{"data":{"id":"us-in/ic-6-1.1-18-12","jurisdiction":"us-in","citation":"IC 6-1.1-18-12","heading":"Adjustment of maximum tax rates after reassessment or annual adjustment","body":"Sec. 12. (a) For purposes of this section, \"maximum rate\" refers to the maximum:\n(1) property tax rate or rates; or\n(2) special benefits tax rate or rates;\nreferred to in the statutes listed in subsection (d).\n(b) The maximum rate for taxes first due and payable after 2003 is the maximum rate that would have been determined under subsection (e) for taxes first due and payable in 2003 if subsection (e) had applied for taxes first due and payable in 2003.\n(c) The maximum rate must be adjusted each year to account for the change in assessed value of real property that results from:\n(1) an annual adjustment of the assessed value of real property under IC 6-1.1-4-4.5; or\n(2) a reassessment under a county's reassessment plan prepared under IC 6-1.1-4-4.2.\n(d) The statutes to which subsection (a) refers are:\n(1) IC 8-10-5-17 (for taxes due and payable before January 1, 2023);\n(2) IC 8-22-3-11;\n(3) IC 8-22-3-25 (for taxes due and payable before January 1, 2023);\n(4) IC 12-29-1-1;\n(5) IC 12-29-1-2;\n(6) IC 12-29-1-3;\n(7) IC 12-29-3-6;\n(8) IC 13-21-3-12;\n(9) IC 13-21-3-15;\n(10) IC 14-27-6-30;\n(11) IC 14-33-7-3;\n(12) IC 14-33-21-5 (for taxes due and payable before January 1, 2023);\n(13) IC 15-14-7-4;\n(14) IC 15-14-9-1;\n(15) IC 15-14-9-2;\n(16) IC 16-20-2-18;\n(17) IC 16-20-4-27;\n(18) IC 16-20-7-2;\n(19) IC 16-22-14;\n(20) IC 16-23-1-29;\n(21) IC 16-23-3-6;\n(22) IC 16-23-4-2;\n(23) IC 16-23-5-6;\n(24) IC 16-23-7-2;\n(25) IC 16-23-8-2;\n(26) IC 16-23-9-2;\n(27) IC 16-41-15-5;\n(28) IC 16-41-33-4;\n(29) IC 20-46-2-3 (before its repeal on January 1, 2009);\n(30) IC 20-46-6-5 (before its repeal on January 1, 2019);\n(31) IC 20-49-2-10;\n(32) IC 36-1-19-1;\n(33) IC 23-14-66-2;\n(34) IC 23-14-67-3;\n(35) IC 36-7-13-4;\n(36) IC 36-7-14-28;\n(37) IC 36-7-15.1-16;\n(38) IC 36-8-19-8.5 (for taxes due and payable before January 1, 2023);\n(39) IC 36-9-6.1-2;\n(40) IC 36-9-17.5-4 (for taxes due and payable before January 1, 2023);\n(41) IC 36-9-27-73;\n(42) IC 36-9-29-31;\n(43) IC 36-9-29.1-15;\n(44) IC 36-10-6-2;\n(45) IC 36-10-7-7;\n(46) IC 36-10-7-8;\n(47) IC 36-10-7.5-19 (for taxes due and payable before January 1, 2023);\n(48) IC 36-10-13-5 (before the power to impose a levy was removed on January 1, 2019);\n(49) IC 36-10-13-7 (before the power to impose a levy was removed on January 1, 2019);\n(50) IC 36-10-14-4 (before its repeal on January 1, 2019);\n(51) IC 36-12-7-7;\n(52) IC 36-12-7-8;\n(53) IC 36-12-12-10;\n(54) a statute listed in IC 6-1.1-18.5-9.8 (for taxes due and payable before January 1, 2023); and\n(55) any statute enacted after December 31, 2003, that:\n(A) establishes a maximum rate for any part of the:\n(i) property taxes; or\n(ii) special benefits taxes;\nimposed by a political subdivision; and\n(B) does not exempt the maximum rate from the adjustment under this section.\n(e) For property tax rates imposed for property taxes first due and payable after December 31, 2013, the new maximum rate under a statute listed in subsection (d) is the tax rate determined under STEP EIGHT of the following STEPS:\nSTEP ONE: Determine the maximum rate for the political subdivision levying a property tax or special benefits tax under the statute for the previous calendar year.\nSTEP TWO: Determine the actual percentage change (rounded to the nearest one-hundredth percent (0.01%)) in the assessed value of the taxable property from the previous calendar year to the year in which the affected property taxes will be imposed.\nSTEP THREE: Determine the three (3) calendar years that immediately precede the year in which the affected property taxes will be imposed.\nSTEP FOUR: Compute separately, for each of the calendar years determined in STEP THREE, the actual percentage change (rounded to the nearest one-hundredth percent (0.01%)) in the assessed value (before the adjustment, if any, under IC 6-1.1-4-4.5) of the taxable property from the preceding year.\nSTEP FIVE: Divide the sum of the three (3) quotients computed in STEP FOUR by three (3).\nSTEP SIX: Determine the greater of the following:\n(A) Zero (0).\n(B) The STEP FIVE result.\nSTEP SEVEN: Determine the greater of the following:\n(A) Zero (0).\n(B) The result of the STEP TWO percentage minus the STEP SIX percentage, if any.\nSTEP EIGHT: Determine the quotient of the STEP ONE tax rate divided by the sum of one (1) plus the STEP SEVEN percentage, if any.\n(f) The department of local government finance shall compute the maximum rate allowed under subsection (e) and provide the rate to each political subdivision with authority to levy a tax under a statute listed in subsection (d).","path":["TITLE 6. TAXATION","ARTICLE 1.1. PROPERTY TAXES","Chapter 18. Limitations on Property Tax Rates and Appropriations"],"source_url":"https://iga.in.gov/ic/2026/Title_6.html#6-1.1-18-12","current_through":"2026","vintage":"2026","retrieved_at":"2026-09-09T01:51:39Z","sha256":"04fdad0b4aef60f6b7aa617c6cbc1c5218b537842e6ad2c66f75ef0ad22787de","source_id":"us-in","stale":false,"prev":"us-in/ic-6-1.1-18-11","next":"us-in/ic-6-1.1-18-12.5"},"notice":"GroundRules: Original legal text. Not legal advice."}