"Delinquent tax" defined; loan proceeds and delinquent tax
payments; calculation of levy excess; expenditure of loan receipts
Sec. 6. (a) As used in this section, "delinquent tax" means any tax:
(1) owed by a taxpayer in a bankruptcy proceeding initially
filed in 2001; and
(2) not paid during the calendar year in which it was first due
and payable.
(b) Except as provided in subsection (d), the proceeds of a loan
received by the qualified taxing unit under this chapter are not
considered to be part of the ad valorem property tax levy actually
collected by the qualified taxing unit for taxes first due and payable
during a particular calendar year for the purpose of calculating the
levy excess under IC 6-1.1-18.5-17 and IC 6-1.1-19-1.7. The receipt
by a qualified taxing unit of any payment of delinquent tax owed by
a taxpayer in bankruptcy is considered to be part of the ad valorem
property tax levy actually collected by the qualified taxing unit for
taxes first due and payable during a particular calendar year for the
purpose of calculating the levy excess under IC 6-1.1-18.5-17 and
IC 6-1.1-19-1.7.
(c) The proceeds of a loan made under this chapter must first be
used to retire any outstanding loans made by the department of
commerce (including any loans made by the department of commerce
that are transferred to the Indiana economic development
corporation) to cover a qualified taxing unit's revenue shortfall
resulting from the taxpayer's default on property tax payments. Any
remaining proceeds of a loan made under this chapter and any
payment of delinquent taxes by the taxpayer may be expended by the
qualified taxing unit only to pay obligations of the qualified taxing
unit that have been incurred under appropriations for operating
expenses made by the qualified taxing unit and approved by the
department of local government finance.
(d) If the sum of the receipts of a qualified taxing unit that are
attributable to:
(1) the loan proceeds; and
(2) the payment of property taxes owed by a taxpayer in a
bankruptcy proceeding and payable in November 2001, May
2002, or November 2002;
exceeds the sum of the taxpayer's property tax liability attributable
to the qualified taxing unit for property taxes payable in November
2001, May 2002, and November 2002, the excess as received during
any calendar year or years shall be set aside and treated for the
calendar year when received as a levy excess subject to
IC 6-1.1-18.5-17 or IC 6-1.1-19-1.7. In calculating the payment of
property taxes as referred to in subdivision (2), the amount of
property tax credit finally allowed under IC 6-1.1-21-5 in respect to
those taxes is considered to be a payment of those property taxes.
As added by P.L.157-2002, SEC.1. Amended by P.L.4-2005, SEC.42.
Last modified: May 28, 2006