CHAPTER 8. SUPPLEMENTAL COUNTY LEVY; DEARBORN COUNTY
IC 20-45-8
Chapter 8. Supplemental County Levy; Dearborn County
IC 20-45-8-1
Application
Sec. 1. This chapter applies only to Dearborn County. This
chapter applies to an area outside Dearborn County to the extent that
the area is part of a qualified school corporation.
As added by P.L.2-2006, SEC.168.
IC 20-45-8-2
Policy
Sec. 2. The following is declared to be the policy of this chapter:
(1) That in certain areas in Indiana there exists a condition
created by the large concentration of taxable property in a
single township away from outlying areas that has created
administrative and financial problems in the maintenance and
operation of school systems in those areas, resulting in
maladjustment of taxable wealth in such areas for levying taxes
for the operation of the schools.
(2) That improvement in the administrative and financial
structures of the qualified school corporations existing on
March 12, 1965, in those outlying areas is essential for:
(A) the establishment and maintenance of a general uniform
and efficient system of public schools to provide a more
equalized educational opportunity for public school pupils;
(B) the achievement of greater equity in school tax rates
among the inhabitants of the various qualified school
corporations existing on March 12, 1965, in these areas; and
(C) the provision for more use of the public funds expended
for the support of the public school systems.
(3) That statutes existing on March 12, 1965, with respect to the
granting of financial assistance on a countywide school basis,
allowing a more favorable use of the taxable wealth of the
county for the support of the various school districts within or
attached to the county, are inadequate to effectuate the need for
this improvement in those areas described in this chapter.
(4) That modification in the statutory provisions existing on
March 12, 1965, pertaining to the levying of tax rates for school
purposes for those areas that qualify within the definitions in
this chapter is essential to carry out the purposes of IC 20-23-4,
and the tax levied under this chapter shall be considered a
county tax within the meaning of IC 20-23-4, and to that end it
is the intent of the general assembly, by this chapter, to make
provision for a more satisfactory use of the taxable wealth of
counties that qualify under this chapter for the promotion,
betterment, and improvement of their educational systems.
As added by P.L.2-2006, SEC.168.
IC 20-45-8-3
"Assessed valuation"
Sec. 3. As used in this chapter, "assessed valuation" of any
qualified school corporation means the net assessed value of its real
and taxable personal property adjusted by a percentage factor. This
factor shall be computed by the department of local government
finance on a townshipwide basis for each township in the qualified
county and areas assigned to the qualified county for school purposes
in the same manner that the department of local government finance
computes a factor for the various counties of the state under
IC 6-1.1-34. In determining the assessed valuation of any qualified
school corporation, the factor for any township shall be applied to
the assessed valuation of the real and taxable personal property of
each qualified school corporation lying within the township and
school areas attached to the township.
As added by P.L.2-2006, SEC.168.
IC 20-45-8-4
"Board of county commissioners"
Sec. 4. As used in this chapter, "board of county commissioners"
refers to the board of county commissioners of a qualified county.
As added by P.L.2-2006, SEC.168.
IC 20-45-8-5
"County auditor"
Sec. 5. As used in this chapter, "county auditor" means the county
auditor of a qualified county.
As added by P.L.2-2006, SEC.168.
IC 20-45-8-6
"Fund"
Sec. 6. As used in this chapter, "fund" means the county school
distribution fund:
(1) into which the receipts from the tax must be credited; and
(2) from which distribution to a qualified school corporation
must be charged.
As added by P.L.2-2006, SEC.168.
IC 20-45-8-7
"Entitlement"
Sec. 7. As used in this chapter, "entitlement" of a qualified school
corporation is that part of the fund:
(1) to which a qualified school corporation is entitled for any
calendar year; and
(2) on the basis of which the tax is set under this chapter.
As added by P.L.2-2006, SEC.168.
IC 20-45-8-8
"Paying qualified school corporation"
Sec. 8. As used in this chapter, "paying qualified school
corporation" means any qualified school corporation in which the tax
collected on the assessed valuation of the qualified school
corporation exceeds the amount of the entitlement payable to the
qualified school corporation under this chapter.
As added by P.L.2-2006, SEC.168.
IC 20-45-8-9
"Qualified county"
Sec. 9. As used in this chapter, "qualified county" refers to
Dearborn County. The term includes any area attached to Dearborn
County for school purposes.
