Maximum ad valorem property tax levy; formula
Sec. 3. (a) Except as otherwise provided in this chapter and
IC 6-3.5-8-12, a civil taxing unit that is treated as not being located
in an adopting county under section 4 of this chapter may not impose
an ad valorem property tax levy for an ensuing calendar year that
exceeds the amount determined in the last STEP of the following
STEPS:
STEP ONE: Add the civil taxing unit's maximum permissible
ad valorem property tax levy for the preceding calendar year to
the part of the civil taxing unit's certified share, if any, that was
used to reduce the civil taxing unit's ad valorem property tax
levy under STEP EIGHT of subsection (b) for that preceding
calendar year.
STEP TWO: Multiply the amount determined in STEP ONE by
the amount determined in the last STEP of section 2(b) of this
chapter.
STEP THREE: Determine the lesser of one and fifteen
hundredths (1.15) or the quotient (rounded to the nearest
ten-thousandth (0.0001)), of the assessed value of all taxable
property subject to the civil taxing unit's ad valorem property
tax levy for the ensuing calendar year, divided by the assessed
value of all taxable property that is subject to the civil taxing
unit's ad valorem property tax levy for the ensuing calendar year
and that is contained within the geographic area that was
subject to the civil taxing unit's ad valorem property tax levy in
the preceding calendar year.
STEP FOUR: Determine the greater of the amount determined
in STEP THREE or one (1).
STEP FIVE: Multiply the amount determined in STEP TWO by
the amount determined in STEP FOUR.
STEP SIX: Add the amount determined under STEP TWO to
the amount determined under subsection (c).
STEP SEVEN: Determine the greater of the amount determined
under STEP FIVE or the amount determined under STEP SIX.
(b) Except as otherwise provided in this chapter and
IC 6-3.5-8-12, a civil taxing unit that is treated as being located in an
adopting county under section 4 of this chapter may not impose an
ad valorem property tax levy for an ensuing calendar year that
exceeds the amount determined in the last STEP of the following
STEPS:
STEP ONE: Add the civil taxing unit's maximum permissible
ad valorem property tax levy for the preceding calendar year to
the part of the civil taxing unit's certified share, if any, used to
reduce the civil taxing unit's ad valorem property tax levy under
STEP EIGHT of this subsection for that preceding calendar
year.
STEP TWO: Multiply the amount determined in STEP ONE by
the amount determined in the last STEP of section 2(b) of this
chapter.
STEP THREE: Determine the lesser of one and fifteen
hundredths (1.15) or the quotient of the assessed value of all
taxable property subject to the civil taxing unit's ad valorem
property tax levy for the ensuing calendar year divided by the
assessed value of all taxable property that is subject to the civil
taxing unit's ad valorem property tax levy for the ensuing
calendar year and that is contained within the geographic area
that was subject to the civil taxing unit's ad valorem property
tax levy in the preceding calendar year.
STEP FOUR: Determine the greater of the amount determined
in STEP THREE or one (1).
STEP FIVE: Multiply the amount determined in STEP TWO by
the amount determined in STEP FOUR.
STEP SIX: Add the amount determined under STEP TWO to
the amount determined under subsection (c).
STEP SEVEN: Determine the greater of the amount determined
under STEP FIVE or the amount determined under STEP SIX.
STEP EIGHT: Subtract the amount determined under STEP
FIVE of subsection (e) from the amount determined under
STEP SEVEN of this subsection.
(c) If a civil taxing unit in the immediately preceding calendar
year provided an area outside its boundaries with services on a
contractual basis and in the ensuing calendar year that area has been
annexed by the civil taxing unit, the amount to be entered under
STEP SIX of subsection (a) or STEP SIX of subsection (b), as the
case may be, equals the amount paid by the annexed area during the
immediately preceding calendar year for services that the civil taxing
unit must provide to that area during the ensuing calendar year as a
result of the annexation. In all other cases, the amount to be entered
under STEP SIX of subsection (a) or STEP SIX of subsection (b), as
the case may be, equals zero (0).
(d) This subsection applies only to civil taxing units located in a
county having a county adjusted gross income tax rate for resident
county taxpayers (as defined in IC 6-3.5-1.1-1) of one percent (1%)
as of January 1 of the ensuing calendar year. For each civil taxing
unit, the amount to be added to the amount determined in subsection
(e), STEP FOUR, is determined using the following formula:
STEP ONE: Multiply the civil taxing unit's maximum
permissible ad valorem property tax levy for the preceding
calendar year by two percent (2%).
