*HB1376.2*
Reprinted
February 1, 2024
HOUSE BILL No. 1376
_____
DIGEST OF HB 1376 (Updated January 31, 2024 11:56 am - DI 144)
Citations Affected: IC 3-10; IC 6-1.1.
Synopsis: School controlled project referendum. Provides that a local
public question authorizing a school corporation to impose property
taxes to pay debt service on bonds or lease rentals on a lease for a
specified controlled project may be placed on the ballot only at a
general election or municipal general election.
Effective: July 1, 2024.
Behning, Teshka, McGuire
January 10, 2024, read first time and referred to Committee on Elections and
Apportionment.
January 18, 2024, reported — Do Pass.
January 22, 2024, read second time, ordered engrossed. Engrossed.
January 29, 2024, returned to second reading.
January 31, 2024, re-read second time, amended, ordered engrossed.
HB 1376—LS 6949/DI 144 Reprinted
February 1, 2024
Second Regular Session of the 123rd General Assembly (2024)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2023 Regular Session of the General Assembly.
HOUSE BILL No. 1376
A BILL FOR AN ACT to amend the Indiana Code concerning
elections.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 3-10-9-3, AS AMENDED BY P.L.225-2011,
2 SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2024]: Sec. 3. (a) Except as provided in subsection (b), if a
4 local public question must be certified to an election board by law, that
5 certification must occur no later than noon:
6 (1) seventy-four (74) days before a primary election if the public
7 question is to be placed on the primary or municipal primary
8 election ballot; or
9 (2) August 1 if the public question is to be placed on the general
10 or municipal election ballot.
11 (b) A local public question described in IC 6-1.1-20-3.6(f) may
12 be placed on the ballot only at the following elections:
13 (1) A general election.
14 (2) A municipal general election, but only if the election
15 district for the public question is contained entirely within a
16 municipality.
17 Certification of a local public question under this subsection must
HB 1376—LS 6949/DI 144 2
1 occur not later than noon August 1.
2 SECTION 2. IC 6-1.1-20-3.6, AS AMENDED BY P.L.239-2023,
3 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4 JULY 1, 2024]: Sec. 3.6. (a) Except as provided in sections 3.7 and 3.8
5 of this chapter, this section applies only to a controlled project
6 described in section 3.5(a) of this chapter.
7 (b) In the case of a controlled project:
8 (1) described in section 3.5(a)(1)(A) through 3.5(a)(1)(C) of this
9 chapter, if a sufficient petition requesting the application of the
10 local public question process has been filed as set forth in section
11 3.5 of this chapter; or
12 (2) described in section 3.5(a)(1)(D) of this chapter (before its
13 expiration);
14 a political subdivision may not impose property taxes to pay debt
15 service on bonds or lease rentals on a lease for a controlled project
16 unless the political subdivision's proposed debt service or lease rental
17 is approved in an election on a local public question held under this
18 section.
19 (c) Except as provided in subsection (k), (l), the following question
20 shall be submitted to the eligible voters at the election conducted under
21 this section:
22 "Shall ________ (insert the name of the political subdivision)
23 increase property taxes paid to the _______ (insert the type of
24 taxing unit) by homeowners and businesses? If this public
25 question is approved by the voters, the average property tax paid
26 to the _______ (insert the type of taxing unit) per year on a
27 residence would increase by ______% (insert the estimated
28 average percentage of property tax increase paid to the political
29 subdivision on a residence within the political subdivision as
30 determined under subsection (n)) (o)) and the average property
31 tax paid to the _____ (insert the type of taxing unit) per year on
32 a business property would increase by ______% (insert the
33 estimated average percentage of property tax increase paid to the
34 political subdivision on a business property within the political
35 subdivision as determined under subsection (o)). (p)). The
36 political subdivision may issue bonds or enter into a lease to
37 ________ (insert a brief description of the controlled project),
38 which is estimated to cost _______ (insert the total cost of the
39 project) over ______ (insert number of years to bond maturity or
40 termination of lease) years. The most recent property tax
41 referendum within the boundaries of the political subdivision for
42 which this public question is being considered was proposed by
HB 1376—LS 6949/DI 144 3
1 ________ (insert name of political subdivision) in ______ (insert
2 year of most recent property tax referendum) and ________
3 (insert whether the measure passed or failed).".
