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Second Regular Session of the 124th General Assembly (2026)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2025 Regular Session of the General Assembly.
HOUSE ENROLLED ACT No. 1210
AN ACT to amend the Indiana Code concerning state and local
administration and to make an appropriation.
Be it enacted by the General Assembly of the State of Indiana:
SECTION 1. IC 3-11-1.5-18, AS AMENDED BY P.L.278-2019,
SECTION 52, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 18. (a) If the election division determines that the
proposed precinct establishment order would comply with this chapter,
the election division shall issue an order authorizing the county
executive to establish the proposed precincts.
(b) The order issued by the election division under subsection (a)
must state that the election division finds that the proposed precincts
would comply with the standards set forth in this chapter. The election
division shall promptly provide a copy of the order to the county
executive.
(c) The county executive must give notice of the proposed order to
the voters of the county by one (1) publication under IC 5-3-1-4.
IC 5-3-1-1.5. The notice must state the following:
(1) The name of each existing precinct whose boundaries would
be changed by the adoption of the proposed order by the county.
(2) That any registered voter of the county may object to the
proposed order by filing a sworn statement with the election
division setting forth the voter's specific objections to the
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proposed order and requesting that a hearing be conducted by the
commission under IC 4-21.5.
(3) The mailing address of the election division.
(4) The deadline for filing the objection with the election division
under this section.
(d) Except as provided in subsection (g), an objection to a proposed
precinct establishment order must be filed not later than noon ten (10)
days after the publication of the notice by the county executive.
(e) If an objection is not filed with the election division by the date
and time specified under subsection (d), the election division shall
promptly notify the county executive. The county executive may
proceed immediately to adopt the proposed order.
(f) If an objection is filed with the election division by the date and
time specified under subsection (d), the election division shall
promptly notify the county executive. The county executive may not
adopt the proposed order until the commission conducts a hearing
under IC 4-21.5 and determines whether the proposed precincts would
comply with the standards set forth in this chapter.
(g) If the co-directors determine that the expiration of the ten (10)
day period described in subsection (d) will occur:
(1) after the next period specified under section 25 of this chapter
begins; or
(2) without sufficient time for a county or an objector to receive
notice of a hearing before the commission concerning an
objection before the next period specified under section 25 of this
chapter begins;
the co-directors may request a hearing before the commission under
section 21 of this chapter, notify the county executive of the request,
and publication under subsection (c) is not required.
SECTION 2. IC 3-11-13-22, AS AMENDED BY P.L.212-2025,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 22. (a) This section applies to:
(1) a ballot card voting system; and
(2) a voting system that includes features of a ballot card voting
system and a direct record electronic voting system.
(b) Not later than seventy-four (74) days before election day, for
each county planning to use automatic tabulating machines at the next
election, VSTOP shall provide each county election board with a
randomly sorted list of unique identification numbers for the inventory
of machines in the county maintained under IC 3-11-16-4. Starting at
the top of the list, the county election board shall select machines in the
list in the order listed so that:
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(1) if a machine to be selected in the list is not scheduled to be
used in the upcoming election, the selection process will move to
the next machine in the order listed;
(2) each selected machine is scheduled to be used in the
upcoming election; and
(3) the number of machines selected is not less than five percent
(5%) of the machines in the county scheduled by the county
election board to be used in the upcoming election.
(c) The county election board shall test the machines as described
in subsection (b) to ascertain that the machines will correctly do the
following:
(1) Count the votes cast for straight party tickets, for all
candidates (including write-in candidates), and on all public
questions.
(2) Retract an absentee ballot card of a voter who is later found
disqualified or whose ballot may not be counted, in accordance
with IC 3-11.5-4-6, before the voter's ballot is tabulated.
If an individual attending the public test requests that additional
automatic tabulating machines be tested, then the county election board
shall select and test additional machines from the list in the manner
described in subsection (b).
(d) If VSTOP does not provide the lists under subsection (b) not
later than sixty (60) days before the election, the county election board
shall establish and implement a procedure for random selection of not
less than five percent (5%) of the machines in the county to be used in
the upcoming election. The county election board shall then test the
machines selected as described in subsection (c).
(e) Not later than seven (7) days after conducting the test under
subsection (c), the county election board shall certify to the election
division that the test has been conducted in conformity with subsection
(c). The testing under subsection (c) must begin before absentee voting
begins in the office of the circuit court clerk under IC 3-11-10-26.
(f) Public notice of the time and place shall be given at least
forty-eight (48) hours before the test. The notice shall be published
once in accordance with IC 5-3-1-4. IC 5-3-1-1.5.
(g) If a county election board determines that:
(1) a ballot:
(A) must be reprinted or corrected as provided by
IC 3-11-2-16 because of the omission of a candidate, political
party, or public question from the ballot; or
(B) is an absentee ballot that a voter is entitled to recast under
IC 3-11.5-4-2 because the absentee ballot includes a candidate
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for election to office who:
(i) ceased to be a candidate; and
(ii) has been succeeded by a candidate selected under
IC 3-13-1 or IC 3-13-2; and
(2) ballots used in the test conducted under this section were not
reprinted or corrected to remove the omission of a candidate,
political party, or public question, or indicate the name of the
successor candidate;
the county election board shall conduct an additional public test
described in subsection (c) using the reprinted or corrected ballots.
Notice of the time and place of the additional test shall be given in
accordance with IC 5-14-1.5, but publication of the notice in
accordance with IC 5-3-1-4 IC 5-3-1-1.5 is not required.
(h) Notwithstanding IC 3-5-4-1.7, a county election board may send
a signed form from a public test to the election division by electronic
mail or fax.
SECTION 3. IC 3-11-13-41 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2027]: Sec. 41. Public notice of the
time and place of an audit under section 37 of this chapter shall be
given at least forty-eight (48) hours before the audit. The notice shall
be published once in accordance with IC 5-3-1-4. IC 5-3-1-1.5.
However, if publication in accordance with IC 5-3-1-4 IC 5-3-1-1.5
will not allow the county election board to certify the results of the
audit within ten (10) days after the election, notice shall be given by
posting it:
(1) at or near the county courthouse; and
(2) at the post office serving the county courthouse.
SECTION 4. IC 3-11-14.5-2, AS AMENDED BY P.L.71-2019,
SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 2. (a) Except as provided by subsection (b), public
notice of the time and place shall be given at least forty-eight (48)
hours before the test. The notice shall be published once in accordance
with IC 5-3-1-4. IC 5-3-1-1.5.
(b) This subsection applies to an additional public test conducted
under section 1(e) of this chapter. Notice of the time and place of the
additional test shall be given in accordance with IC 5-14-1.5, but
publication of the notice in accordance with IC 5-3-1-4 IC 5-3-1-1.5 is
not required.
SECTION 5. IC 3-12-3.5-8, AS AMENDED BY P.L.210-2018,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 8. (a) As used in this section, "audit threshold
number" refers to the following number:
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(1) One (1), if the total number of votes cast, as determined under
subsection (c), is not more than twenty (20).
(2) Two (2), if the total number of votes cast, as determined under
subsection (c), is:
(A) more than twenty (20); but
(B) not more than forty (40).
(3) Three (3), if the total number of votes cast, as determined
under subsection (c), is:
(A) more than forty (40); but
(B) not more than sixty (60).
(4) Four (4), if the total number of votes cast, as determined under
subsection (c), is:
(A) more than sixty (60); but
(B) not more than eighty (80).
(5) Five percent (5%) of the total number of votes cast, rounded
up to the nearest whole number, if the total number of votes cast,
as determined under subsection (c), is:
(A) more than eighty (80); but
(B) not more than five hundred (500).
(6) Twenty-five (25), if the total number of votes cast, as
determined under subsection (c) is more than five hundred (500).
(b) As used in this section, "judge" refers only to the judge who is
a member of a political party other than the political party of the
inspector.
(c) After each electronic voting system has been secured and the
paper vote total printouts obtained, the inspector and judge shall record
the total number of:
(1) votes cast on all electronic voting systems located within the
precinct; and
(2) voters who have received a ballot by signing in at the polls
according to the poll lists for each precinct;
to determine if the total number of votes cast on the electronic voting
systems differs from the number of voters shown to have received a
ballot at the polls according to the poll lists.
(d) The inspector and judge shall record the information set forth in
subsection (c) on a form prescribed under IC 3-5-4-8 and provided to
each precinct and vote center under IC 3-11-3-10 by the county
election board. The inspector and judge shall sign the form before
delivering the certificates in accordance with section 4 of this chapter
and return the form with the certificates.
(e) If the number of ballots received at the polls differs from the
total number of voters shown on the poll lists, the inspector and judge
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shall report this fact in writing to the county election board together
with the reasons for the discrepancy, if known, at the time that the
inspector and judge return the precinct poll list to the board on the form
required under subsection (d).
(f) The county election board shall compile the following
information into a single document listing for each precinct:
(1) The number of votes cast on the electronic voting systems in
the precinct, as shown on the form required for the precinct under
subsection (d).
(2) The number of voters who cast ballots on the electronic voting
systems as shown on the form required for the precinct under
subsection (d).
(3) The number of absentee ballots returned by voters of the
precinct.
(4) The number of absentee ballots described in subdivision (3)
that were counted.
(5) The difference between the number in subdivision (1) and the
number in subdivision (2).
Not later than noon on the second Friday following the election, the
county election board shall discuss and publish the document described
in this subsection at a public hearing and immediately make the
document available for inspection and copying by any voter of the
county.
(g) If the number determined under subsection (f)(5) is greater than
or equal to the audit threshold number, then the county election board
or the secretary of state may order an audit of all the votes cast in that
precinct under this section. Before ordering an audit, the county
election board shall recheck the computations reported by the inspector
and judge under subsection (c).
(h) The county election board shall confirm that the votes cast in an
election:
(1) for each candidate and each public question; and
(2) on a direct record electronic voting system in the precinct;
were correctly counted.
(i) The county election board shall conduct an audit by means of
tests and procedures that are approved by the commission and
independent of the provider of the direct record electronic voting
system being audited.
(j) The county election board shall certify the results of the audit not
later than noon thirty (30) days after the election. The certification must
be on the form prescribed by the election division. One (1) copy shall
be filed with the election returns, and one (1) copy must be delivered
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to the election division.
(k) Public notice of the time and place of an audit shall be given at
least forty-eight (48) hours before the audit. The notice shall be
published once in accordance with IC 5-3-1-4. IC 5-3-1-1.5. However,
if publication in accordance with IC 5-3-1-4 IC 5-3-1-1.5 will not
allow the county election board to certify the results of the audit within
thirty (30) days after the election, notice shall be given by posting at or
near the office of the county election board.
(l) Not later than ninety (90) days after each election in which an
audit is conducted under this section, the secretary of state shall publish
a report stating whether the results of each audit indicate that the
discrepancy was the result of human error, intentional violations of
election laws, unknown causes, or a combination of these factors.
SECTION 6. IC 4-23-7.3-5.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 5.5. As used in this chapter,
"governmental boundary units" includes:
(1) the geographic boundaries of a political subdivision;
(2) the geographic boundaries of a taxing district (as defined
by IC 6-1.1-1-20); and
(3) any geographic boundaries related to the operation of the
statewide 911 system under IC 36-8-16.7.
SECTION 7. IC 4-23-7.3-16, AS AMENDED BY P.L.134-2021,
SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 16. With money from the fund, the state GIS
officer, through the data center, the IGIC, and the other organizations,
shall do the following:
(1) Ensure that there are adequate depositories of all GIS data and
framework data obtained by a state agency.
(2) Acquire, publish, store, and distribute GIS data and
framework data through the computer gateway administered
under IC 4-13.1-2-2(a)(6) by the office of technology and through
the state data center. The state GIS officer may also provide
access through the IGIC and other entities as directed by the state
GIS officer.
(3) Integrate GIS data and framework data developed and
maintained by state agencies and political subdivisions into the
statewide base map. State agencies and political subdivisions
shall cooperate and participate as requested by the state GIS
officer to carry out this subdivision.
(4) Maintain a state historical archive of GIS data, framework
data, and electronic maps.
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(5) Except as otherwise provided in this chapter, provide public
access to GIS data and framework data in locations throughout
Indiana.
(6) Provide assistance to state agencies and political subdivisions
regarding public access to GIS data and framework data so that
information is available to the public while confidentiality is
protected for certain data from electronic maps.
(7) Develop and maintain statewide framework data layers
associated with a statewide base map or electronic map.
(8) Publish and distribute the state GIS data standards and the
statewide data integration plan adopted under section 14(2) of this
chapter.
(9) Subject to section 20 of this chapter, make GIS data,
framework data, and electronic maps available for use by the
Indiana Business Research Center.
SECTION 8. IC 4-23-7.3-20, AS ADDED BY P.L.198-2007,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 20. (a) Except as provided in subsections (b), (c),
and (d), a political subdivision maintains the right to control the sale,
exchange, and distribution of any GIS data or framework data provided
by the political subdivision to the state through a data exchange
agreement entered into under this chapter.
(b) A political subdivision may agree, through a provision in a data
exchange agreement, to allow the sale, exchange, or distribution of GIS
data or framework data provided to the state.
(c) Subsection (a) does not apply to data that is otherwise required
by state or federal law to be provided by a political subdivision to the
state or federal government.
(d) As a condition in a data exchange agreement for providing state
GIS data or framework data to a political subdivision, The state GIS
officer may require the political subdivision to follow the state GIS data
standards and the statewide data integration plan when the political
subdivision makes use of the GIS data or framework data as provided
by the state.
SECTION 9. IC 4-33-12-8, AS AMENDED BY P.L.144-2024,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 8. (a) This section applies to tax revenue
collected from a riverboat operating from Lake County.
(b) Except as provided by IC 6-3.1-20-7, the treasurer of state shall
quarterly pay the following amounts from the taxes collected during the
preceding calendar quarter from the riverboat operating from East
Chicago:
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(1) The lesser of:
(A) eight hundred seventy-five thousand dollars ($875,000);
or
(B) thirty-three and one-third percent (33 1/3%) of the
admissions tax and supplemental wagering tax collected by the
licensed owner during the preceding calendar quarter;
to the fiscal officer of the northwest Indiana regional development
authority to partially satisfy East Chicago's funding obligation to
the authority under IC 36-7.5-4-2.
(2) The lesser of:
(A) two hundred eighteen thousand seven hundred fifty dollars
($218,750); or
(B) thirty-three and one-third percent (33 1/3%) of the
admissions tax and supplemental wagering tax collected by the
licensed owner during the preceding calendar quarter;
to the fiscal officer of the northwest Indiana regional development
authority to partially satisfy Lake County's funding obligation to
the authority under IC 36-7.5-4-2.
(3) Except as provided in section 9(k) of this chapter, the
remainder, if any, of:
(A) thirty-three and one-third percent (33 1/3%) of the
admissions tax and supplemental wagering tax collected by the
licensed owner during the preceding calendar quarter; minus
(B) the amount distributed to the northwest Indiana regional
development authority under subdivision (1) for the calendar
quarter;
must be paid to the city of East Chicago.
(4) Except as provided in section 9(k) of this chapter, the
remainder, if any, of:
(A) thirty-three and one-third percent (33 1/3%) of the
admissions tax and supplemental wagering tax collected by the
licensed owner during the preceding calendar quarter; minus
(B) the amount distributed to the northwest Indiana regional
development authority under subdivision (2) for the calendar
quarter;
must be paid to Lake County.
(5) Except as provided in section 9(k) of this chapter, three
percent (3%) of the admissions tax and supplemental wagering
tax collected by the licensed owner during the preceding calendar
quarter must be paid to the county convention and visitors bureau
for Lake County.
(6) Except as provided in section 9(k) of this chapter, three
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hundred thirty-three thousandths percent (.333%) of the
admissions tax and supplemental wagering tax collected by the
licensed owner during the preceding calendar quarter must be
paid to the northern Indiana law enforcement training center.
(7) Except as provided in section 9(k) of this chapter, five percent
(5%) of the admissions tax and supplemental wagering tax
collected by the licensed owner during the preceding calendar
quarter must be paid to the state fair commission for use in any
activity that the commission is authorized to carry out under
IC 15-13-3.
(8) Except as provided in section 9(k) of this chapter, three and
thirty-three hundredths percent (3.33%) of the admissions tax and
supplemental wagering tax collected by the licensed owner during
the preceding calendar quarter must be paid to the division of
mental health and addiction.
(9) Twenty-one and six hundred sixty-seven thousandths percent
(21.667%) of the admissions tax and supplemental wagering tax
collected by the licensed owner during the preceding calendar
quarter must be paid to the state general fund.
(c) Except as provided by IC 6-3.1-20-7, the treasurer of state shall
quarterly pay the following amounts from the taxes collected during the
preceding calendar quarter from each the riverboat operating in Gary:
(1) The lesser of:
(A) four hundred thirty-seven thousand five hundred dollars
($437,500); eight hundred seventy-five thousand dollars
($875,000); or
(B) thirty-three and one-third percent (33 1/3%) of the
admissions tax and supplemental wagering tax collected by the
licensed owner during the preceding calendar quarter;
to the fiscal officer of the northwest Indiana regional development
authority to partially satisfy Gary's funding obligation to the
authority under IC 36-7.5-4-2.
(2) The lesser of:
(A) two hundred eighteen thousand seven hundred fifty dollars
($218,750); four hundred thirty-seven thousand five
hundred dollars ($437,500); or
(B) thirty-three and one-third percent (33 1/3%) of the
admissions tax and supplemental wagering tax collected by the
licensed owner during the preceding calendar quarter;
to the fiscal officer of the northwest Indiana regional development
authority to partially satisfy Lake County's funding obligation to
the authority under IC 36-7.5-4-2.
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(3) Except as provided in section 9(k) of this chapter, the
remainder, if any, of:
(A) thirty-three and one-third percent (33 1/3%) of the
admissions tax and supplemental wagering tax collected by the
licensed owner of a riverboat operating in Gary during the
preceding calendar quarter; minus
(B) the amount distributed to the northwest Indiana regional
development authority under subdivision (1) for the calendar
quarter;
must be paid to the city of Gary.
(4) Except as provided in section 9(k) of this chapter, the
remainder, if any, of:
(A) thirty-three and one-third percent (33 1/3%) of the
admissions tax and supplemental wagering tax collected by the
licensed owner of a riverboat operating in Gary during the
preceding calendar quarter; minus
(B) the amount distributed to the northwest Indiana regional
development authority under subdivision (2) for the calendar
quarter;
must be paid to Lake County.
(5) Except as provided in section 9(k) of this chapter, three
percent (3%) of the admissions tax and supplemental wagering
tax collected by the licensed owner of a riverboat operating in
Gary during the preceding calendar quarter must be paid to the
county convention and visitors bureau for Lake County.
(6) Except as provided in section 9(k) of this chapter, three
hundred thirty-three thousandths percent (.333%) of the
admissions tax and supplemental wagering tax collected by the
licensed owner of a riverboat operating in Gary during the
preceding calendar quarter must be paid to the northern Indiana
law enforcement training center.
(7) Except as provided in section 9(k) of this chapter, five percent
(5%) of the admissions tax and supplemental wagering tax
collected by the licensed owner of a riverboat operating in Gary
during the preceding calendar quarter must be paid to the state
fair commission for use in any activity that the commission is
authorized to carry out under IC 15-13-3.
(8) Except as provided in section 9(k) of this chapter, three and
thirty-three hundredths percent (3.33%) of the admissions tax and
supplemental wagering tax collected by the licensed owner of a
riverboat operating in Gary during the preceding calendar quarter
must be paid to the division of mental health and addiction.
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(9) Twenty-one and six hundred sixty-seven thousandths percent
(21.667%) of the admissions tax and supplemental wagering tax
collected by the licensed owner of a riverboat operating in Gary
during the preceding calendar quarter must be paid to the state
general fund.
(d) Except as provided by IC 6-3.1-20-7, the treasurer of state shall
quarterly pay the following amounts from the taxes collected during the
preceding calendar quarter from the riverboat operating in Hammond:
(1) The lesser of:
(A) eight hundred seventy-five thousand dollars ($875,000);
or
(B) thirty-three and one-third percent (33 1/3%) of the
admissions tax and supplemental wagering tax collected by the
licensed owner of a riverboat operating in Hammond during
the preceding calendar quarter;
to the fiscal officer of the northwest Indiana regional development
authority to partially satisfy Hammond's funding obligation to the
authority under IC 36-7.5-4-2.
(2) The lesser of:
(A) two hundred eighteen thousand seven hundred fifty dollars
($218,750); or
(B) thirty-three and one-third percent (33 1/3%) of the
admissions tax and supplemental wagering tax collected by the
licensed owner during the preceding calendar quarter;
to the fiscal officer of the northwest Indiana regional development
authority to partially satisfy Lake County's funding obligation to
the authority under IC 36-7.5-4-2.
(3) Except as provided in section 9(k) of this chapter, the
remainder, if any, of:
(A) thirty-three and one-third percent (33 1/3%) of the
admissions tax and supplemental wagering tax collected by the
licensed owner of the riverboat during the preceding calendar
quarter; minus
(B) the amount distributed to the northwest Indiana regional
development authority under subdivision (1) for the calendar
quarter;
must be paid to the city of Hammond.
(4) Except as provided in section 9(k) of this chapter, the
remainder, if any, of:
(A) thirty-three and one-third percent (33 1/3%) of the
admissions tax and supplemental wagering tax collected by the
licensed owner of the riverboat during the preceding calendar
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quarter; minus
(B) the amount distributed to the northwest Indiana regional
development authority under subdivision (2) for the calendar
quarter;
must be paid to Lake County.
(5) Except as provided in section 9(k) of this chapter, three
percent (3%) of the admissions tax and supplemental wagering
tax collected by the licensed owner of the riverboat during the
preceding calendar quarter must be paid to the county convention
and visitors bureau for Lake County.
(6) Except as provided in section 9(k) of this chapter, three
hundred thirty-three thousandths percent (.333%) of the
admissions tax and supplemental wagering tax collected by the
licensed owner of a riverboat during the preceding calendar
quarter must be paid to the northern Indiana law enforcement
training center.
(7) Except as provided in section 9(k) of this chapter, five percent
(5%) of the admissions tax and supplemental wagering tax
collected by the licensed owner of the riverboat during the
preceding calendar quarter must be paid to the state fair
commission for use in any activity that the commission is
authorized to carry out under IC 15-13-3.
(8) Except as provided in section 9(k) of this chapter, three and
thirty-three hundredths percent (3.33%) of the admissions tax and
supplemental wagering tax collected by the licensed owner for
each person admitted to the riverboat during the preceding
calendar quarter must be paid to the division of mental health and
addiction.
(9) Twenty-one and six hundred sixty-seven thousandths percent
(21.667%) of the admissions tax and supplemental wagering tax
collected by the licensed owner of the riverboat during the
preceding calendar quarter must be paid to the state general fund.
SECTION 10. IC 4-33-13-2.5 IS REPEALED [EFFECTIVE UPON
PASSAGE]. Sec. 2.5. (a) This section applies only to tax revenue:
(1) remitted by a licensed owner operating a riverboat sited at a
location approved under IC 4-33-6-4.5; and
(2) collected under this chapter after June 30, 2025.
(b) Notwithstanding section 3 of this chapter, the department shall
deposit from the tax revenue remitted under this chapter by a licensed
owner operating a riverboat sited at a location approved under
IC 4-33-6-4.5 amounts as follows:
(1) In each state fiscal year beginning after June 30, 2025, and
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ending before July 1, 2027, an amount equal to the amount
deposited under IC 36-7.5-6-5(a) by the city of Gary in the
blighted property demolition fund established by IC 36-7.5-6-4,
up to three million dollars ($3,000,000).
(2) In each state fiscal year beginning after June 30, 2025, and
ending before July 1, 2045, an amount equal to the amount
deposited under IC 36-7.5-7-5(c) by an entity in the Lake County
economic development and convention fund established by
IC 36-7.5-7-5, up to five million dollars ($5,000,000).
(3) In each state fiscal year beginning after June 30, 2025, and
ending before July 1, 2050, an amount equal to the amount
deposited under IC 36-7.5-8-4 by the city of Gary, or on behalf of
the city of Gary from any other source, in the Gary Metro Center
station revitalization fund established by IC 36-7.5-8-3, up to
three million dollars ($3,000,000).
Any amount of tax revenue remitted under this chapter by a licensed
owner operating a riverboat sited at a location approved under
IC 4-33-6-4.5 in a state fiscal year that exceeds the amount required for
the deposits in this subsection for the state fiscal year must be
deposited in the state gaming fund under section 3 of this chapter.
(c) Budget committee review is required before any money may be:
(1) matched under subsection (b); and
(2) released to any of the following funds:
(A) The blighted property demolition fund established by
IC 36-7.5-6-4.
(B) The Lake County economic development and convention
fund established by IC 36-7.5-7-5.
(C) The Gary Metro Center station revitalization fund
established by IC 36-7.5-8-3.
(d) The northwest Indiana regional development authority
established by IC 36-7.5-2-1 shall provide any information to the
department that the department determines is necessary for the
department to carry out this section.
(e) This section expires July 1, 2050.
SECTION 11. IC 4-33-13-3, AS AMENDED BY P.L.195-2023,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 3. Except as provided in section 2.5 of this
chapter, The department shall deposit tax revenue collected under this
chapter in the state gaming fund.
SECTION 12. IC 4-33-13-5, AS AMENDED BY P.L.9-2024,
SECTION 109, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 5. (a) This subsection does not
HEA 1210 — CC 1
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apply to tax revenue remitted by an operating agent operating a
riverboat in a historic hotel district. Excluding funds that are
appropriated in the biennial budget act from the state gaming fund to
the commission for purposes of administering this article, each month
the state comptroller shall distribute the tax revenue deposited in the
state gaming fund under this chapter to the following:
(1) An amount equal to the following shall be set aside for
revenue sharing under subsection (d):
(A) Before July 1, 2021, the first thirty-three million dollars
($33,000,000) of tax revenues collected under this chapter
shall be set aside for revenue sharing under subsection (d).
(B) After June 30, 2021, if the total adjusted gross receipts
received by licensees from gambling games authorized under
this article during the preceding state fiscal year is equal to or
greater than the total adjusted gross receipts received by
licensees from gambling games authorized under this article
during the state fiscal year ending June 30, 2020, the first
thirty-three million dollars ($33,000,000) of tax revenues
collected under this chapter shall be set aside for revenue
sharing under subsection (d).
(C) After June 30, 2021, if the total adjusted gross receipts
received by licensees from gambling games authorized under
this article during the preceding state fiscal year is less than
the total adjusted gross receipts received by licensees from
gambling games authorized under this article during the state
year ending June 30, 2020, an amount equal to the first
thirty-three million dollars ($33,000,000) of tax revenues
collected under this chapter multiplied by the result of:
(i) the total adjusted gross receipts received by licensees
from gambling games authorized under this article during
the preceding state fiscal year; divided by
(ii) the total adjusted gross receipts received by licensees
from gambling games authorized under this article during
the state fiscal year ending June 30, 2020;
shall be set aside for revenue sharing under subsection (d).
(2) Subject to subsection (c), twenty-five percent (25%) of the
remaining tax revenue remitted by each licensed owner shall be
paid according to the following:
(A) Except as provided in clause (C), to the city, (excluding,
after June 30, 2026, the city of Gary), in which the riverboat
is located or that is designated as the home dock of the
riverboat from which the tax revenue was collected, in the case
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of:
(i) a city described in IC 4-33-12-6(b)(1)(A);
(ii) a city located in Lake County, (excluding, after June
30, 2026, the city of Gary); or
(iii) Terre Haute. or
(B) To the county that is designated as the home dock of the
riverboat from which the tax revenue was collected, in the case
of a riverboat that is not located in a city described in clause
(A) or whose home dock is not in a city described in clause
(A).
(C) In the case of the twenty-five percent (25%) of the
remaining tax revenue remitted by the licensed owner of
the riverboat located in the city of Gary, in each state fiscal
year beginning after June 30, 2026, an amount equal to:
(i) forty percent (40%) of the revenue shall be deposited
in the Lake County economic development and
convention fund established by IC 36-7.5-7-5, until the
amount deposited under this item equals five million
dollars ($5,000,000) for a particular state fiscal year; and
(ii) sixty percent (60%) of the revenue shall be paid to
the city of Gary.
After the total amount of money deposited in the Lake
County economic development and convention fund
established by IC 36-7.5-7-5 for a particular state fiscal
year under item (i) equals five million dollars ($5,000,000),
one hundred percent (100%) of the remaining revenue
under this subdivision shall be paid to the city of Gary for
the rest of that state fiscal year. For purposes of this
subdivision, the state comptroller shall treat any amounts
deposited under this clause in the Lake County economic
development and convention fund established by
IC 36-7.5-7-5 as amounts constructively received by the
city of Gary and used to satisfy the city of Gary's funding
obligation to the northwest Indiana regional development
authority under IC 36-7.5-7-5.
(3) For state fiscal years ending before July 1, 2050, after
making the distributions under subdivisions (1) and (2), the
state comptroller shall make distributions from the remaining
tax revenue remitted by each licensed owner in the following
order of priority:
(A) In each state fiscal year beginning after June 30, 2025,
and ending with the earlier of:
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(i) the state fiscal year beginning July 1, 2044, and
ending June 30, 2045, however, if the required review by
the budget committee before the first distribution under
this clause does not occur until the state fiscal year
beginning July 1, 2026, and ending June 30, 2027, then
the state fiscal year beginning July 1, 2045, and ending
June 30, 2046, is the applicable final state fiscal year
under this item; or
(ii) the date on which the state budget director receives
a certificate from the public finance director appointed
under IC 5-1.2-3-6 that all indebtedness of the Indiana
finance authority and the northwest Indiana regional
development authority which is secured by the fund has
been repaid;
an amount equal to the amount deposited under
IC 36-7.5-7-5(c) by the approved entity in the Lake County
economic development and convention fund established by
IC 36-7.5-7-5, up to five million dollars ($5,000,000).
However, review by the budget committee is required
before the first distribution for the first state fiscal year
may be made under this clause.
(B) In each state fiscal year beginning after June 30, 2025,
and ending before July 1, 2027, and only after review by
the budget committee for each distribution, upon the state
budget director's receipt of a certificate from the fiscal
officer of the northwest Indiana regional development
authority of the amount deposited under IC 36-7.5-6-5(a)
by the city of Gary in the blighted property demolition
fund established by IC 36-7.5-6-4 during the state fiscal
year an amount equal to the amount deposited under
IC 36-7.5-6-5(a) by the city of Gary in the blighted
property demolition fund established by IC 36-7.5-6-4, up
to three million dollars ($3,000,000).
(C) In each state fiscal year beginning after June 30, 2025,
and ending before July 1, 2050, and only after:
(i) review by the budget committee before the first
distribution under this clause; and
(ii) for each subsequent distribution, upon the state
budget director's receipt of a certificate from the fiscal
officer of the northwest Indiana regional development
authority of the amount deposited under IC 36-7.5-8-4
by the city of Gary, or on behalf of the city of Gary from
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any other source, in the Gary Metro Center station
revitalization fund established by IC 36-7.5-8-3 during
the state fiscal year;
an amount equal to the amount deposited under
IC 36-7.5-8-4 by the city of Gary, or on behalf of the city of
Gary from any other source, in the Gary Metro Center
station revitalization fund established by IC 36-7.5-8-3, up
to three million dollars ($3,000,000).
The northwest Indiana regional development authority
established by IC 36-7.5-2-1 shall provide any information to
the department that the department determines is necessary
to carry out this subdivision. This subdivision expires July 1,
2050.
(3) (4) The remainder of the tax revenue remitted by each
licensed owner shall be paid to the state general fund. In each
state fiscal year, the state comptroller shall make the transfer
required by this subdivision on or before the fifteenth day of the
month based on revenue received during the preceding month for
deposit in the state gaming fund. Specifically, the state
comptroller may transfer the tax revenue received by the state in
a month to the state general fund in the immediately following
month according to this subdivision.
(b) This subsection applies only to tax revenue remitted by an
operating agent operating a riverboat in a historic hotel district after
June 30, 2019. Excluding funds that are appropriated in the biennial
budget act from the state gaming fund to the commission for purposes
of administering this article, each month the state comptroller shall
distribute the tax revenue remitted by the operating agent under this
chapter as follows:
(1) For state fiscal years beginning after June 30, 2019, but
ending before July 1, 2021, fifty-six and five-tenths percent
(56.5%) shall be paid to the state general fund.
(2) For state fiscal years beginning after June 30, 2021, fifty-six
and five-tenths percent (56.5%) shall be paid as follows:
(A) Sixty-six and four-tenths percent (66.4%) shall be paid to
the state general fund.
(B) Thirty-three and six-tenths percent (33.6%) shall be paid
to the West Baden Springs historic hotel preservation and
maintenance fund established by IC 36-7-11.5-11(b).
However, if:
(i) at any time the balance in that fund exceeds twenty-five
million dollars ($25,000,000); or
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(ii) in any part of a state fiscal year in which the operating
agent has received at least one hundred million dollars
($100,000,000) of adjusted gross receipts;
the amount described in this clause shall be paid to the state
general fund for the remainder of the state fiscal year.
(3) Forty-three and five-tenths percent (43.5%) shall be paid as
follows:
(A) Twenty-two and four-tenths percent (22.4%) shall be paid
as follows:
(i) Fifty percent (50%) to the fiscal officer of the town of
French Lick.
(ii) Fifty percent (50%) to the fiscal officer of the town of
West Baden Springs.
(B) Fourteen and eight-tenths percent (14.8%) shall be paid to
the county treasurer of Orange County for distribution among
the school corporations in the county. The governing bodies
for the school corporations in the county shall provide a
formula for the distribution of the money received under this
clause among the school corporations by joint resolution
adopted by the governing body of each of the school
corporations in the county. Money received by a school
corporation under this clause must be used to improve the
educational attainment of students enrolled in the school
corporation receiving the money. Not later than the first
regular meeting in the school year of a governing body of a
school corporation receiving a distribution under this clause,
the superintendent of the school corporation shall submit to
the governing body a report describing the purposes for which
the receipts under this clause were used and the improvements
in educational attainment realized through the use of the
money. The report is a public record.
(C) Thirteen and one-tenth percent (13.1%) shall be paid to the
county treasurer of Orange County.
(D) Five and three-tenths percent (5.3%) shall be distributed
quarterly to the county treasurer of Dubois County for
appropriation by the county fiscal body after receiving a
recommendation from the county executive. The county fiscal
body for the receiving county shall provide for the distribution
of the money received under this clause to one (1) or more
taxing units (as defined in IC 6-1.1-1-21) in the county under
a formula established by the county fiscal body after receiving
a recommendation from the county executive.
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(E) Five and three-tenths percent (5.3%) shall be distributed
quarterly to the county treasurer of Crawford County for
appropriation by the county fiscal body after receiving a
recommendation from the county executive. The county fiscal
body for the receiving county shall provide for the distribution
of the money received under this clause to one (1) or more
taxing units (as defined in IC 6-1.1-1-21) in the county under
a formula established by the county fiscal body after receiving
a recommendation from the county executive.
(F) Six and thirty-five hundredths percent (6.35%) shall be
paid to the fiscal officer of the town of Paoli.
(G) Six and thirty-five hundredths percent (6.35%) shall be
paid to the fiscal officer of the town of Orleans.
(H) Twenty-six and four-tenths percent (26.4%) shall be paid
to the Indiana economic development corporation established
by IC 5-28-3-1 for transfer as follows:
(i) Beginning after December 31, 2017, ten percent (10%)
of the amount transferred under this clause in each calendar
year shall be transferred to the South Central Indiana
Regional Economic Development Corporation or a
successor entity or partnership for economic development
for the purpose of recruiting new business to Orange County
as well as promoting the retention and expansion of existing
businesses in Orange County.
(ii) The remainder of the amount transferred under this
clause in each calendar year shall be transferred to Radius
Indiana or a successor regional entity or partnership for the
development and implementation of a regional economic
development strategy to assist the residents of Orange
County and the counties contiguous to Orange County in
improving their quality of life and to help promote
successful and sustainable communities.
To the extent possible, the Indiana economic development
corporation shall provide for the transfer under item (i) to be
made in four (4) equal installments. However, an amount
sufficient to meet current obligations to retire or refinance
indebtedness or leases for which tax revenues under this
section were pledged before January 1, 2015, by the Orange
County development commission shall be paid to the Orange
County development commission before making distributions
to the South Central Indiana Regional Economic Development
Corporation and Radius Indiana or their successor entities or
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partnerships. The amount paid to the Orange County
development commission shall proportionally reduce the
amount payable to the South Central Indiana Regional
Economic Development Corporation and Radius Indiana or
their successor entities or partnerships.
(c) This subsection does not apply to tax revenue remitted by an
inland casino operating in Vigo County. For each city and county
receiving money under subsection (a)(2), the state comptroller shall
determine the total amount of money paid by the state comptroller to
the city or county during the state fiscal year 2002. The amount
determined is the base year revenue for the city or county. The state
comptroller shall certify the base year revenue determined under this
subsection to the city or county. The total amount of money distributed
to a city or county under this section during a state fiscal year may not
exceed the entity's base year revenue. For each state fiscal year, the
state comptroller shall pay that part of the riverboat wagering taxes
that:
(1) exceeds a particular city's or county's base year revenue; and
(2) would otherwise be due to the city or county under this
section;
to the state general fund instead of to the city or county.
(d) Except as provided in subsections (k) and (l), before August 15
of each year, the state comptroller shall distribute the wagering taxes
set aside for revenue sharing under subsection (a)(1) to the county
treasurer of each county that does not have a riverboat according to the
ratio that the county's population bears to the total population of the
counties that do not have a riverboat. Except as provided in subsection
(g), the county auditor shall distribute the money received by the
county under this subsection as follows:
(1) To each city located in the county according to the ratio the
city's population bears to the total population of the county.
(2) To each town located in the county according to the ratio the
town's population bears to the total population of the county.
(3) After the distributions required in subdivisions (1) and (2) are
made, the remainder shall be retained by the county.
(e) Money received by a city, town, or county under subsection (d)
or (g) may be used for any of the following purposes:
(1) To reduce the property tax levy of the city, town, or county for
a particular year (a property tax reduction under this subdivision
does not reduce the maximum levy of the city, town, or county
under IC 6-1.1-18.5).
(2) For deposit in a special fund or allocation fund created under
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IC 8-22-3.5, IC 36-7-14, IC 36-7-14.5, IC 36-7-15.1, and
IC 36-7-30 to provide funding for debt repayment.
(3) To fund sewer and water projects, including storm water
management projects.
(4) For police and fire pensions.
(5) To carry out any governmental purpose for which the money
is appropriated by the fiscal body of the city, town, or county.
Money used under this subdivision does not reduce the property
tax levy of the city, town, or county for a particular year or reduce
the maximum levy of the city, town, or county under
IC 6-1.1-18.5.
(f) This subsection does not apply to an inland casino operating in
Vigo County. Before July 15 of each year, the state comptroller shall
determine the total amount of money distributed to an entity under
IC 4-33-12-6 or IC 4-33-12-8 during the preceding state fiscal year. If
the state comptroller determines that the total amount of money
distributed to an entity under IC 4-33-12-6 or IC 4-33-12-8 during the
preceding state fiscal year was less than the entity's base year revenue
(as determined under IC 4-33-12-9), the state comptroller shall make
a supplemental distribution to the entity from taxes collected under this
chapter and deposited into the state general fund. Except as provided
in subsection (h), the amount of an entity's supplemental distribution
is equal to:
(1) the entity's base year revenue (as determined under
IC 4-33-12-9); minus
(2) the sum of:
(A) the total amount of money distributed to the entity and
constructively received by the entity during the preceding state
fiscal year under IC 4-33-12-6 or IC 4-33-12-8; plus
(B) the amount of any admissions taxes deducted under
IC 6-3.1-20-7.
(g) This subsection applies only to Marion County. The county
auditor shall distribute the money received by the county under
subsection (d) as follows:
(1) To each city, other than the consolidated city, located in the
county according to the ratio that the city's population bears to the
total population of the county.
(2) To each town located in the county according to the ratio that
the town's population bears to the total population of the county.
(3) After the distributions required in subdivisions (1) and (2) are
made, the remainder shall be paid in equal amounts to the
consolidated city and the county.
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(h) This subsection does not apply to an inland casino operating in
Vigo County. This subsection applies to a supplemental distribution
made after June 30, 2017. The maximum amount of money that may be
distributed under subsection (f) in a state fiscal year is equal to the
following:
(1) Before July 1, 2021, forty-eight million dollars ($48,000,000).
(2) After June 30, 2021, if the total adjusted gross receipts
received by licensees from gambling games authorized under this
article during the preceding state fiscal year is equal to or greater
than the total adjusted gross receipts received by licensees from
gambling games authorized under this article during the state
fiscal year ending June 30, 2020, the maximum amount is
forty-eight million dollars ($48,000,000).
(3) After June 30, 2021, if the total adjusted gross receipts
received by licensees from gambling games authorized under this
article during the preceding state fiscal year is less than the total
adjusted gross receipts received by licensees from gambling
games authorized under this article during the state fiscal year
ending June 30, 2020, the maximum amount is equal to the result
of:
(A) forty-eight million dollars ($48,000,000); multiplied by
(B) the result of:
(i) the total adjusted gross receipts received by licensees
from gambling games authorized under this article during
the preceding state fiscal year; divided by
(ii) the total adjusted gross receipts received by licensees
from gambling games authorized under this article during
the state fiscal year ending June 30, 2020.
If the total amount determined under subsection (f) exceeds the
maximum amount determined under this subsection, the amount
distributed to an entity under subsection (f) must be reduced according
to the ratio that the amount distributed to the entity under IC 4-33-12-6
or IC 4-33-12-8 bears to the total amount distributed under
IC 4-33-12-6 and IC 4-33-12-8 to all entities receiving a supplemental
distribution.
(i) This subsection applies to a supplemental distribution, if any,
payable to Lake County, Hammond, Gary, or East Chicago under
subsections (f) and (h). Beginning in July 2016, the state comptroller
shall, after making any deductions from the supplemental distribution
required by IC 6-3.1-20-7, deduct from the remainder of the
supplemental distribution otherwise payable to the unit under this
section the lesser of:
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(1) the remaining amount of the supplemental distribution; or
(2) the difference, if any, between:
(A) three million five hundred thousand dollars ($3,500,000);
minus
(B) the amount of admissions taxes constructively received by
the unit in the previous state fiscal year.
The state comptroller shall distribute the amounts deducted under this
subsection to the northwest Indiana redevelopment regional
development authority established under IC 36-7.5-2-1 for deposit in
the development authority revenue fund established under
IC 36-7.5-4-1.
(j) Money distributed to a political subdivision under subsection (b):
(1) must be paid to the fiscal officer of the political subdivision
and may be deposited in the political subdivision's general fund
(in the case of a school corporation, the school corporation may
deposit the money into either the education fund (IC 20-40-2) or
the operations fund (IC 20-40-18)) or riverboat fund established
under IC 36-1-8-9, or both;
(2) may not be used to reduce the maximum levy under
IC 6-1.1-18.5 of a county, city, or town or the maximum tax rate
of a school corporation, but, except as provided in subsection
(b)(3)(B), may be used at the discretion of the political
subdivision to reduce the property tax levy of the county, city, or
town for a particular year;
(3) except as provided in subsection (b)(3)(B), may be used for
any legal or corporate purpose of the political subdivision,
including the pledge of money to bonds, leases, or other
obligations under IC 5-1-14-4; and
(4) is considered miscellaneous revenue.
Money distributed under subsection (b)(3)(B) must be used for the
purposes specified in subsection (b)(3)(B).
(k) After June 30, 2020, the amount of wagering taxes that would
otherwise be distributed to South Bend under subsection (d) shall be
deposited as being received from all riverboats whose supplemental
wagering tax, as calculated under IC 4-33-12-1.5(b), is over three and
five-tenths percent (3.5%). The amount deposited under this
subsection, in each riverboat's account, is proportionate to the
supplemental wagering tax received from that riverboat under
IC 4-33-12-1.5 in the month of July. The amount deposited under this
subsection must be distributed in the same manner as the supplemental
wagering tax collected under IC 4-33-12-1.5. This subsection expires
June 30, 2021.
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(l) After June 30, 2021, the amount of wagering taxes that would
otherwise be distributed to South Bend under subsection (d) shall be
withheld and deposited in the state general fund.
SECTION 13. IC 4-33-13-5.4, AS ADDED BY P.L.169-2025,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 5.4. (a) This section applies to each state
fiscal year beginning after June 30, 2026.
(b) As used in this section, "qualified city" refers to East Chicago,
Hammond, or Michigan City.
(c) As used in this section, "supplemental payment statute" refers to
IC 4-33-13-5.3, as in effect on January 1, 2025.
(d) Subject to subsections (i) and (j), a qualified city is entitled to
supplemental payments under this section for amounts not paid in state
fiscal years 2022, 2023, 2024, and 2025 under the supplemental
payment statute. The state comptroller shall determine the total amount
of supplemental payments to which each qualified city is entitled as
follows:
(1) In the case of East Chicago, an amount equal to the sum of the
following:
(A) Six million four hundred seventy-four thousand two
hundred seventy-four dollars ($6,474,274).
(B) The amount, if any, for state fiscal year 2025 for which
East Chicago is eligible under the supplemental payment
statute.
(2) In the case of Michigan City, an amount equal to the sum of
the following:
(A) Five million seven hundred fifty-two thousand one
hundred twenty-five dollars ($5,752,125).
(B) The amount, if any, for state fiscal year 2025 for which
Michigan City is eligible under the supplemental payment
statute.
(3) In the case of Hammond, an amount equal to the amount, if
any, for state fiscal year 2025 for which Hammond is eligible
under the supplemental payment statute.
(e) Subject to subsections (j) and (l), each month, after deducting
the amount required under section 5(a)(2)(C)(i) of this chapter, the
state comptroller shall deduct an amount otherwise payable to Gary
under section 5(a)(2) 5(a)(2)(C) of this chapter, if any, for the purpose
of this chapter, not to exceed a total of two million dollars ($2,000,000)
for the state fiscal year.
(f) Subject to subsections (i), (j), and (l), the state comptroller shall
annually distribute supplemental payments to each qualified city, on a
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monthly basis, based on:
(1) the amount deducted under subsection (e) in the preceding
month; and
(2) one-twelfth (1/12) of the amount appropriated from the state
general fund under subsection (k).
(g) Money for the supplemental payments is sourced from:
(1) the total amount deducted under subsection (e) in the state
fiscal year; plus
(2) money appropriated by the general assembly for the state
fiscal year for the purpose of making supplemental payments
under this section.
(h) The state comptroller shall make a supplemental payment in
each state fiscal year to each qualified city in an amount determined
under the last STEP of the following formula:
STEP ONE: Divide the:
(A) total amount determined under subsection (d) for the
qualified city; by
(B) aggregate amount of supplemental payments for all
qualified cities determined under subsection (d).
STEP TWO: Multiply the:
(A) STEP ONE result; by
(B) amount of money to be used for supplemental payments in
the state fiscal year under subsections (f) and (g).
(i) A qualified city may not receive a supplemental payment in
excess of the amount determined under subsection (d) for the qualified
city.
(j) The total amount of supplemental payments made to qualified
cities in all state fiscal years may not exceed the aggregate amount of
supplemental payments determined under subsection (d).
(k) There is appropriated from the state general fund to the gaming
fund two million dollars ($2,000,000) in each state fiscal year
beginning after June 30, 2026, which may only be used to make
supplemental payments. Any amount not needed to make a
supplemental payment in a state fiscal year reverts to the state general
fund at the close of the state fiscal year and may not be used for any
other purpose.
(l) After the total amount of all supplemental payments to qualified
cities determined in subsection (d) have been made under this chapter,
the state comptroller shall continue, each month, after deducting the
amount required under section 5(a)(2)(C)(i) of this chapter, to
deduct an amount otherwise payable to Gary under section 5(a)(2)
5(a)(2)(C) of this chapter as set forth in subsection (e) not to exceed a
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total of two million dollars ($2,000,000) for the state fiscal year for the
purpose of repaying to the state the total amounts appropriated from the
state general fund under subsection (k) and paid to qualified cites as
supplemental payments under this chapter. The state comptroller shall
cease the deductions under this subsection on the date that the total
amounts appropriated from the state general fund under subsection (k)
and paid to qualified cites have been repaid.
(m) This section expires July 1, 2039.
SECTION 14. IC 5-1-5-2, AS AMENDED BY P.L.229-2011,
SECTION 62, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 2. (a) The governing body of any issuing body
may by ordinance provide for the issuance of bonds to refund
outstanding bonds issued at any time by such issuing body or its
predecessor, and to pay redemption premiums and costs of refunding
to effect a saving to the issuing body. Issuance of bonds to refund
outstanding bonds may also be made in order to pay or discharge all or
any part of such outstanding series or issue of bond, including any
interest thereon, in arrears or about to become due and for which
sufficient funds are not available or to modify restrictive covenants in
outstanding bonds impeding additional financing. To determine
whether or not a savings will be effected, consideration shall be given
to the estimated or known interest payable to the fixed maturities of the
refunding bonds, the interest payable on the bonds to be refunded, the
costs of issuance of the refunding bonds, including any sale discount,
the redemption premiums, if any, to be paid, and the probable earned
income from the investment of the refunding bond proceeds pending
redemption of the bonds to be refunded.
(b) The provisions of subsection (a) requiring a savings to be
effected do not apply to:
(1) the issuance of bonds to refund previously issued refunding
bonds, if the statute under which the refunding bonds are issued
expressly exempts such an issue from this savings requirement;
or
(2) the issuance of refunding bonds by a school corporation that
is an eligible school corporation under section 2.5 or 2.6 of this
chapter.
SECTION 15. IC 5-1-5-2.6 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 2.6. (a) This section applies as an
alternative to section 2.5 of this chapter.
(b) As used in this section, "eligible school corporation" means
a school corporation (as defined in IC 36-1-2-17) that satisfies all
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the conditions required by this section.
(c) As used in this section, "increment" means the annual
difference between:
(1) the annual debt service payment for the bonds proposed to
be retired or refunded; and
(2) the annual debt service payment for the proposed
refunding bonds;
for each year that the bonds that are being retired or refunded
would have been outstanding.
(d) In order for a school corporation to be an eligible school
corporation under this section, the school corporation must
determine that:
(1) the percentage computed under subsection (e) for the
school corporation is at least sixty percent (60%); and
(2) application of this section will not reduce revenue to other
local units in the same county;
regarding the year for which the latest certified levies have been
determined.
(e) A school corporation shall compute its percentage as follows:
(1) Compute the amount of credits granted under
IC 6-1.1-20.6 against the school corporation's levy for the
school corporation's operations fund (IC 20-46-8).
(2) Compute the school corporation's levy for the school
corporation's operations fund.
(3) Divide the amount computed under subdivision (1) by the
amount computed under subdivision (2) and express it as a
percentage.
(f) A school corporation that desires to be an eligible school
corporation under this section must submit a written request for
a certification by the department of local government finance that
the computation of the school corporation's percentage computed
under subsection (d)(1) and school corporation's determination
under subsection (d)(2) are correct. The department of local
government finance shall, not later than thirty (30) business days
after the date the department receives the school corporation's
request, make its determination and, if correct, certify that the
percentage computed under subsection (d)(1) and the
determination under subsection (d)(2) for the school corporation
meets the definition of an eligible school corporation.
(g) A school corporation that desires to be an eligible school
corporation under this section must, and notwithstanding any
other law, adopt a resolution that sets forth the following:
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(1) The determinations made under subsection (d)(1) and
(d)(2), including the department of local government finance's
certification of the percentage computed under subsection (e)
and determination under subsection (d)(2).
(2) A determination providing for the:
(A) issuance of bonds to refund bonds or leases issued by
or on behalf of the school corporation before July 1, 2025;
and
(B) payment of redemption premiums and the costs of the
refunding.
(3) With respect to the refunding bonds, the following:
(A) The maximum principal amount.
(B) The maximum interest rate.
(C) The annual lease or debt service payment.
(D) The final maturity date.
(E) The estimated amount of the increment that will occur
for each year that the bonds that are being retired or
refunded by the issuance of refunding bonds would have
been outstanding.
(F) A finding that the annual debt service or lease payment
on the refunding bonds will not increase the annual debt
service or lease payment above the annual debt service or
lease payment approved by the school corporation for the
original project.
If the governing body adopts a resolution under this section, the
governing body must publish notice of the adoption of the
resolution as required by IC 5-3-1.
(h) An eligible school corporation may issue refunding bonds as
permitted by this section. In addition, an eligible school
corporation may extend the repayment period beyond the
repayment period for the bonds that are being retired or refunded
by the issuance of refunding bonds. However, the repayment
period may be extended only once for a particular bond, and the
extension may not exceed ten (10) years after the latest maturity
date for any of the bonds being retired or refunded by the eligible
school corporation under this section.
SECTION 16. IC 5-1-5-18, AS AMENDED BY P.L.229-2011,
SECTION 65, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 18. (a) This section applies to bonds that are:
(1) issued after June 30, 2008, by a local issuing body; and
(2) payable from ad valorem property taxes, special benefit taxes
on property, or tax increment revenues derived from property
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taxes;
including bonds that are issued under a statute that permits the bonds
to be issued without complying with any other law or otherwise
expressly exempts the bonds from the requirements of this section.
(b) Savings (as computed under section 2 of this chapter) that
accrue from the issuance of bonds to retire or otherwise refund other
bonds may be used only for the following purposes:
(1) To maintain a debt service reserve fund for the refunding
bonds at the level required under the terms of the refunding
bonds, if the local issuing body adopts an ordinance, resolution,
or order authorizing that use of the proceeds or earnings.
(2) To pay the principal or interest, or both, on:
(A) the refunding bonds; or
(B) other bonds, if the issuing body approves an ordinance
authorizing the use of the savings to pay principal or interest
on other bonds.
(3) To reduce the rate or amount of ad valorem property taxes,
special benefit taxes on property, or tax increment revenues
imposed by or allocated to the local issuing body.
(c) An increment as computed under section 2.5 or 2.6 of this
chapter that occurs from the issuance of bonds by an eligible school
corporation to retire or otherwise refund other bonds as provided in
section 2.5 or 2.6 of this chapter may be used only to make transfers
permitted by IC 20-46-7-15 for the eligible school corporation.
SECTION 17. IC 5-1-11-2, AS AMENDED BY P.L.125-2018,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 2. (a) Notice of sale of bonds sold at public sale
under section 1 of this chapter shall be published in accordance with
the provisions of this chapter and either IC 5-3-1 or subsection (b).
(b) If a political subdivision or body referred to in section 1 of this
chapter determines to sell bonds under this subsection, notice of intent
to sell such bonds shall be published once each week for two (2) weeks
in accordance with IC 5-3-1-4 IC 5-3-1-1.5 and in a newspaper of
general circulation published in the state capital. The notice must state
that any person interested in submitting a bid for the bonds may furnish
in writing to the official of the political subdivision or body responsible
for their sale, at the address set forth in the notice, the person's name,
address, and telephone number. The person may also furnish a telex
number. The notice of intent to sell bonds must state:
(1) the amount of the bonds to be offered;
(2) the denominations;
(3) the dates of maturity;
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(4) the maximum rate or rates of interest;
(5) the place of sale; and
(6) the time within which the name, address, and telephone
number must be furnished, which must not be less than seven (7)
days after the last publication of the notice of intent to sell.
The official of the political subdivision or body responsible for the
bond sale shall notify each person so registered of the date and time
bids will be received not less than twenty-four (24) hours before the
date and time of sale. The notification shall be made by telephone at
the number furnished by the person, and also by telex if the person
furnishes a telex number. Bids may not be received more than ninety
(90) days after the first publication of the notice of intent to sell.
(c) This chapter does not prevent the sale of bonds under the
provisions of any statute inconsistent with this chapter so long as the
procedures required for the sale in that statute are complied with, but
if notice of that sale must be published, the notice shall be published in
accordance with IC 5-3-1.
SECTION 18. IC 5-1-14-10, AS AMENDED BY P.L.236-2023,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 10. (a) If an issuer has issued obligations
under a statute that establishes a maximum term or repayment period
for the obligations, notwithstanding that statute, the issuer may
continue to make payments of principal, interest, or both, on the
obligations after the expiration of the term or period if principal or
interest owed to owners of the obligations remains unpaid.
(b) This section does not authorize the use of revenues or funds to
make payments of principal and interest other than those revenues or
funds that were pledged for the payments before the expiration of the
term or period.
(c) Except as otherwise provided by this section, IC 5-1-5-2.5,
IC 5-1-5-2.6, IC 5-1-8-1(b), IC 16-22-8-43, IC 36-7-12-27,
IC 36-7-14-25.1, or IC 36-9-13-30 (but only with respect to any bonds
issued under IC 36-9-13-30 that are secured by a lease entered into by
a political subdivision organized and existing under IC 16-22-8), the
maximum term or repayment period for obligations issued after June
30, 2008, that are wholly or partially payable from ad valorem property
taxes, special benefit taxes on property, or tax increment revenues
derived from property taxes may not exceed:
(1) the maximum applicable period under federal law, for
obligations that are issued to evidence loans made or guaranteed
by the federal government or a federal agency;
(2) twenty-five (25) years, for obligations that are wholly or
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partially payable from tax increment revenues derived from
property taxes; or
(3) twenty (20) years, for obligations that are not described in
subdivision (1) or (2), and are wholly or partially payable from ad
valorem property taxes or special benefit taxes on property.
SECTION 19. IC 5-1-14-19 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 19. (a) This section applies to a contract
between a municipal entity and a municipal advisor in effect on or
after January 1, 2026.
(b) As used in this section, "municipal advisor" means a person
who is not an employee of the municipal entity who:
(1) provides advice to or on behalf of a municipal entity or
obligated person concerning financial issues, including advice
related to:
(A) municipal financial products or the issuance of
municipal securities, including with respect to structure,
timing, and terms; or
(B) budgeting and long term financial planning; or
(2) undertakes a solicitation of a municipal entity or obligated
person.
The term includes financial advisors, guaranteed investment
contract brokers, third party marketers, placement agents,
solicitors, finders, and swap advisers who engage in municipal
advisory activities.
(c) As used in this section, "municipal entity" refers to:
(1) a county;
(2) a township;
(3) a city;
(4) a town;
(5) a school corporation;
(6) a special taxing district;
(7) an instrumentality of an entity listed in subdivisions (1)
through (6); and
(8) any other entity required to sell bonds pursuant to
IC 5-1-11.
(d) As used in this section, "municipal financial products"
means municipal derivatives, guaranteed investment contracts, and
investment strategies.
(e) As used in this section, "obligated person" means any person
who is committed under a contract or another arrangement to
support the payment of all or part of the obligations on municipal
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securities to be sold in an offering.
(f) As used in this section, "solicitation of a municipal entity or
obligated person" has the meaning set forth in 15 U.S.C.
78o-4(e)(9).
(g) If a municipal entity hires or retains a municipal advisor, the
municipal entity shall publish a contract entered into with a
municipal advisor in a prominent location on the municipal entity's
website and upload the contract to the department of local
government finance's computer gateway. A municipal entity shall
publish a contract described in this subsection:
(1) in the case of a contract:
(A) entered into before January 1, 2026, and still in effect
on January 1, 2026; or
(B) entered into after December 31, 2025, and before
March 1, 2026;
not later than April 15, 2026; and
(2) in the case of a contract entered into on or after March 1,
2026, not later than thirty (30) days after the contract is
executed.
SECTION 20. IC 5-1-17.5-16, AS AMENDED BY P.L.2-2014,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 16. (a) The board of directors of the commission
is composed of the following five (5) directors, who serve at the
pleasure of the governor and must be residents of Indiana:
(1) The budget director, or the budget director's designee, who
shall serve as chair of the commission.
(2) Four (4) directors appointed by the governor. The president
pro tempore of the senate and the speaker of the house of
representatives may each make one (1) recommendation to the
governor concerning the appointment of a director under this
subdivision.
(b) The commission shall be governed by the board. The directors
may not be elected public officials of the state or any political
subdivision. Except for the budget director, the directors first appointed
continue in office for terms expiring on July 1, 2014, July 1, 2015, July
1, 2016, and July 1, 2017, and until their respective successors are duly
appointed and qualified.
(c) Except for the budget director, the term of any director first
appointed must be designated by the governor. If a vacancy occurs on
the board, the governor shall fill the vacancy by appointing a new
director. The successor of each such director is appointed for a term of
four (4) years, except that any person appointed to fill a vacancy is
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appointed to serve only for the unexpired term and until a successor is
duly appointed and qualified. A director is eligible for reappointment.
(d) The directors shall hold an initial organizational meeting within
thirty (30) days after the board's appointment and after public notice
given by the budget director in accordance with IC 5-3-1-4.
IC 5-3-1-1.5. As soon as practicable after January 15 of each year, the
board shall hold its annual organizational meeting. The board shall
elect one (1) of the directors as vice chair and another director as
secretary-treasurer to perform the duties of those offices. These officers
serve from the date of their election and until their successors are
elected and qualified. Special meetings may be called by the chair or
any two (2) directors of the board.
(e) Three (3) directors constitute a quorum of the board, and the
affirmative vote of at least three (3) directors is necessary for any
official action taken by the board. A vacancy in the membership of the
board does not impair the rights of a quorum to exercise all the rights
and perform all the duties of the board.
(f) Except for the budget director, the directors are entitled to
reimbursement for traveling expenses and other expenses actually
incurred in connection with their duties as provided by law. Directors
are not entitled to the salary per diem provided by IC 4-10-11-2.1(b) or
any other compensation while performing their duties.
(g) All expenses incurred in carrying out the provisions of this
chapter shall be payable solely from funds provided under this chapter
or from the proceeds of bonds issued by the authority under this
chapter, and no liability or obligation shall be incurred by the
commission or the authority under this chapter beyond the extent to
which money shall have been provided under the authority of this
chapter.
(h) The board:
(1) is responsible for implementing the powers and duties of the
commission under this chapter;
(2) may adopt bylaws for the regulation of the affairs of the board,
the conduct of the business of the commission, and the
safeguarding of the funds and property entrusted to the
commission; and
(3) shall, without complying with IC 4-22-2, adopt the code of
ethics specified in executive order 05-12 for its members and
employees.
SECTION 21. IC 5-3-1-1, AS AMENDED BY P.L.84-2023,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 1. (a) The cost of all public notice advertising
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which any elected or appointed public official or governmental agency
is required by law to have published, or orders published, for which the
compensation to the newspapers, locality newspapers, or qualified
publications publishing such advertising is drawn from and is the
ultimate obligation of the public treasury of the governmental unit
concerned with the advertising shall be charged to and collected from
the proper fund of the public treasury and paid over to the newspapers,
locality newspapers, or qualified publications publishing such
advertising, after proof of publication and claim for payment has been
filed.
(b) The basic charges for publishing public notice advertising shall
be by the line and shall be computed based on a square of two hundred
and fifty (250) ems at the following rates:
(1) Before January 1, 1996, three dollars and thirty cents ($3.30)
per square for the first insertion in newspapers or qualified
publications plus one dollar and sixty-five cents ($1.65) per
square for each additional insertion in newspapers, or qualified
publications.
(2) After December 31, 1995, and before December 31, 2005, a
newspaper or qualified publication may, effective January 1 of
any year, increase the basic charges by five percent (5%) more
than the basic charges that were in effect during the previous year.
However, the basic charges for the first insertion of a public
notice in a newspaper, or qualified publication may not exceed the
lowest classified advertising rate charged to advertisers by the
newspaper, or qualified publication for comparable use of the
same amount of space for other purposes.
(3) After December 31, 2009, and before January 1, 2017, a
newspaper or qualified publication may, effective January 1 of
any year, increase the basic charges by not more than two and
three-quarters percent (2.75%) more than the basic charges that
were in effect during the previous year. However, the basic
charges for the first insertion of a public notice in a newspaper or
qualified publication may not exceed the lowest classified
advertising rate charged to advertisers by the newspaper or
qualified publication for comparable use of the same amount of
space for other purposes and must include all multiple insertion
discounts extended to the newspaper's other advertisers.
(4) After December 31, 2016, a newspaper, locality newspaper,
or qualified publication may, effective January 1 of any year,
increase the basic charges by not more than two and
three-quarters percent (2.75%) more than the basic charges that
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were in effect during the previous year. However, the basic
charges for the first insertion of a public notice in a newspaper,
locality newspaper, or qualified publication may not exceed the
lowest classified advertising rate charged to advertisers by the
newspaper, locality newspaper, or qualified publication for
comparable use of the same amount of space for other purposes
and must include all multiple insertion discounts extended to the
newspaper's, locality newspaper's, or qualified publication's other
advertisers.
An additional charge of fifty percent (50%) shall be allowed for the
publication of all public notice advertising containing rule or tabular
work.
(c) All public notice advertisements shall be set in solid type that is
at least 7 point type, without any leads or other devices for increasing
space. All public notice advertisements shall be headed by not more
than two (2) lines, neither of which shall total more than four (4) solid
lines of the type in which the body of the advertisement is set. Public
notice advertisements may be submitted by an appointed or elected
official or a governmental agency to a newspaper, locality newspaper,
or qualified publication in electronic form, if the newspaper, locality
newspaper, or qualified publication is equipped to accept information
in compatible electronic form.
(d) Each newspaper, locality newspaper, or qualified publication
publishing public notice advertising shall submit proof of publication
and claim for payment in duplicate on each public notice advertisement
published. For each additional proof of publication required by a public
official, a charge of one dollar ($1) per copy shall be allowed each
newspaper, locality newspaper, or qualified publication furnishing
proof of publication.
(e) The circulation of a newspaper, locality newspaper, or qualified
publication is determined as follows:
(1) For a newspaper, by the circulation stated on line 10.C. (Total
Paid and/or Requested Circulation of Single Issue Published
Nearest to Filing Date) of the Statement of Ownership,
Management and Circulation required by 39 U.S.C. 3685 that was
filed during the previous year.
(2) For a locality newspaper, by a verified affidavit filed with each
agency, department, or office of the political subdivision that has
public notices the locality newspaper wants to publish. The
affidavit must:
(A) be filed with the agency, department, or office of the
political subdivision before January 1 of each year; and
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(B) attest to the circulation of the locality newspaper for the
issue published nearest to October 1 of the previous year, as
determined by an independent audit of the locality newspaper
performed for the previous year.
(3) For a qualified publication, by a verified affidavit filed with
each governmental agency that has public notices the qualified
publication wants to publish. The affidavit must:
(A) be filed with the governmental agency before January 1 of
each year; and
(B) attest to the circulation of the qualified publication for the
issue published nearest to October 1 of the previous year.
(f) This subsection applies to a towing service acting as an agent of
a governmental agency to facilitate the removal of abandoned vehicles
or parts. A towing service shall be charged the basic rates charged for
all public notice advertising in subsection (b)(4) for providing the
notice required under IC 9-22-1-23.
(g) The basic charge for publication of a notice in an electronic
edition of a newspaper or locality newspaper shall be the same as
the basic charge for publication of the notice in the print edition.
SECTION 22. IC 5-3-1-1.5, AS AMENDED BY P.L.146-2024,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 1.5. (a) This section applies to a notice that must
be published in accordance with this chapter.
(b) As used in this section, "political subdivision" has the
meaning set forth in IC 5-3-5-3.
(b) If a newspaper or locality newspaper maintains a website, a
notice that is published in the newspaper or locality newspaper must
also be posted on the website of the newspaper or locality newspaper.
The notice must appear on the website on the same day the notice
appears in the newspaper or locality newspaper.
(c) The state board of accounts shall develop a standard form for
notices posted on a newspaper's or locality newspaper's website.
(d) A newspaper or locality newspaper may not charge a fee for
posting a notice on the newspaper's or locality newspaper's website
under this section.
(c) This subsection applies notwithstanding any express
statutory requirement of publishing notice in a specific form of
media. Whenever officers of a political subdivision are required to
publish a notice affecting the political subdivision, a person shall
publish the notice in any one (1) or combination of the following
forms of media:
(1) Publication in any of the following forms of a newspaper:
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(A) A print edition newspaper that is published in or
circulates within the political subdivision specified in the
statute.
(B) An electronic edition published by the newspaper
described in clause (A).
(2) Publication in any of the following forms of a locality
newspaper:
(A) A print edition locality newspaper that circulates
within the political subdivision specified in the statute.
(B) An electronic edition published by the locality
newspaper described in clause (A).
(3) Publication on a political subdivision website under
IC 5-3-5.
(d) This section does not exempt a person from complying with
any other statutory requirement, including deadlines for
publication of notice and frequency of publication.
(e) A newspaper or locality newspaper may not:
(1) charge a person a fee for viewing or searching the
newspaper's or locality newspaper's electronic edition for
public notices; or
(2) require a person to register on the newspaper's or locality
newspaper's website in order to view or search for public
notices in the electronic edition.
(f) The basic charge for publication of a notice in an electronic
edition of a newspaper or locality newspaper shall be the same as
the basic charge for publication of the notice in the print edition in
accordance with section 1 of this chapter.
SECTION 23. IC 5-3-1-1.6 IS REPEALED [EFFECTIVE JULY 1,
2027]. Sec. 1.6. (a) This section applies to a notice published by a
political subdivision in a newspaper or locality newspaper under
section 4 of this chapter.
(b) This subsection applies if a newspaper or locality newspaper
publishes:
(1) a print edition not more than three (3) times a week; and
(2) an electronic edition.
A notice may be published in either the print edition or the electronic
edition.
(c) This subsection applies if a newspaper or locality newspaper:
(1) publishes a print edition not more than two (2) times a week;
and
(2) does not publish an electronic edition.
A notice may be published in either the print edition or on the website
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of the newspaper or locality newspaper. If the newspaper or locality
newspaper does not maintain a website, a notice may be published in
either the print edition or on the political subdivision's official website
(as defined in IC 5-3-5-2) in accordance with IC 5-3-5.
(d) A newspaper or locality newspaper may not:
(1) charge a person a fee for viewing or searching the website or
electronic edition for public notices; or
(2) require a person to register on the newspaper or locality
newspaper's website in order to view or search for public notices
on the website.
(e) The basic charge for publication of a notice in an electronic
edition shall be the same as the basic charge for publication of the
notice in the print edition in accordance with section 1 of this chapter.
SECTION 24. IC 5-3-1-2, AS AMENDED BY P.L.146-2024,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 2. (a) This section applies only when notice of an
event is required to be given by publication in accordance with this
chapter.
(b) If the event is a public hearing or meeting concerning any matter
not specifically mentioned in subsection (c), (d), (e), (f), (g), (h), or (i),
notice shall be published one (1) time, at least ten (10) days before the
date of the hearing or meeting.
(c) If the event is an election, notice shall be published one (1) time,
not later than twenty-one (21) days before election day.
(d) If the event is a sale of bonds, notes, or warrants, notice shall be
published two (2) times, at least one (1) week apart, with:
(1) the first publication made at least fifteen (15) days before the
date of the sale; and
(2) the second publication made at least three (3) days before the
date of the sale.
(e) If the event is the receiving of bids, notice shall be published two
(2) times, at least one (1) week apart, with the second publication made
at least seven (7) days before the date the bids will be received.
(f) If the event is the establishment of a cumulative or sinking fund,
notice of the proposal and of the public hearing that is required to be
held by the political subdivision shall be published two (2) times, at
least one (1) week apart, with the second publication made at least
three (3) days before the date of the hearing.
(g) If the event is the submission of a proposal adopted by a political
subdivision for a cumulative or sinking fund for the approval of the
department of local government finance, the notice of the submission
shall be published one (1) time. The political subdivision shall publish
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the notice when directed to do so by the department of local
government finance.
(h) If the event is the required publication of an ordinance, notice of
the passage of the ordinance shall be published one (1) time within
thirty (30) days after the passage of the ordinance.
(i) If the event is one about which notice is required to be published
after the event, notice shall be published one (1) time within thirty (30)
days after the date of the event.
(j) If the event is one about which notice is required under
IC 36-1-11-5(e), IC 36-7-14-22.6, or IC 36-7-15.1-15.6, notice shall be
published:
(1) one (1) time not more than ten (10) days after the date on
which the determination was made; and
(2) not less than ten (10) days before the date offers will be
received.
The notice under this subsection may be published solely on the
political subdivision's official website (as defined in IC 5-3-5-2) in
accordance with IC 5-3-5.
(k) If any officer charged with the duty of publishing any notice
required by law is unable to procure publication of notice:
(1) at the price fixed by law;
(2) because all newspapers or locality newspapers that are
qualified to publish the notice refuse to publish the notice; or
(3) because the newspapers or locality newspapers referred to in
subdivision (2) refuse to post the notice on the newspapers' or
locality newspapers' websites (if required under section 1.5 of this
chapter);
it is sufficient for the officer to post printed notices in three (3)
prominent places in the political subdivision, instead of publication of
the notice in newspapers or locality newspapers and on a website (if
required under section 1.5 of this chapter).
(l) This subsection applies if an officer described in subsection (k)
or the officer's designee submits a notice to a newspaper or locality
newspaper in a timely manner and the newspaper or locality newspaper
does not refuse to publish the notice but subsequently fails to publish
the notice. If, within the same period required for publishing notice
under this section, the officer or officer's designee posts:
(1) printed notices in three (3) prominent places in the political
subdivision; or
(2) notice on the political subdivision's website in a location
where the notice is easily accessible and identifiable;
the notice is sufficient, and publication of the notice in newspapers or
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locality newspapers and on the newspapers' websites (if required under
section 1.5 of this chapter) is not required.
(m) A political subdivision that is required under this chapter to
publish notice in a newspaper two (2) or more times may make:
(1) the first publication of notice in a newspaper as required under
section 4 1.5 of this chapter or the applicable statute; and
(2) all subsequent publications of notice:
(A) in accordance with IC 5-3-5; and
(B) on the official website of the political subdivision.
If a political subdivision is required to publish a notice two (2) or more
times in at least two (2) newspapers contemporaneously, the first
publication of the notice includes the first publication of the notice in
both newspapers.
SECTION 25. IC 5-3-1-4 IS REPEALED [EFFECTIVE JULY 1,
2027]. Sec. 4. (a) Whenever officers of a political subdivision are
required to publish a notice affecting the political subdivision, they
shall publish the notice in two (2) newspapers published in the political
subdivision.
(b) This subsection applies to notices published by county officers.
If there is only one (1) newspaper published in the county, then
publication in that newspaper alone is sufficient.
(c) This subsection applies to notices published by city, town, or
school corporation officers. If there is only one (1) newspaper
published in the municipality or school corporation, then publication
in that newspaper alone is sufficient. If no newspaper is published in
the municipality or school corporation, then publication of the notice
shall be made in one (1) of the following:
(1) A locality newspaper that circulates within the municipality or
school corporation.
(2) A newspaper published in the county in which the
municipality or school corporation is located and that circulates
within the municipality or school corporation.
(d) This subsection applies to notices published by officers of
political subdivisions not covered by subsection (a) or (b). If there is
only one (1) newspaper published in the political subdivision, then the
notice shall be published in that newspaper. If no newspaper is
published in the political subdivision, then publication of the notice
shall be made in one (1) of the following:
(1) A locality newspaper that circulates within the municipality or
school corporation.
(2) A newspaper published in the county and that circulates
within the political subdivision.
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(e) This subsection applies to a political subdivision, including a
city, town, or school corporation. Notwithstanding any other law, if a
political subdivision has territory in more than one (1) county, public
notices that are required by law or ordered to be published must be
given as follows:
(1) By publication in two (2) newspapers published within the
boundaries of the political subdivision.
(2) If only one (1) newspaper is published within the boundaries
of the political subdivision, by publication of the notice in that
newspaper and in one (1) of the following:
(A) A locality newspaper that circulates within the political
subdivision.
(B) In another newspaper:
(i) published in any county in which the political subdivision
extends; and
(ii) that has a general circulation in the political subdivision.
(3) If no newspaper is published within the boundaries of the
political subdivision, by publishing the notice in two (2)
publications, consisting of either or both of the following:
(A) A locality newspaper that circulates within the political
subdivision.
(B) A newspaper that:
(i) is published in any counties into which the political
subdivision extends; and
(ii) has a general circulation in the political subdivision.
(4) If only one (1) newspaper is published in any of the counties
into which the political subdivision extends, by publication of the
notice in one (1) of the following:
(A) A locality newspaper that circulates within the political
subdivision.
(B) The newspaper published in the county if the newspaper
circulates within the political subdivision.
(f) A political subdivision may, in its discretion, publish public
notices in a qualified publication or additional newspapers or locality
newspapers to provide supplementary notification to the public. The
cost of publishing supplementary notification is a proper expenditure
of the political subdivision.
SECTION 26. IC 5-3-2-2, AS AMENDED BY P.L.122-2024,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 2. (a) In addition to the requirement for all
newspapers provided in IC 5-3-1-4, IC 5-3-1-1.5, a newspaper in
which notices, reports, and other information affecting county business
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are required by law to be published shall have a paid circulation of not
less than two percent (2%) of the population of the county in which it
is published.
(b) In addition to the requirements for qualified publications
provided in IC 5-3-1-4, IC 5-3-1-1.5, in which notices, reports, and
other information affecting county business may be published,
qualified publications must be circulated to not less than ten percent
(10%) of the population of the county in which the qualified
publication is published.
SECTION 27. IC 5-3-5-4, AS AMENDED BY P.L.1-2025,
SECTION 43, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 4. (a) A political subdivision that is required by
statute to publish notice in a newspaper two (2) or more times may
make:
(1) the first publication of a notice in a newspaper or newspapers
as required under IC 5-3-1-4 IC 5-3-1-1.5 or the applicable
statute; and
(2) if the political subdivision maintains an official website, all
subsequent publications of the notice only on the official website
of the political subdivision.
(b) If a political subdivision is required to publish a notice two (2)
or more times in at least two (2) newspapers more or less
contemporaneously, the first publication of the notice includes the first
publication of the notice in both newspapers.
SECTION 28. IC 5-14-3.8-3, AS AMENDED BY P.L.1-2025,
SECTION 66, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 3. The department, working with the office of
technology established by IC 4-13.1-2-1, or another organization that
is part of a state educational institution, the office of management and
budget established by IC 4-3-22-3, and the state board of accounts
established by IC 5-11-1-1 shall post on the Indiana transparency
website the following:
(1) The financial reports required by IC 5-11-1-4.
(2) The report on expenditures per capita prepared under
IC 6-1.1-33.5-7.
(3) A listing of the property tax rates certified by the department.
(4) An index of audit reports prepared by the state board of
accounts.
(5) Local development agreement reports prepared under
IC 4-33-23-10 and IC 4-33-23-17.
(6) Information for evaluating the fiscal health of a political
subdivision in the format required by section 8(b) of this chapter.
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(7) A listing of expenditures specifically identifying those for:
(A) personal services;
(B) other operating expenses or total operating expenses; and
(C) debt service, including lease payments, related to debt.
(8) A listing of fund balances, specifically identifying balances in
funds that are being used for accumulation of money for future
capital needs.
(9) Any other financial information deemed appropriate by the
department.
SECTION 29. IC 5-14-3.8-7, AS AMENDED BY P.L.137-2012,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 7. The department may require that prescribed
forms be submitted in an electronic format. The department working
with the office of technology established by IC 4-13.1-2-1 or another
organization that is part of a state educational institution, shall develop
and maintain a secure, web based system that facilitates electronic
submission of the forms under this section. Political subdivisions shall
submit forms under this section through the web based system as
prescribed by the department.
SECTION 30. IC 6-1.1-1-8.7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 8.7. "Mobile home"
has the meaning set forth in IC 6-1.1-7-1. IC 9-13-2-103.2. The term
includes a manufactured home (as defined in IC 9-13-2-96(a)).
SECTION 31. IC 6-1.1-2-11, AS ADDED BY P.L.68-2025,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025 (RETROACTIVE)]: Sec. 11. (a) As used in this section,
"tax increment financing allocation area" means any area authorized by
statute in which ad valorem property taxes are allocated, including the
following:
(1) IC 6-1.1-39 (economic development districts).
(2) IC 8-22-3.5 (airport development zones).
(3) IC 36-7-14 (redevelopment of areas needing redevelopment
generally).
(4) IC 36-7-15.1 (redevelopment of areas in Marion County).
(5) IC 36-7-30 (reuse of federal military bases).
(6) IC 36-7-30.5 (development of multicounty federal military
bases).
(7) IC 36-7-32 (certified technology parks).
(8) IC 36-7-32.5 (innovation development districts).
(9) IC 36-7.5-4.5 (rail transit development districts).
(b) The department shall, in each year beginning after December 31,
2025, 2026, and ending before January 1, 2034, adjust the base
HEA 1210 — CC 1
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assessed value of each tax increment financing allocation area to
neutralize the effect of the changing tax rates resulting year to year
from the homestead deduction under IC 6-1.1-12-37(c)(2) and
IC 6-1.1-12-37.5(c) and the deduction for eligible property under
IC 6-1.1-12-47. It is the intent of the general assembly that an increase
in revenue from a change in tax rates resulting from these statutes
accrue only to the base assessed value and not to the tax increment
financing allocation area. However, in the case of a decrease in revenue
from a change in tax rates resulting from these statutes, the department
may neutralize the change under this subsection in a positive manner
with regard to the tax increment financing allocation area to protect the
ability to pay bonds based on incremental revenue, if the tax increment
financing allocation area demonstrates to the department that an
adjustment is needed before the department calculates a positive
neutralization adjustment.
SECTION 32. IC 6-1.1-3-17, AS AMENDED BY P.L.232-2017,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2026 (RETROACTIVE)]: Sec. 17. (a) On or before June
1 of each year, each township assessor (if any) of a county shall deliver
to the county assessor a list which states by taxing district the total of
the personal property assessments as shown on the personal property
returns filed with the township assessor on or before the filing date of
that year and in a county with a township assessor under IC 36-6-5-1
in every township the township assessor shall deliver the lists to the
county auditor as prescribed in subsection (b).
(b) On or before July 1 of each year, each county assessor shall
certify to the county auditor and the department of local government
finance the assessment value of the personal property in every taxing
district. The county assessor shall certify the assessment value of
the personal property in the form prescribed by the department of
local government finance.
(c) The department of local government finance shall prescribe the
forms required by this section. If a county assessor fails to certify to
the county auditor and the department of local government finance
the assessment value of the personal property in every taxing
district on or before July 1 in accordance with subsection (b), the
county assessor shall, on or before July 1 of the same calendar
year, provide electronic notice to the county auditor, the county
fiscal body, the department of local government finance, and each
political subdivision in the county subject to IC 6-1.1-17-16. The
electronic notice must include a written statement acknowledging
noncompliance and detail the reasons why the statutory deadline
HEA 1210 — CC 1
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provided in subsection (b) was not met.
(d) The department of local government finance shall, before
February 2, 2027, and before February 2 of each year thereafter,
submit a report of the counties that failed to meet the statutory
deadline set forth in subsection (b) to the legislative services agency
for distribution to the members of the legislative council. The
report must be in an electronic format under IC 5-14-6.
SECTION 33. IC 6-1.1-4-4.5, AS AMENDED BY P.L.230-2025,
SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 4.5. (a) The department of local government
finance shall adopt rules establishing a system for annually adjusting
the assessed value of real property to account for changes in value in
those years since a reassessment under section 4.2 of this chapter for
the property last took effect.
(b) Subject to subsection (f), the system must be applied to adjust
assessed values beginning with the 2006 assessment date and each year
thereafter that is not a year in which a reassessment under section 4.2
of this chapter for the property becomes effective.
(c) The rules adopted under subsection (a) must include the
following characteristics in the system:
(1) Promote uniform and equal assessment of real property within
and across classifications.
(2) Require that assessing officials:
(A) reevaluate the factors that affect value;
(B) express the interactions of those factors mathematically;
(C) use mass appraisal techniques to estimate updated property
values within statistical measures of accuracy; and
(D) provide notice to taxpayers of an assessment increase that
results from the application of annual adjustments.
(3) Prescribe procedures that permit the application of the
adjustment percentages in an efficient manner by assessing
officials.
(d) The department of local government finance must review and
certify each annual adjustment determined under this section.
(e) For an assessment beginning after December 31, 2022,
agricultural improvements such as but not limited to barns, grain bins,
or silos on land assessed as agricultural shall not be adjusted using
factors, such as neighborhood delineation, that are appropriate for use
in adjusting residential, commercial, and industrial real property. Those
portions of agricultural parcels that include land and buildings not used
for an agricultural purpose, such as homes, homesites, and excess
residential land and commercial or industrial land and buildings, shall
HEA 1210 — CC 1
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be adjusted by the factor or factors developed for other similar property
within the geographic stratification. The residential portion of
agricultural properties shall be adjusted by the factors applied to
similar residential purposes.
(f) In making the annual determination of the base rate to satisfy the
requirement for an annual adjustment for each assessment date, the
department of local government finance shall, not later than March 1
of each year, determine the base rate using the methodology reflected
in Table 2-18 of Book 1, Chapter 2 of the department of local
government finance's Real Property Assessment Guidelines (as in
effect on January 1, 2005), except that the department shall adjust the
methodology as follows:
(1) Use a six (6) year rolling average adjusted under subdivision
(3) instead of a four (4) year rolling average.
(2) Use the data from the six (6) most recent years preceding the
year in which the assessment date occurs for which data is
available, before one (1) of those six (6) years is eliminated under
subdivision (3) when determining the rolling average.
(3) Eliminate in the calculation of the rolling average the year
among the six (6) years for which the highest market value in use
of agricultural land is determined.
