Determination of levy limits; exclusions from city, town, or county
tax levy; maximum rate calculation
Sec. 9.8. (a) For purposes of determining the property tax levy
limit imposed on a city, town, or county under section 3 of this
chapter, the city, town, or county's ad valorem property tax levy for
a particular calendar year does not include an amount equal to the
lesser of:
(1) the amount of ad valorem property taxes that would be first
due and payable to the city, town, or county during the ensuing
calendar year if the taxing unit imposed the maximum
permissible property tax rate per one hundred dollars ($100) of
assessed valuation that the civil taxing unit may impose for the
particular calendar year under the authority of IC 36-9-14.5 (in
the case of a county) or IC 36-9-15.5 (in the case of a city or
town); or
(2) the excess, if any, of:
(A) the property taxes imposed by the city, town, or county
under the authority of:
IC 3-11-6-9;
IC 8-16-3;
IC 8-16-3.1;
IC 8-22-3-25;
IC 14-27-6-48;
IC 14-33-9-3;
IC 16-22-8-41;
IC 16-22-5-2 through IC 16-22-5-15;
IC 16-23-1-40;
IC 36-8-14;
IC 36-9-4-48;
IC 36-9-14;
IC 36-9-14.5;
IC 36-9-15;
IC 36-9-15.5;
IC 36-9-16;
IC 36-9-16.5;
IC 36-9-17;
IC 36-9-26;
IC 36-9-27-100;
IC 36-10-3-21; or
IC 36-10-4-36;
that are first due and payable during the ensuing calendar year;
over
(B) the property taxes imposed by the city, town, or county
under the authority of the citations listed in clause (A) that
were first due and payable during calendar year 1984.
(b) The maximum property tax rate levied under the statutes listed
in subsection (a) must be adjusted each time a general reassessment
of property takes effect.
(c) The new maximum rate under a statute listed in subsection (a)
is the tax rate determined under STEP SEVEN of the following
formula:
STEP ONE: Determine the maximum rate for the political
subdivision levying a property tax under the statute for the year
preceding the year in which the general reassessment takes
effect.
STEP TWO: Determine the actual percentage increase (rounded
to the nearest one-hundredth percent (0.01%)) in the assessed
value of the taxable property from the year preceding the year
the general reassessment takes effect to the year that the general
reassessment is effective.
STEP THREE: Determine the three (3) calendar years that
immediately precede the ensuing calendar year and in which a
statewide general reassessment of real property does not first
become effective.
STEP FOUR: Compute separately, for each of the calendar years
determined in STEP THREE, the actual percentage increase
(rounded to the nearest one-hundredth percent (0.01%)) in the
assessed value of the taxable property from the preceding year.
STEP FIVE: Divide the sum of the three (3) quotients computed
in STEP FOUR by three (3).
STEP SIX: Determine the greater of the following:
(A) Zero (0).
(B) The result of the STEP TWO percentage minus the STEP
FIVE percentage.
STEP SEVEN: Determine the quotient of the STEP ONE tax
rate divided by the sum of one (1) plus the STEP SIX percentage
increase.
(d) The department of local government finance shall compute the
maximum rate allowed under subsection (c) and provide the rate to
each political subdivision with authority to levy a tax under a statute
listed in subsection (a).
As added by P.L.44-1984, SEC.3. Amended by P.L.5-1986, SEC.13;
P.L.2-1993, SEC.55; P.L.1-1995, SEC.46; P.L.17-1995, SEC.5;
P.L.25-1995, SEC.30; P.L.90-2002, SEC.165.
Last modified: May 28, 2006