4 The public question must appear on the ballot in the form approved by
5 the county election board. If the political subdivision proposing to issue
6 bonds or enter into a lease is located in more than one (1) county, the
7 county election board of each county shall jointly approve the form of
8 the public question that will appear on the ballot in each county. The
9 form approved by the county election board may differ from the
10 language certified to the county election board by the county auditor.
11 If the county election board approves the language of a public question
12 under this subsection, the county election board shall submit the
13 language and the certification of the county auditor described in
14 subsection (p) (q) to the department of local government finance for
15 review.
16 (d) The department of local government finance shall review the
17 language of the public question to evaluate whether the description of
18 the controlled project is accurate and is not biased against either a vote
19 in favor of the controlled project or a vote against the controlled
20 project. The department of local government finance shall post the
21 estimated average percentage of property tax increases to be paid to a
22 political subdivision on a residence and business property that are
23 certified by the county auditor under subsection (p) (q) on the
24 department's Internet web site. website. The department of local
25 government finance may either approve the ballot language as
26 submitted or recommend that the ballot language be modified as
27 necessary to ensure that the description of the controlled project is
28 accurate and is not biased. The department of local government finance
29 shall certify its approval or recommendations to the county auditor and
30 the county election board not more than ten (10) days after the
31 language of the public question is submitted to the department for
32 review. If the department of local government finance recommends a
33 modification to the ballot language, the county election board shall,
34 after reviewing the recommendations of the department of local
35 government finance, submit modified ballot language to the department
36 for the department's approval or recommendation of any additional
37 modifications. The public question may not be certified by the county
38 auditor under subsection (e) or (f) unless the department of local
39 government finance has first certified the department's final approval
40 of the ballot language for the public question.
41 (e) This subsection does not apply to a local public question
42 described in subsection (f). The county auditor shall certify the finally
HB 1376—LS 6949/DI 144 4
1 approved public question under IC 3-10-9-3 IC 3-10-9-3(a) to the
2 county election board of each county in which the political subdivision
3 is located. The certification must occur not later than noon:
4 (1) seventy-four (74) days before a primary election if the public
5 question is to be placed on the primary or municipal primary
6 election ballot; or
7 (2) August 1 if the public question is to be placed on the general
8 or municipal election ballot.
9 Subject to the certification requirements and deadlines under this
10 subsection and except as provided in subsection (j), (k), the public
11 question shall be placed on the ballot at the next primary election,
12 general election or municipal election in which all voters of the
13 political subdivision are entitled to vote. However, if a primary
14 election, general election, or municipal election will not be held during
15 the first year in which the public question is eligible to be placed on the
16 ballot under this section and if the political subdivision requests the
17 public question to be placed on the ballot at a special election, the
18 public question shall be placed on the ballot at a special election to be
19 held on the first Tuesday after the first Monday in May or November
20 of the year. The certification must occur not later than noon
21 seventy-four (74) days before a special election to be held in May (if
22 the special election is to be held in May) or noon on August 1 (if the
23 special election is to be held in November). The fiscal body of the
24 political subdivision that requests the special election shall pay the
25 costs of holding the special election. The county election board shall
26 give notice under IC 5-3-1 of a special election conducted under this
27 subsection. A special election conducted under this subsection is under
28 the direction of the county election board. The county election board
29 shall take all steps necessary to carry out the special election.
30 (f) This subsection applies to a local public question authorizing
31 a school corporation to impose property taxes to pay debt service
32 on bonds or lease rentals on a lease for a controlled project
33 described in section 3.5(a) of this chapter. The county auditor shall
34 certify the finally approved public question under IC 3-10-9-3(b)
35 to the county election board of each county in which the political
36 subdivision is located. The certification must occur not later than
37 noon August 1. Subject to the certification requirements and
38 deadlines under this subsection and except as provided in
39 subsection (k), the public question shall be placed on the ballot at
40 the next election permitted under IC 3-10-9-3(b).
41 (g) The circuit court clerk shall certify the results of the public
42 question to the following:
HB 1376—LS 6949/DI 144 5
1 (1) The county auditor of each county in which the political
2 subdivision is located.
3 (2) The department of local government finance.
4 (g) (h) Subject to the requirements of IC 6-1.1-18.5-8, the political
5 subdivision may issue the proposed bonds or enter into the proposed
6 lease rental if a majority of the eligible voters voting on the public
7 question vote in favor of the public question.
