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Do You Have a CCD Fund?

By Paige E. Sansone, CPA, Partner, June 01, 2017

If not, you may have noticed a reduced levy for 2017.

Beginning in 2017 the Cumulative Capital Development (“CCD”) fund will be the only cumulative fund that will be allowed an adjustment outside the maximum levy limit. Before legislation passed in early 2016, taxing units were given a positive adjustment to the maximum levy for a CCD fund. In other words, a taxing unit with an existing CCD fund could generate additional property tax above the maximum levy limit. Taxing units without a CCD fund were also eligible for a positive adjustment to the maximum levy if it had other cumulative funds, but the adjustment was typically less than what could have been with a CCD fund.

2016 Legislation Removed Adjustment

New legislation removed the adjustment for all other cumulative funds except CCD. This is not an issue for those that currently have CCD funds. However, taxing units that do not have an existing CCD fund can no longer generate property tax above the maximum levy for the other cumulative funds. How do you keep that ability?

By establishing a CCD fund–now. Although the deadline to establish a new CCD fund is August 1, the required process takes time and is best done prior to the budget season.

Indiana law allows several cumulative funds, however the CCD fund is the most common and allows the most flexibility. Current law allows a municipal CCD fund to be used for any purpose, thus potentially improving your ability to pay for operating and capital needs. County CCD funds are limited to capital improvements and purchases.

How to Establish or Reestablish a CCD Fund Rate

If you have a CCD fund, you may have noticed the rate declining over the past few years, possibly related to reassessment and annual trending. Maximum CCD fund rates are:

  • Municipalities
    • $.05 - in counties that have adopted CAGIT or COIT
    • $.04 – in counties that previously did not adopt CAGIT or COIT

  • Counties
    • $.0333 – in counties that have adopted CAGIT or COIT
    • $.0233 – in counties that previously did not adopt CAGIT or COIT

The process to establish a CCD Fund or re-establish the rate to the maximum is the same, but be aware that the process takes time and the Notice of Adoption must be submitted to DLGF by August 1.

The process is as follows:

  • The legislative or fiscal body must approve the rate after conducting an advertised public hearing.
  • A Notice of Adoption is published, which starts a period a 30-day remonstrance period whereby 50 or more taxpayers may file an objection
  • When the remonstrance period ends, proofs of publication, signed ordinance or resolution and a procedure checklist (available from the DLGF) must be forwarded to DLGF no later than August 1.

If you have questions, need assistance with establishing a cumulative fund or any other budgetary planning, please contact us at .(JavaScript must be enabled to view this email address).

Information in this article was believed current as of the date of publication. As you know, changes occur frequently. The information presented is of a general educational nature. Before applying to your specific circumstances, please contact us at


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