Ind. Code ch. 20-46-7

in effect

Ind. Code § 20-46-7-0.5 Public education corporation imposes property tax levy; use and deposit of revenue

Sec. 0.5. (a) Beginning with property taxes first due and payable after December 31, 2027: (1) a school city (as defined in IC 20-25-2-12) may not impose the property tax levy or otherwise exercise the powers and duties under this chapter; and (2) the public education corporation shall impose both: (A) an annual property tax levy in the territory of the school city sufficient to pay all obligations of the school city; and (B) an annual property tax levy in the territory of the school city sufficient to pay all obligations of the corporation. (b) Property tax revenue received from the: (1) property tax levy described in subsection (a)(2)(A) shall be deposited in the debt service fund established by the school city under IC 20-40-9 and used to pay debt service on the same terms, for the same period of time, and for the same purposes for which the obligation was initially authorized; and (2) property tax levy described in subsection (a)(2)(B) shall be deposited in the public education corporation's debt service fund established by IC 20-25-7-3 and used for the purposes of the fund. As added by P.L.101-2026, SEC.18.

Ind. Code § 20-46-7-1 "Fund"

Sec. 1. As used in this chapter, "fund" refers to the debt service fund. [2006 Recodification Citation: New.] As added by P.L.2-2006, SEC.169.

Ind. Code § 20-46-7-2 "Levy"

Sec. 2. As used in this chapter, "levy" refers to a levy imposed under this chapter. [2006 Recodification Citation: New.] As added by P.L.2-2006, SEC.169.

Ind. Code § 20-46-7-3 "Obligation"

Sec. 3. As used in this chapter, "obligation" refers to any obligation that is permitted or required by law to be paid from the fund under IC 20-40-9 or another law. [2006 Recodification Citation: New.] As added by P.L.2-2006, SEC.169.

Ind. Code § 20-46-7-4 Duty; levy

Sec. 4. (a) The governing body of each school corporation shall establish a levy in every calendar year sufficient to pay all obligations. (b) This subsection applies to a school corporation that consolidates under IC 20-23-6-12.5. The governing body shall establish a levy for each subunit (as defined in IC 20-23-6-0.5) in each calendar year sufficient to pay the debts and obligations that the particular subunit incurred before consolidating with one (1) or more school corporations under IC 20-23-6-12.5. [Pre-2006 Recodification Citation: 21-2-4-3 part.] As added by P.L.2-2006, SEC.169. Amended by P.L.169-2017, SEC.9.

Ind. Code § 20-46-7-5 Conditions; levy in excess of advertised levy

Sec. 5. If the advertised levy is insufficient to produce revenue to meet all obligations for any calendar year, the department of local government finance may establish a levy greater than advertised if necessary to meet the school corporation's obligations. [Pre-2006 Recodification Citation: 21-2-4-3 part.] As added by P.L.2-2006, SEC.169.

Ind. Code § 20-46-7-6 Levy; advance from state

Sec. 6. An amount equal to deductions made or to be made in the current year for the payment of principal and interest on an advancement from any state fund (including the common school fund and the veterans memorial school construction fund) may be included in a levy and appropriated and paid to the operations fund. [Pre-2006 Recodification Citation: 21-2-4-5 part.] As added by P.L.2-2006, SEC.169. Amended by P.L.238-2019, SEC.19.

Ind. Code § 20-46-7-7 Levy; advance; common school fund

Sec. 7. A school corporation receiving an advancement: (1) under IC 20-49-2 may annually levy a tax for the fund as provided in IC 20-49-2-16; (2) for a school building construction program may annually levy a tax for the fund as provided in IC 20-49-4-21; (3) for an educational technology program may annually levy a tax for the fund as provided in IC 20-49-4-22; or (4) under IC 20-49-10 may annually levy a tax for the fund as provided in IC 20-49-10-10. [2006 Recodification Citation: New.] As added by P.L.2-2006, SEC.169. Amended by P.L.211-2018(ss), SEC.11.

Ind. Code § 20-46-7-8 School bus purchases or leases; exemptions from restrictions