8 (h) (i) If a majority of the eligible voters voting on the public
9 question vote in opposition to the public question, both of the following
10 apply:
11 (1) The political subdivision may not issue the proposed bonds or
12 enter into the proposed lease rental.
13 (2) Another public question under this section on the same or a
14 substantially similar project may not be submitted to the voters
15 earlier than:
16 (A) except as provided in clause (B), seven hundred (700)
17 days after the date of the public question; or
18 (B) three hundred fifty (350) days after the date of the election,
19 if a petition that meets the requirements of subsection (m) (n)
20 is submitted to the county auditor.
21 (i) (j) IC 3, to the extent not inconsistent with this section, applies
22 to an election held under this section.
23 (j) (k) A political subdivision may not divide a controlled project in
24 order to avoid the requirements of this section and section 3.5 of this
25 chapter. A person that owns property within a political subdivision or
26 a person that is a registered voter residing within a political subdivision
27 may file a petition with the department of local government finance
28 objecting that the political subdivision has divided a controlled project
29 into two (2) or more capital projects in order to avoid the requirements
30 of this section and section 3.5 of this chapter. The petition must be filed
31 not more than ten (10) days after the political subdivision gives notice
32 of the political subdivision's decision under section 3.5 of this chapter
33 or a determination under section 5 of this chapter to issue bonds or
34 enter into leases for a capital project that the person believes is the
35 result of a division of a controlled project that is prohibited by this
36 subsection. If the department of local government finance receives a
37 petition under this subsection, the department shall not later than thirty
38 (30) days after receiving the petition make a final determination on the
39 issue of whether the political subdivision divided a controlled project
40 in order to avoid the requirements of this section and section 3.5 of this
41 chapter. If the department of local government finance determines that
42 a political subdivision divided a controlled project in order to avoid the
HB 1376—LS 6949/DI 144 6
1 requirements of this section and section 3.5 of this chapter and the
2 political subdivision continues to desire to proceed with the project, the
3 political subdivision may appeal the determination of the department
4 of local government finance to the Indiana board of tax review. A
5 political subdivision shall be considered to have divided a capital
6 project in order to avoid the requirements of this section and section
7 3.5 of this chapter if the result of one (1) or more of the subprojects
8 cannot reasonably be considered an independently desirable end in
9 itself without reference to another capital project. This subsection does
10 not prohibit a political subdivision from undertaking a series of capital
11 projects in which the result of each capital project can reasonably be
12 considered an independently desirable end in itself without reference
13 to another capital project.
14 (k) (l) This subsection applies to a political subdivision for which a
15 petition requesting a public question has been submitted under section
16 3.5 of this chapter. The legislative body (as defined in IC 36-1-2-9) of
17 the political subdivision may adopt a resolution to withdraw a
18 controlled project from consideration in a public question. If the
19 legislative body provides a certified copy of the resolution to the county
20 auditor and the county election board not later than sixty-three (63)
21 days before the election at which the public question would be on the
22 ballot, the public question on the controlled project shall not be placed
23 on the ballot and the public question on the controlled project shall not
24 be held, regardless of whether the county auditor has certified the
25 public question to the county election board. If the withdrawal of a
26 public question under this subsection requires the county election
27 board to reprint ballots, the political subdivision withdrawing the
28 public question shall pay the costs of reprinting the ballots. If a political
29 subdivision withdraws a public question under this subsection that
30 would have been held at a special election and the county election
31 board has printed the ballots before the legislative body of the political
32 subdivision provides a certified copy of the withdrawal resolution to
33 the county auditor and the county election board, the political
34 subdivision withdrawing the public question shall pay the costs
35 incurred by the county in printing the ballots. If a public question on a
36 controlled project is withdrawn under this subsection, a public question
37 under this section on the same controlled project or a substantially
38 similar controlled project may not be submitted to the voters earlier
39 than three hundred fifty (350) days after the date the resolution
40 withdrawing the public question is adopted.
41 (l) (m) If a public question regarding a controlled project is placed
42 on the ballot to be voted on at an election under this section, the
HB 1376—LS 6949/DI 144 7
1 political subdivision shall submit to the department of local
2 government finance, at least thirty (30) days before the election, the
3 following information regarding the proposed controlled project for
4 posting on the department's Internet web site: website:
5 (1) The cost per square foot of any buildings being constructed as
6 part of the controlled project.
7 (2) The effect that approval of the controlled project would have
8 on the political subdivision's property tax rate.
