What is a School Tax Levy Referendum?
A school corporation may conduct a referendum to increase its property tax levy. The appeal should state whether the proposed referendum would be used to fund new programs or supplement existing revenues, and the amount of the increase to the tax levy requested. A referendum is an increased levy raised through a special fund titled "referendum fund" for a period not to exceed 7 years. However, a referendum tax levy may be re-imposed or extended under the law.
IC 20-46-1-8; -9 allow a school board to adopt a resolution to place a referendum on the ballot for either of the following purposes:
- The school board determines that it cannot, in a calendar year, carry out its public educational duty unless it imposes a referendum tax levy.
- The school board determines that a referendum tax levy should be imposed to replace property tax revenue that the school corporation will not receive because of the application of the circuit breaker credit under IC 6-1.1-20.6.
A referendum tax levy may be put into effect only if a majority of the individuals who vote in a referendum approve the school corporation's referendum question for the following calendar year.
