Bill Text: IN SB0285 | 2012 | Regular Session | Amended
Bill Title: Review of local government budgets.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed - Dead) 2012-02-09 - First reading: referred to Committee on Ways and Means [SB0285 Detail]
Download: Indiana-2012-SB0285-Amended.html
Citations Affected: IC 6-1.1; IC 36-3.
Effective: July 1, 2012.
January 5, 2012, read first time and referred to Committee on Local Government.
January 26, 2012, amended, reported favorably _ Do Pass.
Digest Continued
property tax rates, and property tax levies. (2) When formulating the taxing unit's estimated budget, property tax rate, and property tax levy, each taxing unit shall consider estimated consequences of the circuit breaker property tax credits. (3) The DLGF shall prepare an analysis of the proposed budgets, property tax rates, and property tax levies submitted by taxing units in the pilot county and provide the analysis to the county fiscal body and to the fiscal body of each taxing unit in the pilot county. (4) Upon request by the county fiscal body, representatives of the DLGF shall appear before the county fiscal body to review the analysis. (5) The county fiscal body shall review the proposed budgets, property tax rates, and property tax levies of each taxing unit in the county and the total tax rate of each taxing district in the county, and shall issue a nonbinding recommendation to each taxing unit.
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A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
(b) This section applies to a civil taxing unit other than a county. Except as provided in section 3.7 of this chapter, if a civil taxing unit will impose property taxes due and payable in the ensuing calendar year, the civil taxing unit shall file with the fiscal body of the county in which the civil taxing unit is located:
(1) a statement of the proposed or estimated tax rate and tax levy for the civil taxing unit for the ensuing budget year;
(2) a copy of the civil taxing unit's proposed budget for the ensuing budget year; and
(3) a copy of the notice to taxpayers published under section 3(a) of this chapter that specifies the civil taxing unit's estimated budget, estimated maximum permissible tax levy, current and proposed tax levies of each fund, and amounts of excessive levy appeals to be requested.
(c) In the case of a civil taxing unit located in more than one (1) county, the civil taxing unit shall file the information under subsection (b) with the fiscal body of the county in which the greatest part of the civil taxing unit's net assessed valuation is located.
(d) A civil taxing unit must file the information under subsection (b)
(e) A county fiscal body shall complete the following
(1) Review any proposed or estimated tax rate or tax levy or proposed budget filed by a civil taxing unit with the county fiscal body under this section.
(2) Issue a nonbinding recommendation to a civil taxing unit regarding the civil taxing unit's proposed or estimated tax rate or tax levy or proposed budget.
(f) The recommendation under subsection (e) must include a comparison of any increase in the civil taxing unit's budget or tax levy to:
(1) the average increase in Indiana nonfarm personal income for the preceding six (6) calendar years and the average increase in nonfarm personal income for the county for the preceding six (6) calendar years; and
(2) increases in the budgets and tax levies of other civil taxing units in the county.
(g) The department of local government finance must provide each county fiscal body with the most recent available information concerning increases in Indiana nonfarm personal income and increases in county nonfarm personal income.
(h) If a civil taxing unit fails to file the information required by subsection (b) with the fiscal body of the county in which the civil taxing unit is located by the time prescribed in subsection (d), the most recent annual appropriations and annual tax levy of that civil taxing unit are continued for the ensuing budget year.
(i) If a county fiscal body fails to complete the requirements of
subsection (e) before the October 1 deadline in subsection (e) for any
civil taxing unit subject to this section, the most recent annual
appropriations and annual tax levy of the county are continued for the
ensuing budget year.
(b) The department of local government finance may establish a pilot program concerning nonbinding review of budgets, property tax rates, and property tax levies as provided in this section. The role of the department of local government finance in the pilot program is to develop the framework for the continuation of a more thorough nonbinding review in all counties without the direct involvement of the department of local government finance.
(c) For a county to be eligible for designation as a pilot county participating in the pilot program:
(1) the county fiscal body must adopt a resolution approving the submission of an application to be designated as a pilot county; and
(2) the county fiscal body must submit to the department of local government finance before the date specified by the department:
(A) an application in the form and containing the information prescribed by the department; and
(B) a copy of the resolution adopted under subdivision (1).
(d) After reviewing applications submitted under subsection (c), the department of local government finance may designate not more than three (3) counties that submit an application under subsection (c) as pilot counties under this section. In determining which counties shall be designated as pilot counties, the department of local government finance shall attempt to achieve diversity among designated counties based on:
(1) the geographical location of the counties;
(2) the population of the counties; and
(3) whether the counties are primarily rural or urban.