9 (3) The maximum term of the bonds or lease.
10 (4) The maximum principal amount of the bonds or the maximum
11 lease rental for the lease.
12 (5) The estimated interest rates that will be paid and the total
13 interest costs associated with the bonds or lease.
14 (6) The purpose of the bonds or lease.
15 (7) In the case of a controlled project proposed by a school
16 corporation:
17 (A) the current and proposed square footage of school building
18 space per student;
19 (B) enrollment patterns within the school corporation; and
20 (C) the age and condition of the current school facilities.
21 (m) (n) If a majority of the eligible voters voting on the public
22 question vote in opposition to the public question, a petition may be
23 submitted to the county auditor to request that the limit under
24 subsection (h)(2)(B) (i)(2)(B) apply to the holding of a subsequent
25 public question by the political subdivision. If such a petition is
26 submitted to the county auditor and is signed by the lesser of:
27 (1) five hundred (500) persons who are either owners of property
28 within the political subdivision or registered voters residing
29 within the political subdivision; or
30 (2) five percent (5%) of the registered voters residing within the
31 political subdivision;
32 the limit under subsection (h)(2)(B) (i)(2)(B) applies to the holding of
33 a second public question by the political subdivision and the limit
34 under subsection (h)(2)(A) (i)(2)(A) does not apply to the holding of
35 a second public question by the political subdivision.
36 (n) (o) At the request of a political subdivision that proposes to
37 impose property taxes to pay debt service on bonds or lease rentals on
38 a lease for a controlled project, the county auditor of a county in which
39 the political subdivision is located shall determine the estimated
40 average percentage of property tax increase on a homestead to be paid
41 to the political subdivision that must be included in the public question
42 under subsection (c) as follows:
HB 1376—LS 6949/DI 144 8
1 STEP ONE: Determine the average assessed value of a homestead
2 located within the political subdivision.
3 STEP TWO: For purposes of determining the net assessed value
4 of the average homestead located within the political subdivision,
5 subtract:
6 (A) an amount for the homestead standard deduction under
7 IC 6-1.1-12-37 as if the homestead described in STEP ONE
8 was eligible for the deduction; and
9 (B) an amount for the supplemental homestead deduction
10 under IC 6-1.1-12-37.5 as if the homestead described in STEP
11 ONE was eligible for the deduction;
12 from the result of STEP ONE.
13 STEP THREE: Divide the result of STEP TWO by one hundred
14 (100).
15 STEP FOUR: Determine the overall average tax rate per one
16 hundred dollars ($100) of assessed valuation for the current year
17 imposed on property located within the political subdivision.
18 STEP FIVE: For purposes of determining net property tax liability
19 of the average homestead located within the political subdivision:
20 (A) multiply the result of STEP THREE by the result of STEP
21 FOUR; and
22 (B) as appropriate, apply any currently applicable county
23 property tax credit rates and the credit for excessive property
24 taxes under IC 6-1.1-20.6-7.5(a)(1).
25 STEP SIX: Determine the amount of the political subdivision's
26 part of the result determined in STEP FIVE.
27 STEP SEVEN: Determine the estimated tax rate that will be
28 imposed if the public question is approved by the voters.
29 STEP EIGHT: Multiply the result of STEP SEVEN by the result
30 of STEP THREE.
31 STEP NINE: Divide the result of STEP EIGHT by the result of
32 STEP SIX, expressed as a percentage.
33 (o) (p) At the request of a political subdivision that proposes to
34 impose property taxes to pay debt service on bonds or lease rentals on
35 a lease for a controlled project, the county auditor of a county in which
36 the political subdivision is located shall determine the estimated
37 average percentage of property tax increase on a business property to
38 be paid to the political subdivision that must be included in the public
39 question under subsection (c) as follows:
40 STEP ONE: Determine the average assessed value of business
41 property located within the political subdivision.
42 STEP TWO: Divide the result of STEP ONE by one hundred
HB 1376—LS 6949/DI 144 9
1 (100).
2 STEP THREE: Determine the overall average tax rate per one
3 hundred dollars ($100) of assessed valuation for the current year
4 imposed on property located within the political subdivision.
