(A) Application. This section applies to the city.
(B) Authorization of Fund purpose. The City Council, with the approval of the state Board of Tax Commissioners, establishes a Cumulative Capital Development Fund to provide money for which purpose for the property taxes may be imposed within the municipality under the authority of: I.C. 8-16-3, Bridges and Tunnels; I.C. 8-22-3-25, Airport Authorities; I.C. 14-33-1 et seq., Conservancy Districts; I.C. 16-23-1 et seq., City Hospitals; I.C. 36-8-14, Cumulative Building and Equipment Fund; I.C. 36-9-4-48, Urban Mass Transportation; I.C. 36-9-16-2, Cumulative Building Fund; I.C. 36-9-16-3, Cumulative Capital Improvement Fund; I.C. 36-9-16.5, Cumulative Street Fund; I.C. 36-9-17, General Improvement Fund; I.C. 36-9-26, Cumulative Sewer Building Fund; or I.C. 36-10-3-21 or 36-10-4-36, Parks Building Fund.
(C) Notice and hearing on proposed Fund.
(1) The city, in establishing a Cumulative Capital Development Fund, shall:
(a) Give notice of the proposal to the affected taxpayers; and
(b) Hold a public hearing on the proposal before presenting it to the state Board of Tax Commissioners for approval.
(2) Notice of the proposal and of the public hearing shall be given by publication in accordance with I.C. 5-14-1.5-5.
(D) Submission to Tax Commissioners; notice; objections; hearings; decisions.
(1) If, after the public hearing held under division (C) of this section, the proposal is submitted for approval to the state Board of Tax Commissioners, the Board shall require notice of the submission to be given to the taxpayer of the municipality in the manner prescribed by division (C)(2) of this section. Fifty or more of the taxpayers in the municipality may file a petition setting forth their objections to the proposed levy with the County Auditor not later than 30 days after the publication under this division.
(2) The County Auditor shall immediately certify a petition filed under division (D)(1) above to the state Board of Tax Commissioners. The Board shall, within a reasonable time, fix a date for a hearing on the petition, which shall be held in the affected municipality. Notice of the hearing shall be given to the County Auditor and to the first ten taxpayers whose names appear upon the petition by a letter that is signed by the secretary or any member of the Board and mailed to the Auditor and the taxpayers at their usual place of residence at least five days before the date fixed for the hearing.
(3) After the hearing, the state Board of Tax Commissioners shall certify its approval, disapproval, or modification of the proposal to the Auditor of the county. The action of the Board with respect to the proposed levy is final and conclusive.
(E) Municipal plans; presentation in notice and hearings. In the notice provided to the public and at the required hearings, the municipality shall present a plan that describes the tax levy that will impose for the fund, the length of time (up to a maximum of three years) during which the municipality plans to impose a property tax under this section, and the use that the municipality plans to make of the taxes raised.
(F) Tax levy; rate of tax.
(1) The municipal fiscal body shall provide money for the Cumulative Capital Development Fund by levying a tax on the taxable property in the municipality.
(2) The maximum property tax rate that may be imposed for property taxes first due and payable during a particular year in a municipality that is either wholly or partially located in a county in which the county option income tax or the county adjusted gross income tax is in effect on January 1 of that year depends upon the number of years the municipality has previously imposed a tax under this chapter and is determined under the following table:
Number of Years | Maximum Tax Rate per $100 of Assessed Valuation |
0 | $0.05 |
1 | $0.10 |
2 or more | $0.15 |
(3) Beginning with the first annual tax levy after the state Board of Tax Commissioners approves the tax rate, the municipal fiscal body may levy the tax annually for any period not exceeding three years. A tax levy under this section must be advertised annually in the same manner as other tax levies.
(4) After a tax levy has been imposed under this section for the period approved by the state Board of Tax Commissioners, a new tax levy may not be imposed under the authority of this section until the municipality has complied with the hearing and notice requirements provided by this section for the establishment of a Cumulative Capital Development Fund.
(G) Reduction or rescission of tax levy.
(1) A municipal legislative body may reduce or rescind a tax levy made under division (F) of this section.
(2) Fifty or more taxpayers in the municipality may file with the County Auditor, not later than August 1 of any year, a petition for reduction or rescission of a tax levy made under division (F) of this section. The petition must set forth the taxpayers’ objections to the levy and be certified to the state Board of Tax Commissioners. The Board shall give notice and conduct a hearing in the manner prescribed by division (D) of this section. After the hearing, the Board may reduce or rescind the levy, and its action is final and conclusive.
(H) Deposits and expenditures.
(1) The tax money collected under this section shall be held in a special fund to be known as the Cumulative Capital Development Fund. The money may not be expended for any purpose other than the purpose for which the tax was levied.
(2) Expenditures from the Cumulative Capital Development Fund may be made only after an appropriation made in the manner provided by law for making other appropriations.
(3) Notwithstanding divisions (H)(1) and (H)(2), money held in the Cumulative Capital Development Fund may be spent for purposes other than the purposes stated in division (B) of this section, if the purpose is to protect the public health, welfare, or safety in an emergency situation that demands immediate action or to make a contribution to an authority established under I.C. 36-7-23, money may be spent under the authority of this division only after the executive of the municipality:
(a) Issues a declaration that the public health, welfare, or safety is in immediate danger that requires the expenditure of money in the Fund; or
(b) Certifies in the minutes of the municipal legislative body that the contribution is made to the authority for capital development purposes.
(1987 Code, § 2-195) (Ord. 18, 1992, passed 6-8-1992)