Excess tax levy in event of revenue shortfall
Sec. 16. (a) A civil taxing unit may request permission from the
local government tax control board to impose an ad valorem property
tax levy that exceeds the limits imposed by section 3 of this chapter
if:
(1) the civil taxing unit experienced a property tax revenue
shortfall that resulted from erroneous assessed valuation figures
being provided to the civil taxing unit;
(2) the erroneous assessed valuation figures were used by the
civil taxing unit in determining its total property tax rate; and
(3) the error in the assessed valuation figures was found after the
civil taxing unit's property tax levy resulting from that total rate
was finally approved by the department of local government
finance.
(b) A civil taxing unit may request permission from the local
government tax control board to impose an ad valorem property tax
levy that exceeds the limits imposed by section 3 of this chapter if
the civil taxing unit experienced a property tax revenue shortfall
because of the payment of refunds that resulted from appeals under
this article and IC 6-1.5.
(c) If the local government tax control board determines that a
shortfall described in subsection (a) or (b) has occurred, it shall
recommend to the department of local government finance that the
civil taxing unit be allowed to impose a property tax levy exceeding
the limit imposed by section 3 of this chapter, and the department
may adopt such recommendation. However, the maximum amount by
which the civil taxing unit's levy may be increased over the limits
imposed by section 3 of this chapter equals the remainder of the civil
taxing unit's property tax levy for the particular calendar year as
finally approved by the department of local government finance
minus the actual property tax levy collected by the civil taxing unit
for that particular calendar year.
(d) Any property taxes collected by a civil taxing unit over the
limits imposed by section 3 of this chapter under the authority of this
section may not be treated as a part of the civil taxing unit's
maximum permissible ad valorem property tax levy for purposes of
determining its maximum permissible ad valorem property tax levy
for future years.
(e) If the department of local government finance authorizes an
excess tax levy under this section, it shall take appropriate steps to
insure that the proceeds are first used to repay any loan made to the
civil taxing unit for the purpose of meeting its current expenses.
As added by P.L.73-1983, SEC.1. Amended by P.L.90-2002,
SEC.171; P.L.1-2004, SEC.23 and P.L.23-2004, SEC.25.
Last modified: May 28, 2006