5 STEP FOUR: For purposes of determining net property tax
6 liability of the average business property located within the
7 political subdivision:
8 (A) multiply the result of STEP TWO by the result of STEP
9 THREE; and
10 (B) as appropriate, apply any currently applicable county
11 property tax credit rates and the credit for excessive property
12 taxes under IC 6-1.1-20.6-7.5 as if the applicable percentage
13 was three percent (3%).
14 STEP FIVE: Determine the amount of the political subdivision's
15 part of the result determined in STEP FOUR.
16 STEP SIX: Determine the estimated tax rate that will be imposed
17 if the public question is approved by the voters.
18 STEP SEVEN: Multiply the result of STEP TWO by the result of
19 STEP SIX.
20 STEP EIGHT: Divide the result of STEP SEVEN by the result of
21 STEP FIVE, expressed as a percentage.
22 (p) (q) The county auditor shall certify the estimated average
23 percentage of property tax increase on a homestead to be paid to the
24 political subdivision determined under subsection (n), (o), and the
25 estimated average percentage of property tax increase on a business
26 property to be paid to the political subdivision determined under
27 subsection (o), (p), in a manner prescribed by the department of local
28 government finance, and provide the certification to the political
29 subdivision that proposes to impose property taxes. The political
30 subdivision shall provide the certification to the county election board
31 and include the estimated average percentages in the language of the
32 public question at the time the language of the public question is
33 submitted to the county election board for approval as described in
34 subsection (c).
HB 1376—LS 6949/DI 144 10
COMMITTEE REPORT
Mr. Speaker: Your Committee on Elections and Apportionment, to
which was referred House Bill 1376, has had the same under
consideration and begs leave to report the same back to the House with
the recommendation that said bill do pass.
(Reference is to HB 1376 as introduced.)
WESCO
Committee Vote: Yeas 8, Nays 5
_____
HOUSE MOTION
Mr. Speaker: I move that House Bill 1376 be returned to the second
reading calendar forthwith for the purpose of amendment.
BEHNING
_____
HOUSE MOTION
Mr. Speaker: I move that House Bill 1376 be amended to read as
follows:
Page 1, line 11, delete "referendum or local public question under
IC 20" and insert "local public question described in
IC 6-1.1-20-3.6(f)".
Page 2, delete lines 2 through 42, begin a new paragraph and insert:
"SECTION 2. IC 6-1.1-20-3.6, AS AMENDED BY P.L.239-2023,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 3.6. (a) Except as provided in sections 3.7 and 3.8
of this chapter, this section applies only to a controlled project
described in section 3.5(a) of this chapter.
(b) In the case of a controlled project:
(1) described in section 3.5(a)(1)(A) through 3.5(a)(1)(C) of this
chapter, if a sufficient petition requesting the application of the
local public question process has been filed as set forth in section
3.5 of this chapter; or
(2) described in section 3.5(a)(1)(D) of this chapter (before its
expiration);
a political subdivision may not impose property taxes to pay debt
service on bonds or lease rentals on a lease for a controlled project
HB 1376—LS 6949/DI 144 11
unless the political subdivision's proposed debt service or lease rental
is approved in an election on a local public question held under this
section.
(c) Except as provided in subsection (k), (l), the following question
shall be submitted to the eligible voters at the election conducted under
this section:
"Shall ________ (insert the name of the political subdivision)
increase property taxes paid to the _______ (insert the type of
taxing unit) by homeowners and businesses? If this public
question is approved by the voters, the average property tax paid
to the _______ (insert the type of taxing unit) per year on a
residence would increase by ______% (insert the estimated
average percentage of property tax increase paid to the political
subdivision on a residence within the political subdivision as
determined under subsection (n)) (o)) and the average property
tax paid to the _____ (insert the type of taxing unit) per year on
a business property would increase by ______% (insert the
estimated average percentage of property tax increase paid to the
political subdivision on a business property within the political
subdivision as determined under subsection (o)). (p)). The
political subdivision may issue bonds or enter into a lease to
________ (insert a brief description of the controlled project),
which is estimated to cost _______ (insert the total cost of the
project) over ______ (insert number of years to bond maturity or
termination of lease) years. The most recent property tax
referendum within the boundaries of the political subdivision for
which this public question is being considered was proposed by
________ (insert name of political subdivision) in ______ (insert
year of most recent property tax referendum) and ________
(insert whether the measure passed or failed).".
The public question must appear on the ballot in the form approved by
the county election board. If the political subdivision proposing to issue
bonds or enter into a lease is located in more than one (1) county, the
county election board of each county shall jointly approve the form of
the public question that will appear on the ballot in each county. The
form approved by the county election board may differ from the
language certified to the county election board by the county auditor.
