Levy excess; validity; disposition of fund; limitations
Sec. 17. (a) As used in this section, "levy excess" means the part
of the ad valorem property tax levy actually collected by a civil
taxing unit, for taxes first due and payable during a particular
calendar year, that exceeds the civil taxing unit's ad valorem property
tax levy, as approved by the department of local government finance
under IC 6-1.1-17.
(b) A civil taxing unit's levy excess is valid and may not be
contested on the grounds that it exceeds the civil taxing unit's levy
limit for the applicable calendar year. However, the civil taxing unit
shall deposit, except as provided in subsection (h), its levy excess in
a special fund to be known as the civil taxing unit's levy excess fund.
(c) The chief fiscal officer of a civil taxing unit may invest money
in the civil taxing unit's levy excess fund in the same manner in
which money in the civil taxing unit's general fund may be invested.
However, any income derived from investment of the money shall be
deposited in and becomes a part of the levy excess fund.
(d) The department of local government finance shall require a
civil taxing unit to include the amount in its levy excess fund in the
civil taxing unit's budget fixed under IC 6-1.1-17.
(e) Except as provided by subsection (f), a civil taxing unit may not
spend any money in its levy excess fund until the expenditure of the
money has been included in a budget that has been approved by the
department of local government finance under IC 6-1.1-17. For
purposes of fixing its budget and for purposes of the ad valorem
property tax levy limits imposed under this chapter, a civil taxing
unit shall treat the money in its levy excess fund that the department
of local government finance permits it to spend during a particular
calendar year as part of its ad valorem property tax levy for that same
calendar year.
(f) A civil taxing unit may transfer money from its levy excess fund
to its other funds to reimburse those funds for amounts withheld from
the civil taxing unit as a result of refunds paid under IC 6-1.1-26.
(g) Subject to the limitations imposed by this section, a civil taxing
unit may use money in its levy excess fund for any lawful purpose
for which money in any of its other funds may be used.
(h) If the amount that would, notwithstanding this subsection, be
deposited in the levy excess fund of a civil taxing unit for a particular
calendar year is less than one hundred dollars ($100), no money shall
be deposited in the levy excess fund of the unit for that year.
As added by P.L.73-1983, SEC.1. Amended by P.L.64-1985, SEC.1;
P.L.90-2002, SEC.172; P.L.23-2004, SEC.26 and P.L.1-2004,
SEC.24.
Last modified: May 28, 2006