(4) After determining a preliminary base rate that would apply for
the assessment date without applying the adjustment under this
subdivision, the department of local government finance shall
adjust the preliminary base rate as follows:
(A) If the preliminary base rate for the assessment date would
be at least ten percent (10%) greater than the final base rate
determined for the preceding assessment date, a capitalization
rate of:
(i) for purposes of determining the preliminary base rate for
the January 1, 2025, and the January 1, 2026, and January
1, 2027, assessment dates, nine percent (9%); and
(ii) for purposes of determining the preliminary base rate for
assessment dates before January 1, 2025, and for assessment
dates after December 31, 2026, 2027, eight percent (8%);
shall be used to determine the final base rate.
(B) If the preliminary base rate for the assessment date would
be at least ten percent (10%) less than the final base rate
determined for the preceding assessment date, a capitalization
rate of six percent (6%) shall be used to determine the final
base rate.
(C) If neither clause (A) nor clause (B) applies, a capitalization
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rate of seven percent (7%) shall be used to determine the final
base rate.
(D) In the case of a market value in use for a year that is used
in the calculation of the six (6) year rolling average under
subdivision (1) for purposes of determining the base rate for
the assessment date:
(i) that market value in use shall be recalculated by using the
capitalization rate determined under clauses (A) through (C)
for the calculation of the base rate for the assessment date;
and
(ii) the market value in use recalculated under item (i) shall
be used in the calculation of the six (6) year rolling average
under subdivision (1).
(g) For assessment dates after December 31, 2009, an adjustment in
the assessed value of real property under this section shall be based on
the estimated true tax value of the property on the assessment date that
is the basis for taxes payable on that real property.
(h) The department shall release the department's annual
determination of the base rate on or before March 1 of each year.
(i) For the January 1, 2025, assessment date only, the base rate
determined using the capitalization rate under subsection (f)(4)(A)(i)
shall not apply to land that is assessed under section 12 of this chapter.
SECTION 34. IC 6-1.1-4-13, AS AMENDED BY THE
TECHNICAL CORRECTIONS BILL OF THE 2026 GENERAL
ASSEMBLY, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]: Sec. 13. (a) In assessing or
reassessing land, the land shall be assessed as agricultural land only
when it is devoted to agricultural use regardless of:
(1) who owns the land; or
(2) who the person or entity is that is liable for property taxes
due on the land under IC 6-1.1-2-4.
(b) For purposes of this section, and in addition to any other land
considered devoted to agricultural use, any:
(1) land enrolled in:
(A) a land conservation or reserve program administered by
the United States Department of Agriculture;
(B) a land conservation program administered by the United
States Department of Agriculture's Farm Service Agency; or
(C) a conservation reserve program or agricultural easement
program administered by the United States Department of
Agriculture's National Natural Resources Conservation
Service;
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(2) land enrolled in the department of natural resources' classified
forest and wildlands program (or any similar or successor
program);
(3) land classified in the category of other agriculture use, as
provided in the department of local government finance's real
property assessment guidelines; or
(4) land devoted to the harvesting of hardwood timber;
is considered to be devoted to agricultural use. Agricultural use for
purposes of this section includes but is not limited to the uses included
in the definition of "agricultural use" in IC 36-7-4-616(b), such as the
production of livestock or livestock products, commercial aquaculture,
equine or equine products, land designated as a conservation reserve
plan, pastureland, poultry or poultry products, horticultural or nursery
stock, fruit, vegetables, forage, grains, timber, trees, bees and apiary
products, tobacco, other agricultural crops, general farming operation
purposes, native timber lands, or land that lays fallow. Agricultural use
may not be determined by the size of a parcel or size of a part of the
parcel. This subsection does not affect the assessment of any real
property assessed under IC 6-1.1-6 (assessment of certain forest lands),
IC 6-1.1-6.2 (assessment of certain windbreaks), or IC 6-1.1-6.7
(assessment of filter strips).
(c) The department of local government finance shall give written
notice to each county assessor of:
(1) the availability of the United States Department of
Agriculture's soil survey data; and
(2) the appropriate soil productivity factor for each type or
classification of soil shown on the United States Department of
Agriculture's soil survey map.
All assessing officials and the property tax assessment board of appeals
shall use the data in determining the true tax value of agricultural land.
However, notwithstanding the availability of new soil productivity
factors and the department of local government finance's notice of the
appropriate soil productivity factor for each type or classification of
soil shown on the United States Department of Agriculture's soil survey
map for the March 1, 2012, assessment date, the soil productivity
factors used for the March 1, 2011, assessment date shall be used for
the January 1, 2016, assessment date and each assessment date
thereafter.
(d) The department of local government finance shall by rule
provide for the method for determining the true tax value of each parcel
of agricultural land.
(e) This section does not apply to land purchased for industrial or
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commercial uses.
SECTION 35. IC 6-1.1-4-25, AS AMENDED BY P.L.1-2025,
SECTION 76, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2026 (RETROACTIVE)]: Sec. 25. (a) Each township
assessor and each county assessor shall keep the assessor's
reassessment data and records current by securing the necessary field
data and by making changes in the assessed value of real property as
changes occur in the use of the real property. The township or county
assessor's records shall at all times show the assessed value of real
property in accordance with this chapter. The township assessor shall
ensure that the county assessor has full access to the assessment
records maintained by the township assessor.
(b) The county assessor shall:
(1) maintain an electronic data file of:
(A) the parcel characteristics and parcel assessments of all
parcels; and
(B) the personal property return characteristics and
assessments by return;
for each township in the county as of each assessment date;
(2) maintain the electronic file in a form that formats the
information in the file with the standard data, field, and record
coding required and approved by:
(A) the legislative services agency; and
(B) the department of local government finance;
(3) provide electronic access to property record cards on the
official county website; and
(4) before September 1 July 1 of each year, transmit the data in
the file with respect to the assessment date of that year to the
department of local government finance.
(c) The appropriate county officer, as designated by the county
executive, shall:
(1) maintain an electronic data file of the geographic information
system characteristics of each parcel for each township in the
county as of each assessment date;
(2) maintain the electronic file in a form that formats the
information in the file with the standard data, field, and record
coding required and approved by the office of technology; and
(3) before September 1 July 1 of each year, transmit the data in
the file with respect to the assessment date of that year to the
geographic information office of the office of technology.
(d) An assessor under subsection (b) and an appropriate county
officer under subsection (c) shall do the following:
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(1) Transmit the data in a manner that meets the data export and
transmission requirements in a standard format, as prescribed by
the office of technology established by IC 4-13.1-2-1 and
approved by the legislative services agency.
(2) Resubmit the data in the form and manner required under
subsection (b) or (c) upon request of the legislative services
agency, the department of local government finance, or the
geographic information office of the office of technology, as
applicable, if data previously submitted under subsection (b) or
(c) does not comply with the requirements of subsection (b) or (c),
as determined by the legislative services agency, the department
of local government finance, or the geographic information office
of the office of technology, as applicable.
An electronic data file maintained for a particular assessment date may
not be overwritten with data for a subsequent assessment date until a
copy of an electronic data file that preserves the data for the particular
assessment date is archived in the manner prescribed by the office of
technology established by IC 4-13.1-2-1 and approved by the
legislative services agency.
SECTION 36. IC 6-1.1-5-14, AS AMENDED BY P.L.232-2017,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2026 (RETROACTIVE)]: Sec. 14. (a) Not later than:
(1) May 15 in each calendar year ending before January 1, 2017;
and
(2) May 1 in each calendar year ending after December 31, 2016;
each township assessor in the county (if any) shall prepare and deliver
to the county assessor a detailed list of the real property listed for
taxation in the township.
(b) On or before July 1 of each calendar year, each county assessor
shall, under oath, prepare and deliver certify to the county auditor and
the department of local government finance a detailed list of the real
property listed for taxation in the county. The county assessor shall
prepare certify the list in the form prescribed by the department of
local government finance.
(c) If the county assessor fails to certify to the county auditor
and the department of local government finance a detailed list of
the real property on or before July 1 in accordance with subsection
(b), then the county assessor shall, on or before July 1 of the same
calendar year, provide electronic notice to the county auditor, the
county fiscal body, the department of local government finance,
and each political subdivision in the county subject to
IC 6-1.1-17-16. The electronic notice must include a written
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statement acknowledging noncompliance and detail the reasons
why the statutory deadline set forth in subsection (b) was not met.
(d) The department of local government finance shall, before
February 2, 2027, and before February 2 of each year thereafter,
submit a report of the counties that failed to meet the statutory
deadline set forth in subsection (b) to the legislative services agency
for distribution to the members of the legislative council. The
report must be in an electronic format under IC 5-14-6.
SECTION 37. IC 6-1.1-7-1, AS AMENDED BY P.L.23-2024,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 1. (a) Except as provided in IC 6-1.1-10.5,
mobile homes which are located within this state on the assessment
date of a year shall be assessed and taxed for that year in the manner
provided in this chapter. If a provision of this chapter conflicts with
another provision of this article, the provision of this chapter controls
with respect to the assessment and taxation of mobile homes.
(b) For purposes of this chapter, "mobile home" means a dwelling
which:
(1) is factory assembled;
(2) is transportable;
(3) is intended for year around occupancy;
(4) exceeds thirty-five (35) feet in length; and
(5) is designed either for transportation on its own chassis or
placement on a temporary foundation. has the meaning set forth
in IC 9-13-2-103.2. The term includes a manufactured home
(as defined in IC 9-13-2-96(a)).
SECTION 38. IC 6-1.1-7-10.4, AS AMENDED BY P.L.118-2022,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 10.4. (a) This section does not apply to a mobile
home that is offered for sale at auction under IC 9-22-1.5 or
IC 9-22-1.7 for the transfer resulting from the auction.
(b) The owner of a mobile home who sells the mobile home to
another person shall provide the purchaser with the permit required by
section 10(d) of this chapter before the sale is consummated.
(c) The purchaser of a mobile home shall process the paperwork
with the bureau of motor vehicles to transfer the title into the
purchaser's name within ninety (90) days of the sale.
SECTION 39. IC 6-1.1-8-24.5, AS AMENDED BY P.L.230-2025,
SECTION 22, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2026 (RETROACTIVE)]: Sec. 24.5. The department of
local government finance shall annually determine and release a solar
land base rate for the north region, the central region, and the south
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region of the state as follows:
(1) For each region, the department shall determine the median
true tax value per acre of all land in the region classified under the
utility property class codes of the department of local government
finance for the immediately preceding assessment date. For
purposes of these determinations, the department shall exclude
any land classified under the department's utility property class
codes that is assessed using the agricultural base rate for the
immediately preceding assessment date.
(2) The department shall release the department's annual
determination of the solar land base rates on or before December
1 of each year.
SECTION 40. IC 6-1.1-10-25, AS AMENDED BY P.L.79-2014,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2026 (RETROACTIVE)]: Sec. 25. (a) Subject to the
limitations contained in subsection (b) of this section, tangible property
is exempt from property taxation if it is owned by any of the following
organizations:
(1) The Young Men's Christian Association.
(2) The Salvation Army, Inc.
(3) The Knights of Columbus.
(4) The Young Men's Hebrew Association.
(5) The Young Women's Christian Association.
(6) A chapter or post of Disabled American Veterans of World
War I or II.
(7) A chapter or post of the Veterans of Foreign Wars.
(8) A post of the American Legion.
(9) A post of the American War Veterans.
(10) The Boy Scouts of America, one (1) or more of its
incorporated local councils, or a bank or trust company in trust for
the benefit of one (1) or more of its local councils.
(11) The Girl Scouts of the U.S.A., one or more of its
incorporated local councils, or a bank or trust company in trust for
the benefit of one (1) or more of its local councils.
(12) The Indiana Historical Society, Inc.
(b) This exemption does not apply unless the property is exclusively
used, and in the case of real property actually occupied, for the
purposes and objectives of the organization.
SECTION 41. IC 6-1.1-10.2 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2026 (RETROACTIVE)]:
Chapter 10.2. Exemptions for Indiana Nonprofit Senior Living
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Communities
Sec. 1. It is the intent of the general assembly that Indiana
nonprofit senior living communities identified in this chapter that
also meet the requirements set out in this chapter be exempt from
property taxation, including real and tangible property.
Sec. 2. All or part of a building is exempt from property
taxation if it is owned by an Indiana nonprofit entity that is:
(1) registered as a continuing care retirement community
under IC 23-2-4;
(2) defined as a small house health facility under
IC 16-18-2-331.9; or
(3) licensed as a health care or residential care facility under
IC 16-28.
Sec. 3. Tangible personal property is exempt from property
taxation if it is owned by an Indiana nonprofit entity that is:
(1) registered as a continuing care retirement community
under IC 23-2-4;
(2) defined as a small house health facility under
IC 16-18-2-331.9; or
(3) licensed as a health care or residential care facility under
IC 16-28.
SECTION 42. IC 6-1.1-10.3-3, AS AMENDED BY P.L.68-2025,
SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2028]: Sec. 3. As used in this chapter, "exemption ordinance"
refers to an ordinance adopted under section 5 of this chapter by a local
income tax council (before July 1, 2027) 2028) or by a county adopting
body specified in IC 6-3.6-3-1(a) (after June 30, 2027). 2028).
SECTION 43. IC 6-1.1-10.5-1, AS ADDED BY P.L.23-2024,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 1. (a) This chapter applies to mobile homes
and manufactured homes that are assessed under IC 6-1.1-7.
(b) This chapter does not apply to mobile homes and manufactured
homes that are assessed as:
(1) inventory; or
(2) real property;
under this article and in accordance with rules adopted by the
department of local government finance.
SECTION 44. IC 6-1.1-10.5-4, AS ADDED BY P.L.23-2024,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 4. As used in this chapter, "manufactured
home" has the meaning set forth in IC 9-13-2-96. IC 9-13-2-96(a). The
term includes a mobile home (as defined in IC 9-13-2-103.2).
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SECTION 45. IC 6-1.1-10.5-5, AS ADDED BY P.L.23-2024,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 5. As used in this chapter, "mobile home" has
the meaning set forth in IC 6-1.1-7-1(b). IC 9-13-2-103.2. The term
includes a manufactured home (as defined in IC 9-13-2-96(a)).
SECTION 46. IC 6-1.1-12-13, AS AMENDED BY P.L.230-2025,
SECTION 31, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2026 (RETROACTIVE)]: Sec. 13. (a) Except as
provided in section 40.5 of this chapter, an individual may have
twenty-four thousand nine hundred sixty dollars ($24,960) deducted
from the assessed value of the taxable tangible property that the
individual owns, or real property, a mobile home not assessed as real
property, or a manufactured home not assessed as real property that the
individual is buying under a contract that provides that the individual
is to pay property taxes on the real property, mobile home, or
manufactured home, if the contract or a memorandum of the contract
is recorded in the county recorder's office and if:
(1) the individual served in the military or naval forces of the
United States during any of its wars;
(2) the individual received an honorable discharge;
(3) the individual has a disability with a service connected
disability of ten percent (10%) or more;
(4) the individual's disability is evidenced by:
(A) a pension certificate, an award of compensation, or a
disability compensation check issued by the United States
Department of Veterans Affairs; or
(B) a certificate of eligibility issued to the individual by the
Indiana department of veterans' affairs after the Indiana
department of veterans' affairs has determined that the
individual's disability qualifies the individual to receive a
deduction under this section; and
(5) the individual:
(A) owns the real property, mobile home, or manufactured
home; or
(B) is buying the real property, mobile home, or manufactured
home under contract;
on the date the statement required by section 15 of this chapter is
filed.
(b) The surviving spouse of an individual may receive the deduction
provided by this section if the individual satisfied the requirements of
subsection (a)(1) through (a)(4) at the time of death and the surviving
spouse satisfies the requirement of subsection (a)(5) at the time the
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deduction statement is filed. The surviving spouse is entitled to the
deduction regardless of whether the property for which the deduction
is claimed was owned by the deceased veteran or the surviving spouse
before the deceased veteran's death.
(c) One who receives the deduction provided by this section may not
receive the deduction provided by section 16 of this chapter. However,
the individual may receive any other property tax deduction which the
individual is entitled to by law.
(d) An individual who has sold real property, a mobile home not
assessed as real property, or a manufactured home not assessed as real
property to another person under a contract that provides that the
contract buyer is to pay the property taxes on the real property, mobile
home, or manufactured home may not claim the deduction provided
under this section against that real property, mobile home, or
manufactured home.
(e) This section applies only to property taxes imposed for an
assessment date before January 1, 2026.
(f) This section expires January 1, 2028.
SECTION 47. IC 6-1.1-12-14, AS AMENDED BY P.L.230-2025,
SECTION 32, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2026 (RETROACTIVE)]: Sec. 14. (a) Except as
provided in subsection (c) and Except as provided in section 40.5 of
this chapter, an individual may have the sum of fourteen thousand
dollars ($14,000) one hundred percent (100%) of the assessed value
deducted from the assessed value of the real property, mobile home not
assessed as real property, or manufactured home not assessed as real
property that the individual owns (or the real property, mobile home
not assessed as real property, or manufactured home not assessed as
real property that the individual is buying under a contract that
provides that the individual is to pay property taxes on the real
property, mobile home, or manufactured home if the contract or a
memorandum of the contract is recorded in the county recorder's office)
and uses as the individual's principal place of residence if:
(1) the individual served in the military or naval forces of the
United States for at least ninety (90) days;
(2) the individual received an honorable discharge;
(3) the individual either:
(A) has a total disability; or
(B) is at least sixty-two (62) years old and has a disability of at
least ten percent (10%);
(4) the individual's disability is evidenced by:
(A) a pension certificate or an award of compensation issued
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by the United States Department of Veterans Affairs; or
(B) a certificate of eligibility issued to the individual by the
Indiana department of veterans' affairs after the Indiana
department of veterans' affairs has determined that the
individual's disability qualifies the individual to receive a
deduction under this section; and
(5) the individual:
(A) owns the real property, mobile home, or manufactured
home; or
(B) is buying the real property, mobile home, or manufactured
home under contract;
on the date the statement required by section 15 of this chapter is
filed; and
(6) the individual has resided in Indiana for at least one (1)
year before the assessment date for which the deduction
under this section is claimed.
(b) Except as provided in subsections (c) and (d), The surviving
spouse of an individual may receive the deduction provided by this
section if
(1) the individual satisfied the requirements of subsection (a)(1)
through (a)(4) at the time of death or
(2) the individual:
(A) was killed in action;
(B) died while serving on active duty in the military or naval
forces of the United States; or
(C) died while performing inactive duty training in the military
or naval forces of the United States; and
the surviving spouse satisfies the requirement of subsection (a)(5) at
the time the deduction statement is filed. The surviving spouse is
entitled to the deduction regardless of whether the property for which
the deduction is claimed was owned by the deceased veteran or the
surviving spouse before the deceased veteran's death. However, a
surviving spouse is no longer eligible for the deduction under this
section if the surviving spouse subsequently remarries.
(c) Except as provided in subsection (f), no one is entitled to the
deduction provided by this section if the assessed value of the
individual's Indiana real property, Indiana mobile home not assessed as
real property, and Indiana manufactured home not assessed as real
property, as shown by the tax duplicate, exceeds the assessed value
limit specified in subsection (d).
(d) Except as provided in subsection (f), for the:
(1) January 1, 2017, January 1, 2018, and January 1, 2019,
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assessment dates, the assessed value limit for purposes of
subsection (c) is one hundred seventy-five thousand dollars
($175,000);
(2) January 1, 2020, January 1, 2021, January 1, 2022, and
January 1, 2023, assessment dates, the assessed value limit for
purposes of subsection (c) is two hundred thousand dollars
($200,000); and
(3) January 1, 2024, assessment date and for each assessment date
thereafter, the assessed value limit for purposes of subsection (c)
is two hundred forty thousand dollars ($240,000).
(e) (c) An individual who has sold real property, a mobile home not
assessed as real property, or a manufactured home not assessed as real
property to another person under a contract that provides that the
contract buyer is to pay the property taxes on the real property, mobile
home, or manufactured home may not claim the deduction provided
under this section against that real property, mobile home, or
manufactured home.
(d) Beginning with taxes assessed in 2026 and due and payable
in 2027, an individual who receives a deduction under this section
may not receive a local property tax credit under IC 6-1.1-51.3.
(f) For purposes of determining the assessed value of the real
property, mobile home, or manufactured home under subsection (d) for
an individual who has received a deduction under this section in a
previous year, increases in assessed value that occur after the later of:
(1) December 31, 2019; or
(2) the first year that the individual has received the deduction;
are not considered unless the increase in assessed value is attributable
to substantial renovation or new improvements. Where there is an
increase in assessed value for purposes of the deduction under this
section, the assessor shall provide a report to the county auditor
describing the substantial renovation or new improvements, if any, that
were made to the property prior to the increase in assessed value.
SECTION 48. IC 6-1.1-12-14.5, AS AMENDED BY P.L.230-2025,
SECTION 33, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2026 (RETROACTIVE)]: Sec. 14.5. (a) As used in this
section, "homestead" has the meaning set forth in section 37 of this
chapter.
(b) An individual may claim a deduction from the assessed value of
the individual's homestead if:
(1) the individual served in the military or naval forces of the
United States for at least ninety (90) days;
(2) the individual received an honorable discharge;
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(3) the individual has a disability of at least fifty percent (50%);
(4) the individual's disability is evidenced by:
(A) a pension certificate or an award of compensation issued
by the United States Department of Veterans Affairs; or
(B) a certificate of eligibility issued to the individual by the
Indiana department of veterans' affairs after the Indiana
department of veterans' affairs has determined that the
individual's disability qualifies the individual to receive a
deduction under this section; and
(5) the homestead was conveyed without charge to the individual
who is the owner of the homestead by an organization that is
exempt from income taxation under the federal Internal Revenue
Code.
(c) If an individual is entitled to a deduction from assessed value
under subsection (b) for the individual's homestead, the amount of the
deduction is determined as follows:
(1) If the individual is totally disabled, the deduction is equal to
one hundred percent (100%) of the assessed value of the
homestead.
(2) If the individual has a disability of at least ninety percent
(90%) but the individual is not totally disabled, the deduction is
equal to ninety percent (90%) of the assessed value of the
homestead.
(3) If the individual has a disability of at least eighty percent
(80%) but less than ninety percent (90%), the deduction is equal
to eighty percent (80%) of the assessed value of the homestead.
(4) If the individual has a disability of at least seventy percent
(70%) but less than eighty percent (80%), the deduction is equal
to seventy percent (70%) of the assessed value of the homestead.
(5) If the individual has a disability of at least sixty percent (60%)
but less than seventy percent (70%), the deduction is equal to
sixty percent (60%) of the assessed value of the homestead.
(6) If the individual has a disability of at least fifty percent (50%)
but less than sixty percent (60%), the deduction is equal to fifty
percent (50%) of the assessed value of the homestead.
(d) An individual who claims a deduction under this section for an
assessment date may not also claim a deduction under section 13
(before its expiration) or 14 of this chapter for that same assessment
date.
(e) An individual who desires to claim the deduction under this
section must claim the deduction in the manner specified by the
department of local government finance.
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SECTION 49. IC 6-1.1-12-15, AS AMENDED BY P.L.230-2025,
SECTION 34, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2026 (RETROACTIVE)]: Sec. 15. (a) Except as
provided in section 17.8 of this chapter and subject to section 45 of this
chapter, an individual who desires to claim the deduction provided by
section 13 or 14 of this chapter must file a statement with the auditor
of the county in which the individual resides. property is located. To
obtain the deduction for a desired calendar year in which property taxes
are first due and payable, the statement must be completed, dated, and
filed with the county auditor on or before January 15 of the calendar
year in which the property taxes are first due and payable. The
statement may be filed in person or by mail. If mailed, the mailing must
be postmarked on or before the last day for filing. The statement shall
contain a sworn declaration that the individual is entitled to the
deduction.
(b) In addition to the statement, the individual shall submit to the
county auditor for the auditor's inspection:
(1) a pension certificate, an award of compensation, or a disability
compensation check issued by the United States Department of
Veterans Affairs if the individual claims the deduction provided
by section 13 of this chapter;
(2) (1) a pension certificate or an award of compensation issued
by the United States Department of Veterans Affairs if the
individual claims the deduction provided by section 14 of this
chapter; or
(3) (2) the appropriate certificate of eligibility issued to the
individual by the Indiana department of veterans' affairs if the
individual claims the deduction provided by section 13 or 14 of
this chapter.
(c) If the individual claiming the deduction is under guardianship,
the guardian shall file the statement required by this section. If a
deceased veteran's surviving spouse is claiming the deduction, the
surviving spouse shall provide the documentation necessary to
establish that at the time of death the deceased veteran satisfied the
requirements of section 13(a)(1) through 13(a)(4) of this chapter,
section 14(a)(1) through 14(a)(4) of this chapter or section 14(b)(2) of
this chapter, whichever applies.
(d) If the individual claiming a deduction under section 13 or 14 of
this chapter is buying real property, a mobile home not assessed as real
property, or a manufactured home not assessed as real property under
a contract that provides that the individual is to pay property taxes for
the real estate, mobile home, or manufactured home, the statement
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required by this section must contain the record number and page
where the contract or memorandum of the contract is recorded.
SECTION 50. IC 6-1.1-12-16, AS AMENDED BY P.L.68-2025,
SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]: Sec. 16. (a) Except as
provided in section 40.5 of this chapter, a surviving spouse may have
the sum of eighteen thousand seven hundred twenty dollars ($18,720)
deducted from the assessed value of the surviving spouse's tangible
property, or real property, mobile home not assessed as real property,
or manufactured home not assessed as real property that the surviving
spouse is buying under a contract that provides that the surviving
spouse is to pay property taxes on the real property, mobile home, or
manufactured home, if the contract or a memorandum of the contract
is recorded in the county recorder's office, and if:
(1) the deceased spouse served in the military or naval forces of
the United States before November 12, 1918;
(2) the deceased spouse received an honorable discharge; and
(3) the surviving spouse:
(A) owns the real property, mobile home, or manufactured
home; or
(B) is buying the real property, mobile home, or manufactured
home under contract;
on the date the statement required by section 17 of this chapter is
filed.
(b) A surviving spouse who receives the deduction provided by this
section may not receive the deduction provided by section 13 (before
its expiration) of this chapter. However, the surviving spouse may
receive any other deduction which the surviving spouse is entitled to
by law.
(c) An individual who has sold real property, a mobile home not
assessed as real property, or a manufactured home not assessed as real
property to another person under a contract that provides that the
contract buyer is to pay the property taxes on the real property, mobile
home, or manufactured home may not claim the deduction provided
under this section against that real property, mobile home, or
manufactured home.
(d) This section applies only to property taxes imposed for an
assessment date before January 1, 2025.
(e) This section expires January 1, 2027.
SECTION 51. IC 6-1.1-12-17, AS AMENDED BY P.L.68-2025,
SECTION 29, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]: Sec. 17. (a) Except as
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provided in section 17.8 of this chapter and subject to section 45 of this
chapter, a surviving spouse who desires to claim the deduction
provided by section 16 of this chapter must file a statement with the
auditor of the county in which the surviving spouse resides. To obtain
the deduction for a desired calendar year in which property taxes are
first due and payable, the statement must be completed, dated, and filed
with the county auditor on or before January 15 of the calendar year in
which the property taxes are first due and payable. The statement may
be filed in person or by mail. If mailed, the mailing must be postmarked
on or before the last day for filing. The statement shall contain:
(1) a sworn statement that the surviving spouse is entitled to the
deduction; and
(2) the record number and page where the contract or
memorandum of the contract is recorded, if the individual is
buying the real property on a contract that provides that the
individual is to pay property taxes on the real property.
In addition to the statement, the surviving spouse shall submit to the
county auditor for the auditor's inspection a letter or certificate from the
United States Department of Veterans Affairs establishing the service
of the deceased spouse in the military or naval forces of the United
States before November 12, 1918.
(b) This section applies only to property taxes imposed for an
assessment date before January 1, 2025.
(c) This section expires January 1, 2027.
SECTION 52. IC 6-1.1-12-17.8, AS AMENDED BY THE
TECHNICAL CORRECTIONS BILL OF THE 2026 GENERAL
ASSEMBLY, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]: Sec. 17.8. (a) An individual
who receives a deduction provided under section 9 (before its
expiration), 11 (before its expiration), 13 (before its expiration), 14,
16, (before its expiration), 17.4 (before its expiration), or 37 of this
chapter in a particular year and who remains eligible for the deduction
in the following year is not required to file a statement to apply for the
deduction in the following year. However, for purposes of a deduction
under section 37 of this chapter, the county auditor may, in the county
auditor's discretion, terminate the deduction for assessment dates after
January 15, 2012, if the individual does not comply with the
requirement in IC 6-1.1-22-8.1(b)(9) (expired January 1, 2015), as
determined by the county auditor, before January 1, 2013. Before the
county auditor terminates the deduction because the taxpayer claiming
the deduction did not comply with the requirement in
IC 6-1.1-22-8.1(b)(9) (expired January 1, 2015) before January 1, 2013,
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the county auditor shall mail notice of the proposed termination of the
deduction to:
(1) the last known address of each person liable for any property
taxes or special assessment, as shown on the tax duplicate or
special assessment records; or
(2) the last known address of the most recent owner shown in the
transfer book.
(b) An individual who receives a deduction provided under section
9 (before its expiration), 11 (before its expiration), 13 (before its
expiration), 14, 16, (before its expiration), or 17.4 (before its
expiration) of this chapter in a particular year and who becomes
ineligible for the deduction in the following year shall notify the auditor
of the county in which the real property, mobile home, or manufactured
home for which the individual claims the deduction is located of the
individual's ineligibility in the year in which the individual becomes
ineligible. An individual who becomes ineligible for a deduction under
section 37 of this chapter shall notify the county auditor of the county
in which the property is located in conformity with section 37 of this
chapter.
(c) The auditor of each county shall, in a particular year, apply a
deduction provided under section 9 (before its expiration), 11 (before
its expiration), 13 (before its expiration), 14, 16, (before its
expiration), 17.4 (before its expiration), or 37 of this chapter to each
individual who received the deduction in the preceding year unless the
auditor determines that the individual is no longer eligible for the
deduction.
(d) An individual who receives a deduction provided under section
9 (before its expiration), 11 (before its expiration), 13 (before its
expiration), 14, 16, (before its expiration), 17.4 (before its expiration),
or 37 of this chapter for property that is jointly held with another owner
in a particular year and remains eligible for the deduction in the
following year is not required to file a statement to reapply for the
deduction following the removal of the joint owner if:
(1) the individual is the sole owner of the property following the
death of the individual's spouse; or
(2) the individual is the sole owner of the property following the
death of a joint owner who was not the individual's spouse.
If a county auditor terminates a deduction under section 9 of this
chapter (before its expiration), a deduction under section 37 of this
chapter, or a credit under IC 6-1.1-20.6-8.5 after June 30, 2017, and
before May 1, 2019, because the taxpayer claiming the deduction or
credit did not comply with a requirement added to this subsection by
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P.L.255-2017 to reapply for the deduction or credit, the county auditor
shall reinstate the deduction or credit if the taxpayer provides proof that
the taxpayer is eligible for the deduction or credit and is not claiming
the deduction or credit for any other property.
(e) A trust entitled to a deduction under section 9 (before its
expiration), 11 (before its expiration), 13 (before its expiration), 14,
16, (before its expiration), 17.4 (before its expiration), or 37 of this
chapter for real property owned by the trust and occupied by an
individual in accordance with section 17.9 of this chapter (before its
expiration) is not required to file a statement to apply for the deduction,
if:
(1) the individual who occupies the real property receives a
deduction provided under section 9 (before its expiration), 11
(before its expiration), 13 (before its expiration), 14, 16, (before
its expiration), 17.4 (before its expiration), or 37 of this chapter
in a particular year; and
(2) the trust remains eligible for the deduction in the following
year.
However, for purposes of a deduction under section 37 of this chapter,
the individuals that qualify the trust for a deduction must comply with
the requirement in IC 6-1.1-22-8.1(b)(9) (expired January 1, 2015)
before January 1, 2013.
(f) A cooperative housing corporation (as defined in 26 U.S.C. 216)
that is entitled to a deduction under section 37 of this chapter in the
immediately preceding calendar year for a homestead (as defined in
section 37 of this chapter) is not required to file a statement to apply for
the deduction for the current calendar year if the cooperative housing
corporation remains eligible for the deduction for the current calendar
year. However, the county auditor may, in the county auditor's
discretion, terminate the deduction for assessment dates after January
15, 2012, if the individual does not comply with the requirement in
IC 6-1.1-22-8.1(b)(9) (expired January 1, 2015), as determined by the
county auditor, before January 1, 2013. Before the county auditor
terminates a deduction because the taxpayer claiming the deduction did
not comply with the requirement in IC 6-1.1-22-8.1(b)(9) (expired
January 1, 2015) before January 1, 2013, the county auditor shall mail
notice of the proposed termination of the deduction to:
(1) the last known address of each person liable for any property
taxes or special assessment, as shown on the tax duplicate or
special assessment records; or
(2) the last known address of the most recent owner shown in the
transfer book.
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(g) An individual who:
(1) was eligible for a homestead credit under IC 6-1.1-20.9
(repealed) for property taxes imposed for the March 1, 2007, or
January 15, 2008, assessment date; or
(2) would have been eligible for a homestead credit under
IC 6-1.1-20.9 (repealed) for property taxes imposed for the March
1, 2008, or January 15, 2009, assessment date if IC 6-1.1-20.9 had
not been repealed;
is not required to file a statement to apply for a deduction under section
37 of this chapter if the individual remains eligible for the deduction in
the current year. An individual who filed for a homestead credit under
IC 6-1.1-20.9 (repealed) for an assessment date after March 1, 2007 (if
the property is real property), or after January 1, 2008 (if the property
is personal property), shall be treated as an individual who has filed for
a deduction under section 37 of this chapter. However, the county
auditor may, in the county auditor's discretion, terminate the deduction
for assessment dates after January 15, 2012, if the individual does not
comply with the requirement in IC 6-1.1-22-8.1(b)(9) (expired January
1, 2015), as determined by the county auditor, before January 1, 2013.
Before the county auditor terminates the deduction because the
taxpayer claiming the deduction did not comply with the requirement
in IC 6-1.1-22-8.1(b)(9) (expired January 1, 2015) before January 1,
2013, the county auditor shall mail notice of the proposed termination
of the deduction to the last known address of each person liable for any
property taxes or special assessment, as shown on the tax duplicate or
special assessment records, or to the last known address of the most
recent owner shown in the transfer book.
(h) If a county auditor terminates a deduction because the taxpayer
claiming the deduction did not comply with the requirement in
IC 6-1.1-22-8.1(b)(9) (expired January 1, 2015) before January 1, 2013,
the county auditor shall reinstate the deduction if the taxpayer provides
proof that the taxpayer is eligible for the deduction and is not claiming
the deduction for any other property.
(i) A taxpayer described in section 37(r) of this chapter is not
required to file a statement to apply for the deduction provided by
section 37 of this chapter if the property owned by the taxpayer remains
eligible for the deduction for that calendar year.
(j) A surviving spouse who received the deduction provided by
section 16 of this chapter for the January 1, 2024, assessment date
is not required to file a statement to reapply for the deduction to
receive the deduction for the January 1, 2025, assessment date. The
county auditor shall apply the deduction provided by section 16 of
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this chapter for the surviving spouse for the January 1, 2025,
assessment date on the surviving spouse's property tax statement
for property taxes first due and payable in 2026.
SECTION 53. IC 6-1.1-12-17.9, AS AMENDED BY P.L.230-2025,
SECTION 36, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2026 (RETROACTIVE)]: Sec. 17.9. A trust is entitled
to a deduction under section 9 (before its expiration), 11 (before its
expiration), 13 (before its expiration), 14, 16, (before its expiration),
or 17.4 (before its expiration) of this chapter for real property owned
by the trust and occupied by an individual if the county auditor
determines that the individual:
(1) upon verification in the body of the deed or otherwise, has
either:
(A) a beneficial interest in the trust; or
(B) the right to occupy the real property rent free under the
terms of a qualified personal residence trust created by the
individual under United States Treasury Regulation
25.2702-5(c)(2); and
(2) otherwise qualifies for the deduction.
SECTION 54. IC 6-1.1-12-37, AS AMENDED BY THE
TECHNICAL CORRECTIONS BILL OF THE 2026 GENERAL
ASSEMBLY, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 37. (a) The following definitions apply throughout
this section:
(1) "Dwelling" means any of the following:
(A) Residential real property improvements that an individual
uses as the individual's residence, limited to a single house and
a single garage, regardless of whether the single garage is
attached to the single house or detached from the single house.
(B) A mobile home that is not assessed as real property that an
individual uses as the individual's residence.
(C) A manufactured home that is not assessed as real property
that an individual uses as the individual's residence.
(2) "Homestead" means an individual's principal place of
residence:
(A) that is located in Indiana;
(B) that:
(i) the individual owns;
(ii) the individual is buying under a contract recorded in the
county recorder's office, or evidenced by a memorandum of
contract recorded in the county recorder's office under
IC 36-2-11-20, that provides that the individual is to pay the
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property taxes on the residence, and that obligates the owner
to convey title to the individual upon completion of all of the
individual's contract obligations;
(iii) the individual is entitled to occupy as a
tenant-stockholder (as defined in 26 U.S.C. 216) of a
cooperative housing corporation (as defined in 26 U.S.C.
216); or
(iv) is a residence described in section 17.9 of this chapter
(before its expiration) that is owned by a trust if the
individual is an individual described in section 17.9 of this
chapter; (before its expiration); and
(C) that consists of a dwelling and includes up to one (1) acre
of land immediately surrounding that dwelling, and any of the
following improvements:
(i) Any number of decks, patios, gazebos, or pools.
(ii) One (1) additional building that is not part of the
dwelling if the building is predominantly used for a
residential purpose and is not used as an investment property
or as a rental property.
(iii) One (1) additional residential yard structure other than
a deck, patio, gazebo, or pool.
Except as provided in subsection (r), the term does not include
property owned by a corporation, partnership, limited liability
company, or other entity not described in this subdivision.
(3) "Principal place of residence" means an individual's true,
fixed, permanent home to which the individual has the
intention of returning after an absence.
(b) Each year a homestead is eligible for a standard deduction from
the assessed value of the homestead for an assessment date. Except as
provided in subsection (n), the deduction provided by this section
applies to property taxes first due and payable for an assessment date
only if an individual has an interest in the homestead described in
subsection (a)(2)(B) on:
(1) the assessment date; or
(2) any date in the same year after an assessment date that a
statement is filed under subsection (e) or section 44 of this
chapter, if the property consists of real property.
If more than one (1) individual or entity qualifies property as a
homestead under subsection (a)(2)(B) for an assessment date, only one
(1) standard deduction from the assessed value of the homestead may
be applied for the assessment date. Subject to subsection (c), the
auditor of the county shall record and make the deduction for the
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individual or entity qualifying for the deduction.
(c) Except as provided in section 40.5 of this chapter, the total
amount of the deduction that a person may receive under this section
for a particular year is:
(1) for assessment dates before January 1, 2025, the lesser of:
(A) sixty percent (60%) of the assessed value of the real
property, mobile home not assessed as real property, or
manufactured home not assessed as real property; or
(B) forty-eight thousand dollars ($48,000); or
(2) for assessment dates after December 31, 2024:
(A) in 2025, forty-eight thousand dollars ($48,000);
(B) in 2026, forty thousand dollars ($40,000);
(C) in 2027, thirty thousand dollars ($30,000);
(D) in 2028, twenty thousand dollars ($20,000); and
(E) in 2029, ten thousand dollars ($10,000).
Beginning with the 2030 assessment date, and each assessment date
thereafter, the deduction amount under this section is zero (0).
Application of the phase down under this section for assessment dates
after December 31, 2024, with regard to mobile homes that are not
assessed as real property and manufactured homes not assessed as real
property shall be construed and applied in the same manner in terms of
timing and consistent with its application for real property.
(d) A person who has sold real property, a mobile home not assessed
as real property, or a manufactured home not assessed as real property
to another person under a contract that provides that the contract buyer
is to pay the property taxes on the real property, mobile home, or
manufactured home may not claim the deduction provided under this
section with respect to that real property, mobile home, or
manufactured home.
(e) Except as provided in sections 17.8 and 44 of this chapter and
subject to section 45 of this chapter, an individual who desires to claim
the deduction provided by this section must file a certified statement on
forms prescribed by the department of local government finance with
the auditor of the county in which the homestead is located. The
statement must include:
(1) the parcel number or key number of the property and the name
of the city, town, or township in which the property is located;
(2) the name of any other location in which the applicant or the
applicant's spouse owns, is buying, or has a beneficial interest in
residential real property;
(3) the names of:
(A) the applicant and the applicant's spouse (if any):
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(i) as the names appear in the records of the United States
Social Security Administration for the purposes of the
issuance of a Social Security card and Social Security
number; or
(ii) that they use as their legal names when they sign their
names on legal documents;
if the applicant is an individual; or
(B) each individual who qualifies property as a homestead
under subsection (a)(2)(B) and the individual's spouse (if any):
(i) as the names appear in the records of the United States
Social Security Administration for the purposes of the
issuance of a Social Security card and Social Security
number; or
(ii) that they use as their legal names when they sign their
names on legal documents;
if the applicant is not an individual; and
(4) either:
(A) the last five (5) digits of the applicant's Social Security
number and the last five (5) digits of the Social Security
number of the applicant's spouse (if any); or
(B) if the applicant or the applicant's spouse (if any) does not
have a Social Security number, any of the following for that
individual:
(i) The last five (5) digits of the individual's driver's license
number.
(ii) The last five (5) digits of the individual's state
identification card number.
(iii) The last five (5) digits of a preparer tax identification
number that is obtained by the individual through the
Internal Revenue Service of the United States.
(iv) If the individual does not have a driver's license, a state
identification card, or an Internal Revenue Service preparer
tax identification number, the last five (5) digits of a control
number that is on a document issued to the individual by the
United States government.
If a form or statement provided to the county auditor under this section,
IC 6-1.1-22-8.1, or IC 6-1.1-22.5-12 includes the telephone number or
part or all of the Social Security number of a party or other number
described in subdivision (4)(B) of a party, the telephone number and
the Social Security number or other number described in subdivision
(4)(B) included are confidential. The statement may be filed in person
or by mail. If the statement is mailed, the mailing must be postmarked
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on or before the last day for filing. The statement applies for that first
year and any succeeding year for which the deduction is allowed.
(f) To obtain the deduction for a desired calendar year under this
section in which property taxes are first due and payable, the individual
desiring to claim the deduction must do the following as applicable:
(1) Complete, date, and file the certified statement described in
subsection (e) on or before January 15 of the calendar year in
which the property taxes are first due and payable.
(2) Satisfy any recording requirements on or before January 15 of
the calendar year in which the property taxes are first due and
payable for a homestead described in subsection (a)(2).
(g) Except as provided in subsection (l), if a person who is
receiving, or seeks to receive, the deduction provided by this section in
the person's name:
(1) changes the use of the individual's property so that part or all
of the property no longer qualifies for the deduction under this
section; or
(2) is not eligible for a deduction under this section because the
person is already receiving:
(A) a deduction under this section in the person's name as an
individual or a spouse; or
(B) a deduction under the law of another state that is
equivalent to the deduction provided by this section;
the person must file a certified statement with the auditor of the county,
notifying the auditor of the person's ineligibility, not more than sixty
(60) days after the date of the change in eligibility. A person who fails
to file the statement required by this subsection may, and claims the
deduction under this section shall, under IC 6-1.1-36-17, be liable for
any additional taxes that would have been due on the property if the
person had filed the statement as required by this subsection plus a
civil penalty equal to ten percent (10%) of the additional taxes due. The
civil penalty imposed under this subsection is in addition to any interest
and penalties for a delinquent payment that might otherwise be due.
One percent (1%) of the total civil penalty collected under this
subsection shall be transferred by the county to the department of local
government finance for use by the department in establishing and
maintaining the homestead property data base under subsection (j) and,
to the extent there is money remaining, for any other purposes of the
department. This amount becomes part of the property tax liability for
purposes of this article.
(h) The department of local government finance may adopt rules or
guidelines concerning the application for a deduction under this
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section.
(i) This subsection does not apply to property in the first year for
which a deduction is claimed under this section if the sole reason that
a deduction is claimed on other property is that the individual or
married couple maintained a principal residence at the other property
on the assessment date in the same year in which an application for a
deduction is filed under this section or, if the application is for a
homestead that is assessed as personal property, on the assessment date
in the immediately preceding year and the individual or married couple
is moving the individual's or married couple's principal residence to the
property that is the subject of the application. Except as provided in
subsection (l), the county auditor may not grant an individual or a
married couple a deduction under this section if:
(1) the individual or married couple, for the same year, claims the
deduction on two (2) or more different applications for the
deduction; and
(2) the applications claim the deduction for different property.
(j) The department of local government finance shall provide secure
access to county auditors to a homestead property data base that
includes access to the homestead owner's name and the numbers
required from the homestead owner under subsection (e)(4) for the sole
purpose of verifying whether an owner is wrongly claiming a deduction
under this chapter or a credit under IC 6-1.1-20.4, IC 6-1.1-20.6, or
IC 6-3.6-5 (before its expiration). Each county auditor shall submit data
on deductions applicable to the current tax year on or before March 15
of each year in a manner prescribed by the department of local
government finance.
(k) A county auditor may require an individual to provide evidence
proving that the individual's residence is the individual's principal place
of residence as claimed in the certified statement filed under subsection
(e). The county auditor may limit the evidence that an individual is
required to submit to a state income tax return, a valid driver's license,
or a valid voter registration card showing that the residence for which
the deduction is claimed is the individual's principal place of residence.
The county auditor may not deny an application filed under section 44
of this chapter because the applicant does not have a valid driver's
license or state identification card with the address of the homestead
property. The department of local government finance shall work with
county auditors to develop procedures to determine whether a property
owner that is claiming a standard deduction or homestead credit is not
eligible for the standard deduction or homestead credit because the
property owner's principal place of residence is outside Indiana.
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(l) A county auditor shall grant an individual a deduction under this
section regardless of whether the individual and the individual's spouse
claim a deduction on two (2) different applications and each
application claims a deduction for different property if the property
owned by the individual's spouse is located outside Indiana and the
individual files an affidavit with the county auditor containing the
following information:
(1) The names of the county and state in which the individual's
spouse claims a deduction substantially similar to the deduction
allowed by this section.
(2) A statement made under penalty of perjury that the following
are true:
(A) That the individual and the individual's spouse maintain
separate principal places of residence.
(B) That neither the individual nor the individual's spouse has
an ownership interest in the other's principal place of
residence.
(C) That neither the individual nor the individual's spouse has,
for that same year, claimed a standard or substantially similar
deduction for any property other than the property maintained
as a principal place of residence by the respective individuals.
A county auditor may require an individual or an individual's spouse to
provide evidence of the accuracy of the information contained in an
affidavit submitted under this subsection. The evidence required of the
individual or the individual's spouse may include state income tax
returns, excise tax payment information, property tax payment
information, driver's license information, and voter registration
information.
(m) If:
(1) a property owner files a statement under subsection (e) to
claim the deduction provided by this section for a particular
property; and
(2) the county auditor receiving the filed statement determines
that the property owner's property is not eligible for the deduction;
the county auditor shall inform the property owner of the county
auditor's determination in writing. If a property owner's property is not
eligible for the deduction because the county auditor has determined
that the property is not the property owner's principal place of
residence, the property owner may appeal the county auditor's
determination as provided in IC 6-1.1-15. The county auditor shall
inform the property owner of the owner's right to appeal when the
county auditor informs the property owner of the county auditor's
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determination under this subsection.
(n) An individual is entitled to the deduction under this section for
a homestead for a particular assessment date if:
(1) either:
(A) the individual's interest in the homestead as described in
subsection (a)(2)(B) is conveyed to the individual after the
assessment date, but within the calendar year in which the
assessment date occurs; or
(B) the individual contracts to purchase the homestead after
the assessment date, but within the calendar year in which the
assessment date occurs;
(2) on the assessment date:
(A) the property on which the homestead is currently located
was vacant land; or
(B) the construction of the dwelling that constitutes the
homestead was not completed; and
(3) either:
(A) the individual files the certified statement required by
subsection (e); or
(B) a sales disclosure form that meets the requirements of
section 44 of this chapter is submitted to the county assessor
on or before December 31 of the calendar year for the
individual's purchase of the homestead.
An individual who satisfies the requirements of subdivisions (1)
through (3) is entitled to the deduction under this section for the
homestead for the assessment date, even if on the assessment date the
property on which the homestead is currently located was vacant land
or the construction of the dwelling that constitutes the homestead was
not completed. The county auditor shall apply the deduction for the
assessment date and for the assessment date in any later year in which
the homestead remains eligible for the deduction. A homestead that
qualifies for the deduction under this section as provided in this
subsection is considered a homestead for purposes of section 37.5 of
this chapter and IC 6-1.1-20.6.
(o) This subsection applies to an application for the deduction
provided by this section that is filed for an assessment date occurring
after December 31, 2013. Notwithstanding any other provision of this
section, an individual buying a mobile home that is not assessed as real
property or a manufactured home that is not assessed as real property
under a contract providing that the individual is to pay the property
taxes on the mobile home or manufactured home is not entitled to the
deduction provided by this section unless the parties to the contract
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comply with IC 9-17-6-17.
(p) This subsection:
(1) applies to an application for the deduction provided by this
section that is filed for an assessment date occurring after
December 31, 2013; and
(2) does not apply to an individual described in subsection (o).
The owner of a mobile home that is not assessed as real property or a
manufactured home that is not assessed as real property must attach a
copy of the owner's title to the mobile home or manufactured home to
the application for the deduction provided by this section.
(q) For assessment dates after 2013, the term "homestead" includes
property that is owned by an individual who:
(1) is serving on active duty in any branch of the armed forces of
the United States;
(2) was ordered to transfer to a location outside Indiana; and
(3) was otherwise eligible, without regard to this subsection, for
the deduction under this section for the property for the
assessment date immediately preceding the transfer date specified
in the order described in subdivision (2).
For property to qualify under this subsection for the deduction provided
by this section, the individual described in subdivisions (1) through (3)
must submit to the county auditor a copy of the individual's transfer
orders or other information sufficient to show that the individual was
ordered to transfer to a location outside Indiana. The property continues
to qualify for the deduction provided by this section until the individual
ceases to be on active duty, the property is sold, or the individual's
ownership interest is otherwise terminated, whichever occurs first.
Notwithstanding subsection (a)(2), the property remains a homestead
regardless of whether the property continues to be the individual's
principal place of residence after the individual transfers to a location
outside Indiana. The property continues to qualify as a homestead
under this subsection if the property is leased while the individual is
away from Indiana and is serving on active duty, if the individual has
lived at the property at any time during the past ten (10) years.
Otherwise, the property ceases to qualify as a homestead under this
subsection if the property is leased while the individual is away from
Indiana. Property that qualifies as a homestead under this subsection
shall also be construed as a homestead for purposes of section 37.5 of
this chapter.
(r) As used in this section, "homestead" includes property that
satisfies each of the following requirements:
(1) The property is located in Indiana and consists of a dwelling
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and includes up to one (1) acre of land immediately surrounding
that dwelling, and any of the following improvements:
(A) Any number of decks, patios, gazebos, or pools.
(B) One (1) additional building that is not part of the dwelling
if the building is predominately used for a residential purpose
and is not used as an investment property or as a rental
property.
(C) One (1) additional residential yard structure other than a
deck, patio, gazebo, or pool.
(2) The property is the principal place of residence of an
individual.
(3) The property is owned by an entity that is not described in
subsection (a)(2)(B).
(4) The individual residing on the property is a shareholder,
partner, or member of the entity that owns the property.
(5) The property was eligible for the standard deduction under
this section on March 1, 2009.
SECTION 55. IC 6-1.1-12-43, AS AMENDED BY P.L.230-2025,
SECTION 37, AND AS AMENDED BY P.L.186-2025, SECTION
292, AND AS AMENDED BY THE TECHNICAL CORRECTIONS
BILL OF THE 2026 GENERAL ASSEMBLY, IS CORRECTED AND
AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1,
2025 (RETROACTIVE)]: Sec. 43. (a) For purposes of this section:
(1) "benefit" refers to a deduction under section 9 (before its
expiration), 11 (before its expiration), 13 (before its expiration),
14, (before its expiration), 16, (before its expiration), 17.4 (before
its expiration), 26 (before its expiration), 29 (before its
expiration), 33 (before its expiration), 34 (before its expiration),
37, or 37.5 of this chapter;
(2) "closing agent" means a person that closes a transaction;
(3) "customer" means an individual who obtains a loan in a
transaction; and
(4) "transaction" means a single family residential:
(A) first lien purchase money mortgage transaction; or
(B) refinancing transaction.
(b) Before closing a transaction after December 31, 2004, a closing
agent must provide to the customer the form referred to in subsection
(c).
(c) Before June 1, 2004, The department of local government
finance shall prescribe the form to be provided by closing agents to
customers under subsection (b). The department shall make the form
available to closing agents, county assessors, county auditors, and
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county treasurers in hard copy and electronic form. County assessors,
county auditors, and county treasurers shall make the form available to
the general public. The form must:
(1) on one (1) side:
(A) list each benefit; and
(B) list the eligibility criteria for each benefit;
(2) on the other side indicate:
(A) each action by and each type of documentation from the
customer required to file for each benefit; and
(B) sufficient instructions and information to permit a party to
terminate a standard deduction under section 37 of this chapter
on any property on which the party or the spouse of the party
will no longer be eligible for the standard deduction under
section 37 of this chapter after the party or the party's spouse
begins to reside at the property that is the subject of the
closing, including an explanation of the tax consequences and
applicable penalties, if a party unlawfully claims a standard
deduction under section 37 of this chapter; and
(3) be printed in one (1) of two (2) or more colors prescribed by
the department of local government finance that distinguish the
form from other documents typically used in a closing referred to
in subsection (b).
(d) A closing agent:
(1) may reproduce the form referred to in subsection (c);
(2) in reproducing the form, must use a print color prescribed by
the department of local government finance; and
(3) is not responsible for the content of the form referred to in
subsection (c) and shall be held harmless by the department of
local government finance from any liability for the content of the
form.
(e) This subsection applies to a transaction that is closed after
December 31, 2009. In addition to providing the customer the form
described in subsection (c) before closing the transaction, a closing
agent shall do the following as soon as possible after the closing, and
within the time prescribed by the department of insurance under
IC 27-7-3-15.5:
(1) To the extent determinable, input the information described in
IC 27-7-3-15.5(c)(2) into the system maintained by the
department of insurance under IC 27-7-3-15.5.
(2) Submit the form described in IC 27-7-3-15.5(c) to the data
base described in IC 27-7-3-15.5(c)(2)(D).
(f) A closing agent to which this section applies shall document the
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closing agent's compliance with this section with respect to each
transaction in the form of verification of compliance signed by the
customer.
(g) Subject to IC 27-7-3-15.5(d), a closing agent is subject to a civil
penalty of twenty-five dollars ($25) for each instance in which the
closing agent fails to comply with this section with respect to a
customer. The penalty:
(1) may be enforced by the state agency that has administrative
jurisdiction over the closing agent in the same manner that the
agency enforces the payment of fees or other penalties payable to
the agency; and
(2) shall be paid into:
(A) the state general fund, if the closing agent fails to comply
with subsection (b); or
(B) the home ownership education account established by
IC 5-20-1-27, if the closing agent fails to comply with
subsection (e) in a transaction that is closed after December
31, 2009.
(h) A closing agent is not liable for any other damages claimed by
a customer because of:
(1) the closing agent's mere failure to provide the appropriate
document to the customer under subsection (b); or
(2) with respect to a transaction that is closed after December 31,
2009, the closing agent's failure to input the information or
submit the form described in subsection (e).
(i) The state agency that has administrative jurisdiction over a
closing agent shall:
(1) examine the closing agent to determine compliance with this
section; and
(2) impose and collect penalties under subsection (g).
SECTION 56. IC 6-1.1-12-46, AS AMENDED BY P.L.230-2025,
SECTION 38, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]: Sec. 46. (a) This section
applies to real property for an assessment date in 2011 or a later year
if:
(1) the real property is not exempt from property taxation for the
assessment date;
(2) title to the real property is transferred after the assessment date
and on or before the December 31 that next succeeds the
assessment date;
(3) the transferee of the real property applies for an exemption
under IC 6-1.1-11 for the next succeeding assessment date; and
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(4) the county property tax assessment board of appeals
determines that the real property is exempt from property taxation
for that next succeeding assessment date.
(b) For the assessment date referred to in subsection (a)(1), real
property is eligible for any deductions for which the transferor under
subsection (a)(2) was eligible for that assessment date under the
following:
(1) IC 6-1.1-12-1 (before its repeal).
(2) IC 6-1.1-12-9 (before its expiration).
(3) IC 6-1.1-12-11 (before its expiration).
(4) IC 6-1.1-12-13 (before its expiration).
(5) IC 6-1.1-12-14.
(6) IC 6-1.1-12-16. (before its expiration).
(7) IC 6-1.1-12-17.4 (before its expiration).
(8) IC 6-1.1-12-18 (before its expiration).
(9) IC 6-1.1-12-22 (before its expiration).
(10) IC 6-1.1-12-37.
(11) IC 6-1.1-12-37.5.
(c) For the payment date applicable to the assessment date referred
to in subsection (a)(1), real property is eligible for the credit for
excessive residential property taxes under IC 6-1.1-20.6 for which the
transferor under subsection (a)(2) would be eligible for that payment
date if the transfer had not occurred.
SECTION 57. IC 6-1.1-12.6-2, AS ADDED BY P.L.70-2008,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2026 (RETROACTIVE)]: Sec. 2. (a) This section
applies only to a model residence that is first assessed as:
(1) a partially completed structure; or
(2) a fully completed structure;
for the assessment date in 2009 or a later year.
(b) Except as provided in subsection (c) and sections 4, 5, and 6 of
this chapter, and subject to sections 7 and 8 of this chapter, an owner
of a model residence is entitled to a deduction from the assessed value
of the model residence in the amount of fifty percent (50%) one
hundred percent (100%) of the assessed value of the model residence
for the following:
(1) Not more than one (1) assessment date for which the model
residence is assessed as a partially completed structure.
(2) The assessment date for which the model residence is first
assessed as a fully completed structure.
(3) The two (2) assessment dates that immediately succeed the
assessment date referred to in subdivision (2).
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(c) A deduction allowed for a model residence under this chapter for
a particular assessment date is terminated if the model residence is
sold:
(1) after the assessment date of that year but before January 1 of
the following year; and
(2) to a person who does not continue to use the real property as
a model residence.
The county auditor shall immediately mail notice of the termination to
the former owner, the property owner, and the township assessor. The
county auditor shall remove the deduction from the tax duplicate and
shall notify the county treasurer of the termination of the deduction.
SECTION 58. IC 6-1.1-12.6-4, AS ADDED BY P.L.70-2008,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2026 (RETROACTIVE)]: Sec. 4. (a) Subject to section
8 of this chapter, a property owner is entitled to a deduction under this
chapter for an assessment date for not more than three (3) ten (10)
model residences in Indiana.
(b) The auditor of a county (referred to in this section as the "first
county") with whom a statement is filed under section 3 of this chapter
shall immediately prepare and transmit a copy of the statement to the
auditor of any other county (referred to in this section as the "second
county") if the property owner that claims the deduction owns or is
buying a model residence located in the second county.
(c) The county auditor of the second county shall note on the copy
of the statement whether the property owner has claimed a deduction
for the current year under section 3 of this chapter for a model
residence located in the second county. The county auditor shall then
return the copy of the statement to the auditor of the first county.
SECTION 59. IC 6-1.1-12.6-8, AS ADDED BY P.L.70-2008,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2026 (RETROACTIVE)]: Sec. 8. The aggregate number
of deductions claimed under this chapter for a particular assessment
date by the owners of model residences who are a part of an affiliated
group may not exceed three (3). ten (10).
SECTION 60. IC 6-1.1-12.8-3, AS ADDED BY P.L.175-2011,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2026 (RETROACTIVE)]: Sec. 3. (a) This chapter
applies only to a residence in inventory that is first assessed as:
(1) a partially completed structure; or
(2) a fully completed structure;
for the assessment date in 2012 or a later year.
(b) Except as provided in subsections (c) and (d) and sections 5 and
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6 of this chapter, and subject to section 7 of this chapter, a residential
builder that is the owner of a residence in inventory is entitled to a
deduction from the assessed value of the residence in inventory in the
amount of fifty percent (50%) one hundred percent (100%) of the
assessed value of the residence in inventory for the following:
(1) Not more than one (1) assessment date for which the residence
in inventory is assessed as a partially completed structure.
(2) The assessment date for which the residence in inventory is
first assessed as a fully completed structure.
(3) The two (2) assessment dates that immediately succeed the
assessment date referred to in subdivision (2).
(c) A deduction allowed for a residence in inventory under this
chapter for a particular assessment date is terminated if title to the
residence in inventory is transferred:
(1) after the assessment date of that year but before January 1 of
the following year; and
(2) to a person for whom the real property does not qualify as a
residence in inventory.
The county auditor shall immediately mail notice of the termination to
the former owner, the property owner, and the township assessor (or the
county assessor if there is no township assessor for the township). The
county auditor shall remove the deduction from the tax duplicate and
shall notify the county treasurer of the termination of the deduction.
(d) A deduction for a residence in inventory under this chapter does
not apply for a particular assessment date if the residence in inventory
is leased for any purpose for any part of the calendar year in which the
assessment date occurs.
SECTION 61. IC 6-1.1-12.8-4, AS AMENDED BY P.L.136-2024,
SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2026 (RETROACTIVE)]: Sec. 4. (a) A property owner
that qualifies for the deduction under this chapter and that desires to
receive the deduction for a calendar year must complete and date a
statement containing the information required by subsection (b) and
file the statement with the county auditor on or before January 15 of the
immediately succeeding calendar year. The township assessor, or the
county assessor if there is no township assessor for the township, shall
verify each statement filed under this section, and the county auditor
shall:
(1) make the deductions; and
(2) notify the county property tax assessment board of appeals of
all deductions approved;
under this section.
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(b) The statement referred to in subsection (a) must be verified
under penalties for perjury and must contain the following information:
(1) The assessed value of the real property for which the person
is claiming the deduction.
(2) The full name and complete business address of the person
claiming the deduction.
(3) The complete address and a brief description of the real
property for which the person is claiming the deduction.
(4) The name of any other county in which the person has applied
for a deduction under this chapter for that assessment date.
(5) The complete address and a brief description of any other real
property for which the person has applied for a deduction under
this chapter for that assessment date.
(6) An affirmation by the owner that the owner is receiving not
more than three (3) ten (10) deductions under this chapter,
including the deduction being applied for by the owner, either:
(A) as the owner of the residence in inventory; or
(B) as an owner that is part of an affiliated group.
(7) An affirmation that the real property has not been leased and
will not be leased for any purpose during the term of the
deduction.
SECTION 62. IC 6-1.1-12.8-9, AS ADDED BY P.L.175-2011,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2026 (RETROACTIVE)]: Sec. 9. (a) Subject to section
10 of this chapter, a property owner is entitled to a deduction under this
chapter for an assessment date for not more than three (3) ten (10)
residences in inventory in Indiana.
(b) The auditor of a county (referred to in this section as the "first
county") with whom a statement is filed under section 4 of this chapter
shall immediately prepare and transmit a copy of the statement to the
auditor of any other county (referred to in this section as the "second
county") if the property owner that claims the deduction owns or is
buying a residence in inventory located in the second county.
(c) The county auditor of the second county shall note on the copy
of the statement whether the property owner has claimed a deduction
for the current year under section 4 of this chapter for a residence in
inventory located in the second county. The county auditor shall then
return the copy of the statement to the auditor of the first county.
SECTION 63. IC 6-1.1-12.8-10, AS ADDED BY P.L.175-2011,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2026 (RETROACTIVE)]: Sec. 10. The aggregate
number of deductions claimed under this chapter for a particular
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assessment date by the owners of residences in inventory who are a part
of an affiliated group may not exceed three (3). ten (10).
SECTION 64. IC 6-1.1-17-1, AS AMENDED BY P.L.230-2025,
SECTION 41, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2026 (RETROACTIVE)]: Sec. 1. (a) On or before
August 1 of each year, the county auditor shall submit a certified
statement of the assessed value for the ensuing year to the department
of local government finance in the manner prescribed by the
department.
(b) The department of local government finance shall make the
certified statement available on the department's computer gateway.
(c) Subject to subsection (d), after the county auditor submits a
certified statement under subsection (a) or an amended certified
statement under this subsection with respect to a political subdivision
and before the department of local government finance certifies its
action with respect to the political subdivision under section 16(i) of
this chapter, the county auditor may amend the information concerning
assessed valuation included in the earlier certified statement. The
county auditor shall, in a manner prescribed by the department, submit
a certified statement amended under this subsection to the department
of local government finance by the later of:
(1) September 1;
(2) fifteen (15) days after the original certified statement is
submitted to the department under subsection (a); or
(3) fifteen (15) days after the department of local government
finance notifies the county auditor of an error in the original
certified statement submitted under subsection (a) that the
department determines must be corrected.
(d) Before the county auditor makes an amendment under
subsection (c), the county auditor must provide an opportunity for
public comment on the proposed amendment at a public hearing. The
county auditor must give notice of the hearing under IC 5-3-1. written
notice of the amendment to the county fiscal body, the department
of local government finance, and the fiscal officers of the affected
taxing units within the county. If the county auditor makes the
amendment as a result of information provided to the county auditor by
an assessor, the county auditor shall also give notice of the public
hearing amendment to the assessor.
(e) Beginning in 2018, each county auditor shall submit to the
department of local government finance parcel level data of certified
net assessed values as required by the department. A county auditor
shall submit the parcel level data in the manner and format required by
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the department and according to a schedule determined by the
department.
(f) When the county auditor submits the certified statement under
subsection (a), the county auditor shall exclude the amount of assessed
value for any property located in the county for which:
(1) an appeal has been filed under IC 6-1.1-15; and
(2) there is no final disposition of the appeal as of the date the
county auditor submits the certified statement under subsection
(a).
The county auditor may appeal to the department of local government
finance to include the amount of assessed value under appeal within a
taxing district for that calendar year.
(f) If the county auditor fails to submit a certified statement of
the assessed value for the ensuing year to the department of local
government finance on or before August 1 in accordance with
subsection (a), then the county auditor shall provide electronic
notice by August 1 of the same calendar year to the county fiscal
body, the department of local government finance, and each
political subdivision in the county subject to section 16 of this
chapter. The electronic notice must include a written statement
acknowledging noncompliance and detail the reasons why the
statutory deadline set forth in subsection (a) was not met.
(g) The department of local government finance shall, before
February 2, 2027, and before February 2 of each year thereafter,
submit a report of the counties that failed to meet the statutory
deadline set forth in subsection (a) to the legislative services agency
for distribution to the members of the legislative council. The
report must be in an electronic format under IC 5-14-6.
SECTION 65. IC 6-1.1-17-5.4, AS AMENDED BY P.L.230-2025,
SECTION 42, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 5.4. (a) Not later than March 2 of each year, the
fiscal officer of a political subdivision shall submit a statement to the
department of local government finance attesting that the political
subdivision uploaded any contract entered into during the immediately
preceding year:
(1) if the total cost of the contract to the political subdivision
exceeds fifty thousand dollars ($50,000) during the term of the
contract as required by IC 5-14-3.8-3.5(c); and
(2) related to the provision of fire services or emergency medical
services to the Indiana transparency website as required by
IC 5-14-3.8-3.5(d).
(b) The department of local government finance may not approve
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the budget of a political subdivision or a supplemental appropriation
for a political subdivision until the political subdivision files the
attestation under subsection (a).
SECTION 66. IC 6-1.1-18-28, AS AMENDED BY P.L.236-2023,
SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 28. (a) This section applies to a township if:
(1) the township has previously submitted a petition, or
petitions, under this section in any year after December 31,
2016;
(2) the sum of all adjustments determined under STEP
THREE of subsection (c) for the petition or petitions
described in subdivision (1) equals fifteen-hundredths (0.15);
and
(3) the percentage growth in the township's assessed value for
the preceding year compared to the year immediately before
the preceding year is:
(A) at least equal to the maximum levy growth quotient
determined under IC 6-1.1-18.5-2 for the preceding year
multiplied by two (2); and
(B) not more than the maximum levy growth quotient
determined under IC 6-1.1-18.5-2 for the preceding year
multiplied by four (4).
(b) The executive of a township may, upon approval by the
township fiscal body, submit a petition to the department of local
government finance for an increase in the township's maximum
permissible ad valorem property tax levy for its township firefighting
and emergency services fund under IC 36-8-13-4(a)(1) or the levies for
the township firefighting fund and township emergency services fund
described in IC 36-8-13-4(a)(2), as applicable, for property taxes for
any year for which a petition is submitted under this section.
(b) (c) Subject to subsection (e), if the township submits a petition
as provided in subsection (a) (b) before April June 1 of a year, the
department of local government finance shall increase the township's
maximum permissible ad valorem property tax levy for the township
firefighting and emergency services fund under IC 36-8-13-4(a)(1) or
the combined levies for the township firefighting fund and township
emergency services fund described in IC 36-8-13-4(a)(2), as
applicable, for property taxes first due and payable in the immediately
succeeding year by using the following formula for purposes of
subsection (c)(2): (d)(2):
STEP ONE: Determine the percentage increase in the population,
as determined by the township fiscal body and as may be
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prescribed by the department of local government finance, that is
within the fire protection and emergency services area of the
township during the ten (10) year period immediately preceding
the year in which the petition is submitted under subsection (a).
(b). The township fiscal body may use the most recently available
population data issued by the Bureau of the Census during the ten
(10) year period immediately preceding the petition.
STEP TWO: Determine the greater of zero (0) or the result of:
(A) the STEP ONE percentage; minus
(B) six percent (6%);
expressed as a decimal.
STEP THREE: Determine a rate that is the lesser of:
(A) fifteen-hundredths (0.15); or
(B) the STEP TWO result.
STEP FOUR: Reduce the STEP THREE rate by any rate increase
in the township's property tax rate or rates for its township
firefighting and emergency services fund, township firefighting
fund, or township emergency services fund, as applicable, within
the immediately preceding ten (10) year period that was made
based on a petition submitted by the township under this section.
(c) (d) The township's maximum permissible ad valorem property
tax levy for its township firefighting and emergency services fund
under IC 36-8-13-4(a)(1) or the combined levies for the township
firefighting fund and township emergency services fund described in
IC 36-8-13-4(a)(2) for property taxes first due and payable in a given
year, as adjusted under this section, shall be calculated as:
(1) the amount of the ad valorem property tax levy increase for
the township firefighting and emergency services fund under
IC 36-8-13-4(a)(1) or the combined levies for the township
firefighting fund and township emergency services fund described
in IC 36-8-13-4(a)(2), as applicable, without regard to this
section; plus
(2) an amount equal to the result of:
(A) the rate determined under the formula in subsection (b);
(c); multiplied by
(B) the net assessed value of the fire protection and emergency
services area divided by one hundred (100).
The calculation under this subsection shall be used in the determination
of the township's maximum permissible ad valorem property tax levy
under IC 36-8-13-4 for property taxes first due and payable in the first
year of the increase and thereafter.
(e) Notwithstanding the rate limitation in STEP THREE of
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subsection (c), a township may submit a petition under subsection
(b) to increase the township's maximum permissible ad valorem
property tax levy for its township firefighting and emergency
services fund under IC 36-8-13-4(a)(1) or the levies for the
township firefighting fund and township emergency services fund
described in IC 36-8-13-4(a)(2), as applicable, for property taxes
first due and payable in the immediately succeeding year as
determined under the formula under subsection (c), subject to the
following:
(1) The amount determined under subsection (c) may not
exceed the result of:
(A) the STEP TWO result in subsection (c); multiplied by
(B) eight-tenths (0.8).
(2) The rate, as adjusted under this section and as certified by
the department of local government finance for the township's
maximum permissible ad valorem property tax levy for:
(A) its township firefighting and emergency services fund
under IC 36-8-13-4(a)(1); or
(B) the levies for the township firefighting fund and
township emergency services fund described in
IC 36-8-13-4(a)(2);
as applicable, may not exceed a rate determined by the
formula under subsection (f).
(3) STEP FOUR of subsection (c) applies to any petition the
executive of the township subsequently submits after
submitting an initial petition after December 31, 2025, under
this section.
(f) The rate limitation described in subsection (e)(2) shall be
determined using the following formula:
STEP ONE: Determine the sum of:
(A) the rate certified by the department of local
government finance for the current year for the
township's:
(i) township firefighting and emergency services fund
under IC 36-8-13-4(a)(1); or
(ii) levies for the township firefighting fund and township
emergency services fund described in IC 36-8-13-4(a)(2);
as applicable; plus
(B) the amount determined under STEP THREE of
subsection (c).
STEP TWO: Determine the lesser of:
(A) twenty-hundredths (0.20); or
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(B) the STEP ONE result.
SECTION 67. IC 6-1.1-18-29 IS REPEALED [EFFECTIVE UPON
PASSAGE]. Sec. 29. (a) The board of trustees of a fire protection
district may, upon approval by the county legislative body, submit a
petition to the department of local government finance for an increase
in the fire protection district's maximum permissible ad valorem
property tax levy for property taxes first due and payable in 2021 or for
any year thereafter for which a petition is submitted under this section.
(b) If a petition is submitted as provided in subsection (a) before
August 1, 2020, or April 1 of a year thereafter, the department of local
government finance shall increase the fire protection district's
maximum permissible ad valorem property tax levy for property taxes
first due and payable in the immediately succeeding year by using the
following formula for purposes of subsection (c)(2):
STEP ONE: Determine the percentage increase in the population,
as determined by the county legislative body and as may be
prescribed by the department of local government finance, that is
within the fire protection district area during the ten (10) year
period immediately preceding the year in which the petition is
submitted under subsection (a). The county legislative body may
use the most recently available population data issued by the
Bureau of the Census during the ten (10) year period immediately
preceding the petition.
STEP TWO: Determine the greater of zero (0) or the result of:
(A) the STEP ONE percentage; minus
(B) six percent (6%);
expressed as a decimal.
STEP THREE: Determine a rate that is the lesser of:
(A) fifteen-hundredths (0.15); or
(B) the STEP TWO result.
STEP FOUR: Reduce the STEP THREE rate by any rate increase
in the fire protection district's property tax rate within the
immediately preceding ten (10) year period that was made based
on a petition submitted by the fire protection district under this
section.
(c) The fire protection district's maximum permissible ad valorem
property tax levy for property taxes first due and payable in a given
year, as adjusted under this section, shall be calculated as:
(1) the amount of the ad valorem property tax levy increase for
the fire protection district without regard to this section; plus
(2) an amount equal to the result of:
(A) the rate determined under the formula in subsection (b);
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multiplied by
(B) the net assessed value of the fire protection district area
divided by one hundred (100).
The calculation under this subsection shall be used in the determination
of the fire protection district's maximum permissible ad valorem
property tax levy for property taxes first due and payable in the first
year of the increase and thereafter.
SECTION 68. IC 6-1.1-18-29.5 IS REPEALED [EFFECTIVE
UPON PASSAGE]. Sec. 29.5. (a) The executive of a unit serving as the
provider unit of a fire protection territory may, upon approval by the
provider unit's fiscal body, submit a petition to the department of local
government finance for an increase in the fire protection territory's
maximum permissible ad valorem property tax levy for its fire
protection territory fund under IC 36-8-19-8 for property taxes first due
and payable in 2023 or for any year thereafter for which a petition is
submitted under this section.
(b) If a petition is submitted as provided in subsection (a) before
August 1, 2022, or April 1 of a year thereafter, the department of local
government finance shall increase the fire protection territory's
maximum permissible ad valorem property tax levy for the fire
protection territory fund under IC 36-8-19-8 for property taxes first due
and payable in the immediately succeeding year by using the following
formula for purposes of subsection (c)(2):
STEP ONE: Determine the percentage increase in the population,
as determined by the provider unit's fiscal body and as may be
prescribed by the department of local government finance, that is
within the fire protection territory area during the ten (10) year
period immediately preceding the year in which the petition is
submitted under subsection (a). The provider unit's fiscal body
may use the most recently available population data issued by the
Bureau of the Census during the ten (10) year period immediately
preceding the petition.
STEP TWO: Determine the greater of zero (0) or the result of:
(A) the STEP ONE percentage; minus
(B) six percent (6%);
expressed as a decimal.
STEP THREE: Determine a rate that is the lesser of:
(A) fifteen-hundredths (0.15); or
(B) the STEP TWO result.
STEP FOUR: Reduce the STEP THREE rate by any rate increase
in the fire protection territory's property tax rate for its fire
protection territory fund within the immediately preceding ten
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(10) year period that was made based on a petition submitted by
the fire protection territory under this section.
(c) The fire protection territory's maximum permissible ad valorem
property tax levy for its fire protection territory fund under
IC 36-8-19-8 for property taxes first due and payable in a given year,
as adjusted under this section, shall be calculated as:
(1) the amount of the ad valorem property tax levy increase for
the fire protection territory fund without regard to this section;
plus
(2) an amount equal to the result of:
(A) the rate determined under the formula in subsection (b);
multiplied by
(B) the net assessed value of the fire protection territory area
divided by one hundred (100).
The calculation under this subsection shall be used in the determination
of the fire protection territory's maximum permissible ad valorem
property tax levy under IC 36-8-19-8 for property taxes first due and
payable in the first year of the increase and thereafter.
SECTION 69. IC 6-1.1-18.5-3, AS AMENDED BY P.L.68-2025,
SECTION 60, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2029]: Sec. 3. (a) A civil taxing unit may not impose an
ad valorem property tax levy for an ensuing calendar year that exceeds
the amount determined in the last STEP of the following STEPS:
STEP ONE: Determine the civil taxing unit's maximum
permissible ad valorem property tax levy for the preceding
calendar year.
STEP TWO: Multiply the amount determined in STEP ONE by
the amount determined in the last STEP of section 2(b) of this
chapter.
STEP THREE: Determine the lesser of one and fifteen hundredths
(1.15) or the quotient (rounded to the nearest ten-thousandth
(0.0001)), of the assessed value of all taxable property subject to
the civil taxing unit's ad valorem property tax levy for the ensuing
calendar year, divided by the assessed value of all taxable
property that is subject to the civil taxing unit's ad valorem
property tax levy for the ensuing calendar year and that is
contained within the geographic area that was subject to the civil
taxing unit's ad valorem property tax levy in the preceding
calendar year.
STEP FOUR: Determine the greater of the amount determined in
STEP THREE or one (1).
STEP FIVE: Multiply the amount determined in STEP TWO by
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the amount determined in STEP FOUR.
STEP SIX: Add the amount determined under STEP TWO to the
amount of an excessive levy appeal granted under section 13 of
this chapter for the ensuing calendar year.
STEP SEVEN: Determine the greater of STEP FIVE or STEP
SIX.
(b) In the case of a county that was covered by IC 6-3.6-11-1 (before
its repeal), the maximum permissible property tax levy for the civil
taxing unit under STEP ONE of subsection (a) shall be increased by
the amount determined under subsection (c) to the extent and in the
amount that revenue from a levy freeze was applied to adjust the civil
taxing unit's maximum permissible property tax levy in the tax year
immediately preceding the repeal of IC 6-3.6-11-1. The increase shall
apply to each tax year after the repeal.
(c) Notwithstanding any other provision of law, if a county has a
stabilization fund, the county may use a combination of money in the
stabilization from that fund for operations of the county in lieu of and
a maximum levy increases increase pursuant to this subsection (b). A
county to which this subsection applies shall adopt a plan to phase in
a multi-year gradual spend down of money in its stabilization fund or
other available funds over a specified number of years that allows for
the gradual increase of the county's levy in combination with money
from its stabilization fund.
SECTION 70. IC 6-1.1-18.5-7, AS AMENDED BY P.L.159-2020,
SECTION 32, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2026 (RETROACTIVE)]: Sec. 7. (a) A civil taxing unit
is not subject to the levy limits imposed by section 3 of this chapter for
an ensuing calendar year if the civil taxing unit did not adopt an ad
valorem property tax levy for the immediately preceding calendar year.
exist as of January 1 in the calendar year that immediately
precedes the ensuing calendar year.
(b) If under subsection (a) a civil taxing unit is not subject to the
levy limits imposed under section 3 of this chapter for an ensuing
calendar year, the civil taxing unit shall, before June 30 of in the
immediately preceding year, refer its proposed adopt its budget, ad
valorem property tax levy, and property tax rate for the ensuing
calendar year to and file the adopted budget, ad valorem property
tax levy, and property tax rate with the department of local
government finance as required by IC 6-1.1-17-5. The department of
local government finance shall make a final determination of review
the civil taxing unit's budget, ad valorem property tax levy, and
property tax rate for the ensuing calendar year to ensure the adopted
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budget is fundable based on the civil taxing unit's adopted tax levy
and estimates of available revenues. If the adopted budget is
fundable, the department of local government finance shall certify
the adopted ad valorem property tax levy for the ensuing calendar
year. However, a civil taxing unit may not impose a property tax levy
for an ensuing calendar year if the unit did not exist as of January 1 of
the immediately preceding year.
(c) This subsection does not apply to an ad valorem property tax
levy imposed by a civil taxing unit for fire protection services within
a fire protection territory under IC 36-8-19. In determining a budget, ad
valorem property tax levy, and property tax rate under subsection (b),
the department shall consider the effect of a property tax levy on a local
income tax distribution to the civil taxing unit under IC 6-3.6-6.
SECTION 71. IC 6-1.1-18.5-9.8, AS AMENDED BY P.L.184-2016,
SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 9.8. (a) For purposes of determining the property
tax levy limit imposed on a city, town, or county under section 3 of this
chapter, the city, town, or county's ad valorem property tax levy for a
particular calendar year does not include an amount equal to the
amount of ad valorem property taxes that would be first due and
payable to the city, town, or county during the ensuing calendar year if
the taxing unit imposed the maximum permissible a certified property
tax rate per one hundred dollars ($100) of assessed valuation that the
civil taxing unit may impose for the particular calendar year under the
authority of IC 36-9-14.5 (in the case of a county) or IC 36-9-15.5 (in
the case of a city or town).
(b) Before July 15 of each year, the department of local government
finance shall provide to each county, city, and town an estimate of the
maximum permissible property tax rate per one hundred dollars ($100)
of assessed valuation that the county, city, or town may impose for the
ensuing year under IC 36-9-14.5 (in the case of a county) or
IC 36-9-15.5 (in the case of a city or town).
SECTION 72. IC 6-1.1-18.5-33 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 33. (a) This section applies
only to Miami Township in Cass County.
(b) Subject to subsection (c), the executive of a township
described in subsection (a) may, after approval by the fiscal body
of the township, and before August 1, 2026, submit a petition to the
department of local government finance requesting an increase in
the township's maximum permissible ad valorem property tax levy
for property taxes first due and payable in 2027.
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(c) Before the fiscal body of the township may approve a
petition under subsection (b), the fiscal body of the township shall
hold a public hearing on the petition. The fiscal body shall give
notice of the public hearing under IC 5-3-1. At the public hearing,
the fiscal body shall make available to the public the following:
(1) A fiscal plan describing the need for the increase to the
levy and the expenditures for which the revenue generated
from the increase to the levy will be used.
(2) A statement that the proposed increase will be a
permanent increase to the township's maximum permissible
ad valorem property tax levy.
(3) The estimated effect of the proposed increase on
taxpayers.
After the fiscal body approves the petition, the township shall
immediately notify the other civil taxing units and school
corporations in the county that are located in a taxing district
where the township is also located.
(d) If the executive of the township submits a petition under
subsection (b), the department of local government finance shall
increase the maximum permissible ad valorem property tax levy
for property taxes first due and payable in 2027 by twelve
thousand one hundred sixty-seven dollars ($12,167).
(e) The township's maximum permissible ad valorem property
tax levy for property taxes first due and payable in 2027, as
adjusted under this section, shall be used in the determination of
the township's maximum permissible ad valorem property tax levy
under IC 6-1.1-18.5 for property taxes first due and payable in
2028 and thereafter.
(f) This section expires June 30, 2029.
SECTION 73. IC 6-1.1-20-5, AS AMENDED BY P.L.146-2008,
SECTION 195, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2027]: Sec. 5. (a) When the proper officers of
a political subdivision decide to issue bonds or enter into leases in a
total amount which exceeds five thousand dollars ($5,000), they shall
give notice of the decision by:
(1) posting; and
(2) publication once each week for two (2) weeks.
The notice required by this section shall be posted in three (3) public
places in the political subdivision and published in accordance with
IC 5-3-1-4. IC 5-3-1-1.5. The decision to issue bonds may be a
preliminary decision.
(b) This subsection does not apply to bonds or lease rental
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agreements for which a political subdivision:
(1) after June 30, 2008, makes:
(A) a preliminary determination as described in section 3.1 or
3.5 of this chapter; or
(B) a decision as described in subsection (a); or
(2) in the case of bonds or lease rental agreements not subject to
section 3.1 or 3.5 of this chapter and not subject to subsection (a),
adopts a resolution or ordinance authorizing the bonds or lease
rental agreement after June 30, 2008.
Ten (10) or more taxpayers who will be affected by the proposed
issuance of the bonds and who wish to object to the issuance on the
grounds that it is unnecessary or excessive may file a petition in the
office of the auditor of the county in which the political subdivision is
located. The petition must be filed within fifteen (15) days after the
notice required by subsection (a) is given, and it must contain the
objections of the taxpayers and facts which show that the proposed
issue is unnecessary or excessive. When taxpayers file a petition in the
manner prescribed in this subsection, the county auditor shall
immediately forward a certified copy of the petition and any other
relevant information to the department of local government finance.