If the county election board approves the language of a public question
under this subsection, the county election board shall submit the
language and the certification of the county auditor described in
subsection (p) (q) to the department of local government finance for
review.
HB 1376—LS 6949/DI 144 12
(d) The department of local government finance shall review the
language of the public question to evaluate whether the description of
the controlled project is accurate and is not biased against either a vote
in favor of the controlled project or a vote against the controlled
project. The department of local government finance shall post the
estimated average percentage of property tax increases to be paid to a
political subdivision on a residence and business property that are
certified by the county auditor under subsection (p) (q) on the
department's Internet web site. website. The department of local
government finance may either approve the ballot language as
submitted or recommend that the ballot language be modified as
necessary to ensure that the description of the controlled project is
accurate and is not biased. The department of local government finance
shall certify its approval or recommendations to the county auditor and
the county election board not more than ten (10) days after the
language of the public question is submitted to the department for
review. If the department of local government finance recommends a
modification to the ballot language, the county election board shall,
after reviewing the recommendations of the department of local
government finance, submit modified ballot language to the department
for the department's approval or recommendation of any additional
modifications. The public question may not be certified by the county
auditor under subsection (e) or (f) unless the department of local
government finance has first certified the department's final approval
of the ballot language for the public question.
(e) This subsection does not apply to a local public question
described in subsection (f). The county auditor shall certify the finally
approved public question under IC 3-10-9-3 IC 3-10-9-3(a) to the
county election board of each county in which the political subdivision
is located. The certification must occur not later than noon:
(1) seventy-four (74) days before a primary election if the public
question is to be placed on the primary or municipal primary
election ballot; or
(2) August 1 if the public question is to be placed on the general
or municipal election ballot.
Subject to the certification requirements and deadlines under this
subsection and except as provided in subsection (j), (k), the public
question shall be placed on the ballot at the next primary election,
general election or municipal election in which all voters of the
political subdivision are entitled to vote. However, if a primary
election, general election, or municipal election will not be held during
the first year in which the public question is eligible to be placed on the
HB 1376—LS 6949/DI 144 13
ballot under this section and if the political subdivision requests the
public question to be placed on the ballot at a special election, the
public question shall be placed on the ballot at a special election to be
held on the first Tuesday after the first Monday in May or November
of the year. The certification must occur not later than noon
seventy-four (74) days before a special election to be held in May (if
the special election is to be held in May) or noon on August 1 (if the
special election is to be held in November). The fiscal body of the
political subdivision that requests the special election shall pay the
costs of holding the special election. The county election board shall
give notice under IC 5-3-1 of a special election conducted under this
subsection. A special election conducted under this subsection is under
the direction of the county election board. The county election board
shall take all steps necessary to carry out the special election.
(f) This subsection applies to a local public question authorizing
a school corporation to impose property taxes to pay debt service
on bonds or lease rentals on a lease for a controlled project
described in section 3.5(a) of this chapter. The county auditor shall
certify the finally approved public question under IC 3-10-9-3(b)
to the county election board of each county in which the political
subdivision is located. The certification must occur not later than
noon August 1. Subject to the certification requirements and
deadlines under this subsection and except as provided in
subsection (k), the public question shall be placed on the ballot at
the next election permitted under IC 3-10-9-3(b).
(g) The circuit court clerk shall certify the results of the public
question to the following:
(1) The county auditor of each county in which the political
subdivision is located.
(2) The department of local government finance.
(g) (h) Subject to the requirements of IC 6-1.1-18.5-8, the political
subdivision may issue the proposed bonds or enter into the proposed
lease rental if a majority of the eligible voters voting on the public
question vote in favor of the public question.
(h) (i) If a majority of the eligible voters voting on the public
question vote in opposition to the public question, both of the following
apply:
(1) The political subdivision may not issue the proposed bonds or
enter into the proposed lease rental.
(2) Another public question under this section on the same or a
substantially similar project may not be submitted to the voters
earlier than:
HB 1376—LS 6949/DI 144 14
(A) except as provided in clause (B), seven hundred (700)
days after the date of the public question; or
(B) three hundred fifty (350) days after the date of the election,
if a petition that meets the requirements of subsection (m) (n)
is submitted to the county auditor.