Sec. 8. (a) This section does not apply to the following: (1) Bonds or lease rental agreements for which a school corporation: (A) after June 30, 2008, makes a preliminary determination as described in IC 6-1.1-20-3.1 or IC 6-1.1-20-3.5 or a decision as described in IC 6-1.1-20-5; or (B) in the case of bonds or lease rental agreements not subject to IC 6-1.1-20-3.1, IC 6-1.1-20-3.5, or IC 6-1.1-20-5, adopts a resolution or ordinance authorizing the bonds or lease rental agreement after June 30, 2008. (2) Repayment from the debt service fund of loans made after June 30, 2008, for the purchase of school buses under IC 20-27-4-5. (b) A school corporation must file a petition requesting approval from the department of local government finance to: (1) incur bond indebtedness; (2) enter into a lease rental agreement; or (3) repay from the debt service fund loans made for the purchase of school buses under IC 20-27-4-5; not later than twenty-four (24) months after the first date of publication of notice of a preliminary determination under IC 6-1.1-20-3.1(b)(2), unless the school corporation demonstrates that a longer period is reasonable in light of the school corporation's facts and circumstances. (c) A school corporation must obtain approval from the department of local government finance before the school corporation may: (1) incur the indebtedness; (2) enter into the lease agreement; or (3) repay the school bus purchase loan. (d) This restriction does not apply to property taxes that a school corporation levies to pay or fund bond or lease rental indebtedness created or incurred before July 1, 1974. In addition, this restriction does not apply to a lease agreement or a purchase agreement entered into between a school corporation and the Indiana bond bank for the lease or purchase of a school bus under IC 5-1.5-4-1(a)(5), if the lease agreement or purchase agreement conforms with the school corporation's school bus replacement plan. (e) This section does not apply to school bus purchase loans made by a school corporation that will be repaid solely from the operations fund of the school corporation. [Pre-2006 Recodification Citations: subsections (a), (b), (c) formerly 6-1.1-19-8(a); subsection (d) formerly 6-1.1-19-8(e).] As added by P.L.2-2006, SEC.169. Amended by P.L.192-2006, SEC.11; P.L.224-2007, SEC.116; P.L.146-2008, SEC.509; P.L.246-2017, SEC.10; P.L.244-2017, SEC.104; P.L.140-2018, SEC.21.

Ind. Code § 20-46-7-8.5 Review and approval by department of local government finance not required for certain bonds, leases, or other obligations

Sec. 8.5. (a) Notwithstanding any other provision, review by the department of local government finance and approval by the department of local government finance are not required before a school corporation may issue or enter into bonds, a lease, or any other obligation, if the school corporation: (1) after June 30, 2008, makes a preliminary determination as described in IC 6-1.1-20-3.1 or IC 6-1.1-20-3.5 or a decision as described in IC 6-1.1-20-5; or (2) in the case of bonds, leases, or other obligations not subject to IC 6-1.1-20-3.1, IC 6-1.1-20-3.5, or IC 6-1.1-20-5, adopts a resolution or ordinance authorizing the bonds, lease rental agreement, or other obligations after June 30, 2008. (b) A school corporation is not required to obtain the approval of the department of local government finance before the school corporation may repay from the debt service fund any loans made after June 30, 2008, for the purchase of school buses under IC 20-27-4-5. (c) This subsection applies after June 30, 2008. Notwithstanding any other provision, review by the department of local government finance and approval by the department of local government finance are not required before a school corporation may construct, alter, or repair a capital project. As added by P.L.146-2008, SEC.510.

Ind. Code § 20-46-7-9 Review by department of local government finance

Sec. 9. (a) This section applies only to an obligation subject to section 8 of this chapter. This section does not apply to bonded indebtedness or lease rental agreements for which a school corporation: (1) after June 30, 2008, makes a preliminary determination as described in IC 6-1.1-20-3.1 or IC 6-1.1-20-3.5 or a decision as described in IC 6-1.1-20-5; or (2) in the case of bonds or lease rental agreements not subject to IC 6-1.1-20-3.1, IC 6-1.1-20-3.5, or IC 6-1.1-20-5, adopts a resolution or ordinance authorizing the bonds or lease rental agreement after June 30, 2008. (b) The department of local government finance may: (1) approve; (2) disapprove; or (3) modify then approve; a school corporation's proposed lease rental agreement, bond issue, or school bus purchase loan. Before the department of local government finance approves or disapproves a proposed lease rental agreement, bond issue, or school bus purchase loan, the department of local government finance may seek the recommendation of the tax control board. (c) The department of local government finance shall render a decision not more than three (3) months after the date the department of local government finance receives a request for approval under section 8 of this chapter. However, the department of local government finance may extend this three (3) month period by an additional three (3) months if, at least ten (10) days before the end of the original three (3) month period, the department of local government finance sends notice of the extension to the executive officer of the school corporation. [Pre-2006 Recodification Citations: subsections (a), (b) formerly 6-1.1-19-8(b); subsection (c) formerly 6-1.1-19-8(c) part.] As added by P.L.2-2006, SEC.169. Amended by P.L.224-2007, SEC.117; P.L.146-2008, SEC.511.

Ind. Code § 20-46-7-10 Approval; required study of classroom space

Sec. 10. (a) This section applies only to an obligation described in section 8 of this chapter. This section does not apply to bonded indebtedness or lease rental agreements for which the school corporation: (1) after June 30, 2008, makes a preliminary determination as described in IC 6-1.1-20-3.1 or IC 6-1.1-20-3.5 or a decision as described in IC 6-1.1-20-5; or (2) in the case of bonds or lease rental agreements not subject to IC 6-1.1-20-3.1, IC 6-1.1-20-3.5, or IC 6-1.1-20-5, adopts a resolution or ordinance authorizing the bonds or lease rental agreement after June 30, 2008. (b) The department of local government finance may not approve a school corporation's proposed lease rental agreement or bond issue to finance the construction of additional classrooms unless the school corporation first: (1) establishes that additional classroom space is necessary; and (2) conducts a feasibility study, holds public hearings, and hears public testimony on using a twelve (12) month school term (instead of the nine (9) month school term (as defined in IC 20-30-2-7)) rather than expanding classroom space. (c) A taxpayer may petition for judicial review of the final determination of the department of local government finance under this section. The petition must be filed in the tax court not more than thirty (30) days after the department of local government finance enters its order under this section. [Pre-2006 Recodification Citations: subsections (a), (b) formerly 6-1.1-19-8(d); subsection (c) formerly 6-1.1-19-8(f).] As added by P.L.2-2006, SEC.169. Amended by P.L.224-2007, SEC.118; P.L.146-2008, SEC.512.