(e) The department of local government finance shall notify each taxing unit in a pilot county of:
(1) the designation of the county as a pilot county; and
(2) the duties of the taxing unit under this section.
(f) The following apply in 2013 and thereafter:
(1) Each taxing unit in a pilot county shall before September 1 of each year file with the department of local government finance and with the county fiscal body:
(A) the taxing unit's proposed budgets, property tax rates, and property tax levies for the following calendar year;
(B) a statement of whether:
(i) a petition and remonstrance process has been initiated under IC 6-1.1-20 concerning a controlled project of the taxing unit;
(ii) a public question under IC 6-1.1-20 concerning a controlled project of the taxing unit has been certified and will be on the election ballot;
(iii) a referendum tax levy question under IC 20-46-1 has been certified and will be on the election ballot; or
(iv) the taxing unit anticipates that it will during the following eighteen (18) months either adopt a resolution or ordinance under IC 6-1.1-20 making a preliminary determination to issue bonds or enter into a lease concerning a controlled project of the taxing unit or adopt a resolution under IC 20-46-1 to place a referendum tax levy question on the election ballot; and
(C) any additional information required by the department to prepare the analysis required under subdivision (4).
A school corporation providing information to the department of local government finance shall provide the information through the department's interactive and searchable Internet web site containing local government information (the Indiana gateway for governmental units). When formulating the taxing unit's estimated budget, property tax rate, and property tax levy under section 3 of this chapter, the proper officers of the taxing unit shall consider the estimated consequences of the property tax credits under IC 6-1.1-20.6 on the property taxes that will be collected by the taxing unit and the calculation of fund balances.
(2) A taxing unit in a pilot county that would otherwise be
required to submit its proposed budgets, property tax rates,
and property tax levies for nonbinding review under section
3.5 of this chapter is not required to do so, but the taxing unit
must instead submit the information required by subdivision
(1) to the department of local government finance.
(3) A taxing unit that is located in a pilot county and that is
subject to binding review and approval of the taxing unit's
budgets, property tax rates, and property tax levies under
IC 6-1.1-17-20 or IC 36-3-6-9:
(A) remains subject to binding review and approval under
those statutes and must submit the information required
under those statutes to the appropriate fiscal body; and
(B) must also submit the information required by
subdivision (1) to the department of local government
finance.
(4) The department shall prepare an analysis of the proposed
budgets, property tax rates, and property tax levies submitted
by taxing units in each pilot county. The department of local
government finance may establish appropriate procedures
and conduct the appropriate analysis that meets the
department's requirements for the review of a unit's budget
under IC 6-1.1-17. The analysis prepared by the department
must include at least the following:
(A) The estimated total property tax rate for each taxing
district in the pilot county.
(B) The estimated total amount of property taxes to be
levied in the pilot county.
(C) The estimated consequences of the property tax credits
under IC 6-1.1-20.6 on:
(i) the property tax rates of each taxing unit and taxing
district in the pilot county;
(ii) the expected total tax rate of each taxing district in
the county; and
(iii) the property taxes that will be collected by each
taxing unit in the pilot county.
(5) The department of local government finance shall before
October 1 of each year provide the analysis prepared under
subdivision (4) for a pilot county to the county fiscal body of
the pilot county and to the fiscal body of each taxing unit in
the pilot county. Upon request by the county fiscal body,
representatives of the department of local government finance
shall appear before the county fiscal body to review the
analysis.
(6) The county fiscal body of a pilot county shall on or before
October 15 of each year:
(A) review the proposed budgets, property tax rates, and
property tax levies of each taxing unit in the pilot county;
(B) review the expected total tax rate of each taxing district
in the county; and
(C) issue a nonbinding recommendation to each taxing unit
in the pilot county regarding the taxing unit's proposed
budgets, property tax rates, and property tax levies.
The review and recommendation required to be carried out
under this subdivision may be carried out by the full county
fiscal body or by a committee appointed by the county fiscal
body for that purpose.
(7) A recommendation by a county fiscal body must include a
comparison of any increase in a taxing unit's budgets,
property tax rates, and property tax levies to:
(A) the average increase in Indiana nonfarm personal
income for the preceding six (6) calendar years and the
average increase in nonfarm personal income for the
county for the preceding six (6) calendar years; and
(B) increases in the budgets, property tax rates, and
property tax levies of other taxing units in the county.
(8) After review under this section, a taxing unit must adopt
its budget, property tax rates, and property tax levies by the
date required under IC 6-1.1-17-5.
