Sec. 40. (a) The governing board may request a cumulative hospital building fund and a tax rate upon all taxable property in the county in which the hospital is located to finance the fund. If a resolution is approved by majority vote of all members at a regular or special board meeting, the resolution shall be certified to the county auditor, who shall submit the resolution to the county executive for preliminary approval and recommendation. Upon the approval of the county executive, the county auditor shall publish notice of a public hearing before the county council on the establishment of a cumulative hospital building fund and tax rate in each year.
(b) The cumulative building tax rate begins in any calendar year when all proceedings to establish the tax rate have been completed before August 2 in that year. The rate is levied on each one hundred dollars ($100) of taxable property for that year, payable in the next year, and continues each year for a term not exceeding twelve (12) years. The resolution of the board must specify the following:
(1) The number of years.
(2) The effective date when the tax levy begins.
(3) The amount of the rate on each one hundred dollars ($100) of taxable property.
(4) Any other pertinent facts considered advisable by the board.
(c) Except as provided in subsections (f) through (h), the rate on each one hundred dollars ($100) may be reduced but not increased by the department of local government finance in approving a cumulative building tax rate. The rate as finally fixed by the department of local government finance is final. However, the county fiscal body, by three-fourths (3/4) affirmative vote of the county fiscal body's members, may reduce the rate in any given year or years to meet an emergency existing in the county, but the temporary reduction affects the rate only in the year when the action is taken. The rate is automatically restored to the rate's original amount in each succeeding year of the established period except in any other year when another emergency reduction is made. The rate is subject to review each year by the county fiscal body, but the department of local government finance may not reduce the rate below the original rate established and approved by vote of the county fiscal body unless the county fiscal body reduces the rate.
(d) The county fiscal body, city fiscal body, or department of local government finance does not have power or jurisdiction over the annual budget and appropriations, additional appropriations, or transfer of money unless the action involves the expenditure or raising of money derived from property taxes. If the cumulative building fund is the only hospital fund raised by taxation, section 31 of this chapter controls.
(e) The cumulative building fund raised may be properly and safely invested or reinvested by the board to produce an income until there is an immediate need for the fund's use. The fund and any income derived from investment or reinvestment of the fund may be used as follows:
(1) To purchase real property and grounds for hospital purposes.
(2) To remodel or make major repairs on any hospital building.
(3) To erect and construct hospital buildings or additions or extensions to the buildings.
(4) For any other major capital improvements, but not for current operating expenses or to meet a deficiency in operating funds.
(f) Not later than August 1 of any year, ten (10) or more taxpayers in the county may file with the county auditor of the county in which the hospital is located a petition for reduction or rescission of the cumulative building tax rate. The petition must set forth the taxpayers' objections to the tax rate. The petition shall be certified to the department of local government finance.
(g) Upon receipt of a petition under subsection (f), the department of local government finance shall, within a reasonable time, fix a date for a hearing on the petition. The hearing must be held in the county in which the hospital is located. Notice of the hearing shall be given to the county fiscal body and to the first ten (10) taxpayers whose names appear on the petition. The notice must be in the form of a letter signed by the secretary or any member of the department of local government finance, sent by mail with full prepaid postage to the county fiscal body and to the taxpayers at their usual places of residence at least five (5) days before the date fixed for the hearing.
(h) After the hearing under subsection (g), the department of local government finance shall approve, disapprove, or modify the request for reduction or rescission of the tax rate and shall certify that decision to the county auditor of the county in which the hospital is located.
[Pre-1993 Recodification Citation: 16-12.2-5-32.]
As added by P.L.2-1993, SEC.6. Amended by P.L.41-1993, SEC.32; P.L.90-2002, SEC.400; P.L.257-2019, SEC.90.
Structure Indiana Code
Article 23. Municipal and Other Types of Hospitals
Chapter 1. City Hospitals in Third Class Cities
16-23-1-1. Application of Chapter
16-23-1-2. Appropriations and Tax Levies; Conditions
16-23-1-3. Governing Board; Members; Allowable Name of the Board; Actions Legalized
16-23-1-4. Appointing Board; Members; Oath
16-23-1-4.1. Governing Board Membership Limitation
16-23-1-5. Appointing Board; Meetings
16-23-1-6. Board of Directors; Conflicts of Interest
16-23-1-7. Governing Board; Vacancies; Candidates
16-23-1-8. Governing Board; Vacancies; Appointments
16-23-1-9. Governing Board; Terms
16-23-1-10. Governing Board; Time of Appointments; Continuation of Appointing Board Membership
16-23-1-11. Board of Directors; Certificates of Appointment; Oaths and Bonds
16-23-1-12. Governing Board Meetings; Time and Place; Quorum
16-23-1-13. Treasurer; City Clerk-Treasurer
16-23-1-14. Separate Treasurer
16-23-1-15. Duties of Treasurer
16-23-1-16. Governing Board Officers
16-23-1-17. Duties of Governing Board Officers
16-23-1-18. Compensation of Governing Board Members and Officers
16-23-1-19. Duties of Governing Board
16-23-1-20. Nonprofit Operation; Rate Reductions
16-23-1-21. Discrimination Prohibited
16-23-1-22. Equipment and Personal Property
16-23-1-23. Procurement Contracts; Trust Bids, Proposals, and Quotations
16-23-1-24. Loans in Anticipation of Taxes
16-23-1-26. Estimate and Budget
16-23-1-27. Tax Levy Without Anticipated Deficiency Prohibited
16-23-1-28. Anticipated Deficiency; Tax Levy
16-23-1-29. Appropriations; Special Hospital Aid Tax
16-23-1-30. Emergency Appropriations
16-23-1-31. Appropriation Approval; Review; Revision; Annual Reports
16-23-1-32. Hospital Aid Taxes; Collection and Deposit
16-23-1-33. Records, Books, Papers, and Physical Property; Inspection and Examination
16-23-1-33.5. Hospital Employee Salary Information
16-23-1-34. Gifts, Donations, Bequests, Devises, and Property in Trust; Acceptance and Control
16-23-1-35. Facility Construction, Improvement, and Repair by City Legislative Bodies
16-23-1-36. Bonds; Terms; Security
16-23-1-37. Facility Construction, Improvement, and Repair by Governing Board
16-23-1-38. Federal Funds and Grants; County Funds
16-23-1-39. Emergency Hospital Construction, Improvement, and Repair; Bonds
16-23-1-40. Cumulative Hospital Building Fund; Tax Rate; Investment
16-23-1-41. Claims Against Hospitals
16-23-1-42. Maintenance and Operation of Properties
16-23-1-43. City Classification Changes; Effect
16-23-1-44. Joint Hospital Operation
16-23-1-45. Governing Board; Rights and Powers; Sale and Lease of Real Property
16-23-1-46. Sale of Real Property; Trust Bids; Lease of Real and Personal Property; Loans
16-23-1-47. Board of Directors; Authority and Powers; Direct Financial Subsidies