1. (a) This subsection applies to the plan of reorganization of a political subdivision other than a school corporation. The plan of reorganization must specify the amount (if any) of the decrease that the department of local government finance shall make to the maximum permissible property tax levies, maximum permissible property tax rates, and budgets under IC 6-1.1-17 and IC 6-1.1-18.5 of the reorganized political subdivision to:

   1. (1) eliminate double taxation for services or goods provided by the reorganized political subdivision; or
   2. (2) eliminate any excess by which the amount of property taxes imposed by the reorganized political subdivision exceeds the amount necessary to pay for services or goods provided under this article.

2. (b) This subsection applies to a plan of reorganization for a school corporation. The plan of reorganization must specify the adjustments that the department of local government finance shall make to the maximum permissible property tax levies, maximum permissible property tax rates, and budgets under IC 6-1.1-17 and IC 6-1.1-18.5 of the reorganized school corporation. The following apply to a school corporation reorganized under this article:

   1. (1) The new maximum permissible tax levy under IC 20-46-4 (transportation fund) and IC 20-46-5 (school bus replacement) for the first calendar year in which the reorganization is effective equals the following:

      STEP ONE: Determine for each school corporation that is part of the reorganization the sum of the maximum levies under IC 20-46-4 and IC 20-46-5 for the ensuing calendar year, including the assessed value growth quotient ( IC 6-1.1-18.5-2 ) adjustment for the ensuing calendar year.

      STEP TWO: Determine the sum of the STEP ONE amounts.

      STEP THREE: Multiply the STEP TWO amount by one hundred three percent (103%).

   2. (2) The new maximum capital projects fund rate under IC 20-46-6 for the first calendar year in which the reorganization is effective equals the following:

      1. (i) the STEP FOUR amount; multiplied by
      2. (ii) one hundred (100).

      STEP ONE: Determine for each school corporation that is part of the reorganization the maximum amount that could have been levied using the school corporation's maximum capital projects fund tax rate for the calendar year.

      STEP TWO: Determine the sum of the STEP ONE amounts.

      STEP THREE: Determine the sum of the certified net assessed values for all the school corporations that are part of the reorganization.

      STEP FOUR: Divide the STEP TWO amount by the STEP THREE amount.

      STEP FIVE: Determine the product (rounded to the nearest ten-thousandth (0.0001)) of:

   3. (3) The new debt service levy under IC 20-46-7 for the first calendar year in which the reorganization is effective equals the sum of the debt service fund levies for each school corporation that is part of the reorganization that would have been permitted under IC 20-46-7 in the calendar year.
3. (c) The fiscal body of the reorganized political subdivision shall determine and certify to the department of local government finance the amount of the adjustment (if any) under subsection (a).
4. (d) The amount of the adjustment (if any) under subsection (a) or (b) must comply with the reorganization agreement under which the political subdivision or school corporation is reorganized under this article.

As added by P.L.186-2006, SEC.4. Amended by P.L.58-2011, SEC.3; P.L.255-2013, SEC.7; P.L.217-2017, SEC.159.