(i) (j) IC 3, to the extent not inconsistent with this section, applies
to an election held under this section.
(j) (k) A political subdivision may not divide a controlled project in
order to avoid the requirements of this section and section 3.5 of this
chapter. A person that owns property within a political subdivision or
a person that is a registered voter residing within a political subdivision
may file a petition with the department of local government finance
objecting that the political subdivision has divided a controlled project
into two (2) or more capital projects in order to avoid the requirements
of this section and section 3.5 of this chapter. The petition must be filed
not more than ten (10) days after the political subdivision gives notice
of the political subdivision's decision under section 3.5 of this chapter
or a determination under section 5 of this chapter to issue bonds or
enter into leases for a capital project that the person believes is the
result of a division of a controlled project that is prohibited by this
subsection. If the department of local government finance receives a
petition under this subsection, the department shall not later than thirty
(30) days after receiving the petition make a final determination on the
issue of whether the political subdivision divided a controlled project
in order to avoid the requirements of this section and section 3.5 of this
chapter. If the department of local government finance determines that
a political subdivision divided a controlled project in order to avoid the
requirements of this section and section 3.5 of this chapter and the
political subdivision continues to desire to proceed with the project, the
political subdivision may appeal the determination of the department
of local government finance to the Indiana board of tax review. A
political subdivision shall be considered to have divided a capital
project in order to avoid the requirements of this section and section
3.5 of this chapter if the result of one (1) or more of the subprojects
cannot reasonably be considered an independently desirable end in
itself without reference to another capital project. This subsection does
not prohibit a political subdivision from undertaking a series of capital
projects in which the result of each capital project can reasonably be
considered an independently desirable end in itself without reference
to another capital project.
(k) (l) This subsection applies to a political subdivision for which a
petition requesting a public question has been submitted under section
HB 1376—LS 6949/DI 144 15
3.5 of this chapter. The legislative body (as defined in IC 36-1-2-9) of
the political subdivision may adopt a resolution to withdraw a
controlled project from consideration in a public question. If the
legislative body provides a certified copy of the resolution to the county
auditor and the county election board not later than sixty-three (63)
days before the election at which the public question would be on the
ballot, the public question on the controlled project shall not be placed
on the ballot and the public question on the controlled project shall not
be held, regardless of whether the county auditor has certified the
public question to the county election board. If the withdrawal of a
public question under this subsection requires the county election
board to reprint ballots, the political subdivision withdrawing the
public question shall pay the costs of reprinting the ballots. If a political
subdivision withdraws a public question under this subsection that
would have been held at a special election and the county election
board has printed the ballots before the legislative body of the political
subdivision provides a certified copy of the withdrawal resolution to
the county auditor and the county election board, the political
subdivision withdrawing the public question shall pay the costs
incurred by the county in printing the ballots. If a public question on a
controlled project is withdrawn under this subsection, a public question
under this section on the same controlled project or a substantially
similar controlled project may not be submitted to the voters earlier
than three hundred fifty (350) days after the date the resolution
withdrawing the public question is adopted.
(l) (m) If a public question regarding a controlled project is placed
on the ballot to be voted on at an election under this section, the
political subdivision shall submit to the department of local
government finance, at least thirty (30) days before the election, the
following information regarding the proposed controlled project for
posting on the department's Internet web site: website:
(1) The cost per square foot of any buildings being constructed as
part of the controlled project.
(2) The effect that approval of the controlled project would have
on the political subdivision's property tax rate.
(3) The maximum term of the bonds or lease.
(4) The maximum principal amount of the bonds or the maximum
lease rental for the lease.
(5) The estimated interest rates that will be paid and the total
interest costs associated with the bonds or lease.
(6) The purpose of the bonds or lease.
(7) In the case of a controlled project proposed by a school
HB 1376—LS 6949/DI 144 16
corporation:
(A) the current and proposed square footage of school building
space per student;
(B) enrollment patterns within the school corporation; and
(C) the age and condition of the current school facilities.
(m) (n) If a majority of the eligible voters voting on the public
question vote in opposition to the public question, a petition may be
submitted to the county auditor to request that the limit under
subsection (h)(2)(B) (i)(2)(B) apply to the holding of a subsequent
public question by the political subdivision. If such a petition is
submitted to the county auditor and is signed by the lesser of:
(1) five hundred (500) persons who are either owners of property
within the political subdivision or registered voters residing
within the political subdivision; or
(2) five percent (5%) of the registered voters residing within the
political subdivision;
the limit under subsection (h)(2)(B) (i)(2)(B) applies to the holding of
a second public question by the political subdivision and the limit
under subsection (h)(2)(A) (i)(2)(A) does not apply to the holding of
a second public question by the political subdivision.
