Lost revenue for fund
Sec. 10. The lost revenue for a fund is the amount determined
under STEP THREE of the following formula:
STEP ONE: Determine the property tax levy approved by the
department of local government finance for the base year, as
adjusted by the following:
(A) If the taxpayer made payments in lieu of taxes in the
base year that were not included in the property tax levy for
the base year, add the amount of the payments in lieu of
taxes made by the taxpayer in the base year to the amount of
the tax levy.
(B) If part of the taxpayer's property that was used in the
base year to compute the taxpayer's payments to the taxing
unit is not in the taxing unit or would not otherwise be the
basis for taxpayer payments to the taxing unit in the current
year, reduce the amount determined in this STEP to reflect
the removal of the property.
(C) If the taxpayer's property used to compute the property
taxes or payments in lieu of property taxes paid in the base
year is depreciable property that would have had a lower
assessed value in the current year, reduce the amount
determined in this STEP to reflect the lower amount of
property taxes or payments in lieu of property taxes that the
taxpayer would have paid in the current year for the same
property.
STEP TWO: Determine the current levy using the tax rate used
for the base year as follows:
(A) Determine the assessed value of all taxable property on
which property taxes will be collected:
(i) in the current year; and
(ii) for the smaller of the geographic area in which the
taxing unit imposed property taxes for collection in the
base year or the geographic area in which the taxing unit
imposes property taxes in the current year.
If a general reassessment has become effective in a year after
the base year, adjust the assessed value determined in this
clause to neutralize the effects of reassessment.
(B) Multiply the assessed value determined for the current
year under clause (A) by the tax rate for the fund in the base
year.
(C) Divide the result under clause (B) by one hundred (100).
(D) Subtract the amount of any:
(i) property tax payment; or
(ii) payment in lieu of property taxes;
made by the taxpayer to the fund for the current year that is
not included in the amount determined under clause (C).
STEP THREE: Determine the greater of the following:
(A) Zero (0).
(B) The result of the STEP ONE amount minus the STEP
TWO amount.
As added by P.L.58-1997, SEC.1. Amended by P.L.90-2002,
SEC.209.
Last modified: May 28, 2006