Version b
General fund ad valorem property tax levy
Note: This version of section effective 1-1-2006. See also
preceding version of this section, effective until 1-1-2006.
Sec. 1.5. (a) The following definitions apply throughout this
section and IC 21-3-1.7:
(1) "Adjustment factor" means the adjustment factor determined
by the department of local government finance for a school
corporation under IC 6-1.1-34.
(2) "Adjusted target property tax rate" means:
(A) the school corporation's target general fund property tax
rate determined under IC 21-3-1.7-6.8; multiplied by
(B) the school corporation's adjustment factor.
(3) "Previous year property tax rate" means the part of the
school corporation's previous year general fund property tax
rate imposed for the school corporation's tuition support levy
(as defined in IC 21-3-1.7-5), but before the reductions in
IC 21-3-1.7-5.
(b) Except as otherwise provided in this chapter, a school
corporation may not impose a general fund ad valorem property tax
levy which exceeds the following:
STEP ONE: Determine the result of:
(A) the school corporation's adjusted target property tax rate;
minus
(B) the school corporation's previous year property tax rate.
STEP TWO: If the school corporation's adjusted target property
tax rate:
(A) exceeds the school corporation's previous year property
tax rate, the result under this STEP for the school
corporation is the school corporation's previous year
property tax rate after increasing the rate by the lesser of:
(i) the STEP ONE result; or
(ii) three cents ($0.03); or
(B) is less than the school corporation's previous year
property tax rate, the result under this STEP is the school
corporation's previous year property tax rate after reducing
the rate by the lesser of:
(i) the absolute value of the STEP ONE result; or
(ii) eight cents ($0.08); or
(C) equals the school corporation's previous year property
tax rate, the result under this STEP is the school
corporation's adjusted target property tax rate.
STEP THREE: Divide the school corporation's total assessed
value by one hundred dollars ($100).
STEP FOUR: Multiply the STEP TWO result by the STEP
THREE result.
STEP FIVE: Determine the sum of the following:
(A) The STEP FOUR result.
(B) An amount equal to the annual decrease in federal aid to
impacted areas from the year preceding the ensuing calendar
year by three (3) years to the year preceding the ensuing
calendar year by two (2) years.
(C) The part of the maximum general fund levy for the year
that equals the original amount of the levy by the school
corporation to cover the costs of opening a new school
facility or reopening an existing facility during the preceding
year.
(D) The amount determined under item (iv) of the following
formula:
(i) Determine the target revenue per ADM under
IC 21-3-1.7-6.7 for each charter school that included at
least one (1) student who has legal settlement in the school
corporation in the charter school's current ADM.
(ii) For each charter school, multiply the item (i) amount
by the number of students who have legal settlement in the
school corporation and who are included in the charter
school's current ADM.
(iii) Determine the sum of the item (ii) amounts.
(iv) Multiply the item (iii) amount by thirty-five
hundredths (0.35).
In determining the number of students for purposes of this
clause, each kindergarten pupil shall be counted as
one-half (1/2) pupil.
(c) For purposes of this section, "total assessed value" with
respect to a school corporation means the total assessed value of all
taxable property for ad valorem property taxes first due and payable
during that year.
(d) The department of local government finance shall annually
establish an assessment ratio and adjustment factor for each school
corporation to be used upon the review and recommendation of the
budget committee. The information compiled, including background
documentation, may not be used in a:
(1) review of an assessment under IC 6-1.1-8, IC 6-1.1-13,
IC 6-1.1-14, or IC 6-1.1-15;
(2) petition for a correction of error under IC 6-1.1-15-12; or
(3) petition for refund under IC 6-1.1-26.
(e) All tax rates and tax levies computed under this section shall
be computed by rounding in conformity with IC 21-3-1.7-7.
As added by Acts 1978, P.L.34, SEC.2. Amended by Acts 1979,
P.L.208, SEC.8; Acts 1982, P.L.46, SEC.1; P.L.65-1985, SEC.17;
P.L.24-1986, SEC.18; P.L.382-1987(ss), SEC.52; P.L.5-1988,
SEC.43; P.L.345-1989(ss), SEC.1; P.L.51-1990, SEC.1; P.L.1-1991,
SEC.40; P.L.240-1991(ss2), SEC.48; P.L.277-1993(ss), SEC.84;
P.L.278-1993(ss), SEC.3; P.L.1-1994, SEC.26; P.L.38-1994, SEC.1;
P.L.340-1995, SEC.41; P.L.30-1996, SEC.2; P.L.260-1997(ss),
SEC.48; P.L.273-1999, SEC.129; P.L.291-2001, SEC.89;
P.L.90-2002, SEC.173; P.L.224-2003, SEC.136; P.L.276-2003,
SEC.1; P.L.1-2004, SEC.27 and P.L.23-2004, SEC.29;
P.L.246-2005, SEC.60.
Last modified: May 28, 2006