(n) (o) At the request of a political subdivision that proposes to
impose property taxes to pay debt service on bonds or lease rentals on
a lease for a controlled project, the county auditor of a county in which
the political subdivision is located shall determine the estimated
average percentage of property tax increase on a homestead to be paid
to the political subdivision that must be included in the public question
under subsection (c) as follows:
STEP ONE: Determine the average assessed value of a homestead
located within the political subdivision.
STEP TWO: For purposes of determining the net assessed value
of the average homestead located within the political subdivision,
subtract:
(A) an amount for the homestead standard deduction under
IC 6-1.1-12-37 as if the homestead described in STEP ONE
was eligible for the deduction; and
(B) an amount for the supplemental homestead deduction
under IC 6-1.1-12-37.5 as if the homestead described in STEP
ONE was eligible for the deduction;
from the result of STEP ONE.
STEP THREE: Divide the result of STEP TWO by one hundred
(100).
STEP FOUR: Determine the overall average tax rate per one
HB 1376—LS 6949/DI 144 17
hundred dollars ($100) of assessed valuation for the current year
imposed on property located within the political subdivision.
STEP FIVE: For purposes of determining net property tax liability
of the average homestead located within the political subdivision:
(A) multiply the result of STEP THREE by the result of STEP
FOUR; and
(B) as appropriate, apply any currently applicable county
property tax credit rates and the credit for excessive property
taxes under IC 6-1.1-20.6-7.5(a)(1).
STEP SIX: Determine the amount of the political subdivision's
part of the result determined in STEP FIVE.
STEP SEVEN: Determine the estimated tax rate that will be
imposed if the public question is approved by the voters.
STEP EIGHT: Multiply the result of STEP SEVEN by the result
of STEP THREE.
STEP NINE: Divide the result of STEP EIGHT by the result of
STEP SIX, expressed as a percentage.
(o) (p) At the request of a political subdivision that proposes to
impose property taxes to pay debt service on bonds or lease rentals on
a lease for a controlled project, the county auditor of a county in which
the political subdivision is located shall determine the estimated
average percentage of property tax increase on a business property to
be paid to the political subdivision that must be included in the public
question under subsection (c) as follows:
STEP ONE: Determine the average assessed value of business
property located within the political subdivision.
STEP TWO: Divide the result of STEP ONE by one hundred
(100).
STEP THREE: Determine the overall average tax rate per one
hundred dollars ($100) of assessed valuation for the current year
imposed on property located within the political subdivision.
STEP FOUR: For purposes of determining net property tax
liability of the average business property located within the
political subdivision:
(A) multiply the result of STEP TWO by the result of STEP
THREE; and
(B) as appropriate, apply any currently applicable county
property tax credit rates and the credit for excessive property
taxes under IC 6-1.1-20.6-7.5 as if the applicable percentage
was three percent (3%).
STEP FIVE: Determine the amount of the political subdivision's
part of the result determined in STEP FOUR.
HB 1376—LS 6949/DI 144 18
STEP SIX: Determine the estimated tax rate that will be imposed
if the public question is approved by the voters.
STEP SEVEN: Multiply the result of STEP TWO by the result of
STEP SIX.
STEP EIGHT: Divide the result of STEP SEVEN by the result of
STEP FIVE, expressed as a percentage.
(p) (q) The county auditor shall certify the estimated average
percentage of property tax increase on a homestead to be paid to the
political subdivision determined under subsection (n), (o), and the
estimated average percentage of property tax increase on a business
property to be paid to the political subdivision determined under
subsection (o), (p), in a manner prescribed by the department of local
government finance, and provide the certification to the political
subdivision that proposes to impose property taxes. The political
subdivision shall provide the certification to the county election board
and include the estimated average percentages in the language of the
public question at the time the language of the public question is
submitted to the county election board for approval as described in
subsection (c).".
Delete pages 3 through 16.
Renumber all SECTIONS consecutively.
(Reference is to HB 1376 as printed January 18, 2024.)
BEHNING
HB 1376—LS 6949/DI 144