Indiana § 36-8-13-4.7 - Township providing fire protection and emergency services; maximum permissible property tax levy

§ 36-8-13-4.7. Township providing fire protection and emergency services; maximum permissible property tax levy

Sec. 4.7. (a) For a township that elects to have the township provide fire protection and emergency services under section 3(c) of this chapter, the department of local government finance shall adjust the township's maximum permissible levy described in section 4(c)(1) or 4(c)(2) of this chapter, as applicable, in the year following the year in which the change is elected, as determined under IC 6-1.1-18.5-3, to reflect the change from providing fire protection or emergency services under a contract between the municipality and the township to allowing the township to impose a property tax levy on the taxable property located within the corporate boundaries of each municipality. For the ensuing calendar year, the township's maximum permissible property tax levy described in section 4(c)(1) of this chapter, or the combined levies described in section 4(c)(2) of this chapter, which is considered a single levy for purposes of this section, shall be increased by the product of:

(1) one and five-hundredths (1.05); multiplied by

(2) the amount the township contracted or billed to receive, regardless of whether the amount was collected:

(A) in the year in which the change is elected; and

(B) as fire protection or emergency service payments from the municipalities or residents of the municipalities covered by the election under section 3(c) of this chapter.

The maximum permissible levy for a general fund or other fund of a municipality covered by the election under section 3(c) of this chapter shall be reduced for the ensuing calendar year to reflect the change to allowing the township to impose a property tax levy on the taxable property located within the corporate boundaries of the municipality. The total reduction in the maximum permissible levies for all electing municipalities must equal the amount that the maximum permissible levy for the township described in section 4(c)(1) of this chapter or the combined levies described in section 4(c)(2) of this chapter, as applicable, is increased under this subsection for contracts or billings, regardless of whether the amount was collected, less the amount actually paid from sources other than property tax revenue.

(b) For purposes of determining a township's and each municipality's maximum permissible ad valorem property tax levy under IC 6-1.1-18.5-3 for years following the first year after the year in which the change is elected, a township's and each municipality's maximum permissible ad valorem property tax levy is the levy (or in the case of a township electing to establish levies described in section 4(c)(2) of this chapter, the combined levies) after the adjustment made under subsection (a).

(c) The township may use the amount of a maximum permissible property tax levy (or in the case of a township electing to establish levies described in section 4(c)(2) of this chapter, the combined levies) computed under this section in setting budgets and property tax levies for any year in which the election in section 3(c) of this chapter is in effect.

(d) Section 4.6 of this chapter does not apply to a property tax levy or a maximum property tax levy subject to this section.

As added by P.L.54-1996, SEC.5. Amended by P.L.90-2002, SEC.496; P.L.224-2007, SEC.130; P.L.146-2008, SEC.783; P.L.257-2019, SEC.156; P.L.236-2023, SEC.206; P.L.136-2024, SEC.60.