Levy excess; validity; disposition of fund
Sec. 1.7. (a) As used in this section, "levy excess" means that
portion of the ad valorem property tax levy actually collected by a
school corporation, for taxes first due and payable during a particular
calendar year, which exceeds the school corporation's total levy, as
approved by the department of local government finance under
IC 6-1.1-17, for those property taxes.
(b) A school corporation's levy excess is valid, and the general
fund portion of a school corporation's levy excess may not be
contested on the grounds that it exceeds the school corporation's
general fund levy limit for the applicable calendar year. However, the
school corporation shall deposit, except as provided in subsection
(h), its levy excess in a special fund to be known as the school
corporation's levy excess fund.
(c) The chief fiscal officer of a school corporation may invest
money in the school corporation's levy excess fund in the same
manner in which money in the school corporation's general fund may
be invested. However, any income derived from investment of the
money shall be deposited in and become a part of the levy excess
fund.
(d) The department of local government finance shall require a
school corporation to include the amount in the school corporation's
levy excess fund in the school corporation's budget fixed under
IC 6-1.1-17.
(e) Except as provided in subsection (f), a school corporation 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 fixed under this chapter, a school corporation
shall treat the money in its levy excess fund that the department of
local government finance permits the school corporation to spend
during a particular calendar year as part of the school corporation's
ad valorem property tax levy for that same calendar year.
(f) A school corporation may transfer money from its levy excess
fund to its other funds to reimburse those funds for amounts withheld
from the school corporation as a result of refunds paid under
IC 6-1.1-26.
(g) Subject to the limitations imposed by this section, a school
corporation 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 be deposited in the levy excess fund
of a school corporation for a particular calendar year is less than one
hundred dollars ($100), no money shall be deposited in the levy
excess fund of the school corporation for that year.
As added by Acts 1980, P.L.43, SEC.2. Amended by P.L.64-1985,
SEC.2; P.L.342-1989(ss), SEC.3; P.L.58-1991, SEC.1; P.L.41-1993,
SEC.19; P.L.90-2002, SEC.174; P.L.23-2004, SEC.30 and
P.L.1-2004, SEC.28.
Last modified: May 28, 2006