Ind. Code ch. 20-46-8

Ind. Code ch. 20-46-8
in effect

Ind. Code § 20-46-8-0.5 Public education corporation imposes property tax levy; distribution of revenue

Sec. 0.5. (a) Subject to subsection (b), beginning with property taxes first due and payable after December 31, 2027: (1) a school city (as defined in IC 20-25-2-12) may not impose the property tax levy or otherwise exercise the powers and duties under this chapter; and (2) the public education corporation shall impose the annual property tax levy under this chapter in the territory of the school city and assumes the powers and duties of the school city under this chapter as set forth in IC 20-25.3-5. (b) Notwithstanding subsection (a), beginning with property taxes first due and payable after December 31, 2025, the county auditor shall: (1) determine the amounts of revenue to be distributed to the public education corporation, the school city, and any charter schools as provided in section 11.2 or 12 of this chapter, as applicable; and (2) distribute revenue collected from a levy imposed under this chapter to the public education corporation, the school city, and any charter schools as provided in section 11.2 or 12 of this chapter, as applicable. As added by P.L.101-2026, SEC.19.

Ind. Code § 20-46-8-1 Property tax levy components

Sec. 1. (a) A school corporation may impose an annual property tax levy for its operations fund. (b) For property taxes first due and payable in 2019, the maximum permissible property tax levy a school corporation may impose for its operations fund (IC 20-40-18) is the following: STEP ONE: Determine the sum of the following: (A) The 2018 maximum permissible transportation levy determined under IC 20-46-4 (repealed January 1, 2019). (B) The 2018 maximum permissible school bus replacement levy determined under IC 20-46-5 (repealed January 1, 2019). (C) The 2018 amount that would be raised from a capital projects fund tax rate equal to the sum of: (i) the maximum capital projects fund rate that the school corporation was authorized to impose for 2018 under IC 20-46-6 (repealed January 1, 2019), after any adjustment under IC 6-1.1-18-12 (but excluding any rate imposed for qualified utility and insurance costs); plus (ii) the capital projects fund rate imposed for qualified utility and insurance costs in 2018. (D) For school corporations described in IC 36-10-13-7, the 2018 levy as provided in section 6 of this chapter (repealed January 1, 2019) to provide funding for an art association. (E) For a school corporation in a county having a population of more than two hundred fifty thousand (250,000) and less than three hundred thousand (300,000), the 2018 levy as provided in section 7 of this chapter (repealed January 1, 2019) to provide funding for a historical society. (F) For a school corporation described in IC 36-10-14-1, the 2018 levy as provided in section 8 of this chapter (repealed January 1, 2019) to provide funding for a public playground. STEP TWO: Determine the product of: (A) The amount determined in STEP ONE, after eliminating the effects of temporary excessive levy appeals and any other temporary adjustments made to each of these levies for 2018 (regardless of whether the school corporation imposed the entire amount of that maximum permissible levy for the previous year); multiplied by (B) the maximum levy growth quotient determined under IC 6-1.1-18.5-2. STEP THREE: Determine the result of the following: (A) Determine the sum of: (i) the amount determined in STEP TWO; plus (ii) the amount granted due to an appeal to increase the levy for transportation for 2019. (B) Make the school bus replacement adjustment for 2019. (c) After 2019, the maximum permissible property tax levy a school corporation may impose for its operations fund for a particular year is the following: STEP ONE: Determine the product of: (A) the maximum permissible property tax levy for the school corporation's operations fund for the previous year, after eliminating the effects of temporary excessive levy appeals and any other temporary adjustments made to the levy for the previous year (regardless of whether the school corporation imposed the entire amount of the maximum permissible levy for the previous year); multiplied by (B) the maximum levy growth quotient determined under IC 6-1.1-18.5-2. STEP TWO: Determine the result of the following: (A) Determine the sum of: (i) the amount determined in STEP ONE; plus (ii) the amount granted due to an appeal to increase the maximum permissible operations fund levy for the year under section 3 of this chapter for transportation (before its expiration). (B) Make the school bus replacement adjustment permitted by section 3 of this chapter. As added by P.L.244-2017, SEC.106. Amended by P.L.140-2018, SEC.22; P.L.159-2020, SEC.64; P.L.104-2022, SEC.129; P.L.68-2025, SEC.223.