(g) The county fiscal body of a pilot county may before July 1 of
a year adopt a resolution discontinuing the county's participation
in the pilot program. If a county fiscal body adopts such a
resolution:
(1) the county fiscal body shall certify a copy of the resolution
to the department of local government finance;
(2) the county's participation in the pilot program is
terminated; and
(3) the department of local government finance shall attempt
to replace the county with another county that has applied to
be designated as a pilot county.
(h) The department of local government finance shall, before
November 1, 2013, and each year thereafter, report to the
commission on state tax and financing policy concerning the pilot
program and whether the nonbinding review under the pilot
program is fostering cooperation among taxing units in the
adoption of their budgets, property tax rates, and property tax
levies.
(i) This section expires January 1, 2016.
(1) is not comprised of a majority of officials who are elected to serve on the governing body; and
(2) either:
(A) is:
(i) a conservancy district subject to IC 14-33-9;
(ii) a solid waste management district subject to IC 13-21; or
(iii) a fire protection district subject to IC 36-8-11-18; or
(B) has a percentage increase in the proposed budget for the taxing unit for the ensuing calendar year that is more than the result of:
(i) the assessed value growth quotient determined under IC 6-1.1-18.5-2 for the ensuing calendar year; minus
(ii) one (1).
For purposes of this section, an individual who qualifies to be appointed to a governing body or serves on a governing body because of the individual's status as an elected official of another taxing unit shall be treated as an official who was not elected to serve on the governing body.
(b) As used in this section, "taxing unit" has the meaning set forth in IC 6-1.1-1-21, except that the term does not include:
(1) a school corporation; or
(2) an entity whose tax levies are subject to review and modification by a city-county legislative body or a city or town fiscal body under IC 36-3-6-9.
(c) If:
(1) the assessed valuation of a taxing unit is entirely contained within a city or town; or
(2) the assessed valuation of a taxing unit is not entirely contained within a city or town but the taxing unit was originally established by the city or town;
the governing body of the taxing unit shall submit its proposed budget and property tax levy to the city or town fiscal body. The proposed budget and levy shall be submitted
under this chapter. on or before September 1 of each year. However,
in the case of a public library that is subject to this section and is
described in subdivision (2), the public library shall submit its
proposed budget and property tax levy to the county fiscal body in the
manner provided in subsection (d), rather than to the city or town fiscal
body, if more than fifty percent (50%) of the parcels of real property
within the jurisdiction of the public library are located outside the city
or town.
(d) If subsection (c) does not apply, the governing body of the taxing
unit shall submit its proposed budget and property tax levy to the
county fiscal body in the county where the taxing unit has the most
assessed valuation. The proposed budget and levy shall be submitted
at least thirty (30) days before the county fiscal body is required to hold
budget approval hearings under this chapter. on or before September
1 of each year.
(e) The governing body of a taxing unit that submits its
proposed budget and property tax levy to a fiscal body under
subsection (c) or (d) must also submit to the fiscal body at the same
time a copy of the notice to taxpayers published under section 3(a)
of this chapter that specifies the taxing unit's estimated budget,
estimated maximum permissible tax levy, current and proposed tax
levies of each fund, and amounts of excessive levy appeals to be
requested.
(e) (f) The fiscal body of the city, town, or county (whichever
applies) shall review each budget and proposed tax levy and adopt a
final budget and tax levy for the taxing unit. The fiscal body may
reduce or modify but not increase the proposed budget or tax levy.
(f) (g) If a taxing unit fails to file the information required in
subsection (c) or (d), whichever applies, with the appropriate fiscal
body by the time prescribed by this section, the most recent annual
appropriations and annual tax levy of that taxing unit are continued for
the ensuing budget year.
(g) (h) If the appropriate fiscal body fails to complete the
requirements of subsection (e) (f) before the adoption deadline in
section 5 of this chapter for any taxing unit subject to this section, the
most recent annual appropriations and annual tax levy of the city, town,
or county, whichever applies, are continued for the ensuing budget
year.
as finally determined under this article, they shall give notice of their
proposed additional appropriation. The notice shall state the time and
place at which a public hearing will be held on the proposal. The notice
shall be given once in accordance with IC 5-3-1-2(b).
(b) If the additional appropriation by the political subdivision is
made from a fund that receives:
(1) distributions from the motor vehicle highway account
established under IC 8-14-1-1 or the local road and street account
established under IC 8-14-2-4; or
(2) revenue from property taxes levied under IC 6-1.1;
the political subdivision must report the additional appropriation to the
department of local government finance. If the additional appropriation
is made from a fund described under this subsection, subsections (f),
(g), (h), and (i) apply to the political subdivision.
