Bill Text: IN HB1286 | 2012 | Regular Session | Introduced

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Bill Title: Property tax levy limit.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2012-01-11 - First reading: referred to Committee on Ways and Means [HB1286 Detail]

Download: Indiana-2012-HB1286-Introduced.html

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Introduced Version

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HOUSE BILL No. 1286

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DIGEST OF INTRODUCED BILL

Citations Affected: IC 6-1.1-18.5.

Synopsis: Property tax levy limit. Adjusts the maximum permissible ad valorem property tax levy limit of a civil taxing unit to restore the amount of unused maximum permissible ad valorem property tax levy that the civil tax unit would have if no changes in the definition of "maximum permissible ad valorem property tax levy for the preceding calendar year" had been enacted after calendar year 2004.

Effective: July 1, 2012.

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Yarde

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    January 10, 2012, read first time and referred to Committee on Ways and Means.

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Introduced

Second Regular Session 117th General Assembly (2012)

PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
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HOUSE BILL No. 1286

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    A BILL FOR AN ACT to amend the Indiana Code concerning local government.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 6-1.1-18.5-1; (12)IN1286.1.1. -->     SECTION 1. IC 6-1.1-18.5-1, AS AMENDED BY P.L.124-2011, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 1. As used in this chapter:
    "Ad valorem property tax levy for an ensuing calendar year" means the total property taxes imposed by a civil taxing unit for current property taxes collectible in that ensuing calendar year.
    "Adopting county" means any county in which the county adjusted gross income tax is in effect.
    "Civil taxing unit" means any taxing unit except a school corporation.
    "Maximum permissible ad valorem property tax levy for the preceding calendar year" means, for purposes of determining a maximum permissible ad valorem property tax levy under section 3 of this chapter for property taxes imposed for the March 1, 2010, and January 15, 2011, assessment dates, the maximum permissible ad valorem property tax levy for the preceding calendar year as determined under this section as effective on January 1, 2011. For

purposes of determining a maximum permissible ad valorem property tax levy under section 3 of this chapter for property taxes imposed for an assessment date after January 15, 2011, the term means the civil taxing unit's maximum permissible ad valorem property tax levy for the calendar year immediately preceding the ensuing calendar year, as that levy was is determined under section 3 of this chapter (regardless of whether the taxing unit imposed the entire amount of the maximum permissible ad valorem property tax levy in the immediately preceding year).
    "Taxable property" means all tangible property that is subject to the tax imposed by this article and is not exempt from the tax under IC 6-1.1-10 or any other law. For purposes of sections 2 and 3 of this chapter, the term "taxable property" is further defined in section 6 of this chapter.

SOURCE: IC 6-1.1-18.5-3; (12)IN1286.1.2. -->     SECTION 2. IC 6-1.1-18.5-3, AS AMENDED BY P.L.172-2011, SECTION 35, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 3. (a) A civil taxing unit may not impose an ad valorem property tax levy for an ensuing calendar year that exceeds the amount determined in the last STEP of the following STEPS:
        STEP ONE: Determine the civil taxing unit's maximum permissible ad valorem property tax levy for the preceding calendar year.
        STEP TWO: Multiply the amount determined in STEP ONE by the amount determined in the last STEP of section 2(b) of this chapter.
        STEP THREE: Determine the lesser of one and fifteen hundredths (1.15) or the quotient (rounded to the nearest ten-thousandth (0.0001)), of the assessed value of all taxable property subject to the civil taxing unit's ad valorem property tax levy for the ensuing calendar year, divided by the assessed value of all taxable property that is subject to the civil taxing unit's ad valorem property tax levy for the ensuing calendar year and that is contained within the geographic area that was subject to the civil taxing unit's ad valorem property tax levy in the preceding calendar year.
        STEP FOUR: Determine the greater of the amount determined in STEP THREE or one (1).
        STEP FIVE: Multiply the amount determined in STEP TWO by the amount determined in STEP FOUR.
        STEP SIX: Add the amount determined under STEP TWO to the amount of an excessive levy appeal granted under section 13 of this chapter for the ensuing calendar year.