Ind. Code § 20-46-8-2 Property tax levies replaced

Sec. 2. A school corporation's property tax levy imposed under this chapter for its operations fund replaces the authority of the school corporation to impose property taxes under the following property tax levy provisions: (1) The school transportation fund levy (IC 20-46-4) (repealed). (2) The school bus replacement fund levy (IC 20-46-5) (repealed). (3) The capital projects fund levy (IC 20-46-6) (repealed). (4) The levy under IC 36-10-13 (before January 1, 2019) to provide funding for an art association or a historical society. (5) The levy under IC 36-10-14 (before January 1, 2019) to provide funding for a public playground. As added by P.L.244-2017, SEC.106.

Ind. Code § 20-46-8-3 Transportation levy component; levy appeal

Sec. 3. (a) This section applies to property tax levies imposed before January 1, 2026. (b) Subject to subsection (c), a school corporation may appeal to the department of local government finance under IC 6-1.1-19 to increase the school corporation's maximum permissible operations fund levy. The appeal must be filed with the department of local government finance before October 20 of the year before the increase is proposed to take effect. To be granted an increase by the department of local government finance, the school corporation must establish that the increase is necessary because of either or both of the following: (1) A cost increase of at least ten percent (10%) over the preceding year for at least one (1) of the following: (A) A fuel expense increase. (B) A cost increase due to an increase in the number of students enrolled in the school corporation who need transportation or an increase in the mileage traveled by the school corporation's buses compared with the previous year. (C) A cost increase due to an increase in the number of students enrolled in special education who need transportation or an increase in the mileage traveled by the school corporation's buses due to students enrolled in special education as compared with the previous year. (D) Increased transportation operating costs due to compliance with a court ordered desegregation plan. (E) A cost increase due to the closure of a school building within the school corporation that results in a significant increase in the distances that students must be transported to attend another school building. (F) A cost increase due to restructuring or redesigning transportation services due to a need for additional, expanded, consolidated, or modified routes. (G) A labor cost increase due to a labor shortage affecting the school corporation's ability to hire qualified transportation employees. To obtain the increase, the school corporation must establish that it will be unable to provide transportation services without an increase. (2) A cost increase associated with the school corporation's bus replacement plan adopted or amended under IC 20-40-18-9 (after December 31, 2018). To obtain the increase, the school corporation must show that the school corporation must incur reasonable and necessary expenses to acquire additional buses under the plan. The department of local government finance may grant a levy increase that is less than the increase requested by the school corporation. If the department of local government finance determines that a permanent increase in the maximum permissible levy is necessary, the increase granted under this section shall be added to the school corporation's maximum permissible operations fund levy as provided in section 1 of this chapter. (c) This subsection applies to a school corporation whose budget for the upcoming year is subject to review by a fiscal body under IC 6-1.1-17-20. A school corporation described in this subsection may not submit an appeal under this section unless the school corporation receives approval from the fiscal body to submit the appeal. (d) This section expires December 31, 2026. As added by P.L.244-2017, SEC.106. Amended by P.L.140-2018, SEC.23; P.L.159-2020, SEC.65; P.L.156-2024, SEC.29; P.L.68-2025, SEC.224.

Ind. Code § 20-46-8-4 Repealed

As added by P.L.244-2017, SEC.106. Amended by P.L.140-2018, SEC.24. Repealed by P.L.159-2020, SEC.66.