SECTION 74. IC 6-1.1-20.3-6.5, AS AMENDED BY P.L.241-2017,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 6.5. (a) After the board receives a petition
concerning a political subdivision under section 6(a), 6(b)(2), or 6(c)
of this chapter, the board may designate the political subdivision as a
distressed political subdivision if at least one (1) of the following
conditions applies to the political subdivision:
(1) The political subdivision has defaulted in payment of principal
or interest on any of its bonds or notes.
(2) The political subdivision has failed to make required
payments to payroll employees for thirty (30) days or two (2)
consecutive payrolls.
(3) The political subdivision has failed to make required
payments to judgment creditors for sixty (60) days beyond the
date of the recording of the judgment.
(4) The political subdivision, for at least thirty (30) days beyond
the due date, has failed to do any of the following:
(A) Forward taxes withheld on the incomes of employees.
(B) Transfer employer or employee contributions due under
the Federal Insurance Contributions Act (FICA).
(C) Deposit the political subdivision's minimum obligation
payment to a pension fund.
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(5) The political subdivision has accumulated a deficit equal to
eight percent (8%) or more of the political subdivision's revenues.
For purposes of this subdivision, "deficit" means a negative fund
balance calculated as a percentage of revenues at the end of a
budget year for any governmental or proprietary fund. The
calculation must be presented on an accrual basis according to
generally accepted accounting principles.
(6) The political subdivision has sought to negotiate a resolution
or an adjustment of claims that in the aggregate:
(A) exceed thirty percent (30%) of the political subdivision's
anticipated annual revenues; and
(B) are ninety (90) days or more past due.
(7) The political subdivision has carried over interfund loans for
the benefit of the same fund at the end of two (2) successive
years.
(8) The political subdivision has been severely affected, as
determined by the board, as a result of granting the property tax
credits under IC 6-1.1-20.6.
(9) In addition to the conditions listed in subdivisions (1) through
(8), and in the case of a school corporation, the board may also
designate a school corporation as a distressed political
subdivision if at least one (1) of the following conditions applies:
(A) The school corporation has:
(i) issued refunding bonds under IC 5-1-5-2.5 or
IC 5-1-5-2.6; or
(ii) adopted a resolution under IC 5-1-5-2.5 or IC 5-1-5-2.6;
making the determinations and including the information
specified in IC 5-1-5-2.5(g) and IC 5-1-5-2.6(d) and
IC 5-1-5-2.6(e).
(B) The ratio that the amount of the school corporation's debt
(as determined in December 2010) bears to the school
corporation's 2011 ADM ranks in the highest ten (10) among
all school corporations.
(C) The ratio that the amount of the school corporation's debt
(as determined in December 2010) bears to the school
corporation's total assessed valuation for calendar year 2011
ranks in the highest ten (10) among all school corporations.
(D) The amount of homestead assessed valuation in the school
corporation for calendar year 2011 was at least sixty percent
(60%) of the total amount of assessed valuation in the school
corporation for calendar year 2011.
The board may consider whether a political subdivision has fully
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exercised all the local options available to the political subdivision,
such as a local option income tax or a local option income tax rate
increase or, in the case of a school corporation, an operating
referendum.
(b) If the board designates a political subdivision as distressed under
subsection (a), the board shall review the designation annually to
determine if the distressed political subdivision meets at least one (1)
of the conditions listed in subsection (a).
(c) If the board designates a political subdivision as a distressed
political subdivision under subsection (a), the board shall immediately
notify:
(1) the treasurer of state;
(2) the county auditor and county treasurer of each county in
which the distressed political subdivision is wholly or partially
located; and
(3) in the case of a school corporation, the Indiana education
employment relations board established by IC 20-29-3-1;
that the board has designated the political subdivision as a distressed
political subdivision.
SECTION 75. IC 6-1.1-20.6-2.4, AS ADDED BY P.L.146-2008,
SECTION 217, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 2.4. As used in this chapter,
(1) "manufactured home" has the meaning set forth in
IC 22-12-1-16; and IC 9-13-2-96(a). The term includes a mobile
home (as defined in IC 9-13-2-103.2).
(2) "mobile home" has the meaning set forth in IC 16-41-27-4.
SECTION 76. IC 6-1.1-20.6-3, AS AMENDED BY P.L.68-2025,
SECTION 73, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2026 (RETROACTIVE)]: Sec. 3. As used in this
chapter, "property tax liability" means, for purposes of:
(1) this chapter, other than section 7.7 or 8.5 of this chapter,
liability for the tax imposed on property under this article
determined after application of all credits and deductions under
this article or IC 6-3.6, except the credit granted by section 7 or
7.5 of this chapter, but does not include any interest or penalty
imposed under this article;
(2) section 8.5 of this chapter, liability for the tax imposed on
property under this article determined after application of all
credits and deductions under this article or IC 6-3.6, including the
credits granted by sections 7, 7.5, and 7.7 of this chapter, but not
including the credit granted under section 8.5 of this chapter or
any interest or penalty imposed under this article; and
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(3) section 7.7 of this chapter, liability for the tax imposed on
property under this article determined after application of all
credits and deductions under this article or IC 6-3.6, including the
credit granted by section 7 or 7.5 of this chapter, but not including
the credit granted under IC 6-3.6-6-3.1, the credits granted
under section 7.7 or 8.5 of this chapter or any interest or penalty
imposed under this article.
SECTION 77. IC 6-1.1-20.6-9.5, AS AMENDED BY P.L.272-2019,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]: Sec. 9.5. (a) This section
applies only to credits under this chapter against property taxes first
due and payable after December 31, 2006.
(b) The application of the credit under this chapter, IC 6-1.1-49, or
IC 6-1.1-51.3 results in a reduction of the property tax collections of
each political subdivision in which the credit is applied. Except as
provided in IC 20-46-1 and IC 20-46-9, a political subdivision may not
increase its property tax levy to make up for that reduction.
(c) A political subdivision may not borrow money to compensate the
political subdivision or any other political subdivision for the reduction
of property tax collections referred to in subsection (b).
SECTION 78. IC 6-1.1-20.6-9.8, AS AMENDED BY P.L.9-2024,
SECTION 171, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2026 (RETROACTIVE)]: Sec. 9.8. (a)
This section applies to property taxes first due and payable after
December 31, 2009.
(b) The following definitions apply throughout this section:
(1) "Debt service obligations of a political subdivision" refers to:
(A) the principal and interest payable during a calendar year
on bonds; and
(B) lease rental payments payable during a calendar year on
leases;
of a political subdivision payable from ad valorem property taxes.
(2) "Protected taxes" refers to the following:
(A) Property taxes that are exempted from the application of
a credit granted under section 7 or 7.5 of this chapter by
section 7(b), 7(c), 7.5(b), or 7.5(c) of this chapter or another
law.
(B) Property taxes imposed by a political subdivision to pay
for debt service obligations of a political subdivision that are
not exempted from the application of a credit granted under
section 7 or 7.5 of this chapter by section 7(b), 7(c), 7.5(b), or
7.5(c) of this chapter or any other law. Property taxes
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described in this clause are subject to the credit granted under
section 7 or 7.5 of this chapter by section 7(b), 7(c), 7.5(b), or
7.5(c) of this chapter regardless of their designation as
protected taxes.
(3) "Unprotected taxes" refers to property taxes that are not
protected taxes.
(c) Except as provided in section 9.9 of this chapter, the total
amount of revenue to be distributed to the fund for which the protected
taxes were imposed shall be determined as if no credit were granted
under section 7, or 7.5, or 7.7 of this chapter or under IC 6-1.1-49.
The total amount of the loss in revenue resulting from the granting of
credits under section 7, or 7.5, or 7.7 of this chapter or under
IC 6-1.1-49 must reduce only the amount of unprotected taxes
distributed to a fund using the following criteria:
(1) The reduction may be allocated in the amounts determined by
the political subdivision using a combination of unprotected taxes
of the political subdivision in those taxing districts in which the
credit caused a reduction in protected taxes.
(2) The tax revenue and each fund of any other political
subdivisions must not be affected by the reduction.
(d) When:
(1) the revenue that otherwise would be distributed to a fund
receiving only unprotected taxes is reduced entirely under
subsection (c) and the remaining revenue is insufficient for a fund
receiving protected taxes to receive the revenue specified by
subsection (c); or
(2) there is not a fund receiving only unprotected taxes from
which to distribute revenue;
the revenue distributed to the fund receiving protected taxes must also
be reduced. If the revenue distributed to a fund receiving protected
taxes is reduced, the political subdivision may transfer money from one
(1) or more of the other funds of the political subdivision to offset the
loss in revenue to the fund receiving protected taxes. The transfer is
limited to the amount necessary for the fund receiving protected taxes
to receive the revenue specified under subsection (c). The amount
transferred shall be specifically identified as a debt service obligation
transfer for each affected fund.
SECTION 79. IC 6-1.1-20.6-9.9, AS AMENDED BY P.L.236-2023,
SECTION 39, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2026 (RETROACTIVE)]: Sec. 9.9. (a) This subsection
applies to credits allocated before January 1, 2024. If:
(1) a school corporation after July 1, 2016, issues new bonds or
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enters into a new lease rental agreement for which the school
corporation is imposing or will impose a debt service levy other
than:
(A) to refinance or renew prior bond or lease rental obligations
existing before January 1, 2017; or
(B) indebtedness that is approved in a local public question or
referendum under IC 6-1.1-20 or any other law; and
(2) the school corporation's:
(A) total debt service levy is greater than the school
corporation's total debt service levy in 2016; and
(B) total debt service tax rate is greater than the school
corporation's total debt service tax rate in 2016;
the school corporation is not eligible to allocate credits proportionately
under this section.
(b) This subsection applies to credits allocated after December 31,
2023. A school corporation is not eligible to allocate credits
proportionately under this section, if a school corporation after July 1,
2023, issues new bonds or enters into a new lease rental agreement for
which the school corporation is imposing or will impose a debt service
levy other than:
(1) to refinance or renew prior bond or lease rental obligations
existing before January 1, 2024, but only if the refinancing or
renewal is for a lower interest rate; or
(2) indebtedness that is approved in a local public question or
referendum under IC 6-1.1-20 or any other law.
(c) Subject to subsection (a) (before January 1, 2024) and
subsection (b) (after December 31, 2023), a school corporation is
eligible to allocate credits proportionately under this section for 2019,
2020, 2021, 2022, 2023, 2024, 2025, or 2026 if the school corporation's
percentage computed under this subsection is at least ten percent (10%)
for its operations fund levy as certified by the department of local
government finance. A school corporation shall compute its percentage
under this subsection as determined under the following formula:
STEP ONE: Determine the amount of credits granted under this
chapter against the school corporation's levy for the school
corporation's operations fund.
STEP TWO: Determine the amount of the school corporation's
levy that is attributable to new debt incurred after June 30, 2019,
but is not attributable to the debt service levy described in
subsection (a)(1)(B) (before January 1, 2024) or subsection (b)(2)
(after December 31, 2023).
STEP THREE: Determine the result of the school corporation's
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total levy minus any referendum levy.
STEP FOUR: Subtract the STEP TWO amount from the STEP
THREE amount.
STEP FIVE: Divide the STEP FOUR amount by the STEP
THREE amount expressed as a percentage.
STEP SIX: Multiply the STEP ONE amount by the STEP FIVE
percentage.
STEP SEVEN: Determine the school corporation's levy for the
school corporation's operations fund.
STEP EIGHT: Divide the STEP SIX amount by the STEP SEVEN
amount expressed as a percentage.
The computation must be made by taking into account the requirements
of section 9.8 of this chapter regarding protected taxes and the impact
of credits granted under this chapter on the revenue to be distributed to
the school corporation's operations fund for the particular year.
(d) A school corporation that desires to be an eligible school
corporation under this section must, before May 1 of the year for which
it wants a determination, submit a written request for a certification by
the department of local government finance that the computation of the
school corporation's percentage under subsection (c) is correct. The
department of local government finance shall, not later than June 1 of
that year, determine whether the percentage computed by the school
corporation under subsection (c) is accurate and certify whether the
school corporation is eligible under this section.
(e) For a school corporation that is certified as eligible under this
section, the school corporation may allocate the effect of the credits
granted under this chapter and IC 6-1.1-49 proportionately among all
the school corporation's property tax funds that are not exempt under
section 7.5(b) or 7.5(c) of this chapter, based on the levy for each fund
and without taking into account the requirements of section 9.8 of this
chapter regarding protected taxes as determined under the following
formula:
STEP ONE: Determine the product of:
(A) the percentage determined under STEP EIGHT of
subsection (c); multiplied by
(B) five (5).
STEP TWO: Determine the lesser of the STEP ONE percentage
or one hundred percent (100%).
STEP THREE: Determine the product of:
(A) the amount determined under STEP SIX of subsection (c);
multiplied by
(B) the STEP TWO percentage.
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The school corporation may allocate the amount of credits determined
under STEP THREE proportionately under this section. The
department of local government finance shall include in its certification
of an eligible school corporation under subsection (d) the amount of
credits that the school corporation may allocate proportionately as
determined under this subsection.
(f) This section expires January 1, 2027.
SECTION 80. IC 6-1.1-20.6-14 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 14. (a) This section applies
only for property taxes first due and payable in 2026.
(b) Notwithstanding any provision to the contrary in this
chapter, a school corporation is eligible to allocate the effects of
supplemental homestead credits granted under IC 6-1.1-20.6-7.7
for property taxes first due and payable in 2026 proportionately
among all the school corporation's property tax funds that are not
exempt under section 7.5(b) or 7.5(c) of this chapter, based on the
levy for each fund and without taking into account the
requirements of section 9.8 of this chapter regarding protected
taxes under this section, if the superintendent of the school
corporation submits written notification to the department of local
government finance not later than May 15, 2026.
(c) This section expires January 1, 2027.
SECTION 81. IC 6-1.1-21.2-4, AS AMENDED BY P.L.146-2008,
SECTION 232, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 4. As used in this chapter, "base
assessed value" means the base assessed value as that term is defined
or used in:
(1) IC 6-1.1-39-5(h); IC 6-1.1-39-5(i);
(2) IC 8-22-3.5-9(a);
(3) IC 8-22-3.5-9.5;
(4) IC 36-7-14-39(a);
(5) IC 36-7-14-39.2;
(6) IC 36-7-14-39.3(c);
(7) IC 36-7-14-48;
(8) IC 36-7-14.5-12.5;
(9) IC 36-7-15.1-26(a);
(10) IC 36-7-15.1-26.2(c);
(11) IC 36-7-15.1-35(a);
(12) IC 36-7-15.1-35.5;
(13) IC 36-7-15.1-53;
(14) IC 36-7-15.1-55(c);
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(15) IC 36-7-30-25(a)(2);
(16) IC 36-7-30-26(c);
(17) IC 36-7-30.5-30; or
(18) IC 36-7-30.5-31.
SECTION 82. IC 6-1.1-21.2-7, AS AMENDED BY P.L.146-2008,
SECTION 236, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 7. As used in this chapter,
"property taxes" means:
(1) property taxes, as defined in:
(A) IC 6-1.1-39-5(g); IC 6-1.1-39-5(h);
(B) IC 36-7-14-39(a);
(C) IC 36-7-14-39.2;
(D) IC 36-7-14-39.3(c);
(E) IC 36-7-14.5-12.5;
(F) IC 36-7-15.1-26(a);
(G) IC 36-7-15.1-26.2(c);
(H) IC 36-7-15.1-53(a);
(I) IC 36-7-15.1-55(c);
(J) IC 36-7-30-25(a)(3);
(K) IC 36-7-30-26(c);
(L) IC 36-7-30.5-30; or
(M) IC 36-7-30.5-31; or
(2) for allocation areas created under IC 8-22-3.5, the taxes
assessed on taxable tangible property in the allocation area.
SECTION 83. IC 6-1.1-22-19, AS ADDED BY P.L.230-2025,
SECTION 50, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2026 (RETROACTIVE)]: Sec. 19. (a) This section
applies to real property tax statements provided to taxpayers after
December 31, 2025.
(b) In a manner determined by the department of local government
finance, the department of local government finance shall include on
the coupon page of the property tax statement prescribed by the
department of local government finance educational information
regarding the eligibility and procedures for the following deductions
and credit credits available to certain eligible taxpayers:
(1) The deduction for a veteran with a partial disability under
IC 6-1.1-12-13 (before its expiration).
(2) The deduction for a totally disabled veteran or a veteran who
is at least sixty-two (62) years of age who is partially disabled
under IC 6-1.1-12-14.
(3) The deduction for a disabled veteran under IC 6-1.1-12-14.5.
(4) The credit for a person sixty-five (65) years of age or older
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under IC 6-1.1-51.3-1.
(5) The credit for a disabled veteran or a veteran who is at
least sixty-two (62) years of age under IC 6-1.1-51.3-5.
(6) The credit for a veteran with a partial disability under
IC 6-1.1-51.3-6.
SECTION 84. IC 6-1.1-23.5-10, AS AMENDED BY P.L.146-2024,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 10. (a) After preparing the notice described under
section 9 of this chapter, the county treasurer shall do the following:
(1) Post a copy of the notice at a public place of posting in the
county courthouse or in another public county building at least
thirty (30) days before the earliest date on which the application
for judgment may be made.
(2) Publish the notice once in accordance with IC 5-3-1-4
IC 5-3-1-1.5 at least thirty (30) days before the earliest date on
which the application for judgment may be made. The expenses
of this publication shall be paid out of the county general fund
without prior appropriation.
(3) Publish a notice twice in accordance with IC 5-3-1-2(m) or
IC 5-3-1-4 IC 5-3-1-1.5 at the following times stating that the
complete listing of mobile homes eligible for sale at auction under
this chapter is available on the website of the county government
or the county government's contractor:
(A) The first time at least seven (7) days after the publication
of the notice required under subdivision (2).
(B) The second time at least seven (7) days after the
publication of the notice required under clause (A).
(4) At least thirty (30) days before the earliest date on which the
application for judgment may be made, mail a copy of the notice
described under section 9 of this chapter by certified mail, return
receipt requested, to any party having a substantial property
interest of record.
(b) The notices mailed under this section are considered sufficient
notice of the intended application for judgment and of the sale of
mobile homes under the order of the court.
(c) For mobile homes that are not sold when initially offered for sale
under this chapter, the county treasurer may omit the descriptions of
the mobile homes specified in section 9(b)(1) and 9(b)(3) of this
chapter for those mobile homes when they are for sale at a subsequent
auction if:
(1) the county treasurer includes in the notice a statement that
descriptions of those mobile homes are available on the website
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of the county government or the county government's contractor
and the information may be obtained in an alternative form from
the county treasurer upon request; and
(2) the descriptions of those mobile homes eligible for sale a
second or subsequent time are made available on the website of
the county government or the county government's contractor and
may be obtained from the county treasurer in an alternative form
upon request in accordance with section 11 of this chapter.
SECTION 85. IC 6-1.1-24-3, AS AMENDED BY P.L.125-2025,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 3. (a) This section does not apply to vacant or
abandoned real property that is on the list prepared by the county
auditor under section 1.5 of this chapter.
(b) When real property is eligible for sale under this chapter, the
county auditor shall post a copy of the notice required by section 2 of
this chapter at a public place of posting in the county courthouse or in
another public county building at least twenty-one (21) days before the
earliest date of application for judgment. In addition, the county auditor
shall, in accordance with IC 5-3-1-4, IC 5-3-1-1.5, publish the notice
required in section 2 of this chapter once each week for three (3)
consecutive weeks before the earliest date on which the application for
judgment may be made. The expenses of this publication shall be paid
out of the county general fund without prior appropriation.
(c) At least twenty-one (21) days before the application for
judgment is made, the county auditor shall mail a copy of the notice
required by section 2 of this chapter by certified mail, return receipt
requested, to any:
(1) mortgagee;
(2) purchaser under an installment land contract recorded in the
office of the county recorder; or
(3) person who claims a substantial property interest of public
record;
who annually requests, by certified mail, a copy of the notice.
(d) The notices mailed under this section are considered sufficient
notice of the intended application for judgment and of the sale of real
property under the order of the court.
(e) For properties not sold at their initial tax sale, the county auditor
may omit the descriptions of the tracts or items of real property
specified in section 2(b)(1) and 2(b)(5) of this chapter for those
properties when they come up for sale at subsequent tax sales if:
(1) the county auditor includes in the notice a statement that
descriptions of those tracts or items of real property are available
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on the website of the county government or the county
government's contractor and the information may be obtained in
an alternative form from the county auditor upon request; and
(2) the descriptions of those tracts or items of real property
eligible for sale a second or subsequent time are made available
on the website of the county government or the county
government's contractor and may be obtained from the county
auditor in an alternative form upon request in accordance with
section 3.4 of this chapter.
(f) If taxes assessed on a mineral interest (as defined in
IC 32-23-10-1) remain unpaid and the mineral interest is eligible for
sale under this chapter, in addition to the notice requirements described
in subsections (b) and (c), the county auditor shall do the following at
least twenty-one (21) days before the date of application for judgment:
(1) Post a copy of the notice required in section 2 of this chapter
on the county's website.
(2) Provide a copy of the notice required in section 2 of this
chapter to the department of natural resources.
SECTION 86. IC 6-1.1-24-6.1, AS AMENDED BY THE
TECHNICAL CORRECTIONS BILL OF THE 2026 GENERAL
ASSEMBLY, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 6.1. (a) The county executive may do the
following:
(1) By resolution, identify properties concerning which the county
executive desires to offer to the public the certificates of sale
acquired by the county executive under section 6 of this chapter.
(2) Except as otherwise provided in subsection (c), in conformity
with IC 5-3-1-4, IC 5-3-1-1.5, publish:
(A) notice of the date, time, and place for a public sale; and
(B) a listing of parcels on which certificates will be offered by
parcel number and minimum bid amount;
once each week for three (3) consecutive weeks, with the final
advertisement being not less than thirty (30) days before the sale
date. The expenses of the publication shall be paid out of the
county general fund.
(3) Sell each certificate of sale covered by the resolution for a
price that:
(A) is less than the minimum sale price prescribed by section
5 of this chapter; and
(B) includes any costs to the county directly attributable to the
sale of the certificate of sale.
(b) Except as otherwise provided in subsection (c), notice of the list
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of properties prepared under subsection (a) and the date, time, and
place for the public sale of the certificates of sale shall be published in
accordance with IC 5-3-1. The notice must:
(1) include a description of the property by parcel number and
common address;
(2) specify that the county executive will accept bids for the
certificates of sale for the price referred to in subsection (a)(3);
(3) specify the minimum bid for each parcel;
(4) include a statement that a person redeeming each tract or item
of real property after the sale of the certificate must pay:
(A) the amount of the minimum bid under section 5 of this
chapter for which the tract or item of real property was last
offered for sale;
(B) ten percent (10%) of the amount for which the certificate
is sold;
(C) the attorney's fees and costs of giving notice under
IC 6-1.1-25-4.5;
(D) the costs of a title search or of examining and updating the
abstract of title for the tract or item of real property;
(E) all taxes and special assessments on the tract or item of
real property paid by the purchaser after the sale of the
certificate plus interest at the rate of ten percent (10%) per
annum on the amount of taxes and special assessments paid by
the purchaser on the redeemed property;
(F) all costs of sale, advertising costs, and other expenses of
the county directly attributable to the sale of certificates of
sale; and
(G) all taxes or special assessments, or both, paid by the
county treasurer under section 7(b) of this chapter; and
(5) include a statement that, if the certificate is sold for an amount
more than the minimum bid under section 5 of this chapter for
which the tract or item of real property was last offered for sale
and the property is not redeemed, the owner of record of the tract
or item of real property who is divested of ownership at the time
the tax deed is issued may have a right to the tax sale surplus.
(c) For properties identified under subsection (a) for which the
certificates of sale are not sold when initially offered for sale under this
section, the county executive may omit from the notice the descriptions
of the tracts or items of real property under subsection (b)(1) and the
associated minimum bids under subsection (b)(3) if:
(1) the county executive includes in the notice a statement that
descriptions of those tracts or items of real property are available
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on the Internet web site website of the county government or the
county government's contractor and the information may be
obtained in an alternative form from the county executive upon
request; and
(2) the descriptions of those tracts or items of real property for
which a certificate of sale is eligible for sale under this section are
made available on the Internet web site website of the county
government or the county government's contractor and may be
obtained from the county executive in an alternative form upon
request in accordance with section 3.4 of this chapter.
SECTION 87. IC 6-1.1-25-4.5, AS AMENDED BY P.L.236-2015,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 4.5. (a) Except as provided in subsection (d), a
purchaser or the purchaser's assignee is entitled to a tax deed to the
property that was sold only if:
(1) the redemption period specified in section 4(a)(1) of this
chapter has expired;
(2) the property has not been redeemed within the period of
redemption specified in section 4(a) of this chapter; and
(3) not later than six (6) months after the date of the sale:
(A) the purchaser or the purchaser's assignee; or
(B) in a county where the county auditor and county treasurer
have an agreement under section 4.7 of this chapter, the
county auditor;
gives notice of the sale to the owner of record at the time of the
sale and any person with a substantial property interest of public
record in the tract or item of real property.
(b) A county executive is entitled to a tax deed to property on which
the county executive acquires a lien under IC 6-1.1-24-6 and for which
the certificate of sale is not sold under IC 6-1.1-24-6.1 only if:
(1) the redemption period specified in section 4(b) of this chapter
has expired;
(2) the property has not been redeemed within the period of
redemption specified in section 4(b) of this chapter; and
(3) not later than ninety (90) days after the date the county
executive acquires the lien under IC 6-1.1-24-6, the county
auditor gives notice of the sale to:
(A) the owner of record at the time the lien was acquired; and
(B) any person with a substantial property interest of public
record in the tract or item of real property.
(c) A purchaser of a certificate of sale under IC 6-1.1-24-6.1 is
entitled to a tax deed to the property for which the certificate was sold
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only if:
(1) the redemption period specified in section 4(c) of this chapter
has expired;
(2) the property has not been redeemed within the period of
redemption specified in section 4(c) of this chapter; and
(3) not later than ninety (90) days after the date of sale of the
certificate of sale under IC 6-1.1-24, the purchaser gives notice of
the sale to:
(A) the owner of record at the time of the sale; and
(B) any person with a substantial property interest of public
record in the tract or item of real property.
(d) The person required to give the notice under subsection (a), (b),
or (c) shall give the notice by sending a copy of the notice by certified
mail, return receipt requested, to:
(1) the owner of record at the time of the:
(A) sale of the property;
(B) acquisition of the lien on the property under IC 6-1.1-24-6;
or
(C) sale of the certificate of sale on the property under
IC 6-1.1-24;
at the last address of the owner for the property, as indicated in
the records of the county auditor; and
(2) any person with a substantial property interest of public record
at the address for the person included in the public record that
indicates the interest.
However, if the address of the person with a substantial property
interest of public record is not indicated in the public record that
created the interest and cannot be located by ordinary means by the
person required to give the notice under subsection (a), (b), or (c), the
person may give notice by publication in accordance with IC 5-3-1-4
IC 5-3-1-1.5 once each week for three (3) consecutive weeks.
(e) The notice that this section requires shall contain at least the
following:
(1) A statement that a petition for a tax deed will be filed on or
after a specified date.
(2) The date on or after which the petitioner intends to petition for
a tax deed to be issued.
(3) A description of the tract or item of real property shown on the
certificate of sale.
(4) The date the tract or item of real property was sold at a tax
sale.
(5) The name of the:
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(A) purchaser or purchaser's assignee;
(B) county executive that acquired the lien on the property
under IC 6-1.1-24-6; or
(C) person that purchased the certificate of sale on the
property under IC 6-1.1-24.
(6) A statement that any person may redeem the tract or item of
real property.
(7) The components of the amount required to redeem the tract or
item of real property.
(8) A statement that an entity identified in subdivision (5) is
entitled to reimbursement for additional taxes or special
assessments on the tract or item of real property that were paid by
the entity subsequent to the tax sale, lien acquisition, or purchase
of the certificate of sale, and before redemption, plus interest.
(9) A statement that the tract or item of real property has not been
redeemed.
(10) A statement that an entity identified in subdivision (5) is
entitled to receive a deed for the tract or item of real property if it
is not redeemed before the expiration of the period of redemption
specified in section 4 of this chapter.
(11) A statement that an entity identified in subdivision (5) is
entitled to reimbursement for costs described in section 2(e) of
this chapter.
(12) The date of expiration of the period of redemption specified
in section 4 of this chapter.
(13) A statement that if the property is not redeemed, the owner
of record at the time the tax deed is issued may have a right to the
tax sale surplus, if any.
(14) The street address, if any, or a common description of the
tract or item of real property.
(15) The key number or parcel number of the tract or item of real
property.
(f) The notice under this section must include not more than one (1)
tract or item of real property listed and sold in one (1) description.
However, when more than one (1) tract or item of real property is
owned by one (1) person, all of the tracts or items of real property that
are owned by that person may be included in one (1) notice.
(g) A single notice under this section may be used to notify joint
owners of record at the last address of the joint owners for the property
sold, as indicated in the records of the county auditor.
(h) The notice required by this section is considered sufficient if the
notice is mailed to the address required under subsection (d).
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(i) The notice under this section and the notice under section 4.6 of
this chapter are not required for persons in possession not shown in the
public records.
(j) If the purchaser fails to:
(1) comply with subsection (c)(3); or
(2) petition for the issuance of a tax deed within the time
permitted under section 4.6(a) of this chapter;
the certificate of sale reverts to the county executive and may be
retained by the county executive or sold under IC 6-1.1-24-6.1.
SECTION 88. IC 6-1.1-27-10 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2027]: Sec. 10. A taxing unit may
deposit distributions of excise tax revenue received in a settlement
under this chapter that was collected from a tax imposed under:
(1) IC 6-6-5;
(2) IC 6-6-5.1;
(3) IC 6-6-6.5;
(4) IC 6-6-9;
(5) IC 6-6-11;
(6) IC 6-6-15; or
(7) IC 6-6-16;
into any fund maintained by the taxing unit, and may use the
distributions for any purpose allowed by law.
SECTION 89. IC 6-1.1-28-0.7, AS AMENDED BY THE
TECHNICAL CORRECTIONS BILL OF THE 2025 GENERAL
ASSEMBLY, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 0.7. The county assessor of the county responsible
for administration of a multiple county property tax assessment board
of appeals under section 0.5 of this chapter shall give notice of the
time, date, place, and purpose of each annual session of the multiple
county property tax assessment board of appeals. The county assessor
shall give the notice two (2) weeks before the first meeting of the
multiple county property tax assessment board of appeals by:
(1) publication of the notice within the geographic area over
which the multiple county property tax assessment board of
appeals has jurisdiction in the same manner as political
subdivisions subject to IC 5-3-1-4(e) IC 5-3-1-1.5 are required to
publish notice; and
(2) posting of the notice on the county assessor's Internet web site.
website.
SECTION 90. IC 6-1.1-36-17, AS AMENDED BY P.L.68-2025,
SECTION 80, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
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JULY 1, 2026]: Sec. 17. a) As used in this section, "nonreverting fund"
refers to a nonreverting fund established under subsection (d).
(b) If a county auditor makes a determination that property was not
eligible for a standard deduction under IC 6-1.1-12-37 in a particular
year within three (3) years after the date on which taxes for the
particular year are first due, the county auditor may shall issue a notice
of taxes, interest, and penalties due to the owner that improperly
received the standard deduction and include a statement that the
payment is to be made payable to the county auditor. In addition to all
other penalties, the taxpayer is liable for and the auditor shall
include in the notice a ten percent (10%) fine as a penalty for
claiming the homestead deduction falsely, which shall be calculated
as ten percent (10%) of the taxpayer's total tax bill as if the
homestead deduction had not been applied. The additional taxes and
civil penalties that result from the removal of the deduction, if any, are
imposed for property taxes first due and payable for an assessment date
occurring before the earlier of the date of the notation made under
subsection (c)(2)(A) or the date a notice of an ineligible homestead lien
is recorded under subsection (e)(2) in the office of the county recorder.
The notice must require full payment of the amount owed within:
(1) one (1) year with no penalties and interest, if:
(A) the taxpayer did not comply with the requirement to return
the homestead verification form under IC 6-1.1-22-8.1(b)(9)
(expired January 1, 2015); and
(B) the county auditor allowed the taxpayer to receive the
standard deduction in error; or
(2) thirty (30) days, if subdivision (1) does not apply.
With respect to property subject to a determination made under this
subsection that is owned by a bona fide purchaser without knowledge
of the determination, no lien attaches for any additional taxes and civil
penalties that result from the removal of the deduction.
(c) If a county auditor issues a notice of taxes, interest, and penalties
due to an owner under subsection (b), the county auditor shall:
(1) notify the county treasurer of the determination; and
(2) do one (1) or more of the following:
(A) Make a notation on the tax duplicate that the property is
ineligible for the standard deduction and indicate the date the
notation is made.
(B) Record a notice of an ineligible homestead lien under
subsection (e)(2).
(d) Each county auditor shall establish a nonreverting fund. Upon
collection of the adjustment in tax due (and any interest and penalties
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on that amount) after the termination of a deduction or credit as
specified in subsection (b), the county treasurer shall deposit that
amount:
(1) in the nonreverting fund, if the county contains a consolidated
city; or
(2) if the county does not contain a consolidated city:
(A) in the nonreverting fund, to the extent that the amount
collected, after deducting the direct cost of any contract,
including contract related expenses, under which the
contractor is required to identify homestead deduction
eligibility, does not cause the total amount deposited in the
nonreverting fund under this subsection for the year during
which the amount is collected to exceed one hundred thousand
dollars ($100,000); or
(B) in the county general fund, to the extent that the amount
collected exceeds the amount that may be deposited in the
nonreverting fund under clause (A).
(e) Any part of the amount due under subsection (b) that is not
collected by the due date is subject to collection under one (1) or more
of the following:
(1) After being placed on the tax duplicate for the affected
property and collected in the same manner as other property taxes.
(2) Through a notice of an ineligible homestead lien recorded in
the county recorder's office without charge.
The adjustment in tax due (and any interest and penalties on that
amount) after the termination of a deduction or credit as specified in
subsection (b) shall be deposited as specified in subsection (d) only in
the first year in which that amount is collected. Upon the collection of
the amount due under subsection (b) or the release of a lien recorded
under subdivision (2), the county auditor shall submit the appropriate
documentation to the county recorder, who shall amend the information
recorded under subdivision (2) without charge to indicate that the lien
has been released or the amount has been paid in full.
(f) The amount to be deposited in the nonreverting fund or the
county general fund under subsection (d) includes adjustments in the
tax due as a result of the termination of deductions or credits available
only for property that satisfies the eligibility for a standard deduction
under IC 6-1.1-12-37, including the following:
(1) Supplemental deductions under IC 6-1.1-12-37.5.
(2) Homestead credits under IC 6-1.1-20.4, IC 6-3.6-5 (before its
expiration), IC 6-3.6-11-3 (before its expiration), or any other law.
(3) Credit for excessive property taxes under IC 6-1.1-20.6-7.5 or
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IC 6-1.1-20.6-8.5.
Any amount paid that exceeds the amount required to be deposited
under subsection (d)(1) or (d)(2) shall be distributed as property taxes.
(g) Money deposited under subsection (d)(1) or (d)(2) shall be
treated as miscellaneous revenue. Distributions shall be made from the
nonreverting fund established under this section upon appropriation by
the county fiscal body and shall be made only for the following
purposes:
(1) Fees and other costs incurred by the county auditor to discover
property that is eligible for a standard deduction under
IC 6-1.1-12-37.
(2) Other expenses of the office of the county auditor.
The amount of deposits in a reverting fund, the balance of a
nonreverting fund, and expenditures from a reverting fund may not be
considered in establishing the budget of the office of the county auditor
or in setting property tax levies that will be used in any part to fund the
office of the county auditor.
SECTION 91. IC 6-1.1-37-4, AS AMENDED BY P.L.230-2025,
SECTION 56, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2026 (RETROACTIVE)]: Sec. 4. A person who makes
a false statement, with intent to obtain the property tax deduction
provided in either IC 6-1.1-12-13 (before its expiration) or
IC 6-1.1-12-14 when the person is not entitled to the deduction,
commits a Class B misdemeanor.
SECTION 92. IC 6-1.1-39-5, AS AMENDED BY P.L.214-2019,
SECTION 22, AND AS AMENDED BY P.L.257-2019, SECTION 68,
IS CORRECTED AND AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 5. (a) A declaratory ordinance
adopted under section 2 of this chapter and confirmed under section 3
of this chapter must include a provision with respect to the allocation
and distribution of property taxes for the purposes and in the manner
provided in this section. The allocation provision must apply to the
entire economic development district. The allocation provisions must
require that any property taxes subsequently levied by or for the benefit
of any public body entitled to a distribution of property taxes on taxable
property in the economic development district be allocated and
distributed as follows:
(1) Except as otherwise provided in this section, the proceeds of
the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made;
or
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(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
the respective taxing units. However, if the effective date of the
allocation provision of a declaratory ordinance is after March 1,
1985, and before January 1, 1986, and if an improvement to
property was partially completed on March 1, 1985, the unit may
provide in the declaratory ordinance that the taxes attributable to
the assessed value of the property as finally determined for March
1, 1984, shall be allocated to and, when collected, paid into the
funds of the respective taxing units.
(2) Except as otherwise provided in this section, part or all of the
property tax proceeds in excess of those described in subdivision
(1), as specified in the declaratory ordinance, shall be allocated to
the unit for the economic development district and, when
collected, paid into a special fund established by the unit for that
economic development district that may be used only to pay the
principal of and interest on obligations owed by the unit under
IC 4-4-8 (before its repeal) or IC 5-28-9 for the financing of
industrial development programs in, or serving, that economic
development district. The amount not paid into the special fund
shall be paid to the respective units in the manner prescribed by
subdivision (1).
(3) When the money in the fund is sufficient to pay all
outstanding principal of and interest (to the earliest date on which
the obligations can be redeemed) on obligations owed by the unit
under IC 4-4-8 (before its repeal) or IC 5-28-9 for the financing
of industrial development programs in, or serving, that economic
development district, money in the special fund in excess of that
amount shall be paid to the respective taxing units in the manner
prescribed by subdivision (1).
(b) Property tax proceeds allocable to the economic development
district under subsection (a)(2) must, subject to subsection (a)(3), be
irrevocably pledged by the unit for payment as set forth in subsection
(a)(2).
(c) For the purpose of allocating taxes levied by or for any taxing
unit or units, the assessed value of taxable property in a territory in the
economic development district that is annexed by any taxing unit after
the effective date of the allocation provision of the declaratory
ordinance is the lesser of:
(1) the assessed value of the property for the assessment date with
respect to which the allocation and distribution is made; or
(2) the base assessed value.
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(d) Notwithstanding any other law, each assessor shall, upon
petition of the fiscal body, reassess the taxable property situated upon
or in, or added to, the economic development district effective on the
next assessment date after the petition.
(e) Notwithstanding any other law, the assessed value of all taxable
property in the economic development district, for purposes of tax
limitation, property tax replacement, and formulation of the budget, tax
rate, and tax levy for each political subdivision in which the property
is located, is the lesser of:
(1) the assessed value of the property as valued without regard to
this section; or
(2) the base assessed value.
(f) The state board of accounts and department of local government
finance shall make the rules and prescribe the forms and procedures
that they consider expedient for the implementation of this chapter.
After each reassessment of a group of parcels under a reassessment
plan prepared under IC 6-1.1-4-4.2 the department of local government
finance county auditor shall, on forms prescribed by the
department of local government finance, adjust the base assessed
value one (1) time to neutralize any effect of the reassessment on the
property tax proceeds allocated to the district under this section. After
each annual adjustment under IC 6-1.1-4-4.5, the department of local
government finance county auditor shall, on forms prescribed by the
department of local government finance, adjust the base assessed
value to neutralize any effect of the annual adjustment on the property
tax proceeds allocated to the district under this section. However, the
adjustments under this subsection may not include the effect of
property tax abatements under IC 6-1.1-12.1.
(g) The county auditor shall, in the manner prescribed by the
department of local government finance, submit the forms
required by this section to the department of local government
finance no later than July 15 of each year.
(g) (h) As used in this section, "property taxes" means:
(1) taxes imposed under this article on real property; and
(2) any part of the taxes imposed under this article on depreciable
personal property that the unit has by ordinance allocated to the
economic development district. However, the ordinance may not
limit the allocation to taxes on depreciable personal property with
any particular useful life or lives.
If a unit had, by ordinance adopted before May 8, 1987, allocated to an
economic development district property taxes imposed under IC 6-1.1
on depreciable personal property that has a useful life in excess of eight
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(8) years, the ordinance continues in effect until an ordinance is
adopted by the unit under subdivision (2).
(h) (i) As used in this section, "base assessed value" means, subject
to subsection (i): (j):
(1) the net assessed value of all the property as finally determined
for the assessment date immediately preceding the effective date
of the allocation provision of the declaratory resolution, as
adjusted under subsection (f); plus
(2) to the extent that it is not included in subdivision (1), the net
assessed value of property that is assessed as residential property
under the rules of the department of local government finance,
within the economic development district, as finally determined
for any the current assessment date. after the effective date of the
allocation provision.
Subdivision (2) applies only to economic development districts
established after June 30, 1997, and to additional areas established
after June 30, 1997.
(i) (j) If a fiscal body confirms, or modifies and confirms, an
ordinance under section 3 of this chapter and the fiscal body makes
either of the filings required under section 3(d) of this chapter after the
first anniversary of the effective date of the allocation provision in the
ordinance, the auditor of the county in which the unit is located shall
compute the base assessed value for the allocation area using the
assessment date immediately preceding the later of:
(1) the date on which the documents are filed with the county
auditor; or
(2) the date on which the documents are filed with the
department.
SECTION 93. IC 6-1.1-41-4, AS AMENDED BY P.L.38-2021,
SECTION 40, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 4. (a) A political subdivision that in any year
adopts a proposal under this chapter must submit the proposal to the
department of local government finance:
(1) before August 2 of that year, for years before 2018; and
(2) before June 1 of that year, for years after 2017.
(b) Subject to subsections (c) and (d), the department of local
government finance shall certify to the political subdivision during the
certification process under IC 6-1.1-17-16 that the proposal has a
property tax rate that does not exceed the maximum property tax rate
allowed by the applicable statute described in section 1 of this chapter.
If the proposal has a property tax rate that exceeds the maximum
property tax rate allowed by the applicable statute described in section
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1 of this chapter, the department of local government finance shall
certify the proposal at a rate equal to the maximum property tax rate
allowed by the applicable statute under section 1 of this chapter.
(c) The department of local government finance may not decline to
certify a proposal under subsection (b) unless the political subdivision
fails to submit the proposal before the date described in subsection (a).
(d) If a petition is filed pursuant to section 6 of this chapter, the
department of local government finance may not certify a proposal
under subsection (b) until:
(1) a hearing has been conducted under section 7 of this chapter;
and
(2) a final determination has been made on the petition under
section 9 of this chapter.
If section 9 of this chapter applies, the department of local government
finance may decline to certify the proposal.
SECTION 94. IC 6-1.1-51.3-0.6 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2026 (RETROACTIVE)]: Sec. 0.6. (a) If
the amount of any credit claimed under this chapter for a taxpayer
in a taxable year exceeds the taxpayers property tax liability for
that taxable year, the taxpayer may not carry the excess over to the
following taxable year.
(b) A taxpayer is not entitled to any carryback or refund of any
unused credit.
SECTION 95. IC 6-1.1-51.3-1, AS ADDED BY P.L.68-2025,
SECTION 84, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2026 (RETROACTIVE)]: Sec. 1. (a) An individual is
entitled to a credit against local property taxes imposed on the
individual's real property, or mobile home or manufactured home
within the county, if:
(1) the individual is at least sixty-five (65) years of age on or
before December 31 of the calendar year preceding the year in
which the credit is claimed;
(2) the individual has owned the real property, mobile home, or
manufactured home for at least one (1) year before claiming the
credit; or the individual has been buying the real property, mobile
home, or manufactured home under a contract that provides that
the individual is to pay the property taxes on the real property,
mobile home, or manufactured home for at least one (1) year
before claiming the credit, and the contract or a memorandum of
the contract is recorded in the county recorder's office;
(3) the individual:
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(A) owns the real property, mobile home, or manufactured
home; or
(B) is buying the real property, mobile home, or manufactured
home under contract;
on the date the credit is claimed; and
(4) the:
(A) individual had, in the case of an individual who filed a
single return, adjusted gross income (as defined in Section 62
of the Internal Revenue Code) not exceeding sixty thousand
dollars ($60,000);
(B) individual had, in the case of an individual who filed a
joint income tax return with the individual's spouse, combined
adjusted gross income (as defined in Section 62 of the Internal
Revenue Code) not exceeding seventy thousand dollars
($70,000); or
(C) combined adjusted gross income (as defined in Section 62
of the Internal Revenue Code) of the individual and all other
individuals with whom:
(i) the individual shares ownership; or
(ii) the individual is purchasing the property under a
contract;
as joint tenants or tenants in common did not exceed seventy
thousand dollars ($70,000);
for the calendar year preceding by two (2) years the calendar year
in which the property taxes are first due and payable; and
(5) the individual resides on the real property, mobile home,
or manufactured home.
(b) The amount of the credit is equal to one hundred fifty dollars
($150).
(c) An individual may not be denied the credit provided under this
section because the individual is absent from the real property, mobile
home, or manufactured home while in a nursing home or hospital.
(d) For purposes of this section, if real property, a mobile home, or
a manufactured home is owned by:
(1) tenants by the entirety;
(2) joint tenants; or
(3) tenants in common;
only one (1) credit may be allowed. However, the age requirement is
satisfied if any one (1) of the tenants is at least sixty-five (65) years of
age.
(e) A surviving spouse is entitled to the credit provided by this
section if:
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(1) the surviving spouse is at least sixty (60) years of age on or
before December 31 of the calendar year preceding the year in
which the credit is claimed;
(2) the surviving spouse's deceased husband or wife was at least
sixty-five (65) years of age at the time of a death; and
(3) the surviving spouse has not remarried.
(f) An individual who has sold real property to another person under
a contract that provides that the contract buyer is to pay the property
taxes on the real property may not claim the credit provided under this
section against that real property.
(g) If individuals share ownership or are purchasing the property
under a contract as joint tenants or tenants in common and all of the
tenants are not at least sixty-five (65) years of age, the credit allowed
under this section shall be reduced by an amount equal to the credit
multiplied by a fraction. The numerator of the fraction is the number of
tenants who are not at least sixty-five (65) years of age, and the
denominator is the total number of tenants.
(h) An individual wishing to claim a credit under this section must
file a statement, on forms prescribed by the department of local
government finance, with the county auditor and provide
documentation necessary to substantiate the individual's eligibility for
the credit. The statement must be completed and dated on or before
January 15 of the calendar year in which the property taxes are first due
and payable. The statement may be filed in person or by mail. If
mailed, the mailing must be postmarked on or before the last day for
filing. An individual who remains eligible for the credit in the
following year is not required to file a statement to apply for the credit
in the following year. However, an individual who receives a credit
under this section in a particular year and who becomes ineligible for
the credit in the following year shall notify the auditor of the county in
which the homestead is located of the individual's ineligibility not later
than sixty (60) days after the individual becomes ineligible.
SECTION 96. IC 6-1.1-51.3-5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2026 (RETROACTIVE)]: Sec. 5. (a) An
individual is entitled to a credit against local property taxes
imposed on the individual's real property, or mobile home or
manufactured home within the county, if:
(1) the individual served in the military or naval forces of the
United States for at least ninety (90) days;
(2) the individual received an honorable discharge;
(3) the individual is at least sixty-two (62) years of age and has
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a disability of at least ten percent (10%);
(4) the individual's disability is evidenced by:
(A) a pension certificate or an award of compensation
issued by the United States Department of Veterans
Affairs; or
(B) a certificate of eligibility issued to the individual by the
Indiana department of veterans' affairs after the Indiana
department of veterans' affairs has determined that the
individual's disability qualifies the individual to receive a
credit under this section; and
(5) the individual:
(A) owns the real property, mobile home, or manufactured
home; or
(B) is buying the real property, mobile home, or
manufactured home under contract;
on the date the credit is claimed, and in the case of clause (B),
the contract or a memorandum of the contract is recorded in
the county recorder's office.
(b) The amount of the credit is equal to two hundred fifty
dollars ($250).
(c) The surviving spouse of an individual may receive the credit
provided by this section if:
(1) the individual satisfied the requirements of subsection
(a)(1) through (a)(4) at the time of death; or
(2) the individual:
(A) was killed in action;
(B) died while serving on active duty in the military or
naval forces of the United States; or
(C) died while performing inactive duty training in the
military or naval forces of the United States;
and the surviving spouse satisfies the requirement of subsection
(a)(5) at the time the credit is claimed. The surviving spouse is
entitled to the credit regardless of whether the property for which
the credit is claimed was owned by the deceased veteran or the
surviving spouse before the deceased veteran's death.
(d) An individual who receives the credit provided by this
section may receive any other property tax credit that the
individual is entitled to by law.
(e) An individual who has sold real property or a mobile home
or manufactured home to another person under a contract that
provides that the contract buyer is to pay the property taxes on the
real property, mobile home, or manufactured home may not claim
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the credit provided under this section against that real property,
mobile home, or manufactured home.
(f) An individual wishing to claim a credit under this section
must file a statement, on forms prescribed by the department of
local government finance, with the county auditor and provide
documentation necessary to substantiate the individual's eligibility
for the credit. The statement must be completed and dated on or
before January 15 of the calendar year in which the property taxes
are first due and payable. The statement may be filed in person or
by mail. If mailed, the mailing must be postmarked on or before
the last day for filing. An individual who remains eligible for the
credit in the following year is not required to file a statement to
apply for the credit in the following year. However, an individual
who receives a credit under this section in a particular year and
who becomes ineligible for the credit in the following year shall
notify the auditor of the county in which the homestead is located
of the individual's ineligibility not later than sixty (60) days after
the individual becomes ineligible.
(g) This subsection applies only for taxes assessed in 2026 and
due and payable in 2027. For all taxpayers that received a
deduction under IC 6-1.1-12-14 before the enactment of HEA
1210-2026, notwithstanding any other provision, the county
auditor shall not apply the deduction under IC 6-1.1-12-14 and
shall instead apply the local property tax credit under this section.
SECTION 97. IC 6-1.1-51.3-6 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2026 (RETROACTIVE)]: Sec. 6. (a) An
individual is entitled to a credit against local property taxes
imposed on the individual's real property, mobile home, or
manufactured home within the county, if:
(1) the individual served in the military or naval forces of the
United States during any of its wars;
(2) the individual received an honorable discharge;
(3) the individual has a disability with a service connected
disability of ten percent (10%) or more;
(4) the individual's disability is evidenced by:
(A) a pension certificate, an award of compensation, or a
disability compensation check issued by the United States
Department of Veterans Affairs; or
(B) a certificate of eligibility issued to the individual by the
Indiana department of veterans' affairs after the Indiana
department of veterans' affairs has determined that the
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individual's disability qualifies the individual to receive a
credit under this section; and
(5) the individual:
(A) owns the real property, mobile home, or manufactured
home; or
(B) is buying the real property, mobile home, or
manufactured home under contract;
on the date the credit is claimed, and in the case of clause (B),
the contract or a memorandum of the contract is recorded in
the county recorder's office.
(b) The amount of the credit is equal to three hundred fifty
dollars ($350).
(c) The surviving spouse of an individual may receive the credit
provided by this section if the individual satisfied the requirements
of subsection (a)(1) through (a)(4) at the time of death and the
surviving spouse satisfies the requirement of subsection (a)(5) at
the time the credit is claimed. The surviving spouse is entitled to
the credit regardless of whether the property for which the credit
is claimed was owned by the deceased veteran or the surviving
spouse before the deceased veteran's death.
(d) An individual who receives the credit provided by this
section may receive any other property tax credit that the
individual is entitled to by law.
(e) An individual who has sold real property or a mobile home
or manufactured home to another person under a contract that
provides that the contract buyer is to pay the property taxes on the
real property, mobile home, or manufactured home may not claim
the credit provided under this section against that real property,
mobile home, or manufactured home.
(f) An individual wishing to claim a credit under this section
must file a statement, on forms prescribed by the department of
local government finance, with the county auditor and provide
documentation necessary to substantiate the individual's eligibility
for the credit. The statement must be completed and dated on or
before January 15 of the calendar year in which the property taxes
are first due and payable. The statement may be filed in person or
by mail. If mailed, the mailing must be postmarked on or before
the last day for filing. An individual who remains eligible for the
credit in the following year is not required to file a statement to
apply for the credit in the following year. However, an individual
who receives a credit under this section in a particular year and
who becomes ineligible for the credit in the following year shall
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notify the auditor of the county in which the homestead is located
of the individual's ineligibility not later than sixty (60) days after
the individual becomes ineligible.
SECTION 98. IC 6-1.1-51.3-7 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2026 (RETROACTIVE)]: Sec. 7. A trust
is entitled to a credit under section 1, 2, 5, or 6 of this chapter for
real property owned by the trust and occupied by an individual if
the county auditor determines that the individual:
(1) upon verification in the body of the deed or otherwise, has
either:
(A) a beneficial interest in the trust; or
(B) the right to occupy the real property rent free under
the terms of a qualified personal residence trust created by
the individual under United States Treasury Regulation
25.2702-5(c)(2); and
(2) otherwise qualifies for the credit.
SECTION 99. IC 6-2.5-5-29 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 29. (a) As used in
this section:
"Manufactured home" means a manufactured home as that term is
defined in 42 U.S.C. 5402(6) as that statute was adopted and in effect
on January 1, 1988. has the definition set forth in IC 9-13-2-96(a).
The term includes a mobile home (as defined in IC 9-13-2-103.2).
"Industrialized residential structure" means a structure that is both
an industrialized building system (as defined in IC 22-12-1-14) and a
one (1) or two (2) family private residence.
(b) Sales of manufactured homes or industrialized residential
structures are exempt from the state gross retail tax to the extent that
the gross retail income from the sales is not attributable to the cost of
materials used in manufacturing the manufactured home or
industrialized residential structure.
(c) For purposes of this section, the part of the gross retail income
not attributable to the cost of materials used in manufacturing a
manufactured home or an industrialized residential structure is
thirty-five percent (35%) of the gross retail income derived from the
sale of the manufactured home or industrialized residential structure.
(d) The gross retail income derived from the sale of a preowned
manufactured home is exempt from the state gross retail tax.
SECTION 100. IC 6-2.5-15-15.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 15.5. (a) This section applies to a
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qualified data center user that:
(1) uses or will use qualified data center equipment in
connection with a qualified data center for which a permit
that:
(A) authorizes the development, construction, or operation
of the qualified data center in a local unit; and
(B) is issued after June 30, 2026, by the local authority with
jurisdiction over the local unit; and
(2) is issued a specific transaction award certificate under this
chapter with respect to the qualified data center after June 30,
2026.
(b) In order to use the specific transaction award certificate
issued under this chapter, the qualified data center user described
in subsection (a) shall submit to the county treasurer or fiscal
officer of a municipality, whichever enters into the agreement with
the data center, an amount equal to not more than one percent
(1%) of the state gross retail and use taxes not paid on the data
center's total amount of electricity billed each calendar quarter
continuing through the duration of the specific transaction award
certificate.
(c) Upon request by a county treasurer or fiscal officer of a
municipality, whichever enters into the agreement with the data
center, the state department of revenue shall report the amount
owed to the county treasurer or fiscal officer of a municipality of
the jurisdiction in which the data center is located at the end of the
data center company's taxable year.
(d) The county or city shall determine:
(1) how the contributions required under subsection (b) will
be allocated; and
(2) for what purposes the contributions required under
subsection (b) will be used.
SECTION 101. IC 6-3.1-34-18, AS AMENDED BY P.L.201-2023,
SECTION 102, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 18. (a) Except as provided in
subsection (b), if the corporation awards a tax credit to a taxpayer
under this chapter that exceeds twenty million dollars ($20,000,000),
the corporation shall include in an agreement entered into under section
17 of this chapter a provision that requires the taxpayer to repay to the
corporation the portion of the credit that exceeds twenty million dollars
($20,000,000) with interest. Notwithstanding the date on which a tax
credit is awarded under this chapter, any repayment of any part of a
credit awarded under this chapter shall be deposited in the state general
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fund.
(b) Notwithstanding subsection (a), the corporation may exclude
from its agreement entered into under section 17 of this chapter a
repayment provision for any portion of the credit if the award is for a
qualified redevelopment site subject to a proposal that will result in a
qualified investment of at least one hundred million dollars
($100,000,000).
(c) If the corporation enters into an agreement with a taxpayer under
section 17 of this chapter that includes a repayment provision under
subsection (a), the corporation shall include in the repayment provision
a provision establishing the interest rate that will be applied. The
interest rate shall be determined by the board and approved by the
budget agency.
(d) This subsection applies to an active multi-phased project
occurring on a defined footprint for which the taxpayer has received
approval for at least the first phase of the active multi-phased project
from the corporation's board before July 1, 2018, for a tax credit under
IC 6-3.1-11 (industrial recovery tax credit) before its expiration. The
following apply to a project described in this subsection:
(1) Only qualified investments that are made after June 30, 2021,
are eligible for a credit award under this chapter.
(2) The annual amount of credits awarded under this chapter for
the project may not exceed five million dollars ($5,000,000).
(3) The corporation may not include a repayment provision as part
of an agreement entered into under section 17 of this chapter for
the credits awarded for the project.
(e) The part of any credit that is subject to a repayment provision
under this section must be included in the calculation of the aggregate
amount of applicable tax credits that the corporation may certify for a
state fiscal year under IC 5-28-6-9.
(f) This subsection applies retroactively and only to an
agreement entered into under section 17 of this chapter that was
executed on or before December 31, 2020, and that:
(1) awards a credit under this chapter and an industrial
recovery tax credit under IC 6-3.1-11 under the same
agreement;
(2) awards a credit under this chapter with a maximum
amount of ten million dollars ($10,000,000);
(3) states an estimated capital investment of at least two
hundred fifty millions dollars ($250,000,000); and
(4) is for a project in a county having a population of more
than three hundred fifty thousand (350,000) and less than four
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hundred thousand (400,000).
Notwithstanding subsection (a), for an agreement to which this
subsection applies, the corporation shall not enforce any
repayment provision relating to the credit awarded under this
chapter and shall amend the agreement to remove the repayment
provision not later than June 30, 2026.
SECTION 102. IC 6-3.1-38-4, AS ADDED BY P.L.203-2023,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2026 (RETROACTIVE)]: Sec. 4. (a) Subject to
subsection (c) and section 7 of this chapter, a qualified taxpayer may
claim a credit against the qualified taxpayer's state tax liability for a
qualified contribution for a qualified taxpayer with less than fifty (50)
employees, if the amount provided toward the health
reimbursement arrangement is equal to or greater than the level
of benefits provided in the previous benefit year, or if the amount
the employer contributes toward the health reimbursement
arrangement equals the same amount contributed per covered
individual toward the employer provided health insurance plan
during the previous benefit year. up to four hundred dollars ($400)
in the first year per covered employee if the amount provided toward
the health reimbursement arrangement is equal to or greater than either
the level of benefits provided in the previous benefit year, or if the
amount the employer contributes toward the health reimbursement
arrangement equals the same amount contributed per covered
individual toward the employer provided health insurance plan during
the previous benefit year. The credit under this section decreases to two
hundred dollars ($200) per covered employee in the second year.
(b) The amount of the credit is the lesser of:
(1) the amount contributed by the employer toward the health
reimbursement arrangement during the taxable year; or
(2) the following:
(A) For the taxable year in which the employer establishes
the health reimbursement arrangement, four hundred
dollars ($400).
(B) For the taxable year that immediately follows the
taxable year in which the employer establishes the health
reimbursement arrangement, two hundred dollars ($200).
(C) For a taxable year following a taxable year described
in clause (B), zero dollars ($0).
(c) A qualified taxpayer may not claim a credit under this
chapter for a health reimbursement arrangement established in a
taxable year beginning before January 1, 2024.
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SECTION 103. IC 6-3.1-38-4.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2026 (RETROACTIVE)]: Sec. 4.5. For
a taxable year beginning after December 31, 2025, if a pass through
entity is entitled to a credit under section 4 of this chapter but does
not have state tax liability against which the tax credit may be
applied, a shareholder, partner, or member of the pass through
entity is entitled to a tax credit equal to:
(1) the tax credit determined for the pass through entity for
the taxable year; multiplied by
(2) the percentage of the pass through entity's distributive
income to which the shareholder, partner, or member is
entitled.
SECTION 104. IC 6-3.1-38-7, AS ADDED BY P.L.203-2023,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2026 (RETROACTIVE)]: Sec. 7. (a) The amount of tax
credits granted under this chapter may not exceed ten million dollars
($10,000,000) in any taxable calendar year.
(b) The department shall record the time of filing of each return
claiming a credit under section 6 of this chapter and shall approve the
claims if they otherwise qualify for a tax credit under this chapter, in
the chronological order in which the claims are filed in the state fiscal
calendar year. The claim of a credit resulting from a pass through
entity shall be considered to be filed when the pass through entity
files a return for the taxable year.
(c) For purposes of calculating the amount of tax credits granted
under this chapter in a calendar year, in the case of a taxpayer for
whom some amount of the credit claimed must be carried over
under section 8 of this chapter, the taxpayer is considered to have
filed a claim for the full amount allowable to the taxpayer.
(c) (d) The department may not approve a claim for a tax credit after
the date on which the total credits approved under this section equal the
maximum amount allowable in a particular state fiscal calendar year.
SECTION 105. IC 6-3.6-1-1.5, AS AMENDED BY P.L.68-2025,
SECTION 92, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2028]: Sec. 1.5. (a) In counties that adopted a homestead
credit under IC 6-3.5-6-13 (before its repeal January 1, 2017), the
transition from the former taxes to the taxes governed under this article
shall include the transition of the homestead credit under IC 6-3.5-6-13
(before its repeal January 1, 2017) to a property tax relief rate under
IC 6-3.6-5 (before its expiration).
(b) To accomplish the transition under this section, the department
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of local government finance shall determine the portion of the income
tax rate under IC 6-3.5-6-8 (before its repeal January 1, 2017) that is
attributable to the homestead credit approved under IC 6-3.5-6-13
(before its repeal January 1, 2017) and shall allocate that portion of the
income tax rate that is attributable to the homestead credit under
IC 6-3.5-6-13 (before its repeal January 1, 2017) to the property tax
relief rate under IC 6-3.6-5 (before its expiration).
(c) The department of local government finance shall notify each
affected county of the rate that will be allocated to the property tax
relief rate not later than July 1, 2016. In addition, the department of
local government finance shall notify the state budget agency of the
transition under this section.
(d) This section expires July 1, 2028. 2029.
SECTION 106. IC 6-3.6-1-3, AS AMENDED BY P.L.68-2025,
SECTION 93, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2028]: Sec. 3. (a) Except to the extent that taxes imposed in
a county under or determined under:
(1) IC 6-3.5-1.1 (repealed);
(2) IC 6-3.5-1.5 (repealed);
(3) IC 6-3.5-6 (repealed); or
(4) IC 6-3.5-7 (repealed);
are increased, decreased, or rescinded under this article, the total tax
rate in effect in a county under the provisions described in subdivisions
(1) through (4) on May 1, 2016, continue in effect after May 1, 2016,
and shall be treated as taxes imposed under this article.
(b) Notwithstanding subsection (a) or any other provision of this
article, a property tax relief rate imposed in a county under IC 6-3.6-5
(before its expiration) expires December 31, 2027. 2028.
SECTION 107. IC 6-3.6-2-2, AS AMENDED BY P.L.68-2025,
SECTION 95, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2029]: Sec. 2. "Adjusted gross income" has the meaning
set forth in IC 6-3-1-3.5. However:
(1) in the case of a resident local taxpayer of Perry County, or a
resident of a municipality located in Perry County in the case
of a local income tax imposed under IC 6-3.6-6-22, the term
does not include adjusted gross income described in IC 6-3.6-8-7;
and
(2) in the case of a local taxpayer described in section 13(3) of
this chapter, the term includes only that part of the individual's
total income that:
(A) is apportioned to Indiana under IC 6-3-2-2.7 or
IC 6-3-2-3.2; and
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(B) is paid to the individual as compensation for services
rendered in the county (or municipality in the case of a local
income tax imposed under IC 6-3.6-6-22) as a team member
or race team member.
SECTION 108. IC 6-3.6-2-7.4, AS AMENDED BY P.L.68-2025,
SECTION 98, AND P.L.223-2025, SECTION 4, IS AMENDED TO
READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 7.4.
"County with a single voting bloc" means a county that has a local
income tax council in which one (1) city that is a member of the local
income tax council or one (1) town that is a member of the local
income tax council is allocated more than fifty percent (50%) of the
total one hundred (100) votes allocated under IC 6-3.6-3-6(d). This
section expires May 31, 2027. 2028.
SECTION 109. IC 6-3.6-2-13, AS AMENDED BY P.L.68-2025,
SECTION 100, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2029]: Sec. 13. "Local taxpayer" means
any of the following:
(1) As it relates to a particular county (or municipality in the case
of a local income tax imposed under IC 6-3.6-6-22), an individual
who resides in that county (or municipality in the case of a local
income tax imposed under IC 6-3.6-6-22) on the date specified in
IC 6-3.6-8-3.
(2) As it relates to a particular county, and except for an
individual described in subdivision (3), an individual who
maintains the taxpayer's principal place of business or
employment in that county on the date specified in IC 6-3.6-8-3
and who does not reside on that same date in another county in
Indiana in which a tax under this article is in effect. However, for
purposes of a local income tax imposed by a county under
IC 6-3.6-6-2(b)(4) or imposed by a municipality under
IC 6-3.6-6-22, the term does not include an individual described
in this subdivision.
(3) As it relates to a particular county (or municipality in the
case of a local income tax imposed under IC 6-3.6-6-22), and
only for purposes of a rate imposed by a county under
6-3.6-6-2(b)(3), the term includes an individual who:
(A) has income apportioned to Indiana as:
(i) a team member under IC 6-3-2-2.7; or
(ii) a race team member under IC 6-3-2-3.2;
for services rendered in the county (or municipality in the
case of a local income tax imposed under IC 6-3.6-6-22);
and
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(B) is not described in subdivision (1). or (2).
SECTION 110. IC 6-3.6-2-15, AS AMENDED BY P.L.68-2025,
SECTION 101, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2029]: Sec. 15. "Resident local taxpayer",
as it relates to a particular county (or municipality in the case of a local
income tax imposed under IC 6-3.6-6-22), means any local taxpayer
who resides in that county (or municipality in the case of a local
income tax imposed under IC 6-3.6-6-22) on the date specified in
IC 6-3.6-8-3. For purposes of a local income tax rate imposed by a
county under IC 6-3.6-6-2(b)(4), the term means an individual who
resides in the part of the county for which the county may impose
a rate under IC 6-3.6-6-2(b)(4) on the date specified in IC 6-3.6-8-3.
SECTION 111. IC 6-3.6-2-16.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 16.5. "State GIS officer" has the
meaning set forth in IC 4-23-7.3-10.
SECTION 112. IC 6-3.6-3-2, AS AMENDED BY P.L.159-2020,
SECTION 54, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 2. (a) An adopting body or, if authorized by this
article, another governmental entity that is not an adopting body, may
take an action under this article only by ordinance, unless this article
permits the action to be taken by resolution.
(b) The department of local government finance, in consultation
with the department of state revenue, may make electronically available
uniform notices, ordinances, and resolutions that an adopting body or
other governmental entity may use to take an action under this article.
An adopting body or other governmental entity may submit a proposed
notice, ordinance, or resolution to the department of local government
finance for review not later than thirty (30) days prior to the date that
the adopting body or governing body intends to submit the notice,
adopting ordinance or resolution, and vote results on an ordinance or
resolution under subsection (d). If the adopting body or other
governmental entity wishes to submit the proposed notice, ordinance,
or resolution to the department of local government finance for review,
the adopting body or other governmental entity shall submit the
proposed notice, ordinance, or resolution to the department of local
government finance on the prescribed forms. The department of local
government finance shall provide to the submitting entity a
determination of the appropriateness of the proposed notice, ordinance,
or resolution, including recommended modifications, within thirty (30)
days of receiving the proposed notice, ordinance, or resolution.
(c) An ordinance or resolution adopted under this article must
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comply with the notice and hearing requirements set forth in IC 5-3-1.
(d) The department of local government finance shall prescribe the
procedures to be used by the adopting body or governmental entity for
submitting to the department the notice, the adopting ordinance or
resolution, and the vote results on an ordinance or resolution. The
department of local government finance shall notify the submitting
entity within thirty (30) days after submission whether the department
has received the necessary information required by the department. A
final action taken by an adopting body or governmental entity under
this article to impose a new tax or amend an existing tax is not effective
until the department of local government finance notifies the adopting
body or governmental entity that it has received the required
information from the submitting entity.
(e) Not later than July 1 of each calendar year, the county
auditor shall certify to the department of local government finance
and to the state GIS officer which taxing units comprise each
taxing district in the county.
SECTION 113. IC 6-3.6-3-2.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2027]: Sec. 2.5. (a) As used in this section,
"debt service obligations" refers to:
(1) the principal and interest payable during a calendar year
on bonds;
(2) lease rental payments payable during a calendar year on
leases; and
(3) any amount required under an agreement for bonds or
leases to be deposited in a sinking fund or other reserve
during a calendar year;
of a county, city, or town payable from local income taxes.
(b) Before August 1 of each calendar year, the fiscal officer of
each county, city, and town shall provide the department of local
government finance with the total amount of the county's, city's, or
town's debt service obligations payable from local income tax
revenues that will be due in the ensuing calendar year and, upon
request by the department of local government finance, any
additional ensuing calendar years.
(c) The department of local government finance shall annually
determine whether each county, city, or town with debt service
obligations due in the ensuing year has timely submitted to the
department of local government finance the information required
under this section.
SECTION 114. IC 6-3.6-3-3, AS AMENDED BY P.L.68-2025,
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SECTION 103, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2028]: Sec. 3. (a) Except as provided in
subsection (f), an ordinance adopted by a county under this article takes
effect as provided in this section.
(b) An ordinance that adopts, increases, decreases, or rescinds a tax
or a tax rate takes effect as follows:
(1) An ordinance adopted on or before October 1 of a calendar
year shall take effect on January 1 of the calendar year that
immediately succeeds the year in which the ordinance is adopted.
(2) An ordinance adopted after October 1 of a calendar year shall
take effect on January 1 of the second succeeding calendar year
following the year the ordinance is adopted.
However, an ordinance adopted to impose a tax rate under
IC 6-3.6-6-2(b)(3) or IC 6-3.6-6-2(b)(4) must be adopted on or before
October 1 of a calendar year.
(c) An ordinance that grants, increases, decreases, rescinds, or
changes a credit against the property tax liability of a taxpayer under
IC 6-3.6-5 (before its expiration) takes effect as follows:
(1) An ordinance adopted after December 31 of the immediately
preceding year and before November 2 of the current year takes
effect on January 1 of, and applies to property taxes first due and
payable in, the year immediately following the year in which the
ordinance is adopted.
(2) An ordinance adopted after November 1 of the current year
and before January 1 of the immediately succeeding year takes
effect on January 1 of, and applies to property taxes first due and
payable in, the year that follows the current year by two (2) years.
This subsection expires December 31, 2027. 2028.
(d) An ordinance that grants, increases, decreases, rescinds, or
changes a distribution or allocation of taxes takes effect as follows:
(1) An ordinance adopted on or before October 1 of a calendar
year shall take effect on January 1 of the calendar year that
immediately succeeds the year in which the ordinance is adopted.
(2) An ordinance adopted after October 1 of a calendar year shall
take effect on January 1 of the second succeeding calendar year
following the year the ordinance is adopted.
(e) An ordinance not described in subsections (b) through (d) takes
effect as provided under IC 36 for other ordinances of the
governmental entity adopting the ordinance.
(f) An ordinance described in section 7(e) or 7.5(e) of this chapter
that changes a tax rate or changes the allocation of revenue received
from a tax rate does not take effect as provided under this section if the
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county adopting body fails to meet the required deadlines for notice
described in section 7(e) or 7.5(e) of this chapter. If an ordinance does
not take effect, the tax rate or allocation, as applicable, that is subject
to the proposed change in the ordinance shall be the lesser of the:
(1) applicable distribution schedule for the certified distribution
for the upcoming calendar year; or
(2) applicable distribution schedule for the certified distribution
for the current calendar year;
unless, or until, a subsequent ordinance is adopted and the required
deadlines for notice described in section 7(e) or 7.5(e) of this chapter
are met. This subsection expires January 1, 2025.
SECTION 115. IC 6-3.6-3-4, AS AMENDED BY P.L.68-2025,
SECTION 105, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2028]: Sec. 4. (a) Except for a tax rate that has
an expiration date, and except as provided in section 3(f) of this chapter
(before its expiration), a tax rate remains in effect until the effective
date of an ordinance that increases, decreases, or rescinds that tax rate.
(b) A tax rate may not be changed more than once each year under
this article.
(c) A local income tax expenditure tax rate that is imposed in a
county under IC 6-3.6-6 continues in effect after December 31, 2027,
2028, only if the adopting body adopts an ordinance to renew the
expenditure tax rate beginning January 1, 2028. 2029. However, if
there are bonds or leases outstanding that are payable from a tax
imposed under IC 6-3.6-6, the expenditure tax rate for the county
beginning January 1, 2029, under IC 6-3.6-6-2(b)(1) shall be at
least the minimum tax rate necessary to produce one and
twenty-five hundredths (1.25) times the sum of the:
(1) highest annual outstanding debt service;
(2) highest annual lease payments; and
(3) any amount required under the agreements for the bonds
or leases to be deposited in a sinking fund or other reserve;
but only until the maturity date of those debt obligations. An
ordinance under this subsection must be adopted by the adopting body
on or before October 1, 2027, 2028, as set forth in section 3(b)(1) of
this chapter. However, this subsection shall not be construed to prohibit
an adopting body that fails to adopt an ordinance to continue an
expenditure tax rate after December 31, 2027, 2028, from adopting an
ordinance under this article to impose, renew, or modify an expenditure
tax rate under IC 6-3.6-6 beginning January 1, 2029, 2030, or any year
thereafter.
SECTION 116. IC 6-3.6-3-5, AS AMENDED BY P.L.223-2025,
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SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 5. (a) The auditor of a county shall record all
votes taken on ordinances presented for a vote under this article and
not more than ten (10) days after the vote, send a certified copy of the
results to:
(1) the commissioner of the department of state revenue; and
(2) the commissioner of the department of local government
finance;
in an electronic format approved by the commissioner of the
department of local government finance.
(b) Except as provided in subsection (c), this subsection applies only
to a county that has a local income tax council. The county auditor may
cease sending certified copies after the county auditor sends a certified
copy of results showing that members of the local income tax council
have cast a majority of the votes on the local income tax council for or
against the proposed ordinance.
(c) This subsection applies only to a county with a single voting bloc
that proposes to increase (but not decrease) a tax rate in the county. The
county auditor may cease sending certified copies of the votes on the
local income tax council voting as a whole under section 9.5 of this
chapter after the county auditor sends a certified copy of results
showing that the individuals who sit on the fiscal bodies of the county,
cities, and towns that are members of the local income tax council have
cast a majority of the votes on the local income tax council voting as a
whole under section 9.5 of this chapter for or against the proposed
ordinance. This subsection expires May 31, 2027. 2028.
SECTION 117. IC 6-3.6-3-5, AS AMENDED BY P.L.223-2025,
SECTION 5, AND AS AMENDED BY P.L.68-2025, SECTION 106,
AND AS AMENDED BY THE TECHNICAL CORRECTIONS BILL
OF THE 2026 GENERAL ASSEMBLY, IS CORRECTED AND
AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2028]:
Sec. 5. (a) The auditor of a county (or the fiscal officer of a
municipality in the case of a local income tax imposed under
IC 6-3.6-6-22) shall record all votes taken on ordinances presented for
a vote under this article and not more than ten (10) days after the vote,
send a certified copy of the results to:
(1) the commissioner of the department of state revenue; and
(2) the commissioner of the department of local government
finance;
in an electronic format approved by the commissioner of the
department of local government finance.
(b) Except as provided in subsection (c), this subsection applies
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only to a county that has a local income tax council. The county
auditor may cease sending certified copies after the county auditor
sends a certified copy of results showing that members of the local
income tax council have cast a majority of the votes on the local
income tax council for or against the proposed ordinance.
(c) This subsection applies only to a county with a single voting
bloc that proposes to increase (but not decrease) a tax rate in the
county. The county auditor may cease sending certified copies of the
votes on the local income tax council voting as a whole under section
9.5 of this chapter after the county auditor sends a certified copy of
results showing that the individuals who sit on the fiscal bodies of the
county, cities, and towns that are members of the local income tax
council have cast a majority of the votes on the local income tax
council voting as a whole under section 9.5 of this chapter for or
against the proposed ordinance. This subsection expires May 31, 2028.
SECTION 118. IC 6-3.6-3-6, AS AMENDED BY P.L.223-2025,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 6. (a) This section applies to a county in
which the county adopting body is a local income tax council.
(b) In the case of a city or town that lies within more than one (1)
county, the county auditor of each county shall base the allocations
required by subsections (d) and (e) on the population of that part of the
city or town that lies within the county for which the allocations are
being made.
(c) Each local income tax council has a total of one hundred (100)
votes.
(d) Each county, city, or town that is a member of a local income tax
council is allocated a percentage of the total one hundred (100) votes
that may be cast. The percentage that a city or town is allocated for a
year equals the same percentage that the population of the city or town
bears to the population of the county. The percentage that the county
is allocated for a year equals the same percentage that the population
of all areas in the county not located in a city or town bears to the
population of the county.
(e) This subsection applies only to a county with a single voting
bloc. Each individual who sits on the fiscal body of a county, city, or
town that is a member of the local income tax council is allocated for
a year the number of votes equal to the total number of votes allocated
to the particular county, city, or town under subsection (d) divided by
the number of members on the fiscal body of the county, city, or town.
This subsection expires May 31, 2027. 2028.
(f) On or before January 1 of each year, the county auditor shall
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certify to each member of the local income tax council the number of
votes, rounded to the nearest one hundredth (0.01), each member has
for that year.
(g) This subsection applies only to a county with a single voting
bloc. On or before January 1 of each year, in addition to the
certification to each member of the local income tax council under
subsection (f), the county auditor shall certify to each individual who
sits on the fiscal body of each county, city, or town that is a member of
the local income tax council the number of votes, rounded to the
nearest one hundredth (0.01), each individual has under subsection (e)
for that year. This subsection expires May 31, 2027. 2028.
SECTION 119. IC 6-3.6-3-8, AS AMENDED BY P.L.223-2025,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 8. (a) This section applies to a county in
which the county adopting body is a local income tax council.
(b) Except as provided in subsection (e), any member of a local
income tax council may present an ordinance for passage. To do so, the
member must adopt a resolution to propose the ordinance to the local
income tax council and distribute a copy of the proposed ordinance to
the county auditor. The county auditor shall treat any proposed
ordinance distributed to the auditor under this section as a casting of all
that member's votes in favor of the proposed ordinance.
(c) Except as provided in subsection (f), the county auditor shall
deliver copies of a proposed ordinance the auditor receives to all
members of the local income tax council within ten (10) days after
receipt. Subject to subsection (d), once a member receives a proposed
ordinance from the county auditor, the member shall vote on it within
thirty (30) days after receipt.
(d) Except as provided in subsection (h), if, before the elapse of
thirty (30) days after receipt of a proposed ordinance, the county
auditor notifies the member that the members of the local income tax
council have cast a majority of the votes on the local income tax
council for or against the proposed ordinance the member need not
vote on the proposed ordinance.
(e) This subsection applies only to a county with a single voting bloc
that proposes to increase (but not decrease) a tax rate in the county. The
fiscal body of any county, city, or town that is a member of a local
income tax council may adopt a resolution to propose an ordinance to
increase a tax rate in the county to be voted on by the local income tax
council as a whole as required under section 9.5 of this chapter and
distribute a copy of the proposed ordinance to the county auditor. The
county auditor shall treat the vote tally on the resolution adopted under
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this subsection for each individual who is a member of the fiscal body
of the county, city, or town as the voting record for that individual
either for or against the ordinance being proposed for consideration by
the local income tax council as a whole under section 9.5 of this
chapter. This subsection expires May 31, 2027. 2028.
(f) This subsection applies only to a county with a single voting bloc
that proposes to increase (but not decrease) a tax rate in the county. The
county auditor shall deliver copies of a proposed ordinance the auditor
receives under subsection (e) to the fiscal officers of all members of the
local income tax council (other than the member proposing the
ordinance under subsection (e)) within ten (10) days after receipt.
Subject to subsection (h), once a member receives a proposed
ordinance from the county auditor, the member shall vote on it within
thirty (30) days after receipt. This subsection expires May 31, 2027.
2028.
(g) This subsection applies only to a county with a single voting
bloc that proposes to increase (but not decrease) a tax rate in the
county. The fiscal body of each county, city, or town voting on a
resolution to propose an ordinance under subsection (e), or voting on
a proposed ordinance being considered by the local income tax council
as a whole under section 9.5 of this chapter, must take a roll call vote
on the resolution or the proposed ordinance. If an individual who sits
on the fiscal body is absent from the meeting in which a vote is taken
or abstains from voting on the resolution or proposed ordinance, the
fiscal officer of the county, city, or town shall nevertheless consider
that individual's vote as a "no" vote against the resolution or the
proposed ordinance being considered, whichever is applicable, for
purposes of the vote tally under this section and shall note on the vote
tally that the individual's "no" vote is due to absence or abstention. The
fiscal body of each county, city, or town shall certify the roll call vote
on a resolution or a proposed ordinance, either for or against, to the
county auditor as set forth under this chapter. This subsection expires
May 31, 2027. 2028.
(h) This subsection applies only to a county with a single voting
bloc that proposes to increase (but not decrease) a tax rate in the
county. If, before the elapse of thirty (30) days after receipt of a
proposed ordinance under subsection (e), the county auditor notifies
the member that the individuals who sit on the fiscal bodies of the
county, cities, and towns that are members of the local income tax
council have cast a majority of the votes on the local income tax
council for or against a proposed ordinance voting as a whole under
section 9.5 of this chapter, the member need not vote on the proposed
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ordinance under subsection (e). This subsection expires May 31, 2027.
2028.
SECTION 120. IC 6-3.6-3-9.5, AS AMENDED BY P.L.68-2025,
SECTION 111, AND P.L.223-2025, SECTION 8, IS AMENDED TO
READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 9.5. (a)
This section applies to a county:
(1) in which the county adopting body is a local income tax
council;
(2) that is a county with a single voting bloc; and
(3) that proposes to increase a tax rate in the county.
However, the provisions under section 9 of this chapter shall apply to
a county described in subdivisions (1) and (2) that proposes to decrease
a tax rate in the county.
(b) A local income tax council described in subsection (a) must vote
as a whole to exercise its authority to increase a tax rate under this
article.
(c) A resolution passed by the fiscal body of a county, city, or town
that is a member of the local income tax council exercises the vote of
each individual who sits on the fiscal body of the county, city, or town
on the proposed ordinance, and the individual's vote may not be
changed during the year.
(d) This section expires May 31, 2027. 2028.
SECTION 121. IC 6-3.6-3-12 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2028]: Sec. 12. (a) This section applies to an
ordinance adopted under this article after June 30, 2028.
(b) This subsection applies only to an ordinance adopted
between January 1 and August 2 of a calendar year or October 2
and December 31 of a calendar year. If an adopting body adopts an
ordinance to impose a local income tax under:
(1) IC 6-3.6-6-2(b)(1) through IC 6-3.6-6-2(b)(4);
(2) IC 6-3.6-6-22; or
(3) IC 6-3.6-7;
that exceeds the applicable maximum tax rate or applicable
maximum aggregate tax rate allowable pursuant to IC 6-3.6-6-2,
IC 6-3.6-6-22, or IC 6-3.6-7, the department of local government
finance shall notify the adopting body and county fiscal officer or
municipal fiscal officer, as applicable, not later than thirty (30)
days after the adopting body submits the ordinance and
information required under IC 6-3.6-6-2 that one (1) or more tax
rates exceed the maximum allowable tax rate.
(c) This subsection applies only to an ordinance adopted
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between January 1 and August 2 of a calendar year or October 2
and December 31 of a calendar year. Not later than thirty (30) days
after receiving a notification under subsection (b) from the
department of local government finance, the adopting body may
adopt an ordinance correcting the applicable tax rate or tax rates.
The following apply to an ordinance adopted under this subsection:
(1) Any statutory requirements for an ordinance that
otherwise apply to an ordinance adopted under this article to
impose a local income tax rate also apply to an ordinance
adopted under this subsection.
(2) If the tax rate or tax rates adopted in an ordinance
adopted under this subsection still exceed a maximum
allowable tax rate or maximum allowable aggregate tax rate,
the ordinance adopted under this subsection shall be
considered void and treated as if the adopting body did not
adopt any additional ordinance under this subsection.
(3) An ordinance adopted under this subsection has the same
effective date as the initial ordinance described in subsection
(b).
