ILNews

Clark County loses request to impose excess property tax levy

Back to TopCommentsE-mailPrintBookmark and Share

Noting that the Clark County Council made the conscious decision to not levy the maximum amount of property taxes allowed by statute for the 2008 budget year, it cannot now claim that decision is somehow a data error that the Department of Local Government Finance could later correct, the Indiana Tax Court ruled Wednesday.

In Clark County, Indiana v. Indiana Department of Local Government Finance, 39T10-1102-TA-9, citing a nearly $4 million rainy day fund in 2007, the council decided not to tax homeowners the maximum amount permitted by law because it wanted to “take some of the burden off of the homeowners.” The DLGF advised the council at that time that such action would negatively impact what the county would be able to levy in the future based on a formula in the statute that incorporates a “use it or lose it provision.”  

The formula is cumulative in its effect. The “maximum permissible ad valorem property levy” calculated under the formula in one year provides the starting point for calculating the successive year’s “maximum permissible ad valorem property levy.” That provision has since been removed.

Clark County argued that the DLGF abused its discretion by arbitrarily and capriciously determining that the council did not make a data error, correctable under Indiana Code 6-1.1-18.5-14, when it approved its 2008 property tax levy for $2.7 million less than what was statutorily permitted. Second, Clark County argued that the DLGF contravened the law when it failed to apply retroactively the 2011 statutory amendment that eliminated the “use it or lose it” provision from the formula contained in Indiana Code 6-1.1-18.5-3. Third, Clark County claimed that the DLGF violated its due process rights.

Statute allows for correction of an objective error only, not a subjective error, Judge Martha Wentworth wrote. Despite the DLGF’s warning, the council proceeded to approve the property tax level for less than what was statutorily allowed in 2008.

“This was not an ‘error in data,’ nor was it even an error in interpreting data. Instead it was simply a failure on the part of the Council to plan for budgetary contingencies.”

The statute was not amended to eliminate the “use it or lose it” provision retroactively, Wentworth held. Also, the statute does not require DLGF to hold a hearing on Clark County’s level appeal and since the county did not provide any other legal analysis to support its claim that it has been deprived due process, Wentworth declined to reverse the DLGF’s final determination on that basis.

 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. Paul Ogden doing a fine job of remembering his peer Gary Welsh with the post below and a call for an Indy gettogether to celebrate Gary .... http://www.ogdenonpolitics.com/2016/05/indiana-loses-citizen-journalist-giant.html Castaways of Indiana, unite!

  2. It's unfortunate that someone has attempted to hijack the comments to promote his own business. This is not an article discussing the means of preserving the record; no matter how it's accomplished, ethics and impartiality are paramount concerns. When a party to litigation contracts directly with a reporting firm, it creates, at the very least, the appearance of a conflict of interest. Court reporters, attorneys and judges are officers of the court and must abide by court rules as well as state and federal laws. Parties to litigation have no such ethical responsibilities. Would we accept insurance companies contracting with judges? This practice effectively shifts costs to the party who can least afford it while reducing costs for the party with the most resources. The success of our justice system depends on equal access for all, not just for those who have the deepest pockets.

  3. As a licensed court reporter in California, I have to say that I'm sure that at some point we will be replaced by speech recognition. However, from what I've seen of it so far, it's a lot farther away than three years. It doesn't sound like Mr. Hubbard has ever sat in a courtroom or a deposition room where testimony is being given. Not all procedures are the same, and often they become quite heated with the ends of question and beginning of answers overlapping. The human mind can discern the words to a certain extent in those cases, but I doubt very much that a computer can yet. There is also the issue of very heavy accents and mumbling. People speak very fast nowadays, and in order to do that, they generally slur everything together, they drop or swallow words like "the" and "and." Voice recognition might be able to produce some form of a transcript, but I'd be very surprised if it produces an accurate or verbatim transcript, as is required in the legal world.

  4. Really enjoyed the profile. Congratulations to Craig on living the dream, and kudos to the pros who got involved to help him realize the vision.

  5. Why in the world would someone need a person to correct a transcript when a realtime court reporter could provide them with a transcript (rough draft) immediately?

ADVERTISEMENT