IC 6-3.6-3-4 (Version b): Tax rate expiration date; continuation of tax rate by ordinance after December 31, 2028

Sec. 4. (a) Except for a tax rate that has an expiration date, and except as provided in section 3(f) of this chapter (before its expiration), a tax rate remains in effect until the effective date of an ordinance that increases, decreases, or rescinds that tax rate.

(b) A tax rate may not be changed more than once each year under this article.

(c) A local income tax expenditure tax rate that is imposed in a county under IC 6-3.6-6 continues in effect after December 31, 2028, only if the adopting body adopts an ordinance to renew the expenditure tax rate beginning January 1, 2029. However, if there are bonds or leases outstanding that are payable from a tax imposed under IC 6-3.6-6, the expenditure tax rate for the county beginning January 1, 2029, under IC 6-3.6-6-2(b)(1) shall be at least the minimum tax rate necessary to produce one and twenty-five hundredths (1.25) times the sum of the:

(1) highest annual outstanding debt service;

(2) highest annual lease payments; and

(3) any amount required under the agreements for the bonds or leases to be deposited in a sinking fund or other reserve;

but only until the maturity date of those debt obligations. An ordinance under this subsection must be adopted by the adopting body on or before October 1, 2028, as set forth in section 3(b)(1) of this chapter. However, this subsection shall not be construed to prohibit an adopting body that fails to adopt an ordinance to continue an expenditure tax rate after December 31, 2028, from adopting an ordinance under this article to impose, renew, or modify an expenditure tax rate under IC 6-3.6-6 beginning January 1, 2030, or any year thereafter.