962 N.E.2d 705
Ind. T.C.
2011
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Background

  • School District appeals the DLGF’s final determination recalculating its CPF levy rate for 2011.
  • District submitted 2011 budget and CPF rate estimate; DLGF reduced the rate under IC 6-1.1-18-12.
  • DLGF denied protest and certified budget order final; case filed March 9, 2011, with argument in Oct. 2011.
  • Statutory framework caps CPF rate and uses a six-step formula; steps two and four use actual percentage increases.
  • DeKalb holding required zeros (not negatives) in steps two and four; the issue is whether DLGF properly applied the formula for 2011.
  • Court enhances scope to retroactively correct prior-year calculations to ensure accuracy of the 2011 rate; remand for recalculation of 2007–2010 using zeros.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Proper application of steps two and four using zeros. DeKalb requires zeros; retroactive correction warranted. Only 2011 protest; no jurisdiction to amend prior years’ calculations. Yes; use zeros; remand for 2007–2010 recalculation.
Authority to provide retroactive relief for unprotested years. Relief needed to ensure accurate 2011 rate. Subject-matter jurisdiction lacking for unprotested years. Court retains jurisdiction; allows corrections to ensure 2011 rate accuracy.

Key Cases Cited

  • DeKalb Cnty. E. Cmty. Sch. Dist. v. Dep’t of Local Gov’t Fin., 930 N.E.2d 1257 (Ind.Tax Ct.2010) (holding zeros must be used in steps two and four)
  • Johnson Cnty. Farm Bureau Coop. Ass’n v. Indiana Dep’t of State Revenue, 568 N.E.2d 578 (Ind.Tax Ct.1991) (statutory interpretation guidance in rate computations)
  • Don Medow Motors, Inc. v. Grauman, 446 N.E.2d 651 (Ind.Ct.App.1983) (retroactive effect of judicial pronouncements on law)
  • Center Sch. Twp. v. State ex rel. Bd. of Sch. Comm’rs, 49 N.E. 963 (Ind.1898) (early articulation of retrospective applicability of law)
  • Uniden Am. Corp. v. Indiana Dep’t of State Revenue, 718 N.E.2d 821 (Ind.Tax Ct.1999) (statutory interpretation for tax computations)
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