Sec. 25. (a) The ad valorem property tax levy limits imposed under section 3 of this chapter do not apply to a municipality in a year if all the following apply:

(1) The percentage growth in the municipality’s assessed value for the preceding year compared to the year before the preceding year is at least two (2) times the maximum levy growth quotient determined under section 2 of this chapter for the preceding year.

(2) The municipality’s population increased by at least one hundred fifty percent (150%) between the last two (2) decennial censuses. The computation of an increase of one hundred fifty percent (150%) under this subdivision shall be determined according to the last STEP of the following STEPS:

STEP ONE: Determine the municipality’s population as tabulated following the first decennial census.

STEP TWO: Determine the municipality’s population as tabulated following the second decennial census.

STEP THREE: Multiply the amount determined under STEP ONE by a factor of two and five-tenths (2.5).

STEP FOUR: Determine whether the population determined under STEP TWO is greater than or equal to the STEP THREE product.

     (b) A municipality that meets all the requirements under subsection (a) may increase its ad valorem property tax levy in excess of the limits imposed under section 3 of this chapter by a percentage equal to the lesser of:

(1) the percentage growth in the municipality’s assessed value for the preceding year compared to the year before the preceding year; or

(2) six percent (6%).

     (c) A municipality’s maximum levy growth that results from either annexation or the pass through of assessed value from a tax increment financing district may not be included for the purposes of determining a municipality’s maximum levy growth under this section.

     (d) This section applies to property tax levies imposed after December 31, 2016.

As added by P.L.180-2016, SEC.11. Amended by P.L.159-2020, SEC.39; P.L.236-2023, SEC.32.