Maximum political subdivision tax rate
Sec. 3. (a) Except as provided in subsection (b), the sum of all tax
rates for all political subdivisions imposed on tangible property
within a political subdivision may not exceed:
(1) forty-one and sixty-seven hundredths cents ($0.4167) on
each one hundred dollars ($100) of assessed valuation in
territory outside the corporate limits of a city or town; or
(2) sixty-six and sixty-seven hundredths cents ($0.6667) on
each one hundred dollars ($100) of assessed valuation in
territory inside the corporate limits of a city or town.
(b) The proper officers of a political subdivision shall fix tax rates
which are sufficient to provide funds for the purposes itemized in
this subsection. The portion of a tax rate fixed by a political
subdivision shall not be considered in computing the tax rate limits
prescribed in subsection (a) if that portion is to be used for one (1)
of the following purposes:
(1) To pay the principal or interest on a funding, refunding, or
judgment funding obligation of the political subdivision.
(2) To pay the principal or interest on an outstanding obligation
issued by the political subdivision if notice of the sale of the
obligation was published before March 9, 1937.
(3) To pay the principal or interest upon:
(A) an obligation issued by the political subdivision to meet
an emergency which results from a flood, fire, pestilence,
war, or any other major disaster; or
(B) a note issued under IC 36-2-6-18, IC 36-3-4-22,
IC 36-4-6-20, or IC 36-5-2-11 to enable a city, town, or
county to acquire necessary equipment or facilities for
municipal or county government.
(4) To pay the principal or interest upon an obligation issued in
the manner provided in IC 6-1.1-20-3 (before its repeal) or
IC 6-1.1-20-3.1 through IC 6-1.1-20-3.2.
(5) To pay a judgment rendered against the political
subdivision.
(6) To meet the requirements of the family and children's fund
for child services (as defined in IC 12-19-7-1).
(7) To meet the requirements of the county hospital care for the
indigent fund.
(8) To meet the requirements of the children's psychiatric
residential treatment services fund for children's psychiatric
residential treatment services (as defined in IC 12-19-7.5-1).
(c) Except as otherwise provided in IC 6-1.1-19 or IC 6-1.1-18.5,
a county board of tax adjustment, a county auditor, or the department
of local government finance may review the portion of a tax rate
described in subsection (b) only to determine if it exceeds the portion
actually needed to provide for one (1) of the purposes itemized in
that subsection.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.73-1983,
SEC.10; P.L.16-1986, SEC.3; P.L.37-1988, SEC.7; P.L.36-1994,
SEC.2; P.L.25-1995, SEC.27; P.L.273-1999, SEC.53; P.L.273-1999,
SEC.54; P.L.90-2002, SEC.160; P.L.224-2003, SEC.84.
Last modified: May 28, 2006