(c) However, if the additional appropriation is not made from a fund
described under subsection (b), subsections (f), (g), (h), and (i) do not
apply to the political subdivision. Subsections (f), (g), (h), and (i) do
not apply to an additional appropriation made from the cumulative
bridge fund if the appropriation meets the requirements under
IC 8-16-3-3(c).
(d) A political subdivision may make an additional appropriation
without approval of the department of local government finance if the
additional appropriation is made from a fund that is not described
under subsection (b). However, the fiscal officer of the political
subdivision shall report the additional appropriation to the department
of local government finance.
(e) After the public hearing, the proper officers of the political
subdivision shall file a certified copy of their final proposal and any
other relevant information to the department of local government
finance.
(f) When the department of local government finance receives a
certified copy of a proposal for an additional appropriation under
subsection (e), the department shall determine whether sufficient funds
are available or will be available for the proposal. The determination
shall be made in writing and sent to the political subdivision not more
than fifteen (15) days after the department of local government finance
receives the proposal.
(g) In making the determination under subsection (f), the
department of local government finance shall limit the amount of the
additional appropriation to revenues available, or to be made available,
which have not been previously appropriated.
(h) If the department of local government finance disapproves an
additional appropriation under subsection (f), the department shall
specify the reason for its disapproval on the determination sent to the
political subdivision.
(i) A political subdivision may request a reconsideration of a
determination of the department of local government finance under this
section by filing a written request for reconsideration. A request for
reconsideration must:
(1) be filed with the department of local government finance
within fifteen (15) days of the receipt of the determination by the
political subdivision; and
(2) state with reasonable specificity the reason for the request.
The department of local government finance must act on a request for
reconsideration within fifteen (15) days of receiving the request.
(j) In addition to any other requirements under this section or
any other law, a political subdivision that is required to submit its
proposed budget and property tax levy to:
(1) a municipal fiscal body or county fiscal body for approval
under IC 6-1.1-17-20; or
(2) the city-county legislative body or a city or town fiscal
body for approval under IC 36-3-6-9;
may make an additional appropriation only if the additional
appropriation is also approved by the fiscal body or legislative
body that approved the political subdivision's proposed budget and
property tax levy under IC 6-1.1-17-20 or IC 36-3-6-9.
(1) An airport authority operating under IC 8-22-3.
(2) A public library operating under IC 36-12.
(3) A capital improvement board of managers operating under IC 36-10.
(4) A public transportation corporation operating under IC 36-9-4.
(5) A health and hospital corporation established under IC 16-22-8.
(6) Any other taxing unit (as defined in IC 6-1.1-1-21) that is located in the county and has a governing body that is not comprised of a majority of officials who are elected to serve on the governing body.
Except as provided in subsection (c), the city-county legislative body may reduce or modify but not increase a proposed operating and maintenance budget or tax levy under this section.
(b) The board of each entity listed in subsection (a) shall, after adoption of its proposed budget and tax levies, submit them, along with detailed accounts, to the city clerk on or before the first day of September of each year.
(c) The city-county legislative body or, when subsection (d) applies, the fiscal body of an excluded city or town shall review the issuance of bonds of an entity listed in subsection (a). Approval of the city-county legislative body or, when subsection (d) applies, the fiscal body of an excluded city or town is required for the issuance of bonds. The city-county legislative body or the fiscal body of an excluded city or town may not reduce or modify a budget or tax levy of an entity listed in subsection (a) in a manner that would:
(1) limit or restrict the rights vested in the entity to fulfill the terms of any agreement made with the holders of the entity's bonds; or
(2) in any way impair the rights or remedies of the holders of the entity's bonds.
(d) If the assessed valuation of a taxing unit is entirely contained within an excluded city or town (as described in IC 36-3-1-7) that is located in a county having a consolidated city, the governing body of the taxing unit shall submit its proposed operating and maintenance budget and tax levies to the city or town fiscal body for approval and not the city-county legislative body. Except as provided in subsection (c), the fiscal body of the excluded city or town may reduce or modify but not increase a proposed operating and maintenance budget or tax levy under this section.
(e) The governing body of an entity that submits its proposed budget and property tax levy to the city-county legislative body or a city or town fiscal body for approval under this section shall also submit to the legislative body or fiscal body at the same time a copy of the notice to taxpayers published under IC 6-1.1-17-3(a) that specifies the entity's estimated budget, estimated maximum permissible tax levy, current and proposed tax levies of each fund, and amounts of excessive levy appeals to be requested.