(d) If an adopting body adopts an ordinance between August 3
and October 1 of a calendar year to impose a local income tax that
exceeds a maximum allowable tax rate or rates, fails to adopt an
ordinance correcting the applicable tax rate or tax rates under
subsection (c), or, the ordinance is described in subsection (c)(2),
the tax rate or rates will be reduced according to the following:
(1) If a tax rate or tax rates imposed pursuant to
IC 6-3.6-6-2(b)(1) through IC 6-3.6-6-2(b)(4), IC 6-3.6-6-22, or
IC 6-3.6-7 exceed the maximum allowable rate specified in
IC 6-3.6-6-2(b)(1) through IC 6-3.6-6-2(b)(4), IC 6-3.6-6-22, or
IC 6-3.6-7, the tax rate or tax rates that exceed the maximum
allowable rate shall be reduced to the maximum allowable
rate without further action by the adopting body.
(2) If the aggregate tax rates imposed pursuant to
IC 6-3.6-6-2(b)(1) through IC 6-3.6-6-2(b)(3) exceed the
maximum allowable aggregate rate in IC 6-3.6-6-2(c), the tax
rates shall be reduced without any further action by the
adopting body according to the following:
(A) Any portion of the aggregate tax rate that exceeds the
maximum allowable rate shall first be applied by reducing
the tax rate imposed under IC 6-3.6-6-2(b)(1), but may not
reduce the rate below the tax rate otherwise required
under this article.
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(B) Any remaining portion of the aggregate tax rate that
exceeds the maximum allowable rate after the reduction in
clause (A) shall be applied to reduce the tax rates imposed
under IC 6-3.6-6-2(b)(2) and IC 6-3.6-6-2(b)(3) in
proportion to the total rates imposed under
IC 6-3.6-6-2(b)(2) and IC 6-3.6-6-2(b)(3).
(3) If the tax rate or rates exceed both the maximum allowable
rate specified in IC 6-3.6-6-2(b)(1) through IC 6-3.6-6-2(b)(3)
and the maximum allowable aggregate tax rate in
IC 6-3.6-6-2(c), the tax rates shall first be reduced in the
manner set forth in subdivision (1) before application of the
reduction manner set forth in subdivision (2).
(4) Any tax rate reduction under this subsection has the same
effective date as the initial ordinance described in subsection
(b).
SECTION 122. IC 6-3.6-3-13 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 13. The following apply
beginning March 1, 2026:
(1) Each county may, prior to October 1, 2026, convene a
Municipal Unit Strategic Taskforce (MUST) with one (1)
representative from the county council and each city and town
fiscal officer in the county to negotiate and establish through
unanimous support a local income tax distribution agreement
as it pertains to the county's maximum local income tax rates
under IC 6-3.6-6-2(b)(1) and IC 6-3.6-6-2(b)(4). The
committee may not include representatives from the fire
protection and emergency medical services as defined in
IC 6-3.6-6-4.3 and nonmunicipal civil taxing units as defined
in IC 6-3.6-6-0.5.
(2) If the Municipal Unit Strategic Taskforce (MUST)
establishes a local income tax distribution agreement under
subdivision (1), the county shall send the local income tax
distribution agreement to the department of local government
finance. The department of local government finance shall
compile a report of all local income tax distribution
agreements and submit the report to the legislative council in
an electronic format under IC 5-14-6 prior to December 1,
2026.
SECTION 123. IC 6-3.6-5-7, AS ADDED BY P.L.68-2025,
SECTION 116, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2028]: Sec. 7. This chapter expires December
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31, 2027. 2028.
SECTION 124. IC 6-3.6-6-2, AS AMENDED BY P.L.68-2025,
SECTION 118, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2028]: Sec. 2. (a) This section applies to all
counties.
(b) The adopting body may by ordinance and subject to subsections
(c) through (e) impose one (1) or more of the following component
rates not to exceed a total expenditure tax rate under this chapter of two
and nine-tenths percent (2.9%) on the adjusted gross income of
taxpayers who reside in the county, or, in the case of a team member
or race team member described in IC 6-3.6-2-13(3), on the adjusted
gross income earned as a team member or race team member in
the county:
(1) A tax rate not to exceed one and two-tenths percent (1.2%) for
general purpose revenue for county services (as provided in
section 4 of this chapter), subject to subsection (c).
(2) A tax rate not to exceed four-tenths of one percent (0.4%) for
providers of fire protection and or emergency medical services
located within the county (as provided in section 4.3 of this
chapter), subject to subsection (c).
(3) A tax rate not to exceed two-tenths of one percent (0.2%) for
general purpose revenue for distribution to nonmunicipal civil
taxing units (excluding fire protection districts) located within the
county (as provided in section 4.5 of this chapter), subject to
subsection (c).
(4) A tax rate not to exceed one and two-tenths percent (1.2%) for
general purpose revenue for municipal services for distribution to
municipalities located within the county that are not eligible to
adopt a municipal tax rate under section 22 of this chapter or that
have made an election under section 23(b)(3) of this chapter to be
treated as such. The adopting body shall identify in the
ordinance each taxing district in which the tax rate under this
subdivision is imposed.
(c) The combined component rates imposed by an adopting body
under subsection (b)(1) through (b)(3) shall not exceed one and
seven-tenths percent (1.7%).
(d) A tax rate adopted under subsection (b)(4) may only be imposed
on taxpayers who do not reside in a municipality that is eligible to
adopt a municipal tax rate under section 22 of this chapter and has not
made an election under section 23(b)(3) of this chapter. In the case
of a team member or race team member described in
IC 6-3.6-2-13(3), a tax rate adopted under subsection (b)(4) may
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only be imposed on services performed as a team member or race
team member at a location if the county could impose the tax rate
on an individual residing at that location.
(e) Beginning after December 31, 2030, A tax rate imposed under
subsection (b) shall expire expires on December 31, 2031, and on
December 31 of each calendar year thereafter. An adopting body
wishing to continue, increase, or decrease a tax rate in for the
succeeding year must pass an ordinance to readopt a tax rate in
accordance with IC 6-3.6-3-3. This subsection applies regardless of
whether there is a modification in the tax rate or the component rates
or the rates are unchanged from the previous year.
(f) Notwithstanding subsection (e) or any other provision of this
article, if there are bonds, leases, or other obligations payable from
a tax imposed under subsection (b)(1) or (b)(4), the expenditure tax
rate for the county under subsection (b)(1) or (b)(4) for a calendar
year shall be the minimum tax rate necessary to produce one and
twenty-five hundredths (1.25) times the sum of the:
(1) highest annual outstanding debt service;
(2) highest annual lease payments; and
(3) any amount required under the agreements for the bonds
or leases to be deposited in a sinking fund or other reserve;
for the calendar year payable from the applicable component rate.
SECTION 125. IC 6-3.6-6-3, AS AMENDED BY P.L.137-2024,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 3. (a) Revenue raised from a tax imposed under
this chapter shall be treated as follows:
(1) To make the following distributions:
(A) If an ordinance described in section 2.5 of this chapter is
in effect in a county, to make a distribution to the county equal
to the amount of revenue generated by the rate imposed under
section 2.5 of this chapter.
(B) If an ordinance described in section 2.6 of this chapter is
in effect in a county, to make a distribution to the county equal
to the amount of revenue generated by the rate imposed under
section 2.6 of this chapter.
(C) If an ordinance described in section 2.7 of this chapter is
in effect in a county, to make a distribution to the county equal
to the amount of revenue generated by the rate imposed under
section 2.7 of this chapter.
(D) If an ordinance described in section 2.8 of this chapter is
in effect in a county, to make a distribution to the county equal
to the amount of revenue generated by the rate imposed under
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section 2.8 of this chapter.
(E) If an ordinance described in section 2.9 of this chapter
(before its repeal) is in effect in a county, to make a
distribution to the county equal to the amount of revenue
generated by the rate imposed under section 2.9 of this
chapter.
(F) If an ordinance described in section 3.1 of this chapter
(before its expiration) is in effect in a county, to make a
distribution to the county equal to the amount of revenue
generated by the rate imposed under section 3.1 of this
chapter.
(2) After making the distributions described in subdivision (1), if
any, to make distributions to school corporations and civil taxing
units in counties that formerly imposed a tax under IC 6-3.5-1.1
(repealed). The revenue categorized from the next twenty-five
hundredths percent (0.25%) of the rate for a former tax adopted
under IC 6-3.5-1.1 (repealed) shall be allocated to school
corporations and civil taxing units. The amount of the allocation
to a school corporation or civil taxing unit shall be determined
using the allocation amounts for civil taxing units and school
corporations in the county.
(3) After making the distributions described in subdivisions (1)
and (2), the remaining revenue shall be treated as additional
revenue (referred to as "additional revenue" in this chapter).
Additional revenue may not be considered by the department of
local government finance in determining:
(A) any taxing unit's maximum permissible property tax levy
limit under IC 6-1.1-18.5; or
(B) the approved property tax rate for any fund.
(b) In the case of a civil taxing unit that has pledged the tax from
additional revenue for the payment of bonds, leases, or other
obligations as reported by the civil taxing unit under IC 5-1-18, the
adopting body may not, under section 4 of this chapter, reduce the
proportional allocation of the additional revenue that was allocated in
the preceding year if the reduction for that year would result in an
amount less than the amount necessary for the payment of bonds,
leases, or other obligations payable or required to be deposited in a
sinking fund or other reserve in that year for the bonds, leases, or other
obligations for which the tax from additional revenue has been pledged.
To inform an adopting body with regard to allocations that affect the
payment of bonds, leases, or other obligations, a taxing unit may
provide the adopting body with information regarding any outstanding
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bonds, leases, or other obligations that are secured by additional
revenue. The information must be provided before the date of the
public hearing at which the adopting body may change the allocation
of additional revenue under section 4 of this chapter.
SECTION 126. IC 6-3.6-6-3.1, AS ADDED BY P.L.68-2025,
SECTION 125, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025 (RETROACTIVE)]: Sec. 3.1. (a) As used
in this section, "homestead" has the meaning set forth in
IC 6-1.1-12-37.
(b) A county fiscal body may adopt an ordinance to impose a tax
rate for the purpose of funding property tax homestead credits to reduce
the property tax liability of taxpayers who own homesteads that are:
(1) located in the county; and
(2) eligible for a credit under IC 6-1.1-20.6-7.5 that limits the
taxpayer's property tax liability for the property to one percent
(1%).
Revenue collected from a tax rate imposed under this section may only
be used to fund replacement of the county's property tax levy. Property
taxes imposed due to a referendum in which a majority of the voters in
the taxing unit imposing the property taxes approved the property taxes
are not eligible for a credit under this section.
(c) The tax rate must be in increments of one-hundredth of one
percent (0.01%) and may not exceed three-tenths of one percent
(0.3%).
(d) A tax imposed under this section shall be treated as property
taxes for all purposes. However, the department of local government
finance may not reduce:
(1) any taxing unit's maximum permissible property tax levy limit
under IC 6-1.1-18.5; or
(2) the approved property tax levy or rate for any fund;
by the amount of any credits granted under this chapter.
(e) The homestead credits shall be applied to the net property taxes
due on the homestead after the application of any credit granted under
IC 6-1.1, including any credit granted under IC 6-1.1-20.4 and
IC 6-1.1-20.6.
(f) The property tax credits must be applied uniformly to provide a
homestead credit for homesteads in the county.
(g) The county auditor shall allocate the amount of revenue applied
as tax credits under this section to the taxing units that imposed the
eligible property taxes against which the credits are applied.
(h) The department of local government finance shall assist county
fiscal bodies and county auditors in calculating credit percentages and
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amounts.
(i) Notwithstanding any provision to the contrary in this chapter, a
tax imposed under this section:
(1) may be imposed on the adjusted gross income of taxpayers
before January 1, 2028; 2029; and
(2) terminates and may not be imposed on the adjusted gross
income of taxpayers after December 31, 2027. 2028.
(j) This section expires January 1, 2028. 2029.
SECTION 127. IC 6-3.6-6-4, AS AMENDED BY P.L.68-2025,
SECTION 126, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2028]: Sec. 4. (a) General purpose revenue
raised from a tax rate under section 2(b)(1) of this chapter must be
distributed directly to the county. The money may be used by the
county fiscal body for any of the purposes of the county, including for:
(1) public safety, including funding for a PSAP;
(2) economic development purposes described in IC 6-3.6-10;
(3) acute care hospitals;
(4) correctional facilities and rehabilitation facilities; and
(5) county staff expenses of the state judicial system. and
(6) homestead property tax credits to fund replacement of the
county's property tax levy.
(b) Subject to sections 3 and 5 of this chapter, the adopting body
shall, by ordinance, determine how general purpose revenue from a tax
under this chapter must be allocated in subsequent years. The
allocations are subject to IC 6-3.6-11. The ordinance must be adopted
as provided in IC 6-3.6-3 and takes effect and applies as specified in
IC 6-3.6-3-3. The ordinance continues to apply thereafter until it is
rescinded or modified.
SECTION 128. IC 6-3.6-6-4.3, AS ADDED BY P.L.68-2025,
SECTION 127, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2028]: Sec. 4.3. (a) Revenue raised from a tax
rate for fire protection and or emergency medical services under
section 2(b)(2) of this chapter shall be distributed by the county to
among the county and each fire protection district, fire protection
territory, and municipal fire department located within the county that
provides fire protection, emergency medical services, or both in the
county. Except as provided in subsection (b), at the discretion of the
county council, the county may distribute revenue raised from a tax rate
for fire protection and or emergency medical services under section
2(b)(2) of this chapter to township fire departments and volunteer fire
departments that provide fire protection, emergency medical
services, or both in the county.
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(b) Revenue raised from a tax rate for fire protection and emergency
medical services under section 2(b)(2) of this chapter shall be allocated
to each fire protection district, fire protection territory, municipal fire
department, and, if applicable, township fire departments and volunteer
fire departments, based on the following formula:
STEP ONE: For each provider of fire protection and emergency
medical services located within the county that is eligible to
receive revenue under this section, determine the population
living within the service boundaries of the provider using the
most recent federal decennial census.
STEP TWO: For each provider of fire protection and emergency
medical services located within the county that is eligible to
receive revenue under this section, determine the number of
square miles within the service boundaries of the provider.
STEP THREE: For each provider of fire protection and
emergency medical services located within the county that is
eligible to receive revenue under this section, determine the
product of:
(A) the STEP TWO amount; multiplied by
(B) twenty (20).
STEP FOUR: For each provider of fire protection and emergency
medical services located within the county that is eligible to
receive revenue under this section, determine the sum of:
(A) the STEP ONE result; plus
(B) the STEP THREE result.
STEP FIVE: Determine the sum total of the STEP FOUR results
for each provider of fire protection and emergency medical
services located within the county that is eligible to receive
revenue under this section.
STEP SIX: The percentage of revenue that shall be distributed to
each provider of fire protection and emergency medical services
located within the county that is eligible to receive revenue under
this section is equal to:
(A) the STEP FOUR result for the provider; divided by
(B) the STEP FIVE result.
(b) Subject to subsection (d), the county may determine the
allocation method for revenue raised from a tax rate for fire
protection or emergency medical services under section 2(b)(2) of
this chapter. However, in determining the allocation method, the
county shall, for each provider of fire protection, emergency
medical services, or both in the county, consider the service
boundaries of the provider and the population living within the
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service boundaries of the provider using the most recent federal
decennial census.
(c) If at least fifty percent (50%) of fire runs made by a
township fire department during the calendar year preceding by
two (2) years the calendar year in which distribution amounts are
being determined are carried out by full-time firefighters who
receive a salary of at least thirty thousand dollars ($30,000), the
county shall distribute an allocation of revenue to the township fire
department under this section.
(d) In the case of a county that provides fire protection,
emergency medical services, or both in part of the county, but not
the entire county, only the part of the county in which the county
provides the fire protection, emergency medical services, or both
are considered within the service boundaries for the county.
(e) For purposes of a distribution under this section, a
distribution to a:
(1) fire protection territory shall be made to the provider unit
of the fire protection territory; and
(2) volunteer fire department shall be made to the taxing unit
that is served by the volunteer fire department.
(f) If the population living within the service boundaries of a
provider cannot be determined using data from the United States
Census Bureau, the county may determine an estimated population
based on income tax returns that report a residence located within
the service boundaries of the provider. The county auditor shall
provide the estimated population to the department of local
government finance not later than July 15 of the calendar year that
precedes the calendar year before the year in which the
distribution is made. If the county auditor does not provide an
estimated population under this subsection, the department of local
government finance may use the most recent estimated population
provided by the county auditor or the department of state revenue.
SECTION 129. IC 6-3.6-6-4.5, AS AMENDED BY THE
TECHNICAL CORRECTIONS BILL OF THE 2026 GENERAL
ASSEMBLY, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2028]: Sec. 4.5. (a) Revenue raised from a tax rate for
nonmunicipal civil taxing units under section 2(b)(3) of this chapter
may be distributed by the county to nonmunicipal civil taxing units
subject to the provisions of this section.
(b) Subject to the maximum aggregate tax rate of not more than
two-tenths of one percent (0.2%) under section 2(b)(3) of this chapter,
the adopting body may adopt a tax rate for each type of nonmunicipal
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civil taxing unit, which may not exceed more than five-hundredths of
one percent (0.05%) for any given unit type. The revenue raised from
a tax rate for a specific type of nonmunicipal civil taxing unit shall be
allocated to all nonmunicipal civil taxing units of that same type
located within the county on a pro rata per capita basis, subject to
subsection (e). subsections (e) and (h).
(c) A county solid waste management district (as defined in
IC 13-11-2-47) or a joint solid waste management district (as defined
in IC 13-11-2-113) is not an eligible nonmunicipal civil taxing unit for
the purpose of receiving an allocation of general purpose revenue under
this chapter unless a majority of the members of each of the county
fiscal bodies of the counties within the district passes a resolution
approving the distribution.
(d) A resolution passed by a county fiscal body under subsection (c)
may:
(1) expire on a date specified in the resolution; or
(2) remain in effect until the county fiscal body revokes or
rescinds the resolution.
(e) A nonmunicipal civil taxing unit wishing to receive a share of
revenue under this section in a year must adopt a resolution requesting
the distribution from the county and must provide a certified copy of
the resolution to the adopting body and the state board of accounts
not later than July 1 of the year immediately preceding the distribution
year. Not later than August 1 of the year immediately preceding the
distribution year, the adopting body shall hold a public hearing on the
resolution requesting the distribution and provide the public with
notice of the time and place where the public hearing will be held. The
notice must be given in accordance with IC 5-3-1 and include a
description of the resolution requesting the distribution from the
county.
(f) If a nonmunicipal civil taxing unit adopts a resolution under this
subsection subsection (e) and provides the resolution to the adopting
body as set forth in this that subsection, the county shall distribute to
the nonmunicipal civil taxing unit an amount of revenue raised from
the tax rate under section 2(b)(3) of this chapter for the distribution
year as set forth in subsection (f). (g).
(g) If one (1) or more, but not all, nonmunicipal civil taxing units
adopt a resolution under subsection (e) requesting a distribution in a
given year, the county may either distribute the total amount of revenue
raised from the tax rate under section 2(b)(3) of this chapter to only
those nonmunicipal civil taxing units that have provided a resolution
request, or the county may distribute the total amount of revenue raised
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from a tax rate under section 2(b)(3) of this chapter to all nonmunicipal
civil taxing units as set forth in this section. If no nonmunicipal civil
taxing units adopt a resolution to request a distribution in a given year,
the county may retain the revenue raised from a tax rate for
nonmunicipal civil taxing units for that year and use the revenue as
general purpose revenue for the county under section 4 of this chapter.
(h) If the population living within one (1) or more nonmunicipal
civil taxing units cannot be determined using data from the United
States Census Bureau, the county may determine an estimated
population based on income tax returns that report a residence
located within the boundaries of the nonmunicipal civil taxing
units. The county auditor shall provide the estimated population to
the department of local government finance no later than July 15
of the calendar year that precedes the calendar year before the
year in which the distribution is made. If the county auditor does
not provide an estimated population under this subsection, the
department of local government finance may use the most recent
estimated population provided by the county auditor or the
department of state revenue.
SECTION 130. IC 6-3.6-6-6.1, AS AMENDED BY THE
TECHNICAL CORRECTIONS BILL OF THE 2026 GENERAL
ASSEMBLY, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2028]: Sec. 6.1. (a) Revenue raised from a tax rate for certain
cities and towns under section 2(b)(4) of this chapter may shall be
distributed by the county to those cities and towns subject to the
provisions of this section and according to the following formula:
STEP ONE: Determine the population of each city and town
located in the county, excluding the population of any
municipality that:
(A) is eligible to impose a local income tax under section 22
of this chapter; and
(B) did not make an election under section 23(b)(3) of this
chapter.
STEP TWO: Determine the aggregate sum of the STEP ONE
results.
STEP THREE: Determine the sum of:
(A) the STEP TWO result; plus
(B) the population of the unincorporated area of the
county.
STEP FOUR: Divide the STEP TWO result by the STEP
THREE result.
STEP FIVE: Multiply the STEP FOUR result by one and
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five-tenths (1.5), expressed as a percentage. However, the
result may not exceed one hundred percent (100%).
STEP SIX: Multiple the STEP FIVE result by the total
amount of revenue raised from the tax rate imposed under
section 2(b)(4) of this chapter.
STEP SEVEN: For each city and town located in the county
that adopted a resolution under subsection (d) for the year,
excluding any municipality that is eligible to impose a local
income tax under section 22 of this chapter and did not make
an election under section 23(b)(3) of this chapter, divide:
(A) the STEP ONE result for the city or town; by
(B) the STEP TWO result.
STEP EIGHT: To determine the amount to be allocated to
each city and town located in the county that adopted a
resolution under subsection (d) for the year, excluding any
municipality that is eligible to impose a local income tax
under section 22 of this chapter and did not make an election
under section 23(b)(3) of this chapter, multiply:
(A) the STEP SEVEN result for the city or town; by
(B) the STEP SIX result.
STEP NINE: Determine the aggregate sum of the STEP
EIGHT results for each city and town located in the county
that adopted a resolution under subsection (d) for the year,
excluding any municipality that is eligible to impose a local
income tax under section 22 of this chapter and did not make
an election under section 23(b)(3) of this chapter.
STEP TEN: Determine the result of:
(A) the total amount of revenue raised from the tax rate
imposed under section 2(b)(4) of this chapter; minus
(B) the STEP SIX result.
STEP ELEVEN: Determine the result of:
(A) the STEP SIX result; minus
(B) the STEP NINE result.
STEP TWELVE: To determine the amount to be allocated to
the county, determine the sum of:
(A) the STEP TEN result; plus
(B) the STEP ELEVEN result.
(b) Subject to subsection (g), the revenue raised from a tax rate
under section 2(b)(4) of this chapter shall be allocated to the cities and
towns based on the population of the city or the population of the town,
whichever is applicable, compared to the population of all the cities or
the population of all the towns, whichever is applicable, that are
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eligible for a distribution, subject to subsection (d). For purposes of this
determination, section, if the boundaries of a city or town are located
in more than one (1) county, only the portion of the population of the
city or town that is located within the county imposing the tax rate
under section 2(b)(4) of this chapter shall be considered.
(c) The money may be used by the city or town fiscal body for any
of the purposes of the city or town, including public safety (as defined
in IC 6-3.6-2-14) and economic development purposes described in
IC 6-3.6-10. The city or town fiscal body may pledge its general
purpose revenue to the payment of bonds or to lease payments as set
forth in this chapter.
(d) An eligible city or town wishing to receive a share of revenue
under this section in a year must adopt a resolution requesting the
distribution from the county and must provide a certified copy of the
resolution to the adopting body and the state board of accounts not
later than July 1 of the year immediately preceding the distribution
year. Not later than August 1 of the year immediately preceding the
distribution year, the adopting body shall hold a public hearing on the
resolution requesting the distribution and provide the public with
notice of the time and place where the public hearing will be held. The
notice must be given in accordance with IC 5-3-1 and include a
description of the resolution requesting the distribution from the
county.
(e) Subject to subsection (g), If an eligible city or town adopts a
resolution under this subsection (d) and provides the resolution to the
adopting body as set forth in this subsection (d), the county shall
distribute to the eligible city or town unit an amount of revenue raised
from the tax rate under section 2(b)(4) of this chapter for the
distribution year as set forth in subsection (f). (a). If no eligible city or
town adopts a resolution to request a distribution in a given year,
the county may retain all of the revenue raised from a tax rate for
that year.
(f) The county may use any money received under this section
for the purposes described in section 4 of this chapter.
(f) Subject to subsection (g), if one (1) or more, but not all, eligible
cities or towns adopt a resolution under subsection (d) requesting a
distribution in a given year, the county may either distribute the total
amount of revenue raised from the tax rate under section 2(b)(4) of this
chapter to only those eligible cities or towns that have provided a
resolution request, or the county may distribute the total amount of
revenue raised from a tax rate under section 2(b)(4) of this chapter to
all eligible cities or towns as set forth in this section. If no eligible city
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or town adopts a resolution to request a distribution in a given year, the
county may retain the revenue raised from a tax rate for the eligible city
or town for that year and use the revenue as general purpose revenue
for the county under section 4 of this chapter.
(g) Notwithstanding any provision to the contrary in this section, if
an adopting body that imposes a tax rate of one and two-tenths percent
(1.2%) under section 2(b)(1) of this chapter subsequently adopts an
ordinance to concurrently impose a tax rate under section 2(b)(4) of
this chapter:
(1) seventy-five percent (75%) of the revenue received from the
tax rate imposed under section 2(b)(4) of this chapter shall be
retained by the county and may be used for the purposes
described in section 4 of this chapter; and
(2) twenty-five percent (25%) of the revenue received from the
tax rate imposed under section 2(b)(4) of this chapter shall be
distributed among the eligible cities and towns as set forth in this
section and may be used for the purposes set forth in this section.
However, the adopting body may, by ordinance, determine to allocate
any percentage of the revenue that would otherwise be retained by the
county under subdivision (1) to instead be allocated among the eligible
cities and towns under subdivision (2).
SECTION 131. IC 6-3.6-6-21.3, AS AMENDED BY P.L.68-2025,
SECTION 146, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2028]: Sec. 21.3. (a) This section applies to
distributions of revenue before January 1, 2028. 2029. This section:
(1) does not apply to:
(A) distributions made under this chapter to a civil taxing unit
for fire protection services within a fire protection territory
established under IC 36-8-19; or
(B) distributions of revenue under section 9 of this chapter
(before its repeal); and
(2) applies only to the following:
(A) Any allocation or distribution of revenue under section
3(a)(2) of this chapter (as in effect before July 1, 2027) 2028)
that is made on the basis of property tax levies in counties that
formerly imposed a tax under IC 6-3.5-1.1 (before its repeal on
January 1, 2017).
(B) Any allocation or distribution of revenue under section
3(a)(3) of this chapter (as in effect before July 1, 2027) 2028)
that is made on the basis of property tax levies in counties that
formerly imposed a tax under IC 6-3.5-6 (before its repeal on
January 1, 2017).
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(b) Subject to subsection (a), if two (2) or more:
(1) school corporations; or
(2) civil taxing units;
of an adopting county merge or consolidate to form a single school
corporation or civil taxing unit, the school corporation or civil taxing
unit that is in existence on January 1 of the current year is entitled to
the combined pro rata distribution of the revenue under section 3(a)(2)
or 3(a)(3) (as in effect before July 1, 2027) 2028) of this chapter (as
appropriate) allocated to each applicable school corporation or civil
taxing unit in existence on January 1 of the immediately preceding
calendar year prior to the merger or consolidation.
(c) The department of local government finance shall make
adjustments to civil taxing units in accordance with IC 6-1.1-18.5-7.
SECTION 132. IC 6-3.6-6-22, AS ADDED BY P.L.68-2025,
SECTION 147, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2028]: Sec. 22. (a) As used in this section,
"municipality" means only a city or town that:
(1) has a population of three thousand five hundred (3,500) or
more; and
(2) in the case of a city or town whose population decreased in the
most recent federal decennial census from three thousand five
hundred (3,500) or more to less than three thousand five hundred
(3,500), has elected by ordinance to continue to use its previous
population of three thousand five hundred (3,500) or more as set
forth in section 23(b)(2) of this chapter for purposes of the
allocation determination under section 6.1 of this chapter.
The term does not include a city or town that has made an election
under section 23(b)(3) of this chapter.
(b) Beginning after December 31, 2027, 2028, the fiscal body of a
municipality may by ordinance and subject to subsection (e), impose
a local income tax rate on the adjusted gross income of local taxpayers
in the municipality that does not exceed one and two-tenths percent
(1.2%).
(c) The following apply if a municipality imposes a local income tax
rate under this section:
(1) A local income tax rate imposed by a municipality under this
section applies only to local taxpayers within the territory of the
municipality.
(2) The local income tax is imposed in addition to a tax imposed
by the county in which the municipality is located in accordance
with IC 6-3.6-4-1(a) and IC 6-3.6-4-1(c).
(3) The following provisions of this article apply to a local income
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tax rate imposed by a municipality under subsection (b):
(A) IC 6-3.6-3 (adoption of the tax), including the effective
date of an ordinance under IC 6-3.6-3-3.3.
(B) IC 6-3.6-4 (imposition of the tax), except that IC 6-3.6-4-2
and IC 6-3.6-4-3 do not apply.
(C) IC 6-3.6-8 (administration of the tax).
(4) A local income tax rate imposed by a municipality shall apply
to professional athletes who compete in the municipality, unless
exempted under IC 6-3-2-27.5 or other provision of law. team
members and race team members described in
IC 6-3.6-2-13(3) on the income derived from services
performed as a team member or race team member in the
municipality.
(d) The amount of the tax revenue that is from the local income tax
rate imposed under this section and that is collected for a calendar year
shall be treated as general purpose revenue and must be distributed to
the fiscal officer of the municipality that imposed the tax before July 1
of the next calendar year.
(e) Beginning after December 31, 2030, A tax rate imposed under
subsection (b) shall expire expires on December 31, 2031, and on
December 31 of each calendar year thereafter. A municipality
wishing to continue, increase, or decrease a tax rate in for the
succeeding year must pass an ordinance to readopt a tax rate in
accordance with IC 6-3.6-3-3.3. However, if there are bonds, leases,
or other obligations payable from a tax imposed under subsection
(b) that remain outstanding and the municipality fails to adopt an
ordinance to continue the expenditure tax rate under this
subsection, the expenditure tax rate for the municipality for the
succeeding year, or until the maturity date of those debt
obligations, whichever is sooner, shall be the minimum tax rate
necessary to produce one and twenty-five hundredths (1.25) times
the sum of:
(1) the highest annual outstanding debt service;
(2) the highest annual lease payments; and
(3) any amount required under the agreements for the bonds
or leases to be deposited in a sinking fund or other reserve;
for the year. This subsection applies regardless of whether there is a
modification in the tax rate or the rate is unchanged from the previous
year.
(f) A municipality that imposes a local income tax rate under
this section shall work with the county to provide the geographic
information prescribed by the state GIS officer to the state GIS
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officer. The required information must be submitted to the state
GIS officer in the manner prescribed by the state GIS officer not
later than August 1 each year.
SECTION 133. IC 6-3.6-6-23, AS ADDED BY P.L.68-2025,
SECTION 148, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2028]: Sec. 23. (a) This section applies in
determining the population of a city or town for the purposes of this
chapter.
(b) The following apply:
(1) Except as provided in subdivisions (2) and (3), the population
of a city or town is the population of the city or town that is
reported by the 2020 federal decennial census.
(2) Beginning after 2030, 2032, if the population of a city or town
(A) increases from a population of less than three thousand
five hundred (3,500), as reported by the immediately
preceding federal decennial census, to a population of three
thousand five hundred (3,500) or more, as reported by the
most recent federal decennial census, or, if applicable, any
corrected population count (as defined in IC 1-1-3.5-1.5)
issued for the city or town in the year succeeding the most
recent federal decennial census; or
(B) decreases from a population of three thousand five
hundred (3,500) or more, as reported by the immediately
preceding federal decennial census, to a population of less
than three thousand five hundred (3,500), as reported by the
most recent federal decennial census, or, if applicable, any
corrected population count (as defined in IC 1-1-3.5-1.5)
issued for the city or town in the year succeeding the most
recent federal decennial census,
the fiscal body of the city or town may adopt an ordinance on or
before September 1 of the calendar year immediately succeeding
two (2) years after the most recent federal decennial census to
continue to use the population of the city or town as reported by
the immediately preceding federal decennial census and the
resulting determination for the city or town under section 22 of
this chapter, notwithstanding the increase or decrease in its
population as reported by the most recent federal decennial
census as described in this subdivision. An ordinance adopted
under this subdivision shall take effect on January 1 of the
calendar year that immediately succeeds the year in which the
ordinance is adopted. The fiscal officer of the city or town shall
provide a certified copy of an ordinance adopted under this
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subdivision to the department of local government finance.
(3) This subdivision applies only to cities and towns with a
population of more than three thousand five hundred (3,500) or
more. but less than seven thousand (7,000). Notwithstanding any
other provision, a fiscal body of a city or town may adopt an
ordinance to elect to be treated as if the city's or town's population
is less than three thousand five hundred (3,500) for purposes of a
county local income tax rate and distribution under this chapter.
An ordinance adopted under this subdivision shall take effect on
January 1 of the calendar year that immediately succeeds the year
in which the ordinance is adopted. The fiscal officer of the city or
town shall provide a certified copy of an ordinance adopted under
this subdivision to the department of local government finance.
An ordinance adopted by a city or town under this subdivision is
not revocable and shall not expire following the next federal
decennial census. expire December 31, 2032.
SECTION 134. IC 6-3.6-7-0.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2029]: Sec. 0.5. For taxable years
beginning after December 31, 2028, a tax rate imposed by a county
under this chapter may be imposed on a local taxpayer only if the
county could impose the tax rates in IC 6-3.6-6-2(b)(1) through
IC 6-3.6-6-2(b)(3) on the local taxpayer.
SECTION 135. IC 6-3.6-7-9, AS AMENDED BY P.L.68-2025,
SECTION 149, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2028]: Sec. 9. (a) This section applies only to
Hancock County.
(b) The county fiscal body may, by ordinance, allocate part of the
tax rate imposed under IC 6-3.6-5 (before its expiration), not to exceed
a tax rate of fifteen hundredths percent (0.15%), to a property tax credit
against the property tax liability imposed for public libraries in the
county, if all territory in the county is included in a library district. The
county treasurer shall establish a library property tax replacement fund
to be used only for the purposes described in this section. Tax revenues
derived from the part of the tax rate imposed under IC 6-3.6-5 (before
its expiration) that is designated for property tax replacement credits
under this section shall be deposited in the library property tax
replacement fund. Any interest earned on money in the library property
tax replacement fund shall be credited to the library property tax
replacement fund.
(c) The amount of property tax replacement credits that each public
library in the county is entitled to receive during a calendar year under
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this section (before the expiration of IC 6-3.6-5) equals the lesser of:
(1) the product of:
(A) the amount of revenue deposited by the county auditor in
the library property tax replacement fund; multiplied by
(B) a fraction described as follows:
(i) The numerator of the fraction equals the sum of the total
property taxes that would have been collected by the public
library during the previous calendar year from taxpayers
located within the library district if the property tax
replacement under this section had not been in effect.
(ii) The denominator of the fraction equals the sum of the
total property taxes that would have been collected during
the previous year from taxpayers located within the county
by all public libraries that are eligible to receive property tax
replacement credits under this section if the property tax
replacement under this section had not been in effect; or
(2) the total property taxes that would otherwise be collected by
the public library for the calendar year if the property tax
replacement credit under this section were not in effect.
The department of local government finance shall make any
adjustments necessary to account for the expansion of a library district.
However, a public library is eligible to receive property tax
replacement credits under this section only if it has entered into
reciprocal borrowing agreements with all other public libraries in the
county. If the total amount of tax revenue deposited by the county
auditor in the library property tax replacement fund for a calendar year
exceeds the total property tax liability that would otherwise be imposed
for public libraries in the county for the year, the excess must remain
in the library property tax replacement fund and may be used for library
property tax replacement purposes in the following calendar year.
(d) A public library receiving property tax replacement credits under
this section shall allocate the credits among each fund for which a
distinct property tax levy is imposed in proportion to the property taxes
levied for each fund. However, if a public library did not impose a
property tax levy during the previous calendar year or did not impose
a property tax levy for a particular fund during the previous calendar
year, but the public library is imposing a property tax levy in the
current calendar year or is imposing a property tax levy for the
particular fund in the current calendar year, the department of local
government finance shall adjust the amount of property tax
replacement credits allocated among the various funds of the public
library and shall provide the adjustment to the county auditor. If a
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public library receiving property tax replacement credits under this
section does not impose a property tax levy for a particular fund that is
first due and payable in a calendar year in which the property tax
replacement credits are being distributed, the public library is not
required to allocate to that fund a part of the property tax replacement
credits to be distributed to the public library. Notwithstanding
IC 6-1.1-20-1.1(a)(1), a public library that receives property tax
replacement credits under this section is subject to the procedures for
the issuance of bonds set forth in IC 6-1.1-20.
(e) A public library shall treat property tax replacement credits
received during a particular calendar year under this section as a part
of the public library's property tax levy for each fund for that same
calendar year for purposes of fixing the public library's budget and for
purposes of the property tax levy limits imposed by IC 6-1.1-18.5.
(f) For the purpose of allocating tax revenue under IC 6-3.6-6 and
computing and distributing tax revenue under IC 6-5.5 or IC 6-6-5, the
property tax replacement credits that are received under this section
shall be treated as though they were property taxes that were due and
payable during that same calendar year.
(g) The county fiscal body shall adopt a resolution to allow a one
(1) time transfer to be made after December 31, 2028, but not later
than July 1, 2029, of money from the library property tax
replacement fund in an amount equal to the balance of the fund as
of December 31, 2028, to be allocated between the:
(1) Hancock County Public Library for deposit in the general
fund; and
(2) Fortville Public Library for deposit in the general fund.
The amount shall be allocated between the Hancock County Public
Library and Fortville Public Library based on each library's
proportional share of the population in each library district
compared to the total population in both library districts, based on
the most recent federal decennial census. After the county fiscal
body adopts a resolution under this subsection, before the transfer
may be made, and not later than July 1, 2029, the Hancock County
Public Library and Fortville Public Library shall each adopt a
substantially similar resolution requesting that the transfer be
made and provide certified copies to the county fiscal body. Upon
receiving the certified copies, the county fiscal body shall make the
transfer under this subsection.
SECTION 136. IC 6-3.6-7-14, AS AMENDED BY P.L.38-2021,
SECTION 45, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 14. (a) This section applies only to Marshall
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County.
(b) The county fiscal body may impose a tax on the adjusted gross
income of local taxpayers at a tax rate that does not exceed the lesser
of the following:
(1) Twenty-five hundredths percent (0.25%).
(2) The rate necessary to carry out the purposes described in
subsection (c).
(c) Revenue raised from a tax under this section may be used only
for the following purposes:
(1) To finance, construct, acquire, improve, renovate, or equip:
(A) jail facilities;
(B) juvenile court, detention, and probation facilities;
(C) other criminal justice facilities; and
(D) related buildings and parking facilities;
located in the county, including costs related to the demolition of
existing buildings and the acquisition of land.
(2) Repay bonds issued or leases entered into for the purposes
described in subdivision (1).
(d) The tax imposed under this section may be imposed only until
the last of the following dates:
(1) The date on which the purposes described in subsection (c)(1)
are completed.
(2) The date on which the last of any bonds issued (including any
refunding bonds) or leases described in subsection (c)(2) are fully
paid.
The term of the bonds issued (including any refunding bonds) or a
lease entered into under subsection (c)(2) may not exceed twenty (20)
years.
(e) Money accumulated from the tax under this section after the tax
imposed by this section is terminated shall be transferred to the county
jail fund to be established under subsection (f).
(f) The county auditor shall establish a county jail fund that shall
only be used for:
(1) maintenance of a jail facility; and
(2) costs otherwise incurred for the operation of the county
jail.
Money in the county jail fund shall not be used to issue new debt or
enter into leases, notwithstanding any other sections of this chapter.
SECTION 137. IC 6-3.6-7-27, AS AMENDED BY P.L.197-2016,
SECTION 63, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2028]: Sec. 27. (a) This section applies only to an
eligible county, as defined in IC 8-25-1-4.
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(b) If the voters of the county approve a local public question under
IC 8-25-2, the fiscal body of the county may adopt an ordinance to
provide for the use of local income tax revenues attributable to an
additional tax rate imposed under IC 6-3.6-6 to fund a public
transportation project under IC 8-25. However, a county fiscal body
shall adopt an ordinance under this subsection if required by
IC 8-25-6-10 to impose an additional tax rate on the county taxpayers
(as defined in IC 8-24-1-10) who reside in a township in which the
voters approve a public transportation project in a local public question
held under IC 8-25-6. An ordinance adopted under this subsection must
specify an additional tax rate to be imposed in the county (or township
in the case of an additional rate required by IC 8-25-6-10) of at least
one-tenth percent (0.1%), but not more than twenty-five hundredths
percent (0.25%). If an ordinance is adopted under this subsection, the
amount of the certified distribution attributable to the additional tax
rate imposed under this subsection must be:
(1) retained by the county auditor;
(2) deposited in the county public transportation project fund
established under IC 8-25-3-7; and
(3) used for the purpose provided in this subsection instead of as
a property tax replacement distribution.
(c) The tax rate under this section plus the tax rate under IC 6-3.6-6
may not exceed the tax rate may not be considered for purposes of
determining the maximum allowable tax rate specified in
IC 6-3.6-6-2.
SECTION 138. IC 6-3.6-8-3, AS ADDED BY P.L.243-2015,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 3. (a) For purposes of this article, an individual
shall be treated as a resident of the county in which the individual:
(1) maintains a home, if the individual maintains only one (1)
home in Indiana;
(2) if subdivision (1) does not apply, is registered to vote;
(3) if subdivision (1) or (2) does not apply, registers the
individual's personal automobile; or
(4) spent the majority more of the individual's time in Indiana
during the taxable year in question compared to any other
county, if subdivision (1), (2), or (3) does not apply.
(b) The residence or principal place of business or employment of
an individual is to be determined on January 1 of the calendar year in
which the individual's taxable year commences. If an individual
changes the location of the individual's residence or principal place of
employment or business to another county in Indiana during a calendar
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year, the individual's liability for tax is not affected.
(c) Notwithstanding subsection (b), if an individual becomes a local
taxpayer for purposes of IC 36-7-27 during a calendar year because the
individual:
(1) changes the location of the individual's residence to a county
in which the individual begins employment or business at a
qualified economic development tax project (as defined in
IC 36-7-27-9); or
(2) changes the location of the individual's principal place of
employment or business to a qualified economic development tax
project and does not reside in another county in which a tax is in
effect;
the individual's adjusted gross income attributable to employment or
business at the qualified economic development tax project is taxable
only by the county containing the qualified economic development tax
project.
SECTION 139. IC 6-3.6-8-3, AS AMENDED BY P.L.68-2025,
SECTION 151, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2029]: Sec. 3. (a) For purposes of this
article, an individual shall be treated as a resident of the county (or the
municipality in the case of a local income tax imposed under
IC 6-3.6-6-22) in which the individual:
(1) maintains a home, if the individual maintains only one (1)
home in Indiana;
(2) if subdivision (1) does not apply, is registered to vote;
(3) if subdivision (1) or (2) does not apply, registers the
individual's personal automobile; or
(4) spent the majority more of the individual's time in Indiana
during the taxable year in question compared to any other
county, if subdivision (1), (2), or (3) does not apply.
(b) The residence of an individual is to be determined on January 1
of the calendar year in which the individual's taxable year commences.
If an individual changes the location of the individual's residence to
another county (or municipality in the case of a local income tax
imposed under IC 6-3.6-6-22) in Indiana during a calendar year, the
individual's liability for tax is not affected.
(c) Notwithstanding subsection (b), if an individual becomes a local
taxpayer for purposes of IC 36-7-27 during a calendar year because the
individual changes the location of the individual's residence to a county
or municipality in which the individual begins employment or business
at a qualified economic development tax project (as defined in
IC 36-7-27-9), the individual's adjusted gross income attributable to
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employment or business at the qualified economic development tax
project is taxable only by the county or municipality containing the
qualified economic development tax project.
(d) In determining residency for purposes of a local income tax
imposed under IC 6-3.6-6-2(b)(4) or IC 6-3.6-6-22, the following
apply:
(1) The criteria in subsection (a)(1) through (a)(4) must be
applied to municipalities and the parts of a county in which
the county may impose a tax rate under IC 6-3.6-6-2(b)(4).
(2) If an individual meets the criteria in subsection (a)(1)
through (a)(3) for an area in the county in which the county
may impose a tax rate under IC 6-3.6-6-2(b)(4), the individual
is considered a resident of that area of the county and is
subject to a tax rate imposed under IC 6-3.6-6-2(b)(4).
(3) If an individual is a resident of the county pursuant to
subsection (a)(4), the:
(A) time spent in all areas within the county in which the
county may impose a tax rate under IC 6-3.6-6-2(b)(4)
shall be aggregated; and
(B) determination of the individual's residence within the
county shall be determined solely by the time spent in the
municipality (or part of the county) and the parts of a
county in which the county may impose a tax rate under
IC 6-3.6-6-2(b)(4).
SECTION 140. IC 6-3.6-8-7, AS ADDED BY P.L.243-2015,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2029]: Sec. 7. In the case of a local taxpayer who is a
resident of Perry County, or a resident of a municipality located in
Perry County in the case of a local income tax imposed under
IC 6-3.6-6-22, the term "adjusted gross income" does not include
adjusted gross income that is:
(1) earned in a county that is:
(A) located in another state; and
(B) adjacent to the county in which the taxpayer resides; and
(2) subject to an income tax imposed by a county, city, town, or
other local governmental entity in the other state.
SECTION 141. IC 6-3.6-9-1, AS AMENDED BY P.L.68-2025,
SECTION 154, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2028]: Sec. 1. (a) The budget agency shall
maintain an accounting for each county imposing a tax based on annual
returns filed by or for county taxpayers. Any undistributed amounts so
accounted for shall be held in reserve for the respective counties
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separate from the state general fund.
(b) Undistributed amounts shall be invested by the treasurer of state
and the income earned shall be credited to the counties based on each
county's undistributed amount.
(c) This section expires December 31, 2027. 2028.
SECTION 142. IC 6-3.6-9-5, AS AMENDED BY P.L.68-2025,
SECTION 158, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2028]: Sec. 5. (a) Before October 1 of each
calendar year, the budget agency shall certify to the department of local
government finance and the county auditor of each adopting county the
amount determined under sections 4 and 4.1 of this chapter. The
amount certified is the county's certified distribution for the
immediately succeeding calendar year. The amount certified shall be
adjusted, as necessary, under sections 6 and 7 of this chapter. Subject
to subsection (b), not later than thirty (30) days after receiving the
amount of the certified distribution, the department of local
government finance shall determine for each taxing unit and notify the
county auditor of the certified amount that will be distributed to the
taxing unit under this chapter during the ensuing calendar year. Not
later than thirty (30) days after receiving the department's estimate, the
county auditor shall notify each taxing unit of the certified amounts for
the taxing unit.
(b) This subsection applies to Lake County. When the department
of local government finance notifies the county auditor of the certified
amount that will be distributed to the taxing unit under this chapter
during the ensuing calendar year, the department of local government
finance shall also determine the amount of general purpose revenue
allocated for economic development purposes that will be distributed
to each civil taxing unit, reduced by an amount that is equal to the
following percentages of the tax revenue that would otherwise be
allocated for economic development purposes and distributed to the
civil taxing unit:
(1) For Lake County, an amount equal to twenty-five percent
(25%).
(2) For Crown Point, an amount equal to ten percent (10%).
(3) For Dyer, an amount equal to fifteen percent (15%).
(4) For Gary, an amount equal to seven and five-tenths percent
(7.5%).
(5) For Hammond, an amount equal to fifteen percent (15%).
(6) For Highland, an amount equal to twelve percent (12%).
(7) For Hobart, an amount equal to eighteen percent (18%).
(8) For Lake Station, an amount equal to twenty percent (20%).
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(9) For Lowell, an amount equal to fifteen percent (15%).
(10) For Merrillville, an amount equal to twenty-two percent
(22%).
(11) For Munster, an amount equal to thirty-four percent (34%).
(12) For New Chicago, an amount equal to one percent (1%).
(13) For Schererville, an amount equal to ten percent (10%).
(14) For Schneider, an amount equal to twenty percent (20%).
(15) For Whiting, an amount equal to twenty-five percent (25%).
(16) For Winfield, an amount equal to fifteen percent (15%).
The department of local government finance shall notify the county
auditor of the remaining amounts to be distributed and the amounts of
the reductions that will be withheld under IC 6-3.6-11-5.5.
(c) This subsection applies to a distribution under IC 6-3.6-6-4.3
of tax revenue raised from a local income tax rate for fire
protection and emergency medical services. Before the department
of local government finance may certify a distribution, each
provider of fire protection and emergency medical services located
within a county shall certify to the department of local government
finance the boundaries of the service area within the county served
by the provider. If a provider does not certify the provider's
service area to the department of local government finance, the
department of local government finance shall use the most recent
certified net assessed valuation submitted by the county auditor
pursuant to IC 6-1.1-17-1 for the taxing unit served by the provider
to determine the service boundaries for the provider. For purposes
of this subsection, the service boundaries of a provider may not
include any area served under a mutual aid agreement.
SECTION 143. IC 6-3.6-9-10, AS AMENDED BY P.L.68-2025,
SECTION 164, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2028]: Sec. 10. The budget agency shall also
certify information concerning the part of the certified distribution that
is attributable to each of the following:
(1) The tax rate imposed under IC 6-3.6-5 (before its expiration).
This subdivision expires July 1, 2028. 2029.
(2) The tax rate imposed under IC 6-3.6-6, separately stating:
(A) the part of the distribution attributable to a tax rate
imposed under IC 6-3.6-6-2.5 (before its repeal);
(B) the part of the distribution attributable to a tax rate
imposed under IC 6-3.6-6-2.6 (before its repeal);
(C) the part of the distribution attributable to a tax rate
imposed under IC 6-3.6-6-2.7 (before its repeal);
(D) the part of the distribution attributable to a tax rate
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imposed under IC 6-3.6-6-2.8 (before its repeal); and
(E) the part of the distribution attributable to a tax rate
imposed under IC 6-3.6-6-2.9 (before its repeal).
(3) Each tax rate imposed under IC 6-3.6-7.
(4) In the case of Marion County, the local income taxes paid by
local taxpayers described in IC 6-3.6-2-13(3).
The amount certified shall be adjusted to reflect any adjustment in the
certified distribution under this chapter.
SECTION 144. IC 6-3.6-9-12, AS AMENDED BY P.L.68-2025,
SECTION 166, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2028]: Sec. 12. One-twelfth (1/12) of each
adopting county's certified distribution for a calendar year shall be
distributed:
(1) before January 1, 2028, 2029, from its trust account
established under this chapter; and
(2) after December 31, 2027, 2028, from the state and local
income tax holding account established under this chapter;
to the appropriate county treasurer on the first regular business day of
each month of that calendar year.
SECTION 145. IC 6-3.6-9-13, AS AMENDED BY P.L.68-2025,
SECTION 167, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2028]: Sec. 13. (a) All distributions from a trust
account established under this chapter shall be made by warrants issued
by the state comptroller to the treasurer of state ordering the
appropriate payments.
(b) This section expires December 31, 2027. 2028.
SECTION 146. IC 6-3.6-9-17.5, AS ADDED BY P.L.68-2025,
SECTION 171, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2028]: Sec. 17.5. After December 31, 2027,
2028, the county's certified distribution amount for 2028 2029 shall be
maintained in the accounting for the county under section 21 of this
chapter and transferred as set forth in section 21 of this chapter.
SECTION 147. IC 6-3.6-9-21, AS ADDED BY P.L.68-2025,
SECTION 173, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2028]: Sec. 21. (a) The budget agency shall
maintain an accounting for each county imposing a tax based on annual
returns filed by or for county taxpayers. Beginning after December 31,
2027, 2028, any undistributed amounts so accounted shall be held for
purposes of the state and local income tax holding account.
(b) After December 1 but before December 31 of each year, the
budget agency shall present to the budget committee a report of the
following:
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(1) An estimate of the monthly certified distribution amounts for
the immediately succeeding calendar year.
(2) A description of the method used to determine the monthly
estimates under subdivision (1).
(c) Beginning in 2028, 2029, and in each calendar year thereafter,
the budget agency shall each month transfer to the state and local
income tax holding account the amount determined for the month
under subsection (b)(1) for distribution under this chapter.
(d) In the case of a county that imposes a tax rate under IC 6-3.6-6-2
or a municipality that imposes a tax rate under IC 6-3.6-6-22 beginning
after December 31, 2027, 2028, the budget agency shall withhold, from
each of the first three (3) annual certified distributions resulting from
the tax rate, an amount equal to five percent (5%) of the county's or
municipality's, as applicable, annual certified distribution resulting
from the tax rate. The amounts withheld under this subsection shall be
credited to the respective county's or municipality's trust account.
SECTION 148. IC 6-3.6-10-9, AS ADDED BY P.L.68-2025,
SECTION 178, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE MAY 10, 2025 (RETROACTIVE)]: Sec. 9. (a)
Notwithstanding any other law, for bonds, leases, or any other
obligations incurred after May 9, 2025, a county, city, town, and any
other taxing unit may not pledge for payment from tax revenue
received under this article an amount that exceeds an amount equal to
twenty-five percent (25%) of the taxing unit's certified distribution
under this article.
(b) This section expires July 1, 2027. 2028.
SECTION 149. IC 6-3.6-11-3, AS AMENDED BY P.L.68-2025,
SECTION 180, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2028]: Sec. 3. (a) This section applies to Lake
County's categorizations, allocations, and distributions under IC 6-3.6-5
(before its expiration).
(b) The rate under the former tax in Lake County that was used for
any of the following shall be categorized under IC 6-3.6-5 (before its
expiration), and the Lake County council may adopt an ordinance
providing that the revenue from the tax rate under this section may be
used for any of the following:
(1) To reduce all property tax levies imposed by the county by the
granting of property tax replacement credits against those
property tax levies.
(2) To provide local property tax replacement credits in Lake
County in the following manner:
(A) The tax revenue under this section that is collected from
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taxpayers within a particular municipality in Lake County (as
determined by the department of state revenue based on the
department's best estimate) shall be used only to provide a
local property tax credit against property taxes imposed by that
municipality.
(B) The tax revenue under this section that is collected from
taxpayers within the unincorporated area of Lake County (as
determined by the department of state revenue) shall be used
only to provide a local property tax credit against property
taxes imposed by the county. The local property tax credit for
the unincorporated area of Lake County shall be available only
to those taxpayers within the unincorporated area of the
county.
(3) To provide property tax credits in the following manner:
(A) Sixty percent (60%) of the tax revenue shall be used as
provided in subdivision (2).
(B) Forty percent (40%) of the tax revenue shall be used to
provide property tax replacement credits against property tax
levies of the county and each township and municipality in the
county. The percentage of the tax revenue distributed under
this item that shall be used as credits against the county's
levies or against a particular township's or municipality's levies
is equal to the percentage determined by dividing the
population of the county, township, or municipality by the sum
of the total population of the county, each township in the
county, and each municipality in the county.
The Lake County council shall determine whether the credits under
subdivision (1), (2), or (3) shall be provided to homesteads, to all
qualified residential property, or to all taxpayers. The department of
local government finance, with the assistance of the budget agency,
shall certify to the county auditor and the fiscal body of the county and
each township and municipality in the county the amount of property
tax credits under this section. The tax revenue under this section that
is used to provide credits under this section shall be treated for all
purposes as property tax levies but shall not be considered for purposes
of computing the maximum permissible property tax levy under
IC 6-1.1-18.5-3 or the credit under IC 6-1.1-20.6.
(c) Any ordinance adopted under subsection (b) expires December
31, 2027. 2028.
(d) This section expires July 1, 2028. 2031.
SECTION 150. IC 6-6-5-5, AS AMENDED BY P.L.230-2025,
SECTION 87, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
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JANUARY 1, 2025 (RETROACTIVE)]: Sec. 5. A person that owns a
vehicle and that is entitled to a property tax deduction under
IC 6-1.1-12-13 (before its expiration), IC 6-1.1-12-14, or
IC 6-1.1-12-16 (before its expiration) is entitled to a credit against the
vehicle excise tax as follows: Any remaining deduction from assessed
valuation to which the person is entitled, applicable to property taxes
payable in the year in which the excise tax imposed by this chapter is
due, after allowance of the deduction on real estate and personal
property owned by the person, shall reduce the vehicle excise tax in the
amount of two dollars ($2) on each one hundred dollars ($100) of
taxable value or major portion thereof. The county auditor shall, upon
request, furnish a certified statement to the person verifying the credit
allowable under this section, and the statement shall be presented to
and retained by the bureau to support the credit.
SECTION 151. IC 6-6-5-5.2, AS AMENDED BY P.L.230-2025,
SECTION 88, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]: Sec. 5.2. (a) This section
applies to a registration year beginning after December 31, 2013.
(b) Subject to subsection (d), an individual may claim a credit
against the tax imposed by this chapter upon a vehicle owned by the
individual if the individual is eligible for the credit under any of the
following:
(1) The individual meets all the following requirements:
(A) The individual served in the military or naval forces of the
United States during any of its wars.
(B) The individual received an honorable discharge.
(C) The individual has a disability with a service connected
disability of ten percent (10%) or more.
(D) The individual's disability is evidenced by:
(i) a pension certificate, an award of compensation, or a
disability compensation check issued by the United States
Department of Veterans Affairs; or
(ii) a certificate of eligibility issued to the individual by the
Indiana department of veterans' affairs after the Indiana
department of veterans' affairs has determined that the
individual's disability qualifies the individual to receive a
credit under this section.
(E) The individual does not own property to which a property
tax deduction may be applied under IC 6-1.1-12-13 (before its
expiration).
(2) The individual meets all the following requirements:
(A) The individual served in the military or naval forces of the
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United States for at least ninety (90) days.
(B) The individual received an honorable discharge.
(C) The individual either:
(i) has a total disability; or
(ii) is at least sixty-two (62) years of age and has a disability
of at least ten percent (10%).
(D) The individual's disability is evidenced by:
(i) a pension certificate or an award of compensation issued
by the United States Department of Veterans Affairs; or
(ii) a certificate of eligibility issued to the individual by the
Indiana department of veterans' affairs after the Indiana
department of veterans' affairs has determined that the
individual's disability qualifies the individual to receive a
credit under this section.
(E) The individual does not own property to which a property
tax deduction may be applied under IC 6-1.1-12-14.
(3) The individual meets both of the following requirements:
(A) The individual is the surviving spouse of any of the
following:
(i) An individual who would have been eligible for a credit
under this section if the individual had been alive in 2013
and this section had been in effect in 2013.
(ii) An individual who received a credit under this section in
the previous calendar year.
(iii) A World War I veteran.
(B) The individual does not own property to which a property
tax deduction may be applied under IC 6-1.1-12-13 (before its
expiration), IC 6-1.1-12-14, or IC 6-1.1-12-16. (before its
expiration).
(c) The amount of the credit that may be claimed under this section
is equal to the lesser of the following:
(1) The amount of the excise tax liability for the individual's
vehicle as determined under section 3 or 3.5 of this chapter, as
applicable.
(2) Seventy dollars ($70).
(d) The maximum number of motor vehicles for which an individual
may claim a credit under this section is two (2).
(e) An individual may not claim a credit under both:
(1) this section; and
(2) section 5 of this chapter.
(f) The credit allowed by this section must be claimed on a form
prescribed by the bureau. An individual claiming the credit must attach
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to the form an affidavit from the county auditor stating that the
claimant does not own property to which a property tax deduction may
be applied under IC 6-1.1-12-13 (before its expiration),
IC 6-1.1-12-14, or IC 6-1.1-12-16. (before its expiration).
SECTION 152. IC 6-6-5-10, AS AMENDED BY P.L.137-2024,
SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2027]: Sec. 10. (a) The bureau shall establish procedures
necessary for the collection of the tax imposed by this chapter and for
the proper accounting for the same. The necessary forms and records
shall be subject to approval by the state board of accounts.
(b) The county treasurer, upon receiving the excise tax collections,
shall receipt such collections into a separate account for settlement
thereof at the same time as property taxes are accounted for and settled
in June and December of each year, with the right and duty of the
treasurer and auditor to make advances prior to the time of final
settlement of such property taxes in the same manner as provided in
IC 5-13-6-3.
(c) As used in this subsection, "taxing district" has the meaning set
forth in IC 6-1.1-1-20, "taxing unit" has the meaning set forth in
IC 6-1.1-1-21, and "tuition support levy" refers to a school
corporation's tuition support property tax levy under IC 20-45-3-11
(repealed) for the school corporation's general fund. Subject to
IC 6-1.1-27-10, the county auditor shall determine the total amount of
excise taxes collected for each taxing district in the county and the
amount so collected (and the distributions received under section 9.5
of this chapter) shall be apportioned and distributed among the
respective funds of the taxing units in the same manner and at the same
time as property taxes are apportioned and distributed (subject to
adjustment as provided in IC 36-8-19-7.5). In the event a taxing unit
merges or consolidates with one (1) or more taxing units in the county,
the county auditor shall include adjustments to the current taxing unit's
apportionment and distributions, if necessary, so that the apportionment
and distributions accurately reflect the merger or consolidation of the
taxing units. However, for purposes of determining distributions under
this section for 2009 and each year thereafter, a state welfare and
tuition support allocation shall be deducted from the total amount
available for apportionment and distribution to taxing units under this
section before any apportionment and distribution is made. The county
auditor shall remit the state welfare and tuition support allocation to the
treasurer of state for deposit, as directed by the budget agency. The
amount of the state welfare and tuition support allocation for a county
for a particular year is equal to the result determined under STEP
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FOUR of the following formula:
STEP ONE: Determine the result of the following:
(A) Separately for 1997, 1998, and 1999 for each taxing
district in the county, determine the result of:
(i) the amount appropriated in the year by the county from
the county's county welfare fund and county welfare
administration fund; divided by
(ii) the total amounts appropriated by all taxing units in the
county for the same year.
(B) Determine the sum of the clause (A) amounts.
(C) Divide the clause (B) amount by three (3).
(D) Determine the result of:
(i) the amount of excise taxes allocated to the taxing district
that would otherwise be available for distribution to taxing
units in the taxing district; multiplied by
(ii) the clause (C) amount.
STEP TWO: Determine the result of the following:
(A) Separately for 2006, 2007, and 2008 for each taxing
district in the county, determine the result of:
(i) the tax rate imposed in the taxing district for the county's
county medical assistance to wards fund, family and
children's fund, children's psychiatric residential treatment
services fund, county hospital care for the indigent fund,
children with special health care needs county fund, plus, in
the case of Marion County, the tax rate imposed by the
health and hospital corporation that was necessary to raise
thirty-five million dollars ($35,000,000) from all taxing
districts in the county; divided by
(ii) the aggregate tax rate imposed in the taxing district for
the same year.
(B) Determine the sum of the clause (A) amounts.
(C) Divide the clause (B) amount by three (3).
(D) Determine the result of:
(i) the amount of excise taxes allocated to the taxing district
that would otherwise be available for distribution to taxing
units in the taxing district after subtracting the STEP ONE
(D) amount for the same taxing district; multiplied by
(ii) the clause (C) amount.
(E) Determine the sum of the clause (D) amounts for all taxing
districts in the county.
STEP THREE: Determine the result of the following:
(A) Separately for 2006, 2007, and 2008 for each taxing
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district in the county, determine the result of:
(i) the tuition support levy tax rate imposed in the taxing
district plus the tax rate imposed by the school corporation
for the school corporation's special education preschool fund
in the district; divided by
(ii) the aggregate tax rate imposed in the taxing district for
the same year.
(B) Determine the sum of the clause (A) amounts.
(C) Divide the clause (B) amount by three (3).
(D) Determine the result of:
(i) the amount of excise taxes allocated to the taxing district
that would otherwise be available for distribution to taxing
units in the taxing district after subtracting the STEP ONE
(D) amount for the same taxing district; multiplied by
(ii) the clause (C) amount.
(E) Determine the sum of the clause (D) amounts for all taxing
districts in the county.
STEP FOUR: Determine the sum of the STEP ONE, STEP TWO,
and STEP THREE amounts for the county.
If the boundaries of a taxing district change after the years for which a
ratio is calculated under STEP ONE, STEP TWO, or STEP THREE,
the state comptroller shall establish a ratio for the new taxing district
that reflects the tax rates imposed in the predecessor taxing districts. If
a new taxing district is established after the years for which a ratio is
calculated under STEP ONE, STEP TWO, or STEP THREE, the state
comptroller shall establish a ratio for the new taxing district and adjust
the ratio for other taxing districts in the county.
(d) Such determination shall be made from copies of vehicle
registration forms furnished by the bureau of motor vehicles. Prior to
such determination, the county assessor of each county shall, from
copies of registration forms, cause information pertaining to legal
residence of persons owning taxable vehicles to be verified from the
assessor's records, to the extent such verification can be so made. The
assessor shall further identify and verify from the assessor's records the
several taxing units within which such persons reside.
(e) Such verifications shall be done by not later than thirty (30) days
after receipt of vehicle registration forms by the county assessor, and
the assessor shall certify such information to the county auditor for the
auditor's use as soon as it is checked and completed.
SECTION 153. IC 6-6-5.1-2, AS AMENDED BY P.L.256-2017,
SECTION 43, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 2. The following definitions apply throughout
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this chapter:
(1) "Bureau" refers to the bureau of motor vehicles.
(2) "Mobile home" has the meaning set forth in IC 6-1.1-7-1.
IC 9-13-2-103.2. The term includes a manufactured home (as
defined in IC 9-13-2-96(a)).
(3) "Owner" means:
(A) in the case of a recreational vehicle, the person in whose
name the recreational vehicle is registered under IC 9-18
(before its expiration) or IC 9-18.1; or
(B) in the case of a truck camper, the person holding title to
the truck camper.
(4) "Recreational vehicle" has the meaning set forth in
IC 9-13-2-150.
(5) "Truck camper" has the meaning set forth in IC 9-13-2-188.3.
SECTION 154. IC 6-6-5.1-22, AS ADDED BY P.L.131-2008,
SECTION 22, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2027]: Sec. 22. (a) The bureau shall establish procedures
necessary for the collection and proper accounting of the tax imposed
by this chapter. The necessary forms and records are subject to
approval by the state board of accounts.
(b) The county treasurer, upon receiving the excise tax collections,
shall place the collections into a separate account for settlement at the
same time as property taxes are accounted for and settled in June and
December of each year, with the right and duty of the county treasurer
and county auditor to make advances before the time of final settlement
of property taxes in the same manner as provided in IC 5-13-6-3.
(c) The county auditor shall determine the total amount of excise
taxes collected under this chapter for each taxing unit in the county.
Subject to IC 6-1.1-27-10, the amount collected shall be apportioned
and distributed among the respective funds of each taxing unit in the
same manner and at the same time as property taxes are apportioned
and distributed.
(d) The determination under subsection (c) shall be made from
copies of vehicle registration forms and receipts for excise taxes paid
on truck campers furnished by the bureau. Before the determination,
the county assessor shall, from copies of registration forms and
receipts, verify information pertaining to legal residence of persons
owning taxable recreational vehicles and truck campers from the
county assessor's records, to the extent the verification can be made.
The county assessor shall further identify and verify from the assessor's
records the taxing units within which the persons reside.
(e) Verifications under subsection (d) shall be completed not later
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than thirty (30) days after receipt of vehicle registration forms and
receipts by the county assessor. The county assessor shall certify the
information to the county auditor for the county auditor's use when the
information is checked and completed.
SECTION 155. IC 6-6-6.5-13, AS AMENDED BY P.L.230-2025,
SECTION 89, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2026 (RETROACTIVE)]: Sec. 13. (a) As the basis for
measuring the tax imposed by this chapter, the department shall
classify every taxable aircraft in its proper class according to the
following classification plan:
CLASS DESCRIPTION
A Piston-driven
B Piston-driven,
and Pressurized
C Turbine driven
or other Powered
D Homebuilt, Gliders, or
Hot Air Balloons
(b) The tax imposed under this chapter is based on the age, class,
and maximum landing weight of the taxable aircraft. The amount of tax
imposed on the taxable aircraft is based on the following table:
Age Class A Class B Class C Class D
0-4 $.04/lb $.065/lb $.09/lb $.0175/lb
5-8 $.035/lb $.055/lb $.08/lb $.015/lb
9-12 $.03/lb $.05/lb $.07/lb $.0125/lb
13-16 $.025/lb $.025/lb $.025/lb $.01/lb
17-25 $.02/lb $.02/lb $.02/lb $.0075/lb
over 25 $.01/lb $.01/lb $.01/lb $.005/lb
(c) An aircraft owner, who sells an aircraft on which the owner has
paid the tax imposed under this chapter, is entitled to a credit for the
tax paid. The credit equals excise tax paid on the aircraft that was sold,
times the lesser of:
(1) ninety percent (90%); or
(2) ten percent (10%) times the number of months remaining in
the registration year after the sale of the aircraft.
The credit may only be used to reduce the tax imposed under this
chapter on another aircraft purchased by that owner during the
registration year in which the credit accrues. A person may not receive
a refund for a credit under this subsection.
(d) A person who is entitled to a property tax deduction under
IC 6-1.1-12-13 (before its expiration) or IC 6-1.1-12-14 is entitled to
a credit against the tax imposed on the person's aircraft under this
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chapter. The credit equals the amount of the property tax deduction to
which the person is entitled under IC 6-1.1-12-13 (before its
expiration) and IC 6-1.1-12-14 minus the amount of that deduction
used to offset the person's property taxes or vehicle excise taxes, times
seven hundredths (.07). The credit may not exceed the amount of the
tax due under this chapter. The county auditor shall, upon the person's
request, furnish a certified statement showing the credit allowable
under this subsection. The department may not allow a credit under this
subsection until the auditor's statement has been filed in the
department's office.
SECTION 156. IC 6-6-6.5-21, AS AMENDED BY P.L.9-2024,
SECTION 208, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2027]: Sec. 21. (a) The department shall
allocate each aircraft excise tax payment collected by it to the county
in which the aircraft is usually located when not in operation or to the
aircraft owner's county of residence if based out of state. The
department shall distribute to each county treasurer on a quarterly basis
the aircraft excise taxes which were collected by the department during
the preceding three (3) months and which the department has allocated
to that county. The distribution shall be made on or before the fifteenth
of the month following each quarter and the first distribution each year
shall be made in April.
(b) Concurrently with making a distribution of aircraft excise taxes,
the department shall send an aircraft excise tax report to the county
treasurer and the county auditor. The department shall prepare the
report on the form prescribed by the state board of accounts. The
aircraft excise tax report must include aircraft identification, owner
information, and excise tax payment, and must indicate the county
where the aircraft is normally kept when not in operation. The
department shall, in the manner prescribed by the state board of
accounts, maintain records concerning the aircraft excise taxes
received and distributed by it.
(c) Except as provided in section 21.5 of this chapter, each county
treasurer shall deposit money received by the treasurer under this
chapter in a separate fund to be known as the "aircraft excise tax fund".
The money in the aircraft excise tax fund shall be distributed to the
taxing units of the county in the manner prescribed in subsection (d).
(d) As used in this subsection, "taxing district" has the meaning set
forth in IC 6-1.1-1-20, "taxing unit" has the meaning set forth in
IC 6-1.1-1-21, and "tuition support levy" refers to a school
corporation's tuition support property tax levy under IC 20-45-3-11
(repealed) for the school corporation's general fund. In order to
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distribute the money in the county aircraft excise tax fund to the taxing
units of the county, the county auditor shall first allocate the money in
the fund among the taxing districts of the county. In making these
allocations, the county auditor shall allocate to a taxing district the
excise taxes collected with respect to aircraft usually located in the
taxing district when not in operation. Subject to this subsection and
IC 6-1.1-27-10, the money allocated to a taxing district shall be
apportioned and distributed among the taxing units of that taxing
district in the same manner and at the same time that the property taxes
are apportioned and distributed (subject to adjustment as provided in
IC 36-8-19-7.5). For purposes of determining the distribution for a year
under this section for a taxing unit, a state welfare and tuition support
allocation shall be deducted from the total amount available for
apportionment and distribution to taxing units under this section before
any apportionment and distribution is made. The county auditor shall
remit the state welfare and tuition support allocation to the treasurer of
state for deposit as directed by the budget agency. The amount of the
state welfare and tuition support allocation for a county for a particular
year is equal to the result determined under STEP THREE of the
following formula:
STEP ONE: Determine the result of the following:
(A) Separately for 2006, 2007, and 2008 for each taxing
district in the county, determine the result of:
(i) the tax rate imposed in the taxing district for the county's
county medical assistance to wards fund, family and
children's fund, children's psychiatric residential treatment
services fund, county hospital care for the indigent fund,
children with special health care needs county fund, plus, in
the case of Marion County, the tax rate imposed by the
health and hospital corporation that was necessary to raise
thirty-five million dollars ($35,000,000) from all taxing
districts in the county; divided by
(ii) the aggregate tax rate imposed in the taxing district for
the same year.
(B) Determine the sum of the clause (A) amounts.
(C) Divide the clause (B) amount by three (3).
(D) Determine the result of:
(i) the amount of excise taxes allocated to the taxing district
that would otherwise be available for distribution to taxing
units in the taxing district; multiplied by
(ii) the clause (C) amount.
(E) Determine the sum of the clause (D) amounts for all taxing
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districts in the county.
STEP TWO: Determine the result of the following:
(A) Separately for 2006, 2007, and 2008 for each taxing
district in the county, determine the result of:
(i) the tuition support levy tax rate imposed in the taxing
district plus the tax rate imposed by the school corporation
for the school corporation's special education preschool fund
in the district; divided by
(ii) the aggregate tax rate imposed in the taxing district for
the same year.
(B) Determine the sum of the clause (A) amounts.
(C) Divide the clause (B) amount by three (3).
(D) Determine the result of:
(i) the amount of excise taxes allocated to the taxing district
that would otherwise be available for distribution to taxing
units in the taxing district; multiplied by
(ii) the clause (C) amount.
(E) Determine the sum of the clause (D) amounts for all taxing
districts in the county.
STEP THREE: Determine the sum of the STEP ONE and STEP
TWO amounts for the county.
If the boundaries of a taxing district change after the years for which a
ratio is calculated under STEP ONE or STEP TWO, the state
comptroller shall establish a ratio for the new taxing district that
reflects the tax rates imposed in the predecessor taxing districts. If a
new taxing district is established after the years for which a ratio is
calculated under STEP ONE, STEP TWO, or STEP THREE, the state
comptroller shall establish a ratio for the new taxing district and adjust
the ratio for other taxing districts in the county.
(e) Within thirty (30) days following the receipt of excise taxes from
the department, the county treasurer shall file a report with the county
auditor concerning the aircraft excise taxes collected by the county
treasurer. The county treasurer shall file the report on the form
prescribed by the state board of accounts. The county treasurer shall,
in the manner and at the times prescribed in IC 6-1.1-27, make a
settlement with the county auditor for the aircraft excise taxes collected
by the county treasurer. The county treasurer shall, in the manner
prescribed by the state board of accounts, maintain records concerning
the aircraft excise taxes received and distributed by the treasurer.
SECTION 157. IC 6-6-9-11, AS AMENDED BY P.L.9-2024,
SECTION 209, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2027]: Sec. 11. (a) All revenues collected
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from the auto rental excise tax shall be deposited in a special account
of the state general fund called the auto rental excise tax account.
(b) On or before May 20 and November 20 of each year, all amounts
held in the auto rental excise tax account shall be distributed to the
county treasurers of Indiana.
(c) The amount to be distributed to a county treasurer equals that
part of the total auto rental excise taxes being distributed that were
initially imposed and collected from within that treasurer's county. The
department shall notify each county auditor of the amount of taxes to
be distributed to the county treasurer. At the same time each
distribution is made to a county treasurer, the department shall certify
to the county auditor each taxing district within the county where auto
rental excise taxes were collected and the amount of the county
distribution that was collected with respect to each taxing district.
(d) The county treasurer shall deposit auto rental excise tax
collections into a separate account for settlement at the same time as
property taxes are accounted for and settled in June and December of
each year.
(e) Subject to IC 6-1.1-27-10, the county auditor shall apportion
and the county treasurer shall distribute the auto rental excise taxes
among the taxing units of the county in the same manner that property
taxes are apportioned and distributed with respect to property located
in the taxing district where the auto rental excise tax was initially
imposed and collected. The auto rental excise taxes distributed to a
taxing unit shall be allocated among the taxing unit's funds in the same
proportions that the taxing unit's property tax collections are allocated
among those funds.
(f) Taxing units of a county may request and receive advances of
auto rental excise tax revenues in the manner provided under
IC 5-13-6-3.
(g) All distributions from the auto rental excise tax account shall be
made by warrants issued by the state comptroller to the treasurer of
state ordering those payments to the appropriate county treasurer.
SECTION 158. IC 6-6-11-31, AS AMENDED BY P.L.9-2024,
SECTION 213, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2027]: Sec. 31. (a) A boat excise tax fund
is established in each county. Each county treasurer shall deposit in the
fund the taxes received under this chapter.
(b) As used in this subsection, "taxing district" has the meaning set
forth in IC 6-1.1-1-20, "taxing unit" has the meaning set forth in
IC 6-1.1-1-21, and "tuition support levy" refers to a school
corporation's tuition support property tax levy under IC 20-45-3-11
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(repealed) for the school corporation's general fund. The excise tax
money in the county boat excise tax fund shall be distributed to the
taxing units of the county. The county auditor shall allocate the money
in the fund among the taxing districts of the county based on the tax
situs of each boat. Subject to this subsection and IC 6-1.1-27-10, the
money allocated to the taxing units shall be apportioned and distributed
among the funds of the taxing units in the same manner and at the same
time that property taxes are apportioned and distributed (subject to
adjustment as provided in IC 36-8-19-7.5). For purposes of determining
the distribution for a year under this section for a taxing unit, a state
welfare and tuition support allocation shall be deducted from the total
amount available for apportionment and distribution to taxing units
under this section before any apportionment and distribution is made.
The county auditor shall remit the state welfare and tuition support
allocation to the treasurer of state for deposit as directed by the budget
agency. The amount of the state welfare and tuition support allocation
for a county for a particular year is equal to the result determined under
STEP THREE of the following formula:
STEP ONE: Determine the result of the following:
(A) Separately for 2006, 2007, and 2008 for each taxing
district in the county, determine the result of:
(i) the tax rate imposed in the taxing district for the county's
county medical assistance to wards fund, family and
children's fund, children's psychiatric residential treatment
services fund, county hospital care for the indigent fund,
children with special health care needs county fund, plus, in
the case of Marion County, the tax rate imposed by the
health and hospital corporation that was necessary to raise
thirty-five million dollars ($35,000,000) from all taxing
districts in the county; divided by
(ii) the aggregate tax rate imposed in the taxing district for
the same year.
(B) Determine the sum of the clause (A) amounts.
(C) Divide the clause (B) amount by three (3).
(D) Determine the result of:
(i) the amount of excise taxes allocated to the taxing district
that would otherwise be available for distribution to taxing
units in the taxing district; multiplied by
(ii) the clause (C) amount.
(E) Determine the sum of the clause (D) amounts for all taxing
districts in the county.
STEP TWO: Determine the result of the following:
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(A) Separately for 2006, 2007, and 2008 for each taxing
district in the county, determine the result of:
(i) the tuition support levy tax rate imposed in the taxing
district plus the tax rate imposed by the school corporation
for the school corporation's special education preschool fund
in the district; divided by
(ii) the aggregate tax rate imposed in the taxing district for
the same year.
(B) Determine the sum of the clause (A) amounts.
(C) Divide the clause (B) amount by three (3).
(D) Determine the result of:
(i) the amount of excise taxes allocated to the taxing district
that would otherwise be available for distribution to taxing
units in the taxing district; multiplied by
(ii) the clause (C) amount.
(E) Determine the sum of the clause (D) amounts for all taxing
districts in the county.
STEP THREE: Determine the sum of the STEP ONE and STEP
TWO amounts for the county.
If the boundaries of a taxing district change after the years for which a
ratio is calculated under STEP ONE or STEP TWO, the state
comptroller shall establish a ratio for the new taxing district that
reflects the tax rates imposed in the predecessor taxing districts. If a
new taxing district is established after the years for which a ratio is
calculated under STEP ONE, STEP TWO, or STEP THREE, the state
comptroller shall establish a ratio for the new taxing district and adjust
the ratio for other taxing districts in the county.
SECTION 159. IC 6-6-15-7, AS AMENDED BY P.L.9-2024,
SECTION 214, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2027]: Sec. 7. (a) All revenues collected
from the heavy equipment rental excise tax must be deposited in a
special account of the state general fund called the heavy equipment
rental excise tax account.
(b) On or before April 30 and October 30 of each year, all amounts
held in the heavy equipment rental excise tax account must be
distributed to counties as provided by this section.
(c) The amount to be distributed to a county treasurer under this
section equals the part of the total heavy equipment rental excise taxes
being distributed that were initially imposed and collected from within
that county treasurer's county. The department shall notify each county
auditor of the amount of taxes to be distributed to the county treasurer.
At the same time each distribution is made to a county treasurer, the
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department shall certify to the county auditor the taxing districts within
the county where heavy equipment rental excise taxes were collected
and the amount of the county distribution that was collected with
respect to each taxing district.
(d) A county treasurer shall deposit heavy equipment rental excise
tax distributions in a separate account for settlement at the same time
as property taxes are accounted for and settled in June and December
of each year.
(e) Subject to IC 6-1.1-27-10, the county auditor shall apportion
and the county treasurer shall distribute the heavy equipment rental
excise taxes among the taxing units of the county in the same manner
that property taxes are apportioned and distributed with respect to
property located in the taxing district where the heavy equipment rental
excise tax is sourced by the department under section 6(b) of this
chapter.
(f) Before January 1, 2020, the heavy equipment rental excise taxes
distributed to a taxing unit must be deposited in the taxing unit's levy
excess fund under IC 6-1.1-18.5-17, or in the case of a school
corporation, the school corporation's levy excess fund under
IC 20-44-3.
(g) After December 31, 2019, the heavy equipment rental excise
taxes distributed to a taxing unit must be allocated among the taxing
unit's funds in the same proportion that the taxing unit's property tax
collections are allocated among those funds.
(h) (g) After December 31, 2019, taxing units of a county may
request and receive advances of heavy equipment rental excise tax
revenues in the manner provided under IC 5-13-6-3.
(i) (h) All distributions from the heavy equipment rental excise tax
account must be made by warrants issued by the state comptroller to
the treasurer of state ordering those distributions to the appropriate
county treasurer.
SECTION 160. IC 6-6-16-6, AS AMENDED BY P.L.9-2024,
SECTION 215, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2027]: Sec. 6. (a) All revenues collected
from the vehicle sharing excise tax shall be deposited in a special
account of the state general fund called the vehicle sharing excise tax
account.
(b) On or before May 20 and November 20 of each year, all amounts
held in the vehicle sharing excise tax account shall be distributed to the
county treasurers of Indiana.
(c) The amount to be distributed to a county treasurer equals that
part of the total vehicle sharing excise taxes being distributed that were
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initially imposed on and collected from the sharing of motor vehicles
registered in that county for purposes of IC 6-6-5. The department shall
notify each county auditor of the amount of taxes to be distributed to
the county treasurer.
(d) The county treasurer shall deposit vehicle sharing excise tax
collections into a separate account for settlement at the same time as
property taxes are accounted for and settled in June and December of
each year.
(e) Subject to IC 6-1.1-27-10, the county auditor shall apportion
and the county treasurer shall distribute the vehicle sharing excise taxes
among the tax districts in the county in the same proportion as property
taxes are apportioned by the county.
(f) Any vehicle sharing excise tax revenue collected for vehicles that
are not registered under IC 6-6-5 shall be distributed to the state
general fund.
(g) All distributions from the vehicle sharing excise tax account
shall be made by warrants issued by the state comptroller to the
treasurer of state ordering those payments to the appropriate county
treasurer.
SECTION 161. IC 6-9-1-2, AS AMENDED BY P.L.104-2022,
SECTION 29, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 2. (a) In a county having a population of more
than two hundred fifty thousand (250,000) and less than three hundred
thousand (300,000), there is hereby created on and after January 1,
1973, a special funds board of managers.
(b) The board of managers shall be composed of eleven (11)
members as follows plus any additional members appointed under
subsection (l):
(1) Six (6) appointed by the mayor of the city having the largest
population in the county, one (1) of whom shall be from the hotel
motel industry.
(2) Three (3) appointed by the mayor of the city having the
second largest population in the county, one (1) of whom may be
from the hotel motel industry.
(3) Two (2) appointed by the board of county commissioners of
the county, one (1) of whom shall be from the hotel motel
industry.
(c) Except for the members first appointed, each member of the
board of managers shall serve for a term of two (2) years commencing
on the fifteenth day of the January following their appointment and
until their successors are appointed and are qualified.
(d) The two (2) members first appointed by the board of
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commissioners shall serve from the date of their appointment staggered
terms as follows:
(1) One (1) to January 15 of the year following the appointment.
(2) One (1) to January 15 of the second year following the
appointment.
(e) Three (3) of the members first appointed by the mayor of the city
having the largest population in the county and the three (3) members
first appointed by the mayor of the city having the second largest
population in the county shall serve from the date of their appointment
as follows:
(1) One (1) appointed by each mayor to January 15 of the year
following the appointment.
(2) Two (2) appointed by each mayor to January 15 of the second
year following their appointment.
(f) The three (3) remaining members first appointed by the mayor
of the city having the largest population in the county shall serve to
January 15 of the second year following their appointment.
(g) At the end of the term of any member of the board of managers,
the person or body making the original appointment may reappoint
such person whose term has expired or appoint a new member for a full
two (2) year term.
