School corporations; applicability; minority student; racial balance
fund; ad valorem property tax
Sec. 10. (a) This section applies to a school corporation that:
(1) is located in a county having a population of more than three
hundred thousand (300,000) but less than four hundred
thousand (400,000);
(2) is a party to a lawsuit alleging that its schools are segregated
in violation of the Constitution of the United States or federal
law;
(3) desires to improve or maintain racial balance among two (2)
or more schools within the school corporation, regardless of the
school corporation's basis for desiring to improve or maintain
racial balance; and
(4) has a minority student enrollment that comprises at least ten
percent (10%) of its total student enrollment, using the most
recent enrollment data available to the school corporation.
(b) As used in this section, "minority student" means a student
who is black, Spanish American, Asian American, or American
Indian.
(c) A school corporation may establish a racial balance fund and
petition the school property tax control board to impose an ad
valorem property tax to raise revenue for the fund. However, before
a school corporation may impose an ad valorem property tax under
this section, the school corporation must file a petition with the
school property tax control board. The petition must be filed before
June 1 of the year preceding the first year the school corporation
desires to impose the property tax and must include the following:
(1) The name of the school corporation.
(2) A settlement agreement among the parties to a desegregation
lawsuit that includes the program that will improve or maintain
racial balance in the school corporation.
(3) The proposed property tax levy.
(4) Any other item required by the school property tax control
board.
(d) The school property tax control board may recommend to the
department of local government finance that a school corporation be
allowed to establish a racial balance fund to be funded by an ad
valorem property tax levy. The amount of the levy shall be
determined each year and the levy may not exceed the lesser of the
following:
(1) The revenue derived from a tax rate of eight and thirty-three
hundredths cents ($0.0833) for each one hundred dollars ($100)
of assessed valuation within the school corporation.
(2) The revenue derived from a tax rate equal to the difference
between the maximum rate allowed for the school corporation's
capital projects fund under IC 21-2-15 minus the actual capital
projects fund rate that will be in effect for the school
corporation for a particular year.
(e) The department of local government finance shall review the
petition of the school corporation and the recommendation of the
school property tax control board and:
(1) disapprove the petition if the petition does not comply with
this section;
(2) approve the petition; or
(3) approve the petition with modifications.
(f) A property tax levy under this section is in addition to, and not
part of, the school corporation's general fund property tax levy for
purposes of determining the school corporation's maximum
permissible general fund property tax levy under this chapter.
(g) Money received from a property tax levy under this section
shall be deposited in the school corporation's racial balance fund
established under this section. Money in the fund may be used only
for education programs that improve or maintain racial balance in the
school corporation. Money in the fund may not be used for:
(1) transportation; or
(2) capital improvements;
even though those costs may be attributable to the school
corporation's proposed programs for improving or maintaining racial
balance in the school corporation.
As added by P.L.82-1989, SEC.1. Amended by P.L.12-1992, SEC.22;
P.L.6-1997, SEC.88; P.L.90-2002, SEC.190.
Last modified: May 28, 2006