Ind. Code § 20-46-8-9 Expired

As added by P.L.76-2019, SEC.1. Amended by P.L.159-2020, SEC.67. Expired 1-1-2022 by P.L.76-2019, SEC.1.

Ind. Code § 20-46-8-10 Expired

As added by P.L.238-2019, SEC.20. Amended by P.L.159-2020, SEC.68. Expired 1-1-2022 by P.L.238-2019, SEC.20.

Ind. Code § 20-46-8-11 Applicability of chapter to certain school corporations; levy

Sec. 11. (a) This chapter does not apply to a qualified school corporation until the expiration of IC 20-45-8 under IC 20-45-8-29. (b) As used in this section, "qualified school corporation" has the meaning set forth in IC 20-45-9-2. (c) The property tax levy limits imposed by section 1 of this chapter do not apply to property taxes imposed by a qualified school corporation under IC 20-45-9. (d) For the purpose of computing the maximum permissible operations fund property tax levy imposed on a qualified school corporation by section 1 of this chapter, the qualified school corporation's maximum permissible operations fund levy for a particular year does not include that part of the levy described in subsection (c). As added by P.L.236-2023, SEC.155. Amended by P.L.214-2025, SEC.206.

Ind. Code § 20-46-8-11.2 Sharing of operations fund property tax levy with eligible charter schools; determination of property tax revenue distributions; distribution to public education corporation

