Note: This version of section effective 1-1-2028. See also preceding version of this section, effective until 1-1-2028.
Sec. 3. (a) A civil taxing unit may not impose an ad valorem property tax levy for an ensuing calendar year that exceeds the amount determined in the last STEP of the following STEPS:
STEP ONE: Determine the civil taxing unit's maximum permissible ad valorem property tax levy for the preceding calendar year.
STEP TWO: Multiply the amount determined in STEP ONE by the amount determined in the last STEP of section 2(b) of this chapter.
STEP THREE: Determine the lesser of one and fifteen hundredths (1.15) or the quotient (rounded to the nearest ten-thousandth (0.0001)), of the assessed value of all taxable property subject to the civil taxing unit's ad valorem property tax levy for the ensuing calendar year, divided by the assessed value of all taxable property that is subject to the civil taxing unit's ad valorem property tax levy for the ensuing calendar year and that is contained within the geographic area that was subject to the civil taxing unit's ad valorem property tax levy in the preceding calendar year.
STEP FOUR: Determine the greater of the amount determined in STEP THREE or one (1).
STEP FIVE: Multiply the amount determined in STEP TWO by the amount determined in STEP FOUR.
STEP SIX: Add the amount determined under STEP TWO to the amount of an excessive levy appeal granted under section 13 of this chapter for the ensuing calendar year.
STEP SEVEN: Determine the greater of STEP FIVE or STEP SIX.
(b) In the case of a county that was covered by IC 6-3.6-11-1 (before its repeal), the maximum permissible property tax levy for the civil taxing unit under STEP ONE of subsection (a) shall be increased to the extent and in the amount that revenue from a levy freeze was applied to adjust the civil taxing unit's maximum permissible property tax levy in the tax year immediately preceding the repeal of IC 6-3.6-11-1. The increase shall apply to each tax year after the repeal. Notwithstanding any other provision of law, if a county has a stabilization fund, the county may use money from that fund for operations of the county in lieu of levy increases pursuant to this subsection. A county to which this subsection applies shall adopt a plan to phase in a multi-year gradual spend down of money in its stabilization fund or other available funds over a specified number of years that allows for the gradual increase of the county's levy in combination with money from its stabilization fund.