(h) If a vacancy occurs in the board of managers during any term, a
successor for the vacancy shall be appointed by the person or body
making the original appointment, and such successor shall serve for the
remainder of the vacated term.
(i) Any member of the board of managers may be removed for cause
by the person or body making the original appointment.
(j) Not more than two (2) members of the board of managers
appointed by the mayor of the city with the second largest population
in the county shall be of the same political party. No more than three
(3) of the board of managers appointed by the mayor of the city having
the largest population in the county shall be of the same political party.
(k) Each member of the board of managers, before entering upon the
member's duties, shall take and subscribe an oath of office in the usual
form, to be endorsed upon the member's certificate of appointment,
which shall be promptly filed with the county's circuit court clerk. Each
member of the board of managers must be a resident of the county
during the member's entire term. Such member shall receive no salary,
but shall be entitled to reimbursement for any expenses necessarily
incurred in the performance of the member's duties.
(l) The board of managers must also contain a member
appointed by the city executive of each city within the county
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(other than the cities described in subsections (b)(1) and (b)(2)).
SECTION 162. IC 6-9-2.5-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2026]: Sec. 2. (a) There is created
a seven (7) member convention and visitor commission (referred to as
the "commission" in this chapter) plus any additional members
appointed under subsection (f), whose purpose it is to promote the
development and growth of the convention and visitor industry in said
county.
(b) The county council, by majority vote, shall appoint two (2)
members of the commission, at least one (1) of whom must be engaged
in the hotel or motel business in the county. The county commissioners,
by majority vote, shall appoint two (2) members of the commission, at
least one (1) of whom must be engaged in the hotel or motel business
in the county. The mayor of a municipality in the county that has the
largest population, as determined in the federal decennial census, shall
appoint three (3) members of the commission. At least one (1) of the
members appointed by the mayor must be engaged in the hotel or motel
business in the county. Beginning with the next appointment available
to the mayor after a riverboat (as defined in IC 4-33-2-17) initially
begins operation from the county, at least one (1) of the members
appointed by the mayor must represent the interests of riverboats in the
county.
(c) All terms of office begin on January 1 and end on December 31.
Members of the commission appointed by the county council serve two
(2) year terms. Members appointed by the county commissioners serve
one (1) year terms. Members appointed by the mayor of the largest
municipality in the county serve two (2) year terms. A member whose
term expires may be reappointed to serve another term. If a vacancy
occurs, a qualified person shall be appointed by the original appointing
authority to serve for the remainder of the term.
(d) A member of the commission may be removed for cause by his
appointing authority.
(e) Members of the commission may not receive a salary. However,
commission members shall receive reimbursement for necessary
expenses, but only when such necessary expenses are incurred in the
performance of their respective duties.
(f) The commission must also contain a member appointed by
the city executive of each city within the county (other than the
cities described in subsection (b)).
SECTION 163. IC 6-9-3-1, AS AMENDED BY P.L.172-2011,
SECTION 96, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 1. (a) This chapter applies to the following
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counties:
(1) Clark County.
(2) Floyd County.
(b) In these counties, there is created a special funds board of
managers. As used in this chapter, the term "board of managers" means
a special funds board of managers.
(c) Beginning January 15, 2012, the board of managers is composed
of thirteen (13) members as follows plus any additional members
appointed under subsection (k):
(1) Three (3) members appointed by the executive of the city of
New Albany, including at least two (2) members who are:
(A) engaged in a convention, visitor, or tourism business; or
(B) involved in or promoting conventions, visitors, or tourism.
(2) Three (3) members appointed by the executive of the city of
Jeffersonville, including at least two (2) members who are:
(A) engaged in a convention, visitor, or tourism business; or
(B) involved in or promoting conventions, visitors, or tourism.
(3) Two (2) members appointed by the legislative body of the
town of Clarksville, including at least one (1) member who is:
(A) engaged in a convention, visitor, or tourism business; or
(B) involved in or promoting conventions, visitors, or tourism.
(4) Two (2) members appointed by the executive of Floyd County,
including at least one (1) member who is:
(A) engaged in a convention, visitor, or tourism business; or
(B) involved in or promoting conventions, visitors, or tourism.
(5) Three (3) members appointed by the executive of Clark
County, including at least two (2) members who are:
(A) engaged in a convention, visitor, or tourism business; or
(B) involved in or promoting conventions, visitors, or tourism.
(d) The terms of office for the members of the board of managers
are for two (2) years and end as follows:
(1) For each of the following members, the term of office ends on
January 15 of each odd-numbered year:
(A) One (1) member appointed by the executive of Floyd
County.
(B) One (1) member appointed by the executive of Clark
County.
(C) One (1) member appointed by each of the city executives
referred to in this section.
(2) For all other members, the terms of office end on January 15
of each even-numbered year.
The term of the second member appointed under subsection (c)(4) by
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the executive of Floyd County begins January 15, 2012.
(e) At the end of the term of a member of the board of managers, the
person or body making the original appointment may reappoint a
person whose term has expired or appoint a new member for a two (2)
year term. If a vacancy occurs in the board of managers during a term,
a successor for the vacancy shall be appointed by the person or body
making the original appointment, and the successor shall serve for the
remainder of the vacated term.
(f) A member of the board of managers may be removed for cause
by the person or body making the original appointment.
(g) The following apply to the board of managers appointed under
this section:
(1) If an entity is authorized to appoint three (3) members, not
more than two (2) of the members appointed by the entity may
belong to the same political party.
(2) If an entity is authorized to appoint two (2) members, the
members appointed by the entity must belong to different political
parties.
(h) Each member of the board of managers, before entering upon the
member's duties, shall take an oath of office in the usual form, to be
endorsed upon the member's certificate of appointment, which shall be
promptly filed with the clerk of the circuit court of the member's county
of residence.
(i) A person may not be appointed as a member who has not been
a resident of one (1) of the two (2) counties for a period of two (2)
years immediately preceding the person's appointment.
(j) A member may receive no salary but is entitled to reimbursement
for any expenses necessarily incurred in the performance of the
member's duties.
(k) The board of managers must also contain a member
appointed by the city executive of each city within each county
(other than the cities described in subsections (c)(1) and (c)(2)).
SECTION 164. IC 6-9-4-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2026]: Sec. 2. (a) There is created
a five (5) member convention and visitor commission (referred to as
the "commission" in this chapter) plus any additional members
appointed under subsection (g), whose purpose it is to promote the
development and growth of the convention and visitor industry in the
county.
(b) The county council, by majority vote, shall appoint three (3)
members of the commission. Two (2) members must be owners or
general managers of a hotel or motel having at least forty (40) beds that
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is located in the county.
(c) The county commissioners, by majority vote, shall appoint two
(2) members of the commission. One (1) member must be an owner or
general manager of a hotel or motel having at least forty (40) beds that
is located in the county. One (1) member must be the director or
associate director of the Indiana University Memorial Union.
(d) All terms of office begin on January 1 and end on December 31.
Members of the commission appointed by the county council serve two
(2) year terms, and members appointed by the county commissioners
serve one (1) year terms. A member whose term expires may be
reappointed to serve another term. If a vacancy occurs, a person shall
be appointed by the original appointing authority to serve for the
remainder of the term.
(e) A member of the commission may be removed for cause by his
the appointing authority.
(f) Members of the commission may not receive a salary. However,
commission members shall receive reimbursement for necessary
expenses, but only when the necessary expenses are incurred in the
performance of their respective duties.
(g) The commission must also contain a member appointed by
the city executive of each city within the county.
SECTION 165. IC 6-9-6-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2026]: Sec. 2. (a) There is created
a nine (9) member special funds board of managers (referred to as the
"board of managers" in this chapter) plus any additional members
appointed under subsection (g), whose purpose is to promote the
development and growth of the convention and visitor industry in the
county.
(b) The mayor of the second class city shall appoint three (3)
individuals to serve as members of the board of managers. One (1) of
those appointees shall be a representative of the city's business
community, and no more than two (2) of those appointees may be
members of the same political party. The mayor of the third class city
shall appoint three (3) individuals to serve as members of the board of
managers. One (1) of those appointees shall be a representative of the
city's business community, and no more than two (2) of the appointees
may be members of the same political party. The county commissioners
shall appoint three (3) individuals to serve as members of the board of
managers. No more than two (2) of the appointees may be members of
the same political party. All individuals appointed to the board of
managers must have been residents of the county for at least two (2)
years immediately prior to their appointment.
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(c) All terms of membership begin on January 15 and continue for
two (2) years until a successor is appointed. A member whose term
expires may be reappointed to serve another term. If a vacancy occurs
in the board of managers, the original appointing officer or authority
shall appoint a replacement to serve the remainder of the two (2) year
term.
(d) A member of the board of managers may be removed for cause
by the appointing officer or authority.
(e) Each member of the board of managers shall, before beginning
the duties of the office, take an oath of office to be endorsed upon the
member's certificate of appointment, which certificate shall be filed
with the clerk of the circuit court of the county.
(f) Members of the board of managers may not receive a salary, but
are entitled to reimbursement for expenses necessarily incurred in the
performance of their duties.
(g) The board of managers must also contain a member
appointed by the city executive of each city within the county
(other than the cities described in subsection (b)).
SECTION 166. IC 6-9-7-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2026]: Sec. 2. (a) There is created
a ten (10) member convention and visitor commission (referred to as
the "commission" in this chapter) plus any additional members
appointed under subsection (f) whose purpose is to promote the
development and growth of the convention and visitor industry in the
county.
(b) The county council shall, by majority vote, appoint three (3)
members of the commission, at least one (1) of whom must be engaged
in the hotel or motel business in the county, at least one (1) of whom
must be a representative of the travel or visitor industry in the county,
and at least one (1) of whom must be a member of the county council.
The county commissioners shall, by majority vote, appoint three (3)
members of the commission, at least one (1) of whom must be engaged
in the hotel or motel business in the county, at least one (1) of whom
must be a county commissioner, and at least one (1) of whom must be
a representative of the county's business community which
representative may be an executive officer of the chamber of commerce
of the county's largest city. The members appointed by the council and
the commissioners shall, by a majority vote, appoint one (1) member
of the commission from the Purdue conferences department. The
executive of the city with the greatest population in the county shall
appoint two (2) members of the commission, one (1) who must be a
representative of the economic development community and one (1)
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who must be a representative of the travel or visitor industry in the
county. The executive of the city with the second greatest population
in the county shall appoint one (1) member of the commission, who
must be a representative of the travel or visitor industry.
(c) All terms of office begin on January 1 and end on December 31.
Members of the commission appointed by the county council serve two
(2) year terms, and members appointed by the county commissioners
or by the other members of the commission serve one (1) year terms.
A member whose term expires may be reappointed to serve another
term. If a vacancy occurs, a qualified person shall be appointed by the
original appointing authority to serve for the remainder of the term.
(d) A member of the commission may be removed for cause by his
appointing authority.
(e) Members of the commission may not receive a salary. However,
commission members shall receive reimbursement for necessary
expenses, but only when those necessary expenses are incurred in the
performance of their respective duties. In addition, commission
members may receive a maximum of thirty-five dollars ($35) per diem
expenses for attendance at the official commission meetings.
(f) The commission must also contain a member appointed by
the city executive of each city within the county (other than the
cities described in subsection (b)).
SECTION 167. IC 6-9-9-3, AS AMENDED BY P.L.290-2019,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 3. (a) Except as provided in subsection (b),
subsections (b) and (e), the tax imposed by section 2 of this chapter is
imposed at the rate of seven percent (7%) on the gross income derived
from lodging income only.
(b) Except as provided in subsection (e), the county fiscal body
may adopt an ordinance to increase the tax rate to eight percent (8%).
(c) The capital improvement board of managers shall make grants
to the convention and visitor bureau in the county from the tax
proceeds paid to the capital improvement board of managers under this
chapter. A grant made to the convention and visitor bureau in the
county under this subsection is to be used solely for the development
and promotion of the tourism and convention industry within the
county. The amount of the grants to the convention and visitor bureau
in the county under this subsection must equal or exceed:
(1) two-sevenths (2/7) of the tax proceeds paid to the capital
improvement board of managers under this chapter, while an
ordinance described in subsection (b) is not in effect in the
county; or
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(2) three-eighths (3/8) of the tax proceeds paid to the capital
improvement board of managers under this chapter, while an
ordinance described in subsection (b) is in effect in the county.
(d) The capital improvement board of managers may establish
budgetary requirements for the convention and visitors bureau. If the
convention and visitors bureau fails to conform, the board may elect to
suspend funding until the bureau complies. The convention and
visitor bureau in the county must include a member appointed by
the city executive of each city within the county.
(e) Beginning after December 31, 2048, and notwithstanding
subsections (a) and (b), a tax rate imposed under this chapter may
not exceed five percent (5%). The portion of the tax rate imposed
under this chapter that exceeds five percent (5%) shall expire
January 1, 2049.
SECTION 168. IC 6-9-9-5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2026]: Sec. 5. (a) The county treasurer shall transfer two percent
(2%) of the amount of money received from the rate established
under section 3 of this chapter to the fiscal officer of each city in
the county with a population of more than fifteen thousand
(15,000) and less than two hundred thousand (200,000) based on
the population of the most recent decennial census in the city.
(b) The fiscal officer of each city under subsection (a) shall
establish a municipal tourism capital fund. The fiscal officer shall
deposit in the fund all money received by the city under this
section. The city fiscal body shall administer the fund. The city may
not establish a tourism board or similar entity for any purposes of
the fund and the city fiscal body shall have sole authority regarding
the use of money in the fund as set forth under subsection (c).
(c) Money in the fund may be used only for capital projects for
tourism related purposes as determined by the city fiscal body. The
city fiscal body may issue bonds, enter into leases, or incur other
obligations for the purposes of this subsection.
(d) Money transferred to a city under subsection (a) shall not be
used by the city for tourism marketing, tourism promotion, or
tourism planning purposes.
SECTION 169. IC 6-9-10-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2026]: Sec. 2. (a) There is created
a seven (7) member board of managers (referred to as the "board" in
this chapter) plus any additional members appointed under
subsection (g), whose purpose is to promote the development and
growth of the convention and tourism industry in the county.
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(b) The board of county commissioners, by majority vote, shall
appoint three (3) members of the board, one (1) of whom must be
engaged in the lodging industry in the county, one (1) of whom must
be a county commissioner in the county, and one (1) of whom must be
a member of a chamber of commerce in the county. The city council of
the county's largest city according to the last preceding United States
decennial census shall, by majority vote, appoint three (3) members of
the board, one (1) of whom must be engaged in the lodging industry in
the county, one (1) of whom must be engaged in the travel industry in
the county, and one (1) of whom must be a member of the chamber of
commerce of the county's largest city. The mayor of the city having the
largest population in the county according to the last preceding United
States decennial census shall appoint one (1) member who must be a
member of the county's business community.
(c) All terms of office begin on January 1 and end on December 31.
Members of the board appointed by the county commissioners serve
one (1) year terms, and the other members of the board serve two (2)
year terms. If a vacancy occurs, a qualified person shall be appointed
by the original appointing authority to serve for the remainder of the
term.
(d) A board member may be removed for cause by his appointing
authority.
(e) Members of the board may not receive a salary. However, board
members shall receive reimbursement for necessary expenses incurred
in the performance of their respective duties.
(f) Each board member, before entering his duties, shall take an oath
of office in the usual form, to be indorsed upon his certificate of
appointment, which shall be promptly filed with the clerk of the circuit
court of his county of residence.
(g) The board of managers must also contain a member
appointed by the city executive of each city within the county
(other than the city described in subsection (b)).
SECTION 170. IC 6-9-10.5-9, AS ADDED BY P.L.172-2011,
SECTION 105, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 9. (a) If the tax levied under section
6 of this chapter is increased by an ordinance of the county fiscal body,
the county executive shall create a commission to promote:
(1) economic development; and
(2) the development and growth of the convention, visitor, and
tourism industry;
in the county.
(b) The composition and appointment of the membership of a
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commission created under subsection (a) must be as follows:
(1) Subject to subdivision (2), the county executive shall
determine the number of members of the commission. However,
the commission also consists of any members appointed under
subsection (h).
(2) The commission must be composed of an odd number of
members.
(3) A simple majority of the members must be:
(A) engaged in the convention or tourism business;
(B) involved in or promoting conventions, visitors, or tourism;
or
(C) involved in promoting economic development in the
county.
(4) At least two (2) members must be engaged in the business of
renting or furnishing rooms, lodging, or accommodations (as
described in section 6 of this chapter) if at least two (2) such
individuals are available and willing to serve on the commission.
(5) Not more than a simple majority of the members may be
affiliated with the same political party.
(6) Each member must reside in the county.
(7) The executive of the largest municipality of the county shall
appoint a number of members equal to:
(A) the total number of members of the commission;
multiplied by
(B) a fraction:
(i) the numerator of which is equal to the population of the
largest municipality in the county; and
(ii) the denominator of which is equal to the total population
of the county;
rounded to the nearest whole number. The county executive shall
determine who appoints the members of the commission not
appointed by the executive of the largest municipality of the
county.
(c) All terms of office of commission members begin on January 1.
Initial appointments must be for staggered terms, with subsequent
appointments for two (2) year terms. A member whose term expires
may be reappointed to serve another term. If a vacancy occurs, the
appointing authority shall appoint a qualified person to serve for the
remainder of the term. If an initial appointment is not made by
February 1 or a vacancy is not filled within thirty (30) days after the
vacancy occurs, the commission shall appoint a member by majority
vote.
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(d) A member of the commission may be removed for cause by the
member's appointing authority.
(e) Members of the commission may not receive a salary. However,
commission members are entitled to reimbursement for necessary
expenses incurred in the performance of their respective duties.
(f) Each commission member, before entering the member's duties,
shall take an oath of office in the usual form, to be endorsed upon the
member's certificate of appointment and promptly filed with the clerk
of the circuit court of the county.
(g) The commission shall meet after January 1 each year for the
purpose of organization. The commission shall elect one (1) of its
members president, another vice president, another secretary, and
another treasurer. The members elected to those offices shall perform
the duties pertaining to the offices. The first officers chosen shall serve
from the date of their election until their successors are elected and
qualified. A majority of the commission constitutes a quorum, and the
concurrence of a majority of the commission is necessary to authorize
any action.
(h) The commission must also contain a member appointed by
the city executive of each city within the county (other than the
municipality described in subsection (b)(7)).
SECTION 171. IC 6-9-11-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2026]: Sec. 2. (a) If a tax is levied
under section 6(a) of this chapter, there is created a five (5) member
convention and visitor commission (referred to as the "commission" in
this chapter) plus any additional members appointed under
subsection (e), whose purpose it is to promote the development and
growth of the convention and visitor industry in the county.
(b) The county council, by majority vote, shall appoint two (2)
members of the commission, one (1) of whom must be engaged in the
hotel or motel business in the county and one (1) of whom must be
engaged in the profession of education within the county. The two (2)
members appointed by the county council may not be members of the
same political party. The county commissioners, by majority vote, shall
appoint two (2) members of the commission, one (1) of whom must be
engaged in the hotel or motel business within the county and one (1) of
whom must be representative of business, industry or labor within the
county. The two (2) members appointed by the county commissioners
may not be members of the same political party. The mayor of the
largest city in the county, according to the preceding decennial United
States census, shall appoint one (1) member of the commission. The
mayor's appointee must be engaged in the hotel or motel business in the
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county.
(c) The initial terms of office of the members of the commission
begin on the date a tax is levied under section 6(a) of this chapter. The
initial terms of the members appointed by the county commissioners
end on December 31 of the year in which the tax is levied, and the
initial terms of the members appointed by the county council and by the
mayor of the largest city end on December 31 of the immediately
following year. All terms of office after the initial terms begin on
January 1 and end on December 31. After the initial terms, members of
the commission appointed by the county council and by the mayor of
the largest city serve two (2) year terms, and members appointed by the
county commissioners serve one (1) year terms. A member whose term
expires may be reappointed to serve another term. If a vacancy occurs,
the commission, by majority vote shall, within thirty (30) days, appoint
a qualified person to serve the remainder of the term. If the commission
fails to appoint a person within thirty (30) days of the vacancy, the
original appointing official or body for that vacant position, by majority
vote, shall appoint a qualified person to serve the remainder of the
term.
(d) Members of the commission may not receive a salary. However,
commission members shall receive reimbursement for necessary
expenses, but only when the necessary expenses are incurred in the
performance of their respective duties.
(e) The commission must also contain a member appointed by
the city executive of each city within the county (other than the city
described in subsection (b)).
SECTION 172. IC 6-9-14-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2026]: Sec. 2. (a) A county that
imposes a tax pursuant to section 6 of this chapter shall create a five (5)
member convention and visitors commission (referred to as the
"commission" in this chapter) plus any additional members
appointed under subsection (f), whose purpose it is to promote the
development and growth of conventions and visitation in the county.
(b) If a convention and visitors commission is created for a county,
the county council, by majority vote, shall appoint three (3) members
of the commission, at least two (2) of whom must be engaged in the
hotel or motel business in the county. The county commissioners, by
majority vote, shall appoint two (2) members of the commission, at
least one (1) of whom must be engaged in the hotel or motel business
within the county.
(c) All terms of office begin on January 1 and end on December 31.
Members of the commission appointed by the county council serve two
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(2) year terms, and members appointed by the county commissioners
serve one (1) year terms. A member whose term expires may be
reappointed to serve another term. If a vacancy occurs, a qualified
person shall be appointed by the original appointing authority to serve
for the remainder of the term.
(d) A member of the commission may be removed for cause by his
appointing authority.
(e) Members of the commission may not receive a salary. However,
commission members shall receive reimbursement for necessary
expenses, but only when the necessary expenses are incurred in the
performance of their respective duties.
(f) The commission must also contain a member appointed by
the city executive of each city within the county.
SECTION 173. IC 6-9-15-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2026]: Sec. 2. (a) There is created
a seven (7) member board of managers (referred to as the "board" in
this chapter) plus any additional members appointed under
subsection (g), whose purpose is to promote the development and
growth of the convention activity, tourism and industry in the county.
(b) The board of county commissioners, by majority vote, shall
appoint three (3) members of the board, one (1) of whom must be
engaged in the lodging industry in the county, one (1) of whom must
be a county commissioner in the county, and one (1) of whom must be
a member of a chamber of commerce in the county. The city council of
the county's largest city according to the last preceding United States
decennial census shall, by majority vote, appoint three (3) members of
the board, one (1) of whom must be engaged in the lodging industry in
the county, one (1) of whom must be engaged in the travel industry in
the county, and one (1) of whom must be a member of the common
council of the county's largest city. The mayor of the city having the
largest population in the county according to the last preceding United
States decennial census shall appoint one (1) member who must be a
member of the county's business community.
(c) All terms of office begin on January 1 and end on December 31.
Members of the board appointed by the county commissioners serve
one (1) year terms, and the other members of the board serve two (2)
year terms. If a vacancy occurs, a qualified person shall be appointed
by the original appointing authority to serve for the remainder of the
term.
(d) A board member may be removed for cause by his appointing
authority.
(e) Members of the board may not receive a salary or reimbursement
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for necessary expenses incurred in the performance of their respective
duties.
(f) Each board member, before entering his duties, shall take an oath
of office in the usual form, to be indorsed upon his certificate of
appointment, which shall be promptly filed with the clerk of the circuit
court of his county of residence.
(g) The board of managers must also contain a member
appointed by the city executive of each city within the county
(other than the city described in subsection (b)).
SECTION 174. IC 6-9-17-5, AS AMENDED BY P.L.166-2014,
SECTION 35, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 5. (a) When the tax is levied under section 3 of
this chapter, there is created a seven (7) member visitor and convention
commission (referred to as the commission in this chapter), plus any
additional members appointed under subsection (i), to promote the
development and growth of the convention and visitor industry in the
county.
(b) The executive of the city with the largest population in the
county shall appoint five (5) members of the commission as follows:
(1) Two (2) members must be engaged in the lodging business in
the county.
(2) Two (2) members must be engaged in business in the county.
(3) One (1) member must be engaged in the tourism and
hospitality industry.
(c) The county fiscal body shall appoint two (2) members of the
commission. Each member must be engaged in business in the county.
(d) All terms of office of commission members begin on January 1.
Members of the commission serve terms of two (2) years. A member
whose term expires may be reappointed to serve another term. If an
initial appointment is not made by February 1 or a vacancy is not filled
within thirty (30) days, the commission shall appoint a member by
majority vote to serve for the remainder of the term.
(e) A member of the commission may be removed for cause by his
appointing authority.
(f) Members of the commission may not receive a salary. However,
commission members are entitled to reimbursement for necessary
expenses incurred in the performance of their respective duties.
(g) Each commission member, before taking office, shall take an
oath of office in the usual form, to be endorsed upon the member's
certificate of appointment and promptly filed with the clerk of the
circuit court of the county.
(h) The commission shall meet after January 1 each year for the
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purpose of organization. It shall elect one (1) of its members president,
another vice president, another secretary, and another treasurer. The
members elected to those offices shall perform the duties pertaining to
the offices. The officers chosen shall serve from the date of their
election until their successors are elected and qualified. A majority of
the commission constitutes a quorum, and the concurrence of a
majority of the commission is necessary to authorize any action.
(i) The commission must also contain a member appointed by
the city executive of each city within the county (other than the city
described in subsection (b)).
SECTION 175. IC 6-9-18-3, AS AMENDED BY THE
TECHNICAL CORRECTIONS BILL OF THE 2026 GENERAL
ASSEMBLY, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 3. (a) The fiscal body of a county may levy a tax
on every person engaged in the business of renting or furnishing, for
periods of less than thirty (30) days, any room or rooms, lodgings, or
accommodations in any:
(1) hotel;
(2) motel;
(3) boat motel;
(4) inn;
(5) college or university memorial union;
(6) college or university residence hall or dormitory; or
(7) tourist cabin;
located in the county.
(b) The tax does not apply to gross income received in a transaction
in which:
(1) a student rents lodgings in a college or university residence
hall while that student participates in a course of study for which
the student receives college credit from a college or university
located in the county; or
(2) a person rents a room, lodging, or accommodations for a
period of thirty (30) days or more.
(c) The tax may not exceed:
(1) the rate of five percent (5%) in a county other than a county
subject to subdivision (2), (3), or (4), or (5);
(2) after June 30, 2019, and except as provided in section 6.7 of
this chapter, the rate of eight percent (8%) in Howard County; or
(3) after June 30, 2021, the rate of nine percent (9%) in Daviess
County;
(4) subject to subsection (g), after June 30, 2026, the rate of
eight percent (8%) in DeKalb County; or
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(5) subject to subsection (g), after June 30, 2026, the rate of
eight percent (8%) in Noble County.
The tax is imposed on the gross retail income derived from lodging
income only and is in addition to the state gross retail tax imposed
under IC 6-2.5.
(d) The county fiscal body may adopt an ordinance to require that
the tax shall be paid monthly to the county treasurer. If such an
ordinance is adopted, the tax shall be paid to the county treasurer not
more than twenty (20) days after the end of the month the tax is
collected. If such an ordinance is not adopted, the tax shall be imposed,
paid, and collected in exactly the same manner as the state gross retail
tax is imposed, paid, and collected under IC 6-2.5.
(e) All of the provisions of IC 6-2.5 relating to rights, duties,
liabilities, procedures, penalties, definitions, exemptions, and
administration are applicable to the imposition and administration of
the tax imposed under this section except to the extent those provisions
are in conflict or inconsistent with the specific provisions of this
chapter or the requirements of the county treasurer. If the tax is paid to
the department of state revenue, the return to be filed for the payment
of the tax under this section may be either a separate return or may be
combined with the return filed for the payment of the state gross retail
tax as the department of state revenue may, by rule, determine.
(f) If the tax is paid to the department of state revenue, the amounts
received from the tax imposed under this section shall be paid monthly
by the treasurer of state to the county treasurer upon warrants issued by
the state comptroller.
(g) Beginning after December 31, 2048, a tax rate imposed in
DeKalb County under subsection (c)(4) and in Noble County under
subsection (c)(5) may not exceed five percent (5%). The portion of
a tax rate imposed in DeKalb County under subsection (c)(4) or in
Noble County under subsection (c)(5) that exceeds five percent
(5%) shall expire January 1, 2049.
SECTION 176. IC 6-9-18-5, AS AMENDED BY HEA 1161-2026,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 5. (a) If a tax is levied under section 3 of this
chapter, the county executive shall create a commission to promote the
development and growth of the convention, visitor, and tourism
industry in the county. If two (2) or more adjoining counties desire to
establish a joint commission, the counties shall enter into an agreement
under IC 36-1-7.
(b) The county executive shall determine the number of members,
which must be an odd number, to be appointed to the commission.
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However, the commission must also include any additional
members appointed under subsection (i). A simple majority of the
members must be:
(1) engaged in a convention, visitor, or tourism business; or
(2) involved in or promoting conventions, visitors, or tourism.
A member appointed to the commission under subdivision (1) or (2)
need not be a resident of the county if the member is an owner or an
executive level employee of a convention, visitor, or tourism business
that is located within the county. However, the member must be a
resident of Indiana. If available and willing to serve, at least two (2) of
the members must be engaged in the business of renting or furnishing
rooms, lodging, or accommodations (as described in section 3 of this
chapter). Not more than one (1) member may be affiliated with the
same business entity. Except as otherwise provided in this subsection,
each member must reside in the county. The county executive shall
also determine who will make the appointments to the commission,
except that the executive of the largest municipality in the county shall
appoint a number of the members of the commission, which number
shall be in the same ratio to the total size of the commission (rounded
off to the nearest whole number) that the population of the largest
municipality bears to the total population of the county.
(c) This subsection applies to a county in which a tax imposed under
this chapter becomes effective after December 31, 1989. If a
municipality other than the largest municipality in the county collects
fifty percent (50%) or more of the tax revenue collected under this
chapter during the three (3) month period following imposition of the
tax, the executive of the municipality shall appoint the same number of
members to the commission that the executive of the largest
municipality in the county appoints under subsection (b).
(d) Except as provided in subsection (c), all terms of office of
commission members begin on January 1. Initial appointments must be
for staggered terms, with subsequent appointments for two (2) year
terms. A member whose term expires may be reappointed to serve
another term. If a vacancy occurs, the appointing authority shall
appoint a qualified person to serve for the remainder of the term. If an
initial appointment is not made by February 1 or a vacancy is not filled
within thirty (30) days, the commission shall appoint a member by
majority vote.
(e) An individual who is appointed a member of the commission
serves at the pleasure of the member's appointing authority as long as:
(1) the officeholder who appointed the individual continues to
hold the same office; or
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(2) the board, committee, or body that appointed the individual
retains all of the same members who served on the board,
committee, or body when the individual was appointed.
If subdivision (1) or (2) does not apply, the individual may only be
removed for cause.
(f) Members of the commission may not receive a salary. However,
commission members are entitled to reimbursement for necessary
expenses incurred in the performance of their respective duties.
(g) Each commission member, before entering the member's duties,
shall take an oath of office in the usual form, to be endorsed upon the
member's certificate of appointment and promptly filed with the clerk
of the circuit court of the county.
(h) The commission shall meet after January 1 each year for the
purpose of organization. It shall elect one (1) of its members president,
another vice president, another secretary, and another treasurer. The
members elected to those offices shall perform the duties pertaining to
the offices. The first officers chosen shall serve from the date of their
election until their successors are elected and qualified. A majority of
the commission constitutes a quorum, and the concurrence of a
majority of the commission is necessary to authorize any action.
(i) The commission must also include a member appointed by
the city executive of each city within the county (other than a city
described in subsections (b) or (c)). This subsection does not apply
to Porter County.
SECTION 177. IC 6-9-19-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2026]: Sec. 5. (a) If a tax is levied
under section 3 of this chapter, the county executive shall create a
commission to promote the development and growth of the convention
and visitor industry in the county.
(b) The commission consists of seven (7) members plus any
additional members appointed under subsection (h). Except for the
members appointed under subsection (h), the county executive shall
appoint all members to the commission. Four (4) members must be
actively engaged in the management of a hotel or motel in the county.
The remainder of the commission members must be members, officers,
or directors of a chamber of commerce within the county or of other
Indiana not-for-profit corporations organized to promote and solicit
conventions, trade shows, or visitors in the county.
(c) All terms of office of commission members begin on January 1.
Initial appointments must be for staggered terms, with subsequent
appointments for two (2) year terms. A member whose term expires
may be reappointed to serve another term. If a vacancy occurs, the
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county executive shall appoint a qualified person, as provided in
subsection (b), to serve for the remainder of the term.
(d) A member of the commission may be removed for cause by the
county executive.
(e) Members of the commission may not receive a salary. However,
commission members are entitled to reimbursement for necessary
expenses incurred in the performance of their respective duties.
(f) Each commission member, before entering his duties, shall take
an oath of office in the usual form, to be endorsed upon his certificate
of appointment and promptly filed with the clerk of the circuit court of
the county.
(g) The commission shall meet after January 1 each year for the
purpose of organization. It shall elect one (1) of its members president,
another vice president, another secretary, and another treasurer. The
members elected to those offices shall perform the duties pertaining to
the offices. The first officers chosen shall serve from the date of their
election until their successors are elected and qualified. A majority of
the commission constitutes a quorum, and the concurrence of a
majority of the commission is necessary to authorize any action.
(h) The commission must also include a member appointed by
the city executive of each city within the county.
SECTION 178. IC 6-9-29-1.4 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 1.4. As used in this article, "city"
means a first class city, second class city, or third class city as
classified under IC 36-4-1-1.
SECTION 179. IC 6-9-32-3, AS AMENDED BY P.L.9-2024,
SECTION 245, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 3. (a) The fiscal body of a county
may levy a tax on every person engaged in the business of renting or
furnishing, for periods of less than thirty (30) days, any room or rooms,
lodgings, or accommodations in any:
(1) hotel;
(2) motel;
(3) boat motel;
(4) inn; or
(5) tourist cabin;
located in the county.
(b) The tax does not apply to gross income received in a transaction
in which a person rents a room, lodging, or accommodations for a
period of thirty (30) days or more.
(c) Subject to subsection (g), the The tax may not exceed the rate
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of five percent (5%) eight percent (8%) on the gross retail income
derived from lodging income only and is in addition to the state gross
retail tax imposed under IC 6-2.5.
(d) The county fiscal body may adopt an ordinance to require that
the tax shall be paid monthly to the county treasurer. If such an
ordinance is adopted, the tax shall be paid to the county treasurer not
more than twenty (20) days after the end of the month the tax is
collected. If such an ordinance is not adopted, the tax shall be imposed,
paid, and collected in exactly the same manner as the state gross retail
tax is imposed, paid, and collected under IC 6-2.5.
(e) All of the provisions of IC 6-2.5 relating to rights, duties,
liabilities, procedures, penalties, definitions, exemptions, and
administration are applicable to the imposition and administration of
the tax imposed under this section except to the extent those provisions
are in conflict or inconsistent with the specific provisions of this
chapter or the requirements of the county treasurer. If the tax is paid to
the department of state revenue, the return to be filed for the payment
of the tax under this section may be either a separate return or may be
combined with the return filed for the payment of the state gross retail
tax as the department of state revenue may, by rule, determine.
(f) If the tax is paid to the department of state revenue, the amounts
received from the tax imposed under this section shall be paid monthly
by the treasurer of state to the county treasurer upon warrants issued by
the state comptroller.
(g) Beginning after December 31, 2048, and notwithstanding
subsection (c), a tax rate imposed under this chapter may not
exceed five percent (5%). The portion of the tax rate imposed
under this chapter that exceeds five percent (5%) shall expire
January 1, 2049.
SECTION 180. IC 6-9-32-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2026]: Sec. 5. (a) The county
executive shall create a commission to promote the development and
growth of the convention, visitor, and tourism industry in the county.
If two (2) or more adjoining counties desire to establish a joint
commission, the counties shall enter into an agreement under
IC 36-1-7.
(b) The county executive shall determine the number of members,
which must be an odd number, to be appointed to the commission.
However, the commission must also include any additional
members appointed under subsection (i). A simple majority of the
members must be:
(1) engaged in a convention, visitor, or tourism business; or
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(2) involved in or promoting conventions, visitors, or tourism.
If available and willing to serve, at least two (2) of the members must
be engaged in the business of renting or furnishing rooms, lodging, or
accommodations (as described in section 3 of this chapter). Not more
than one (1) member may be affiliated with the same business entity.
No more than a simple majority of the members may be affiliated with
the same political party. Each member must reside in the county. The
county executive shall also determine who will make the appointments
to the commission, except that the executive of the largest municipality
in the county shall appoint a number of the members of the
commission, which number shall be in the same ratio to the total size
of the commission (rounded off to the nearest whole number) that the
population of the largest municipality bears to the total population of
the county.
(c) If a municipality other than the largest municipality in the county
collects fifty percent (50%) or more of the tax revenue collected under
this chapter during the three (3) month period following imposition of
the tax, the executive of the municipality shall appoint the same
number of members to the commission that the executive of the largest
municipality in the county appoints under subsection (b).
(d) Except as provided in subsection (c), all terms of office of
commission members begin on January 1. Initial appointments must be
for staggered terms, with subsequent appointments for two (2) year
terms. A member whose term expires may be reappointed to serve
another term. If a vacancy occurs, the appointing authority shall
appoint a qualified person to serve for the remainder of the term. If an
initial appointment is not made by February 1 or a vacancy is not filled
within thirty (30) days, the commission shall appoint a member by
majority vote.
(e) A member of the commission may be removed for cause by the
member's appointing authority.
(f) Members of the commission may not receive a salary. However,
commission members are entitled to reimbursement for necessary
expenses incurred in the performance of their respective duties.
(g) Each commission member, before entering the member's duties,
shall take an oath of office in the usual form, to be endorsed upon the
member's certificate of appointment and promptly filed with the clerk
of the circuit court of the county.
(h) The commission shall meet after January 1 each year for the
purpose of organization. It shall elect one (1) of its members president,
another vice president, another secretary, and another treasurer. The
members elected to those offices shall perform the duties pertaining to
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the offices. The first officers chosen shall serve from the date of their
election until their successors are elected and qualified. A majority of
the commission constitutes a quorum, and the concurrence of a
majority of the commission is necessary to authorize any action.
(i) The commission must also include a member appointed by
the city executive of each city within the county (other than a city
described in subsections (b) or (c)).
SECTION 181. IC 6-9-37-5, AS ADDED BY P.L.214-2005,
SECTION 46, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 5. (a) The county executive shall create a
commission to promote the development and growth of the convention,
visitor, and tourism industry in the county. If two (2) or more adjoining
counties desire to establish a joint commission, the counties shall enter
into an agreement under IC 36-1-7.
(b) The county executive shall determine the number of members,
which must be an odd number, to be appointed to the commission.
However, the commission must also include any additional
members appointed under subsection (i). A simple majority of the
members must be:
(1) engaged in a convention, visitor, or tourism business; or
(2) involved in or promoting conventions, visitors, or tourism.
If available and willing to serve, at least two (2) of the members must
be engaged in the business of renting or furnishing rooms, lodging, or
accommodations (as described in section 3 of this chapter). Not more
than one (1) member may be affiliated with the same business entity.
Not more than a simple majority of the members may be affiliated with
the same political party. Each member must reside in the county. The
county executive shall also determine who will make the appointments
to the commission, except that the executive of the largest municipality
in the county shall appoint a number of the members of the
commission, which number shall be in the same ratio to the total size
of the commission (rounded off to the nearest whole number) that the
population of the largest municipality bears to the total population of
the county.
(c) If a municipality other than the largest municipality in the county
collects fifty percent (50%) or more of the tax revenue collected under
this chapter during the three (3) month period following imposition of
the tax, the executive of the municipality shall appoint the same
number of members to the commission that the executive of the largest
municipality in the county appoints under subsection (b).
(d) Except as provided in subsection (c), all terms of office of
commission members begin on January 1. Initial appointments must be
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for staggered terms, with subsequent appointments for two (2) year
terms. A member whose term expires may be reappointed to serve
another term. If a vacancy occurs, the appointing authority shall
appoint a qualified person to serve for the remainder of the term. If an
initial appointment is not made by February 1 or a vacancy is not filled
within thirty (30) days, the commission shall appoint a member by
majority vote.
(e) A member of the commission may be removed for cause by the
member's appointing authority.
(f) Members of the commission may not receive a salary. However,
commission members are entitled to reimbursement for necessary
expenses incurred in the performance of their respective duties.
(g) Each commission member, before entering the member's duties,
shall take an oath of office in the usual form, to be endorsed upon the
member's certificate of appointment and promptly filed with the clerk
of the circuit court of the county.
(h) The commission shall meet after January 1 each year for the
purpose of organization. It shall elect one (1) of its members president,
another vice president, another secretary, and another treasurer. The
members elected to those offices shall perform the duties pertaining to
the offices. The first officers chosen shall serve from the date of their
election until their successors are elected and qualified. A majority of
the commission constitutes a quorum, and the concurrence of a
majority of the commission is necessary to authorize any action.
(i) The commission must also include a member appointed by
the city executive of each city within the county (other than a city
described in subsections (b) or (c)).
SECTION 182. IC 6-9-45.5-13 IS REPEALED [EFFECTIVE JULY
1, 2025 (RETROACTIVE)]:. Sec. 13. (a) As used in this section,
"another food and beverage tax" refers to an excise tax that is imposed
under any law other than this chapter and that is levied in all or any
part of Orange County on a transaction in which food or beverage is
furnished, prepared, or served:
(1) for consumption at a location, or on equipment, provided by
a retail merchant;
(2) in the area in which the food and beverage tax is imposed; and
(3) by a retail merchant for consideration.
(b) Notwithstanding any other law, another food and beverage tax
does not apply to transactions described in section 9 of this chapter.
SECTION 183. IC 6-9-53-7, AS ADDED BY P.L.290-2019,
SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 7. (a) The county executive shall create a
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commission to promote the development and growth of the convention,
visitor, and tourism industry in the county. If two (2) or more adjoining
counties desire to establish a joint commission, the counties shall enter
into an agreement under IC 36-1-7.
(b) The county executive shall determine the number of members,
which must be an odd number, to be appointed to the commission.
However, the commission must also include any additional
members appointed under subsection (i). A simple majority of the
members must be:
(1) engaged in a convention, visitor, or tourism business; or
(2) involved in or promoting conventions, visitors, or tourism.
If available and willing to serve, at least two (2) of the members must
be engaged in the business of renting or furnishing rooms, lodging, or
accommodations (as described in section 3 of this chapter). Not more
than one (1) member may be affiliated with the same business entity.
Not more than a simple majority of the members may be affiliated with
the same political party. Each member must reside in the county. The
county executive shall also determine who will make the appointments
to the commission, except that the executive of the largest municipality
in the county shall appoint a number of the members of the
commission, which number shall be in the same ratio to the total size
of the commission (rounded off to the nearest whole number) that the
population of the largest municipality bears to the total population of
the county.
(c) If a municipality other than the largest municipality in the county
collects fifty percent (50%) or more of the tax revenue collected under
this chapter during the three (3) month period following imposition of
the tax, the executive of the municipality shall appoint the same
number of members to the commission that the executive of the largest
municipality in the county appoints under subsection (b).
(d) Except as provided in subsection (c), all terms of office of
commission members begin on January 1. Initial appointments must be
for staggered terms, with subsequent appointments for two (2) year
terms. A member whose term expires may be reappointed to serve
another term. If a vacancy occurs, the appointing authority shall
appoint a qualified person to serve for the remainder of the term. If an
initial appointment is not made by February 1 or a vacancy is not filled
within thirty (30) days, the commission shall appoint a member by
majority vote.
(e) A member of the commission may be removed for cause by the
member's appointing authority.
(f) Members of the commission may not receive a salary. However,
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commission members are entitled to reimbursement for necessary
expenses incurred in the performance of their respective duties.
(g) Each commission member, before entering the commission
member's duties, shall take an oath of office in the usual form, to be
endorsed upon the commission member's certificate of appointment
and promptly filed with the clerk of the circuit court of the county.
(h) The commission shall meet after January 1 each year for the
purpose of organization. It shall elect one (1) of its members president,
another vice president, another secretary, and another treasurer. The
members elected to those offices shall perform the duties pertaining to
the offices. The first officers chosen shall serve from the date of their
election until their successors are elected and qualified. A majority of
the commission constitutes a quorum, and the concurrence of a
majority of the commission is necessary to authorize any action.
(i) The commission must also include a member appointed by
the city executive of each city within the county (other than a city
described in subsections (b) or (c)).
SECTION 184. IC 6-9-56-1, AS ADDED BY P.L.236-2023,
SECTION 121, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 1. (a) This chapter applies to
Hamilton County, if the county had adopted an innkeeper's tax under
IC 6-9-18 before July 1, 2023.
(b) The:
(1) convention, visitor, and tourism promotion fund (before its
repeal);
(2) convention and visitor commission;
(3) innkeeper's tax rate; and
(4) tax collection procedures;
established under IC 6-9-18 before July 1, 2023, remain in effect and
govern the county's innkeeper's tax until amended under this chapter.
(c) A member of the convention and visitor commission established
under IC 6-9-18 before July 1, 2023, shall serve a full term of office. If
a vacancy occurs, the appointing authority shall appoint a qualified
replacement as provided under this chapter. The appointing authority
shall make other subsequent appointments to the commission as
provided under this chapter.
SECTION 185. IC 6-9-56-3, AS ADDED BY P.L.236-2023,
SECTION 121, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 3. (a) The fiscal body of the county
may impose a tax on every person engaged in the business of renting
or furnishing, for periods of less than thirty (30) days, any room or
rooms, lodgings, or accommodations in any:
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(1) hotel;
(2) motel;
(3) boat motel;
(4) inn;
(5) college or university memorial union;
(6) college or university residence hall or dormitory; or
(7) tourist cabin;
located in the county.
(b) The tax does not apply to gross income received in a transaction
in which:
(1) a student rents lodgings in a college or university residence
hall while that student participates in a course of study for which
the student receives college credit from a college or university
located in the county; or
(2) a person rents a room, lodging, or accommodations for a
period of thirty (30) days or more.
(c) The following apply to the tax rate imposed under this section:
(1) Before July 1, 2023, the tax may not exceed the rate of five
percent (5%) on the gross retail income derived from lodging
income only and is in addition to the state gross retail tax imposed
under IC 6-2.5.
(2) After June 30, 2023, and before January 1, 2049, the tax
may not exceed the rate of eight percent (8%) on the gross retail
income derived from lodging income only and is in addition to the
state gross retail tax imposed under IC 6-2.5.
(3) After December 31, 2048, a tax rate imposed under this
chapter may not exceed five percent (5%). The portion of the
tax rate imposed under subsection (2) that exceeds five
percent (5%) shall expire January 1, 2049.
(d) The county fiscal body may adopt an ordinance to require that
the tax shall be paid monthly to the county treasurer. If such an
ordinance is adopted, the tax shall be paid to the county treasurer not
more than twenty (20) days after the end of the month the tax is
collected. If such an ordinance is not adopted, the tax shall be imposed,
paid, and collected in exactly the same manner as the state gross retail
tax is imposed, paid, and collected under IC 6-2.5.
(e) All of the provisions of IC 6-2.5 relating to rights, duties,
liabilities, procedures, penalties, definitions, exemptions, and
administration are applicable to the imposition and administration of
the tax imposed under this section except to the extent those provisions
are in conflict or inconsistent with the specific provisions of this
chapter or the requirements of the county treasurer. If the tax is paid to
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the department of state revenue, the return to be filed for the payment
of the tax under this section may be either a separate return or may be
combined with the return filed for the payment of the state gross retail
tax as the department of state revenue may, by rule, determine.
SECTION 186. IC 6-9-56-4, AS ADDED BY P.L.236-2023,
SECTION 121, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 4. (a) If a tax is imposed under
section 3 of this chapter, the county treasurer shall establish the
following funds:
(1) A convention, visitor, and tourism promotion fund (before its
repeal).
(2) A convention, visitor, tourism promotion, and capital fund.
(2) (3) A municipal tourism capital fund, if the county fiscal body
adopts an ordinance to increase the tax rate under section 3 of this
chapter and both the county fiscal body and the county executive
adopt ordinances approving the establishment of a tourism capital
fund.
The county treasurer shall deposit in each fund all amounts the county
treasurer receives under section 3 of this chapter and in accordance
with the allocations required by sections 7 7.5 and 8 8.5 of this chapter.
(b) The county auditor shall issue a warrant directing the county
treasurer to transfer money from the convention, visitor, and tourism
promotion, and capital fund and municipal tourism capital fund to the
commission's treasurer if the commission submits a written request for
the transfer.
(c) Money in a convention, visitor, and tourism promotion, and
capital fund, or money transferred from such a fund under subsection
(b), may be expended only for the following purposes:
(1) To promote and encourage conventions, visitors, and tourism
within the county. Expenditures under this subsection subdivision
may include expenditures for advertising, promotional activities,
trade shows, special events, and recreation.
(2) For infrastructure projects that improve or benefit the
tourism economy. Expenditures under this subdivision may
include acquisition, construction, alteration, improvements,
or installation costs of any existing tangible property or
tangible property that is to be constructed. Expenditures
under this subdivision may include fees for professional
services such as architectural, building consulting or
planning, and infrastructure feasibility.
(d) Money in a municipal tourism capital fund, or money
transferred from such a fund under subsection (b), may be expended on
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infrastructure projects that improve or benefit the tourism economy.
Expenditures may include acquisition, construction, alteration,
improvements, or installation costs of any existing tangible property or
tangible property that is to be constructed. Expenditures may include
fees for professional services such as architectural, building consulting
or planning, and infrastructure feasibility.
SECTION 187. IC 6-9-56-5, AS ADDED BY P.L.236-2023,
SECTION 121, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 5. (a) The county executive shall
create a commission to promote the development and growth of the
convention, visitor, and tourism industry in the county.
(b) The county executive shall determine the number of members,
which must be an odd number and may not exceed fifteen (15)
members, to be appointed to the commission. The commission must
also include any additional members appointed under subsection
(h). A simple majority of the members must not represent the
hospitality industry or be:
(1) engaged in a convention, visitor, or tourism business; or
(2) involved in or promoting conventions, visitors, or tourism.
A member appointed to the commission under subdivision (1) or (2)
need not be a resident of the county if the member is an owner or an
executive level employee of a convention, visitor, or tourism business
that is located within the county. However, the member must be a
resident of Indiana. If available and willing to serve, at least two (2) of
the members must be engaged in the business of renting or furnishing
rooms, lodging, or accommodations (as described in section 3 of this
chapter). Not more than one (1) member may be affiliated with the
same business entity. Except as otherwise provided in this subsection,
each member must reside in the county. The county executive shall
also determine who will make the appointments to the commission.
(c) All terms of office of commission members begin on January 1.
Initial appointments must be for staggered terms, with subsequent
appointments for two (2) year terms. A member whose term expires
may be reappointed to serve another term. If a vacancy occurs, the
appointing authority shall appoint a qualified person to serve for the
remainder of the term. If an initial appointment is not made by
February 1 or a vacancy is not filled within thirty (30) days, the
commission shall appoint a member by majority vote.
(d) A member of the commission may be removed for cause by the
member's appointing authority.
(e) Members of the commission may not receive a salary. However,
commission members are entitled to reimbursement for necessary
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expenses incurred in the performance of their respective duties.
(f) Each commission member, before entering the member's duties,
shall take an oath of office in the usual form, to be endorsed upon the
member's certificate of appointment and promptly filed with the clerk
of the circuit court of the county.
(g) The commission shall meet after January 1 each year for the
purpose of organization. It shall elect one (1) of its members president,
another vice president, another secretary, and another treasurer. The
members elected to those offices shall perform the duties pertaining to
the offices. The first officers chosen shall serve from the date of their
election until their successors are elected and qualified. A majority of
the commission constitutes a quorum, and the concurrence of a
majority of the commission is necessary to authorize any action.
(h) The commission must also include a member appointed by
the city executive of each city within the county.
SECTION 188. IC 6-9-56-7 IS REPEALED [EFFECTIVE JULY 1,
2026]. Sec. 7. (a) The county treasurer shall deposit in the convention,
visitor, and tourism promotion fund the amount of money received
under section 3 of this chapter that is not more than five percent (5%).
(b) Money in the convention, visitor, and tourism promotion fund
shall be expended only as provided in this chapter.
(c) The commission may transfer money in the convention, visitor,
and tourism promotion fund to any Indiana nonprofit corporation for
the purpose of promotion and encouragement in the county of
conventions, trade shows, visitors, or special events. The commission
may transfer money under this section only after approving the transfer.
The commission may transfer money under this subsection on a
monthly basis or at another frequency as determined by the
commission.
SECTION 189. IC 6-9-56-7.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 7.5. (a) For purposes of this
section, "fund" refers to the convention, visitor, tourism
promotion, and capital fund established under section 4(a)(2) of
this chapter.
(b) The county treasurer shall deposit in the fund the amount of
money received under section 3 of this chapter that is not more
than five percent (5%).
(c) Money in the fund shall be expended only as provided in
section 4(c) of this chapter.
(d) The commission may transfer money in the fund to any
Indiana nonprofit corporation for the purpose of promotion and
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encouragement in the county of conventions, trade shows, visitors,
or special events. The commission may transfer money under this
subsection only after approving the transfer. The commission may
transfer money under this subsection on a monthly basis or at
another frequency as determined by the commission.
(e) The commission must approve any transfer of money from
the fund and may transfer money from the fund to support capital
projects in the county that promote long term tourism, convention,
or recreation projects proposed by any of the following:
(1) The county government.
(2) A separate body corporate and politic in Hamilton County.
(3) Any Indiana nonprofit corporation in Hamilton County.
The commission may transfer money under this subsection on a
monthly basis or at another frequency as determined by the
commission.
(f) The commission may also review and approve proposals
submitted by applicants that seek money from the fund with the
purpose and view of enhancing or providing support for capital
projects that promote long term tourism, convention, or other
economic development related to recreation. Funding available
under this subsection shall be made available on an annual basis.
In determining whether to provide funding to a particular capital
project under this subsection, the commission may use the
following factors as a guide for capital project funding:
(1) The proposed capital project is believed to be economically
sound to the Hamilton County tourism, convention, or
recreation economy and is also believed to be beneficial to:
(A) the general population of Hamilton County; or
(B) a particular location in Hamilton County.
(2) The proposed capital project provides for reasonably
adequate public assembly, gathering, or entertainment space
and is integrally related to enhancing the tourism, convention,
or recreation opportunities in Hamilton County or a
particular location in Hamilton County.
(3) The commission makes a reasonable effort to assess
whether a proposed capital project aligns with the purpose of
the commission and has a direct, indirect, or supportive
relationship to the mission and promotional efforts of the
commission as established and funded by the fund.
Any remaining funds collected that are not awarded during an
application period revert to the fund and may be used for
distribution in a subsequent application period.
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(g) An applicant that receives a grant of money from the fund
under subsection (f):
(1) must agree to provide to the commission proof of project
completion, including proof that the project was completed
through the use of the grant money; and
(2) may be subject to annual financial reporting and audit.
SECTION 190. IC 6-9-56-8 IS REPEALED [EFFECTIVE JULY 1,
2026]. Sec. 8. (a) The county treasurer shall deposit in the tourism
capital fund the amount of money received under section 3 of this
chapter that exceeds five percent (5%). Money deposited in the tourism
capital fund shall be transferred or expended only as provided in this
section.
(b) The commission must approve any transfer of money from the
tourism capital fund and may transfer money from the tourism capital
fund to support capital projects in the county that promote long term
tourism, convention, or recreation projects proposed by any of the
following:
(1) The county government.
(2) A city government.
(3) A separate body corporate and politic in Hamilton County.
(4) Any Indiana nonprofit corporation in Hamilton County.
The commission may transfer money under this subsection on a
monthly basis or at another frequency as determined by the
commission.
(c) The commission may also review and approve proposals
submitted by applicants that seek money from the tourism capital fund
with the purpose and view of enhancing or providing support for
capital projects that promote long term tourism, convention, or other
economic development related to recreation. Funding available under
this subsection shall be made available on an annual basis. In
determining whether to provide funding to a particular capital project
under this subsection, the commission may use the following factors as
a guide for capital project funding:
(1) The proposed capital project is believed to be economically
sound to the Hamilton County tourism, convention, or recreation
economy and is also believed to be beneficial to:
(A) the general population of Hamilton County; or
(B) a particular location in Hamilton County.
(2) The proposed capital project provides for reasonably adequate
public assembly, gathering, or entertainment space and is
integrally related to enhancing the tourism, convention, or
recreation opportunities in Hamilton County or a particular
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location in Hamilton County.
(3) The commission makes a reasonable effort to assess whether
a proposed capital project aligns with the purpose of the
commission and has a direct, indirect, or supportive relationship
to the mission and promotional efforts of the commission as
established and funded by the convention, visitor, and tourism
promotion fund.
A capital project proposed by an applicant that does not meet at least
one (1) of the criteria set forth in this subsection will not be funded,
and any remaining funds collected revert to the tourism capital fund for
distribution by the commission on projects within Hamilton County.
(d) An applicant that receives a grant of money from the tourism
capital fund under subsection (c):
(1) must agree to provide to the commission proof of project
completion, including proof that the project was completed
through the use of the grant money; and
(2) may be subject to annual financial reporting and audit.
SECTION 191. IC 6-9-56-8.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 8.5. (a) The county treasurer shall
transfer the amount of money received under section 3(c)(2) of this
chapter that is generated by a rate that exceeds five percent (5%)
to the fiscal officer of each of the following cities with each city
receiving an equal twenty-five percent (25%) share of the total
amount collected:
(1) Noblesville.
(2) Carmel.
(3) Fishers.
(4) Westfield.
(b) The fiscal officer of each city under subsection (a) shall
establish a municipal tourism capital fund. The fiscal officer shall
deposit in the fund all money received by the city under this
section. The city fiscal body shall administer the fund. The city may
not establish a tourism board or similar entity for any purposes of
the fund and the city fiscal body shall have sole authority regarding
the use of money in the fund as set forth under subsection (c).
(c) Money in the fund may be used only for capital projects for
tourism related purposes as determined by the city fiscal body. The
city fiscal body may issue bonds, enter into leases, or incur other
obligations for the purposes of this subsection.
(d) Money transferred to a city under subsection (a) shall not be
used by the city for tourism marketing, tourism promotion, or
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tourism planning purposes.
SECTION 192. IC 6-9-60-6, AS ADDED BY P.L.230-2025,
SECTION 109, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 6. (a) The county executive shall
create a commission to promote the development and growth of the
convention, visitor, and tourism industry in the county. If two (2) or
more adjoining counties desire to establish a joint commission, the
counties shall enter into an agreement under IC 36-1-7.
(b) The county executive shall determine the number of members,
which must be an odd number, to be appointed to the commission. The
commission must also include any additional members appointed
under subsection (h). Each of the members must be:
(1) engaged in a convention, visitor, or tourism business; or
(2) involved in or promoting conventions, visitors, or tourism.
A member who is an owner or an executive level employee of a
convention, visitor, or tourism related business located in the county is
not required to reside in the county but must reside in Indiana. A
member who is not an owner or an executive level employee of a
convention, visitor, or tourism related business located in the county
must reside in the county. If available and willing to serve, at least two
(2) of the members must be engaged in the business of renting or
furnishing rooms, lodging, or accommodations (as described in section
3 of this chapter). The county executive shall also determine who will
make the appointments to the commission.
(c) All terms of office of commission members begin on January 1.
Initial appointments must be for staggered terms, with subsequent
appointments for three (3) year terms. A member whose term expires
may be reappointed to serve another term. If a vacancy occurs, the
appointing authority shall appoint a qualified person to serve for the
remainder of the term. If an initial appointment is not made by
February 1 or a vacancy is not filled within thirty (30) days, the
commission shall appoint a member by majority vote.
(d) A member of the commission may be removed for cause by the
member's appointing authority.
(e) Members of the commission may not receive a salary. However,
commission members are entitled to reimbursement for necessary
expenses incurred in the performance of their respective duties.
(f) Each commission member, before entering the member's duties,
shall take an oath of office in the usual form, to be endorsed upon the
member's certificate of appointment and promptly filed with the clerk
of the circuit court of the county.
(g) The commission shall meet after January 1 each year for the
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purpose of organization. It shall elect one (1) of its members president,
another vice president, another secretary, and another treasurer. The
members elected to those offices shall perform the duties pertaining to
the offices. The first officers chosen shall serve from the date of their
election until their successors are elected and qualified. A majority of
the commission constitutes a quorum, and the concurrence of a
majority of the commission is necessary to authorize any action.
(h) The commission must also include a member appointed by
the city executive of each city within the county.
SECTION 193. IC 6-9-74-6, AS ADDED BY P.L.230-2025,
SECTION 123, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 6. (a) The county executive shall
create a commission to promote the development and growth of the
convention, visitor, and tourism industry in the county. If two (2) or
more adjoining counties desire to establish a joint commission, the
counties shall enter into an agreement under IC 36-1-7.
(b) The county executive shall determine the number of members,
which must be an odd number, to be appointed to the commission. The
commission must also include any additional members appointed
under subsection (h). A simple majority of the members must be:
(1) engaged in a convention, visitor, or tourism business; or
(2) involved in or promoting conventions, visitors, or tourism.
A member appointed to the commission under subdivision (1) or (2)
need not be a resident of the county if the member is an owner or an
executive level employee of a convention, visitor, or tourism business
that is located within the county. However, the member must be a
resident of Indiana. If available and willing to serve, at least two (2) of
the members must be engaged in the business of renting or furnishing
rooms, lodging, or accommodations (as described in section 3 of this
chapter). Not more than one (1) member may be affiliated with the
same business entity. Except as otherwise provided in this subsection,
each member must reside in the county. The county executive shall
also determine who will make the appointments to the commission,
except that the executive of the largest municipality in the county shall
appoint a number of the members of the commission, which number
shall be in the same ratio to the total size of the commission (rounded
off to the nearest whole number) that the population of the largest
municipality bears to the total population of the county.
(c) All terms of office of commission members begin on January 1.
Initial appointments must be for staggered terms, with subsequent
appointments for two (2) year terms. A member whose term expires
may be reappointed to serve another term. If a vacancy occurs, the
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appointing authority shall appoint a qualified person to serve for the
remainder of the term. If an initial appointment is not made by
February 1 or a vacancy is not filled within thirty (30) days, the
commission shall appoint a member by majority vote.
(d) A member of the commission may be removed for cause by the
member's appointing authority.
(e) Members of the commission may not receive a salary. However,
commission members are entitled to reimbursement for necessary
expenses incurred in the performance of their respective duties.
(f) Each commission member, before entering the member's duties,
shall take an oath of office in the usual form, to be endorsed upon the
member's certificate of appointment and promptly filed with the clerk
of the circuit court of the county.
(g) The commission shall meet after January 1 each year for the
purpose of organization. It shall elect one (1) of its members president,
another vice president, another secretary, and another treasurer. The
members elected to those offices shall perform the duties pertaining to
the offices. The first officers chosen shall serve from the date of their
election until their successors are elected and qualified. A majority of
the commission constitutes a quorum, and the concurrence of a
majority of the commission is necessary to authorize any action.
(h) The commission must also include a member appointed by
the city executive of each city within the county (other than a city
described in subsection (b)).
SECTION 194. IC 6-9-75-6, AS ADDED BY P.L.230-2025,
SECTION 124, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 6. (a) The county executive shall
create a commission to promote the development and growth of the
convention, visitor, and tourism industry in the county. If two (2) or
more adjoining counties desire to establish a joint commission, the
counties shall enter into an agreement under IC 36-1-7.
(b) The county executive shall determine the number of members,
which must be an odd number, to be appointed to the commission. The
commission must also include any additional members appointed
under subsection (h). Each of the members must be:
(1) engaged in a convention, visitor, or tourism business; or
(2) involved in or promoting conventions, visitors, or tourism.
A member who is an owner or an executive level employee of a
convention, visitor, or tourism related business located in the county is
not required to reside in the county but must reside in Indiana. A
member who is not an owner or an executive level employee of a
convention, visitor, or tourism related business located in the county
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must reside in the county. If available and willing to serve, at least two
(2) of the members must be engaged in the business of renting or
furnishing rooms, lodging, or accommodations (as described in section
3 of this chapter). The county executive shall also determine who will
make the appointments to the commission.
(c) All terms of office of commission members begin on January 1.
Initial appointments must be for staggered terms, with subsequent
appointments for three (3) year terms. A member whose term expires
may be reappointed to serve another term. If a vacancy occurs, the
appointing authority shall appoint a qualified person to serve for the
remainder of the term. If an initial appointment is not made by
February 1 or a vacancy is not filled within thirty (30) days, the
commission shall appoint a member by majority vote.
(d) A member of the commission may be removed for cause by the
member's appointing authority.
(e) Members of the commission may not receive a salary. However,
commission members are entitled to reimbursement for necessary
expenses incurred in the performance of their respective duties.
(f) Each commission member, before entering the member's duties,
shall take an oath of office in the usual form, to be endorsed upon the
member's certificate of appointment and promptly filed with the clerk
of the circuit court of the county.
(g) The commission shall meet after January 1 each year for the
purpose of organization. It shall elect one (1) of its members president,
another vice president, another secretary, and another treasurer. The
members elected to those offices shall perform the duties pertaining to
the offices. The first officers chosen shall serve from the date of their
election until their successors are elected and qualified. A majority of
the commission constitutes a quorum, and the concurrence of a
majority of the commission is necessary to authorize any action.
(h) The commission must also include a member appointed by
the city executive of each city within the county.
SECTION 195. IC 6-9-76-7, AS ADDED BY P.L.230-2025,
SECTION 125, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 7. (a) The county executive shall
create a commission to promote the development and growth of the
convention, visitor, and tourism industry in the county. If two (2) or
more adjoining counties desire to establish a joint commission, the
counties shall enter into an agreement under IC 36-1-7.
(b) The county executive shall determine the number of members,
which must be an odd number, to be appointed to the commission. The
commission must also include any additional members appointed
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under subsection (h). Each of the members must be:
(1) engaged in a convention, visitor, or tourism business; or
(2) involved in or promoting conventions, visitors, or tourism.
A member who is an owner or an executive level employee of a
convention, visitor, or tourism related business located in the county is
not required to reside in the county but must reside in Indiana. A
member who is not an owner or an executive level employee of a
convention, visitor, or tourism related business located in the county
must reside in the county. If available and willing to serve, at least two
(2) of the members must be engaged in the business of renting or
furnishing rooms, lodging, or accommodations (as described in section
3 of this chapter). The county executive shall also determine who will
make the appointments to the commission.
(c) All terms of office of commission members begin on January 1.
Initial appointments must be for staggered terms, with subsequent
appointments for three (3) year terms. A member whose term expires
may be reappointed to serve another term. If a vacancy occurs, the
appointing authority shall appoint a qualified person to serve for the
remainder of the term. If an initial appointment is not made by
February 1 or a vacancy is not filled within thirty (30) days, the
commission shall appoint a member by majority vote.
(d) A member of the commission may be removed for cause by the
member's appointing authority.
(e) Members of the commission may not receive a salary. However,
commission members are entitled to reimbursement for necessary
expenses incurred in the performance of their respective duties.
(f) Each commission member, before entering the member's duties,
shall take an oath of office in the usual form, to be endorsed upon the
member's certificate of appointment and promptly filed with the clerk
of the circuit court of the county.
(g) The commission shall meet after January 1 each year for the
purpose of organization. It shall elect one (1) of its members president,
another vice president, another secretary, and another treasurer. The
members elected to those offices shall perform the duties pertaining to
the offices. The first officers chosen shall serve from the date of their
election until their successors are elected and qualified. A majority of
the commission constitutes a quorum, and the concurrence of a
majority of the commission is necessary to authorize any action.
(h) The commission must also include a member appointed by
the city executive of each city within the county.
SECTION 196. IC 6-9-78.1 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
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JULY 1, 2026]:
Chapter 78.1. Lagro Food and Beverage Tax
Sec. 1. This chapter applies to the town of Lagro.
Sec. 2. The definitions in IC 6-9-12-1 apply throughout this
chapter.
Sec. 3. (a) The fiscal body of the town may adopt an ordinance
to impose an excise tax, known as the town food and beverage tax,
on transactions described in section 4 of this chapter. The fiscal
body of the town may adopt an ordinance under this subsection
only after the town fiscal body has previously:
(1) adopted a resolution in support of the proposed town food
and beverage tax; and
(2) held at least one (1) separate public hearing in which a
discussion of the proposed ordinance to impose the town food
and beverage tax is the only substantive issue on the agenda
for the public hearing.
(b) If the town fiscal body adopts an ordinance under subsection
(a), the town fiscal body shall immediately send a certified copy of
the ordinance to the department of state revenue.
(c) If the town fiscal body adopts an ordinance under subsection
(a), the town food and beverage tax applies to transactions that
occur after the last day of the month following the month in which
the ordinance is adopted.
Sec. 4. (a) Except as provided in subsection (c), a tax imposed
under section 3 of this chapter applies to a transaction in which
food or beverage is furnished, prepared, or served:
(1) for consumption at a location or on equipment provided by
a retail merchant;
(2) in the town; and
(3) by a retail merchant for consideration.
(b) Transactions described in subsection (a)(1) include
transactions in which food or beverage is:
(1) served by a retail merchant off the merchant's premises;
(2) food sold in a heated state or heated by a retail merchant;
(3) made of two (2) or more food ingredients, mixed or
combined by a retail merchant for sale as a single item (other
than food that is only cut, repackaged, or pasteurized by the
seller, and eggs, fish, meat, poultry, and foods containing these
raw animal foods requiring cooking by the consumer as
recommended by the federal Food and Drug Administration
in chapter 3, subpart 3-401.11 of its Food Code so as to
prevent food borne illnesses); or
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(4) food sold with eating utensils provided by a retail
merchant, including plates, knives, forks, spoons, glasses,
cups, napkins, or straws (for purposes of this subdivision, a
plate does not include a container or package used to
transport the food).
(c) The town food and beverage tax does not apply to the
furnishing, preparing, or serving of a food or beverage in a
transaction that is exempt, or to the extent the transaction is
exempt, from the state gross retail tax imposed by IC 6-2.5.
Sec. 5. The town food and beverage tax rate:
(1) must be imposed in an increment of twenty-five
hundredths percent (0.25%); and
(2) may not exceed one percent (1%);
of the gross retail income received by the merchant from the food
or beverage transaction described in section 4 of this chapter. For
purposes of this chapter, the gross retail income received by the
retail merchant from a transaction does not include the amount of
tax imposed on the transaction under IC 6-2.5.
Sec. 6. A tax imposed under this chapter shall be imposed, paid,
and collected in the same manner that the state gross retail tax is
imposed, paid, and collected under IC 6-2.5. However, the return
to be filed with the payment of the tax imposed under this chapter
may be made on a separate return or may be combined with the
return filed for the payment of the state gross retail tax, as
prescribed by the department of state revenue.
Sec. 7. The amounts received from the tax imposed under this
chapter shall be paid monthly by the treasurer of state to the town
fiscal officer upon warrants issued by the state comptroller.
Sec. 8. (a) If a tax is imposed under section 3 of this chapter by
the town, the town fiscal officer shall establish a food and beverage
tax receipts fund.
(b) The town fiscal officer shall deposit in the fund all amounts
received under this chapter.
(c) Money earned from the investment of money in the fund
becomes a part of the fund.
Sec. 9. Money in the food and beverage tax receipts fund must
be used by the town only for the following purposes:
(1) For economic development purposes, including the pledge
of money under IC 5-1-14-4 for bonds, leases, or other
obligations for economic development purposes.
(2) For park and recreation purposes, including the purchase
of land for park and recreation purposes.
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(3) The pledge of money under IC 5-1-14-4 for bonds, leases,
or other obligations incurred for a purpose described in
subdivision (2).
Sec. 10. With respect to obligations for which a pledge has been
made under section 9 of this chapter, the general assembly
covenants with the holders of the obligations that this chapter will
not be repealed or amended in a manner that will adversely affect
the imposition or collection of the tax imposed under this chapter
if the payment of any of the obligations is outstanding.
Sec. 11. (a) If the town imposes the tax authorized by this
chapter, the tax terminates on January 1, 2049.
(b) This chapter expires January 1, 2049.
SECTION 197. IC 6-9-78.2 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]:
Chapter 78.2. Rush County Food and Beverage Tax
Sec. 1. This chapter applies to Rush County.
Sec. 2. The definitions in IC 6-9-12-1 apply throughout this
chapter.
Sec. 3. (a) The fiscal body of the county may adopt an ordinance
on or before December 31, 2026, to impose an excise tax, known as
the county food and beverage tax, on transactions described in
section 4 of this chapter. The fiscal body of the county may adopt
an ordinance under this subsection only after the county fiscal
body has previously held at least one (1) separate public hearing in
which a discussion of the proposed ordinance to impose the county
food and beverage tax is the only substantive issue on the agenda
for the public hearing.
(b) If the county fiscal body adopts an ordinance under
subsection (a), the county fiscal body shall immediately send a
certified copy of the ordinance to the department of state revenue.
(c) If the county fiscal body adopts an ordinance under
subsection (a), the county food and beverage tax applies to
transactions that occur after the later of the following:
(1) The day specified in the ordinance.
(2) The last day of the month that succeeds the month in
which the ordinance is adopted.
Sec. 4. (a) Except as provided in subsection (c), a tax imposed
under section 3 of this chapter applies to a transaction in which
food or beverage is furnished, prepared, or served:
(1) for consumption at a location or on equipment provided by
a retail merchant;
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(2) in the county in which the tax is imposed; and
(3) by a retail merchant for consideration.
(b) Transactions described in subsection (a)(1) include
transactions in which food or beverage is:
(1) served by a retail merchant off the merchant's premises;
(2) sold in a heated state or heated by a retail merchant;
(3) made of two (2) or more food ingredients, mixed or
combined by a retail merchant for sale as a single item (other
than food that is only cut, repackaged, or pasteurized by the
seller, and eggs, fish, meat, poultry, and foods containing these
raw animal foods requiring cooking by the consumer as
recommended by the federal Food and Drug Administration
in chapter 3, subpart 3-401.11 of its Food Code so as to
prevent food borne illnesses); or
(4) sold with eating utensils provided by a retail merchant,
including plates, knives, forks, spoons, glasses, cups, napkins,
or straws (for purposes of this subdivision, a plate does not
include a container or package used to transport food).
(c) The county food and beverage tax does not apply to the
furnishing, preparing, or serving of a food or beverage in a
transaction that is exempt, or to the extent the transaction is
exempt, from the state gross retail tax imposed by IC 6-2.5.
Sec. 5. The county food and beverage tax rate:
(1) must be imposed in an increment of twenty-five
hundredths percent (0.25%); and
(2) may not exceed one percent (1%);
of the gross retail income received by the merchant from the food
or beverage transaction described in section 4 of this chapter. For
purposes of this chapter, the gross retail income received by the
retail merchant from a transaction does not include the amount of
tax imposed on the transaction under IC 6-2.5.
Sec. 6. A tax imposed under this chapter is imposed, paid, and
collected in the same manner that the state gross retail tax is
imposed, paid, and collected under IC 6-2.5. However, the return
to be filed with the payment of the tax imposed under this chapter
may be made on a separate return or may be combined with the
return filed for the payment of the state gross retail tax, as
prescribed by the department of state revenue.
Sec. 7. The amounts received from the tax imposed under this
chapter shall be paid monthly by the treasurer of state to the
county fiscal officer upon warrants issued by the state comptroller.
Sec. 8. (a) If a tax is imposed under section 3 of this chapter by
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the county, the county fiscal officer shall establish a food and
beverage tax receipts fund.
(b) The county fiscal officer shall deposit in the fund all amounts
received under this chapter.
(c) Money earned from the investment of money in the fund
becomes a part of the fund.
Sec. 9. Money in the food and beverage tax receipts fund must
be used by the county only for the following purposes:
(1) Economic development and tourism related purposes or
facilities, including the purchase of land for economic
development or tourism related purposes.
(2) The pledge of money under IC 5-1-14-4 for bonds, leases,
or other obligations incurred for a purpose described in
subdivision (1).
Revenue derived from the imposition of a tax under this chapter
may be treated by the county as additional revenue for the purpose
of fixing its budget for the budget year during which the revenues
are to be distributed to the county.
Sec. 10. With respect to obligations for which a pledge has been
made under section 9 of this chapter, the general assembly
covenants with the holders of the obligations that this chapter will
not be repealed or amended in a manner that will adversely affect
the imposition or collection of the tax imposed under this chapter
if the payment of any of the obligations is outstanding.
Sec. 11. (a) If the county imposes the tax authorized by this
chapter, the tax terminates on January 1, 2049.
(b) This chapter expires January 1, 2049.
SECTION 198. IC 6-9-78.3 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]:
Chapter 78.3. Greendale Food and Beverage Tax
Sec. 1. This chapter applies to the city of Greendale.
Sec. 2. The definitions in IC 6-9-12-1 apply throughout this
chapter.
Sec. 3. (a) The fiscal body of the city may adopt an ordinance to
impose an excise tax, known as the city food and beverage tax, on
transactions described in section 4 of this chapter. The fiscal body
of the city may adopt an ordinance under this subsection only after
the city fiscal body has previously:
(1) adopted a resolution in support of the proposed city food
and beverage tax; and
(2) held at least one (1) separate public hearing in which a
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discussion of the proposed ordinance to impose the city food
and beverage tax is the only substantive issue on the agenda
for the public hearing.
(b) If the city fiscal body adopts an ordinance under subsection
(a), the city fiscal body shall immediately send a certified copy of
the ordinance to the department of state revenue.
(c) If the city fiscal body adopts an ordinance under subsection
(a), the city food and beverage tax applies to transactions that
occur after the last day of the month following the month in which
the ordinance is adopted.
Sec. 4. (a) Except as provided in subsection (c), a tax imposed
under section 3 of this chapter applies to a transaction in which
food or beverage is furnished, prepared, or served:
(1) for consumption at a location or on equipment provided by
a retail merchant;
(2) in the city; and
(3) by a retail merchant for consideration.
(b) Transactions described in subsection (a)(1) include
transactions in which food or beverage is:
(1) served by a retail merchant off the merchant's premises;
(2) sold in a heated state or heated by a retail merchant;
(3) made of two (2) or more food ingredients, mixed or
combined by a retail merchant for sale as a single item (other
than food that is only cut, repackaged, or pasteurized by the
seller, and eggs, fish, meat, poultry, and foods containing these
raw animal foods requiring cooking by the consumer as
recommended by the federal Food and Drug Administration
in chapter 3, subpart 3-401.11 of its Food Code so as to
prevent food borne illnesses); or
(4) sold with eating utensils provided by a retail merchant,
including plates, knives, forks, spoons, glasses, cups, napkins,
or straws (for purposes of this subdivision, a plate does not
include a container or package used to transport the food).
(c) The city food and beverage tax does not apply to the
furnishing, preparing, or serving of a food or beverage in a
transaction that is exempt, or to the extent the transaction is
exempt, from the state gross retail tax imposed by IC 6-2.5.
Sec. 5. The city food and beverage tax rate:
(1) must be imposed in an increment of twenty-five
hundredths percent (0.25%); and
(2) may not exceed one percent (1%);
of the gross retail income received by the merchant from the food
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or beverage transaction described in section 4 of this chapter. For
purposes of this chapter, the gross retail income received by the
retail merchant from a transaction does not include the amount of
tax imposed on the transaction under IC 6-2.5.
Sec. 6. A tax imposed under this chapter shall be imposed, paid,
and collected in the same manner that the state gross retail tax is
imposed, paid, and collected under IC 6-2.5. However, the return
to be filed with the payment of the tax imposed under this chapter
may be made on a separate return or may be combined with the
return filed for the payment of the state gross retail tax, as
prescribed by the department of state revenue.
Sec. 7. The amounts received from the tax imposed under this
chapter shall be paid monthly by the treasurer of state to the city
fiscal officer upon warrants issued by the state comptroller.
Sec. 8. (a) If a tax is imposed under section 3 of this chapter by
the city, the city fiscal officer shall establish a food and beverage
tax receipts fund.
(b) The city fiscal officer shall deposit in the fund all amounts
received under this chapter.
(c) Money earned from the investment of money in the fund
becomes a part of the fund.
Sec. 9. Money in the food and beverage tax receipts fund must
be used by the city only for the following purposes:
(1) Park and recreation purposes, including the purchase of
land for park and recreation purposes.
(2) Economic development and tourism related purposes or
facilities, including the purchase of land for economic
development or tourism related purposes.
(3) The pledge of money under IC 5-1-14-4 for bonds, leases,
or other obligations incurred for a purpose described in
subdivisions (1) and (2).
Sec. 10. With respect to obligations for which a pledge has been
made under section 9 of this chapter, the general assembly
covenants with the holders of the obligations that this chapter will
not be repealed or amended in a manner that will adversely affect
the imposition or collection of the tax imposed under this chapter
if the payment of any of the obligations is outstanding.
Sec. 11. (a) If the city imposes the tax authorized by this chapter,
the tax terminates on January 1, 2049.
(b) This chapter expires January 1, 2049.
SECTION 199. IC 6-9-78.4 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
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JULY 1, 2026]:
Chapter 78.4. Huntington Food and Beverage Tax
Sec. 1. This chapter applies to one (1) but not both:
(1) Huntington County; or
(2) the city of Huntington.
If Huntington County is the first to adopt an ordinance under
section 3 of this chapter to impose a food and beverage tax, the city
of Huntington is thereafter prohibited from imposing a food and
beverage tax under this chapter. If the city of Huntington is the
first to adopt an ordinance under section 3 of this chapter to
impose a food and beverage tax, Huntington County is thereafter
prohibited from imposing a food and beverage tax under this
chapter.
Sec. 2. (a) The definitions in IC 6-9-12-1 apply throughout this
chapter.
(b) For purposes of this chapter, "adopting body" means either
Huntington County or the city of Huntington, whichever is first to
adopt a food and beverage tax under this chapter.
Sec. 3. (a) The fiscal body of the adopting body may adopt an
ordinance to impose an excise tax, known as a food and beverage
tax, on transactions described in section 4 of this chapter. The
fiscal body of the adopting body may adopt an ordinance under
this subsection only after the fiscal body of the adopting body has
previously:
(1) adopted a resolution in support of the proposed food and
beverage tax; and
(2) held at least one (1) separate public hearing in which a
discussion of the proposed ordinance to impose the food and
beverage tax is the only substantive issue on the agenda for
the public hearing.
(b) If the fiscal body of the adopting body adopts an ordinance
under subsection (a), the fiscal body shall immediately send a
certified copy of the ordinance to the department of state revenue.
(c) If the fiscal body of the adopting body adopts an ordinance
under subsection (a), the food and beverage tax applies to
transactions that occur after the last day of the month following
the month in which the ordinance is adopted.
Sec. 4. (a) Except as provided in subsection (c), a tax imposed
under section 3 of this chapter applies to a transaction in which
food or beverage is furnished, prepared, or served:
(1) for consumption at a location or on equipment provided by
a retail merchant;
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(2) in the boundary of the adopting body; and
(3) by a retail merchant for consideration.
(b) Transactions described in subsection (a)(1) include
transactions in which food or beverage is:
(1) served by a retail merchant off the merchant's premises;
(2) food sold in a heated state or heated by a retail merchant;
(3) made of two (2) or more food ingredients, mixed or
combined by a retail merchant for sale as a single item (other
than food that is only cut, repackaged, or pasteurized by the
seller, and eggs, fish, meat, poultry, and foods containing these
raw animal foods requiring cooking by the consumer as
recommended by the federal Food and Drug Administration
in chapter 3, subpart 3-401.11 of its Food Code so as to
prevent food borne illnesses); or
(4) food sold with eating utensils provided by a retail
merchant, including plates, knives, forks, spoons, glasses,
cups, napkins, or straws (for purposes of this subdivision, a
plate does not include a container or package used to
transport the food).
(c) The food and beverage tax does not apply to the furnishing,
preparing, or serving of a food or beverage in a transaction that is
exempt, or to the extent the transaction is exempt, from the state
gross retail tax imposed by IC 6-2.5.
Sec. 5. The food and beverage tax rate:
(1) must be imposed in an increment of twenty-five
hundredths percent (0.25%); and
(2) may not exceed one percent (1%);
of the gross retail income received by the merchant from the food
or beverage transaction described in section 4 of this chapter. For
purposes of this chapter, the gross retail income received by the
retail merchant from a transaction does not include the amount of
tax imposed on the transaction under IC 6-2.5.
Sec. 6. A tax imposed under this chapter shall be imposed, paid,
and collected in the same manner that the state gross retail tax is
imposed, paid, and collected under IC 6-2.5. However, the return
to be filed with the payment of the tax imposed under this chapter
may be made on a separate return or may be combined with the
return filed for the payment of the state gross retail tax, as
prescribed by the department of state revenue.
Sec. 7. The amounts received from the tax imposed under this
chapter shall be paid monthly by the treasurer of state to the fiscal
body of the adopting body upon warrants issued by the state
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comptroller.
Sec. 8. (a) If a tax is imposed under section 3 of this chapter by
the adopting body, the fiscal body of the adopting body shall
establish a food and beverage tax receipts fund.
(b) The fiscal body of the adopting body shall deposit in the fund
all amounts received under this chapter.
(c) Money earned from the investment of money in the fund
becomes a part of the fund.
Sec. 9. Money in the food and beverage tax receipts fund must
be used by the adopting body only for the following purposes:
(1) For economic development purposes, including the pledge
of money under IC 5-1-14-4 for bonds, leases, or other
obligations for economic development purposes.
(2) For park and recreation purposes, including the purchase
of land for park and recreation purposes.
