Reduction of general fund property tax levy of municipality
receiving distribution
Sec. 20. (a) The department of local government finance shall
each year reduce the general fund property tax levy of a municipality
receiving a distribution under this chapter in that year. The
municipality's general fund property tax levy shall be reduced by the
amount of the distribution received or to be received by the
municipality during the year. The department of local government
finance shall certify to the auditor of the qualifying county the
property tax rate applicable to the municipality's general fund after
the property tax reduction under this section.
(b) A municipality shall treat a distribution that the municipality
receives or is to receive during a particular calendar year as a part of
the municipality's property tax levy for the general fund for that same
calendar year for purposes of fixing the municipality's budget and for
purposes of the property tax levy limits imposed by IC 6-1.1-18.5.
However, the distributions shall not reduce the total county tax levy
that is used to compute the state property tax replacement credit
under IC 6-1.1-21. In addition, for purposes of computing and
distributing any excise taxes or income taxes in which the
distribution is based on property taxes, the distributions shall be
treated as though they were property taxes that were due and payable
during that same calendar year.
(c) A municipality may use distributions received under this
chapter for any purpose for which the municipality may use property
tax revenues.
As added by P.L.151-2001, SEC.6. Amended by P.L.90-2002,
SEC.302.
Last modified: May 28, 2006