Sec. 1. (a) This section applies to any county that imposed a former tax to provide for a levy freeze.

     (b) The tax rate used to provide for a levy freeze shall be part of the tax rate under IC 6-3.6-6. The maximum tax rate that may be applied for a levy freeze is one percent (1%). The levy freeze tax rate may be increased but not decreased or rescinded unless an adopting body adopts a resolution to request approval from the department of local government finance to lower the levy freeze tax rate.

     (c) The department of local government finance shall approve a lower levy freeze tax rate if it finds that the lower rate, in addition to:

(1) the supplemental distribution as determined in a resolution adopted under subsection (d); and

(2) the amount in the stabilization fund established under IC 6-3.5-1.1-24 (repealed) or IC 6-3.5-6-30 (repealed), as applicable;

would fund the levy freeze dollar amount (the total amount of foregone maximum levy increases for all taxing units for all years). If the department approves a lower levy freeze tax rate, the adopting body must adopt an ordinance to lower the levy freeze tax rate before the lower rate may take effect. The county shall provide the department with a determination of the amount in the stabilization funds for purposes of this subsection.

     (d) A county may adopt a resolution to require that a supplemental distribution amount to be distributed under IC 6-3.6-9-15(d)(4) shall first be used to lower the levy freeze tax rate in subsection (c). If a resolution is adopted, the supplemental distribution under IC 6-3.6-9-15(d)(4) shall first be used to lower a county’s levy freeze tax rate and any additional supplemental distribution calculated that is above the amount needed to lower the levy freeze tax rate shall be distributed to each taxing unit as provided under IC 6-3.6-9-15(d)(4).

     (e) The revenue from the tax rate shall continue to be applied under this article as it was applied under the former tax, including the use of a stabilization fund.

     (f) The distributions of income tax revenue attributable to a levy freeze tax rate shall be made before allocating or distributing the remaining revenue under IC 6-3.6-6 or applying the property tax credits funded by a tax rate under IC 6-3.6-5.

As added by P.L.243-2015, SEC.10. Amended by P.L.197-2016, SEC.69; P.L.247-2017, SEC.24; P.L.239-2023, SEC.16; P.L.156-2024, SEC.25.