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        STEP SEVEN: Determine the greater of STEP FIVE or STEP SIX.
    (b) This subsection applies only to property taxes first due and payable after December 31, 2007. This subsection applies only to a civil taxing unit that is located in a county for which a county adjusted gross income tax rate is first imposed or is increased in a particular year under IC 6-3.5-1.1-24 or a county option income tax rate is first imposed or is increased in a particular year under IC 6-3.5-6-30. Notwithstanding any provision in this section or any other section of this chapter and except as provided in subsection (c), the maximum permissible ad valorem property tax levy calculated under this section for the ensuing calendar year for a civil taxing unit subject to this section is equal to the civil taxing unit's maximum permissible ad valorem property tax levy for the current calendar year.
    (c) This subsection applies only to property taxes first due and payable after December 31, 2007. In the case of a civil taxing unit that:
        (1) is partially located in a county for which a county adjusted gross income tax rate is first imposed or is increased in a particular year under IC 6-3.5-1.1-24 or a county option income tax rate is first imposed or is increased in a particular year under IC 6-3.5-6-30; and
        (2) is partially located in a county that is not described in subdivision (1);
the department of local government finance shall, notwithstanding subsection (b), adjust the portion of the civil taxing unit's maximum permissible ad valorem property tax levy that is attributable (as determined by the department of local government finance) to the county or counties described in subdivision (2). The department of local government finance shall adjust this portion of the civil taxing unit's maximum permissible ad valorem property tax levy so that, notwithstanding subsection (b), this portion is allowed to increase as otherwise provided in this section. If the department of local government finance increases the civil taxing unit's maximum permissible ad valorem property tax levy under this subsection, any additional property taxes imposed by the civil taxing unit under the adjustment shall be paid only by the taxpayers in the county or counties described in subdivision (2).
     (d) The adjustment under this subsection is a permanent adjustment. Not later than July 1, 2012, the department of local government finance shall adjust the maximum permissible ad valorem property tax levy for the preceding calendar year that is used in this section to calculate the maximum permissible ad

valorem property tax levy of each civil taxing unit for the ensuing year beginning January 1, 2013. The department of local government finance shall publish each civil taxing unit's adjusted maximum permissible ad valorem property tax levy for the preceding calendar year on the department's Internet web site until at least December 31, 2013, and forward information concerning a civil taxing unit's adjusted maximum permissible ad valorem property tax levy for the preceding calendar year electronically or in writing to the civil taxing unit before August 2, 2012. The maximum permissible ad valorem property tax levy for the preceding calendar year shall be adjusted to be equal to the maximum permissible ad valorem property tax levy that would have applied to calendar year 2012 if the maximum permissible ad valorem property tax levy for the preceding calendar year used in this section to calculate the civil taxing unit's maximum permissible ad valorem property tax levy for calendar years 2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011, and 2012 had been equal to the greater of:
        (1) the civil taxing unit's maximum permissible ad valorem property tax levy for the calendar year immediately preceding that ensuing calendar year, as that levy would have been determined under this section as it existed in that year (regardless of whether the taxing unit imposed the entire amount of the maximum permissible ad valorem property tax levy in the immediately preceding year); or
        (2) the civil taxing unit's ad valorem property tax levy for the calendar year immediately preceding that ensuing calendar year:
            (A) as that levy was determined by the state board of tax commissioners (before its repeal) or its successor, the department of local government finance, in fixing the civil taxing unit's budget, levy, and rate for that preceding calendar year under IC 6-1.1-17; and
            (B) after eliminating the effects of temporary excessive levy appeals and temporary adjustments made to the working maximum levy for the calendar year immediately preceding the ensuing calendar year, as determined by the department of local government finance.