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Wednesday, June 25, 2014

Ind. Decisions - Tax Court posts a second opinion today

In Clark County, Indiana v. Indiana Department of Local Government Finance, Judge Wentworth writes:

Clark County, Indiana has challenged the Indiana Department of Local Government Finance’s (DLGF) final determination denying its petition for an excess property tax levy for the 2011 budget year. The Court affirms the DLGF’s final determination.
This was a significant loss for Clark County, involving problems which began in 2007:
In 2007, the Council determined it would not levy the maximum amount of property taxes permitted by statute for the 2008 budget year because it had nearly $4 million in a rainy day fund and wanted to “take some of the burden off of the homeowners.” (See Cert. Admin. R. at 374-75, 382.) The DLGF advised the Council at that time, however, that such action would negatively impact what Clark County would be able to levy in the future. (See Cert. Admin. R. at 380.) More specifically, the DLGF explained to the Council that if it reduced its levy for 2008, the county’s maximum levy in 2009 would be, pursuant to statute, reduced by one-half of the difference between 2008’s maximum levy and actual levy. (See Cert. Admin. R. at 380.) Despite the DLGF’s warning, the Council approved a property tax levy for $2.7 million less than what was statutorily allowed in 2008. (See Cert. Admin. R. at 374.)

Posted by Marcia Oddi on June 25, 2014 06:53 PM
Posted to Ind. Tax Ct. Decisions