As added by P.L.2-2006, SEC.168.
IC 20-45-8-10
"Qualified school corporation"
Sec. 10. As used in this chapter, "qualified school corporation"
means a school corporation that has under its jurisdiction any
territory that is located in the qualified county.
As added by P.L.2-2006, SEC.168.
IC 20-45-8-11
"Receiving qualified school corporation"
Sec. 11. As used in this chapter, "receiving qualified school
corporation" means any qualified school corporation receiving an
entitlement under this chapter that exceeds the amount of the tax
collected on the assessed valuation of the qualified school
corporation.
As added by P.L.2-2006, SEC.168.
IC 20-45-8-12
"Tax"
Sec. 12. As used in this chapter, "tax" means the county
supplemental school financing property tax to be levied by the board
of county commissioners of a qualifying county under this chapter.
As added by P.L.2-2006, SEC.168.
IC 20-45-8-13
"Total school tax rate"
Sec. 13. "Total school tax rate" means the sum of the property tax
rates levied for all school purposes.
As added by P.L.2-2006, SEC.168.
IC 20-45-8-14
Establishment of fund
Sec. 14. A county school distribution fund is established in a
qualified county.
As added by P.L.2-2006, SEC.168.
IC 20-45-8-15
Appropriation
Sec. 15. There shall be appropriated from the fund to qualified
school corporations, in the manner provided in this chapter,
sufficient amounts of money to achieve the purposes of this chapter.
As added by P.L.2-2006, SEC.168.
IC 20-45-8-16
Duty; levy of countywide tax
Sec. 16. (a) The board of county commissioners shall levy a
county supplemental school financing tax at a rate that is sufficient
to annually provide adequate funds to carry out the purposes of this
chapter. The various officials and employees of the qualified county
and the qualified school corporations charged with the duty of
levying, collecting, and receiving other property tax funds for county
or school purposes, or both, shall take the appropriate and respective
steps as otherwise required by law for the levying, collecting, and
receiving of property taxes in order to levy, collect, and receive the
tax.
(b) The receipts from the tax shall be credited into the fund and
paid from the fund by the county auditor to the qualified school
corporations.
As added by P.L.2-2006, SEC.168.
IC 20-45-8-17
Levy in contiguous area of adjacent county
Sec. 17. If the area of a qualified school corporation extends into
an adjoining county, the tax rate fixed by the board of county
commissioners shall control for the levying and assessment of the tax
in the area extending into the adjoining county. The board of county
commissioners and other county officials of the adjoining county
shall take all appropriate and necessary action as otherwise required
by law for:
(1) the levying, collecting, and receiving of the county
supplemental school financing taxes; and
(2) the payment of the taxes into the fund;
for distribution under this chapter.
As added by P.L.2-2006, SEC.168.
IC 20-45-8-18
Certification; information needed to calculate levy
Sec. 18. (a) Before July 11 of each year, the state superintendent
shall deliver to the county auditor a certified statement of the ADM
in grades 1 through 12 residing in each qualified school corporation
for the immediately preceding school year.
(b) Upon the receipt of the information, the county auditor shall
compute the amount to be distributed to each of the qualified school
corporations from the receipts of the tax levy, based on the formula
set forth in this chapter.
(c) The county auditor shall annually issue a warrant to the county
treasurer ordering the payment to the respective qualified school
corporations the various amounts in the fund at each semiannual tax
settlement period during the year in which the tax has been collected.
(d) The qualified school corporations and the proper officials and
employees of the qualified school corporations shall receive the
receipts distributed by the county treasurer in the same manner as
other tax receipts are received.
As added by P.L.2-2006, SEC.168.
IC 20-45-8-19
Use
Sec. 19. The receipts from the tax are available to a qualified
school corporation for any purpose or purposes for which school
expenditures are authorized by law. The purpose or purposes for
which the receipts from the tax are used rests within the discretion of
the administrative officer or governing board of each qualified school
corporation. The budgets of the qualified school corporations must
reflect the anticipated receipts from the tax. Appropriations shall be
made of the receipts from the tax as other appropriations are made.
As added by P.L.2-2006, SEC.168.
IC 20-45-8-20
Application of other laws
Sec. 20. The tax levy is subject to all laws concerning review by
the county board of tax adjustment and the department of local
government finance.
