Enrolled Senate Bill (S)

DIGEST

Local tax matters. Provides that when calculating the base rate for agricultural land for the January 1, 2016, assessment date and each assessment date thereafter, the department of local government finance (DLGF) shall do the following: (1) Use the six most recent years preceding the year in which the assessment date occurs for which data is available (before the highest of those six years is eliminated when determining the rolling average). (2) After determining a preliminary base rate that would apply for the assessment date, adjust the preliminary base rate as follows: (A) If the preliminary base rate for the Local tax matters. Provides that when calculating the base rate for agricultural land for the January 1, 2016, assessment date and each assessment date thereafter, the department of local government finance (DLGF) shall do the following: (1) Use the six most recent years preceding the year in which the assessment date occurs for which data is available (before the highest of those six years is eliminated when determining the rolling average). (2) After determining a preliminary base rate that would apply for the assessment date, adjust the preliminary base rate as follows: (A) If the preliminary base rate for the assessment date would be at least 10% greater than the final base rate determined for the preceding assessment date, a capitalization rate of 8% shall be used to determine the final base rate. (B) If the preliminary base rate for the assessment date would be at least 10% less than the final base rate determined for the preceding assessment date, a capitalization rate of 6% shall be used to determine the final base rate. (C) If the preliminary base rate for the assessment date is neither at least 10% greater nor at least 10% less than the final base rate determined for the preceding assessment date, a capitalization rate of 7% shall be used to determine the final base rate. Specifies that for purposes of the assessment of agricultural land, the soil productivity factors used for the March 1, 2011, assessment date shall be used for the January 1, 2016, assessment date and each assessment date thereafter. (Under current law, new soil productivity factors are to be used for assessment dates occurring after March 1, 2015.) Deletes the requirement that an assessor shall examine and verify the accuracy of each personal property tax return filed by a taxpayer. Provides instead that an assessor may examine and verify the accuracy of a personal property tax return if the assessor considers the examination and verification of that personal property return to be useful to the accuracy of the assessment process. Increases the assessed value per acre of classified forest land, classified windbreaks, and classified filter strips from $1 per acre to $13.29 per acre for the January 1, 2017, assessment date. For assessment dates after January 1, 2017, increases the assessed value by the annual percentage change in the consumer price index. Adds certain types of property to the exemption for property used for public airport purposes. Authorizes a county fiscal body to adopt an ordinance to capture taxes from all taxing units in a taxing district when there is an appeal that is uncommon and infrequent. Specifies that such a taxing unit may not include these captured taxes as part of an appeal for a shortfall levy increase. Provides an exemption from the maximum property tax levy limits for a municipality in a year if: (1) the percentage growth in the municipality's assessed value for the preceding year compared to the year before the preceding year is at least two times the assessed value growth quotient; and (2) the municipality's population increased by at least 150% between the last two decennial censuses. Specifies that such a municipality may increase its property tax levy in excess of the levy limits by a percentage equal to the lesser of 6% or the percentage growth in the municipality's assessed value for the preceding year compared to the year before the preceding year. Provides that Cain Township in Fountain County may increase its maximum township unit levy and its maximum levy for fire protection and emergency services for 2017. Limits the increase to what each of these levies would be for 2017 if the township had imposed the maximum amount for each of these levies since 2003. Permits the fiscal body of Howard Township in Washington County to adopt a resolution to authorize the township executive to request that the DLGF increase the township's maximum permissible property tax levy for 2017 and thereafter. Requires the DLGF to increase the maximum levy by 10%. Permits a county fiscal body to impose a local income tax (LIT) rate for a public safety emergency assistance answering point that is part of the statewide 911 system (PSAP) if the adopting body in the county is the LIT council and the LIT council has not allocated the revenue from an expenditure rate of at least 0.1% to a PSAP in the county. Specifies that the rate may not exceed 0.1%. Specifies that the revenue generated by the rate is to be paid only to the county unit and used only for a PSAP. Allows a county to use excess reserves in its prisoner reimbursement fund for the costs of care, maintenance, and housing of prisoners, including the cost of housing prisoners in the facilities of another county. Expires under the tax increment financing law the downtown Indianapolis consolidated allocation area on January 1, 2051. Urges a study of the topic of allowing an exemption from the maximum levy limits for growing municipalities by the interim study committee on fiscal policy. ... View more