Sec. 11.2. (a) This section applies only to revenue collected after June 30, 2024, and before January 1, 2028, from a tax levy imposed under this chapter by a school corporation located in: (1) Lake County; (2) Marion County; (3) St. Joseph County; or (4) Vanderburgh County. However, this section does not apply to, and distributions are not required for, a school corporation that is designated as a distressed political subdivision under IC 6-1.1-20.3. (b) For distributions made in: (1) calendar year 2025, and subject to subsection (c); and (2) calendar years 2026 and 2027, and subject to subsections (c), (h), and (i); the county auditor shall distribute to each charter school that is eligible for a distribution under subsection (d), and as provided under subsection (f), an amount of revenue received from a tax levy imposed by a school corporation under this chapter that is attributable to the territory of the school corporation that is located within the boundaries of a county listed in subsection (a). (c) The following schools are not eligible to receive a distribution under this section: (1) A virtual charter school. (2) An adult high school. (d) Not later than March 1, 2025, January 1, 2026, and January 1, 2027, the department, in consultation with the department of local government finance, shall determine the corresponding percentages of revenue received from the tax levy that are attributable to the territory of the school corporation that is located within the boundaries of a county listed in subsection (a) and must be distributed among the school corporation and each eligible charter school according to the following formula: STEP ONE: Determine each charter school that: (A) is located in the same county as the school corporation; and (B) provides not more than fifty percent (50%) virtual instruction for its students. STEP TWO: Determine, for each charter school described in STEP ONE, the number of students who: (A) have legal settlement within the school corporation; (B) are currently included in the fall ADM for the charter school; and (C) receive not more than fifty percent (50%) virtual instruction. STEP THREE: Determine the sum of: (A) the aggregate of the STEP TWO results for all applicable charter schools; plus (B) the fall ADM count for the school corporation for students receiving not more than fifty percent (50%) virtual instruction. STEP FOUR: For each charter school described in STEP ONE, determine the result of: (A) the applicable STEP TWO amount; divided by (B) the STEP THREE amount; expressed as a percentage. STEP FIVE: Determine the sum of all the amounts computed under STEP FOUR and subtract the result from one hundred percent (100%). (e) The department shall provide to the county auditor, immediately after calculation under subsection (d): (1) each charter school determined under STEP ONE of subsection (d) and the charter school's corresponding percentage calculated under STEP FOUR of subsection (d); and (2) the percentage calculated under STEP FIVE of subsection (d) for the school corporation. (f) Except as provided in subsection (j), and subject to subsection (i), the county auditor shall distribute to the school corporation and each applicable charter school the amount determined, for each settlement period described in IC 6-1.1-27-1, in the last STEP of the following STEPS: STEP ONE: For each school corporation, determine a base property tax levy amount calculated as: (A) the sum of the school corporation's operations fund property tax levies that are attributable to the territory of the school corporation that is located within the boundaries of a county listed in subsection (a) and collected under this chapter for the applicable settlement period as described in IC 6-1.1-27-1 in calendar years 2021, 2022, and 2023; divided by (B) three (3). STEP TWO: For each school corporation, determine an incremental property tax levy amount calculated as: (A) the school corporation's operations fund property tax levy collections that are attributable to the territory of the school corporation that is located within the boundaries of a county listed in subsection (a) for the applicable settlement period as described in IC 6-1.1-27-1 in the current calendar year; minus (B) the school corporation's base property tax levy collections determined for the applicable settlement period as described in IC 6-1.1-27-1 under STEP ONE. STEP THREE: For the school corporation and each applicable charter school, determine the result of: (A) the sum of: (i) the incremental amount determined under STEP TWO; plus (ii) any distribution amount withheld under subsection (i); multiplied by (B) the following percentage: (i) In the case of an applicable charter school, the charter school's percentage under STEP FOUR of subsection (d). (ii) In the case of the school corporation, the school corporation's percentage under STEP FIVE of subsection (d). (g) Before August 15, 2025, and August 15, 2026, the department shall provide to each school corporation and each eligible charter school an estimate of the amount of property tax levy revenue the school corporation and charter school are expected to receive under this section based on the most recent fall ADM count. (h) This subsection applies to distributions of property tax revenue under this section in 2026 and 2027. In order to receive a distribution under this section in 2026 and 2027, the governing body of an eligible charter school shall, before October 15, 2025, and October 15, 2026, adopt a budget for the current school year. Not later than ten (10) days before its adoption, the budget must be fixed and presented to the charter board in a public meeting in the county in which the charter school is incorporated. A budget that is adopted under this subsection must be submitted to the charter authorizer for review and to the department of local government finance to be posted publicly on the computer gateway under IC 6-1.1-17-3 not later than: (1) to receive distributions in 2026, November 1, 2025; and (2) to receive distributions in 2027, November 1, 2026. In addition to the adopted budget, the governing body of the charter school shall also submit to the charter authorizer, and to the department of local government finance to be posted publicly on the computer gateway under IC 6-1.1-17-3, the dates on which each requirement under this subsection was met and a statement from the governing body of the charter school attesting that those dates are true and accurate and that the budget was properly adopted under this subsection. (i) This subsection applies to distributions of property tax revenue under this section in 2026 and 2027. If an eligible charter school does not satisfy the requirements of subsection (h) to receive distributions under this section during a calendar year, as determined by the department of local government finance, the charter school may not receive a distribution of property tax revenue in that calendar year and the county auditor shall withhold the charter school's distribution amount. The department of local government finance's determination of compliance consists only of a confirmation that the adopted budget and attestation statement are submitted not later than the applicable date under subsection (h). Any distribution amount that must be withheld from distribution to any particular charter school under this subsection in: (1) calendar year 2026 shall be added to the incremental amount as described in STEP TWO of subsection (f) and distributed among the school corporation and remaining charter schools according to subsection (f) in calendar year 2027; and (2) calendar year 2027 shall be added to the incremental amount as described in STEP TWO of subsection (f) and distributed among the school corporation and remaining charter schools according to subsection (f) in calendar year 2027. (j) This subsection applies only to distributions of property tax revenue in 2026 and to distributions of property tax revenue in 2027 to: (1) a school city (as defined in IC 20-25-2-12); and (2) a charter school that: (A) is located in the territory of a school city (as defined in IC 20-25-2-12); and (B) would otherwise receive a share of property tax revenue from the school city under this section. Before making any distribution under subsection (f), the county auditor shall first distribute to the public education corporation for deposit in the public education corporation operations fund created under IC 20-25.3-6-1 an amount equal to the percentage determined by the Indianapolis public education corporation board under IC 20-25.3-4-2(b). As added by P.L.201-2023, SEC.214. Amended by P.L.36-2024, SEC.11; P.L.68-2025, SEC.225; P.L.101-2026, SEC.20.

