Exemption from levy limits for bonded indebtedness and leases;
department of local government finance approval
Sec. 8. (a) The ad valorem property tax levy limits imposed by
section 3 of this chapter do not apply to ad valorem property taxes
imposed by a civil taxing unit if the civil taxing unit is committed to
levy the taxes to pay or fund either:
(1) bonded indebtedness; or
(2) lease rentals under a lease with an original term of at least
five (5) years.
(b) A civil taxing unit must file a petition requesting approval from
the department of local government finance to incur bonded
indebtedness or execute a lease with an original term of at least five
(5) years not later than twenty-four (24) months after the first date of
publication of notice of a preliminary determination under
IC 6-1.1-20-3.1(2), unless the civil taxing unit demonstrates that a
longer period is reasonable in light of the civil taxing unit's facts and
circumstances. A civil taxing unit must obtain approval from the
department of local government finance before the civil taxing unit
may:
(1) incur the bonded indebtedness; or
(2) enter into the lease.
The department of local government finance may seek
recommendations from the local government tax control board
established by section 11 of this chapter when determining whether
to authorize incurring the bonded indebtedness or the execution of
the lease.
(c) The department of local government finance shall render a
decision within three (3) months after the date it receives a request
for approval under subsection (b). However, the department of local
government finance may extend this three (3) month period by an
additional three (3) months if, at least ten (10) days before the end of
the original three (3) month period, the department sends notice of
the extension to the executive officer of the civil taxing unit. A civil
taxing unit may petition for judicial review of the final determination
of the department of local government finance under this section.
The petition must be filed in the tax court not more than forty-five
(45) days after the department enters its order under this section.
(d) A civil taxing unit does not need approval under subsection (b)
to obtain temporary loans made in anticipation of and to be paid from
current revenues of the civil taxing unit actually levied and in the
course of collection for the fiscal year in which the loans are made.
(e) For purposes of computing the ad valorem property tax levy
limits imposed on a civil taxing unit by section 3 of this chapter, the
civil taxing unit's ad valorem property tax levy for a calendar year
does not include that part of its levy that is committed to fund or pay
bond indebtedness or lease rentals with an original term of five (5)
years in subsection (a).
(f) A taxpayer may petition for judicial review of the final
determination of the department of local government finance under
this section. The petition must be filed in the tax court not more than
thirty (30) days after the department enters its order under this
section.
As added by P.L.73-1983, SEC.1. Amended by P.L.25-1995, SEC.29;
P.L.90-2002, SEC.164; P.L.256-2003, SEC.17.
Last modified: May 28, 2006