(3) The pledge of money under IC 5-1-14-4 for bonds, leases,
or other obligations incurred for a purpose described in
subdivision (2).
Sec. 10. With respect to obligations for which a pledge has been
made under section 9 of this chapter, the general assembly
covenants with the holders of the obligations that this chapter will
not be repealed or amended in a manner that will adversely affect
the imposition or collection of the tax imposed under this chapter
if the payment of any of the obligations is outstanding.
Sec. 11. (a) If the adopting body imposes the tax authorized by
this chapter, the tax terminates on January 1, 2049.
(b) This chapter expires January 1, 2049.
SECTION 200. IC 8-22-3.5-9, AS AMENDED BY P.L.174-2022,
SECTION 50, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 9. (a) As used in this section, "base assessed
value" means, subject to subsection (k):
(1) the net assessed value of all the tangible property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the commission's
resolution adopted under section 5 or 9.5 of this chapter,
notwithstanding the date of the final action taken under section 6
of this chapter; plus
(2) to the extent it is not included in subdivision (1), the net
assessed value of property that is assessed as residential property
under the rules of the department of local government finance,
within the airport development zone, as finally determined for the
current assessment date.
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However, subdivision (2) applies only to an airport development zone
established after June 30, 1997, and the portion of an airport
development zone established before June 30, 1997, that is added to an
existing airport development zone.
(b) A resolution adopted under section 5 of this chapter and
confirmed under section 6 of this chapter must include a provision with
respect to the allocation and distribution of property taxes for the
purposes and in the manner provided in this section.
(c) The allocation provision must:
(1) apply to the entire airport development zone; and
(2) require that any property tax on taxable tangible property
subsequently levied by or for the benefit of any public body
entitled to a distribution of property taxes in the airport
development zone be allocated and distributed as provided in
subsections (d) and (e).
(d) Except as otherwise provided in this section:
(1) the proceeds of the taxes attributable to the lesser of:
(A) the assessed value of the tangible property for the
assessment date with respect to which the allocation and
distribution is made; or
(B) the base assessed value;
shall be allocated and, when collected, paid into the funds of the
respective taxing units; and
(2) the excess of the proceeds of the property taxes imposed for
the assessment date with respect to which the allocation and
distribution are made that are attributable to taxes imposed after
being approved by the voters in a referendum or local public
question conducted after April 30, 2010, not otherwise included
in subdivision (1) shall be allocated to and, when collected, paid
into the funds of the taxing unit for which the referendum or local
public question was conducted.
(e) All of the property tax proceeds in excess of those described in
subsection (d) shall be allocated to the eligible entity for the airport
development zone and, when collected, paid into special funds as
follows:
(1) The commission may determine that a portion of tax proceeds
shall be allocated to a training grant fund to be expended by the
commission without appropriation solely for the purpose of
reimbursing training expenses incurred by public or private
entities in the training of employees for the qualified airport
development project.
(2) The commission may determine that a portion of tax proceeds
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shall be allocated to a debt service fund and dedicated to the
payment of principal and interest on revenue bonds or a loan
contract of the board of aviation commissioners or airport
authority for a qualified airport development project, to the
payment of leases for a qualified airport development project, or
to the payment of principal and interest on bonds issued by an
eligible entity to pay for qualified airport development projects in
the airport development zone or serving the airport development
zone.
(3) The commission may determine that a part of the tax proceeds
shall be allocated to a project fund and used to pay expenses
incurred by the commission for a qualified airport development
project that is in the airport development zone or is serving the
airport development zone.
(4) Except as provided in subsection (f), all remaining tax
proceeds after allocations are made under subdivisions (1), (2),
and (3) shall be allocated to a project fund and dedicated to the
reimbursement of expenditures made by the commission for a
qualified airport development project that is in the airport
development zone or is serving the airport development zone.
(f) Before July 15 of each year, the commission shall do the
following:
(1) Determine the amount, if any, by which tax proceeds allocated
to the project fund in subsection (e)(3) in the following year will
exceed the amount necessary to satisfy amounts required under
subsection (e).
(2) Provide a written notice to the county auditor and the officers
who are authorized to fix budgets, tax rates, and tax levies under
IC 6-1.1-17-5 for each of the other taxing units that is wholly or
partly located within the allocation area. The notice must:
(A) state the amount, if any, of excess tax proceeds that the
commission has determined may be allocated to the respective
taxing units in the manner prescribed in subsection (d)(1); or
(B) state that the commission has determined that there are no
excess tax proceeds that may be allocated to the respective
taxing units in the manner prescribed in subsection (d)(1).
The county auditor shall allocate to the respective taxing units the
amount, if any, of excess tax proceeds determined by the
commission.
(g) When money in the debt service fund and in the project fund is
sufficient to pay all outstanding principal and interest (to the earliest
date on which the obligations can be redeemed) on revenue bonds
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issued by the board of aviation commissioners or airport authority for
the financing of qualified airport development projects, all lease rentals
payable on leases of qualified airport development projects, and all
costs and expenditures associated with all qualified airport
development projects, money in the debt service fund and in the project
fund in excess of those amounts shall be paid to the respective taxing
units in the manner prescribed by subsection (d)(1).
(h) Property tax proceeds allocable to the debt service fund under
subsection (e)(2) must, subject to subsection (g), be irrevocably
pledged by the eligible entity for the purpose set forth in subsection
(e)(2).
(i) Notwithstanding any other law, each assessor shall, upon petition
of the commission, reassess the taxable tangible property situated upon
or in, or added to, the airport development zone effective on the next
assessment date after the petition.
(j) Notwithstanding any other law, the assessed value of all taxable
tangible property in the airport development zone, for purposes of tax
limitation, property tax replacement, and formulation of the budget, tax
rate, and tax levy for each political subdivision in which the property
is located is the lesser of:
(1) the assessed value of the tangible property as valued without
regard to this section; or
(2) the base assessed value.
(k) If the commission confirms, or modifies and confirms, a
resolution under section 6 of this chapter and the commission makes
either of the filings required under section 6(c) of this chapter after the
first anniversary of the effective date of the allocation provision, the
auditor of the county in which the airport development zone is located
shall compute the base assessed value for the allocation area using the
assessment date immediately preceding the later of:
(1) the date on which the documents are filed with the county
auditor; or
(2) the date on which the documents are filed with the department
of local government finance.
(l) For an airport development zone established after June 30, 2024,
"residential property" refers to the assessed value of property that is
allocated to the one percent (1%) homestead land and improvement
categories in the county tax and billing software system. along with the
residential assessed value as defined for purposes of calculating the
rate for the local income tax property tax relief credit designated for
residential property under IC 6-3.6-5-6(d)(3).
SECTION 201. IC 8-22-3.5-9, AS AMENDED BY P.L.68-2025,
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SECTION 196, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2027]: Sec. 9. (a) As used in this section, "base
assessed value" means, subject to subsection (k):
(1) the net assessed value of all the tangible property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the commission's
resolution adopted under section 5 or 9.5 of this chapter,
notwithstanding the date of the final action taken under section 6
of this chapter; plus
(2) to the extent it is not included in subdivision (1), the net
assessed value of property that is assessed as residential property
under the rules of the department of local government finance,
within the airport development zone, as finally determined for the
current assessment date.
However, subdivision (2) applies only to an airport development zone
established after June 30, 1997, and the portion of an airport
development zone established before June 30, 1997, that is added to an
existing airport development zone.
(b) A resolution adopted under section 5 of this chapter and
confirmed under section 6 of this chapter must include a provision with
respect to the allocation and distribution of property taxes for the
purposes and in the manner provided in this section.
(c) The allocation provision must:
(1) apply to the entire airport development zone; and
(2) require that any property tax on taxable tangible property
subsequently levied by or for the benefit of any public body
entitled to a distribution of property taxes in the airport
development zone be allocated and distributed as provided in
subsections (d) and (e).
(d) Except as otherwise provided in this section:
(1) the proceeds of the taxes attributable to the lesser of:
(A) the assessed value of the tangible property for the
assessment date with respect to which the allocation and
distribution is made; or
(B) the base assessed value;
shall be allocated and, when collected, paid into the funds of the
respective taxing units; and
(2) the excess of the proceeds of the property taxes imposed for
the assessment date with respect to which the allocation and
distribution are made that are attributable to taxes imposed after
being approved by the voters in a referendum or local public
question conducted after April 30, 2010, not otherwise included
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in subdivision (1) shall be allocated to and, when collected, paid
into the funds of the taxing unit for which the referendum or local
public question was conducted.
(e) All of the property tax proceeds in excess of those described in
subsection (d) shall be allocated to the eligible entity for the airport
development zone and, when collected, paid into special funds as
follows:
(1) The commission may determine that a portion of tax proceeds
shall be allocated to a training grant fund to be expended by the
commission without appropriation solely for the purpose of
reimbursing training expenses incurred by public or private
entities in the training of employees for the qualified airport
development project.
(2) The commission may determine that a portion of tax proceeds
shall be allocated to a debt service fund and dedicated to the
payment of principal and interest on revenue bonds or a loan
contract of the board of aviation commissioners or airport
authority for a qualified airport development project, to the
payment of leases for a qualified airport development project, or
to the payment of principal and interest on bonds issued by an
eligible entity to pay for qualified airport development projects in
the airport development zone or serving the airport development
zone.
(3) The commission may determine that a part of the tax proceeds
shall be allocated to a project fund and used to pay expenses
incurred by the commission for a qualified airport development
project that is in the airport development zone or is serving the
airport development zone.
(4) Except as provided in subsection (f), all remaining tax
proceeds after allocations are made under subdivisions (1), (2),
and (3) shall be allocated to a project fund and dedicated to the
reimbursement of expenditures made by the commission for a
qualified airport development project that is in the airport
development zone or is serving the airport development zone.
(f) Before July 15 of each year, the commission shall do the
following:
(1) Determine the amount, if any, by which tax proceeds allocated
to the project fund in subsection (e)(3) in the following year will
exceed the amount necessary to satisfy amounts required under
subsection (e).
(2) Provide a written notice to the county auditor and the officers
who are authorized to fix budgets, tax rates, and tax levies under
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IC 6-1.1-17-5 for each of the other taxing units that is wholly or
partly located within the allocation area. The notice must:
(A) state the amount, if any, of excess tax proceeds that the
commission has determined may be allocated to the respective
taxing units in the manner prescribed in subsection (d)(1); or
(B) state that the commission has determined that there are no
excess tax proceeds that may be allocated to the respective
taxing units in the manner prescribed in subsection (d)(1).
The county auditor shall allocate to the respective taxing units the
amount, if any, of excess tax proceeds determined by the
commission.
(g) When money in the debt service fund and in the project fund is
sufficient to pay all outstanding principal and interest (to the earliest
date on which the obligations can be redeemed) on revenue bonds
issued by the board of aviation commissioners or airport authority for
the financing of qualified airport development projects, all lease rentals
payable on leases of qualified airport development projects, and all
costs and expenditures associated with all qualified airport
development projects, money in the debt service fund and in the project
fund in excess of those amounts shall be paid to the respective taxing
units in the manner prescribed by subsection (d)(1).
(h) Property tax proceeds allocable to the debt service fund under
subsection (e)(2) must, subject to subsection (g), be irrevocably
pledged by the eligible entity for the purpose set forth in subsection
(e)(2).
(i) Notwithstanding any other law, each assessor shall, upon petition
of the commission, reassess the taxable tangible property situated upon
or in, or added to, the airport development zone effective on the next
assessment date after the petition.
(j) Notwithstanding any other law, the assessed value of all taxable
tangible property in the airport development zone, for purposes of tax
limitation, property tax replacement, and formulation of the budget, tax
rate, and tax levy for each political subdivision in which the property
is located is the lesser of:
(1) the assessed value of the tangible property as valued without
regard to this section; or
(2) the base assessed value.
(k) If the commission confirms, or modifies and confirms, a
resolution under section 6 of this chapter and the commission makes
either of the filings required under section 6(c) of this chapter after the
first anniversary of the effective date of the allocation provision, the
auditor of the county in which the airport development zone is located
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shall compute the base assessed value for the allocation area using the
assessment date immediately preceding the later of:
(1) the date on which the documents are filed with the county
auditor; or
(2) the date on which the documents are filed with the department
of local government finance.
(l) For an airport development zone established after June 30, 2024,
"residential property" refers to the assessed value of property that is
allocated to the one percent (1%) homestead land and improvement
categories in the county tax and billing software system. along with the
residential assessed value as defined for purposes of calculating the
rate for the local income tax property tax relief credit designated for
residential property under IC 6-3.6-5-6(d)(3) (before its expiration).
SECTION 202. IC 8-22-3.5-9.3, AS ADDED BY P.L.123-2024,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 9.3. (a) Notwithstanding any other law, if the
Indiana economic development corporation subsequently designates
territory that is located in an existing allocation area under this chapter
as an innovation development district under IC 36-7-32.5, the
allocation area may not be renewed or extended under this chapter until
the term of the innovation development district expires.
(b) Notwithstanding any other law, for taxing districts that
include multiple tax increment financing districts under this
chapter, the original tax increment financing district does not
expire and stays active only for the purpose of satisfying
outstanding bonds issued by the subsequent tax increment
financing district, only if the commission completes the following
requirements:
(1) Provides a written appeal to and receives the approval of
the department of local government finance.
(2) Provides written notice to the state board of accounts of
the appeal.
SECTION 203. IC 8-22-3.5-9.8, AS ADDED BY P.L.249-2015,
SECTION 23, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 9.8. (a) A commission may enter into a written
agreement with a taxpayer who owns, or is otherwise obligated to pay
property taxes on, tangible property that is or will be located in an
allocation area established under this chapter in which the taxpayer
waives review of any assessment of the taxpayer's tangible property
that is located in the allocation area for an assessment date that occurs
during the term of any specified bond or lease obligations that are
payable from property taxes in accordance with an allocation provision
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for the allocation area and any applicable statute, ordinance, or
resolution. An agreement described in this section may precede the
establishment of the allocation area or the determination to issue bonds
or enter into leases payable from the allocated property taxes.
(b) The original owner of each nonowner occupied residential
property subject to the two percent (2%) tax cap, that is located in
the tax increment financing area and is excluded from the base
assessed value, shall upon completion of construction enter into a
written agreement with the commission indicating the owner shall
be obligated to pay the property tax for the portion of outstanding
bonds in the tax increment financing district attributable to the
property until the term length of the original outstanding bond is
retired. The written agreement with the commission shall be
considered a lien on the property and shall be included as part of
the residential real estate sales disclosure under IC 32-21-5. If the
property is subsequently sold as a homestead property and
becomes subject to the one percent (1%) tax cap, the new owner
shall be responsible for the lien on the property attributable to the
written agreement with the commission, and the new homestead
property owner shall be obligated to fulfill the terms of the written
agreement including the payment of the property tax liability
included in the agreement. This subsection does not apply to
multi-family apartments.
SECTION 204. IC 8-22-3.5-11, AS AMENDED BY P.L.86-2018,
SECTION 144, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 11. (a) The state board of
accounts and the department of local government finance shall make
the rules and prescribe the forms and procedures that the state board of
accounts and department consider appropriate for the implementation
of this chapter.
(b) After each reassessment under IC 6-1.1-4, the department of
local government finance county auditor shall, on forms prescribed
by the department of local government finance, adjust the base
assessed value (as defined in section 9 of this chapter) one (1) time to
neutralize any effect of the reassessment on the property tax proceeds
allocated to the airport development zone's special funds under section
9 of this chapter.
(c) After each annual adjustment under IC 6-1.1-4-4.5, the
department of local government finance county auditor shall, on
forms prescribed by the department of local government finance,
adjust the base assessed value (as defined in section 9 of this chapter)
to neutralize any effect of the annual adjustment on the property tax
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proceeds allocated to the airport development zone's special funds
under section 9 of this chapter.
(d) The county auditor shall, in the manner prescribed by the
department of local government finance, submit the forms
required by this section to the department of local government
finance no later than July 15 of each year.
SECTION 205. IC 9-13-2-96, AS AMENDED BY P.L.42-2025,
SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 96. (a) "Manufactured home", means, except
as provided in subsections (b) and (c), a structure that:
(1) is assembled in a factory;
(2) bears a seal certifying that it was built in compliance with the
federal Manufactured Housing Construction and Safety Standards
Law (42 U.S.C. 5401 et seq.);
(3) is designed to be transported from the factory to another site
in one (1) or more units;
(4) is suitable for use as a dwelling in any season; and
(5) is more than thirty-five (35) feet long.
The term does not include a vehicle described in section 150(a)(2) of
this chapter.
(b) "Manufactured home", for purposes of IC 9-17-6, means either
of the following:
(1) A structure having the meaning set forth in the federal
Manufactured Housing Construction and Safety Standards Law of
1974 (42 U.S.C. 5401 et seq.).
(2) A mobile home.
This subsection expires June 30, 2016. subsection (b), has the
meaning set forth in 42 U.S.C. 5402(6), as amended. However, the
term also includes a structure that meets the definition and is more
than thirty-five (35) body feet in length but less than forty (40)
body feet in length.
(c) (b) "Manufactured home", for purposes of IC 9-22-1.7, has the
meaning set forth in IC 9-22-1.7-2.
SECTION 206. IC 9-22-1.5-1, AS AMENDED BY P.L.256-2017,
SECTION 163, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 1. As used in this chapter,
"mobile home" means a nonself-propelled vehicle designed for
occupancy as a dwelling or sleeping place. has the meaning set forth
in IC 9-13-2-103.2. The term includes a manufactured home (as
defined in IC 9-13-2-96(a)).
SECTION 207. IC 9-22-1.7-2, AS ADDED BY P.L.198-2016,
SECTION 377, IS AMENDED TO READ AS FOLLOWS
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[EFFECTIVE UPON PASSAGE]: Sec. 2. As used in this chapter,
"manufactured home" means either of the following:
(1) A nonself-propelled vehicle designed for occupancy as a
dwelling or sleeping place. A manufactured home as defined in
IC 9-13-2-96(a).
(2) A dwelling, including the equipment sold as a part of the
dwelling, that:
(A) is factory assembled;
(B) is transportable;
(C) is intended for year-round occupancy;
(D) is designed for transportation on its own chassis; and
(E) was manufactured before the effective date of the federal
Manufactured Housing Construction and Safety Standards
Law of 1974 (42 U.S.C. 5401 et seq.). A mobile home (as
defined in IC 9-13-2-103.2).
SECTION 208. IC 10-18-2-19, AS AMENDED BY P.L.146-2024,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 19. (a) If a county executive desires to carry out
this chapter, the county executive must adopt a declaratory resolution
in substance as follows:
"Be it resolved, by the county executive of _______ County, that
said county should proceed alone, or jointly with the city of
_______ located in such county, to carry out the purposes of
IC 10-18-2.".
(b) The resolution shall be recorded in the proceedings of the county
executive. Notice of the adoption of the declaratory resolution shall be
given by the county executive by the publication of the resolution two
(2) times in full published at least a week apart in accordance with
IC 5-3-1-2(m) or IC 5-3-1-4. IC 5-3-1-1.5.
(c) The county executive may:
(1) appropriate money;
(2) make loans;
(3) issue bonds;
(4) levy taxes; and
(5) do everything that may be necessary to carry out this chapter.
If any bonds are issued under this chapter by a county and the bonds
have to be refunded, it is not necessary for the county executive to
adopt a declaratory resolution.
(d) The rights and powers of this chapter vested in any county
executive may not be exhausted by being exercised one (1) or more
times, but are continuing rights and powers.
(e) If there is a second or other subsequent exercise of power under
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this chapter by any county, it is not necessary for the county executive
to adopt a declaratory resolution. Any county acting a second or
subsequent time may proceed to carry out this chapter without any
appropriation by the county fiscal body and without being required to
comply with any other law relating to appropriations and budgets
except for section 2 of this chapter.
SECTION 209. IC 10-18-4-22, AS AMENDED BY P.L.84-2016,
SECTION 60, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 22. (a) If a city legislative body wants to
implement this chapter, the legislative body must adopt an ordinance
that must be in substance as follows:
"Be it resolved by _______ (name of the city's legislative body)
that the city should proceed (or jointly with _______ County, in
which it is located) to carry out the purposes of IC 10-18-4.".
The ordinance must be submitted to the mayor of the city for approval.
If the ordinance is approved by the mayor, the city clerk shall give
notice of the adoption of the ordinance by the publication of the
ordinance in full by two (2) insertions published at least one (1) week
apart under IC 5-3-1-4. IC 5-3-1-1.5.
(b) The city may appropriate money, issue bonds, levy taxes, and do
everything necessary to implement this chapter.
(c) If a city issues bonds under this chapter and the bonds must be
refunded, the city's legislative body is not required to adopt an
ordinance for that purpose.
(d) A city's rights and powers under this chapter are not exhausted
by being exercised one (1) or more times, but are continuing rights and
powers. A subsequent exercise of power under this chapter by a city
does not require the city's legislative body to adopt an ordinance. A city
that wants to act a subsequent time to implement this chapter may
proceed, acting through its board of public works, with the approval of
its mayor, when money has been appropriated for the action by an
ordinance passed by the city's legislative body and approved by the
mayor, without complying with any other law relating to appropriations
and budgets except for section 3 of this chapter.
(e) A taxpayer aggrieved by an action under this section may appeal
the decision to the circuit court, superior court, or probate court of the
county within ten (10) days in the same manner as other appeals are
taken from an action of the board. The cause of action shall be tried de
novo.
SECTION 210. IC 16-18-2-215.5, AS ADDED BY P.L.87-2005,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 215.5. "Manufactured home", for purposes of
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IC 16-41-27, has the meaning set forth in IC 22-12-1-16.
IC 9-13-2-96(a). The term includes a mobile home (as defined in
IC 9-13-2-103.2).
SECTION 211. IC 16-18-2-238 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 238. "Mobile
home", for purposes of IC 16-41-27, has meaning set forth in
IC 16-41-27-4. IC 9-13-2-103.2. The term includes a manufactured
home (as defined in IC 9-13-2-96(a)).
SECTION 212. IC 16-41-27-3.5, AS ADDED BY P.L.87-2005,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 3.5. As used in this chapter, "manufactured
home" has the meaning set forth in IC 22-12-1-16. IC 9-13-2-96(a).
The term includes a mobile home (as defined in IC 9-13-2-103.2).
SECTION 213. IC 16-41-27-4, AS AMENDED BY P.L.87-2005,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 4. As used in this chapter, "mobile home"
means a dwelling, including the equipment sold as a part of the
dwelling, that:
(1) is factory assembled;
(2) is transportable;
(3) is intended for year-round occupancy;
(4) is designed for transportation on its own chassis; and
(5) was manufactured before the effective date of the federal
Manufactured Housing Construction and Safety Standards Law of
1974 (42 U.S.C. 5401 et seq.). has the meaning set forth in
IC 9-13-2-103.2. The term includes a manufactured home (as
defined in IC 9-13-2-96(a)).
SECTION 214. IC 20-46-7-12, AS AMENDED BY P.L.159-2020,
SECTION 63, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 12. (a) Except as provided by IC 5-1-14-10
and subsection (c), the maximum term or repayment period for bonds
issued by a school corporation for a school building construction
project may not exceed twenty (20) years after the date of the issuance
of the bonds.
(b) If a school corporation is an eligible school corporation under
IC 5-1-5-2.5 or IC 5-1-5-2.6, the school corporation may extend the
repayment period beyond the maximum repayment period that applied
to the bond, loan, or lease at the time the obligation was incurred as
provided by IC 5-1-5-2.5 or IC 5-1-5-2.6.
(c) Except as provided by IC 5-1-14-10, the maximum term or
repayment period for bonds issued by a school corporation for a school
building construction project and to repay loans made or guaranteed by
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a federal agency may not exceed forty (40) years after the date of the
issuance of the bonds.
SECTION 215. IC 20-46-7-15, AS AMENDED BY P.L.244-2017,
SECTION 105, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 15. (a) As used in this section,
"debt service fund" includes the separate debt service fund for the
payment of debt service on bonds used to implement solutions to a
contractual retirement or severance liability.
(b) As used in this section, "eligible school corporation" has the
meaning set forth in IC 5-1-5-2.5 or IC 5-1-5-2.6.
(c) As used in this section, "increment" refers to the annual
increment computed under IC 5-1-5-2.5 or IC 5-1-5-2.6 with respect
to bonds issued to retire or otherwise refund other bonds for each year
that the bonds that are being retired or refunded would have been
outstanding.
(d) A school corporation may make a request to continue to impose
a debt service fund levy in the amount that the school corporation
would have been able to impose to pay debt service on bonds that were
retired or refunded by the issuance of refunding bonds. A school
corporation must include in its request a copy of the ordinance adopted
under IC 5-1-5-2.5 or IC 5-1-5-2.6.
(e) The department of local government finance shall grant the
school corporation permission to continue to impose such a debt
service fund levy if the department finds that the school corporation
qualifies to issue refunding bonds under IC 5-1-5-2.5 or IC 5-1-5-2.6.
(f) An eligible school corporation that is granted permission to
impose a debt service fund levy as described in this section may
transfer the lesser of the amount of credits granted under IC 6-1.1-20.6
against the school corporation's combined levy for all the school
corporation's funds or the amount of the increment from the debt
service fund to the operations fund.
SECTION 216. IC 20-48-4-2, AS AMENDED BY P.L.147-2016,
SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 2. (a) The board may authorize the trustee to issue
township warrants or bonds to pay for the building or the proportional
cost of it. The warrants or bonds:
(1) may run for a period not exceeding fifteen (15) years;
(2) may bear interest at any rate; and
(3) shall be sold for not less than par.
The township trustee, before issuing the warrants or bonds, shall place
a notice in accordance with IC 5-3-1-4 IC 5-3-1-1.5 in at least one (1)
appropriate publication announcing the sale of the bonds in at least one
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(1) issue a week for three (3) weeks. The notice must comply with
IC 5-3-1 and must set forth the amount of bonds offered, the
denomination, the period to run, the rate of interest, and the date, place,
and time of selling. The township board shall attend the bond sale and
must concur in the sale before the bonds are sold.
(b) The board shall annually levy sufficient taxes each year to pay
at least one-fifteenth (1/15) of the warrants or bonds, including interest,
and the trustee shall apply the annual tax to the payment of the warrants
or bonds each year.
(c) A debt of the township may not be created except by the
township board in the manner specified in this section. The board may
bring an action in the name of the state against the bond of a trustee to
recover for the use of the township funds expended in the unauthorized
payment of a debt. The board may appropriate and the township trustee
shall pay from township funds a reasonable sum for attorney's fees for
this purpose.
(d) If a taxpayer serves the board with a written demand that the
board bring an action as described in subsection (c), and after thirty
(30) days the board has not brought an action, a taxpayer may bring an
action to recover for the use of the township funds expended in the
unauthorized payment of a debt. An action brought under this
subsection shall be brought in the name of the state.
SECTION 217. IC 22-12-1-14 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 14. "Industrialized
building system" means any part of a building or other structure that is
in whole or in substantial part fabricated in an off-site manufacturing
facility for installation or assembly at the building site as part of a Class
1 structure, a Class 2 structure, or another building or structure.
However, the term does not include a mobile structure, a
manufactured home, or a system that is capable of inspection at the
building site.
SECTION 218. IC 22-12-1-16, AS AMENDED BY P.L.198-2016,
SECTION 651, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 16. "Manufactured home" has
the meaning set forth in 42 U.S.C. 5402 as it existed on January 1,
2003. IC 9-13-2-96(a). The term includes a mobile home (as defined
in IC 16-41-27-4). as defined in IC 9-13-2-103.2.
SECTION 219. IC 22-12-1-17, AS AMENDED BY P.L.101-2006,
SECTION 31, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 17. (a) "Mobile structure" means any part of
a fabricated unit that is designed to be:
(1) towed on its own with or without a permanent chassis; and
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(2) connected to utilities for year-round occupancy or use as a
Class 1 structure, a Class 2 structure, or another structure.
(b) The term includes the following:
(1) Two (2) or more components that can be retracted for towing
purposes and subsequently expanded for additional capacity.
(2) Two (2) or more units that are separately towable but designed
to be joined into one (1) integral unit.
(3) One (1) or more units that include a hoisting and lowering
mechanism equipped with a platform that:
(A) moves between two (2) or more landings; and
(B) is used to transport one (1) or more individuals.
SECTION 220. IC 25-23.7-2-7, AS AMENDED BY P.L.87-2005,
SECTION 33, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 7. "Manufactured home" means a:
(1) dwelling meeting the definition set forth in IC 22-12-1-16; or
(2) mobile home being installed in a mobile home community.
has the meaning set forth in IC 9-13-2-96(a). The term
includes a mobile home (as defined in IC 9-13-2-103.2).
SECTION 221. IC 25-23.7-2-7.5, AS ADDED BY P.L.87-2005,
SECTION 34, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 7.5. "Mobile home" has the meaning set forth
in IC 16-41-27-4. IC 9-13-2-103.2. The term includes a
manufactured home (as defined in IC 9-13-2-96(a)).
SECTION 222. IC 25-23.7-3-8, AS AMENDED BY P.L.84-2016,
SECTION 108, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 8. The board shall:
(1) enforce and administer this article;
(2) adopt rules under IC 4-22-2 for the administration and
enforcement of this article, including competency standards and
a code of ethics for licensed installers;
(3) prescribe the requirements for and the form of licenses issued
or renewed under this article;
(4) issue, deny, suspend, and revoke licenses in accordance with
this article;
(5) in accordance with IC 25-1-7, investigate and prosecute
complaints involving licensees or individuals the board has
reason to believe should be licensees, including complaints
concerning the failure to comply with this article or rules adopted
under this article;
(6) bring actions in the name of the state of Indiana in an
appropriate circuit court, superior court, or probate court to
enforce compliance with this article or rules adopted under this
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article;
(7) establish fees in accordance with IC 25-1-8;
(8) inspect the records of a licensee in accordance with rules
adopted by the board;
(9) conduct or designate a board member or other representative
to conduct public hearings on any matter for which a hearing is
required under this article and to exercise all powers granted
under IC 4-21.5; and
(10) maintain the board's office, files, records, and property in the
city of Indianapolis; and
(11) ensure any certification or recertification required by 42
U.S.C. 5403, as amended, or any other provision of the federal
Manufactured Housing Construction and Safety Standards
Law (42 U.S.C. 5401 et seq.), is submitted to or has been
included in a plan submitted to the secretary of the United
States Department of Housing and Urban Development.
SECTION 223. IC 26-1-9.1-102, AS AMENDED BY P.L.199-2023,
SECTION 40, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 102. (a) In IC 26-1-9.1:
(1) "Accession" means goods that are physically united with other
goods in such a manner that the identity of the original goods is
not lost.
(2) "Account", except as used in "account for", "account
statement", "account to", "commodity account" in subdivision
(14), "customer's account", "deposit account" in subdivision (29),
"on account of", and "statement of account", means a right to
payment of a monetary obligation, whether or not earned by
performance:
(A) for property that has been or is to be sold, leased, licensed,
assigned, or otherwise disposed of;
(B) for services rendered or to be rendered;
(C) for a policy of insurance issued or to be issued;
(D) for a secondary obligation incurred or to be incurred;
(E) for energy provided or to be provided;
(F) for the use or hire of a vessel under a charter or other
contract;
(G) arising out of the use of a credit or charge card or
information contained on or for use with the card; or
(H) as winnings in a lottery or other game of chance operated
or sponsored by a state other than Indiana, a governmental unit
of a state, or a person licensed or authorized to operate the
game by a state or governmental unit of a state.
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The term does not include a right to a payment of a prize awarded
by the state lottery commission in the Indiana state lottery
established under IC 4-30. The term includes controllable
accounts and health-care-insurance receivables. The term does
not include (i) chattel paper, (ii) commercial tort claims, (iii)
deposit accounts, (iv) investment property, (v) letter-of-credit
rights or letters of credit, (vi) rights to payment for money or
funds advanced or sold, other than rights arising out of the use of
a credit or charge card or information contained on or for use with
the card, or (vii) rights to payment evidenced by an instrument.
(3) "Account debtor" means a person obligated on an account,
chattel paper, or general intangible. The term does not include
persons obligated to pay a negotiable instrument, even if the
negotiable instrument evidences chattel paper.
(4) "Accounting", except as used in "accounting for", means a
record:
(A) signed by a secured party;
(B) indicating the aggregate unpaid secured obligations as of
a date not more than thirty-five (35) days earlier or thirty-five
(35) days later than the date of the record; and
(C) identifying the components of the obligations in
reasonable detail.
(5) "Agricultural lien" means an interest, other than a security
interest, in farm products:
(A) that secures payment or performance of an obligation for:
(i) goods or services furnished in connection with a debtor's
farming operation; or
(ii) rent on real property leased by a debtor in connection
with the debtor's farming operation;
(B) that is created by statute in favor of a person that:
(i) in the ordinary course of its business furnished goods or
services to a debtor in connection with the debtor's farming
operation; or
(ii) leased real property to a debtor in connection with the
debtor's farming operation; and
(C) whose effectiveness does not depend on the person's
possession of the personal property.
(6) "As-extracted collateral" means:
(A) oil, gas, or other minerals that are subject to a security
interest that:
(i) is created by a debtor having an interest in the minerals
before extraction; and
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(ii) attaches to the minerals as extracted; or
(B) accounts arising out of the sale at the wellhead or
minehead of oil, gas, or other minerals in which the debtor had
an interest before extraction.
(7) The following terms have the following meanings:
(A) "Assignee", except as used in "assignee for benefit of
creditors", means a person (i) in whose favor a security interest
that secures an obligation is created or provided for under a
security agreement, whether or not the obligation is
outstanding or (ii) to which an account, chattel paper, payment
intangible, or promissory note has been sold. The term
includes a person to which a security interest has been
transferred by a secured party.
(B) "Assignor" means a person that (i) under a security
agreement creates or provides for a security interest that
secures an obligation or (ii) sells an account, chattel paper,
payment intangible, or promissory note. The term includes a
secured party that has transferred a security interest to another
person.
(8) "Bank" means an organization that is engaged in the business
of banking. The term includes savings banks, savings and loan
associations, credit unions, and trust companies.
(9) "Cash proceeds" means proceeds that are money, checks,
deposit accounts, or the like.
(10) "Certificate of title" means a certificate of title with respect
to which a statute provides for the security interest in question to
be indicated on the certificate as a condition or result of the
security interest's obtaining priority over the rights of a lien
creditor with respect to the collateral. The term includes another
record maintained as an alternative to a certificate of title by the
governmental unit that issues certificates of title if a statute
permits the security interest in question to be indicated on the
record as a condition or result of the security interest's obtaining
priority over the rights of a lien creditor with respect to the
collateral.
(11) "Chattel paper" means:
(A) a right to payment of a monetary obligation secured by
specific goods, if the right to payment and security interest are
evidenced by a record; or
(B) a right to payment of a monetary obligation owed by a
lessee under a lease agreement with respect to specific goods
and a monetary obligation owed by the lessee in connection
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with the transaction giving rise to the lease if:
(i) the right to payment and lease agreement are evidenced
by a record; and
(ii) the predominant purpose of the transaction giving rise to
the lease was to give the lessee the right to possession and
use of the goods.
The term does not include a right to payment arising out of a
charter or other contract involving the use or hire of a vessel, or
a right to payment arising out of the use of a credit or charge card
or information contained on or for use with the card.
(12) "Collateral" means the property subject to a security interest
or agricultural lien. The term includes:
(A) proceeds to which a security interest attaches;
(B) accounts, chattel paper, payment intangibles, and
promissory notes that have been sold; and
(C) goods that are the subject of a consignment.
(13) "Commercial tort claim" means a claim arising in tort with
respect to which:
(A) the claimant is an organization; or
(B) the claimant is an individual and the claim:
(i) arose in the course of the claimant's business or
profession; and
(ii) does not include damages arising out of personal injury
to or the death of an individual.
(14) "Commodity account" means an account maintained by a
commodity intermediary in which a commodity contract is carried
for a commodity customer.
(15) "Commodity contract" means a commodity futures contract,
an option on a commodity futures contract, a commodity option,
or another contract if the contract or option is:
(A) traded on or subject to the rules of a board of trade that has
been designated as a contract market for such a contract
pursuant to federal commodities laws; or
(B) traded on a foreign commodity board of trade, exchange,
or market, and is carried on the books of a commodity
intermediary for a commodity customer.
(16) "Commodity customer" means a person for which a
commodity intermediary carries a commodity contract on its
books.
(17) "Commodity intermediary" means a person that:
(A) is registered as a futures commission merchant under
federal commodities law; or
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(B) in the ordinary course of its business provides clearance or
settlement services for a board of trade that has been
designated as a contract market pursuant to federal
commodities law.
(18) "Communicate" means:
(A) to send a written or other tangible record;
(B) to transmit a record by any means agreed upon by the
persons sending and receiving the record; or
(C) in the case of transmission of a record to or by a filing
office, to transmit a record by any means prescribed by
filing-office rule.
(19) "Consignee" means a merchant to which goods are delivered
in a consignment.
(20) "Consignment" means a transaction, regardless of its form,
in which a person delivers goods to a merchant for the purpose of
sale and:
(A) the merchant:
(i) deals in goods of that kind under a name other than the
name of the person making delivery;
(ii) is not an auctioneer; and
(iii) is not generally known by its creditors to be
substantially engaged in selling the goods of others;
(B) with respect to each delivery, the aggregate value of the
goods is one thousand dollars ($1,000) or more at the time of
delivery;
(C) the goods are not consumer goods immediately before
delivery; and
(D) the transaction does not create a security interest that
secures an obligation.
(21) "Consignor" means a person that delivers goods to a
consignee in a consignment.
(22) "Consumer debtor" means a debtor in a consumer
transaction.
(23) "Consumer goods" means goods that are used or bought for
use primarily for personal, family, or household purposes.
(24) "Consumer-goods transaction" means a consumer transaction
in which:
(A) an individual incurs an obligation primarily for personal,
family, or household purposes; and
(B) a security interest in consumer goods secures the
obligation.
(25) "Consumer obligor" means an obligor who is an individual
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and who incurred the obligation as part of a transaction entered
into primarily for personal, family, or household purposes.
(26) "Consumer transaction" means a transaction in which (i) an
individual incurs an obligation primarily for personal, family, or
household purposes, (ii) a security interest secures the obligation,
and (iii) the collateral is held or acquired primarily for personal,
family, or household purposes. The term includes
consumer-goods transactions.
(27) The following terms have the following meanings:
(A) "Continuation statement" means an amendment of a
financing statement that:
(i) identifies, by its file number, the initial financing
statement to which it relates; and
(ii) indicates that it is a continuation statement for, or that it
is filed to continue the effectiveness of, the identified
financing statement.
(B) "Controllable account" means an account evidenced by a
controllable electronic record that provides that the account
debtor undertakes to pay the person that has control under
IC 26-1-12-105 of the controllable electronic record.
(C) "Controllable payment intangible" means a payment
intangible evidenced by a controllable electronic record that
provides that the account debtor undertakes to pay the person
that has control under IC 26-1-12-105 of the controllable
electronic record.
(28) "Debtor" means:
(A) a person having an interest, other than a security interest
or other lien, in the collateral, whether or not the person is an
obligor;
(B) a seller of accounts, chattel paper, payment intangibles, or
promissory notes; or
(C) a consignee.
(29) "Deposit account" means a demand, time, savings, passbook,
or similar account maintained with a bank. The term does not
include investment property or accounts evidenced by an
instrument.
(30) "Document" means a document of title or a receipt of the
type described in IC 26-1-7-201(b).
(31) [Reserved.]
(32) "Encumbrance" means a right, other than an ownership
interest, in real property. The term includes mortgages and other
liens on real property.
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(33) "Equipment" means goods other than inventory, farm
products, or consumer goods.
(34) "Farm products" means goods, other than standing timber,
with respect to which the debtor is engaged in a farming operation
and which are:
(A) crops grown, growing, or to be grown, including:
(i) crops produced on trees, vines, and bushes; and
(ii) aquatic goods produced in aquacultural operations;
(B) livestock, born or unborn, including aquatic goods
produced in aquacultural operations;
(C) supplies used or produced in a farming operation; or
(D) products of crops or livestock in their unmanufactured
states.
(35) "Farming operation" means raising, cultivating, propagating,
fattening, grazing, or any other farming, livestock, or aquacultural
operation.
(36) "File number" means the number assigned to an initial
financing statement pursuant to IC 26-1-9.1-519(a).
(37) "Filing office" means an office designated in IC 26-1-9.1-501
as the place to file a financing statement.
(38) "Filing-office rule" means a rule adopted pursuant to
IC 26-1-9.1-526.
(39) "Financing statement" means a record or records composed
of an initial financing statement and any filed record relating to
the initial financing statement.
(40) "Fixture filing" means the filing of a financing statement
covering goods that are or are to become fixtures and satisfying
IC 26-1-9.1-502(a) and IC 26-1-9.1-502(b). The term includes the
filing of a financing statement covering goods of a transmitting
utility which are or are to become fixtures.
(41) "Fixtures" means goods that have become so related to
particular real property that an interest in them arises under real
property law.
(42) "General intangible" means any personal property, including
things in action, other than accounts, chattel paper, commercial
tort claims, deposit accounts, documents, goods, instruments,
investment property, letter-of-credit rights, letters of credit,
money, and oil, gas, or other minerals before extraction. The term
includes controllable electronic records, payment intangibles, and
software.
(43) "Good faith" means honesty in fact and the observance of
reasonable commercial standards of fair dealing.
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(44) "Goods" means all things that are movable when a security
interest attaches. The term includes (i) fixtures, (ii) standing
timber that is to be cut and removed under a conveyance or
contract for sale, (iii) the unborn young of animals, (iv) crops
grown, growing, or to be grown, even if the crops are produced on
trees, vines, or bushes, and (v) manufactured homes. The term
also includes a computer program embedded in goods and any
supporting information provided in connection with a transaction
relating to the program if (i) the program is associated with the
goods in such a manner that it customarily is considered part of
the goods, or (ii) by becoming the owner of the goods, a person
acquires a right to use the program in connection with the goods.
The term does not include a computer program embedded in
goods that consist solely of the medium in which the program is
embedded. The term also does not include accounts, chattel
paper, commercial tort claims, deposit accounts, documents,
general intangibles, instruments, investment property,
letter-of-credit rights, letters of credit, money, or oil, gas, or other
minerals before extraction.
(45) "Governmental unit" means a subdivision, agency,
department, county, parish, municipality, or other unit of the
government of the United States, a state, or a foreign country. The
term includes an organization having a separate corporate
existence if the organization is eligible to issue debt on which
interest is exempt from income taxation under the laws of the
United States.
(46) "Health-care-insurance receivable" means an interest in or
claim under a policy of insurance that is a right to payment of a
monetary obligation for health-care goods or services provided.
(47) "Instrument" means a negotiable instrument or any other
writing that evidences a right to the payment of a monetary
obligation, is not itself a security agreement or lease, and is of a
type that in the ordinary course of business is transferred by
delivery with any necessary endorsement or assignment. The term
does not include (i) investment property, (ii) letters of credit, (iii)
writings that evidence a right to payment arising out of the use of
a credit or charge card or information contained on or for use with
the card, or (iv) writings that evidence chattel paper.
(48) "Inventory" means goods, other than farm products, that:
(A) are leased by a person as lessor;
(B) are held by a person for sale or lease or to be furnished
under a contract of service;
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(C) are furnished by a person under a contract of service; or
(D) consist of raw materials, work in process, or materials
used or consumed in a business.
(49) "Investment property" means a security, whether certificated
or uncertificated, security entitlement, securities account,
commodity contract, or commodity account.
(50) "Jurisdiction of organization", with respect to a registered
organization, means the jurisdiction under whose law the
organization is formed or organized.
(51) "Letter-of-credit right" means a right to payment or
performance under a letter of credit, whether or not the
beneficiary has demanded or is at the time entitled to demand
payment or performance. The term does not include the right of
a beneficiary to demand payment or performance under a letter of
credit.
(52) "Lien creditor" means:
(A) a creditor that has acquired a lien on the property involved
by attachment, levy, or the like;
(B) an assignee for benefit of creditors from the time of
assignment;
(C) a trustee in bankruptcy from the date of the filing of the
petition; or
(D) a receiver in equity from the time of appointment.
(53) "Manufactured home" means a structure, transportable in one
(1) or more sections, which, in the traveling mode, is eight (8)
body feet or more in width or forty (40) body feet or more in
length, or, when erected on site, is three hundred twenty (320) or
more square feet, and which is built on with or without a
permanent chassis and designed to be used as a dwelling with or
without a permanent foundation when connected to the required
utilities, and includes the plumbing, heating, air conditioning, and
electrical systems contained therein. The term includes any
structure that meets all of the requirements of this subdivision
except the size requirements, and with respect to which the
manufacturer voluntarily files a certification required by the
United States Secretary of Housing and Urban Development and
complies with the standards established under Title 42 of the
United States Code.
(54) The following terms have the following meanings:
(A) "Manufactured-home transaction" means a secured
transaction:
(i) that creates a purchase-money security interest in a
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manufactured home, other than a manufactured home held
as inventory; or
(ii) in which a manufactured home, other than a
manufactured home held as inventory, is the primary
collateral.
(B) "Money" has the meaning set forth in IC 26-1-1-201(24),
but does not include a deposit account.
(55) "Mortgage" means a consensual interest in real property,
including fixtures, that secures payment or performance of an
obligation.
(56) "New debtor" means a person that becomes bound as debtor
under IC 26-1-9.1-203(d) by a security agreement previously
entered into by another person.
(57) "New value" means (i) money, (ii) money's worth in
property, services, or new credit, or (iii) release by a transferee of
an interest in property previously transferred to the transferee.
The term does not include an obligation substituted for another
obligation.
(58) "Noncash proceeds" means proceeds other than cash
proceeds.
(59) "Obligor" means a person that, with respect to an obligation
secured by a security interest in or an agricultural lien on the
collateral, (i) owes payment or other performance of the
obligation, (ii) has provided property other than the collateral to
secure payment or other performance of the obligation, or (iii) is
otherwise accountable in whole or in part for payment or other
performance of the obligation. The term does not include issuers
or nominated persons under a letter of credit.
(60) "Original debtor", except as used in IC 26-1-9.1-310(c),
means a person that, as debtor, entered into a security agreement
to which a new debtor has become bound under
IC 26-1-9.1-203(d).
(61) "Payment intangible" means a general intangible under
which the account debtor's principal obligation is a monetary
obligation. The term includes a controllable payment intangible.
(62) "Person related to", with respect to an individual, means:
(A) the spouse of the individual;
(B) a brother, brother-in-law, sister, or sister-in-law of the
individual;
(C) an ancestor or lineal descendant of the individual or the
individual's spouse; or
(D) any other relative, by blood or marriage, of the individual
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or the individual's spouse who shares the same home with the
individual.
(63) "Person related to", with respect to an organization, means:
(A) a person directly or indirectly controlling, controlled by,
or under common control with the organization;
(B) an officer or director of, or a person performing similar
functions with respect to, the organization;
(C) an officer or director of, or a person performing similar
functions with respect to, a person described in clause (A);
(D) the spouse of an individual described in clause (A), (B), or
(C); or
(E) an individual who is related by blood or marriage to an
individual described in clause (A), (B), (C), or (D) and shares
the same home with the individual.
(64) "Proceeds", except as used in IC 26-1-9.1-609(b), means the
following property:
(A) Whatever is acquired upon the sale, lease, license,
exchange, or other disposition of collateral.
(B) Whatever is collected on, or distributed on account of,
collateral.
(C) Rights arising out of collateral.
(D) To the extent of the value of collateral, claims arising out
of the loss, nonconformity, or interference with the use of,
defects or infringement of rights in, or damage to, the
collateral.
(E) To the extent of the value of collateral and to the extent
payable to the debtor or the secured party, insurance payable
by reason of the loss or nonconformity of, defects or
infringement of rights in, or damage to, the collateral.
(65) "Promissory note" means an instrument that evidences a
promise to pay a monetary obligation, does not evidence an order
to pay, and does not contain an acknowledgment by a bank that
the bank has received for deposit a sum of money or funds.
(66) "Proposal" means a record signed by a secured party that
includes the terms on which the secured party is willing to accept
collateral in full or partial satisfaction of the obligation it secures
pursuant to IC 26-1-9.1-620, IC 26-1-9.1-621, and
IC 26-1-9.1-622.
(67) "Public-finance transaction" means a secured transaction in
connection with which:
(A) debt securities are issued;
(B) all or a portion of the securities issued have an initial
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stated maturity of at least twenty (20) years; and
(C) the debtor, obligor, secured party, account debtor, or other
person obligated on collateral, assignor or assignee of a
secured obligation, or assignor or assignee of a security
interest is a state or a governmental unit of a state.
(68) "Public organic record" means a record that is available to
the public for inspection and is:
(A) a record consisting of the record initially filed with or
issued by a state or the United States to form or organize an
organization and any record filed with or issued by the state or
the United States which amends or restates the initial record;
(B) an organic record of a business trust consisting of the
record initially filed with a state and any record filed with the
state which amends or restates the initial record, if a statute of
the state governing business trusts requires that the record be
filed with the state; or
(C) a record consisting of legislation enacted by the legislature
of a state or the Congress of the United States which forms or
organizes an organization, any record amending the
legislation, and any record filed with or issued by the state or
the United States which amends or restates the name of the
organization.
(69) "Pursuant to commitment", with respect to an advance made
or other value given by a secured party, means pursuant to the
secured party's obligation, whether or not a subsequent event of
default or other event not within the secured party's control has
relieved or may relieve the secured party from its obligation.
(70) "Record", except as used in "for record", "of record", "record
or legal title", and "record owner", means information that is
inscribed on a tangible medium or that is stored in an electronic
or other medium and is retrievable in perceivable form.
(71) "Registered organization" means an organization formed or
organized solely under the law of a single state or the United
States by the filing of a public organic record with, the issuance
of a public organic record by, or the enactment of legislation by
the state or the United States. The term includes a business trust
that is formed or organized under the law of a single state if a
statute of the state governing business trusts requires that the
business trust's organic record be filed with the state.
(72) "Secondary obligor" means an obligor to the extent that:
(A) the obligor's obligation is secondary; or
(B) the obligor has a right of recourse with respect to an
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obligation secured by collateral against the debtor, another
obligor, or property of either.
(73) "Secured party" means:
(A) a person in whose favor a security interest is created or
provided for under a security agreement, whether or not any
obligation to be secured is outstanding;
(B) a person that holds an agricultural lien;
(C) a consignor;
(D) a person to which accounts, chattel paper, payment
intangibles, or promissory notes have been sold;
(E) a trustee, indenture trustee, agent, collateral agent, or other
representative in whose favor a security interest or agricultural
lien is created or provided for; or
(F) a person that holds a security interest arising under
IC 26-1-2-401, IC 26-1-2-505, IC 26-1-2-711(3),
IC 26-1-2.1-508(5), IC 26-1-4-210, or IC 26-1-5.1-118.
(74) "Security agreement" means an agreement that creates or
provides for a security interest.
(75) [Reserved.]
(76) "Software" means a computer program and any supporting
information provided in connection with a transaction relating to
the program. The term does not include a computer program that
is included in the definition of goods.
(77) "State" means a state of the United States, the District of
Columbia, Puerto Rico, the United States Virgin Islands, or any
territory or insular possession subject to the jurisdiction of the
United States.
(78) "Supporting obligation" means a letter-of-credit right or
secondary obligation that supports the payment or performance of
an account, chattel paper, a document, a general intangible, an
instrument, or investment property.
(79) [Reserved.]
(80) "Termination statement" means an amendment of a financing
statement that:
(A) identifies, by its file number, the initial financing
statement to which it relates; and
(B) indicates either that it is a termination statement or that the
identified financing statement is no longer effective.
(81) "Transmitting utility" means a person primarily engaged in
the business of:
(A) operating a railroad, subway, street railway, or trolley bus;
(B) transmitting communications electrically,
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electromagnetically, or by light;
(C) transmitting goods by pipeline or sewer; or
(D) transmitting or producing and transmitting electricity,
steam, gas, or water.
(b) "Control" as provided in IC 26-1-7-106 and the following
definitions outside IC 26-1-9.1 apply to IC 26-1-9.1:
"Applicant" IC 26-1-5.1-102.
"Beneficiary" IC 26-1-5.1-102.
"Broker" IC 26-1-8.1-102.
"Certificated security" IC 26-1-8.1-102.
"Check" IC 26-1-3.1-104.
"Clearing corporation" IC 26-1-8.1-102.
"Contract for sale" IC 26-1-2-106.
"Controllable electronic record" IC 26-1-12-102.
"Customer" IC 26-1-4-104.
"Entitlement holder" IC 26-1-8.1-102.
"Financial asset" IC 26-1-8.1-102.
"Holder in due course" IC 26-1-3.1-302.
"Issuer" (with respect to a letter of credit or letter-of-credit right)
IC 26-1-5.1-102.
"Issuer" (with respect to a security) IC 26-1-8.1-201.
"Issuer" (with respect to documents of title) IC 26-1-7-102.
"Lease" IC 26-1-2.1-103.
"Lease agreement" IC 26-1-2.1-103.
"Lease contract" IC 26-1-2.1-103.
"Leasehold interest" IC 26-1-2.1-103.
"Lessee" IC 26-1-2.1-103.
"Lessee in ordinary course of business" IC 26-1-2.1-103.
"Lessor" IC 26-1-2.1-103.
"Lessor's residual interest" IC 26-1-2.1-103.
"Letter of credit" IC 26-1-5.1-102.
"Merchant" IC 26-1-2-104.
"Negotiable instrument" IC 26-1-3.1-104.
"Nominated person" IC 26-1-5.1-102.
"Note" IC 26-1-3.1-104.
"Proceeds of a letter of credit" IC 26-1-5.1-114.
"Protected purchaser" IC 26-1-8.1-303.
"Prove" IC 26-1-3.1-103.
"Qualifying purchaser" IC 26-1-12-102.
"Sale" IC 26-1-2-106.
"Securities account" IC 26-1-8.1-501.
"Securities intermediary" IC 26-1-8.1-102.
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"Security" IC 26-1-8.1-102.
"Security certificate" IC 26-1-8.1-102.
"Security entitlement" IC 26-1-8.1-102.
"Uncertificated security" IC 26-1-8.1-102.
(c) IC 26-1-1 contains general definitions and principles of
construction and interpretation applicable throughout IC 26-1-9.1.
SECTION 224. IC 32-21-5-7, AS AMENDED BY P.L.186-2025,
SECTION 166, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 7. (a) The Indiana real estate
commission established by IC 25-34.1-2-1 shall adopt a specific
disclosure form that contains the following:
(1) Disclosure by the owner of the known condition of the
following:
(A) The foundation.
(B) The mechanical systems.
(C) The roof.
(D) The structure.
(E) The water and sewer systems.
(F) Additions that may require improvements to the sewage
disposal system.
(G) Other areas that the Indiana real estate commission
determines are appropriate.
(2) Disclosure by the owner of known:
(A) contamination caused by the manufacture of a controlled
substance (as defined by IC 35-48-1.1-7) on the property that
has not been certified as decontaminated by a qualified
inspector who is certified under IC 16-19-3.1; or
(B) manufacture of methamphetamine or dumping of waste
from the manufacture of methamphetamine in a residential
structure on the property.
(3) A notice to the prospective buyer that contains substantially
the following language:
"The prospective buyer and the owner may wish to obtain
professional advice or inspections of the property and provide for
appropriate provisions in a contract between them concerning any
advice, inspections, defects, or warranties obtained on the
property.".
(4) A notice to the prospective buyer that contains substantially
the following language:
"The representations in this form are the representations of the
owner and are not the representations of the agent, if any. This
information is for disclosure only and is not intended to be a part
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of any contract between the buyer and owner.".
(5) A disclosure by the owner that an airport is located within a
geographical distance from the property as determined by the
Indiana real estate commission. The commission may consider the
differences between an airport serving commercial airlines and an
airport that does not serve commercial airlines in determining the
distance to be disclosed.
(6) A disclosure by the owner that:
(A) the property is located near a military installation, within
a state area of interest (as defined in IC 36-7-30.2-6), and may
be impacted to some degree by the effects of the installation's
military operations; and
(B) local laws may restrict use and development of the
property to promote compatibility with military installation
operations.
(7) If the owner has personal knowledge of the fact that all or a
portion of the real estate is located within a community's flood
plain boundaries, as indicated in a Federal Emergency
Management Agency Flood Insurance Rate Map, a disclosure by
the owner of that fact.
(8) A disclosure by the owner that the property is located within
a locally designated historic district under IC 36-7-11.
(9) A disclosure by the owner of a conservation easement (as
defined in IC 32-23-5-2).
(10) A disclosure by the owner if the property has a lien
pursuant to a written agreement with a redevelopment
commission or reuse authority under any of the following:
(A) IC 8-22-3.5-9.8(b).
(B) IC 36-7-14-39.6(b).
(C) IC 36-7-15.1-26.6(b).
(D) IC 36-7-30-26.5(b).
(E) IC 36-7-30.5-31.5(b).
(b) Responsibility for the disclosure required under subsection
(a)(6) rests solely with the owner of the property and no liability for the
owner's failure to make the required disclosure shall accrue to any third
party. Failure of the owner to make the required disclosure under
subsection (a)(6) shall not:
(1) invalidate the transfer of the property; or
(2) create any encumbrance or lien upon any legal or equitable
title to the property.
SECTION 225. IC 32-25.5-3-11, AS ADDED BY P.L.27-2017,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
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UPON PASSAGE]: Sec. 11. (a) If:
(1) a meeting of a homeowners association is called in accordance
with the requirements of the homeowners association's governing
documents, regardless of whether the meeting is:
(A) an annual meeting;
(B) a special meeting; or
(C) any other meeting called by the board or the members;
(2) a purpose of the meeting is the election or appointment of
members of the board of directors of the homeowners association;
and
(3) the number of members of the homeowners association in
attendance at the meeting does not constitute a quorum as defined
in the governing documents of the homeowners association;
the members of the board of directors at the time of the meeting may
continue to serve until their successors are selected and qualified,
regardless of the length of any member's term or the number of terms
the member has served.
(b) The failure of a homeowners association to achieve a quorum at
a meeting described in subsection (a) does not exempt any member
from, or create an affirmative defense for any member with respect to:
(1) the member's obligations under the homeowners association's
governing documents; or
(2) the member's obligations to otherwise abide by covenants
regulating:
(A) the use of real estate; or
(B) the payment of assessments.
(c) If a homeowners association's governing documents permit both
the homeowners association and members of the homeowners
association to enforce provisions of the governing documents, the
homeowners association has authority both:
(1) as a corporation or an entity; and
(2) as derived from the members of the homeowners association's
board;
to enforce the governing documents of the homeowners association.
(d) Beginning after the effective date of this subsection as added
by HEA 1210-2026, only members of the homeowners association
who use their property as a homestead (as defined in
IC 6-1.1-12-37) are eligible to cast a vote on a matter regarding
either of the following:
(1) A prohibition or restriction of an owner of a privately
owned residential property from using the property as a
rental property.
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(2) A prohibition or restriction regarding the use of property
as a rental property.
(e) A developer is not subject to subsection (d) while the
developer maintains ownership of lots within the homeowners
association. For purposes of this subsection, "developer" means
any person or entity that is engaged in the business of acquiring
land for the purpose of:
(1) improving the land, including the subdivision of land for
the purpose of constructing a residential building or structure
on a lot; and
(2) selling or leasing a residential building or structure to
another person.
SECTION 226. IC 36-1-12-3, AS AMENDED BY P.L.86-2025,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2026 (RETROACTIVE)]: Sec. 3. (a) The board may
purchase or lease materials in the manner provided in IC 5-22 and
perform any public work, by means of its own workforce, without
awarding a contract whenever the cost of that public work project is
estimated to be less than three hundred seventy-five thousand dollars
($375,000), adjusted annually by the an amount equal to the
unadjusted percentage change for all items in the Consumer Price
Index for all Urban Consumers as published by the United States
Bureau of Labor Statistics for the immediately preceding year. On
or before January 15, 2026, and on or before January 1 of each
year thereafter, the department of local government finance shall
annually publish the adjusted cost estimate threshold for the current
year, determined in the manner required by this subsection, on the
department's website. in the Indiana Register under IC 4-22-7-7. For
purposes of applying the annual cost estimate threshold
adjustment, the annual percentage change is applied to the
adjusted amount for the immediately preceding year.
(b) Before a board may perform any work under this section by
means of its own workforce, the political subdivision or agency must
have a group of employees on its staff who are capable of performing
the construction, maintenance, and repair applicable to that work.
(c) For purposes of this subsection, determining the cost of a public
work project, the cost includes:
(1) the actual cost of materials, labor, equipment, and rental;
(2) a reasonable rate for use of trucks and heavy equipment
owned; and
(3) all other expenses incidental to the performance of the project.
(b) (d) This subsection applies only to a municipality or a county.
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The workforce of a municipality or county may perform a public work
described in subsection (a) only if:
(1) the workforce, through demonstrated skills, training, or
expertise, is capable of performing the public work; and
(2) for a public work project under subsection (a) whose cost is
estimated to be more than one hundred thousand dollars
($100,000), the board:
(A) publishes a notice under IC 5-3-1 that:
(i) describes the public work that the board intends to
perform with its own workforce; and
(ii) sets forth the projected cost of each component of the
public work as described in subsection (a); and
(B) determines at a public meeting that it is in the public
interest to perform the public work with the board's own
workforce.
A public work project performed by a board's own workforce must be
inspected and accepted as complete in the same manner as a public
work project performed under a contract awarded after receiving bids.
(c) (e) When the project involves the rental of equipment with an
operator furnished by the owner, or the installation or application of
materials by the supplier of the materials, the project is considered to
be a public work project and subject to this chapter. However, an
annual contract may be awarded for equipment rental and materials to
be installed or applied during a calendar or fiscal year if the proposed
project or projects are described in the bid specifications.
(d) (f) A board of aviation commissioners or an airport authority
board may purchase or lease materials in the manner provided in
IC 5-22 and perform any public work by means of its own workforce
and owned or leased equipment, in the construction, maintenance, and
repair of any airport roadway, runway, taxiway, or aircraft parking
apron whenever the cost of that public work project is estimated to be
less than one hundred fifty thousand dollars ($150,000).
(e) (g) Municipal and county hospitals must comply with this
chapter for all contracts for public work that are financed in whole or
in part with cumulative building fund revenue, as provided in section
1(c) of this chapter. However, if the cost of the public work is
estimated to be less than fifty thousand dollars ($50,000), as reflected
in the board minutes, the hospital board may have the public work done
without receiving bids, by purchasing the materials and performing the
work by means of its own workforce and owned or leased equipment.
(f) (h) If a public works project involves a structure, an
improvement, or a facility under the control of a public highway
HEA 1210 — CC 1
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department that is under the political control of a unit (as defined in
IC 36-1-2-23) and involved in the construction, maintenance, or repair
of a public highway (as defined in IC 9-25-2-4), the department may
not artificially divide the project to bring any part of the project under
this section.
SECTION 227. IC 36-1-12.5-10, AS AMENDED BY P.L.233-2015,
SECTION 331, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 10. The governing body shall
(1) provide submit the following to the director of the
department of local government finance finance's computer
gateway not more than sixty (60) days after the date of execution
of the guaranteed savings contract:
(A) (1) A copy of the executed guaranteed savings contract.
(B) (2) The:
(i) (A) energy or water consumption costs;
(ii) (B) wastewater usage costs; and
(iii) (C) billable revenues, if any;
before the date of execution of the guaranteed savings
contract. and
(C) (3) The documentation using industry engineering
standards for:
(i) (A) stipulated savings; and
(ii) (B) related capital expenditures. and
(2) annually report to the director of the department of local
government finance, in accordance with procedures established
by the department, the savings resulting in the previous year from
the guaranteed savings contract or utility efficiency program.
SECTION 228. IC 36-1-12.5-12, AS AMENDED BY P.L.233-2015,
SECTION 332, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 12. (a) An improvement that is not
causally connected to a conservation measure may be included in a
guaranteed savings contract if:
(1) the total value of the improvement does not exceed fifteen
percent (15%) of the total value of the guaranteed savings
contract; and
(2) either:
(A) the improvement is necessary to conform to a law, a rule,
or an ordinance; or
(B) an analysis within the guaranteed savings contract
demonstrates that:
(i) there is an economic advantage to the political
subdivision in implementing an improvement as part of the
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guaranteed savings contract; and
(ii) the savings justification for the improvement is
documented by industry engineering standards.
(b) The information required under subsection (a) must be reported
to the director of the department of local government finance.
SECTION 229. IC 36-1-20-3.6 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 3.6. (a) Except as provided in
subsections (c) and (d), a unit may not adopt or enforce an
ordinance, resolution, regulation, policy, or rule that:
(1) prohibits or restricts an owner of a privately owned
residential property from using the property as a rental
property; or
(2) has the effect of prohibiting or restricting the use of
property as a rental property.
(b) This section does not prohibit a unit from enforcing any:
(1) generally applicable health and safety regulations;
(2) building codes, fire codes, or reasonable occupancy
standards; or
(3) registration or inspection requirements set forth in this
chapter, provided the requirements do not operate to impose
a cap or limit described in subsection (a).
(c) A unit that has adopted an ordinance, resolution, regulation,
policy, or rule before January 1, 2026, other than an ordinance,
resolution, regulation, policy, or rule described in subsection (d),
that does not comply with subsection (a) is exempt from the
provisions of this section until January 1, 2028, at which time a
unit described in this subsection shall comply with this section.
(d) A unit that has adopted a short term rental ordinance,
resolution, regulation, policy, or rule before January 1, 2018, in
compliance with IC 36-1-24 (as enacted in HEA 1035-2018) is
exempt from this section.
SECTION 230. IC 36-1-24-6, AS ADDED BY P.L.73-2018,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2018 (RETROACTIVE)]: Sec. 6. (a) As used in this chapter,
"short term rental" means the rental of:
(1) a single family home;
(2) a dwelling unit in a single family home;
(3) a dwelling unit in a two-family or multifamily dwelling; or
(4) a dwelling unit in a condominium, cooperative, or time share;
for terms of less than thirty (30) days at a time through a short term
rental platform. The term includes a detached accessory structure,
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including a guest house, or other living quarters that are intended for
human habitation, if the entire property is designated for a single family
residential use.
(b) The term does not include property that is used for any
nonresidential use. For purposes of section 1 of this chapter, the
term does not include a private, owner occupied business with two
(2) to ten (10) guest rooms where overnight accommodations and
a morning meal are provided to the public for compensation and
that is operated primarily as a business.
SECTION 231. IC 36-2-3-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2027]: Sec. 7. (a) The fiscal body
shall hold its meetings in the county seat, in the county auditor's office,
or in another location provided by the county executive and approved
by the fiscal body.
(b) The fiscal body:
(1) shall hold a regular meeting in January after its election, for
the purpose of organization and other business;
(2) shall hold a regular meeting annually, as prescribed by
IC 6-1.1-17, to adopt the county's annual budget and tax rate;
(3) may hold a special meeting under subsection (c) or (d); and
(4) in the case of a county subject to IC 36-2-3.5, shall hold
meetings at a regularly scheduled time each month that does not
conflict with the meetings of the county executive.
(c) A special meeting of the fiscal body may be called:
(1) by the county auditor or the president of the fiscal body; or
(2) by a majority of the members of the fiscal body.
At least forty-eight (48) hours before the meeting, the auditor,
president, or members calling the meeting shall give written notice of
the meeting to each member of the fiscal body and publish, at least one
(1) day before the meeting, the notice in accordance with IC 5-3-1-4.
IC 5-3-1-1.5. This subsection does not apply to a meeting called to deal
with an emergency under IC 5-14-1.5-5.
(d) If a court orders the county auditor to make an expenditure of
county money for a purpose for which an appropriation has not been
made, the auditor shall immediately call an emergency meeting of the
fiscal body to discuss the matter. Notwithstanding subsection (c), the
meeting must be held within three (3) working days of the receipt of
the order by the auditor, and notice of the meeting day, time, and places
place is sufficient if:
(1) given by telephone to the members of the fiscal body; and
(2) given according to IC 5-14-1.5.
SECTION 232. IC 36-2-11-14.5, AS AMENDED BY P.L.127-2017,
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SECTION 79, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 14.5. (a) As used in this section,
"manufactured home" has the meaning set forth in IC 9-13-2-96(b).
IC 9-13-2-96(a). The term includes a mobile home (as defined in
IC 9-13-2-103.2).
(b) As used in this section, "mobile home" has the meaning set forth
in IC 6-1.1-7-1(b). IC 9-13-2-103.2. The term includes a
manufactured home (as defined in IC 9-13-2-96(a)).
(c) A person must do the following to record a purchase contract
that is subject to IC 9-17-6-17:
(1) Submit the following to the county recorder:
(A) A copy of the title to the manufactured home or mobile
home.
(B) An affidavit stating whether the contract requires the seller
or the buyer to pay the property taxes imposed on the
manufactured home or mobile home.
(2) Pay any applicable recording fees.
(d) The county recorder shall record a purchase contract submitted
for recording under IC 9-17-6-17 by a person who complies with
subsection (c). The county recorder shall do the following:
(1) Provide the information described in subsection (c)(1) to the
county treasurer with respect to each contract recorded under this
section.
(2) Notify the township assessor of the township in which the
mobile home is located, or to which the mobile home will be
moved, that a contract for the sale of the mobile home has been
recorded. If there is no township assessor for the township, the
county recorder shall provide the notice required by this
subdivision to the county assessor.
SECTION 233. IC 36-4-3-19, AS AMENDED BY P.L.104-2022,
SECTION 160, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 19. (a) If disannexation is ordered
under this chapter by the works board of a municipality and no appeal
is taken, the clerk of the municipality shall, without compensation and
not later than ten (10) days after the order is made, make and certify a
complete transcript of the disannexation proceedings to the auditor of
each county in which the disannexed lots or lands lie and to the office
of the secretary of state. The county auditor shall list those lots or lands
appropriately for taxation. The proceedings of the works board shall not
be certified to the county auditor or to the office of the secretary of
state if an appeal to the circuit court has been taken.
(b) In all proceedings begun in or appealed to the circuit court, if
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vacation or disannexation is ordered, the clerk of the court shall
immediately after the judgment of the court, or after a decision on
appeal to the supreme court or court of appeals if the judgment on
appeal is not reversed, certify the judgment of the circuit court, as
affirmed or modified, to each of the following:
(1) The auditor of each county in which the lands or lots affected
lie, on receipt of one dollar ($1) for the making and certifying of
the transcript from the petitioners for the disannexation.
(2) The office of the secretary of state.
(3) The circuit court clerk of each county in which the lands or
lots affected are located.
(4) The county election board of each county in which the lands
or lots affected are located.
(5) If a board of registration exists, the board of each county in
which the lands or lots affected are located.
(6) The office of census data established by IC 2-5-1.1-12.2.
(c) The county auditor shall forward a list of lots or lands
disannexed under this section to the following:
(1) The county highway department of each county in which the
lands or lots affected are located.
(2) The county surveyor of each county in which the lands or lots
affected are located.
(3) Each plan commission, if any, that lost or gained jurisdiction
over the disannexed territory.
(4) The township trustee of each township that lost or gained
jurisdiction over the disannexed territory.
(5) The sheriff of each county in which the lands or lots affected
are located.
(6) The office of the secretary of state.
(7) The office of census data established by IC 2-5-1.1-12.2.
(8) The department of local government finance, not later than
August 1, in the manner described by the department.
(9) The state GIS officer (as defined in IC 4-23-7.3-10), not
later than August 1, in the manner prescribed by the state
GIS officer (as defined in IC 4-23-7.3-10).
The county auditor may require the clerk of the municipality to furnish
an adequate number of copies of the list of disannexed lots or lands or
may charge the clerk a fee for photoreproduction of the list.
(d) A disannexation described by this section takes effect upon the
clerk of the municipality filing the order with:
(1) the county auditor of each county in which the annexed
territory is located; and
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(2) the circuit court clerk, or if a board of registration exists, the
board of each county in which the annexed territory is located.
(e) The clerk of the municipality shall notify the office of the
secretary of state and the office of census data established by
IC 2-5-1.1-12.2 of the date a disannexation is effective under this
chapter.
SECTION 234. IC 36-4-3-22, AS AMENDED BY P.L.38-2021,
SECTION 84, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 22. (a) The clerk of the municipality shall file:
(1) each annexation ordinance against which:
(A) a remonstrance or an appeal has not been filed during the
period permitted under this chapter; or
(B) a remonstrance was filed without a sufficient number of
signatures to meet the requirements of section 11.3(c) of this
chapter, in the case of an annexation for which an annexation
ordinance was adopted after June 30, 2015; or
(2) the certified copy of a final and unappealable judgment
ordering an annexation to take place;
with the county auditor, circuit court clerk, and board of registration (if
a board of registration exists) of each county in which the annexed
territory is located, the office of the secretary of state, and the office of
census data established by IC 2-5-1.1-12.2. The clerk of the
municipality shall record each annexation ordinance adopted under this
chapter in the office of the county recorder of each county in which the
annexed territory is located.
(b) The ordinance or judgment must be filed and recorded no later
than ninety (90) days after:
(1) the expiration of the period permitted for a remonstrance or
appeal;
(2) the delivery of a certified order under section 15 of this
chapter; or
(3) the date the county auditor files the written certification with
the legislative body under section 11.2 of this chapter, in the case
of an annexation described in subsection (a)(1)(B).
(c) Failure to record the annexation ordinance as provided in
subsection (a) does not invalidate the ordinance.
(d) The county auditor shall forward a copy of any annexation
ordinance filed under this section to the following:
(1) The county highway department of each county in which the
lots or lands affected are located.
(2) The county surveyor of each county in which the lots or lands
affected are located.
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(3) Each plan commission, if any, that lost or gained jurisdiction
over the annexed territory.
(4) The sheriff of each county in which the lots or lands affected
are located.
(5) The township trustee of each township that lost or gained
jurisdiction over the annexed territory.
(6) The office of the secretary of state.
(7) The office of census data established by IC 2-5-1.1-12.2.
(8) The department of local government finance, not later than
August 1, in the manner described by the department.
(9) The state GIS officer (as defined in IC 4-23-7.3-10), not
later than August 1, in the manner prescribed by the state
GIS officer (as defined in IC 4-23-7.3-10).
(e) The county auditor may require the clerk of the municipality to
furnish an adequate number of copies of the annexation ordinance or
may charge the clerk a fee for photoreproduction of the ordinance. The
county auditor shall notify the office of the secretary of state and the
office of census data established by IC 2-5-1.1-12.2 of the date that the
annexation ordinance is effective under this chapter.
(f) The county auditor or county surveyor shall, upon determining
that an annexation ordinance has become effective under this chapter,
indicate the annexation upon the property taxation records maintained
in the office of the auditor or the office of the county surveyor.
SECTION 235. IC 36-7-4-920 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2027]: Sec. 920. (a) The board of
zoning appeals shall fix a reasonable time for the hearing of
administrative appeals, exceptions, uses, and variances.
(b) Public notice in accordance with IC 5-3-1-2 and IC 5-3-1-4
IC 5-3-1-1.5 and due notice to interested parties shall be given at least
ten (10) days before the date set for the hearing.
(c) The party taking the appeal, or applying for the exception, use,
or variance, may be required to assume the cost of public notice and
due notice to interested parties. At the hearing, each party may appear
in person, by agent, or by attorney.
(d) The board shall, by rule, determine who are interested parties,
how notice is to be given to them, and who is required to give that
notice.
(e) The staff (as defined in the zoning ordinance), if any, may appear
before the board at the hearing and present evidence in support of or in
opposition to the granting of a variance or the determination of any
other matter.
(f) Other persons may appear and present relevant evidence.
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(g) A person may not communicate with any member of the board
before the hearing with intent to influence the member's action on a
matter pending before the board. Not less than five (5) days before the
hearing, however, the staff (as defined in the zoning ordinance), if any,
may file with the board a written statement setting forth any facts or
opinions relating to the matter.
(h) The board may require any party adverse to any pending petition
to enter a written appearance specifying the party's name and address.
If the written appearance is entered more than four (4) days before the
hearing, the board may also require the petitioner to furnish each
adverse party with a copy of the petition and a plot plan of the property
involved.
SECTION 236. IC 36-7-14-39, AS AMENDED BY P.L.181-2025,
SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 39. (a) As used in this section:
"Allocation area" means that part of a redevelopment project area
to which an allocation provision of a declaratory resolution adopted
under section 15 of this chapter refers for purposes of distribution and
allocation of property taxes.
"Base assessed value" means, subject to subsection (j), the
following:
(1) If an allocation provision is adopted after June 30, 1995, in a
declaratory resolution or an amendment to a declaratory
resolution establishing an economic development area:
(A) the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A), the net
assessed value of property that is assessed as residential
property under the rules of the department of local government
finance, within the allocation area, as finally determined for
the current assessment date.
(2) If an allocation provision is adopted after June 30, 1997, in a
declaratory resolution or an amendment to a declaratory
resolution establishing a redevelopment project area:
(A) the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A), the net
assessed value of property that is assessed as residential
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property under the rules of the department of local government
finance, as finally determined for the current assessment date.
(3) If:
(A) an allocation provision adopted before June 30, 1995, in
a declaratory resolution or an amendment to a declaratory
resolution establishing a redevelopment project area expires
after June 30, 1997; and
(B) after June 30, 1997, a new allocation provision is included
in an amendment to the declaratory resolution;
the net assessed value of all the property as finally determined for
the assessment date immediately preceding the effective date of
the allocation provision adopted after June 30, 1997, as adjusted
under subsection (h).
(4) Except as provided in subdivision (5), for all other allocation
areas, the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h).
(5) If an allocation area established in an economic development
area before July 1, 1995, is expanded after June 30, 1995, the
definition in subdivision (1) applies to the expanded part of the
area added after June 30, 1995.
(6) If an allocation area established in a redevelopment project
area before July 1, 1997, is expanded after June 30, 1997, the
definition in subdivision (2) applies to the expanded part of the
area added after June 30, 1997.
Except as provided in section 39.3 of this chapter, "property taxes"
means taxes imposed under IC 6-1.1 on real property. However, upon
approval by a resolution of the redevelopment commission adopted
before June 1, 1987, "property taxes" also includes taxes imposed
under IC 6-1.1 on depreciable personal property. If a redevelopment
commission adopted before June 1, 1987, a resolution to include within
the definition of property taxes, taxes imposed under IC 6-1.1 on
depreciable personal property that has a useful life in excess of eight
(8) years, the commission may by resolution determine the percentage
of taxes imposed under IC 6-1.1 on all depreciable personal property
that will be included within the definition of property taxes. However,
the percentage included must not exceed twenty-five percent (25%) of
the taxes imposed under IC 6-1.1 on all depreciable personal property.
(b) A declaratory resolution adopted under section 15 of this chapter
on or before the allocation deadline determined under subsection (i)
may include a provision with respect to the allocation and distribution
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of property taxes for the purposes and in the manner provided in this
section. A declaratory resolution previously adopted may include an
allocation provision by the amendment of that declaratory resolution on
or before the allocation deadline determined under subsection (i) in
accordance with the procedures required for its original adoption. A
declaratory resolution or amendment that establishes an allocation
provision must include a specific finding of fact, supported by
evidence, that the adoption of the allocation provision will result in
new property taxes in the area that would not have been generated but
for the adoption of the allocation provision. For an allocation area
established before July 1, 1995, the expiration date of any allocation
provisions for the allocation area is June 30, 2025, or the last date of
any obligations that are outstanding on July 1, 2015, whichever is later.
A declaratory resolution or an amendment that establishes an allocation
provision after June 30, 1995, must specify an expiration date for the
allocation provision. For an allocation area established before July 1,
2008, the expiration date may not be more than thirty (30) years after
the date on which the allocation provision is established. For an
allocation area established after June 30, 2008, the expiration date may
not be more than twenty-five (25) years after the date on which the first
obligation was incurred to pay principal and interest on bonds or lease
rentals on leases payable from tax increment revenues. However, with
respect to bonds or other obligations that were issued before July 1,
2008, if any of the bonds or other obligations that were scheduled when
issued to mature before the specified expiration date and that are
payable only from allocated tax proceeds with respect to the allocation
area remain outstanding as of the expiration date, the allocation
provision does not expire until all of the bonds or other obligations are
no longer outstanding. Notwithstanding any other law, in the case of an
allocation area that is established after June 30, 2019, and that is
located in a redevelopment project area described in section
25.1(c)(3)(C) of this chapter, an economic development area described
in section 25.1(c)(3)(C) of this chapter, or an urban renewal project
area described in section 25.1(c)(3)(C) of this chapter, the expiration
date of the allocation provision may not be more than thirty-five (35)
years after the date on which the allocation provision is established.
The allocation provision may apply to all or part of the redevelopment
project area. The allocation provision must require that any property
taxes subsequently levied by or for the benefit of any public body
entitled to a distribution of property taxes on taxable property in the
allocation area be allocated and distributed as follows:
(1) Except as otherwise provided in this section, the proceeds of
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the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made;
or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
the respective taxing units.
(2) This subdivision applies to a fire protection territory
established after December 31, 2022. If a unit becomes a
participating unit of a fire protection territory that is established
after a declaratory resolution is adopted under section 15 of this
chapter, the excess of the proceeds of the property taxes
attributable to an increase in the property tax rate for the
participating unit of a fire protection territory:
(A) except as otherwise provided by this subdivision, shall be
determined as follows:
STEP ONE: Divide the unit's tax rate for fire protection for
the year before the establishment of the fire protection
territory by the participating unit's tax rate as part of the fire
protection territory.
STEP TWO: Subtract the STEP ONE amount from one (1).
STEP THREE: Multiply the STEP TWO amount by the
allocated property tax attributable to the participating unit of
the fire protection territory; and
(B) to the extent not otherwise included in subdivisions (1)
and (3), the amount determined under STEP THREE of clause
(A) shall be allocated to and distributed in the form of an
allocated property tax revenue pass back to the participating
unit of the fire protection territory for the assessment date with
respect to which the allocation is made.
However, if the redevelopment commission determines that it is
unable to meet its debt service obligations with regards to the
allocation area without all or part of the allocated property tax
revenue pass back to the participating unit of a fire protection area
under this subdivision, then the allocated property tax revenue
pass back under this subdivision shall be reduced by the amount
necessary for the redevelopment commission to meet its debt
service obligations of the allocation area. The calculation under
this subdivision must be made by the redevelopment commission
in collaboration with the county auditor and the applicable fire
protection territory. Any calculation determined according to
clause (A) must be submitted to the department of local
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government finance in the manner prescribed by the department
of local government finance. The department of local government
finance shall verify the accuracy of each calculation.
(3) The excess of the proceeds of the property taxes imposed for
the assessment date with respect to which the allocation and
distribution is made that are attributable to taxes imposed after
being approved by the voters in a referendum or local public
question conducted after April 30, 2010, not otherwise included
in subdivisions (1) and (2) shall be allocated to and, when
collected, paid into the funds of the taxing unit for which the
referendum or local public question was conducted.
(4) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivisions (1), (2), and
(3) shall be allocated to the redevelopment district and, when
collected, paid into an allocation fund for that allocation area that
may be used by the redevelopment district only to do one (1) or
more of the following:
(A) Pay the principal of and interest on any obligations
payable solely from allocated tax proceeds which are incurred
by the redevelopment district for the purpose of financing or
refinancing the redevelopment of that allocation area.
(B) Establish, augment, or restore the debt service reserve for
bonds payable solely or in part from allocated tax proceeds in
that allocation area.
(C) Pay the principal of and interest on bonds payable from
allocated tax proceeds in that allocation area and from the
special tax levied under section 27 of this chapter.
(D) Pay the principal of and interest on bonds issued by the
unit to pay for local public improvements that are physically
located in or physically connected to that allocation area.
(E) Pay premiums on the redemption before maturity of bonds
payable solely or in part from allocated tax proceeds in that
allocation area.
(F) Make payments on leases payable from allocated tax
proceeds in that allocation area under section 25.2 of this
chapter.
(G) Reimburse the unit for expenditures made by it for local
public improvements (which include buildings, parking
facilities, and other items described in section 25.1(a) of this
chapter) that are physically located in or physically connected
to that allocation area.
(H) Reimburse the unit for rentals paid by it for a building or
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parking facility that is physically located in or physically
connected to that allocation area under any lease entered into
under IC 36-1-10.
(I) For property taxes first due and payable before January 1,
2009, pay all or a part of a property tax replacement credit to
taxpayers in an allocation area as determined by the
redevelopment commission. This credit equals the amount
determined under the following STEPS for each taxpayer in a
taxing district (as defined in IC 6-1.1-1-20) that contains all or
part of the allocation area:
STEP ONE: Determine that part of the sum of the amounts
under IC 6-1.1-21-2(g)(1)(A), IC 6-1.1-21-2(g)(2),
IC 6-1.1-21-2(g)(3), IC 6-1.1-21-2(g)(4), and
IC 6-1.1-21-2(g)(5) (before their repeal) that is attributable to
the taxing district.
STEP TWO: Divide:
(i) that part of each county's eligible property tax
replacement amount (as defined in IC 6-1.1-21-2 (before its
repeal)) for that year as determined under IC 6-1.1-21-4
(before its repeal) that is attributable to the taxing district;
by
(ii) the STEP ONE sum.
STEP THREE: Multiply:
(i) the STEP TWO quotient; times
(ii) the total amount of the taxpayer's taxes (as defined in
IC 6-1.1-21-2 (before its repeal)) levied in the taxing district
that have been allocated during that year to an allocation
fund under this section.