Ind. Code § 20-46-8-12 Distribution to eligible charter schools; calculation; charter school budget adoption and hearing requirements; distribution to public education corporation

Sec. 12. (a) This section applies to revenue collected after December 31, 2027, from a tax levy imposed under this chapter only if the number of students who have legal settlement in a school corporation but attend a charter school, excluding virtual charter schools and adult high schools, and receive not more than fifty percent (50%) virtual instruction, is at least the greater of: (1) one hundred (100) students; or (2) two percent (2%) of the school corporation's spring ADM count, excluding students who receive more than fifty percent (50%) virtual instruction. (b) As used in this section, "eligible charter school" means a charter school attended by a student who: (1) has legal settlement in a school corporation that imposes a tax levy under this chapter; and (2) receives not more than fifty percent (50%) virtual instruction. However, the term does not include a virtual charter school or an adult high school. (c) The following schools are not eligible to receive, and may not be considered in a calculation made for purposes of, a distribution under this section: (1) A virtual charter school. (2) An adult high school. (d) Beginning in calendar year 2028, and in each calendar year thereafter, and subject to subsection (j), the county auditor shall distribute to each eligible charter school in the manner provided under this section an amount of revenue received from a tax levy imposed by a school corporation under this chapter. (e) For the purposes of the calculations made in this section, each eligible charter school that has entered into an agreement with a school corporation to participate as a participating innovation network charter school under IC 20-25.7-5 is considered to have an ADM that is separate from the school corporation. (f) Not later than January 1, 2028, and not later than January 1 of each year thereafter, the department, in consultation with the department of local government finance, shall determine, for each school corporation, the corresponding percentages of revenue received from the tax levy that must be distributed among the school corporation and each eligible charter school according to the following formula: STEP ONE: Determine, for each eligible charter school, the number of students who: (A) have legal settlement within the school corporation; (B) are currently included in the fall ADM count for the charter school; and (C) receive not more than fifty percent (50%) virtual instruction. STEP TWO: Determine the sum of: (A) the aggregate of the STEP ONE results for all eligible charter schools with respect to the school corporation; plus (B) the fall ADM count for the school corporation for students receiving not more than fifty percent (50%) virtual instruction. STEP THREE: For each eligible charter school, determine the result of: (A) the applicable STEP ONE amount; divided by (B) the STEP TWO amount; expressed as a percentage. STEP FOUR: Determine the sum of all the amounts computed under STEP THREE and subtract the result from one hundred percent (100%). (g) The department shall provide to the county auditor, immediately after calculation under subsection (f): (1) each eligible charter school and the eligible charter school's corresponding percentage calculated under STEP THREE of subsection (f); and (2) the percentage calculated under STEP FOUR of subsection (f) for the school corporation. (h) Except as provided in subsection (m), and subject to subsections (j) and (l), the county auditor shall distribute to the school corporation and each eligible charter school the amount determined in the last STEP of the following STEPS: STEP ONE: Determine the amount collected in the most recent installment period by the school corporation from the school corporation's operations fund levy imposed under this chapter. STEP TWO: To determine the distribution for the school corporation and each eligible charter school, determine the result of: (A) the sum of: (i) the STEP ONE result; plus (ii) any amount withheld in the previous year under subsection (k); multiplied by (B) the following percentage: (i) In the case of an eligible charter school, the charter school's percentage under STEP THREE of subsection (f). (ii) In the case of the school corporation, the school corporation's percentage under STEP FOUR of subsection (f). (i) Not later than August 15, 2027, and not later than August 15 of each calendar year thereafter, the department shall provide to each school corporation and each eligible charter school an estimate of the amount of property tax levy revenue the school corporation and eligible charter school are expected to receive under this section