House Enrolled Act 1288, Property Taxes, signed
STATEHOUSE - Rep. Milo Smith's (R-Columbus) bill concerning property taxes, House Enrolled Act 1288, was signed by Governor Daniels.
"I am pleased to see the Governor sign this bill, because it is needed to help local units of government who have been fiscally responsible," said Rep. Smith. "This bill focused on a tax matter that needed to be examined and enhanced."
House Enrolled Act 1288 states that a civil taxing unit's maximum permissible property tax levy may not be reduced if the unit does not use its entire maximum levy authority in the preceding year. It also states that a school corporation's maximum permissible transportation levy may not be reduced if the school corporation does not use its entire maximum levy authority in the preceding year.
"Prior to this legislation, some local governments found it necessary to utilize their full levy authority each year so that their base levy would remain high enough to meet anticipated or unanticipated future spending needs," said Rep. Smith. "Now that House Enrolled Act 1288 has become law, local governments can levy just what they need without fear of losing their ability to raise sufficient funds in the following year."