STEP TWO: For the determination year, the amount to be used
as the STEP TWO amount is the amount determined in
subsection (f) for the civil taxing unit. For each year following
the determination year the STEP TWO amount is the lesser of:
(A) the amount determined in STEP ONE; or
(B) the amount determined in subsection (f) for the civil
taxing unit.
STEP THREE: Determine the greater of:
(A) zero (0); or
(B) the civil taxing unit's certified share for the ensuing
calendar year minus the greater of:
(i) the civil taxing unit's certified share for the calendar
year that immediately precedes the ensuing calendar year;
or
(ii) the civil taxing unit's base year certified share.
STEP FOUR: Determine the greater of:
(A) zero (0); or
(B) the amount determined in STEP TWO minus the amount
determined in STEP THREE.
Add the amount determined in STEP FOUR to the amount
determined in subsection (e), STEP THREE, as provided in
subsection (e), STEP FOUR.
(e) For each civil taxing unit, the amount to be subtracted under
subsection (b), STEP EIGHT, is determined using the following
formula:
STEP ONE: Determine the lesser of the civil taxing unit's base
year certified share for the ensuing calendar year, as determined
under section 5 of this chapter, or the civil taxing unit's certified
share for the ensuing calendar year.
STEP TWO: Determine the greater of:
(A) zero (0); or
(B) the remainder of:
(i) the amount of federal revenue sharing money that was
received by the civil taxing unit in 1985; minus
(ii) the amount of federal revenue sharing money that will
be received by the civil taxing unit in the year preceding
the ensuing calendar year.
STEP THREE: Determine the lesser of:
(A) the amount determined in STEP TWO; or
(B) the amount determined in subsection (f) for the civil
taxing unit.
STEP FOUR: Add the amount determined in subsection (d),
STEP FOUR, to the amount determined in STEP THREE.
STEP FIVE: Subtract the amount determined in STEP FOUR
from the amount determined in STEP ONE.
(f) As used in this section, a taxing unit's "determination year"
means the latest of:
(1) calendar year 1987, if the taxing unit is treated as being
located in an adopting county for calendar year 1987 under
section 4 of this chapter;
(2) the taxing unit's base year, as defined in section 5 of this
chapter, if the taxing unit is treated as not being located in an
adopting county for calendar year 1987 under section 4 of this
chapter; or
(3) the ensuing calendar year following the first year that the
taxing unit is located in a county that has a county adjusted
gross income tax rate of more than one-half percent (0.5%) on
July 1 of that year.
The amount to be used in subsections (d) and (e) for a taxing unit
depends upon the taxing unit's certified share for the ensuing
calendar year, the taxing unit's determination year, and the county
adjusted gross income tax rate for resident county taxpayers (as
defined in IC 6-3.5-1.1-1) that is in effect in the taxing unit's county
on July 1 of the year preceding the ensuing calendar year. For the
determination year and the ensuing calendar years following the
taxing unit's determination year, the amount is the taxing unit's
certified share for the ensuing calendar year multiplied by the
appropriate factor prescribed in the following table:
COUNTIES WITH A TAX RATE OF 1/2%
Subsection (e)
Year Factor
For the determination year and each ensuing
calendar year following the determination year . . . . . . 0
COUNTIES WITH A TAX RATE OF 3/4%
Subsection (e)
Year Factor
For the determination year and each ensuing
calendar year following the determination year . . . . . 1/2
COUNTIES WITH A TAX RATE OF 1.0%
Subsection (d) Subsection (e)
Year Factor Factor
For the determination year . . . . . . . . 1/6 . . . . . . . . . . 1/3
For the ensuing calendar year
following the determination year . . . 1/4 . . . . . . . . . . 1/3
For the ensuing calendar year
following the determination year
by two (2) years . . . . . . . . . . . . . . . . 1/3 . . . . . . . . . . 1/3
As added by P.L.73-1983, SEC.1. Amended by P.L.64-1986, SEC.1;
P.L.78-1987, SEC.4; P.L.151-2001, SEC.4; P.L.198-2001, SEC.53;
P.L.1-2002, SEC.21; P.L.192-2002(ss), SEC.36; P.L.1-2003,
SEC.25.
Last modified: May 28, 2006