Determination of allocation amount
Effective 1-1-2006.
Sec. 1.1. (a) For purposes of allocating the certified distribution
made to a county under this chapter among the civil taxing units and
school corporations in the county, the allocation amount for a civil
taxing unit or school corporation is the amount determined using the
following formula:
STEP ONE: Determine the sum of the total property taxes being
collected by the civil taxing unit or school corporation during
the calendar year of the distribution.
STEP TWO: Determine the sum of the following:
(A) Amounts appropriated from property taxes to pay the
principal of or interest on any debenture or other debt
obligation issued after June 30, 2005, other than an
obligation described in subsection (b).
(B) Amounts appropriated from property taxes to make
payments on any lease entered into after June 30, 2005, other
than a lease described in subsection (c).
(C) The proceeds of any property that are:
(i) received as the result of the issuance of a debt
obligation described in clause (A) or a lease described in
clause (B); and
(ii) appropriated from property taxes for any purpose other
than to refund or otherwise refinance a debt obligation or
lease described in subsection (b) or (c).
STEP THREE: Subtract the STEP TWO amount from the STEP
ONE amount.
STEP FOUR: Determine the sum of:
(A) the STEP THREE amount; plus
(B) the civil taxing unit's or school corporation's certified
distribution for the previous calendar year.
(b) Except as provided in this subsection, an appropriation from
property taxes to repay interest and principal of a debt obligation is
not deducted from the allocation amount for a civil taxing unit or
school corporation if:
(1) the debt obligation was issued; and
(2) the proceeds appropriated from property taxes;
to refund or otherwise refinance a debt obligation or a lease issued
before July 1, 2005. However, an appropriation from property taxes
related to a debt obligation issued after June 30, 2005, is deducted if
the debt extends payments on a debt or lease beyond the time in
which the debt or lease would have been payable if the debt or lease
had not been refinanced or increases the total amount that must be
paid on a debt or lease in excess of the amount that would have been
paid if the debt or lease had not been refinanced. The amount of the
deduction is the annual amount for each year of the extension period
or the annual amount of the increase over the amount that would
have been paid.
(c) Except as provided in this subsection, an appropriation from
property taxes to make payments on a lease is not deducted from the
allocation amount for a civil taxing unit or school corporation if:
(1) the lease was issued; and
(2) the proceeds were appropriated from property taxes;
to refinance a debt obligation or lease issued before July 1, 2005.
However, an appropriation from property taxes related to a lease
entered into after June 30, 2005, is deducted if the lease extends
payments on a debt or lease beyond the time in which the debt or
lease would have been payable if the debt or lease had not been
refinanced or increases the total amount that must be paid on a debt
or lease in excess of the amount that would have been paid if the debt
or lease had not been refinanced. The amount of the deduction is the
annual amount for each year of the extension period or the annual
amount of the increase over the amount that would have been paid.
As added by P.L.207-2005, SEC.1.
Last modified: May 28, 2006