Indiana Constitution ARTICLE 10.
Indiana Constitution – Article 10: Finance
Article 10 of the Indiana Constitution deals with the state’s financial system, including taxation, public debt, and fiscal responsibility.
Here is a breakdown of its main sections:
Section 1 – Uniformity and Equality of Assessment
Laws must prescribe a uniform and equal rate of property assessment and taxation.
Property is to be taxed based on value, with exceptions for certain personal property.
The General Assembly may exempt property used for:
Municipal, educational, literary, scientific, religious, or charitable purposes.
Section 2 – Public Debt Limitation
The state may not incur debt, except to meet casual deficits, repel invasion, suppress insurrection, or defend the state in war.
Any other debts must be authorized by law and approved by the people through a referendum.
Section 3 – No Borrowing for Deficits
Public debt cannot be used to pay deficits in the state treasury beyond what's allowed in Section 2.
Section 4 – Budget Process
No money can be drawn from the treasury without an appropriation by law.
A regular statement and account of receipts and expenditures must be published.
Section 5 – State Debt Paid by Tax
If the state does incur debt, the law must provide for a sufficient tax to pay both principal and interest.
Section 6 – Local Government Finance
Counties, townships, and other local units may incur debts under strict limitations set by the General Assembly.
Section 7 – Education Funds Protected
Funds designated for education purposes (e.g., Common School Fund) are protected and cannot be diverted for other uses.
Summary:
Article 10 of the Indiana Constitution ensures responsible fiscal management by:
Requiring uniform property taxation,
Limiting the state's ability to incur debt,
Protecting educational funds, and
Mandating transparency and legislative oversight of public spending.
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