If not all the taxpayers in an allocation area receive the credit
in full, each taxpayer in the allocation area is entitled to
receive the same proportion of the credit. A taxpayer may not
receive a credit under this section and a credit under section
39.5 of this chapter (before its repeal) in the same year.
(J) Pay expenses incurred by the redevelopment commission
for local public improvements that are in the allocation area or
serving the allocation area. Public improvements include
buildings, parking facilities, and other items described in
section 25.1(a) of this chapter.
(K) Reimburse public and private entities for expenses
incurred in training employees of industrial facilities that are
located:
(i) in the allocation area; and
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(ii) on a parcel of real property that has been classified as
industrial property under the rules of the department of local
government finance.
However, the total amount of money spent for this purpose in
any year may not exceed the total amount of money in the
allocation fund that is attributable to property taxes paid by the
industrial facilities described in this clause. The
reimbursements under this clause must be made within three
(3) years after the date on which the investments that are the
basis for the increment financing are made.
(L) Pay the costs of carrying out an eligible efficiency project
(as defined in IC 36-9-41-1.5) within the unit that established
the redevelopment commission. However, property tax
proceeds may be used under this clause to pay the costs of
carrying out an eligible efficiency project only if those
property tax proceeds exceed the amount necessary to do the
following:
(i) Make, when due, any payments required under clauses
(A) through (K), including any payments of principal and
interest on bonds and other obligations payable under this
subdivision, any payments of premiums under this
subdivision on the redemption before maturity of bonds, and
any payments on leases payable under this subdivision.
(ii) Make any reimbursements required under this
subdivision.
(iii) Pay any expenses required under this subdivision.
(iv) Establish, augment, or restore any debt service reserve
under this subdivision.
(M) Expend money and provide financial assistance as
authorized in section 12.2(a)(27) of this chapter.
(N) Expend revenues that are allocated for police and fire
services on both capital expenditures and operating expenses
as authorized in section 12.2(a)(28) of this chapter.
The allocation fund may not be used for operating expenses of the
commission.
(5) Except as provided in subsection (g), before June 15 of each
year, the commission shall do the following:
(A) Determine the amount, if any, by which the assessed value
of the taxable property in the allocation area for the most
recent assessment date minus the base assessed value, when
multiplied by the estimated tax rate of the allocation area, will
exceed the amount of assessed value needed to produce the
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property taxes necessary to make, when due, principal and
interest payments on bonds described in subdivision (4), plus
the amount necessary for other purposes described in
subdivision (4).
(B) Provide a written notice to the county auditor, the fiscal
body of the county or municipality that established the
department of redevelopment, and the officers who are
authorized to fix budgets, tax rates, and tax levies under
IC 6-1.1-17-5 for each of the other taxing units that is wholly
or partly located within the allocation area. The county auditor,
upon receiving the notice, shall forward this notice (in an
electronic format) to the department of local government
finance not later than June 15 of each year. The notice must:
(i) state the amount, if any, of excess assessed value that the
commission has determined may be allocated to the
respective taxing units in the manner prescribed in
subdivision (1); or
(ii) state that the commission has determined that there is no
excess assessed value that may be allocated to the respective
taxing units in the manner prescribed in subdivision (1).
The county auditor shall allocate to the respective taxing units
the amount, if any, of excess assessed value determined by the
commission. The commission may not authorize an allocation
of assessed value to the respective taxing units under this
subdivision if to do so would endanger the interests of the
holders of bonds described in subdivision (4) or lessors under
section 25.3 of this chapter. If a commission fails to provide
the notice under this clause, the county auditor shall
allocate five percent (5%) of the assessed value in the
allocation area that is used to calculate the allocation and
distribution of allocated tax proceeds under this section to
the respective taxing units. However, if the commission
notifies the county auditor and the department of local
government finance, no later than July 1, that it is unable
to meet its debt service obligations with regard to the
allocation area without all or part of the allocated tax
proceeds attributed to the assessed value that has been
allocated to the respective taxing units, then the county
auditor may not allocate five percent (5%) of the assessed
value in the allocation area that is used to calculate the
allocation and distribution of allocated tax proceeds under
this section to the respective taxing units.
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(C) If:
(i) the amount of excess assessed value determined by the
commission is expected to generate more than two hundred
percent (200%) of the amount of allocated tax proceeds
necessary to make, when due, principal and interest
payments on bonds described in subdivision (4); plus
(ii) the amount necessary for other purposes described in
subdivision (4);
the commission shall submit to the legislative body of the unit
its determination of the excess assessed value that the
commission proposes to allocate to the respective taxing units
in the manner prescribed in subdivision (1). The legislative
body of the unit may approve the commission's determination
or modify the amount of the excess assessed value that will be
allocated to the respective taxing units in the manner
prescribed in subdivision (1).
(6) Notwithstanding subdivision (5), in the case of an allocation
area that is established after June 30, 2019, and that is located in
a redevelopment project area described in section 25.1(c)(3)(C)
of this chapter, an economic development area described in
section 25.1(c)(3)(C) of this chapter, or an urban renewal project
area described in section 25.1(c)(3)(C) of this chapter, for each
year the allocation provision is in effect, if the amount of excess
assessed value determined by the commission under subdivision
(5)(A) is expected to generate more than two hundred percent
(200%) of:
(A) the amount of allocated tax proceeds necessary to make,
when due, principal and interest payments on bonds described
in subdivision (4) for the project; plus
(B) the amount necessary for other purposes described in
subdivision (4) for the project;
the amount of the excess assessed value that generates more than
two hundred percent (200%) of the amounts described in clauses
(A) and (B) shall be allocated to the respective taxing units in the
manner prescribed by subdivision (1).
(c) For the purpose of allocating taxes levied by or for any taxing
unit or units, the assessed value of taxable property in a territory in the
allocation area that is annexed by any taxing unit after the effective
date of the allocation provision of the declaratory resolution is the
lesser of:
(1) the assessed value of the property for the assessment date with
respect to which the allocation and distribution is made; or
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(2) the base assessed value.
(d) Property tax proceeds allocable to the redevelopment district
under subsection (b)(4) may, subject to subsection (b)(5), be
irrevocably pledged by the redevelopment district for payment as set
forth in subsection (b)(4).
(e) Notwithstanding any other law, each assessor shall, upon
petition of the redevelopment commission, reassess the taxable
property situated upon or in, or added to, the allocation area, effective
on the next assessment date after the petition.
(f) Notwithstanding any other law, the assessed value of all taxable
property in the allocation area, for purposes of tax limitation, property
tax replacement, and formulation of the budget, tax rate, and tax levy
for each political subdivision in which the property is located is the
lesser of:
(1) the assessed value of the property as valued without regard to
this section; or
(2) the base assessed value.
(g) If any part of the allocation area is located in an enterprise zone
created under IC 5-28-15, the unit that designated the allocation area
shall create funds as specified in this subsection. A unit that has
obligations, bonds, or leases payable from allocated tax proceeds under
subsection (b)(4) shall establish an allocation fund for the purposes
specified in subsection (b)(4) and a special zone fund. Such a unit
shall, until the end of the enterprise zone phase out period, deposit each
year in the special zone fund any amount in the allocation fund derived
from property tax proceeds in excess of those described in subsection
(b)(1), (b)(2), and (b)(3) from property located in the enterprise zone
that exceeds the amount sufficient for the purposes specified in
subsection (b)(4) for the year. The amount sufficient for purposes
specified in subsection (b)(4) for the year shall be determined based on
the pro rata portion of such current property tax proceeds from the part
of the enterprise zone that is within the allocation area as compared to
all such current property tax proceeds derived from the allocation area.
A unit that has no obligations, bonds, or leases payable from allocated
tax proceeds under subsection (b)(4) shall establish a special zone fund
and deposit all the property tax proceeds in excess of those described
in subsection (b)(1), (b)(2), and (b)(3) in the fund derived from
property tax proceeds in excess of those described in subsection (b)(1),
(b)(2), and (b)(3) from property located in the enterprise zone. The unit
that creates the special zone fund shall use the fund (based on the
recommendations of the urban enterprise association) for programs in
job training, job enrichment, and basic skill development that are
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designed to benefit residents and employers in the enterprise zone or
other purposes specified in subsection (b)(4), except that where
reference is made in subsection (b)(4) to allocation area it shall refer
for purposes of payments from the special zone fund only to that part
of the allocation area that is also located in the enterprise zone. Those
programs shall reserve at least one-half (1/2) of their enrollment in any
session for residents of the enterprise zone.
(h) The state board of accounts and department of local government
finance shall make the rules and prescribe the forms and procedures
that they consider expedient for the implementation of this chapter.
After each reassessment in an area under a reassessment plan prepared
under IC 6-1.1-4-4.2, the department of local government finance
county auditor shall, on forms prescribed by the department of
local government finance, adjust the base assessed value one (1) time
to neutralize any effect of the reassessment of the real property in the
area on the property tax proceeds allocated to the redevelopment
district under this section. After each annual adjustment under
IC 6-1.1-4-4.5, the department of local government finance county
auditor shall, on forms prescribed by the department of local
government finance, adjust the base assessed value one (1) time to
neutralize any effect of the annual adjustment on the property tax
proceeds allocated to the redevelopment district under this section.
However, the adjustments under this subsection:
(1) may not include the effect of phasing in assessed value due to
property tax abatements under IC 6-1.1-12.1;
(2) may not produce less property tax proceeds allocable to the
redevelopment district under subsection (b)(4) than would
otherwise have been received if the reassessment under the
reassessment plan or the annual adjustment had not occurred; and
(3) may decrease base assessed value only to the extent that
assessed values in the allocation area have been decreased due to
annual adjustments or the reassessment under the reassessment
plan.
Assessed value increases attributable to the application of an abatement
schedule under IC 6-1.1-12.1 may not be included in the base assessed
value of an allocation area. The department of local government
finance may prescribe procedures for county and township officials to
follow to assist the department in making the adjustments. The county
auditor shall, in the manner prescribed by the department of local
government finance, submit the forms required by this subsection
to the department of local government finance no later than July
15 of each year.
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(i) The allocation deadline referred to in subsection (b) is
determined in the following manner:
(1) The initial allocation deadline is December 31, 2011.
(2) Subject to subdivision (3), the initial allocation deadline and
subsequent allocation deadlines are automatically extended in
increments of five (5) years, so that allocation deadlines
subsequent to the initial allocation deadline fall on December 31,
2016, and December 31 of each fifth year thereafter.
(3) At least one (1) year before the date of an allocation deadline
determined under subdivision (2), the general assembly may enact
a law that:
(A) terminates the automatic extension of allocation deadlines
under subdivision (2); and
(B) specifically designates a particular date as the final
allocation deadline.
(j) If a redevelopment commission adopts a declaratory resolution
or an amendment to a declaratory resolution that contains an allocation
provision and the redevelopment commission makes either of the
filings required under section 17(e) of this chapter after the first
anniversary of the effective date of the allocation provision, the auditor
of the county in which the unit is located shall compute the base
assessed value for the allocation area using the assessment date
immediately preceding the later of:
(1) the date on which the documents are filed with the county
auditor; or
(2) the date on which the documents are filed with the department
of local government finance.
(k) For an allocation area established after June 30, 2025,
"residential property" refers to the assessed value of property that is
allocated to the one percent (1%) homestead land and improvement
categories in the county tax and billing software system.
SECTION 237. IC 36-7-14-39, AS AMENDED BY HEA
1177-2026, SECTION 6, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 39. (a) As used in this section:
"Allocation area" means that part of a redevelopment project area
to which an allocation provision of a declaratory resolution adopted
under section 15 of this chapter refers for purposes of distribution and
allocation of property taxes.
"Base assessed value" means, subject to subsection (j), the
following:
(1) If an allocation provision is adopted after June 30, 1995, in a
declaratory resolution or an amendment to a declaratory
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resolution establishing an economic development area:
(A) the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A), the net
assessed value of property that is assessed as residential
property under the rules of the department of local government
finance, within the allocation area, as finally determined for
the current assessment date.
(2) If an allocation provision is adopted after June 30, 1997, in a
declaratory resolution or an amendment to a declaratory
resolution establishing a redevelopment project area:
(A) the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A), the net
assessed value of property that is assessed as residential
property under the rules of the department of local government
finance, as finally determined for the current assessment date.
(3) If:
(A) an allocation provision adopted before June 30, 1995, in
a declaratory resolution or an amendment to a declaratory
resolution establishing a redevelopment project area expires
after June 30, 1997; and
(B) after June 30, 1997, a new allocation provision is included
in an amendment to the declaratory resolution;
the net assessed value of all the property as finally determined for
the assessment date immediately preceding the effective date of
the allocation provision adopted after June 30, 1997, as adjusted
under subsection (h).
(4) Except as provided in subdivision (5), for all other allocation
areas, the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h).
(5) If an allocation area established in an economic development
area before July 1, 1995, is expanded after June 30, 1995, the
definition in subdivision (1) applies to the expanded part of the
area added after June 30, 1995.
(6) If an allocation area established in a redevelopment project
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area before July 1, 1997, is expanded after June 30, 1997, the
definition in subdivision (2) applies to the expanded part of the
area added after June 30, 1997.
Except as provided in section 39.3 of this chapter, "property taxes"
means taxes imposed under IC 6-1.1 on real property. However, upon
approval by a resolution of the redevelopment commission adopted
before June 1, 1987, "property taxes" also includes taxes imposed
under IC 6-1.1 on depreciable personal property. If a redevelopment
commission adopted before June 1, 1987, a resolution to include within
the definition of property taxes, taxes imposed under IC 6-1.1 on
depreciable personal property that has a useful life in excess of eight
(8) years, the commission may by resolution determine the percentage
of taxes imposed under IC 6-1.1 on all depreciable personal property
that will be included within the definition of property taxes. However,
the percentage included must not exceed twenty-five percent (25%) of
the taxes imposed under IC 6-1.1 on all depreciable personal property.
(b) A declaratory resolution adopted under section 15 of this chapter
on or before the allocation deadline determined under subsection (i)
may include a provision with respect to the allocation and distribution
of property taxes for the purposes and in the manner provided in this
section. A declaratory resolution previously adopted may include an
allocation provision by the amendment of that declaratory resolution on
or before the allocation deadline determined under subsection (i) in
accordance with the procedures required for its original adoption. A
declaratory resolution or amendment that establishes an allocation
provision must include a specific finding of fact, supported by
evidence, that the adoption of the allocation provision will result in
new property taxes in the area that would not have been generated but
for the adoption of the allocation provision. For an allocation area
established before July 1, 1995, the expiration date of any allocation
provisions for the allocation area is June 30, 2025, or the last date of
any obligations that are outstanding on July 1, 2015, whichever is later.
A declaratory resolution or an amendment that establishes an allocation
provision after June 30, 1995, must specify an expiration date for the
allocation provision. For an allocation area established before July 1,
2008, the expiration date may not be more than thirty (30) years after
the date on which the allocation provision is established. For an
allocation area established after June 30, 2008, the expiration date may
not be more than twenty-five (25) years after the date on which the first
obligation was incurred to pay principal and interest on bonds or lease
rentals on leases payable from tax increment revenues. However, with
respect to bonds or other obligations that were issued before July 1,
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2008, if any of the bonds or other obligations that were scheduled when
issued to mature before the specified expiration date and that are
payable only from allocated tax proceeds with respect to the allocation
area remain outstanding as of the expiration date, the allocation
provision does not expire until all of the bonds or other obligations are
no longer outstanding. Notwithstanding any other law, in the case of an
allocation area that is established after June 30, 2019, and that is
located in a redevelopment project area described in section
25.1(c)(3)(C) of this chapter, an economic development area described
in section 25.1(c)(3)(C) of this chapter, or an urban renewal project
area described in section 25.1(c)(3)(C) of this chapter, the expiration
date of the allocation provision may not be more than thirty-five (35)
years after the date on which the allocation provision is established.
The allocation provision may apply to all or part of the redevelopment
project area. The allocation provision must require that any property
taxes subsequently levied by or for the benefit of any public body
entitled to a distribution of property taxes on taxable property in the
allocation area be allocated and distributed as follows:
(1) Except as otherwise provided in this section, the proceeds of
the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made;
or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
the respective taxing units.
(2) This subdivision applies to a fire protection territory
established after December 31, 2022. If a unit becomes a
participating unit of a fire protection territory that is established
after a declaratory resolution is adopted under section 15 of this
chapter, the excess of the proceeds of the property taxes
attributable to an increase in the property tax rate for the
participating unit of a fire protection territory:
(A) except as otherwise provided by this subdivision, shall be
determined as follows:
STEP ONE: Divide the unit's tax rate for fire protection for
the year before the establishment of the fire protection
territory by the participating unit's tax rate as part of the fire
protection territory.
STEP TWO: Subtract the STEP ONE amount from one (1).
STEP THREE: Multiply the STEP TWO amount by the
allocated property tax attributable to the participating unit of
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the fire protection territory; and
(B) to the extent not otherwise included in subdivisions (1)
and (3), the amount determined under STEP THREE of clause
(A) shall be allocated to and distributed in the form of an
allocated property tax revenue pass back to the participating
unit of the fire protection territory for the assessment date with
respect to which the allocation is made.
However, if the redevelopment commission determines that it is
unable to meet its debt service obligations with regards to the
allocation area without all or part of the allocated property tax
revenue pass back to the participating unit of a fire protection area
under this subdivision, then the allocated property tax revenue
pass back under this subdivision shall be reduced by the amount
necessary for the redevelopment commission to meet its debt
service obligations of the allocation area. The calculation under
this subdivision must be made by the redevelopment commission
in collaboration with the county auditor and the applicable fire
protection territory. Any calculation determined according to
clause (A) must be submitted to the department of local
government finance in the manner prescribed by the department
of local government finance. The department of local government
finance shall verify the accuracy of each calculation.
(3) The excess of the proceeds of the property taxes imposed for
the assessment date with respect to which the allocation and
distribution is made that are attributable to taxes imposed after
being approved by the voters in a referendum or local public
question conducted after April 30, 2010, not otherwise included
in subdivisions (1) and (2) shall be allocated to and, when
collected, paid into the funds of the taxing unit for which the
referendum or local public question was conducted.
(4) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivisions (1), (2), and
(3) shall be allocated to the redevelopment district and, when
collected, paid into an allocation fund for that allocation area that
may be used by the redevelopment district only to do one (1) or
more of the following:
(A) Pay the principal of and interest on any obligations
payable solely from allocated tax proceeds which are incurred
by the redevelopment district for the purpose of financing or
refinancing the redevelopment of that allocation area.
(B) Establish, augment, or restore the debt service reserve for
bonds payable solely or in part from allocated tax proceeds in
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that allocation area.
(C) Pay the principal of and interest on bonds payable from
allocated tax proceeds in that allocation area and from the
special tax levied under section 27 of this chapter.
(D) Pay the principal of and interest on bonds issued by the
unit to pay for local public improvements that are physically
located in or physically connected to that allocation area.
(E) Pay premiums on the redemption before maturity of bonds
payable solely or in part from allocated tax proceeds in that
allocation area.
(F) Make payments on leases payable from allocated tax
proceeds in that allocation area under section 25.2 of this
chapter.
(G) Reimburse the unit for expenditures made by it for local
public improvements (which include buildings, parking
facilities, and other items described in section 25.1(a) of this
chapter) that are physically located in or physically connected
to that allocation area.
(H) Reimburse the unit for rentals paid by it for a building or
parking facility that is physically located in or physically
connected to that allocation area under any lease entered into
under IC 36-1-10.
(I) For property taxes first due and payable before January 1,
2009, pay all or a part of a property tax replacement credit to
taxpayers in an allocation area as determined by the
redevelopment commission. This credit equals the amount
determined under the following STEPS for each taxpayer in a
taxing district (as defined in IC 6-1.1-1-20) that contains all or
part of the allocation area:
STEP ONE: Determine that part of the sum of the amounts
under IC 6-1.1-21-2(g)(1)(A), IC 6-1.1-21-2(g)(2),
IC 6-1.1-21-2(g)(3), IC 6-1.1-21-2(g)(4), and
IC 6-1.1-21-2(g)(5) (before their repeal) that is attributable to
the taxing district.
STEP TWO: Divide:
(i) that part of each county's eligible property tax
replacement amount (as defined in IC 6-1.1-21-2 (before its
repeal)) for that year as determined under IC 6-1.1-21-4
(before its repeal) that is attributable to the taxing district;
by
(ii) the STEP ONE sum.
STEP THREE: Multiply:
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(i) the STEP TWO quotient; times
(ii) the total amount of the taxpayer's taxes (as defined in
IC 6-1.1-21-2 (before its repeal)) levied in the taxing district
that have been allocated during that year to an allocation
fund under this section.
If not all the taxpayers in an allocation area receive the credit
in full, each taxpayer in the allocation area is entitled to
receive the same proportion of the credit. A taxpayer may not
receive a credit under this section and a credit under section
39.5 of this chapter (before its repeal) in the same year.
(J) Pay expenses incurred by the redevelopment commission
for local public improvements that are in the allocation area or
serving the allocation area. Public improvements include
buildings, parking facilities, and other items described in
section 25.1(a) of this chapter.
(K) Reimburse public and private entities for expenses
incurred in training employees of industrial facilities that are
located:
(i) in the allocation area; and
(ii) on a parcel of real property that has been classified as
industrial property under the rules of the department of local
government finance.
However, the total amount of money spent for this purpose in
any year may not exceed the total amount of money in the
allocation fund that is attributable to property taxes paid by the
industrial facilities described in this clause. The
reimbursements under this clause must be made within three
(3) years after the date on which the investments that are the
basis for the increment financing are made.
(L) Pay the costs of carrying out an eligible efficiency project
(as defined in IC 36-9-41-1.5) within the unit that established
the redevelopment commission. However, property tax
proceeds may be used under this clause to pay the costs of
carrying out an eligible efficiency project only if those
property tax proceeds exceed the amount necessary to do the
following:
(i) Make, when due, any payments required under clauses
(A) through (K), including any payments of principal and
interest on bonds and other obligations payable under this
subdivision, any payments of premiums under this
subdivision on the redemption before maturity of bonds, and
any payments on leases payable under this subdivision.
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(ii) Make any reimbursements required under this
subdivision.
(iii) Pay any expenses required under this subdivision.
(iv) Establish, augment, or restore any debt service reserve
under this subdivision.
(M) Expend money and provide financial assistance as
authorized in section 12.2(a)(27) of this chapter.
(N) Expend revenues that are allocated for police and fire
services on both capital expenditures and operating expenses
as authorized in section 12.2(a)(28) of this chapter.
(O) Expend money or provide financial assistance (including
grants and loans) to entities for the purpose of encouraging or
incentivizing the construction, expansion, or ongoing
operation of child care facilities that are in the allocation area
or serving the allocation area.
The allocation fund may not be used for operating expenses of the
commission.
(5) Except as provided in subsection (g), before June 15 of each
year, the commission shall do the following:
(A) Determine the amount, if any, by which the assessed value
of the taxable property in the allocation area for the most
recent assessment date minus the base assessed value, when
multiplied by the estimated tax rate of the allocation area, will
exceed the amount of assessed value needed to produce the
property taxes necessary to make, when due, principal and
interest payments on bonds described in subdivision (4), plus
the amount necessary for other purposes described in
subdivision (4).
(B) Provide a written notice to the county auditor, the fiscal
body of the county or municipality that established the
department of redevelopment, and the officers who are
authorized to fix budgets, tax rates, and tax levies under
IC 6-1.1-17-5 for each of the other taxing units that is wholly
or partly located within the allocation area. The county auditor,
upon receiving the notice, shall forward this notice (in an
electronic format) to the department of local government
finance not later than June 15 of each year. The notice must:
(i) state the amount, if any, of excess assessed value that the
commission has determined may be allocated to the
respective taxing units in the manner prescribed in
subdivision (1); or
(ii) state that the commission has determined that there is no
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excess assessed value that may be allocated to the respective
taxing units in the manner prescribed in subdivision (1).
The county auditor shall allocate to the respective taxing units
the amount, if any, of excess assessed value determined by the
commission. The commission may not authorize an allocation
of assessed value to the respective taxing units under this
subdivision if to do so would endanger the interests of the
holders of bonds described in subdivision (4) or lessors under
section 25.3 of this chapter. If a commission fails to provide
the notice under this clause, the county auditor shall
allocate five percent (5%) of the assessed value in the
allocation area that is used to calculate the allocation and
distribution of allocated tax proceeds under this section to
the respective taxing units. However, if the commission
notifies the county auditor and the department of local
government finance, no later than July 1, that it is unable
to meet its debt service obligations with regard to the
allocation area without all or part of the allocated tax
proceeds attributed to the assessed value that has been
allocated to the respective taxing units, then the county
auditor may not allocate five percent (5%) of the assessed
value in the allocation area that is used to calculate the
allocation and distribution of allocated tax proceeds under
this section to the respective taxing units.
(C) If:
(i) the amount of excess assessed value determined by the
commission is expected to generate more than two hundred
percent (200%) of the amount of allocated tax proceeds
necessary to make, when due, principal and interest
payments on bonds described in subdivision (4); plus
(ii) the amount necessary for other purposes described in
subdivision (4);
the commission shall submit to the legislative body of the unit
its determination of the excess assessed value that the
commission proposes to allocate to the respective taxing units
in the manner prescribed in subdivision (1). The legislative
body of the unit may approve the commission's determination
or modify the amount of the excess assessed value that will be
allocated to the respective taxing units in the manner
prescribed in subdivision (1).
(6) Notwithstanding subdivision (5), in the case of an allocation
area that is established after June 30, 2019, and that is located in
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a redevelopment project area described in section 25.1(c)(3)(C)
of this chapter, an economic development area described in
section 25.1(c)(3)(C) of this chapter, or an urban renewal project
area described in section 25.1(c)(3)(C) of this chapter, for each
year the allocation provision is in effect, if the amount of excess
assessed value determined by the commission under subdivision
(5)(A) is expected to generate more than two hundred percent
(200%) of:
(A) the amount of allocated tax proceeds necessary to make,
when due, principal and interest payments on bonds described
in subdivision (4) for the project; plus
(B) the amount necessary for other purposes described in
subdivision (4) for the project;
the amount of the excess assessed value that generates more than
two hundred percent (200%) of the amounts described in clauses
(A) and (B) shall be allocated to the respective taxing units in the
manner prescribed by subdivision (1).
(c) For the purpose of allocating taxes levied by or for any taxing
unit or units, the assessed value of taxable property in a territory in the
allocation area that is annexed by any taxing unit after the effective
date of the allocation provision of the declaratory resolution is the
lesser of:
(1) the assessed value of the property for the assessment date with
respect to which the allocation and distribution is made; or
(2) the base assessed value.
(d) Property tax proceeds allocable to the redevelopment district
under subsection (b)(4) may, subject to subsection (b)(5), be
irrevocably pledged by the redevelopment district for payment as set
forth in subsection (b)(4).
(e) Notwithstanding any other law, each assessor shall, upon
petition of the redevelopment commission, reassess the taxable
property situated upon or in, or added to, the allocation area, effective
on the next assessment date after the petition.
(f) Notwithstanding any other law, the assessed value of all taxable
property in the allocation area, for purposes of tax limitation, property
tax replacement, and formulation of the budget, tax rate, and tax levy
for each political subdivision in which the property is located is the
lesser of:
(1) the assessed value of the property as valued without regard to
this section; or
(2) the base assessed value.
(g) If any part of the allocation area is located in an enterprise zone
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created under IC 5-28-15, the unit that designated the allocation area
shall create funds as specified in this subsection. A unit that has
obligations, bonds, or leases payable from allocated tax proceeds under
subsection (b)(4) shall establish an allocation fund for the purposes
specified in subsection (b)(4) and a special zone fund. Such a unit
shall, until the end of the enterprise zone phase out period, deposit each
year in the special zone fund any amount in the allocation fund derived
from property tax proceeds in excess of those described in subsection
(b)(1), (b)(2), and (b)(3) from property located in the enterprise zone
that exceeds the amount sufficient for the purposes specified in
subsection (b)(4) for the year. The amount sufficient for purposes
specified in subsection (b)(4) for the year shall be determined based on
the pro rata portion of such current property tax proceeds from the part
of the enterprise zone that is within the allocation area as compared to
all such current property tax proceeds derived from the allocation area.
A unit that has no obligations, bonds, or leases payable from allocated
tax proceeds under subsection (b)(4) shall establish a special zone fund
and deposit all the property tax proceeds in excess of those described
in subsection (b)(1), (b)(2), and (b)(3) in the fund derived from
property tax proceeds in excess of those described in subsection (b)(1),
(b)(2), and (b)(3) from property located in the enterprise zone. The unit
that creates the special zone fund shall use the fund (based on the
recommendations of the urban enterprise association) for programs in
job training, job enrichment, and basic skill development that are
designed to benefit residents and employers in the enterprise zone or
other purposes specified in subsection (b)(4), except that where
reference is made in subsection (b)(4) to allocation area it shall refer
for purposes of payments from the special zone fund only to that part
of the allocation area that is also located in the enterprise zone. Those
programs shall reserve at least one-half (1/2) of their enrollment in any
session for residents of the enterprise zone.
(h) The state board of accounts and department of local government
finance shall make the rules and prescribe the forms and procedures
that they consider expedient for the implementation of this chapter.
After each reassessment in an area under a reassessment plan prepared
under IC 6-1.1-4-4.2, the department of local government finance
county auditor shall, on forms prescribed by the department of
local government finance, adjust the base assessed value one (1) time
to neutralize any effect of the reassessment of the real property in the
area on the property tax proceeds allocated to the redevelopment
district under this section. After each annual adjustment under
IC 6-1.1-4-4.5, the department of local government finance county
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auditor shall, on forms prescribed by the department of local
government finance, adjust the base assessed value one (1) time to
neutralize any effect of the annual adjustment on the property tax
proceeds allocated to the redevelopment district under this section.
However, the adjustments under this subsection:
(1) may not include the effect of phasing in assessed value due to
property tax abatements under IC 6-1.1-12.1;
(2) may not produce less property tax proceeds allocable to the
redevelopment district under subsection (b)(4) than would
otherwise have been received if the reassessment under the
reassessment plan or the annual adjustment had not occurred; and
(3) may decrease base assessed value only to the extent that
assessed values in the allocation area have been decreased due to
annual adjustments or the reassessment under the reassessment
plan.
Assessed value increases attributable to the application of an abatement
schedule under IC 6-1.1-12.1 may not be included in the base assessed
value of an allocation area. The department of local government
finance may prescribe procedures for county and township officials to
follow to assist the department in making the adjustments. The county
auditor shall, in the manner prescribed by the department of local
government finance, submit the forms required by this subsection
to the department of local government finance no later than July
15 of each year.
(i) The allocation deadline referred to in subsection (b) is
determined in the following manner:
(1) The initial allocation deadline is December 31, 2011.
(2) Subject to subdivision (3), the initial allocation deadline and
subsequent allocation deadlines are automatically extended in
increments of five (5) years, so that allocation deadlines
subsequent to the initial allocation deadline fall on December 31,
2016, and December 31 of each fifth year thereafter.
(3) At least one (1) year before the date of an allocation deadline
determined under subdivision (2), the general assembly may enact
a law that:
(A) terminates the automatic extension of allocation deadlines
under subdivision (2); and
(B) specifically designates a particular date as the final
allocation deadline.
(j) If a redevelopment commission adopts a declaratory resolution
or an amendment to a declaratory resolution that contains an allocation
provision and the redevelopment commission makes either of the
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filings required under section 17(e) of this chapter after the first
anniversary of the effective date of the allocation provision, the auditor
of the county in which the unit is located shall compute the base
assessed value for the allocation area using the assessment date
immediately preceding the later of:
(1) the date on which the documents are filed with the county
auditor; or
(2) the date on which the documents are filed with the department
of local government finance.
(k) For an allocation area established after June 30, 2025,
"residential property" refers to the assessed value of property that is
allocated to the one percent (1%) homestead land and improvement
categories in the county tax and billing software system.
SECTION 238. IC 36-7-14-39.6, AS ADDED BY P.L.249-2015,
SECTION 26, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 39.6. (a) A redevelopment commission may enter
into a written agreement with a taxpayer who owns, or is otherwise
obligated to pay property taxes on, tangible property that is or will be
located in an allocation area established under this chapter in which the
taxpayer waives review of any assessment of the taxpayer's tangible
property that is located in the allocation area for an assessment date
that occurs during the term of any specified bond or lease obligations
that are payable from property taxes in accordance with an allocation
provision for the allocation area and any applicable statute, ordinance,
or resolution. An agreement described in this section may precede the
establishment of the allocation area or the determination to issue bonds
or enter into leases payable from the allocated property taxes.
(b) The original owner of each nonowner occupied residential
property subject to the two percent (2%) tax cap, that is located in
the tax increment financing area and is excluded from the base
assessed value, shall upon completion of construction enter into a
written agreement with the redevelopment commission indicating
the owner shall be obligated to pay the property tax for the portion
of outstanding bonds in the tax increment financing district
attributable to the property until the term length of the original
outstanding bond is retired. The written agreement with the
redevelopment commission shall be considered a lien on the
property and shall be included as part of the residential real estate
sales disclosure under IC 32-21-5. If the property is subsequently
sold as a homestead property and becomes subject to the one
percent (1%) tax cap, the new owner shall be responsible for the
lien on the property attributable to the written agreement with the
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redevelopment commission, and the new homestead property
owner shall be obligated to fulfill the terms of the written
agreement including the payment of the property tax liability
included in the agreement. This subsection does not apply to
multi-family apartments.
SECTION 239. IC 36-7-14-39.8, AS ADDED BY P.L.123-2024,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 39.8. (a) Notwithstanding any other law, if the
Indiana economic development corporation subsequently designates
territory that is located in an existing allocation area under this chapter
as an innovation development district under IC 36-7-32.5, the
allocation area may not be renewed or extended under this chapter until
the term of the innovation development district expires.
(b) Notwithstanding any other law, for taxing districts that
include multiple tax increment financing districts under this
chapter, the original tax increment financing district does not
expire and stays active only for the purpose of satisfying
outstanding bonds issued by the subsequent tax increment
financing district, only if the redevelopment commission completes
the following requirements:
(1) Provides a written appeal to and receives the approval of
the department of local government finance.
(2) Provides written notice to the state board of accounts of
the appeal.
SECTION 240. IC 36-7-14-48, AS AMENDED BY P.L.236-2023,
SECTION 180, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 48. (a) Notwithstanding section
39(a) of this chapter, with respect to the allocation and distribution of
property taxes for the accomplishment of a program adopted under
section 45 of this chapter, "base assessed value" means, subject to
section 39(j) of this chapter, the net assessed value of all of the
property, other than personal property, as finally determined for the
assessment date immediately preceding the effective date of the
allocation provision, as adjusted under section 39(h) of this chapter.
(b) The allocation fund established under section 39(b) of this
chapter for the allocation area for a program adopted under section 45
of this chapter may be used only for purposes related to the
accomplishment of the program, including the following:
(1) The construction, rehabilitation, or repair of residential units
within the allocation area.
(2) The construction, reconstruction, or repair of any
infrastructure (including streets, sidewalks, and sewers) within or
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serving the allocation area.
(3) The acquisition of real property and interests in real property
within the allocation area.
(4) The demolition of real property within the allocation area.
(5) The provision of financial assistance to enable individuals and
families to purchase or lease residential units within the allocation
area. However, financial assistance may be provided only to those
individuals and families whose income is at or below the county's
median income for individuals and families, respectively.
(6) The provision of financial assistance to neighborhood
development corporations to permit them to provide financial
assistance for the purposes described in subdivision (5).
(7) For property taxes first due and payable before January 1,
2009, providing each taxpayer in the allocation area a credit for
property tax replacement as determined under subsections (c) and
(d). However, the commission may provide this credit only if the
municipal legislative body (in the case of a redevelopment
commission established by a municipality) or the county
executive (in the case of a redevelopment commission established
by a county) establishes the credit by ordinance adopted in the
year before the year in which the credit is provided.
(c) The maximum credit that may be provided under subsection
(b)(7) to a taxpayer in a taxing district that contains all or part of an
allocation area established for a program adopted under section 45 of
this chapter shall be determined as follows:
STEP ONE: Determine that part of the sum of the amounts
described in IC 6-1.1-21-2(g)(1)(A) and IC 6-1.1-21-2(g)(2)
through IC 6-1.1-21-2(g)(5) (before their repeal) that is
attributable to the taxing district.
STEP TWO: Divide:
(A) that part of each county's eligible property tax replacement
amount (as defined in IC 6-1.1-21-2) (before its repeal) for
that year as determined under IC 6-1.1-21-4(a)(1) (before its
repeal) that is attributable to the taxing district; by
(B) the amount determined under STEP ONE.
STEP THREE: Multiply:
(A) the STEP TWO quotient; by
(B) the taxpayer's taxes (as defined in IC 6-1.1-21-2) (before
its repeal) levied in the taxing district allocated to the
allocation fund, including the amount that would have been
allocated but for the credit.
(d) The commission may determine to grant to taxpayers in an
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allocation area from its allocation fund a credit under this section, as
calculated under subsection (c). Except as provided in subsection (g),
one-half (1/2) of the credit shall be applied to each installment of taxes
(as defined in IC 6-1.1-21-2) (before its repeal) that under
IC 6-1.1-22-9 are due and payable in a year. The commission must
provide for the credit annually by a resolution and must find in the
resolution the following:
(1) That the money to be collected and deposited in the allocation
fund, based upon historical collection rates, after granting the
credit will equal the amounts payable for contractual obligations
from the fund, plus ten percent (10%) of those amounts.
(2) If bonds payable from the fund are outstanding, that there is
a debt service reserve for the bonds that at least equals the amount
of the credit to be granted.
(3) If bonds of a lessor under section 25.2 of this chapter or under
IC 36-1-10 are outstanding and if lease rentals are payable from
the fund, that there is a debt service reserve for those bonds that
at least equals the amount of the credit to be granted.
If the tax increment is insufficient to grant the credit in full, the
commission may grant the credit in part, prorated among all taxpayers.
(e) Notwithstanding section 39(b) of this chapter, the allocation
fund established under section 39(b) of this chapter for the allocation
area for a program adopted under section 45 of this chapter may only
be used to do one (1) or more of the following:
(1) Accomplish one (1) or more of the actions set forth in section
39(b)(4)(A) through 39(b)(4)(H) and 39(b)(4)(J) of this chapter
for property that is residential in nature.
(2) Reimburse the county or municipality for expenditures made
by the county or municipality in order to accomplish the housing
program in that allocation area.
The allocation fund may not be used for operating expenses of the
commission.
(f) Notwithstanding section 39(b) of this chapter, the commission
shall, relative to the allocation fund established under section 39(b) of
this chapter for an allocation area for a program adopted under section
45 of this chapter, do the following before June 15 of each year:
(1) Determine the amount, if any, by which the assessed value of
the taxable property in the allocation area for the most recent
assessment date minus the base assessed value, when multiplied
by the estimated tax rate of the allocation area, will exceed the
amount of assessed value needed to produce the property taxes
necessary to:
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(A) make the distribution required under section 39(b)(2) and
39(b)(3) of this chapter;
(B) make, when due, principal and interest payments on bonds
described in section 39(b)(4) of this chapter;
(C) pay the amount necessary for other purposes described in
section 39(b)(4) of this chapter; and
(D) reimburse the county or municipality for anticipated
expenditures described in subsection (e)(2).
(2) Provide a written notice to the county auditor, the fiscal body
of the county or municipality that established the department of
redevelopment, and the officers who are authorized to fix budgets,
tax rates, and tax levies under IC 6-1.1-17-5 for each of the other
taxing units that is wholly or partly located within the allocation
area. The county auditor, upon receiving the notice, shall forward
this notice (in an electronic format) to the department of local
government finance not later than June 15 of each year. The
notice must:
(A) state the amount, if any, of excess property taxes that the
commission has determined may be paid to the respective
taxing units in the manner prescribed in section 39(b)(1) of
this chapter; or
(B) state that the commission has determined that there is no
excess assessed value that may be allocated to the respective
taxing units in the manner prescribed in subdivision (1).
The county auditor shall allocate to the respective taxing units the
amount, if any, of excess assessed value determined by the
commission. If a commission fails to provide the notice under
this subdivision, the county auditor shall allocate five percent
(5%) of the assessed value in the allocation area that is used
to calculate the allocation and distribution of allocated tax
proceeds under this section to the respective taxing units.
However, if the commission notifies the county auditor and
the department of local government finance, no later than
July 1, that it is unable to meet its debt service obligations
with regard to the allocation area without all or part of the
allocated tax proceeds attributed to the assessed value that
has been allocated to the respective taxing units, then the
county auditor may not allocate five percent (5%) of the
assessed value in the allocation area that is used to calculate
the allocation and distribution of allocated tax proceeds under
this section to the respective taxing units.
(3) If:
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(A) the amount of excess assessed value determined by the
commission is expected to generate more than two hundred
percent (200%) of the amount of allocated tax proceeds
necessary to make, when due, principal and interest payments
on bonds described in subdivision (1); plus
(B) the amount necessary for other purposes described in
subdivision (1);
the commission shall submit to the legislative body of the unit its
determination of the excess assessed value that the commission
proposes to allocate to the respective taxing units in the manner
prescribed in subdivision (2). The legislative body of the unit may
approve the commission's determination or modify the amount of
the excess assessed value that will be allocated to the respective
taxing units in the manner prescribed in subdivision (2).
(g) This subsection applies to an allocation area only to the extent
that the net assessed value of property that is assessed as residential
property under the rules of the department of local government finance
is not included in the base assessed value. If property tax installments
with respect to a homestead (as defined in IC 6-1.1-12-37) are due in
installments established by the department of local government finance
under IC 6-1.1-22-9.5, each taxpayer subject to those installments in an
allocation area is entitled to an additional credit under subsection (d)
for the taxes (as defined in IC 6-1.1-21-2) (before its repeal) due in
installments. The credit shall be applied in the same proportion to each
installment of taxes (as defined in IC 6-1.1-21-2) (before its repeal).
SECTION 241. IC 36-7-14-52, AS AMENDED BY P.L.236-2023,
SECTION 181, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 52. (a) Notwithstanding section
39(a) of this chapter, with respect to the allocation and distribution of
property taxes for the accomplishment of the purposes of an
age-restricted housing program adopted under section 49 of this
chapter, "base assessed value" means, subject to section 39(j) of this
chapter, the net assessed value of all of the property, other than
personal property, as finally determined for the assessment date
immediately preceding the effective date of the allocation provision, as
adjusted under section 39(h) of this chapter.
(b) The allocation fund established under section 39(b) of this
chapter for the allocation area for an age-restricted housing program
adopted under section 49 of this chapter may be used only for purposes
related to the accomplishment of the purposes of the program,
including, but not limited to, the following:
(1) The construction of any infrastructure (including streets,
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sidewalks, and sewers) or local public improvements in, serving,
or benefiting the allocation area.
(2) The acquisition of real property and interests in real property
within the allocation area.
(3) The preparation of real property in anticipation of
development of the real property within the allocation area.
(4) To do any of the following:
(A) Pay the principal of and interest on bonds or any other
obligations payable from allocated tax proceeds in the
allocation area that are incurred by the redevelopment district
for the purpose of financing or refinancing the age-restricted
housing program established under section 49 of this chapter
for the allocation area.
(B) Establish, augment, or restore the debt service reserve for
bonds payable solely or in part from allocated tax proceeds in
the allocation area.
(C) Pay the principal of and interest on bonds payable from
allocated tax proceeds in the allocation area and from the
special tax levied under section 27 of this chapter.
(D) Pay the principal of and interest on bonds issued by the
unit to pay for local public improvements that are physically
located in or physically connected to the allocation area.
(E) Pay premiums on the redemption before maturity of bonds
payable solely or in part from allocated tax proceeds in the
allocation area.
(F) Make payments on leases payable from allocated tax
proceeds in the allocation area under section 25.2 of this
chapter.
(G) Reimburse the unit for expenditures made by the unit for
local public improvements (which include buildings, parking
facilities, and other items described in section 25.1(a) of this
chapter) that are physically located in or physically connected
to the allocation area.
(c) Notwithstanding section 39(b) of this chapter, the commission
shall, relative to the allocation fund established under section 39(b) of
this chapter for an allocation area for an age-restricted housing program
adopted under section 49 of this chapter, do the following before June
15 of each year:
(1) Determine the amount, if any, by which the assessed value of
the taxable property in the allocation area for the most recent
assessment date minus the base assessed value, when multiplied
by the estimated tax rate of the allocation area, will exceed the
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amount of assessed value needed to produce the property taxes
necessary to:
(A) make the distribution required under section 39(b)(2) and
39(b)(3) of this chapter;
(B) make, when due, principal and interest payments on bonds
described in section 39(b)(4) of this chapter;
(C) pay the amount necessary for other purposes described in
section 39(b)(4) of this chapter; and
(D) reimburse the county or municipality for anticipated
expenditures described in subsection (b)(2).
(2) Provide a written notice to the county auditor, the fiscal body
of the county or municipality that established the department of
redevelopment, and the officers who are authorized to fix budgets,
tax rates, and tax levies under IC 6-1.1-17-5 for each of the other
taxing units that is wholly or partly located within the allocation
area. The county auditor, upon receiving the notice, shall forward
this notice (in an electronic format) to the department of local
government finance not later than June 15 of each year. The
notice must:
(A) state the amount, if any, of excess property taxes that the
commission has determined may be paid to the respective
taxing units in the manner prescribed in section 39(b)(1) of
this chapter; or
(B) state that the commission has determined that there is no
excess assessed value that may be allocated to the respective
taxing units in the manner prescribed in subdivision (1).
The county auditor shall allocate to the respective taxing units the
amount, if any, of excess assessed value determined by the
commission. If a commission fails to provide the notice under
subdivision (2), the county auditor shall allocate five percent (5%)
of the assessed value in the allocation area that is used to calculate
the allocation and distribution of allocated tax proceeds under this
section to the respective taxing units. However, if the commission
notifies the county auditor and the department of local government
finance, no later than July 1, that it is unable to meet its debt
service obligations with regard to the allocation area without all or
part of the allocated tax proceeds attributed to the assessed value
that has been allocated to the respective taxing units, then the
county auditor may not allocate five percent (5%) of the assessed
value in the allocation area that is used to calculate the allocation
and distribution of allocated tax proceeds under this section to the
respective taxing units.
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SECTION 242. IC 36-7-14.2-1, AS ADDED BY P.L.80-2014,
SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 1. As used in this chapter, "property taxes"
means:
(1) property taxes, as described in:
(A) IC 6-1.1-39-5(g); IC 6-1.1-39-5(h);
(B) IC 36-7-14-39(a);
(C) IC 36-7-14-39.2;
(D) IC 36-7-14-39.3(c);
(E) IC 36-7-14.5-12.5;
(F) IC 36-7-15.1-26(a);
(G) IC 36-7-15.1-26.2(c);
(H) IC 36-7-15.1-53(a);
(I) IC 36-7-15.1-55(c);
(J) IC 36-7-30-25(a)(3);
(K) IC 36-7-30-26(c);
(L) IC 36-7-30.5-30; or
(M) IC 36-7-30.5-31; and
(2) for allocation areas created under IC 8-22-3.5, the taxes
assessed on taxable tangible property in the allocation area.
SECTION 243. IC 36-7-15.1-26, AS AMENDED BY P.L.174-2022,
SECTION 72, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 26. (a) As used in this section:
"Allocation area" means that part of a redevelopment project area
to which an allocation provision of a resolution adopted under section
8 of this chapter refers for purposes of distribution and allocation of
property taxes.
"Base assessed value" means, subject to subsection (j), the
following:
(1) If an allocation provision is adopted after June 30, 1995, in a
declaratory resolution or an amendment to a declaratory
resolution establishing an economic development area:
(A) the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A), the net
assessed value of property that is assessed as residential
property under the rules of the department of local government
finance, within the allocation area, as finally determined for
the current assessment date.
(2) If an allocation provision is adopted after June 30, 1997, in a
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declaratory resolution or an amendment to a declaratory
resolution establishing a redevelopment project area:
(A) the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A), the net
assessed value of property that is assessed as residential
property under the rules of the department of local government
finance, within the allocation area, as finally determined for
the current assessment date.
(3) If:
(A) an allocation provision adopted before June 30, 1995, in
a declaratory resolution or an amendment to a declaratory
resolution establishing a redevelopment project area expires
after June 30, 1997; and
(B) after June 30, 1997, a new allocation provision is included
in an amendment to the declaratory resolution;
the net assessed value of all the property as finally determined for
the assessment date immediately preceding the effective date of
the allocation provision adopted after June 30, 1997, as adjusted
under subsection (h).
(4) Except as provided in subdivision (5), for all other allocation
areas, the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h).
(5) If an allocation area established in an economic development
area before July 1, 1995, is expanded after June 30, 1995, the
definition in subdivision (1) applies to the expanded part of the
area added after June 30, 1995.
(6) If an allocation area established in a redevelopment project
area before July 1, 1997, is expanded after June 30, 1997, the
definition in subdivision (2) applies to the expanded part of the
area added after June 30, 1997.
Except as provided in section 26.2 of this chapter, "property taxes"
means taxes imposed under IC 6-1.1 on real property. However, upon
approval by a resolution of the redevelopment commission adopted
before June 1, 1987, "property taxes" also includes taxes imposed
under IC 6-1.1 on depreciable personal property. If a redevelopment
commission adopted before June 1, 1987, a resolution to include within
the definition of property taxes, taxes imposed under IC 6-1.1 on
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depreciable personal property that has a useful life in excess of eight
(8) years, the commission may by resolution determine the percentage
of taxes imposed under IC 6-1.1 on all depreciable personal property
that will be included within the definition of property taxes. However,
the percentage included must not exceed twenty-five percent (25%) of
the taxes imposed under IC 6-1.1 on all depreciable personal property.
(b) A resolution adopted under section 8 of this chapter on or before
the allocation deadline determined under subsection (i) may include a
provision with respect to the allocation and distribution of property
taxes for the purposes and in the manner provided in this section. A
resolution previously adopted may include an allocation provision by
the amendment of that resolution on or before the allocation deadline
determined under subsection (i) in accordance with the procedures
required for its original adoption. A declaratory resolution or
amendment that establishes an allocation provision must include a
specific finding of fact, supported by evidence, that the adoption of the
allocation provision will result in new property taxes in the area that
would not have been generated but for the adoption of the allocation
provision. For an allocation area established before July 1, 1995, the
expiration date of any allocation provisions for the allocation area is
June 30, 2025, or the last date of any obligations that are outstanding
on July 1, 2015, whichever is later. However, for an allocation area
identified as the Consolidated Allocation Area in the report submitted
in 2013 to the fiscal body under section 36.3 of this chapter, the
expiration date of any allocation provisions for the allocation area is
January 1, 2051. A declaratory resolution or an amendment that
establishes an allocation provision after June 30, 1995, must specify an
expiration date for the allocation provision. For an allocation area
established before July 1, 2008, the expiration date may not be more
than thirty (30) years after the date on which the allocation provision
is established. For an allocation area established after June 30, 2008,
the expiration date may not be more than twenty-five (25) years after
the date on which the first obligation was incurred to pay principal and
interest on bonds or lease rentals on leases payable from tax increment
revenues. However, with respect to bonds or other obligations that were
issued before July 1, 2008, if any of the bonds or other obligations that
were scheduled when issued to mature before the specified expiration
date and that are payable only from allocated tax proceeds with respect
to the allocation area remain outstanding as of the expiration date, the
allocation provision does not expire until all of the bonds or other
obligations are no longer outstanding. The allocation provision may
apply to all or part of the redevelopment project area. The allocation
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provision must require that any property taxes subsequently levied by
or for the benefit of any public body entitled to a distribution of
property taxes on taxable property in the allocation area be allocated
and distributed as follows:
(1) Except as otherwise provided in this section, the proceeds of
the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made;
or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
the respective taxing units.
(2) The excess of the proceeds of the property taxes imposed for
the assessment date with respect to which the allocation and
distribution is made that are attributable to taxes imposed after
being approved by the voters in a referendum or local public
question conducted after April 30, 2010, not otherwise included
in subdivision (1) shall be allocated to and, when collected, paid
into the funds of the taxing unit for which the referendum or local
public question was conducted.
(3) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivisions (1) and (2)
shall be allocated to the redevelopment district and, when
collected, paid into a special fund for that allocation area that may
be used by the redevelopment district only to do one (1) or more
of the following:
(A) Pay the principal of and interest on any obligations
payable solely from allocated tax proceeds that are incurred by
the redevelopment district for the purpose of financing or
refinancing the redevelopment of that allocation area.
(B) Establish, augment, or restore the debt service reserve for
bonds payable solely or in part from allocated tax proceeds in
that allocation area.
(C) Pay the principal of and interest on bonds payable from
allocated tax proceeds in that allocation area and from the
special tax levied under section 19 of this chapter.
(D) Pay the principal of and interest on bonds issued by the
consolidated city to pay for local public improvements that are
physically located in or physically connected to that allocation
area.
(E) Pay premiums on the redemption before maturity of bonds
payable solely or in part from allocated tax proceeds in that
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allocation area.
(F) Make payments on leases payable from allocated tax
proceeds in that allocation area under section 17.1 of this
chapter.
(G) Reimburse the consolidated city for expenditures for local
public improvements (which include buildings, parking
facilities, and other items set forth in section 17 of this
chapter) that are physically located in or physically connected
to that allocation area.
(H) Reimburse the unit for rentals paid by it for a building or
parking facility that is physically located in or physically
connected to that allocation area under any lease entered into
under IC 36-1-10.
(I) Reimburse public and private entities for expenses incurred
in training employees of industrial facilities that are located:
(i) in the allocation area; and
(ii) on a parcel of real property that has been classified as
industrial property under the rules of the department of local
government finance.
However, the total amount of money spent for this purpose in
any year may not exceed the total amount of money in the
allocation fund that is attributable to property taxes paid by the
industrial facilities described in this clause. The
reimbursements under this clause must be made within three
(3) years after the date on which the investments that are the
basis for the increment financing are made.
(J) Pay the costs of carrying out an eligible efficiency project
(as defined in IC 36-9-41-1.5) within the unit that established
the redevelopment commission. However, property tax
proceeds may be used under this clause to pay the costs of
carrying out an eligible efficiency project only if those
property tax proceeds exceed the amount necessary to do the
following:
(i) Make, when due, any payments required under clauses
(A) through (I), including any payments of principal and
interest on bonds and other obligations payable under this
subdivision, any payments of premiums under this
subdivision on the redemption before maturity of bonds, and
any payments on leases payable under this subdivision.
(ii) Make any reimbursements required under this
subdivision.
(iii) Pay any expenses required under this subdivision.
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(iv) Establish, augment, or restore any debt service reserve
under this subdivision.
(K) Expend money and provide financial assistance as
authorized in section 7(a)(21) of this chapter.
The special fund may not be used for operating expenses of the
commission.
(4) Before June 15 of each year, the commission shall do the
following:
(A) Determine the amount, if any, by which the assessed value
of the taxable property in the allocation area for the most
recent assessment date minus the base assessed value, when
multiplied by the estimated tax rate of the allocation area will
exceed the amount of assessed value needed to provide the
property taxes necessary to make, when due, principal and
interest payments on bonds described in subdivision (3) plus
the amount necessary for other purposes described in
subdivision (3) and subsection (g).
(B) Provide a written notice to the county auditor, the
legislative body of the consolidated city, the officers who are
authorized to fix budgets, tax rates, and tax levies under
IC 6-1.1-17-5 for each of the other taxing units that is wholly
or partly located within the allocation area, and (in an
electronic format) the department of local government finance.
The notice must:
(i) state the amount, if any, of excess assessed value that the
commission has determined may be allocated to the
respective taxing units in the manner prescribed in
subdivision (1); or
(ii) state that the commission has determined that there is no
excess assessed value that may be allocated to the respective
taxing units in the manner prescribed in subdivision (1).
The county auditor shall allocate to the respective taxing units
the amount, if any, of excess assessed value determined by the
commission. The commission may not authorize an allocation
to the respective taxing units under this subdivision if to do so
would endanger the interests of the holders of bonds described
in subdivision (3). If a commission fails to provide the
notice under this clause, the county auditor shall allocate
five percent (5%) of the assessed value in the allocation
area that is used to calculate the allocation and distribution
of allocated tax proceeds under this section to the
respective taxing units. However, if the commission notifies
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the county auditor and the department of local government
finance, no later than July 1, that it is unable to meet its
debt service obligations with regard to the allocation area
without all or part of the allocated tax proceeds attributed
to the assessed value that has been allocated to the
respective taxing units, then the county auditor may not
allocate five percent (5%) of the assessed value in the
allocation area that is used to calculate the allocation and
distribution of allocated tax proceeds under this section to
the respective taxing units.
(C) If:
(i) the amount of excess assessed value determined by the
commission is expected to generate more than two hundred
percent (200%) of the amount of allocated tax proceeds
necessary to make, when due, principal and interest
payments on bonds described in subdivision (3); plus
(ii) the amount necessary for other purposes described in
subdivision (3) and subsection (g);
the commission shall submit to the legislative body of the unit
the commission's determination of the excess assessed value
that the commission proposes to allocate to the respective
taxing units in the manner prescribed in subdivision (1). The
legislative body of the unit may approve the commission's
determination or modify the amount of the excess assessed
value that will be allocated to the respective taxing units in the
manner prescribed in subdivision (1).
(c) For the purpose of allocating taxes levied by or for any taxing
unit or units, the assessed value of taxable property in a territory in the
allocation area that is annexed by any taxing unit after the effective
date of the allocation provision of the resolution is the lesser of:
(1) the assessed value of the property for the assessment date with
respect to which the allocation and distribution is made; or
(2) the base assessed value.
(d) Property tax proceeds allocable to the redevelopment district
under subsection (b)(3) may, subject to subsection (b)(4), be
irrevocably pledged by the redevelopment district for payment as set
forth in subsection (b)(3).
(e) Notwithstanding any other law, each assessor shall, upon
petition of the commission, reassess the taxable property situated upon
or in, or added to, the allocation area, effective on the next assessment
date after the petition.
(f) Notwithstanding any other law, the assessed value of all taxable
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property in the allocation area, for purposes of tax limitation, property
tax replacement, and formulation of the budget, tax rate, and tax levy
for each political subdivision in which the property is located is the
lesser of:
(1) the assessed value of the property as valued without regard to
this section; or
(2) the base assessed value.
(g) If any part of the allocation area is located in an enterprise zone
created under IC 5-28-15, the unit that designated the allocation area
shall create funds as specified in this subsection. A unit that has
obligations, bonds, or leases payable from allocated tax proceeds under
subsection (b)(3) shall establish an allocation fund for the purposes
specified in subsection (b)(3) and a special zone fund. Such a unit
shall, until the end of the enterprise zone phase out period, deposit each
year in the special zone fund the amount in the allocation fund derived
from property tax proceeds in excess of those described in subsection
(b)(1) and (b)(2) from property located in the enterprise zone that
exceeds the amount sufficient for the purposes specified in subsection
(b)(3) for the year. A unit that has no obligations, bonds, or leases
payable from allocated tax proceeds under subsection (b)(3) shall
establish a special zone fund and deposit all the property tax proceeds
in excess of those described in subsection (b)(1) and (b)(2) in the fund
derived from property tax proceeds in excess of those described in
subsection (b)(1) and (b)(2) from property located in the enterprise
zone. The unit that creates the special zone fund shall use the fund,
based on the recommendations of the urban enterprise association, for
one (1) or more of the following purposes:
(1) To pay for programs in job training, job enrichment, and basic
skill development designed to benefit residents and employers in
the enterprise zone. The programs must reserve at least one-half
(1/2) of the enrollment in any session for residents of the
enterprise zone.
(2) To make loans and grants for the purpose of stimulating
business activity in the enterprise zone or providing employment
for enterprise zone residents in the enterprise zone. These loans
and grants may be made to the following:
(A) Businesses operating in the enterprise zone.
(B) Businesses that will move their operations to the enterprise
zone if such a loan or grant is made.
(3) To provide funds to carry out other purposes specified in
subsection (b)(3). However, where reference is made in
subsection (b)(3) to the allocation area, the reference refers for
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purposes of payments from the special zone fund only to that part
of the allocation area that is also located in the enterprise zone.
(h) The state board of accounts and department of local government
finance shall make the rules and prescribe the forms and procedures
that they consider expedient for the implementation of this chapter.
After each reassessment under a reassessment plan prepared under
IC 6-1.1-4-4.2, the department of local government finance county
auditor shall, on forms prescribed by the department of local
government finance, adjust the base assessed value one (1) time to
neutralize any effect of the reassessment of the real property in the area
on the property tax proceeds allocated to the redevelopment district
under this section. After each annual adjustment under IC 6-1.1-4-4.5,
the department of local government finance county auditor shall, on
forms prescribed by the department of local government finance,
adjust the base assessed value to neutralize any effect of the annual
adjustment on the property tax proceeds allocated to the redevelopment
district under this section. However, the adjustments under this
subsection may not include the effect of property tax abatements under
IC 6-1.1-12.1, and these adjustments may not produce less property tax
proceeds allocable to the redevelopment district under subsection
(b)(3) than would otherwise have been received if the reassessment
under the reassessment plan or annual adjustment had not occurred.
The department of local government finance may prescribe procedures
for county and township officials to follow to assist the department in
making the adjustments. The county auditor shall, in the manner
prescribed by the department of local government finance, submit
the forms required by this subsection to the department of local
government finance no later than July 15 of each year.
(i) The allocation deadline referred to in subsection (b) is
determined in the following manner:
(1) The initial allocation deadline is December 31, 2011.
(2) Subject to subdivision (3), the initial allocation deadline and
subsequent allocation deadlines are automatically extended in
increments of five (5) years, so that allocation deadlines
subsequent to the initial allocation deadline fall on December 31,
2016, and December 31 of each fifth year thereafter.
(3) At least one (1) year before the date of an allocation deadline
determined under subdivision (2), the general assembly may enact
a law that:
(A) terminates the automatic extension of allocation deadlines
under subdivision (2); and
(B) specifically designates a particular date as the final
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allocation deadline.
(j) If the commission adopts a declaratory resolution or an
amendment to a declaratory resolution that contains an allocation
provision and the commission makes either of the filings required
under section 10(e) of this chapter after the first anniversary of the
effective date of the allocation provision, the auditor of the county in
which the unit is located shall compute the base assessed value for the
allocation area using the assessment date immediately preceding the
later of:
(1) the date on which the documents are filed with the county
auditor; or
(2) the date on which the documents are filed with the department
of local government finance.
(k) For an allocation area established after June 30, 2024,
"residential property" refers to the assessed value of property that is
allocated to the one percent (1%) homestead land and improvement
categories in the county tax and billing software system. along with the
residential assessed value as defined for purposes of calculating the
rate for the local income tax property tax relief credit designated for
residential property under IC 6-3.6-5-6(d)(3).
SECTION 244. IC 36-7-15.1-26, AS AMENDED BY HEA
1177-2025, SECTION 7, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 26. (a) As used in this section:
"Allocation area" means that part of a redevelopment project area
to which an allocation provision of a resolution adopted under section
8 of this chapter refers for purposes of distribution and allocation of
property taxes.
"Base assessed value" means, subject to subsection (j), the
following:
(1) If an allocation provision is adopted after June 30, 1995, in a
declaratory resolution or an amendment to a declaratory
resolution establishing an economic development area:
(A) the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A), the net
assessed value of property that is assessed as residential
property under the rules of the department of local government
finance, within the allocation area, as finally determined for
the current assessment date.
(2) If an allocation provision is adopted after June 30, 1997, in a
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declaratory resolution or an amendment to a declaratory
resolution establishing a redevelopment project area:
(A) the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A), the net
assessed value of property that is assessed as residential
property under the rules of the department of local government
finance, within the allocation area, as finally determined for
the current assessment date.
(3) If:
(A) an allocation provision adopted before June 30, 1995, in
a declaratory resolution or an amendment to a declaratory
resolution establishing a redevelopment project area expires
after June 30, 1997; and
(B) after June 30, 1997, a new allocation provision is included
in an amendment to the declaratory resolution;
the net assessed value of all the property as finally determined for
the assessment date immediately preceding the effective date of
the allocation provision adopted after June 30, 1997, as adjusted
under subsection (h).
(4) Except as provided in subdivision (5), for all other allocation
areas, the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h).
(5) If an allocation area established in an economic development
area before July 1, 1995, is expanded after June 30, 1995, the
definition in subdivision (1) applies to the expanded part of the
area added after June 30, 1995.
(6) If an allocation area established in a redevelopment project
area before July 1, 1997, is expanded after June 30, 1997, the
definition in subdivision (2) applies to the expanded part of the
area added after June 30, 1997.
Except as provided in section 26.2 of this chapter, "property taxes"
means taxes imposed under IC 6-1.1 on real property. However, upon
approval by a resolution of the redevelopment commission adopted
before June 1, 1987, "property taxes" also includes taxes imposed
under IC 6-1.1 on depreciable personal property. If a redevelopment
commission adopted before June 1, 1987, a resolution to include within
the definition of property taxes, taxes imposed under IC 6-1.1 on
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depreciable personal property that has a useful life in excess of eight
(8) years, the commission may by resolution determine the percentage
of taxes imposed under IC 6-1.1 on all depreciable personal property
that will be included within the definition of property taxes. However,
the percentage included must not exceed twenty-five percent (25%) of
the taxes imposed under IC 6-1.1 on all depreciable personal property.
(b) A resolution adopted under section 8 of this chapter on or before
the allocation deadline determined under subsection (i) may include a
provision with respect to the allocation and distribution of property
taxes for the purposes and in the manner provided in this section. A
resolution previously adopted may include an allocation provision by
the amendment of that resolution on or before the allocation deadline
determined under subsection (i) in accordance with the procedures
required for its original adoption. A declaratory resolution or
amendment that establishes an allocation provision must include a
specific finding of fact, supported by evidence, that the adoption of the
allocation provision will result in new property taxes in the area that
would not have been generated but for the adoption of the allocation
provision. For an allocation area established before July 1, 1995, the
expiration date of any allocation provisions for the allocation area is
June 30, 2025, or the last date of any obligations that are outstanding
on July 1, 2015, whichever is later. However, for an allocation area
identified as the Consolidated Allocation Area in the report submitted
in 2013 to the fiscal body under section 36.3 of this chapter, the
expiration date of any allocation provisions for the allocation area is
January 1, 2051. A declaratory resolution or an amendment that
establishes an allocation provision after June 30, 1995, must specify an
expiration date for the allocation provision. For an allocation area
established before July 1, 2008, the expiration date may not be more
than thirty (30) years after the date on which the allocation provision
is established. For an allocation area established after June 30, 2008,
the expiration date may not be more than twenty-five (25) years after
the date on which the first obligation was incurred to pay principal and
interest on bonds or lease rentals on leases payable from tax increment
revenues. However, with respect to bonds or other obligations that were
issued before July 1, 2008, if any of the bonds or other obligations that
were scheduled when issued to mature before the specified expiration
date and that are payable only from allocated tax proceeds with respect
to the allocation area remain outstanding as of the expiration date, the
allocation provision does not expire until all of the bonds or other
obligations are no longer outstanding. The allocation provision may
apply to all or part of the redevelopment project area. The allocation
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provision must require that any property taxes subsequently levied by
or for the benefit of any public body entitled to a distribution of
property taxes on taxable property in the allocation area be allocated
and distributed as follows:
(1) Except as otherwise provided in this section, the proceeds of
the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made;
or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
the respective taxing units.
(2) The excess of the proceeds of the property taxes imposed for
the assessment date with respect to which the allocation and
distribution is made that are attributable to taxes imposed after
being approved by the voters in a referendum or local public
question conducted after April 30, 2010, not otherwise included
in subdivision (1) shall be allocated to and, when collected, paid
into the funds of the taxing unit for which the referendum or local
public question was conducted.
(3) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivisions (1) and (2)
shall be allocated to the redevelopment district and, when
collected, paid into a special fund for that allocation area that may
be used by the redevelopment district only to do one (1) or more
of the following:
(A) Pay the principal of and interest on any obligations
payable solely from allocated tax proceeds that are incurred by
the redevelopment district for the purpose of financing or
refinancing the redevelopment of that allocation area.
(B) Establish, augment, or restore the debt service reserve for
bonds payable solely or in part from allocated tax proceeds in
that allocation area.
(C) Pay the principal of and interest on bonds payable from
allocated tax proceeds in that allocation area and from the
special tax levied under section 19 of this chapter.
(D) Pay the principal of and interest on bonds issued by the
consolidated city to pay for local public improvements that are
physically located in or physically connected to that allocation
area.
(E) Pay premiums on the redemption before maturity of bonds
payable solely or in part from allocated tax proceeds in that
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allocation area.
(F) Make payments on leases payable from allocated tax
proceeds in that allocation area under section 17.1 of this
chapter.
(G) Reimburse the consolidated city for expenditures for local
public improvements (which include buildings, parking
facilities, and other items set forth in section 17 of this
chapter) that are physically located in or physically connected
to that allocation area.
(H) Reimburse the unit for rentals paid by it for a building or
parking facility that is physically located in or physically
connected to that allocation area under any lease entered into
under IC 36-1-10.
(I) Reimburse public and private entities for expenses incurred
in training employees of industrial facilities that are located:
(i) in the allocation area; and
(ii) on a parcel of real property that has been classified as
industrial property under the rules of the department of local
government finance.
However, the total amount of money spent for this purpose in
any year may not exceed the total amount of money in the
allocation fund that is attributable to property taxes paid by the
industrial facilities described in this clause. The
reimbursements under this clause must be made within three
(3) years after the date on which the investments that are the
basis for the increment financing are made.
(J) Pay the costs of carrying out an eligible efficiency project
(as defined in IC 36-9-41-1.5) within the unit that established
the redevelopment commission. However, property tax
proceeds may be used under this clause to pay the costs of
carrying out an eligible efficiency project only if those
property tax proceeds exceed the amount necessary to do the
following:
(i) Make, when due, any payments required under clauses
(A) through (I), including any payments of principal and
interest on bonds and other obligations payable under this
subdivision, any payments of premiums under this
subdivision on the redemption before maturity of bonds, and
any payments on leases payable under this subdivision.
(ii) Make any reimbursements required under this
subdivision.
(iii) Pay any expenses required under this subdivision.
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(iv) Establish, augment, or restore any debt service reserve
under this subdivision.
(K) Expend money and provide financial assistance as
authorized in section 7(a)(21) of this chapter.
(L) Expend money or provide financial assistance (including
grants and loans) to entities for the purpose of encouraging or
incentivizing the construction, expansion, or ongoing
operation of child care facilities that are in the allocation area
or serving the allocation area.
The special fund may not be used for operating expenses of the
commission.
(4) Before June 15 of each year, the commission shall do the
following:
(A) Determine the amount, if any, by which the assessed value
of the taxable property in the allocation area for the most
recent assessment date minus the base assessed value, when
multiplied by the estimated tax rate of the allocation area will
exceed the amount of assessed value needed to provide the
property taxes necessary to make, when due, principal and
interest payments on bonds described in subdivision (3) plus
the amount necessary for other purposes described in
subdivision (3) and subsection (g).
(B) Provide a written notice to the county auditor, the
legislative body of the consolidated city, the officers who are
authorized to fix budgets, tax rates, and tax levies under
IC 6-1.1-17-5 for each of the other taxing units that is wholly
or partly located within the allocation area, and (in an
electronic format) the department of local government finance.
The notice must:
(i) state the amount, if any, of excess assessed value that the
commission has determined may be allocated to the
respective taxing units in the manner prescribed in
subdivision (1); or
(ii) state that the commission has determined that there is no
excess assessed value that may be allocated to the respective
taxing units in the manner prescribed in subdivision (1).
The county auditor shall allocate to the respective taxing units
the amount, if any, of excess assessed value determined by the
commission. The commission may not authorize an allocation
to the respective taxing units under this subdivision if to do so
would endanger the interests of the holders of bonds described
in subdivision (3). If a commission fails to provide the
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notice under this clause, the county auditor shall allocate
five percent (5%) of the assessed value in the allocation
area that is used to calculate the allocation and distribution
of allocated tax proceeds under this section to the
respective taxing units. However, if the commission notifies
the county auditor and the department of local government
finance, no later than July 1, that it is unable to meet its
debt service obligations with regard to the allocation area
without all or part of the allocated tax proceeds attributed
to the assessed value that has been allocated to the
respective taxing units, then the county auditor may not
allocate five percent (5%) of the assessed value in the
allocation area that is used to calculate the allocation and
distribution of allocated tax proceeds under this section to
the respective taxing units.
(C) If:
(i) the amount of excess assessed value determined by the
commission is expected to generate more than two hundred
percent (200%) of the amount of allocated tax proceeds
necessary to make, when due, principal and interest
payments on bonds described in subdivision (3); plus
(ii) the amount necessary for other purposes described in
subdivision (3) and subsection (g);
the commission shall submit to the legislative body of the unit
the commission's determination of the excess assessed value
that the commission proposes to allocate to the respective
taxing units in the manner prescribed in subdivision (1). The
legislative body of the unit may approve the commission's
determination or modify the amount of the excess assessed
value that will be allocated to the respective taxing units in the
manner prescribed in subdivision (1).
(c) For the purpose of allocating taxes levied by or for any taxing
unit or units, the assessed value of taxable property in a territory in the
allocation area that is annexed by any taxing unit after the effective
date of the allocation provision of the resolution is the lesser of:
(1) the assessed value of the property for the assessment date with
respect to which the allocation and distribution is made; or
(2) the base assessed value.
(d) Property tax proceeds allocable to the redevelopment district
under subsection (b)(3) may, subject to subsection (b)(4), be
irrevocably pledged by the redevelopment district for payment as set
forth in subsection (b)(3).
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(e) Notwithstanding any other law, each assessor shall, upon
petition of the commission, reassess the taxable property situated upon
or in, or added to, the allocation area, effective on the next assessment
date after the petition.
(f) Notwithstanding any other law, the assessed value of all taxable
property in the allocation area, for purposes of tax limitation, property
tax replacement, and formulation of the budget, tax rate, and tax levy
for each political subdivision in which the property is located is the
lesser of:
(1) the assessed value of the property as valued without regard to
this section; or
(2) the base assessed value.
(g) If any part of the allocation area is located in an enterprise zone
created under IC 5-28-15, the unit that designated the allocation area
shall create funds as specified in this subsection. A unit that has
obligations, bonds, or leases payable from allocated tax proceeds under
subsection (b)(3) shall establish an allocation fund for the purposes
specified in subsection (b)(3) and a special zone fund. Such a unit
shall, until the end of the enterprise zone phase out period, deposit each
year in the special zone fund the amount in the allocation fund derived
from property tax proceeds in excess of those described in subsection
(b)(1) and (b)(2) from property located in the enterprise zone that
exceeds the amount sufficient for the purposes specified in subsection
(b)(3) for the year. A unit that has no obligations, bonds, or leases
payable from allocated tax proceeds under subsection (b)(3) shall
establish a special zone fund and deposit all the property tax proceeds
in excess of those described in subsection (b)(1) and (b)(2) in the fund
derived from property tax proceeds in excess of those described in
subsection (b)(1) and (b)(2) from property located in the enterprise
zone. The unit that creates the special zone fund shall use the fund,
based on the recommendations of the urban enterprise association, for
one (1) or more of the following purposes:
(1) To pay for programs in job training, job enrichment, and basic
skill development designed to benefit residents and employers in
the enterprise zone. The programs must reserve at least one-half
(1/2) of the enrollment in any session for residents of the
enterprise zone.
(2) To make loans and grants for the purpose of stimulating
business activity in the enterprise zone or providing employment
for enterprise zone residents in the enterprise zone. These loans
and grants may be made to the following:
(A) Businesses operating in the enterprise zone.
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(B) Businesses that will move their operations to the enterprise
zone if such a loan or grant is made.
(3) To provide funds to carry out other purposes specified in
subsection (b)(3). However, where reference is made in
subsection (b)(3) to the allocation area, the reference refers for
purposes of payments from the special zone fund only to that part
of the allocation area that is also located in the enterprise zone.
(h) The state board of accounts and department of local government
finance shall make the rules and prescribe the forms and procedures
that they consider expedient for the implementation of this chapter.
After each reassessment under a reassessment plan prepared under
IC 6-1.1-4-4.2, the department of local government finance county
auditor shall, on forms prescribed by the department of local
government finance, adjust the base assessed value one (1) time to
neutralize any effect of the reassessment of the real property in the area
on the property tax proceeds allocated to the redevelopment district
under this section. After each annual adjustment under IC 6-1.1-4-4.5,
the department of local government finance county auditor shall, on
forms prescribed by the department of local government finance,
adjust the base assessed value to neutralize any effect of the annual
adjustment on the property tax proceeds allocated to the redevelopment
district under this section. However, the adjustments under this
subsection may not include the effect of property tax abatements under
IC 6-1.1-12.1, and these adjustments may not produce less property tax
proceeds allocable to the redevelopment district under subsection
(b)(3) than would otherwise have been received if the reassessment
under the reassessment plan or annual adjustment had not occurred.
The department of local government finance may prescribe procedures
for county and township officials to follow to assist the department in
making the adjustments. The county auditor shall, in the manner
prescribed by the department of local government finance, submit
the forms required by this subsection to the department of local
government finance no later than July 15 of each year.
(i) The allocation deadline referred to in subsection (b) is
determined in the following manner:
(1) The initial allocation deadline is December 31, 2011.
(2) Subject to subdivision (3), the initial allocation deadline and
subsequent allocation deadlines are automatically extended in
increments of five (5) years, so that allocation deadlines
subsequent to the initial allocation deadline fall on December 31,
2016, and December 31 of each fifth year thereafter.
(3) At least one (1) year before the date of an allocation deadline
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determined under subdivision (2), the general assembly may enact
a law that:
(A) terminates the automatic extension of allocation deadlines
under subdivision (2); and
(B) specifically designates a particular date as the final
allocation deadline.
(j) If the commission adopts a declaratory resolution or an
amendment to a declaratory resolution that contains an allocation
provision and the commission makes either of the filings required
under section 10(e) of this chapter after the first anniversary of the
effective date of the allocation provision, the auditor of the county in
which the unit is located shall compute the base assessed value for the
allocation area using the assessment date immediately preceding the
later of:
(1) the date on which the documents are filed with the county
auditor; or
(2) the date on which the documents are filed with the department
of local government finance.
(k) For an allocation area established after June 30, 2024,
"residential property" refers to the assessed value of property that is
allocated to the one percent (1%) homestead land and improvement
categories in the county tax and billing software system. along with the
residential assessed value as defined for purposes of calculating the
rate for the local income tax property tax relief credit designated for
residential property under IC 6-3.6-5-6(d)(3).
SECTION 245. IC 36-7-15.1-26, AS AMENDED BY HEA
1177-2026, SECTION 8, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2027]: Sec. 26. (a) As used in this section:
"Allocation area" means that part of a redevelopment project area
to which an allocation provision of a resolution adopted under section
8 of this chapter refers for purposes of distribution and allocation of
property taxes.
"Base assessed value" means, subject to subsection (j), the
following:
(1) If an allocation provision is adopted after June 30, 1995, in a
declaratory resolution or an amendment to a declaratory
resolution establishing an economic development area:
(A) the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A), the net
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assessed value of property that is assessed as residential
property under the rules of the department of local government
finance, within the allocation area, as finally determined for
the current assessment date.
(2) If an allocation provision is adopted after June 30, 1997, in a
declaratory resolution or an amendment to a declaratory
resolution establishing a redevelopment project area:
(A) the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A), the net
assessed value of property that is assessed as residential
property under the rules of the department of local government
finance, within the allocation area, as finally determined for
the current assessment date.
(3) If:
(A) an allocation provision adopted before June 30, 1995, in
a declaratory resolution or an amendment to a declaratory
resolution establishing a redevelopment project area expires
after June 30, 1997; and
(B) after June 30, 1997, a new allocation provision is included
in an amendment to the declaratory resolution;
the net assessed value of all the property as finally determined for
the assessment date immediately preceding the effective date of
the allocation provision adopted after June 30, 1997, as adjusted
under subsection (h).
(4) Except as provided in subdivision (5), for all other allocation
areas, the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h).
(5) If an allocation area established in an economic development
area before July 1, 1995, is expanded after June 30, 1995, the
definition in subdivision (1) applies to the expanded part of the
area added after June 30, 1995.
(6) If an allocation area established in a redevelopment project
area before July 1, 1997, is expanded after June 30, 1997, the
definition in subdivision (2) applies to the expanded part of the
area added after June 30, 1997.
Except as provided in section 26.2 of this chapter, "property taxes"
means taxes imposed under IC 6-1.1 on real property. However, upon
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approval by a resolution of the redevelopment commission adopted
before June 1, 1987, "property taxes" also includes taxes imposed
under IC 6-1.1 on depreciable personal property. If a redevelopment
commission adopted before June 1, 1987, a resolution to include within
the definition of property taxes, taxes imposed under IC 6-1.1 on
depreciable personal property that has a useful life in excess of eight
(8) years, the commission may by resolution determine the percentage
of taxes imposed under IC 6-1.1 on all depreciable personal property
that will be included within the definition of property taxes. However,
the percentage included must not exceed twenty-five percent (25%) of
the taxes imposed under IC 6-1.1 on all depreciable personal property.
(b) A resolution adopted under section 8 of this chapter on or before
the allocation deadline determined under subsection (i) may include a
provision with respect to the allocation and distribution of property
taxes for the purposes and in the manner provided in this section. A
resolution previously adopted may include an allocation provision by
the amendment of that resolution on or before the allocation deadline
determined under subsection (i) in accordance with the procedures
required for its original adoption. A declaratory resolution or
amendment that establishes an allocation provision must include a
specific finding of fact, supported by evidence, that the adoption of the
allocation provision will result in new property taxes in the area that
would not have been generated but for the adoption of the allocation
provision. For an allocation area established before July 1, 1995, the
expiration date of any allocation provisions for the allocation area is
June 30, 2025, or the last date of any obligations that are outstanding
on July 1, 2015, whichever is later. However, for an allocation area
identified as the Consolidated Allocation Area in the report submitted
in 2013 to the fiscal body under section 36.3 of this chapter, the
expiration date of any allocation provisions for the allocation area is
January 1, 2051. A declaratory resolution or an amendment that
establishes an allocation provision after June 30, 1995, must specify an
expiration date for the allocation provision. For an allocation area
established before July 1, 2008, the expiration date may not be more
than thirty (30) years after the date on which the allocation provision
is established. For an allocation area established after June 30, 2008,
the expiration date may not be more than twenty-five (25) years after
the date on which the first obligation was incurred to pay principal and
interest on bonds or lease rentals on leases payable from tax increment
revenues. However, with respect to bonds or other obligations that were
issued before July 1, 2008, if any of the bonds or other obligations that
were scheduled when issued to mature before the specified expiration
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date and that are payable only from allocated tax proceeds with respect
to the allocation area remain outstanding as of the expiration date, the
allocation provision does not expire until all of the bonds or other
obligations are no longer outstanding. The allocation provision may
apply to all or part of the redevelopment project area. The allocation
provision must require that any property taxes subsequently levied by
or for the benefit of any public body entitled to a distribution of
property taxes on taxable property in the allocation area be allocated
and distributed as follows:
(1) Except as otherwise provided in this section, the proceeds of
the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made;
or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
the respective taxing units.
(2) The excess of the proceeds of the property taxes imposed for
the assessment date with respect to which the allocation and
distribution is made that are attributable to taxes imposed after
being approved by the voters in a referendum or local public
question conducted after April 30, 2010, not otherwise included
in subdivision (1) shall be allocated to and, when collected, paid
into the funds of the taxing unit for which the referendum or local
public question was conducted.
(3) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivisions (1) and (2)
shall be allocated to the redevelopment district and, when
collected, paid into a special fund for that allocation area that may
be used by the redevelopment district only to do one (1) or more
of the following:
(A) Pay the principal of and interest on any obligations
payable solely from allocated tax proceeds that are incurred by
the redevelopment district for the purpose of financing or
refinancing the redevelopment of that allocation area.
(B) Establish, augment, or restore the debt service reserve for
bonds payable solely or in part from allocated tax proceeds in
that allocation area.
(C) Pay the principal of and interest on bonds payable from
allocated tax proceeds in that allocation area and from the
special tax levied under section 19 of this chapter.
(D) Pay the principal of and interest on bonds issued by the
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consolidated city to pay for local public improvements that are
physically located in or physically connected to that allocation
area.
(E) Pay premiums on the redemption before maturity of bonds
payable solely or in part from allocated tax proceeds in that
allocation area.
(F) Make payments on leases payable from allocated tax
proceeds in that allocation area under section 17.1 of this
chapter.
(G) Reimburse the consolidated city for expenditures for local
public improvements (which include buildings, parking
facilities, and other items set forth in section 17 of this
chapter) that are physically located in or physically connected
to that allocation area.
(H) Reimburse the unit for rentals paid by it for a building or
parking facility that is physically located in or physically
connected to that allocation area under any lease entered into
under IC 36-1-10.
(I) Reimburse public and private entities for expenses incurred
in training employees of industrial facilities that are located:
(i) in the allocation area; and
(ii) on a parcel of real property that has been classified as
industrial property under the rules of the department of local
government finance.
However, the total amount of money spent for this purpose in
any year may not exceed the total amount of money in the
allocation fund that is attributable to property taxes paid by the
industrial facilities described in this clause. The
reimbursements under this clause must be made within three
(3) years after the date on which the investments that are the
basis for the increment financing are made.
