MEMORANDUM
TO: All Political Subdivisions
FROM: Brian E. Bailey, Commissioner
RE: Changes to Cumulative Fund
Establishment
DATE: July 3, 2012
On March 19,
2012, Governor Mitch Daniels signed into law House Enrolled Act 1072 (“HEA
1072”), which modifies the process by which a political subdivision establishes
a cumulative fund or modifies a cumulative fund tax rate.
Section 42 of HEA 1072 repeals IC 6-1.1-41-5, which had required the Department of Local Government Finance (“Department”) to require that a Notice of Submission be given to taxpayers when a political subdivision presented a proposal to the Department to establish a cumulative fund or modify a cumulative fund tax rate.
Now a political subdivision must, pursuant to IC
6-1.1-41-3 as amended by Section 41 of HEA 1072, publish a Notice of Adoption in
accordance with IC 5-3-1-2(i) in a manner prescribed by the Department if the
political subdivision adopts a proposal to establish a cumulative fund or modify
a cumulative fund tax rate under IC 6-1.1-41-3.
These changes are effective July 1, 2012.
