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ATTORNEYS FOR PETITIONER: C. REX HENTHORN J. LAMONT HARRIS HENTHORN, HARRIS & WELIEVER Crawfordsville, IN

ATTORNEYS FOR RESPONDENTS: DANIEL L. TAYLOR DARREN C. CHADD KINCAID, TAYLOR, SIMS, CHADD & MINNETTE, P.C. Crawfordsville, IN

STEVE CARTER ATTORNEY GENERAL OF INDIANA ANDREW W. SWAIN SPECIAL COUNSEL JOHN D. SNETHEN DEPUTY ATTORNEY GENERAL Indianapolis, IN ______________________________________________________________________

IN THE INDIANA TAX COURT
CRAWFORDSVILLE COMMUNITY SCHOOL CORPORATION, ) ) ) Petitioner, ) ) v. ) ) Cause No. 49T10-0502-TA-15 CAROLE LYNN BARTON, AUDITOR OF ) MONTGOMERY COUNTY, INDIANA; ) MARGARET SUE HOWELL, TREASURER ) OF MONTGOMERY COUNTY, INDIANA; ) AND INDIANA DEPARTMENT OF LOCAL ) GOVERNMENT FINANCE, ) ) Respondents . ) ______________________________________________________________________ ORDER ON RESPONDENT INDIANA DEPARTMENT OF LOCAL GOVERNMENT FINANCE'S MOTION FOR JUDGMENT ON THE PLEADINGS NOT FOR PUBLICATION June 23, 2005 FISHER, J. The Crawfordsville Community School Corporation (CCSC) appeals from the final determination of the Indiana Department of Local Government Finance (DLGF)

which denied it any relief on its "Statement of Objections, Appeal of Tax Rate and Levy, and Request for Emergency Relief" (Appeal). The matter is currently before the Court on the DLGF's motion for judgment on the pleadings. FACTS AND PROCEDURAL HISTORY CCSC is located entirely within Union Township, Montgomery County, Indiana. In 2003, CCSC, through its authorized officers and after the appropriate public hearings, met and fixed its budget for 2004. September 15, 2003. On August 25, 2004, the Montgomery County Board of Tax Adjustment, after reviewing and revising CCSC's budget, approved a $10.8 million property tax levy for CCSC to be collected that same year. 1 The Auditor and the Treasurer subsequently issued three public notices (in a newspaper having general circulation within the county) on October 13, 20, and 27, 2004. The notices advised Montgomery County taxpayers of the tax rates to be charged on each $100.00 of assessed valuation in order to generate the approved property tax levy. Late in the afternoon on October 27, 2004, Montgomery County officials advised CCSC that a mathematical error had been made in determining the assessed value of taxable property in Union Township. More specifically, it was determined that the Union Township Assessor (Assessor) had overstated the assessed value of taxable property within Union Township by approximately $75 million. As a result of this error, the CCSC filed the budget with the Auditor on

property tax rates calculated by the Auditor and the Treasurer were understated. In other words, the application of the published tax rates to the actual assessed valuation The Court presumes that the levy would have been collected from the second installment of 2003's property taxes, due in November of 2004.
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within Union Township would result in an approximate $1.2 million levy shortfall for CCSC. On October 29, 2004, CCSC filed its Appeal with both the DLGF and the Auditor. In its Appeal, CCSC explained that due to the errors of the Assessor and the Auditor, the resulting property tax levy shortfall threatened its ability to carry out the public education duty committed to it by law. 2 Consequently, CCSC: 1) sought to appeal the tax rates and levies for tax revenues collectible in 2004, 2005, and 2006 because they were all premised on an erroneous assessed valuation 3 ; 2) sought the approval of excess levies by which to avoid the anticipated shortfalls; 3) requested the correction of errors in the tax duplicates previously issued to Montgomery County taxpayers; and 4) requested emergency financial relief. No action was taken on CCSC's Appeal until January 28, 2005, when CCSC arranged an informal meeting on the matter. On February 14, 2005, however, the

DLGF communicated to CCSC that it would not conduct a hearing on CCSC's Appeal. 4 CCSC subsequently filed this original tax appeal. 5 On March 28, 2005, the

DLGF filed a motion for judgment on the pleadings pursuant to Indiana Trial Rule 12(C).

More specifically, CCSC indicated that "the unbilled and uncollected levy was impairing its debt service fund and school bus replacement fund, and creating a shortage of cash in other funds adversely affecting staffing and repair needs and directly impacting its ability to perform its educational duties for the school district during 2005." (Pet'r Compl. at

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