Ind. Code § 20-46-7-11 Approval; factors considered; no authority to review or approve financing

Sec. 11. (a) The department of local government finance in determining whether to approve or disapprove a school building construction project shall consider the following factors: (1) The current and proposed square footage of school building space per student. (2) Enrollment patterns within the school corporation. (3) The age and condition of the current school facilities. (4) The cost per square foot of the school building construction project. (5) The effect that completion of the school building construction project would have on the school corporation's tax rate. (6) Any other pertinent matter. (b) The authority of the department of local government finance to determine whether to approve or disapprove a school building construction project does not after June 30, 2008, include the authority to review or approve the financing of the school building construction project. [Pre-2006 Recodification Citation: 6-1.1-19-4.2.] As added by P.L.2-2006, SEC.169. Amended by P.L.146-2008, SEC.513; P.L.182-2009(ss), SEC.358.

Ind. Code § 20-46-7-12 Maximum term of bonds

Sec. 12. (a) Except as provided by IC 5-1-14-10 and subsection (c), the maximum term or repayment period for bonds issued by a school corporation for a school building construction project may not exceed twenty (20) years after the date of the issuance of the bonds. (b) If a school corporation is an eligible school corporation under IC 5-1-5-2.5 or IC 5-1-5-2.6, the school corporation may extend the repayment period beyond the maximum repayment period that applied to the bond, loan, or lease at the time the obligation was incurred as provided by IC 5-1-5-2.5 or IC 5-1-5-2.6. (c) Except as provided by IC 5-1-14-10, the maximum term or repayment period for bonds issued by a school corporation for a school building construction project and to repay loans made or guaranteed by a federal agency may not exceed forty (40) years after the date of the issuance of the bonds. [Pre-2006 Recodification Citation: 6-1.1-19-4.6.] As added by P.L.2-2006, SEC.169. Amended by P.L.146-2008, SEC.514; P.L.229-2011, SEC.220; P.L.159-2020, SEC.63; P.L.157-2026, SEC.214.

Ind. Code § 20-46-7-13 Annual review

Sec. 13. The department of local government finance shall annually conduct the review of debt service obligations (as defined in IC 20-48-1-11) required in IC 20-48-1-11. [2006 Recodification Citation: New.] As added by P.L.2-2006, SEC.169.

Ind. Code § 20-46-7-14 Payments toward principal required on at least annual basis

Sec. 14. After May 15, 2007, the department of local government finance may not approve under section 9 of this chapter a school corporation's proposed: (1) bond issue that does not provide for payments toward the principal of the bonds on at least an annual basis in the amount determined under the rules or guidelines adopted by the department of local government finance; (2) lease rental agreement that does not provide for repayments toward the present asset value of the lease at its inception on at least an annual basis in the amount determined under the rules or guidelines adopted by the department of local government finance; or (3) debt service fund loan to purchase school buses that does not provide for payments toward the principal of the loan on at least an annual basis in the amount determined under the rules or guidelines adopted by the department of local government finance. As added by P.L.224-2007, SEC.119.

Ind. Code § 20-46-7-15 Use of savings resulting from refunding bonds

Sec. 15. (a) As used in this section, "debt service fund" includes the separate debt service fund for the payment of debt service on bonds used to implement solutions to a contractual retirement or severance liability. (b) As used in this section, "eligible school corporation" has the meaning set forth in IC 5-1-5-2.5 or IC 5-1-5-2.6. (c) As used in this section, "increment" refers to the annual increment computed under IC 5-1-5-2.5 or IC 5-1-5-2.6 with respect to bonds issued to retire or otherwise refund other bonds for each year that the bonds that are being retired or refunded would have been outstanding. (d) A school corporation may make a request to continue to impose a debt service fund levy in the amount that the school corporation would have been able to impose to pay debt service on bonds that were retired or refunded by the issuance of refunding bonds. A school corporation must include in its request a copy of the ordinance adopted under IC 5-1-5-2.5 or IC 5-1-5-2.6. (e) The department of local government finance shall grant the school corporation permission to continue to impose such a debt service fund levy if the department finds that the school corporation qualifies to issue refunding bonds under IC 5-1-5-2.5 or IC 5-1-5-2.6. (f) An eligible school corporation that is granted permission to impose a debt service fund levy as described in this section may transfer the lesser of the amount of credits granted under IC 6-1.1-20.6 against the school corporation's combined levy for all the school corporation's funds or the amount of the increment from the debt service fund to the operations fund. As added by P.L.229-2011, SEC.221. Amended by P.L.244-2017, SEC.105; P.L.157-2026, SEC.215.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/20Fetched: 10/17/2026