in the subsequent calendar year based on the most recent fall ADM count. (j) Beginning with distributions of property tax revenue under this section in 2028 and thereafter, in order to receive a distribution under this section, the governing body of an eligible charter school shall, not later than October 15, 2027, and not later than October 15 of each calendar year thereafter, adopt a budget for the current school year. Not later than ten (10) days before its adoption, the budget must be fixed and presented to the charter board in a public meeting in the county in which the eligible charter school is incorporated. Not later than November 1, 2027, and not later than November 1 of each calendar year thereafter, the governing body of the charter school shall submit: (1) the budget that is adopted under this subsection; (2) the dates on which each requirement under this subsection was met; and (3) a statement from the governing body of the charter school attesting that the dates provided in subdivision (2) are true and accurate and that the budget was properly adopted under this subsection; to the charter authorizer for review and to the department of local government finance to be posted publicly on the computer gateway under IC 6-1.1-17-3. (k) If an eligible charter school does not satisfy the requirements of subsection (j) to receive distributions under this section during a calendar year, as determined by the department of local government finance, the eligible charter school may not receive a distribution of property tax revenue in that calendar year and the county auditor shall withhold the eligible charter school's distribution amount. The department of local government finance's determination of compliance consists only of a confirmation that the adopted budget and attestation statement are submitted not later than the applicable date under subsection (j). Any distribution amount withheld under this subsection shall be: (1) added to the property tax revenue collections as described in STEP TWO of subsection (h); and (2) distributed among the school corporation and remaining eligible charter schools according to subsection (h); in the calendar year that immediately follows the calendar year in which the distribution amount was withheld. (l) This subsection applies only to distributions under subsection (h) in calendar years 2028, 2029, and 2030 to an eligible charter school. Except as provided in subsection (m), instead of the amount determined under subsection (h) for a distribution to a particular eligible charter school from the revenue collected from the tax levy imposed under this chapter by a particular school corporation, the county auditor shall make distributions according to the following: (1) For a distribution in 2028, the county auditor shall distribute an amount for a particular eligible charter school equal to: (A) the applicable result of STEP TWO of subsection (h) for the eligible charter school; multiplied by (B) twenty-five hundredths (0.25). (2) For a distribution in 2029, the county auditor shall distribute an amount for a particular eligible charter school equal to: (A) the applicable result of STEP TWO of subsection (h) for the eligible charter school; multiplied by (B) five-tenths (0.5). (3) For a distribution in 2030, the county auditor shall distribute an amount for a particular eligible charter school equal to: (A) the applicable result of STEP TWO of subsection (h) for the eligible charter school; multiplied by (B) seventy-five hundredths (0.75). Any amount of property tax revenue collected from the tax levy imposed under this chapter by a particular school corporation that remains after making the distributions according to this subsection shall be distributed to the school corporation and are in addition to the amount distributed to the school corporation under subsection (h) for the applicable year. This subsection expires July 1, 2032. (m) This subsection applies only to distributions of revenue to: (1) a school city (as defined in IC 20-25-2-12); and (2) a charter school that: (A) is located in the territory of a school city (as defined in IC 20-25-2-12); and (B) would otherwise receive a share of property tax revenue from the school city under this section. Before making any distribution under subsection (h) or (l), the county auditor shall first distribute to the public education corporation for deposit in the public education corporation operations fund created under IC 20-25.3-6-1 an amount equal to the percentage determined by the Indianapolis public corporation board under IC 20-25.3-4-2(b). As added by P.L.68-2025, SEC.226. Amended by P.L.101-2026, SEC.21.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/20Fetched: 10/17/2026

Starting a business in Indiana? Indiana LLC guide: costs and requirements