Section 20-46-1-10 - Question form; referendum levy; percentage of property tax increase(a) This section does not apply to a referendum on a resolution certified to the department of local government finance after March 15, 2016, to extend a referendum levy.(b) The question to be submitted to the voters in the referendum must read as follows: "Shall the school corporation increase property taxes paid to schools by homeowners and businesses for _____ (insert number of years) years immediately following the holding of the referendum for the purpose of funding ______ (insert short description of purposes)? If this public question is approved by the voters, the average property tax paid to schools per year on a residence would increase by ______% (insert the estimated average percentage of property tax increase paid to schools on a residence within the school corporation as determined under subsection (c)) and the average property tax paid to schools per year on a business property would increase by ______% (insert the estimated average percentage of property tax increase paid to schools on a business property within the school corporation as determined under subsection (d)). The most recent property tax referendum proposed by the school corporation was held in ______ (insert year) and ________ (insert whether the measure passed or failed).".
(c) At the request of the governing body of a school corporation that proposes to impose property taxes under this chapter, the county auditor of the county in which the school corporation is located shall determine the estimated average percentage of property tax increase on a homestead to be paid to schools that must be included in the public question under subsection (b) as follows: STEP ONE: Determine the average assessed value of a homestead located within the school corporation.
STEP TWO: For purposes of determining the net assessed value of the average homestead located within the school corporation, subtract:
(A) an amount for the homestead standard deduction under IC 6-1.1-12-37 as if the homestead described in STEP ONE was eligible for the deduction; and(B) an amount for the supplemental homestead deduction under IC 6-1.1-12-37.5 as if the homestead described in STEP ONE was eligible for the deduction; from the result of STEP ONE.
STEP THREE: Divide the result of STEP TWO by one hundred (100).
STEP FOUR: Determine the overall average tax rate per one hundred dollars ($100) of assessed valuation for the current year imposed on property located within the school corporation.
STEP FIVE: For purposes of determining net property tax liability of the average homestead located within the school corporation:
(A) multiply the result of STEP THREE by the result of STEP FOUR; and(B) as appropriate, apply any currently applicable county property tax credit rates and the credit for excessive property taxes under IC 6-1.1-20.6-7.5(a)(1).STEP SIX: Determine the amount of the school corporation's part of the result determined in STEP FIVE.
STEP SEVEN: Multiply:
(A) the tax rate that will be imposed if the public question is approved by the voters; by(B) the result of STEP THREE.STEP EIGHT: Divide the result of STEP SEVEN by the result of STEP SIX, expressed as a percentage.
(d) At the request of the governing body of a school corporation that proposes to impose property taxes under this chapter, the county auditor of the county in which the school corporation is located shall determine the estimated average percentage of property tax increase on a business property to be paid to schools that must be included in the public question under subsection (b) as follows: STEP ONE: Determine the average assessed value of business property located within the school corporation.
STEP TWO: Divide the result of STEP ONE by one hundred (100).
STEP THREE: Determine the overall average tax rate per one hundred dollars ($100) of assessed valuation for the current year imposed on property located within the school corporation.
STEP FOUR: For purposes of determining net property tax liability of the average business property located within the school corporation:
(A) multiply the result of STEP TWO by the result of STEP THREE; and(B) as appropriate, apply any currently applicable county property tax credit rates and the credit for excessive property taxes under IC 6-1.1-20.6-7.5 as if the applicable percentage was three percent (3%).STEP FIVE: Determine the amount of the school corporation's part of the result determined in STEP FOUR.
STEP SIX: Multiply:
(A) the result of STEP TWO; by(B) the tax rate that will be imposed if the public question is approved by the voters.STEP SEVEN: Divide the result of STEP SIX by the result of STEP FIVE, expressed as a percentage.
(e) The county auditor shall certify the estimated average percentage of property tax increase on a homestead to be paid to schools determined under subsection (c), and the estimated average percentage of property tax increase on a business property to be paid to schools determined under subsection (d), in a manner prescribed by the department of local government finance, and provide the certification to the governing body of the school corporation that proposes to impose property taxes.Pre-2006 Recodification Citation: 6-1.1-19-4.5(c) part.
Amended by P.L. 189-2023,SEC. 32, eff. 5/4/2023.Amended by P.L. 174-2022,SEC. 52, eff. 7/1/2022.Amended by P.L. 38-2021,SEC. 61, eff. 7/1/2021.Amended by P.L. 138-2016, SEC. 6, eff. 3/23/2016.Amended by P.L. 155-2014, SEC. 2, eff. 7/1/2014.As added by P.L. 2-2006, SEC.169. Amended by P.L. 113-2010, SEC.97.