Indiana Code Title 6. Taxation § 6-1.1-17-16.2

Sec. 16.2. (a) The department of local government finance may not approve the budget of a taxing unit or a supplemental appropriation for a taxing unit until the taxing unit files an annual report under IC 5-11-1-4 or IC 5-11-13 for the preceding calendar year, unless the taxing unit did not exist as of the assessment date of the calendar year preceding the ensuing calendar year by two (2) years.  This section applies to a taxing unit that is the successor to another taxing unit or the result of a consolidation or merger of more than one (1) taxing unit, if an annual report under IC 5-11-1-4 or IC 5-11-13 has not been filed for each predecessor taxing unit.

(b) After June 30, 2016, the department of local government finance may not approve the budget of a taxing unit or a supplemental appropriation for a taxing unit if the department of local government finance receives information from the state board of accounts that the political subdivision has not corrected a violation under IC 5-11-1-27(i)(1) or IC 5-11-1-27(i)(2) within the period set forth in IC 5-11-1-27(i).