by fund,
tax rate, or tax levy which the department reviews under section 8 or
10 of this chapter.
(b) Subject to the limitations and requirements prescribed in this
section, the department of local government finance may review,
revise, reduce, or increase the budget by fund, tax rate, or tax levy of
any of the political subdivisions whose tax rates compose the
aggregate tax rate within a political subdivision whose budget, tax
rate, or tax levy is the subject of an appeal initiated under this
chapter.
(c) Except as provided in subsections (j) and (k), before the
department of local government finance reviews, revises, reduces, or
increases a political subdivision's budget by fund, tax rate, or tax levy
under this section, the department must hold a public hearing on the
budget, tax rate, and tax levy. The department of local government
finance shall hold the hearing in the county in which the political
subdivision is located. The department of local government finance
may consider the budgets by fund, tax rates, and tax levies of several
political subdivisions at the same public hearing. At least five (5)
days before the date fixed for a public hearing, the department of
local government finance shall give notice of the time and place of
the hearing and of the budgets by fund, levies, and tax rates to be
considered at the hearing. The department of local government
finance shall publish the notice in two (2) newspapers of general
circulation published in the county. However, if only one (1)
newspaper of general circulation is published in the county, the
department of local government finance shall publish the notice in
that newspaper.
(d) Except as provided in subsection (i), IC 6-1.1-19, or
IC 6-1.1-18.5, the department of local government finance may not
increase a political subdivision's budget by fund, tax rate, or tax levy
to an amount which exceeds the amount originally fixed by the
political subdivision. The department of local government finance
shall give the political subdivision written notification specifying any
revision, reduction, or increase the department proposes in a political
subdivision's tax levy or tax rate. The political subdivision has one
(1) week from the date the political subdivision receives the notice
to provide a written response to the department of local government
finance's Indianapolis office specifying how to make the required
reductions in the amount budgeted by fund. The department of local
government finance shall make reductions as specified in the
political subdivision's response if the response is provided as
required by this subsection and sufficiently specifies all necessary
reductions. The department of local government finance may make
a revision, a reduction, or an increase in a political subdivision's
budget only by fund.
(e) The department of local government finance may not approve
a levy for lease payments by a city, town, county, library, or school
corporation if the lease payments are payable to a building
corporation for use by the building corporation for debt service on
bonds and if:
(1) no bonds of the building corporation are outstanding; or
(2) the building corporation has enough legally available funds
on hand to redeem all outstanding bonds payable from the
particular lease rental levy requested.
(f) The department of local government finance shall certify its
action to:
(1) the county auditor;
(2) the political subdivision if the department acts pursuant to
an appeal initiated by the political subdivision;
(3) the first ten (10) taxpayers whose names appear on a petition
filed under section 13 of this chapter; and
(4) a taxpayer that owns property that represents at least ten
percent (10%) of the taxable assessed valuation in the political
subdivision.
(g) The following may petition for judicial review of the final
determination of the department of local government finance under
subsection (f):
(1) If the department acts under an appeal initiated by a political
subdivision, the political subdivision.
(2) If the department acts under an appeal initiated by taxpayers
under section 13 of this chapter, a taxpayer who signed the
petition under that section.
(3) If the department acts under an appeal initiated by the
county auditor under section 14 of this chapter, the county
auditor.
(4) A taxpayer that owns property that represents at least ten
percent (10%) of the taxable assessed valuation in the political
subdivision.
The petition must be filed in the tax court not more than forty-five
(45) days after the department certifies its action under subsection
(f).
(h) The department of local government finance is expressly
directed to complete the duties assigned to it under this section not
later than February 15th of each year for taxes to be collected during
that year.
(i) Subject to the provisions of all applicable statutes, the
department of local government finance may increase a political
subdivision's tax levy to an amount that exceeds the amount
originally fixed by the political subdivision if the increase is:
(1) requested in writing by the officers of the political
subdivision;
(2) either:
(A) based on information first obtained by the political
subdivision after the public hearing under section 3 of this
chapter; or
(B) results from an inadvertent mathematical error made in
determining the levy; and
(3) published by the political subdivision according to a notice
provided by the department.
(j) The department of local government finance shall annually
review the budget by fund of each school corporation not later than
April 1. The department of local government finance shall give the
school corporation written notification specifying any revision,
reduction, or increase the department proposes in the school
corporation's budget by fund. A public hearing is not required in
connection with this review of the budget.
(k) The department of local government finance may hold a
hearing under subsection (c) only if the notice required in
IC 6-1.1-17-12 is published at least ten (10) days before the date of
the hearing.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.73-1983,
SEC.7; P.L.35-1990, SEC.7; P.L.35-1994, SEC.2; P.L.85-1995,
SEC.3; P.L.86-1995, SEC.5; P.L.49-1996, SEC.4; P.L.50-1996,
SEC.9; P.L.90-2002, SEC.156; P.L.256-2003, SEC.15;
P.L.228-2005, SEC.21.
Last modified: May 28, 2006