2023 Indiana Code › Title 6. Taxation › Article 1.1. Property Taxes › Chapter 18.5. Civil Government Property Tax Controls › 6-1.1-18.5-10.5. Civil Taxing Unit Levy Limit Exceptions Related to Fire Protection Territories; Levy Growth Limitation; Department of Local Government Finance Determination of Budget, Rate, and Levy for Civil Taxing Unit That Joins Fire Protection Territory; Maximum Period to Implement Total Tax Rate for Certain Fire Protection Territory Participating Units

Sec. 10.5. (a) The ad valorem property tax levy limits imposed by section 3 of this chapter do not apply to ad valorem property taxes imposed by a civil taxing unit for fire protection services within a fire protection territory under IC 36-8-19, if the civil taxing unit is a participating unit in a fire protection territory established before August 1, 2001. For purposes of computing the ad valorem property tax levy limits imposed on a civil taxing unit by section 3 of this chapter on a civil taxing unit that is a participating unit in a fire protection territory, established before August 1, 2001, the civil taxing unit's ad valorem property tax levy for a particular calendar year does not include that part of the levy imposed under IC 36-8-19. Any property taxes imposed by a civil taxing unit that are exempted by this subsection from the ad valorem property tax levy limits imposed by section 3 of this chapter and first due and payable after December 31, 2008, may not increase annually by a percentage greater than the result of:
(1) the maximum levy growth quotient determined under section 2 of this chapter; minus
(2) one (1).
(b) The department of local government finance may, under this subsection, increase the maximum permissible ad valorem property tax levy that would otherwise apply to a civil taxing unit under section 3 of this chapter to meet the civil taxing unit's obligations to a fire protection territory established under IC 36-8-19. To obtain an increase in the civil taxing unit's maximum permissible ad valorem property tax levy, a civil taxing unit shall submit a petition to the department of local government finance in the year immediately preceding the first year in which the civil taxing unit levies a tax to support the fire protection territory. The petition must be filed before the date specified in section 12(a)(1) of this chapter of that year. The department of local government finance shall make a final determination of the civil taxing unit's budget, ad valorem property tax levy, and property tax rate for the fire protection territory for the ensuing calendar year. In making its determination under this subsection, the department of local government finance shall consider the amount that the civil taxing unit is obligated to provide to meet the expenses of operation and maintenance of the fire protection services within the territory, including the participating unit's reasonable share of an operating balance for the fire protection territory. The department of local government finance shall determine the entire amount of the allowable adjustment in the final determination. The department shall order the adjustment implemented in the amounts and over the number of years, not exceeding three (3), requested by the petitioning civil taxing unit. However, the department of local government finance may not approve under this subsection a property tax levy greater than zero (0) if the civil taxing unit did not exist as of the assessment date for which the tax levy will be imposed. For purposes of applying this subsection to the civil taxing unit's maximum permissible ad valorem property tax levy in subsequent calendar years, the department of local government finance may determine not to consider part or all of the part of the property tax levy imposed to establish the operating balance of the fire protection territory.
(c) This subsection applies to a participating unit in a fire protection territory established under IC 36-8-19 after December 31, 2022. Notwithstanding any other law, if a total tax rate levied upon the formation of a fire protection territory established under IC 36-8-19 is to be implemented over a number of years as provided in IC 36-8-19-7(c), the maximum permissible ad valorem property tax levy that would otherwise apply to a participating unit under section 3 of this chapter to meet the participating unit's obligations to a fire protection territory does not apply to ad valorem property taxes imposed by the participating unit to meet the participating unit's obligations to the fire protection territory over the number of years in which the total tax rate is to be implemented by each participating unit. For purposes of calculating the maximum permissible ad valorem property tax levy imposed by a participating unit for each year for which the participating unit implements a total tax rate to support the fire protection territory, the participating unit's maximum permissible ad valorem property tax levy for the preceding calendar year under section 3(a) STEP ONE of this chapter is increased each year by an amount equal to the difference between:
(1) the amount the participating unit will have to levy for the ensuing calendar year in order to fund the participating unit's share of the fire protection territory budget for the operating costs as provided in the ordinance or resolution making the unit a participating unit in the fire protection territory; and
(2) the participating unit's levy for fire protection services for the calendar year that immediately precedes the ensuing calendar year in which the participating unit levies a tax to support the fire protection territory.
As added by P.L.37-1994, SEC.1. Amended by P.L.240-2001, SEC.1; P.L.146-2008, SEC.177; P.L.182-2009(ss), SEC.129; P.L.113-2010, SEC.32; P.L.245-2015, SEC.13; P.L.159-2020, SEC.34; P.L.95-2022, SEC.2.