Option to borrow money to replace lost revenue
Sec. 9. (a) The fiscal body of a county may adopt an ordinance to
authorize the county fiscal officer to borrow money repayable over
a term not to exceed five (5) years in an amount sufficient to
compensate the political subdivisions located wholly or in part in the
county for the reduction of property tax collections in a calendar year
that results from the application of the credit under this chapter for
that calendar year.
(b) The county fiscal officer shall distribute in a calendar year to
each political subdivision located wholly or in part in the county loan
proceeds under subsection (a) for that calendar year in the amount by
which the property tax collections of the political subdivision in that
calendar year are reduced as a result of the application of the credit
under this chapter for that calendar year.
(c) If the county fiscal officer distributes money to political
subdivisions under subsection (b), the political subdivisions that
receive the distributions shall repay the loan under subsection (a)
over the term of the loan. Each political subdivision that receives a
distribution under subsection (b):
(1) shall:
(A) appropriate for each year in which the loan is to be
repaid an amount sufficient to pay the part of the principal
and interest on the loan attributable to the distribution
received by the political subdivision under subsection (b);
and
(B) raise property tax revenue in each year in which the loan
is to be repaid in the amount necessary to meet the
appropriation under clause (A); and
(2) other than the county, shall transfer to the county fiscal
officer money dedicated under this section to repayment of the
loan in time to allow the county to meet the loan repayment
schedule.
(d) Property taxes imposed under subsection (c)(1)(B) are subject
to levy limitations under IC 6-1.1-18.5 or IC 6-1.1-19.
(e) The obligation to:
(1) repay; or
(2) contribute to the repayment of;
the loan under subsection (a) is not a basis for a political subdivision
to obtain an excessive tax levy under IC 6-1.1-18.5 or IC 6-1.1-19.
(f) The application of the credit under this chapter results in a
reduction of the property tax collections of each political subdivision
in which the credit is applied. A political subdivision may not
increase its property tax levy to make up for that reduction.
As added by P.L.246-2005, SEC.62.
Last modified: May 28, 2006