As added by P.L.2-2006, SEC.168. Amended by P.L.224-2007,
SEC.115; P.L.146-2008, SEC.493.
IC 20-45-8-21
Eligibility for distribution; required minimum levy
Sec. 21. To qualify to receive any of the receipts of a tax levy, a
qualified school corporation must levy against the assessed valuation
of the qualified school corporation a total school tax rate sufficient
to generate an amount equal to the amount of revenues deposited in
the fund in calendar year 1979.
As added by P.L.2-2006, SEC.168.
IC 20-45-8-22
Calculation; tax levy
Sec. 22. (a) The amount to be raised by the tax shall be
determined in any calendar year by the county auditor and certified
to by the board of county commissioners before the time for making
the county budgets in the year.
(b) The amount is the total of the entitlements of all qualified
school corporations.
(c) The entitlement of each qualified school corporation
calculated in a calendar year is an amount equal to the result
determined under STEP TWO of the following formula:
STEP ONE: Calculate the quotient of:
(A) the total amount deposited in the fund in calendar year
1979 or the first year in which a deposit was made,
whichever is later; divided by
(B) the total ADM of the immediately preceding school year
of qualified school corporations that received money from
the fund in 1979.
STEP TWO: Calculate the product of:
(A) the STEP ONE result; multiplied by
(B) the ADM of the immediately preceding school year of
the qualified school corporation that received money from
the fund in 1979.
As added by P.L.2-2006, SEC.168.
IC 20-45-8-23
Distribution; revenue in addition to other levies
Sec. 23. The entitlement of a receiving qualified school
corporation may not have the effect of reducing the total school tax
rate of the qualified school corporation below the total school tax
rate prevailing in any paying qualified school corporation. Any
entitlement payable under this chapter shall be reduced so as not to
produce that effect. However, the entitlement of a receiving qualified
school corporation that levies its maximum tuition support levy shall
not be affected by the receiving qualified school corporation's tax
rate.
As added by P.L.2-2006, SEC.168.
IC 20-45-8-24
Duty; levy of countywide tax; amount
Sec. 24. (a) The board of county commissioners shall levy a tax
rate on all the real and taxable personal property in the county that
is sufficient to raise the total of the entitlements in the same manner
as other county property tax rates are levied.
(b) If the board of county commissioners fails in any calendar year
to levy the tax rate required by this chapter, the department of local
government finance shall certify the amount of the tax levy to the
county auditor. The certified rate shall be the tax for the calendar
year. The tax shall be collected and received by the county treasurer
in the same manner as other county property taxes are collected.
As added by P.L.2-2006, SEC.168.
IC 20-45-8-25
Distribution to school corporations
Sec. 25. (a) The money received into the fund in any calendar year
shall be paid to the qualified school corporations in accordance with
their entitlements, determined in the immediately preceding calendar
year, in the same manner as other tax distributions.
(b) A qualified school corporation has the same rights to advance
payments of a distribution from the fund as the qualified school
corporation's right to advance payments of other property taxes.
(c) If the tax receipts in the county school distribution fund in any
calendar year are less than the total of the entitlements for any
reason, on account of delinquencies in collection or otherwise, each
entitlement shall be reduced in the same percentage so that the entire
fund is exhausted.
(d) If the tax receipts in any calendar year are more than the total
of the entitlements because of the collection of delinquencies for
prior years, each entitlement shall be increased in the same
percentage so that the entire fund is exhausted.
As added by P.L.2-2006, SEC.168.
IC 20-45-8-26
Budget
Sec. 26. In making its budget, each qualified school corporation
shall take into account its anticipated receipts from the fund. The
county auditor, before July 15 of each year, shall certify to each
qualified school corporation the amount of its entitlement from the
fund to be used in the preparation of its budget. Any qualified school
corporation may also appropriate its entitlement by emergency
appropriation in the same manner as any property tax receipt.
As added by P.L.2-2006, SEC.168.
IC 20-45-8-27
Distribution; revenue in addition to state tuition support
Sec. 27. The tax provided by this chapter may not operate to
diminish the amount of state tuition support or other aid given by the
state.
As added by P.L.2-2006, SEC.168.
IC 20-45-8-28
Certification; other information
Sec. 28. The department of local government finance and the state
superintendent shall make certifications of any information in their
possession, or any other certifications required by this chapter that
will facilitate this chapter's execution.
As added by P.L.2-2006, SEC.168.