Adjustment of maximum tax rates after reassessment or annual
adjustment
Sec. 12. (a) For purposes of this section, "maximum rate" refers
to the maximum:
(1) property tax rate or rates; or
(2) special benefits tax rate or rates;
referred to in the statutes listed in subsection (d).
(b) The maximum rate for taxes first due and payable after 2003
is the maximum rate that would have been determined under
subsection (e) for taxes first due and payable in 2003 if subsection
(e) had applied for taxes first due and payable in 2003.
(c) The maximum rate must be adjusted:
(1) each time an annual adjustment of the assessed value of real
property takes effect under IC 6-1.1-4-4.5; and
(2) each time a general reassessment of real property takes
effect under IC 6-1.1-4-4.
(d) The statutes to which subsection (a) refers are:
(1) IC 8-10-5-17;
(2) IC 8-22-3-11;
(3) IC 8-22-3-25;
(4) IC 12-29-1-1;
(5) IC 12-29-1-2;
(6) IC 12-29-1-3;
(7) IC 12-29-3-6;
(8) IC 13-21-3-12;
(9) IC 13-21-3-15;
(10) IC 14-27-6-30;
(11) IC 14-33-7-3;
(12) IC 14-33-21-5;
(13) IC 15-1-6-2;
(14) IC 15-1-8-1;
(15) IC 15-1-8-2;
(16) IC 16-20-2-18;
(17) IC 16-20-4-27;
(18) IC 16-20-7-2;
(19) IC 16-23-1-29;
(20) IC 16-23-3-6;
(21) IC 16-23-4-2;
(22) IC 16-23-5-6;
(23) IC 16-23-7-2;
(24) IC 16-23-8-2;
(25) IC 16-23-9-2;
(26) IC 16-41-15-5;
(27) IC 16-41-33-4;
(28) IC 20-26-8-4;
(29) IC 21-1-11-3;
(30) IC 21-2-17-2;
(31) IC 23-13-17-1;
(32) IC 23-14-66-2;
(33) IC 23-14-67-3;
(34) IC 36-7-13-4;
(35) IC 36-7-14-28;
(36) IC 36-7-15.1-16;
(37) IC 36-8-19-8.5;
(43) (38) IC 36-9-6.1-2;
(44) (39) IC 36-9-17.5-4;
(45) (40) IC 36-9-27-73;
(46) (41) IC 36-9-29-31;
(47) (42) IC 36-9-29.1-15;
(48) (43) IC 36-10-6-2;
(49) (44) IC 36-10-7-7;
(50) (45) IC 36-10-7-8;
(51) (46) IC 36-10-7.5-19;
(47) IC 36-10-13-5;
(48) IC 36-10-13-7;
(49) IC 36-12-7-7;
(50) IC 36-12-7-8;
(51) IC 36-12-12-10; and
(52) any statute enacted after December 31, 2003, that:
(A) establishes a maximum rate for any part of the:
(i) property taxes; or
(ii) special benefits taxes;
imposed by a political subdivision; and
(B) does not exempt the maximum rate from the adjustment
under this section.
(e) The new maximum rate under a statute listed in subsection (d)
is the tax rate determined under STEP SEVEN of the following
STEPS:
STEP ONE: Determine the maximum rate for the political
subdivision levying a property tax or special benefits tax under
the statute for the year preceding the year in which the annual
adjustment or general reassessment takes effect.
STEP TWO: Determine the actual percentage increase (rounded
to the nearest one-hundredth percent (0.01%)) in the assessed
value (before the adjustment, if any, under IC 6-1.1-4-4.5) of
the taxable property from the year preceding the year the annual
adjustment or general reassessment takes effect to the year that
the annual adjustment or general reassessment takes effect.
STEP THREE: Determine the three (3) calendar years that
immediately precede the ensuing calendar year and in which a
statewide general reassessment of real property does not first
take effect.
STEP FOUR: Compute separately, for each of the calendar
years determined in STEP THREE, the actual percentage
increase (rounded to the nearest one-hundredth percent
(0.01%)) in the assessed value (before the adjustment, if any,
under IC 6-1.1-4-4.5) of the taxable property from the preceding
year.
STEP FIVE: Divide the sum of the three (3) quotients computed
in STEP FOUR by three (3).
STEP SIX: Determine the greater of the following:
(A) Zero (0).
(B) The result of the STEP TWO percentage minus the
STEP FIVE percentage.
STEP SEVEN: Determine the quotient of the STEP ONE tax
rate divided by the sum of one (1) plus the STEP SIX
percentage increase.
(f) The department of local government finance shall compute the
maximum rate allowed under subsection (e) and provide the rate to
each political subdivision with authority to levy a tax under a statute
listed in subsection (d).
As added by P.L.1-2004, SEC.20 and P.L.23-2004, SEC.21. Amended
by P.L.78-2004, SEC.1; P.L.1-2005, SEC.87.
Last modified: May 28, 2006