Library property taxes; replacement credits
Sec. 23. (a) This section applies only to a county having a
population of more than fifty-five thousand (55,000) but less than
sixty-five thousand (65,000).
(b) The county council may by ordinance determine that, in order
to promote the development of libraries in the county and thereby
encourage economic development, it is necessary to use economic
development income tax revenue to replace library property taxes in
the county. However, a county council may adopt an ordinance under
this subsection only if all territory in the county is included in a
library district.
(c) If the county council makes a determination under subsection
(b), the county council may designate the county economic
development income tax revenue generated by the tax rate adopted
under section 5 of this chapter, or revenue generated by a portion of
the tax rate, as revenue that will be used to replace public library
property taxes imposed by public libraries in the county. The county
council may not designate for library property tax replacement
purposes any county economic development income tax revenue that
is generated by a tax rate of more than fifteen-hundredths percent
(0.15%).
(d) The county treasurer shall establish a library property tax
replacement fund to be used only for the purposes described in this
section. County economic development income tax revenues derived
from the portion of the tax rate designated for property tax
replacement credits under subsection (c) shall be deposited in the
library property tax replacement fund before certified distributions
are made under section 12 of this chapter. Any interest earned on
money in the library property tax replacement fund shall be credited
to the library property tax replacement fund.
(e) The amount of county economic development income tax
revenue dedicated to providing library property tax replacement
credits shall, in the manner prescribed in this section, be allocated to
public libraries operating in the county and shall be used by those
public libraries as property tax replacement credits. The amount of
property tax replacement credits that each public library in the
county is entitled to receive during a calendar year under this section
equals the lesser of:
(1) the product of:
(A) the amount of revenue deposited by the county auditor
in the library property tax replacement fund; multiplied by
(B) a fraction described as follows:
(i) The numerator of the fraction equals the sum of the
total property taxes that would have been collected by the
public library during the previous calendar year from
taxpayers located within the library district if the property
tax replacement under this section had not been in effect.
(ii) The denominator of the fraction equals the sum of the
total property taxes that would have been collected during
the previous year from taxpayers located within the county
by all public libraries that are eligible to receive property
tax replacement credits under this section if the property
tax replacement under this section had not been in effect;
or
(2) the total property taxes that would otherwise be collected by
the public library for the calendar year if the property tax
replacement credit under this section were not in effect.
The department of local government finance shall make any
adjustments necessary to account for the expansion of a library
district. However, a public library is eligible to receive property tax
replacement credits under this section only if it has entered into
reciprocal borrowing agreements with all other public libraries in the
county. If the total amount of county economic development income
tax revenue deposited by the county auditor in the library property
tax replacement fund for a calendar year exceeds the total property
tax liability that would otherwise be imposed for public libraries in
the county for the year, the excess shall remain in the library property
tax replacement fund and shall be used for library property tax
replacement purposes in the following calendar year.
(f) Notwithstanding subsection (e), if a public library did not
impose a property tax levy during the previous calendar year, that
public library is entitled to receive a part of the property tax
replacement credits to be distributed for the calendar year. The
amount of property tax replacement credits the public library is
entitled to receive during the calendar year equals the product of:
(1) the amount of revenue deposited in the library property tax
replacement fund; multiplied by
(2) a fraction. The numerator of the fraction equals the budget
of the public library for that calendar year. The denominator of
the fraction equals the aggregate budgets of public libraries in
the county for that calendar year.
If for a calendar year a public library is allocated a part of the
property tax replacement credits under this subsection, then the
amount of property tax credits distributed to other public libraries in
the county for the calendar year shall be reduced by the amount to be
distributed as property tax replacement credits under this subsection.
The department of local government finance shall make any
adjustments required by this subsection and provide the adjustments
to the county auditor.
(g) The department of local government finance shall inform the
county auditor of the amount of property tax replacement credits that
each public library in the county is entitled to receive under this
section. The county auditor shall certify to each public library the
amount of property tax replacement credits that the public library is
entitled to receive during that calendar year. The county auditor shall
also certify these amounts to the county treasurer.
(h) A public library receiving property tax replacement credits
under this section shall allocate the credits among each fund for
which a distinct property tax levy is imposed. The amount that must
be allocated to each fund equals:
(1) the amount of property tax replacement credits provided to
the public library under this section; multiplied by
(2) the amount determined in STEP THREE of the following
formula:
STEP ONE: Determine the property taxes that would have
been collected for each fund by the public library during the
previous calendar year if the property tax replacement under
this section had not been in effect.
STEP TWO: Determine the sum of the total property taxes
that would have been collected for all funds by the public
library during the previous calendar year if the property tax
replacement under this section had not been in effect.
STEP THREE: Divide the STEP ONE amount by the STEP
TWO amount.
However, if a public library did not impose a property tax levy
during the previous calendar year or did not impose a property tax
levy for a particular fund during the previous calendar year, but the
public library is imposing a property tax levy in the current calendar
year or is imposing a property tax levy for the particular fund in the
current calendar year, the department of local government finance
shall adjust the amount of property tax replacement credits allocated
among the various funds of the public library and shall provide the
adjustment to the county auditor. If a public library receiving
property tax replacement credits under this section does not impose
a property tax levy for a particular fund that is first due and payable
in a calendar year in which the property tax replacement credits are
being distributed, the public library is not required to allocate to that
fund a part of the property tax replacement credits to be distributed
to the public library. Notwithstanding IC 6-1.1-20-1.1(1), a public
library that receives property tax replacement credits under this
section is subject to the procedures for the issuance of bonds set forth
in IC 6-1.1-20.
(i) For each public library that receives property tax credits under
this section, the department of local government finance shall certify
to the county auditor the property tax rate applicable to each fund
after the property tax replacement credits are allocated.
(j) A public library shall treat property tax replacement credits
received during a particular calendar year under this section as a part
of the public library's property tax levy for each fund for that same
calendar year for purposes of fixing the public library's budget and
for purposes of the property tax levy limits imposed by IC 6-1.1-18.5.
(k) The property tax replacement credits that are received under
this section do not reduce the total county tax levy that is used to
compute the state property tax replacement credit under IC 6-1.1-21.
For the purpose of computing and distributing certified distributions
under IC 6-3.5-1.1 and tax revenue under IC 6-5.5 or IC 6-6-5, the
property tax replacement credits that are received under this section
shall be treated as though they were property taxes that were due and
payable during that same calendar year.
As added by P.L.124-1999, SEC.3. Amended by P.L.90-2002,
SEC.300; P.L.87-2002, SEC.1; P.L.192-2002(ss), SEC.126.
Last modified: May 28, 2006