Section 20-46-9-10 - Question form; resolution to extend a referendum levy; formula; certification(a) This section applies only to a referendum to allow a school corporation to extend a referendum tax levy.(b) The question to be submitted to the voters in the referendum must read as follows: "Shall the school corporation continue to impose increased property taxes paid to the school corporation 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)? The property tax increase requested in this referendum was originally approved by the voters in _______ (insert the year in which the referendum tax levy was approved) and if extended will increase the average property tax paid to the school corporation per year on a residence within the school corporation by ______% (insert the estimated average percentage of property tax increase on a residence within the school corporation) and if extended will increase the average property tax paid to the school corporation per year on a business property within the school corporation by ______% (insert the estimated average percentage of property tax increase on a business within the school corporation).".
(c) The number of years for which a referendum tax levy may be extended if the public question under this section is approved may not exceed the number of years for which the expiring referendum tax levy was imposed.(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 homestead to be paid to the school corporation 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.
(e) 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 the school corporation 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.
(f) The county auditor shall certify the estimated average percentage of property tax increase on a homestead to be paid to the school corporation determined under subsection (d), and the estimated average percentage of property tax increase on a business property to be paid to the school corporation determined under subsection (e), 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.Amended by P.L. 236-2023,SEC. 156, eff. 7/1/2023.Amended by P.L. 174-2022,SEC. 56, eff. 7/1/2022.Amended by P.L. 38-2021,SEC. 66, eff. 7/1/2021.Added by P.L. 272-2019,SEC. 12, eff. 7/1/2019.