(J) Pay the costs of carrying out an eligible efficiency project
(as defined in IC 36-9-41-1.5) within the unit that established
the redevelopment commission. However, property tax
proceeds may be used under this clause to pay the costs of
carrying out an eligible efficiency project only if those
property tax proceeds exceed the amount necessary to do the
following:
(i) Make, when due, any payments required under clauses
(A) through (I), including any payments of principal and
interest on bonds and other obligations payable under this
subdivision, any payments of premiums under this
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subdivision on the redemption before maturity of bonds, and
any payments on leases payable under this subdivision.
(ii) Make any reimbursements required under this
subdivision.
(iii) Pay any expenses required under this subdivision.
(iv) Establish, augment, or restore any debt service reserve
under this subdivision.
(K) Expend money and provide financial assistance as
authorized in section 7(a)(21) of this chapter.
(L) Expend money or provide financial assistance (including
grants and loans) to entities for the purpose of encouraging or
incentivizing the construction, expansion, or ongoing
operation of child care facilities that are in the allocation area
or serving the allocation area.
The special fund may not be used for operating expenses of the
commission.
(4) Before June 15 of each year, the commission shall do the
following:
(A) Determine the amount, if any, by which the assessed value
of the taxable property in the allocation area for the most
recent assessment date minus the base assessed value, when
multiplied by the estimated tax rate of the allocation area will
exceed the amount of assessed value needed to provide the
property taxes necessary to make, when due, principal and
interest payments on bonds described in subdivision (3) plus
the amount necessary for other purposes described in
subdivision (3) and subsection (g).
(B) Provide a written notice to the county auditor, the
legislative body of the consolidated city, the officers who are
authorized to fix budgets, tax rates, and tax levies under
IC 6-1.1-17-5 for each of the other taxing units that is wholly
or partly located within the allocation area, and (in an
electronic format) the department of local government finance.
The notice must:
(i) state the amount, if any, of excess assessed value that the
commission has determined may be allocated to the
respective taxing units in the manner prescribed in
subdivision (1); or
(ii) state that the commission has determined that there is no
excess assessed value that may be allocated to the respective
taxing units in the manner prescribed in subdivision (1).
The county auditor shall allocate to the respective taxing units
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the amount, if any, of excess assessed value determined by the
commission. The commission may not authorize an allocation
to the respective taxing units under this subdivision if to do so
would endanger the interests of the holders of bonds described
in subdivision (3). If a commission fails to provide the
notice under this clause, the county auditor shall allocate
five percent (5%) of the assessed value in the allocation
area that is used to calculate the allocation and distribution
of allocated tax proceeds under this section to the
respective taxing units. However, if the commission notifies
the county auditor and the department of local government
finance, no later than July 1, that it is unable to meet its
debt service obligations with regard to the allocation area
without all or part of the allocated tax proceeds attributed
to the assessed value that has been allocated to the
respective taxing units, then the county auditor may not
allocate five percent (5%) of the assessed value in the
allocation area that is used to calculate the allocation and
distribution of allocated tax proceeds under this section to
the respective taxing units.
(C) If:
(i) the amount of excess assessed value determined by the
commission is expected to generate more than two hundred
percent (200%) of the amount of allocated tax proceeds
necessary to make, when due, principal and interest
payments on bonds described in subdivision (3); plus
(ii) the amount necessary for other purposes described in
subdivision (3) and subsection (g);
the commission shall submit to the legislative body of the unit
the commission's determination of the excess assessed value
that the commission proposes to allocate to the respective
taxing units in the manner prescribed in subdivision (1). The
legislative body of the unit may approve the commission's
determination or modify the amount of the excess assessed
value that will be allocated to the respective taxing units in the
manner prescribed in subdivision (1).
(c) For the purpose of allocating taxes levied by or for any taxing
unit or units, the assessed value of taxable property in a territory in the
allocation area that is annexed by any taxing unit after the effective
date of the allocation provision of the resolution is the lesser of:
(1) the assessed value of the property for the assessment date with
respect to which the allocation and distribution is made; or
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(2) the base assessed value.
(d) Property tax proceeds allocable to the redevelopment district
under subsection (b)(3) may, subject to subsection (b)(4), be
irrevocably pledged by the redevelopment district for payment as set
forth in subsection (b)(3).
(e) Notwithstanding any other law, each assessor shall, upon
petition of the commission, reassess the taxable property situated upon
or in, or added to, the allocation area, effective on the next assessment
date after the petition.
(f) Notwithstanding any other law, the assessed value of all taxable
property in the allocation area, for purposes of tax limitation, property
tax replacement, and formulation of the budget, tax rate, and tax levy
for each political subdivision in which the property is located is the
lesser of:
(1) the assessed value of the property as valued without regard to
this section; or
(2) the base assessed value.
(g) If any part of the allocation area is located in an enterprise zone
created under IC 5-28-15, the unit that designated the allocation area
shall create funds as specified in this subsection. A unit that has
obligations, bonds, or leases payable from allocated tax proceeds under
subsection (b)(3) shall establish an allocation fund for the purposes
specified in subsection (b)(3) and a special zone fund. Such a unit
shall, until the end of the enterprise zone phase out period, deposit each
year in the special zone fund the amount in the allocation fund derived
from property tax proceeds in excess of those described in subsection
(b)(1) and (b)(2) from property located in the enterprise zone that
exceeds the amount sufficient for the purposes specified in subsection
(b)(3) for the year. A unit that has no obligations, bonds, or leases
payable from allocated tax proceeds under subsection (b)(3) shall
establish a special zone fund and deposit all the property tax proceeds
in excess of those described in subsection (b)(1) and (b)(2) in the fund
derived from property tax proceeds in excess of those described in
subsection (b)(1) and (b)(2) from property located in the enterprise
zone. The unit that creates the special zone fund shall use the fund,
based on the recommendations of the urban enterprise association, for
one (1) or more of the following purposes:
(1) To pay for programs in job training, job enrichment, and basic
skill development designed to benefit residents and employers in
the enterprise zone. The programs must reserve at least one-half
(1/2) of the enrollment in any session for residents of the
enterprise zone.
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(2) To make loans and grants for the purpose of stimulating
business activity in the enterprise zone or providing employment
for enterprise zone residents in the enterprise zone. These loans
and grants may be made to the following:
(A) Businesses operating in the enterprise zone.
(B) Businesses that will move their operations to the enterprise
zone if such a loan or grant is made.
(3) To provide funds to carry out other purposes specified in
subsection (b)(3). However, where reference is made in
subsection (b)(3) to the allocation area, the reference refers for
purposes of payments from the special zone fund only to that part
of the allocation area that is also located in the enterprise zone.
(h) The state board of accounts and department of local government
finance shall make the rules and prescribe the forms and procedures
that they consider expedient for the implementation of this chapter.
After each reassessment under a reassessment plan prepared under
IC 6-1.1-4-4.2, the department of local government finance county
auditor shall, on forms prescribed by the department of local
government finance, adjust the base assessed value one (1) time to
neutralize any effect of the reassessment of the real property in the area
on the property tax proceeds allocated to the redevelopment district
under this section. After each annual adjustment under IC 6-1.1-4-4.5,
the department of local government finance county auditor shall, on
forms prescribed by the department of local government finance,
adjust the base assessed value to neutralize any effect of the annual
adjustment on the property tax proceeds allocated to the redevelopment
district under this section. However, the adjustments under this
subsection may not include the effect of property tax abatements under
IC 6-1.1-12.1, and these adjustments may not produce less property tax
proceeds allocable to the redevelopment district under subsection
(b)(3) than would otherwise have been received if the reassessment
under the reassessment plan or annual adjustment had not occurred.
The department of local government finance may prescribe procedures
for county and township officials to follow to assist the department in
making the adjustments. The county auditor shall, in the manner
prescribed by the department of local government finance, submit
the forms required by this subsection to the department of local
government finance no later than July 15 of each year.
(i) The allocation deadline referred to in subsection (b) is
determined in the following manner:
(1) The initial allocation deadline is December 31, 2011.
(2) Subject to subdivision (3), the initial allocation deadline and
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subsequent allocation deadlines are automatically extended in
increments of five (5) years, so that allocation deadlines
subsequent to the initial allocation deadline fall on December 31,
2016, and December 31 of each fifth year thereafter.
(3) At least one (1) year before the date of an allocation deadline
determined under subdivision (2), the general assembly may enact
a law that:
(A) terminates the automatic extension of allocation deadlines
under subdivision (2); and
(B) specifically designates a particular date as the final
allocation deadline.
(j) If the commission adopts a declaratory resolution or an
amendment to a declaratory resolution that contains an allocation
provision and the commission makes either of the filings required
under section 10(e) of this chapter after the first anniversary of the
effective date of the allocation provision, the auditor of the county in
which the unit is located shall compute the base assessed value for the
allocation area using the assessment date immediately preceding the
later of:
(1) the date on which the documents are filed with the county
auditor; or
(2) the date on which the documents are filed with the department
of local government finance.
(k) For an allocation area established after June 30, 2024,
"residential property" refers to the assessed value of property that is
allocated to the one percent (1%) homestead land and improvement
categories in the county tax and billing software system. along with the
residential assessed value as defined for purposes of calculating the
rate for the local income tax property tax relief credit designated for
residential property under IC 6-3.6-5-6(d)(3) (before its expiration).
SECTION 246. IC 36-7-15.1-26, AS AMENDED BY HEA
1177-2026, SECTION 8, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2028]: Sec. 26. (a) As used in this section:
"Allocation area" means that part of a redevelopment project area
to which an allocation provision of a resolution adopted under section
8 of this chapter refers for purposes of distribution and allocation of
property taxes.
"Base assessed value" means, subject to subsection (j), the
following:
(1) If an allocation provision is adopted after June 30, 1995, in a
declaratory resolution or an amendment to a declaratory
resolution establishing an economic development area:
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(A) the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A), the net
assessed value of property that is assessed as residential
property under the rules of the department of local government
finance, within the allocation area, as finally determined for
the current assessment date.
(2) If an allocation provision is adopted after June 30, 1997, in a
declaratory resolution or an amendment to a declaratory
resolution establishing a redevelopment project area:
(A) the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A), the net
assessed value of property that is assessed as residential
property under the rules of the department of local government
finance, within the allocation area, as finally determined for
the current assessment date.
(3) If:
(A) an allocation provision adopted before June 30, 1995, in
a declaratory resolution or an amendment to a declaratory
resolution establishing a redevelopment project area expires
after June 30, 1997; and
(B) after June 30, 1997, a new allocation provision is included
in an amendment to the declaratory resolution;
the net assessed value of all the property as finally determined for
the assessment date immediately preceding the effective date of
the allocation provision adopted after June 30, 1997, as adjusted
under subsection (h).
(4) Except as provided in subdivision (5), for all other allocation
areas, the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h).
(5) If an allocation area established in an economic development
area before July 1, 1995, is expanded after June 30, 1995, the
definition in subdivision (1) applies to the expanded part of the
area added after June 30, 1995.
(6) If an allocation area established in a redevelopment project
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area before July 1, 1997, is expanded after June 30, 1997, the
definition in subdivision (2) applies to the expanded part of the
area added after June 30, 1997.
Except as provided in section 26.2 of this chapter, "property taxes"
means taxes imposed under IC 6-1.1 on real property. However, upon
approval by a resolution of the redevelopment commission adopted
before June 1, 1987, "property taxes" also includes taxes imposed
under IC 6-1.1 on depreciable personal property. If a redevelopment
commission adopted before June 1, 1987, a resolution to include within
the definition of property taxes, taxes imposed under IC 6-1.1 on
depreciable personal property that has a useful life in excess of eight
(8) years, the commission may by resolution determine the percentage
of taxes imposed under IC 6-1.1 on all depreciable personal property
that will be included within the definition of property taxes. However,
the percentage included must not exceed twenty-five percent (25%) of
the taxes imposed under IC 6-1.1 on all depreciable personal property.
(b) A resolution adopted under section 8 of this chapter on or before
the allocation deadline determined under subsection (i) may include a
provision with respect to the allocation and distribution of property
taxes for the purposes and in the manner provided in this section. A
resolution previously adopted may include an allocation provision by
the amendment of that resolution on or before the allocation deadline
determined under subsection (i) in accordance with the procedures
required for its original adoption. A declaratory resolution or
amendment that establishes an allocation provision must include a
specific finding of fact, supported by evidence, that the adoption of the
allocation provision will result in new property taxes in the area that
would not have been generated but for the adoption of the allocation
provision. For an allocation area established before July 1, 1995, the
expiration date of any allocation provisions for the allocation area is
June 30, 2025, or the last date of any obligations that are outstanding
on July 1, 2015, whichever is later. However, for an allocation area
identified as the Consolidated Allocation Area in the report submitted
in 2013 to the fiscal body under section 36.3 of this chapter, the
expiration date of any allocation provisions for the allocation area is
January 1, 2051. A declaratory resolution or an amendment that
establishes an allocation provision after June 30, 1995, must specify an
expiration date for the allocation provision. For an allocation area
established before July 1, 2008, the expiration date may not be more
than thirty (30) years after the date on which the allocation provision
is established. For an allocation area established after June 30, 2008,
the expiration date may not be more than twenty-five (25) years after
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the date on which the first obligation was incurred to pay principal and
interest on bonds or lease rentals on leases payable from tax increment
revenues. However, with respect to bonds or other obligations that were
issued before July 1, 2008, if any of the bonds or other obligations that
were scheduled when issued to mature before the specified expiration
date and that are payable only from allocated tax proceeds with respect
to the allocation area remain outstanding as of the expiration date, the
allocation provision does not expire until all of the bonds or other
obligations are no longer outstanding. The allocation provision may
apply to all or part of the redevelopment project area. The allocation
provision must require that any property taxes subsequently levied by
or for the benefit of any public body entitled to a distribution of
property taxes on taxable property in the allocation area be allocated
and distributed as follows:
(1) Except as otherwise provided in this section, the proceeds of
the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made;
or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
the respective taxing units.
(2) The excess of the proceeds of the property taxes imposed for
the assessment date with respect to which the allocation and
distribution is made that are attributable to taxes imposed after
being approved by the voters in a referendum or local public
question conducted after April 30, 2010, not otherwise included
in subdivision (1) shall be allocated to and, when collected, paid
into the funds of the taxing unit for which the referendum or local
public question was conducted.
(3) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivisions (1) and (2)
shall be allocated to the redevelopment district and, when
collected, paid into a special fund for that allocation area that may
be used by the redevelopment district only to do one (1) or more
of the following:
(A) Pay the principal of and interest on any obligations
payable solely from allocated tax proceeds that are incurred by
the redevelopment district for the purpose of financing or
refinancing the redevelopment of that allocation area.
(B) Establish, augment, or restore the debt service reserve for
bonds payable solely or in part from allocated tax proceeds in
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that allocation area.
(C) Pay the principal of and interest on bonds payable from
allocated tax proceeds in that allocation area and from the
special tax levied under section 19 of this chapter.
(D) Pay the principal of and interest on bonds issued by the
consolidated city to pay for local public improvements that are
physically located in or physically connected to that allocation
area.
(E) Pay premiums on the redemption before maturity of bonds
payable solely or in part from allocated tax proceeds in that
allocation area.
(F) Make payments on leases payable from allocated tax
proceeds in that allocation area under section 17.1 of this
chapter.
(G) Reimburse the consolidated city for expenditures for local
public improvements (which include buildings, parking
facilities, and other items set forth in section 17 of this
chapter) that are physically located in or physically connected
to that allocation area.
(H) Reimburse the unit for rentals paid by it for a building or
parking facility that is physically located in or physically
connected to that allocation area under any lease entered into
under IC 36-1-10.
(I) Reimburse public and private entities for expenses incurred
in training employees of industrial facilities that are located:
(i) in the allocation area; and
(ii) on a parcel of real property that has been classified as
industrial property under the rules of the department of local
government finance.
However, the total amount of money spent for this purpose in
any year may not exceed the total amount of money in the
allocation fund that is attributable to property taxes paid by the
industrial facilities described in this clause. The
reimbursements under this clause must be made within three
(3) years after the date on which the investments that are the
basis for the increment financing are made.
(J) Pay the costs of carrying out an eligible efficiency project
(as defined in IC 36-9-41-1.5) within the unit that established
the redevelopment commission. However, property tax
proceeds may be used under this clause to pay the costs of
carrying out an eligible efficiency project only if those
property tax proceeds exceed the amount necessary to do the
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following:
(i) Make, when due, any payments required under clauses
(A) through (I), including any payments of principal and
interest on bonds and other obligations payable under this
subdivision, any payments of premiums under this
subdivision on the redemption before maturity of bonds, and
any payments on leases payable under this subdivision.
(ii) Make any reimbursements required under this
subdivision.
(iii) Pay any expenses required under this subdivision.
(iv) Establish, augment, or restore any debt service reserve
under this subdivision.
(K) Expend money and provide financial assistance as
authorized in section 7(a)(21) of this chapter.
(L) Expend money or provide financial assistance (including
grants and loans) to entities for the purpose of encouraging or
incentivizing the construction, expansion, or ongoing
operation of child care facilities that are in the allocation area
or serving the allocation area.
The special fund may not be used for operating expenses of the
commission.
(4) Before June 15 of each year, the commission shall do the
following:
(A) Determine the amount, if any, by which the assessed value
of the taxable property in the allocation area for the most
recent assessment date minus the base assessed value, when
multiplied by the estimated tax rate of the allocation area will
exceed the amount of assessed value needed to provide the
property taxes necessary to make, when due, principal and
interest payments on bonds described in subdivision (3) plus
the amount necessary for other purposes described in
subdivision (3) and subsection (g).
(B) Provide a written notice to the county auditor, the
legislative body of the consolidated city, the officers who are
authorized to fix budgets, tax rates, and tax levies under
IC 6-1.1-17-5 for each of the other taxing units that is wholly
or partly located within the allocation area, and (in an
electronic format) the department of local government finance.
The notice must:
(i) state the amount, if any, of excess assessed value that the
commission has determined may be allocated to the
respective taxing units in the manner prescribed in
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subdivision (1); or
(ii) state that the commission has determined that there is no
excess assessed value that may be allocated to the respective
taxing units in the manner prescribed in subdivision (1).
The county auditor shall allocate to the respective taxing units
the amount, if any, of excess assessed value determined by the
commission. The commission may not authorize an allocation
to the respective taxing units under this subdivision if to do so
would endanger the interests of the holders of bonds described
in subdivision (3). If a commission fails to provide the
notice under this clause, the county auditor shall allocate
five percent (5%) of the assessed value in the allocation
area that is used to calculate the allocation and distribution
of allocated tax proceeds under this section to the
respective taxing units. However, if the commission notifies
the county auditor and the department of local government
finance, no later than July 1, that it is unable to meet its
debt service obligations with regard to the allocation area
without all or part of the allocated tax proceeds attributed
to the assessed value that has been allocated to the
respective taxing units, then the county auditor may not
allocate five percent (5%) of the assessed value in the
allocation area that is used to calculate the allocation and
distribution of allocated tax proceeds under this section to
the respective taxing units.
(C) If:
(i) the amount of excess assessed value determined by the
commission is expected to generate more than two hundred
percent (200%) of the amount of allocated tax proceeds
necessary to make, when due, principal and interest
payments on bonds described in subdivision (3); plus
(ii) the amount necessary for other purposes described in
subdivision (3) and subsection (g);
the commission shall submit to the legislative body of the unit
the commission's determination of the excess assessed value
that the commission proposes to allocate to the respective
taxing units in the manner prescribed in subdivision (1). The
legislative body of the unit may approve the commission's
determination or modify the amount of the excess assessed
value that will be allocated to the respective taxing units in the
manner prescribed in subdivision (1).
(c) For the purpose of allocating taxes levied by or for any taxing
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unit or units, the assessed value of taxable property in a territory in the
allocation area that is annexed by any taxing unit after the effective
date of the allocation provision of the resolution is the lesser of:
(1) the assessed value of the property for the assessment date with
respect to which the allocation and distribution is made; or
(2) the base assessed value.
(d) Property tax proceeds allocable to the redevelopment district
under subsection (b)(3) may, subject to subsection (b)(4), be
irrevocably pledged by the redevelopment district for payment as set
forth in subsection (b)(3).
(e) Notwithstanding any other law, each assessor shall, upon
petition of the commission, reassess the taxable property situated upon
or in, or added to, the allocation area, effective on the next assessment
date after the petition.
(f) Notwithstanding any other law, the assessed value of all taxable
property in the allocation area, for purposes of tax limitation, property
tax replacement, and formulation of the budget, tax rate, and tax levy
for each political subdivision in which the property is located is the
lesser of:
(1) the assessed value of the property as valued without regard to
this section; or
(2) the base assessed value.
(g) If any part of the allocation area is located in an enterprise zone
created under IC 5-28-15, the unit that designated the allocation area
shall create funds as specified in this subsection. A unit that has
obligations, bonds, or leases payable from allocated tax proceeds under
subsection (b)(3) shall establish an allocation fund for the purposes
specified in subsection (b)(3) and a special zone fund. Such a unit
shall, until the end of the enterprise zone phase out period, deposit each
year in the special zone fund the amount in the allocation fund derived
from property tax proceeds in excess of those described in subsection
(b)(1) and (b)(2) from property located in the enterprise zone that
exceeds the amount sufficient for the purposes specified in subsection
(b)(3) for the year. A unit that has no obligations, bonds, or leases
payable from allocated tax proceeds under subsection (b)(3) shall
establish a special zone fund and deposit all the property tax proceeds
in excess of those described in subsection (b)(1) and (b)(2) in the fund
derived from property tax proceeds in excess of those described in
subsection (b)(1) and (b)(2) from property located in the enterprise
zone. The unit that creates the special zone fund shall use the fund,
based on the recommendations of the urban enterprise association, for
one (1) or more of the following purposes:
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(1) To pay for programs in job training, job enrichment, and basic
skill development designed to benefit residents and employers in
the enterprise zone. The programs must reserve at least one-half
(1/2) of the enrollment in any session for residents of the
enterprise zone.
(2) To make loans and grants for the purpose of stimulating
business activity in the enterprise zone or providing employment
for enterprise zone residents in the enterprise zone. These loans
and grants may be made to the following:
(A) Businesses operating in the enterprise zone.
(B) Businesses that will move their operations to the enterprise
zone if such a loan or grant is made.
(3) To provide funds to carry out other purposes specified in
subsection (b)(3). However, where reference is made in
subsection (b)(3) to the allocation area, the reference refers for
purposes of payments from the special zone fund only to that part
of the allocation area that is also located in the enterprise zone.
(h) The state board of accounts and department of local government
finance shall make the rules and prescribe the forms and procedures
that they consider expedient for the implementation of this chapter.
After each reassessment under a reassessment plan prepared under
IC 6-1.1-4-4.2, the department of local government finance county
auditor shall, on forms prescribed by the department of local
government finance, adjust the base assessed value one (1) time to
neutralize any effect of the reassessment of the real property in the area
on the property tax proceeds allocated to the redevelopment district
under this section. After each annual adjustment under IC 6-1.1-4-4.5,
the department of local government finance county auditor shall, on
forms prescribed by the department of local government finance,
adjust the base assessed value to neutralize any effect of the annual
adjustment on the property tax proceeds allocated to the redevelopment
district under this section. However, the adjustments under this
subsection may not include the effect of property tax abatements under
IC 6-1.1-12.1, and these adjustments may not produce less property tax
proceeds allocable to the redevelopment district under subsection
(b)(3) than would otherwise have been received if the reassessment
under the reassessment plan or annual adjustment had not occurred.
The department of local government finance may prescribe procedures
for county and township officials to follow to assist the department in
making the adjustments. The county auditor shall, in the manner
prescribed by the department of local government finance, submit
the forms required by this subsection to the department of local
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government finance no later than July 15 of each year.
(i) The allocation deadline referred to in subsection (b) is
determined in the following manner:
(1) The initial allocation deadline is December 31, 2011.
(2) Subject to subdivision (3), the initial allocation deadline and
subsequent allocation deadlines are automatically extended in
increments of five (5) years, so that allocation deadlines
subsequent to the initial allocation deadline fall on December 31,
2016, and December 31 of each fifth year thereafter.
(3) At least one (1) year before the date of an allocation deadline
determined under subdivision (2), the general assembly may enact
a law that:
(A) terminates the automatic extension of allocation deadlines
under subdivision (2); and
(B) specifically designates a particular date as the final
allocation deadline.
(j) If the commission adopts a declaratory resolution or an
amendment to a declaratory resolution that contains an allocation
provision and the commission makes either of the filings required
under section 10(e) of this chapter after the first anniversary of the
effective date of the allocation provision, the auditor of the county in
which the unit is located shall compute the base assessed value for the
allocation area using the assessment date immediately preceding the
later of:
(1) the date on which the documents are filed with the county
auditor; or
(2) the date on which the documents are filed with the department
of local government finance.
(k) For an allocation area established after June 30, 2024,
"residential property" refers to the assessed value of property that is
allocated to the one percent (1%) homestead land and improvement
categories in the county tax and billing software system. along with the
residential assessed value as defined for purposes of calculating the
rate for the local income tax property tax relief credit designated for
residential property under IC 6-3.6-5-6(d)(3) (before its expiration).
SECTION 247. IC 36-7-15.1-26.6, AS ADDED BY P.L.249-2015,
SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 26.6. (a) The commission may enter into a written
agreement with a taxpayer who owns, or is otherwise obligated to pay
property taxes on, tangible property that is or will be located in an
allocation area established under this chapter in which the taxpayer
waives review of any assessment of the taxpayer's tangible property
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that is located in the allocation area for an assessment date that occurs
during the term of any specified bond or lease obligations that are
payable from property taxes in accordance with an allocation provision
for the allocation area and any applicable statute, ordinance, or
resolution. An agreement described in this section may precede the
establishment of the allocation area or the determination to issue bonds
or enter into leases payable from the allocated property taxes.
(b) The original owner of each nonowner occupied residential
property subject to the two percent (2%) tax cap, that is located in
the tax increment financing area and is excluded from the base
assessed value, shall upon completion of construction enter into a
written agreement with the redevelopment commission indicating
the owner shall be obligated to pay the property tax for the portion
of outstanding bonds in the tax increment financing district
attributable to the property until the term length of the original
outstanding bond is retired. The written agreement with the
redevelopment commission shall be considered a lien on the
property and shall be included as part of the residential real estate
sales disclosure under IC 32-21-5. If the property is subsequently
sold as a homestead property and becomes subject to the one
percent (1%) tax cap, the new owner shall be responsible for the
lien on the property attributable to the written agreement with the
redevelopment commission, and the new homestead property
owner shall be obligated to fulfill the terms of the written
agreement including the payment of the property tax liability
included in the agreement. This subsection does not apply to
multi-family apartments.
SECTION 248. IC 36-7-15.1-26.8, AS ADDED BY P.L.123-2024,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 26.8. (a) Notwithstanding any other law, if the
Indiana economic development corporation subsequently designates
territory that is located in an existing allocation area under this chapter
as an innovation development district under IC 36-7-32.5, the
allocation area may not be renewed or extended under this chapter until
the term of the innovation development district expires.
(b) Notwithstanding any other law, for taxing districts that
include multiple tax increment financing districts under this
chapter, the original tax increment financing district does not
expire and stays active only for the purpose of satisfying
outstanding bonds issued by the subsequent tax increment
financing district, only if the redevelopment commission completes
the following requirements:
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(1) Provides a written appeal to and receives the approval of
the department of local government finance.
(2) Provides written notice to the state board of accounts of
the appeal.
SECTION 249. IC 36-7-15.1-35, AS AMENDED BY P.L.257-2019,
SECTION 128, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 35. (a) Notwithstanding section
26(a) of this chapter, with respect to the allocation and distribution of
property taxes for the accomplishment of a program adopted under
section 32 of this chapter, "base assessed value" means, subject to
section 26(j) of this chapter, the net assessed value of all of the land as
finally determined for the assessment date immediately preceding the
effective date of the allocation provision, as adjusted under section
26(h) of this chapter. However, "base assessed value" does not include
the value of real property improvements to the land.
(b) The special fund established under section 26(b) of this chapter
for the allocation area for a program adopted under section 32 of this
chapter may be used only for purposes related to the accomplishment
of the program, including the following:
(1) The construction, rehabilitation, or repair of residential units
within the allocation area.
(2) The construction, reconstruction, or repair of infrastructure
(such as streets, sidewalks, and sewers) within or serving the
allocation area.
(3) The acquisition of real property and interests in real property
within the allocation area.
(4) The demolition of real property within the allocation area.
(5) To provide financial assistance to enable individuals and
families to purchase or lease residential units within the allocation
area. However, financial assistance may be provided only to those
individuals and families whose income is at or below the county's
median income for individuals and families, respectively.
(6) To provide financial assistance to neighborhood development
corporations to permit them to provide financial assistance for the
purposes described in subdivision (5).
(7) For property taxes first due and payable before 2009, to
provide each taxpayer in the allocation area a credit for property
tax replacement as determined under subsections (c) and (d).
However, this credit may be provided by the commission only if
the city-county legislative body establishes the credit by
ordinance adopted in the year before the year in which the credit
is provided.
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(c) The maximum credit that may be provided under subsection
(b)(7) to a taxpayer in a taxing district that contains all or part of an
allocation area established for a program adopted under section 32 of
this chapter shall be determined as follows:
STEP ONE: Determine that part of the sum of the amounts
described in IC 6-1.1-21-2(g)(1)(A) and IC 6-1.1-21-2(g)(2)
through IC 6-1.1-21-2(g)(5) (before their repeal) that is
attributable to the taxing district.
STEP TWO: Divide:
(A) that part of each county's eligible property tax replacement
amount (as defined in IC 6-1.1-21-2 (before its repeal)) for
that year as determined under IC 6-1.1-21-4(a)(1) (before its
repeal) that is attributable to the taxing district; by
(B) the amount determined under STEP ONE.
STEP THREE: Multiply:
(A) the STEP TWO quotient; by
(B) the taxpayer's taxes (as defined in IC 6-1.1-21-2 (before its
repeal)) levied in the taxing district allocated to the allocation
fund, including the amount that would have been allocated but
for the credit.
(d) Except as provided in subsection (g), the commission may
determine to grant to taxpayers in an allocation area from its allocation
fund a credit under this section, as calculated under subsection (c), by
applying one-half (1/2) of the credit to each installment of taxes (as
defined in IC 6-1.1-21-2 (before its repeal)) that under IC 6-1.1-22-9
are due and payable in a year. Except as provided in subsection (g),
one-half (1/2) of the credit shall be applied to each installment of taxes
(as defined in IC 6-1.1-21-2 (before its repeal)). The commission must
provide for the credit annually by a resolution and must find in the
resolution the following:
(1) That the money to be collected and deposited in the allocation
fund, based upon historical collection rates, after granting the
credit will equal the amounts payable for contractual obligations
from the fund, plus ten percent (10%) of those amounts.
(2) If bonds payable from the fund are outstanding, that there is
a debt service reserve for the bonds that at least equals the amount
of the credit to be granted.
(3) If bonds of a lessor under section 17.1 of this chapter or under
IC 36-1-10 are outstanding and if lease rentals are payable from
the fund, that there is a debt service reserve for those bonds that
at least equals the amount of the credit to be granted.
If the tax increment is insufficient to grant the credit in full, the
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commission may grant the credit in part, prorated among all taxpayers.
(e) Notwithstanding section 26(b) of this chapter, the special fund
established under section 26(b) of this chapter for the allocation area
for a program adopted under section 32 of this chapter may only be
used to do one (1) or more of the following:
(1) Accomplish one (1) or more of the actions set forth in section
26(b)(3)(A) through 26(b)(3)(H) of this chapter.
(2) Reimburse the consolidated city for expenditures made by the
city in order to accomplish the housing program in that allocation
area.
The special fund may not be used for operating expenses of the
commission.
(f) Notwithstanding section 26(b) of this chapter, the commission
shall, relative to the special fund established under section 26(b) of this
chapter for an allocation area for a program adopted under section 32
of this chapter, do the following before June 15 of each year:
(1) Determine the amount, if any, by which the assessed value of
the taxable property in the allocation area, when multiplied by the
estimated tax rate of the allocation area, will exceed the amount
of assessed value needed to produce the property taxes necessary
to:
(A) make the distribution required under section 26(b)(2) of
this chapter;
(B) make, when due, principal and interest payments on bonds
described in section 26(b)(3) of this chapter;
(C) pay the amount necessary for other purposes described in
section 26(b)(3) of this chapter; and
(D) reimburse the consolidated city for anticipated
expenditures described in subsection (e)(2).
(2) Provide a written notice to the county auditor, the legislative
body of the consolidated city, the officers who are authorized to
fix budgets, tax rates, and tax levies under IC 6-1.1-17-5 for each
of the other taxing units that is wholly or partly located within the
allocation area, and (in an electronic format) the department of
local government finance. The notice must:
(A) state the amount, if any, of excess assessed value that the
commission has determined may be allocated to the respective
taxing units in the manner prescribed in section 26(b)(1) of
this chapter; or
(B) state that the commission has determined that there is no
excess assessed value that may be allocated to the respective
taxing units in the manner prescribed in section 26(b)(1) of
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this chapter.
The county auditor shall allocate to the respective taxing units the
amount, if any, of excess assessed value determined by the
commission. If a commission fails to provide the notice under
this subdivision, the county auditor shall allocate five percent
(5%) of the assessed value in the allocation area that is used
to calculate the allocation and distribution of allocated tax
proceeds under this section to the respective taxing units.
However, if the commission notifies the county auditor and
the department of local government finance, no later than
July 1, that it is unable to meet its debt service obligations
with regard to the allocation area without all or part of the
allocated tax proceeds attributed to the assessed value that
has been allocated to the respective taxing units, then the
county auditor may not allocate five percent (5%) of the
assessed value in the allocation area that is used to calculate
the allocation and distribution of allocated tax proceeds under
this section to the respective taxing units.
(g) This subsection applies to an allocation area only to the extent
that the net assessed value of property that is assessed as residential
property under the rules of the department of local government finance
is not included in the base assessed value. If property tax installments
with respect to a homestead (as defined in IC 6-1.1-20.9-1 (before its
repeal)) are due in installments established by the department of local
government finance under IC 6-1.1-22-9.5, each taxpayer subject to
those installments in an allocation area is entitled to an additional
credit under subsection (d) for the taxes (as defined in IC 6-1.1-21-2
(before its repeal)) due in installments. The credit shall be applied in
the same proportion to each installment of taxes (as defined in
IC 6-1.1-21-2 (before its repeal)).
SECTION 250. IC 36-7-15.1-53, AS AMENDED BY P.L.174-2022,
SECTION 73, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 53. (a) As used in this section:
"Allocation area" means that part of a redevelopment project area
to which an allocation provision of a resolution adopted under section
40 of this chapter refers for purposes of distribution and allocation of
property taxes.
"Base assessed value" means, subject to subsection (j):
(1) the net assessed value of all the property as finally determined
for the assessment date immediately preceding the effective date
of the allocation provision of the declaratory resolution, as
adjusted under subsection (h); plus
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(2) to the extent that it is not included in subdivision (1), the net
assessed value of property that is assessed as residential property
under the rules of the department of local government finance, as
finally determined for the current assessment date.
Except as provided in section 55 of this chapter, "property taxes"
means taxes imposed under IC 6-1.1 on real property.
(b) A resolution adopted under section 40 of this chapter on or
before the allocation deadline determined under subsection (i) may
include a provision with respect to the allocation and distribution of
property taxes for the purposes and in the manner provided in this
section. A resolution previously adopted may include an allocation
provision by the amendment of that resolution on or before the
allocation deadline determined under subsection (i) in accordance with
the procedures required for its original adoption. A declaratory
resolution or an amendment that establishes an allocation provision
must be approved by resolution of the legislative body of the excluded
city and must specify an expiration date for the allocation provision.
For an allocation area established before July 1, 2008, the expiration
date may not be more than thirty (30) years after the date on which the
allocation provision is established. For an allocation area established
after June 30, 2008, the expiration date may not be more than
twenty-five (25) years after the date on which the first obligation was
incurred to pay principal and interest on bonds or lease rentals on
leases payable from tax increment revenues. However, with respect to
bonds or other obligations that were issued before July 1, 2008, if any
of the bonds or other obligations that were scheduled when issued to
mature before the specified expiration date and that are payable only
from allocated tax proceeds with respect to the allocation area remain
outstanding as of the expiration date, the allocation provision does not
expire until all of the bonds or other obligations are no longer
outstanding. The allocation provision may apply to all or part of the
redevelopment project area. The allocation provision must require that
any property taxes subsequently levied by or for the benefit of any
public body entitled to a distribution of property taxes on taxable
property in the allocation area be allocated and distributed as follows:
(1) Except as otherwise provided in this section, the proceeds of
the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made;
or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
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the respective taxing units.
(2) The excess of the proceeds of the property taxes imposed for
the assessment date with respect to which the allocation and
distribution is made that are attributable to taxes imposed after
being approved by the voters in a referendum or local public
question conducted after April 30, 2010, not otherwise included
in subdivision (1) shall be allocated to and, when collected, paid
into the funds of the taxing unit for which the referendum or local
public question was conducted.
(3) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivisions (1) and (2)
shall be allocated to the redevelopment district and, when
collected, paid into a special fund for that allocation area that may
be used by the redevelopment district only to do one (1) or more
of the following:
(A) Pay the principal of and interest on any obligations
payable solely from allocated tax proceeds that are incurred by
the redevelopment district for the purpose of financing or
refinancing the redevelopment of that allocation area.
(B) Establish, augment, or restore the debt service reserve for
bonds payable solely or in part from allocated tax proceeds in
that allocation area.
(C) Pay the principal of and interest on bonds payable from
allocated tax proceeds in that allocation area and from the
special tax levied under section 50 of this chapter.
(D) Pay the principal of and interest on bonds issued by the
excluded city to pay for local public improvements that are
physically located in or physically connected to that allocation
area.
(E) Pay premiums on the redemption before maturity of bonds
payable solely or in part from allocated tax proceeds in that
allocation area.
(F) Make payments on leases payable from allocated tax
proceeds in that allocation area under section 46 of this
chapter.
(G) Reimburse the excluded city for expenditures for local
public improvements (which include buildings, park facilities,
and other items set forth in section 45 of this chapter) that are
physically located in or physically connected to that allocation
area.
(H) Reimburse the unit for rentals paid by it for a building or
parking facility that is physically located in or physically
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connected to that allocation area under any lease entered into
under IC 36-1-10.
(I) Reimburse public and private entities for expenses incurred
in training employees of industrial facilities that are located:
(i) in the allocation area; and
(ii) on a parcel of real property that has been classified as
industrial property under the rules of the department of local
government finance.
However, the total amount of money spent for this purpose in
any year may not exceed the total amount of money in the
allocation fund that is attributable to property taxes paid by the
industrial facilities described in this clause. The
reimbursements under this clause must be made within three
(3) years after the date on which the investments that are the
basis for the increment financing are made.
The special fund may not be used for operating expenses of the
commission.
(4) Before June 15 of each year, the commission shall do the
following:
(A) Determine the amount, if any, by which the assessed value
of the taxable property in the allocation area for the most
recent assessment date minus the base assessed value, when
multiplied by the estimated tax rate of the allocation area, will
exceed the amount of assessed value needed to provide the
property taxes necessary to make, when due, principal and
interest payments on bonds described in subdivision (3) plus
the amount necessary for other purposes described in
subdivision (3) and subsection (g).
(B) Provide a written notice to the county auditor, the fiscal
body of the county or municipality that established the
department of redevelopment, the officers who are authorized
to fix budgets, tax rates, and tax levies under IC 6-1.1-17-5 for
each of the other taxing units that is wholly or partly located
within the allocation area, and (in an electronic format) the
department of local government finance. The notice must:
(i) state the amount, if any, of excess assessed value that the
commission has determined may be allocated to the
respective taxing units in the manner prescribed in
subdivision (1); or
(ii) state that the commission has determined that there is no
excess assessed value that may be allocated to the respective
taxing units in the manner prescribed in subdivision (1).
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The county auditor shall allocate to the respective taxing units
the amount, if any, of excess assessed value determined by the
commission. The commission may not authorize an allocation
to the respective taxing units under this subdivision if to do so
would endanger the interests of the holders of bonds described
in subdivision (3). If a commission fails to provide the
notice under this clause, the county auditor shall allocate
five percent (5%) of the assessed value in the allocation
area that is used to calculate the allocation and distribution
of allocated tax proceeds under this section to the
respective taxing units. However, if the commission notifies
the county auditor and the department of local government
finance, no later than July 1, that it is unable to meet its
debt service obligations with regard to the allocation area
without all or part of the allocated tax proceeds attributed
to the assessed value that has been allocated to the
respective taxing units, then the county auditor may not
allocate five percent (5%) of the assessed value in the
allocation area that is used to calculate the allocation and
distribution of allocated tax proceeds under this section to
the respective taxing units.
(c) For the purpose of allocating taxes levied by or for any taxing
unit or units, the assessed value of taxable property in a territory in the
allocation area that is annexed by any taxing unit after the effective
date of the allocation provision of the resolution is the lesser of:
(1) the assessed value of the property for the assessment date with
respect to which the allocation and distribution is made; or
(2) the base assessed value.
(d) Property tax proceeds allocable to the redevelopment district
under subsection (b)(3) may, subject to subsection (b)(4), be
irrevocably pledged by the redevelopment district for payment as set
forth in subsection (b)(3).
(e) Notwithstanding any other law, each assessor shall, upon
petition of the commission, reassess the taxable property situated upon
or in, or added to, the allocation area, effective on the next assessment
date after the petition.
(f) Notwithstanding any other law, the assessed value of all taxable
property in the allocation area, for purposes of tax limitation, property
tax replacement, and formulation of the budget, tax rate, and tax levy
for each political subdivision in which the property is located, is the
lesser of:
(1) the assessed value of the property as valued without regard to
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this section; or
(2) the base assessed value.
(g) If any part of the allocation area is located in an enterprise zone
created under IC 5-28-15, the unit that designated the allocation area
shall create funds as specified in this subsection. A unit that has
obligations, bonds, or leases payable from allocated tax proceeds under
subsection (b)(3) shall establish an allocation fund for the purposes
specified in subsection (b)(3) and a special zone fund. Such a unit
shall, until the end of the enterprise zone phase out period, deposit each
year in the special zone fund the amount in the allocation fund derived
from property tax proceeds in excess of those described in subsection
(b)(1) and (b)(2) from property located in the enterprise zone that
exceeds the amount sufficient for the purposes specified in subsection
(b)(3) for the year. A unit that has no obligations, bonds, or leases
payable from allocated tax proceeds under subsection (b)(3) shall
establish a special zone fund and deposit all the property tax proceeds
in excess of those described in subsection (b)(1) and (b)(2) in the fund
derived from property tax proceeds in excess of those described in
subsection (b)(1) and (b)(2) from property located in the enterprise
zone. The unit that creates the special zone fund shall use the fund,
based on the recommendations of the urban enterprise association, for
one (1) or more of the following purposes:
(1) To pay for programs in job training, job enrichment, and basic
skill development designed to benefit residents and employers in
the enterprise zone. The programs must reserve at least one-half
(1/2) of the enrollment in any session for residents of the
enterprise zone.
(2) To make loans and grants for the purpose of stimulating
business activity in the enterprise zone or providing employment
for enterprise zone residents in an enterprise zone. These loans
and grants may be made to the following:
(A) Businesses operating in the enterprise zone.
(B) Businesses that will move their operations to the enterprise
zone if such a loan or grant is made.
(3) To provide funds to carry out other purposes specified in
subsection (b)(3). However, where reference is made in
subsection (b)(3) to the allocation area, the reference refers, for
purposes of payments from the special zone fund, only to that part
of the allocation area that is also located in the enterprise zone.
(h) The state board of accounts and department of local government
finance shall make the rules and prescribe the forms and procedures
that they consider expedient for the implementation of this chapter.
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After each reassessment of real property in an area under a county's
reassessment plan prepared under IC 6-1.1-4-4.2, the department of
local government finance county auditor shall, on forms prescribed
by the department of local government finance, adjust the base
assessed value one (1) time to neutralize any effect of the reassessment
of the real property in the area on the property tax proceeds allocated
to the redevelopment district under this section. After each annual
adjustment under IC 6-1.1-4-4.5, the department of local government
finance county auditor shall, on forms prescribed by the
department of local government finance, adjust the base assessed
value to neutralize any effect of the annual adjustment on the property
tax proceeds allocated to the redevelopment district under this section.
However, the adjustments under this subsection may not include the
effect of property tax abatements under IC 6-1.1-12.1, and these
adjustments may not produce less property tax proceeds allocable to
the redevelopment district under subsection (b)(3) than would
otherwise have been received if the reassessment under the county's
reassessment plan or annual adjustment had not occurred. The
department of local government finance may prescribe procedures for
county and township officials to follow to assist the department in
making the adjustments. The county auditor shall, in the manner
prescribed by the department of local government finance, submit
the forms required by this subsection to the department of local
government finance no later than July 15 of each year.
(i) The allocation deadline referred to in subsection (b) is
determined in the following manner:
(1) The initial allocation deadline is December 31, 2011.
(2) Subject to subdivision (3), the initial allocation deadline and
subsequent allocation deadlines are automatically extended in
increments of five (5) years, so that allocation deadlines
subsequent to the initial allocation deadline fall on December 31,
2016, and December 31 of each fifth year thereafter.
(3) At least one (1) year before the date of an allocation deadline
determined under subdivision (2), the general assembly may enact
a law that:
(A) terminates the automatic extension of allocation deadlines
under subdivision (2); and
(B) specifically designates a particular date as the final
allocation deadline.
(j) If the commission adopts a declaratory resolution or an
amendment to a declaratory resolution that contains an allocation
provision and the commission makes either of the filings required
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under section 10(e) of this chapter after the first anniversary of the
effective date of the allocation provision, the auditor of the county in
which the unit is located shall compute the base assessed value for the
allocation area using the assessment date immediately preceding the
later of:
(1) the date on which the documents are filed with the county
auditor; or
(2) the date on which the documents are filed with the department
of local government finance.
(k) For an allocation area established after June 30, 2024,
"residential property" refers to the assessed value of property that is
allocated to the one percent (1%) homestead land and improvement
categories in the county tax and billing software system. along with the
residential assessed value as defined for purposes of calculating the
rate for the local income tax property tax relief credit designated for
residential property under IC 6-3.6-5-6(d)(3).
SECTION 251. IC 36-7-15.1-53, AS AMENDED BY P.L.68-2025,
SECTION 236, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2028]: Sec. 53. (a) As used in this section:
"Allocation area" means that part of a redevelopment project area
to which an allocation provision of a resolution adopted under section
40 of this chapter refers for purposes of distribution and allocation of
property taxes.
"Base assessed value" means, subject to subsection (j):
(1) the net assessed value of all the property as finally determined
for the assessment date immediately preceding the effective date
of the allocation provision of the declaratory resolution, as
adjusted under subsection (h); plus
(2) to the extent that it is not included in subdivision (1), the net
assessed value of property that is assessed as residential property
under the rules of the department of local government finance, as
finally determined for the current assessment date.
Except as provided in section 55 of this chapter, "property taxes"
means taxes imposed under IC 6-1.1 on real property.
(b) A resolution adopted under section 40 of this chapter on or
before the allocation deadline determined under subsection (i) may
include a provision with respect to the allocation and distribution of
property taxes for the purposes and in the manner provided in this
section. A resolution previously adopted may include an allocation
provision by the amendment of that resolution on or before the
allocation deadline determined under subsection (i) in accordance with
the procedures required for its original adoption. A declaratory
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resolution or an amendment that establishes an allocation provision
must be approved by resolution of the legislative body of the excluded
city and must specify an expiration date for the allocation provision.
For an allocation area established before July 1, 2008, the expiration
date may not be more than thirty (30) years after the date on which the
allocation provision is established. For an allocation area established
after June 30, 2008, the expiration date may not be more than
twenty-five (25) years after the date on which the first obligation was
incurred to pay principal and interest on bonds or lease rentals on
leases payable from tax increment revenues. However, with respect to
bonds or other obligations that were issued before July 1, 2008, if any
of the bonds or other obligations that were scheduled when issued to
mature before the specified expiration date and that are payable only
from allocated tax proceeds with respect to the allocation area remain
outstanding as of the expiration date, the allocation provision does not
expire until all of the bonds or other obligations are no longer
outstanding. The allocation provision may apply to all or part of the
redevelopment project area. The allocation provision must require that
any property taxes subsequently levied by or for the benefit of any
public body entitled to a distribution of property taxes on taxable
property in the allocation area be allocated and distributed as follows:
(1) Except as otherwise provided in this section, the proceeds of
the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made;
or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
the respective taxing units.
(2) The excess of the proceeds of the property taxes imposed for
the assessment date with respect to which the allocation and
distribution is made that are attributable to taxes imposed after
being approved by the voters in a referendum or local public
question conducted after April 30, 2010, not otherwise included
in subdivision (1) shall be allocated to and, when collected, paid
into the funds of the taxing unit for which the referendum or local
public question was conducted.
(3) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivisions (1) and (2)
shall be allocated to the redevelopment district and, when
collected, paid into a special fund for that allocation area that may
be used by the redevelopment district only to do one (1) or more
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of the following:
(A) Pay the principal of and interest on any obligations
payable solely from allocated tax proceeds that are incurred by
the redevelopment district for the purpose of financing or
refinancing the redevelopment of that allocation area.
(B) Establish, augment, or restore the debt service reserve for
bonds payable solely or in part from allocated tax proceeds in
that allocation area.
(C) Pay the principal of and interest on bonds payable from
allocated tax proceeds in that allocation area and from the
special tax levied under section 50 of this chapter.
(D) Pay the principal of and interest on bonds issued by the
excluded city to pay for local public improvements that are
physically located in or physically connected to that allocation
area.
(E) Pay premiums on the redemption before maturity of bonds
payable solely or in part from allocated tax proceeds in that
allocation area.
(F) Make payments on leases payable from allocated tax
proceeds in that allocation area under section 46 of this
chapter.
(G) Reimburse the excluded city for expenditures for local
public improvements (which include buildings, park facilities,
and other items set forth in section 45 of this chapter) that are
physically located in or physically connected to that allocation
area.
(H) Reimburse the unit for rentals paid by it for a building or
parking facility that is physically located in or physically
connected to that allocation area under any lease entered into
under IC 36-1-10.
(I) Reimburse public and private entities for expenses incurred
in training employees of industrial facilities that are located:
(i) in the allocation area; and
(ii) on a parcel of real property that has been classified as
industrial property under the rules of the department of local
government finance.
However, the total amount of money spent for this purpose in
any year may not exceed the total amount of money in the
allocation fund that is attributable to property taxes paid by the
industrial facilities described in this clause. The
reimbursements under this clause must be made within three
(3) years after the date on which the investments that are the
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basis for the increment financing are made.
The special fund may not be used for operating expenses of the
commission.
(4) Before June 15 of each year, the commission shall do the
following:
(A) Determine the amount, if any, by which the assessed value
of the taxable property in the allocation area for the most
recent assessment date minus the base assessed value, when
multiplied by the estimated tax rate of the allocation area, will
exceed the amount of assessed value needed to provide the
property taxes necessary to make, when due, principal and
interest payments on bonds described in subdivision (3) plus
the amount necessary for other purposes described in
subdivision (3) and subsection (g).
(B) Provide a written notice to the county auditor, the fiscal
body of the county or municipality that established the
department of redevelopment, the officers who are authorized
to fix budgets, tax rates, and tax levies under IC 6-1.1-17-5 for
each of the other taxing units that is wholly or partly located
within the allocation area, and (in an electronic format) the
department of local government finance. The notice must:
(i) state the amount, if any, of excess assessed value that the
commission has determined may be allocated to the
respective taxing units in the manner prescribed in
subdivision (1); or
(ii) state that the commission has determined that there is no
excess assessed value that may be allocated to the respective
taxing units in the manner prescribed in subdivision (1).
The county auditor shall allocate to the respective taxing units
the amount, if any, of excess assessed value determined by the
commission. The commission may not authorize an allocation
to the respective taxing units under this subdivision if to do so
would endanger the interests of the holders of bonds described
in subdivision (3). If a commission fails to provide the
notice under this clause, the county auditor shall allocate
five percent (5%) of the assessed value in the allocation
area that is used to calculate the allocation and distribution
of allocated tax proceeds under this section to the
respective taxing units. However, if the commission notifies
the county auditor and the department of local government
finance, no later than July 1, that it is unable to meet its
debt service obligations with regard to the allocation area
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without all or part of the allocated tax proceeds attributed
to the assessed value that has been allocated to the
respective taxing units, then the county auditor may not
allocate five percent (5%) of the assessed value in the
allocation area that is used to calculate the allocation and
distribution of allocated tax proceeds under this section to
the respective taxing units.
(c) For the purpose of allocating taxes levied by or for any taxing
unit or units, the assessed value of taxable property in a territory in the
allocation area that is annexed by any taxing unit after the effective
date of the allocation provision of the resolution is the lesser of:
(1) the assessed value of the property for the assessment date with
respect to which the allocation and distribution is made; or
(2) the base assessed value.
(d) Property tax proceeds allocable to the redevelopment district
under subsection (b)(3) may, subject to subsection (b)(4), be
irrevocably pledged by the redevelopment district for payment as set
forth in subsection (b)(3).
(e) Notwithstanding any other law, each assessor shall, upon
petition of the commission, reassess the taxable property situated upon
or in, or added to, the allocation area, effective on the next assessment
date after the petition.
(f) Notwithstanding any other law, the assessed value of all taxable
property in the allocation area, for purposes of tax limitation, property
tax replacement, and formulation of the budget, tax rate, and tax levy
for each political subdivision in which the property is located, is the
lesser of:
(1) the assessed value of the property as valued without regard to
this section; or
(2) the base assessed value.
(g) If any part of the allocation area is located in an enterprise zone
created under IC 5-28-15, the unit that designated the allocation area
shall create funds as specified in this subsection. A unit that has
obligations, bonds, or leases payable from allocated tax proceeds under
subsection (b)(3) shall establish an allocation fund for the purposes
specified in subsection (b)(3) and a special zone fund. Such a unit
shall, until the end of the enterprise zone phase out period, deposit each
year in the special zone fund the amount in the allocation fund derived
from property tax proceeds in excess of those described in subsection
(b)(1) and (b)(2) from property located in the enterprise zone that
exceeds the amount sufficient for the purposes specified in subsection
(b)(3) for the year. A unit that has no obligations, bonds, or leases
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payable from allocated tax proceeds under subsection (b)(3) shall
establish a special zone fund and deposit all the property tax proceeds
in excess of those described in subsection (b)(1) and (b)(2) in the fund
derived from property tax proceeds in excess of those described in
subsection (b)(1) and (b)(2) from property located in the enterprise
zone. The unit that creates the special zone fund shall use the fund,
based on the recommendations of the urban enterprise association, for
one (1) or more of the following purposes:
(1) To pay for programs in job training, job enrichment, and basic
skill development designed to benefit residents and employers in
the enterprise zone. The programs must reserve at least one-half
(1/2) of the enrollment in any session for residents of the
enterprise zone.
(2) To make loans and grants for the purpose of stimulating
business activity in the enterprise zone or providing employment
for enterprise zone residents in an enterprise zone. These loans
and grants may be made to the following:
(A) Businesses operating in the enterprise zone.
(B) Businesses that will move their operations to the enterprise
zone if such a loan or grant is made.
(3) To provide funds to carry out other purposes specified in
subsection (b)(3). However, where reference is made in
subsection (b)(3) to the allocation area, the reference refers, for
purposes of payments from the special zone fund, only to that part
of the allocation area that is also located in the enterprise zone.
(h) The state board of accounts and department of local government
finance shall make the rules and prescribe the forms and procedures
that they consider expedient for the implementation of this chapter.
After each reassessment of real property in an area under a county's
reassessment plan prepared under IC 6-1.1-4-4.2, the department of
local government finance county auditor shall, on forms prescribed
by the department of local government finance, adjust the base
assessed value one (1) time to neutralize any effect of the reassessment
of the real property in the area on the property tax proceeds allocated
to the redevelopment district under this section. After each annual
adjustment under IC 6-1.1-4-4.5, the department of local government
finance county auditor shall, on forms prescribed by the
department of local government finance, adjust the base assessed
value to neutralize any effect of the annual adjustment on the property
tax proceeds allocated to the redevelopment district under this section.
However, the adjustments under this subsection may not include the
effect of property tax abatements under IC 6-1.1-12.1, and these
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adjustments may not produce less property tax proceeds allocable to
the redevelopment district under subsection (b)(3) than would
otherwise have been received if the reassessment under the county's
reassessment plan or annual adjustment had not occurred. The
department of local government finance may prescribe procedures for
county and township officials to follow to assist the department in
making the adjustments. The county auditor shall, in the manner
prescribed by the department of local government finance, submit
the forms required by this subsection to the department of local
government finance no later than July 15 of each year.
(i) The allocation deadline referred to in subsection (b) is
determined in the following manner:
(1) The initial allocation deadline is December 31, 2011.
(2) Subject to subdivision (3), the initial allocation deadline and
subsequent allocation deadlines are automatically extended in
increments of five (5) years, so that allocation deadlines
subsequent to the initial allocation deadline fall on December 31,
2016, and December 31 of each fifth year thereafter.
(3) At least one (1) year before the date of an allocation deadline
determined under subdivision (2), the general assembly may enact
a law that:
(A) terminates the automatic extension of allocation deadlines
under subdivision (2); and
(B) specifically designates a particular date as the final
allocation deadline.
(j) If the commission adopts a declaratory resolution or an
amendment to a declaratory resolution that contains an allocation
provision and the commission makes either of the filings required
under section 10(e) of this chapter after the first anniversary of the
effective date of the allocation provision, the auditor of the county in
which the unit is located shall compute the base assessed value for the
allocation area using the assessment date immediately preceding the
later of:
(1) the date on which the documents are filed with the county
auditor; or
(2) the date on which the documents are filed with the department
of local government finance.
(k) For an allocation area established after June 30, 2024,
"residential property" refers to the assessed value of property that is
allocated to the one percent (1%) homestead land and improvement
categories in the county tax and billing software system. along with the
residential assessed value as defined for purposes of calculating the
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rate for the local income tax property tax relief credit designated for
residential property under IC 6-3.6-5-6(d)(3) (before its expiration).
SECTION 252. IC 36-7-15.1-62, AS AMENDED BY P.L.257-2019,
SECTION 131, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 62. (a) Notwithstanding section
26(a) of this chapter, with respect to the allocation and distribution of
property taxes for the accomplishment of the purposes of an
age-restricted housing program adopted under section 59 of this
chapter, "base assessed value" means, subject to section 26(j) of this
chapter, the net assessed value of all of the property, other than
personal property, as finally determined for the assessment date
immediately preceding the effective date of the allocation provision, as
adjusted under section 26(h) of this chapter.
(b) The allocation fund established under section 26(b) of this
chapter for the allocation area for an age-restricted housing program
adopted under section 59 of this chapter may be used only for purposes
related to the accomplishment of the purposes of the program,
including, but not limited to, the following:
(1) The construction of any infrastructure (including streets,
sidewalks, and sewers) or local public improvements in, serving,
or benefiting the allocation area.
(2) The acquisition of real property and interests in real property
within the allocation area.
(3) The preparation of real property in anticipation of
development of the real property within the allocation area.
(4) To do any of the following:
(A) Pay the principal of and interest on bonds or any other
obligations payable from allocated tax proceeds in the
allocation area that are incurred by the redevelopment district
for the purpose of financing or refinancing the age-restricted
housing program established under section 59 of this chapter
for the allocation area.
(B) Establish, augment, or restore the debt service reserve for
bonds payable solely or in part from allocated tax proceeds in
the allocation area.
(C) Pay the principal of and interest on bonds payable from
allocated tax proceeds in the allocation area and from the
special tax levied under section 19 of this chapter.
(D) Pay the principal of and interest on bonds issued by the
unit to pay for local public improvements that are physically
located in or physically connected to the allocation area.
(E) Pay premiums on the redemption before maturity of bonds
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payable solely or in part from allocated tax proceeds in the
allocation area.
(F) Make payments on leases payable from allocated tax
proceeds in the allocation area under section 17.1 of this
chapter.
(G) Reimburse the unit for expenditures made by the unit for
local public improvements (which include buildings, parking
facilities, and other items described in section 17(a) of this
chapter) that are physically located in or physically connected
to the allocation area.
(c) Notwithstanding section 26(b) of this chapter, the commission
shall, relative to the allocation fund established under section 26(b) of
this chapter for an allocation area for an age-restricted housing program
adopted under section 59 of this chapter, do the following before June
15 of each year:
(1) Determine the amount, if any, by which the assessed value of
the taxable property in the allocation area for the most recent
assessment date minus the base assessed value, when multiplied
by the estimated tax rate of the allocation area, will exceed the
amount of assessed value needed to produce the property taxes
necessary to:
(A) make the distribution required under section 26(b)(2) of
this chapter;
(B) make, when due, principal and interest payments on bonds
described in section 26(b)(3) of this chapter;
(C) pay the amount necessary for other purposes described in
section 26(b)(3) of this chapter; and
(D) reimburse the county or municipality for anticipated
expenditures described in subsection (b)(2).
(2) Provide a written notice to the county auditor, the fiscal body
of the county or municipality that established the department of
redevelopment, the officers who are authorized to fix budgets, tax
rates, and tax levies under IC 6-1.1-17-5 for each of the other
taxing units that is wholly or partly located within the allocation
area, and (in an electronic format) the department of local
government finance. The notice must:
(A) state the amount, if any, of excess property taxes that the
commission has determined may be paid to the respective
taxing units in the manner prescribed in section 26(b)(1) of
this chapter; or
(B) state that the commission has determined that there is no
excess assessed value that may be allocated to the respective
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taxing units in the manner prescribed in subdivision (1).
The county auditor shall allocate to the respective taxing units the
amount, if any, of excess assessed value determined by the
commission. If a commission fails to provide the notice under
subdivision (2), the county auditor shall allocate five percent (5%)
of the assessed value in the allocation area that is used to calculate
the allocation and distribution of allocated tax proceeds under this
section to the respective taxing units. However, if the commission
notifies the county auditor and the department of local government
finance, no later than July 1, that it is unable to meet its debt
service obligations with regard to the allocation area without all or
part of the allocated tax proceeds attributed to the assessed value
that has been allocated to the respective taxing units, then the
county auditor may not allocate five percent (5%) of the assessed
value in the allocation area that is used to calculate the allocation
and distribution of allocated tax proceeds under this section to the
respective taxing units.
SECTION 253. IC 36-7-30-25, AS AMENDED BY P.L.174-2022,
SECTION 74, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 25. (a) The following definitions apply
throughout this section:
(1) "Allocation area" means that part of a military base reuse area
to which an allocation provision of a declaratory resolution
adopted under section 10 of this chapter refers for purposes of
distribution and allocation of property taxes.
(2) "Base assessed value" means, subject to subsection (i):
(A) the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
adoption date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A) or (C), the
net assessed value of any and all parcels or classes of parcels
identified as part of the base assessed value in the declaratory
resolution or an amendment thereto, as finally determined for
any subsequent assessment date; plus
(C) to the extent that it is not included in clause (A) or (B), the
net assessed value of property that is assessed as residential
property under the rules of the department of local government
finance, within the allocation area, as finally determined for
the current assessment date.
Clause (C) applies only to allocation areas established in a
military reuse area after June 30, 1997, and to the part of an
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allocation area that was established before June 30, 1997, and that
is added to an existing allocation area after June 30, 1997.
(3) "Property taxes" means taxes imposed under IC 6-1.1 on real
property.
(b) A declaratory resolution adopted under section 10 of this chapter
before the date set forth in IC 36-7-14-39(b) pertaining to declaratory
resolutions adopted under IC 36-7-14-15 may include a provision with
respect to the allocation and distribution of property taxes for the
purposes and in the manner provided in this section. A declaratory
resolution previously adopted may include an allocation provision by
the amendment of that declaratory resolution in accordance with the
procedures set forth in section 13 of this chapter. The allocation
provision may apply to all or part of the military base reuse area. The
allocation provision must require that any property taxes subsequently
levied by or for the benefit of any public body entitled to a distribution
of property taxes on taxable property in the allocation area be allocated
and distributed as follows:
(1) Except as otherwise provided in this section, the proceeds of
the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made;
or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
the respective taxing units.
(2) The excess of the proceeds of the property taxes imposed for
the assessment date with respect to which the allocation and
distribution are made that are attributable to taxes imposed after
being approved by the voters in a referendum or local public
question conducted after April 30, 2010, not otherwise included
in subdivision (1) shall be allocated to and, when collected, paid
into the funds of the taxing unit for which the referendum or local
public question was conducted.
(3) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivisions (1) and (2)
shall be allocated to the military base reuse district and, when
collected, paid into an allocation fund for that allocation area that
may be used by the military base reuse district and only to do one
(1) or more of the following:
(A) Pay the principal of and interest and redemption premium
on any obligations incurred by the military base reuse district
or any other entity for the purpose of financing or refinancing
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military base reuse activities in or directly serving or
benefiting that allocation area.
(B) Establish, augment, or restore the debt service reserve for
bonds payable solely or in part from allocated tax proceeds in
that allocation area or from other revenues of the reuse
authority, including lease rental revenues.
(C) Make payments on leases payable solely or in part from
allocated tax proceeds in that allocation area.
(D) Reimburse any other governmental body for expenditures
made for local public improvements (or structures) in or
directly serving or benefiting that allocation area.
(E) Pay expenses incurred by the reuse authority, any other
department of the unit, or a department of another
governmental entity for local public improvements or
structures that are in the allocation area or directly serving or
benefiting the allocation area, including expenses for the
operation and maintenance of these local public improvements
or structures if the reuse authority determines those operation
and maintenance expenses are necessary or desirable to carry
out the purposes of this chapter.
(F) Reimburse public and private entities for expenses
incurred in training employees of industrial facilities that are
located:
(i) in the allocation area; and
(ii) on a parcel of real property that has been classified as
industrial property under the rules of the department of local
government finance.
However, the total amount of money spent for this purpose in
any year may not exceed the total amount of money in the
allocation fund that is attributable to property taxes paid by the
industrial facilities described in this clause. The
reimbursements under this clause must be made not more than
three (3) years after the date on which the investments that are
the basis for the increment financing are made.
(G) Expend money and provide financial assistance as
authorized in section 9(a)(25) of this chapter.
Except as provided in clause (E), the allocation fund may not be
used for operating expenses of the reuse authority.
(4) Except as provided in subsection (g), before July 15 of each
year the reuse authority shall do the following:
(A) Determine the amount, if any, by which property taxes
payable to the allocation fund in the following year will exceed
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the amount of property taxes necessary to make, when due,
principal and interest payments on bonds described in
subdivision (3) plus the amount necessary for other purposes
described in subdivision (3).
(B) Provide a written notice to the county auditor, the fiscal
body of the unit that established the reuse authority, and the
officers who are authorized to fix budgets, tax rates, and tax
levies under IC 6-1.1-17-5 for each of the other taxing units
that is wholly or partly located within the allocation area. The
notice must:
(i) state the amount, if any, of excess property taxes that the
reuse authority has determined may be paid to the respective
taxing units in the manner prescribed in subdivision (1); or
(ii) state that the reuse authority has determined that there
are no excess property tax proceeds that may be allocated to
the respective taxing units in the manner prescribed in
subdivision (1).
The county auditor shall allocate to the respective taxing units
the amount, if any, of excess property tax proceeds determined
by the reuse authority. The reuse authority may not authorize
a payment to the respective taxing units under this subdivision
if to do so would endanger the interest of the holders of bonds
described in subdivision (3) or lessors under section 19 of this
chapter.
(c) For the purpose of allocating taxes levied by or for any taxing
unit or units, the assessed value of taxable property in a territory in the
allocation area that is annexed by a taxing unit after the effective date
of the allocation provision of the declaratory resolution is the lesser of:
(1) the assessed value of the property for the assessment date with
respect to which the allocation and distribution is made; or
(2) the base assessed value.
(d) Property tax proceeds allocable to the military base reuse district
under subsection (b)(3) may, subject to subsection (b)(4), be
irrevocably pledged by the military base reuse district for payment as
set forth in subsection (b)(3).
(e) Notwithstanding any other law, each assessor shall, upon
petition of the reuse authority, reassess the taxable property situated
upon or in or added to the allocation area, effective on the next
assessment date after the petition.
(f) Notwithstanding any other law, the assessed value of all taxable
property in the allocation area, for purposes of tax limitation, property
tax replacement, and the making of the budget, tax rate, and tax levy
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for each political subdivision in which the property is located is the
lesser of:
(1) the assessed value of the property as valued without regard to
this section; or
(2) the base assessed value.
(g) If any part of the allocation area is located in an enterprise zone
created under IC 5-28-15, the unit that designated the allocation area
shall create funds as specified in this subsection. A unit that has
obligations, bonds, or leases payable from allocated tax proceeds under
subsection (b)(3) shall establish an allocation fund for the purposes
specified in subsection (b)(3) and a special zone fund. Such a unit
shall, until the end of the enterprise zone phase out period, deposit each
year in the special zone fund any amount in the allocation fund derived
from property tax proceeds in excess of those described in subsection
(b)(1) and (b)(2) from property located in the enterprise zone that
exceeds the amount sufficient for the purposes specified in subsection
(b)(3) for the year. The amount sufficient for purposes specified in
subsection (b)(3) for the year shall be determined based on the pro rata
part of such current property tax proceeds from the part of the
enterprise zone that is within the allocation area as compared to all
such current property tax proceeds derived from the allocation area. A
unit that does not have obligations, bonds, or leases payable from
allocated tax proceeds under subsection (b)(3) shall establish a special
zone fund and deposit all the property tax proceeds in excess of those
described in subsection (b)(1) and (b)(2) that are derived from property
in the enterprise zone in the fund. The unit that creates the special zone
fund shall use the fund (based on the recommendations of the urban
enterprise association) for programs in job training, job enrichment,
and basic skill development that are designed to benefit residents and
employers in the enterprise zone or other purposes specified in
subsection (b)(3), except that where reference is made in subsection
(b)(3) to allocation area it shall refer for purposes of payments from the
special zone fund only to that part of the allocation area that is also
located in the enterprise zone. The programs shall reserve at least
one-half (1/2) of their enrollment in any session for residents of the
enterprise zone.
(h) After each reassessment of real property in an area under the
county's reassessment plan under IC 6-1.1-4-4.2, the department of
local government finance county auditor shall, on forms prescribed
by the department of local government finance, adjust the base
assessed value one (1) time to neutralize any effect of the reassessment
of the real property in the area on the property tax proceeds allocated
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to the military base reuse district under this section. After each annual
adjustment under IC 6-1.1-4-4.5, the department of local government
finance county auditor shall, on forms prescribed by the
department of local government finance, adjust the base assessed
value to neutralize any effect of the annual adjustment on the property
tax proceeds allocated to the military base reuse district under this
section. However, the adjustments under this subsection may not
include the effect of property tax abatements under IC 6-1.1-12.1, and
these adjustments may not produce less property tax proceeds allocable
to the military base reuse district under subsection (b)(3) than would
otherwise have been received if the reassessment under the county's
reassessment plan or annual adjustment had not occurred. The
department of local government finance may prescribe procedures for
county and township officials to follow to assist the department in
making the adjustments. The county auditor shall, in the manner
prescribed by the department of local government finance, submit
the forms required by this subsection to the department of local
government finance no later than July 15 of each year.
(i) If the reuse authority adopts a declaratory resolution or an
amendment to a declaratory resolution that contains an allocation
provision and the reuse authority makes either of the filings required
under section 12(c) or 13(f) of this chapter after the first anniversary of
the effective date of the allocation provision, the auditor of the county
in which the military base reuse district is located shall compute the
base assessed value for the allocation area using the assessment date
immediately preceding the later of:
(1) the date on which the documents are filed with the county
auditor; or
(2) the date on which the documents are filed with the department
of local government finance.
(j) For an allocation area established after June 30, 2024,
"residential property" refers to the assessed value of property that is
allocated to the one percent (1%) homestead land and improvement
categories in the county tax and billing software system. along with the
residential assessed value as defined for purposes of calculating the
rate for the local income tax property tax relief credit designated for
residential property under IC 6-3.6-5-6(d)(3).
SECTION 254. IC 36-7-30-25, AS AMENDED BY P.L.68-2025,
SECTION 237, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2028]: Sec. 25. (a) The following definitions
apply throughout this section:
(1) "Allocation area" means that part of a military base reuse area
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to which an allocation provision of a declaratory resolution
adopted under section 10 of this chapter refers for purposes of
distribution and allocation of property taxes.
(2) "Base assessed value" means, subject to subsection (i):
(A) the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
adoption date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A) or (C), the
net assessed value of any and all parcels or classes of parcels
identified as part of the base assessed value in the declaratory
resolution or an amendment thereto, as finally determined for
any subsequent assessment date; plus
(C) to the extent that it is not included in clause (A) or (B), the
net assessed value of property that is assessed as residential
property under the rules of the department of local government
finance, within the allocation area, as finally determined for
the current assessment date.
Clause (C) applies only to allocation areas established in a
military reuse area after June 30, 1997, and to the part of an
allocation area that was established before June 30, 1997, and that
is added to an existing allocation area after June 30, 1997.
(3) "Property taxes" means taxes imposed under IC 6-1.1 on real
property.
(b) A declaratory resolution adopted under section 10 of this chapter
before the date set forth in IC 36-7-14-39(b) pertaining to declaratory
resolutions adopted under IC 36-7-14-15 may include a provision with
respect to the allocation and distribution of property taxes for the
purposes and in the manner provided in this section. A declaratory
resolution previously adopted may include an allocation provision by
the amendment of that declaratory resolution in accordance with the
procedures set forth in section 13 of this chapter. The allocation
provision may apply to all or part of the military base reuse area. The
allocation provision must require that any property taxes subsequently
levied by or for the benefit of any public body entitled to a distribution
of property taxes on taxable property in the allocation area be allocated
and distributed as follows:
(1) Except as otherwise provided in this section, the proceeds of
the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made;
or
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(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
the respective taxing units.
(2) The excess of the proceeds of the property taxes imposed for
the assessment date with respect to which the allocation and
distribution are made that are attributable to taxes imposed after
being approved by the voters in a referendum or local public
question conducted after April 30, 2010, not otherwise included
in subdivision (1) shall be allocated to and, when collected, paid
into the funds of the taxing unit for which the referendum or local
public question was conducted.
(3) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivisions (1) and (2)
shall be allocated to the military base reuse district and, when
collected, paid into an allocation fund for that allocation area that
may be used by the military base reuse district and only to do one
(1) or more of the following:
(A) Pay the principal of and interest and redemption premium
on any obligations incurred by the military base reuse district
or any other entity for the purpose of financing or refinancing
military base reuse activities in or directly serving or
benefiting that allocation area.
(B) Establish, augment, or restore the debt service reserve for
bonds payable solely or in part from allocated tax proceeds in
that allocation area or from other revenues of the reuse
authority, including lease rental revenues.
(C) Make payments on leases payable solely or in part from
allocated tax proceeds in that allocation area.
(D) Reimburse any other governmental body for expenditures
made for local public improvements (or structures) in or
directly serving or benefiting that allocation area.
(E) Pay expenses incurred by the reuse authority, any other
department of the unit, or a department of another
governmental entity for local public improvements or
structures that are in the allocation area or directly serving or
benefiting the allocation area, including expenses for the
operation and maintenance of these local public improvements
or structures if the reuse authority determines those operation
and maintenance expenses are necessary or desirable to carry
out the purposes of this chapter.
(F) Reimburse public and private entities for expenses
incurred in training employees of industrial facilities that are
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located:
(i) in the allocation area; and
(ii) on a parcel of real property that has been classified as
industrial property under the rules of the department of local
government finance.
However, the total amount of money spent for this purpose in
any year may not exceed the total amount of money in the
allocation fund that is attributable to property taxes paid by the
industrial facilities described in this clause. The
reimbursements under this clause must be made not more than
three (3) years after the date on which the investments that are
the basis for the increment financing are made.
(G) Expend money and provide financial assistance as
authorized in section 9(a)(25) of this chapter.
Except as provided in clause (E), the allocation fund may not be
used for operating expenses of the reuse authority.
(4) Except as provided in subsection (g), before July 15 of each
year the reuse authority shall do the following:
(A) Determine the amount, if any, by which property taxes
payable to the allocation fund in the following year will exceed
the amount of property taxes necessary to make, when due,
principal and interest payments on bonds described in
subdivision (3) plus the amount necessary for other purposes
described in subdivision (3).
(B) Provide a written notice to the county auditor, the fiscal
body of the unit that established the reuse authority, and the
officers who are authorized to fix budgets, tax rates, and tax
levies under IC 6-1.1-17-5 for each of the other taxing units
that is wholly or partly located within the allocation area. The
notice must:
(i) state the amount, if any, of excess property taxes that the
reuse authority has determined may be paid to the respective
taxing units in the manner prescribed in subdivision (1); or
(ii) state that the reuse authority has determined that there
are no excess property tax proceeds that may be allocated to
the respective taxing units in the manner prescribed in
subdivision (1).
The county auditor shall allocate to the respective taxing units
the amount, if any, of excess property tax proceeds determined
by the reuse authority. The reuse authority may not authorize
a payment to the respective taxing units under this subdivision
if to do so would endanger the interest of the holders of bonds
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described in subdivision (3) or lessors under section 19 of this
chapter.
(c) For the purpose of allocating taxes levied by or for any taxing
unit or units, the assessed value of taxable property in a territory in the
allocation area that is annexed by a taxing unit after the effective date
of the allocation provision of the declaratory resolution is the lesser of:
(1) the assessed value of the property for the assessment date with
respect to which the allocation and distribution is made; or
(2) the base assessed value.
(d) Property tax proceeds allocable to the military base reuse district
under subsection (b)(3) may, subject to subsection (b)(4), be
irrevocably pledged by the military base reuse district for payment as
set forth in subsection (b)(3).
(e) Notwithstanding any other law, each assessor shall, upon
petition of the reuse authority, reassess the taxable property situated
upon or in or added to the allocation area, effective on the next
assessment date after the petition.
(f) Notwithstanding any other law, the assessed value of all taxable
property in the allocation area, for purposes of tax limitation, property
tax replacement, and the making of the budget, tax rate, and tax levy
for each political subdivision in which the property is located is the
lesser of:
(1) the assessed value of the property as valued without regard to
this section; or
(2) the base assessed value.
(g) If any part of the allocation area is located in an enterprise zone
created under IC 5-28-15, the unit that designated the allocation area
shall create funds as specified in this subsection. A unit that has
obligations, bonds, or leases payable from allocated tax proceeds under
subsection (b)(3) shall establish an allocation fund for the purposes
specified in subsection (b)(3) and a special zone fund. Such a unit
shall, until the end of the enterprise zone phase out period, deposit each
year in the special zone fund any amount in the allocation fund derived
from property tax proceeds in excess of those described in subsection
(b)(1) and (b)(2) from property located in the enterprise zone that
exceeds the amount sufficient for the purposes specified in subsection
(b)(3) for the year. The amount sufficient for purposes specified in
subsection (b)(3) for the year shall be determined based on the pro rata
part of such current property tax proceeds from the part of the
enterprise zone that is within the allocation area as compared to all
such current property tax proceeds derived from the allocation area. A
unit that does not have obligations, bonds, or leases payable from
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allocated tax proceeds under subsection (b)(3) shall establish a special
zone fund and deposit all the property tax proceeds in excess of those
described in subsection (b)(1) and (b)(2) that are derived from property
in the enterprise zone in the fund. The unit that creates the special zone
fund shall use the fund (based on the recommendations of the urban
enterprise association) for programs in job training, job enrichment,
and basic skill development that are designed to benefit residents and
employers in the enterprise zone or other purposes specified in
subsection (b)(3), except that where reference is made in subsection
(b)(3) to allocation area it shall refer for purposes of payments from the
special zone fund only to that part of the allocation area that is also
located in the enterprise zone. The programs shall reserve at least
one-half (1/2) of their enrollment in any session for residents of the
enterprise zone.
(h) After each reassessment of real property in an area under the
county's reassessment plan under IC 6-1.1-4-4.2, the department of
local government finance county auditor shall, on forms prescribed
by the department of local government finance, adjust the base
assessed value one (1) time to neutralize any effect of the reassessment
of the real property in the area on the property tax proceeds allocated
to the military base reuse district under this section. After each annual
adjustment under IC 6-1.1-4-4.5, the department of local government
finance county auditor shall, on forms prescribed by the
department of local government finance, adjust the base assessed
value to neutralize any effect of the annual adjustment on the property
tax proceeds allocated to the military base reuse district under this
section. However, the adjustments under this subsection may not
include the effect of property tax abatements under IC 6-1.1-12.1, and
these adjustments may not produce less property tax proceeds allocable
to the military base reuse district under subsection (b)(3) than would
otherwise have been received if the reassessment under the county's
reassessment plan or annual adjustment had not occurred. The
department of local government finance may prescribe procedures for
county and township officials to follow to assist the department in
making the adjustments. The county auditor shall, in the manner
prescribed by the department of local government finance, submit
the forms required by this subsection to the department of local
government finance no later than July 15 of each year.
(i) If the reuse authority adopts a declaratory resolution or an
amendment to a declaratory resolution that contains an allocation
provision and the reuse authority makes either of the filings required
under section 12(c) or 13(f) of this chapter after the first anniversary of
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the effective date of the allocation provision, the auditor of the county
in which the military base reuse district is located shall compute the
base assessed value for the allocation area using the assessment date
immediately preceding the later of:
(1) the date on which the documents are filed with the county
auditor; or
(2) the date on which the documents are filed with the department
of local government finance.
(j) For an allocation area established after June 30, 2024,
"residential property" refers to the assessed value of property that is
allocated to the one percent (1%) homestead land and improvement
categories in the county tax and billing software system. along with the
residential assessed value as defined for purposes of calculating the
rate for the local income tax property tax relief credit designated for
residential property under IC 6-3.6-5-6(d)(3) (before its expiration).
SECTION 255. IC 36-7-30-25.2, AS ADDED BY P.L.123-2024,
SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 25.2. (a) Notwithstanding any other law, if the
Indiana economic development corporation subsequently designates
territory that is located in an existing allocation area under this chapter
as an innovation development district under IC 36-7-32.5, the
allocation area may not be renewed or extended under this chapter until
the term of the innovation development district expires.
(b) Notwithstanding any other law, for taxing districts that
include multiple tax increment financing districts under this
chapter, the original tax increment financing district does not
expire and stays active only for the purpose of satisfying
outstanding bonds issued by the subsequent tax increment
financing district, only if the reuse authority completes the
following requirements:
(1) Provides a written appeal to and receives the approval of
the department of local government finance.
(2) Provides written notice to the state board of accounts of
the appeal.
SECTION 256. IC 36-7-30-26.5, AS ADDED BY P.L.249-2015,
SECTION 29, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 26.5. (a) A reuse authority may enter into a
written agreement with a taxpayer who owns, or is otherwise obligated
to pay property taxes on, tangible property that is or will be located in
an allocation area established under this chapter in which the taxpayer
waives review of any assessment of the taxpayer's tangible property
that is located in the allocation area for an assessment date that occurs
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during the term of any specified bond or lease obligations that are
payable from property taxes in accordance with an allocation provision
for the allocation area and any applicable statute, ordinance, or
resolution. An agreement described in this section may precede the
establishment of the allocation area or the determination to issue bonds
or enter into leases payable from the allocated property taxes.
(b) The original owner of each nonowner occupied residential
property subject to the two percent (2%) tax cap, that is located in
the tax increment financing area and is excluded from the base
assessed value, shall upon completion of construction enter into a
written agreement with the reuse authority indicating the owner
shall be obligated to pay the property tax for the portion of
outstanding bonds in the tax increment financing district
attributable to the property until the term length of the original
outstanding bond is retired. The written agreement with the reuse
authority shall be considered a lien on the property and shall be
included as part of the residential real estate sales disclosure under
IC 32-21-5. If the property is subsequently sold as a homestead
property and becomes subject to the one percent (1%) tax cap, the
new owner shall be responsible for the lien on the property
attributable to the written agreement with the reuse authority, and
the new homestead property owner shall be obligated to fulfill the
terms of the written agreement including the payment of the
property tax liability included in the agreement. This subsection
does not apply to multi-family apartments.
SECTION 257. IC 36-7-30.5-30, AS AMENDED BY P.L.174-2022,
SECTION 75, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 30. (a) The following definitions apply
throughout this section:
(1) "Allocation area" means that part of a military base
development area to which an allocation provision of a
declaratory resolution adopted under section 16 of this chapter
refers for purposes of distribution and allocation of property taxes.
(2) "Base assessed value" means, subject to subsection (i):
(A) the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
adoption date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A) or (C), the
net assessed value of any and all parcels or classes of parcels
identified as part of the base assessed value in the declaratory
resolution or an amendment to the declaratory resolution, as
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finally determined for any subsequent assessment date; plus
(C) to the extent that it is not included in clause (A) or (B), the
net assessed value of property that is assessed as residential
property under the rules of the department of local government
finance, within the allocation area, as finally determined for
the current assessment date.
(3) "Property taxes" means taxes imposed under IC 6-1.1 on real
property.
(b) A declaratory resolution adopted under section 16 of this chapter
before the date set forth in IC 36-7-14-39(b) pertaining to declaratory
resolutions adopted under IC 36-7-14-15 may include a provision with
respect to the allocation and distribution of property taxes for the
purposes and in the manner provided in this section. A declaratory
resolution previously adopted may include an allocation provision by
the amendment of that declaratory resolution in accordance with the
procedures set forth in section 18 of this chapter. The allocation
provision may apply to all or part of the military base development
area. The allocation provision must require that any property taxes
subsequently levied by or for the benefit of any public body entitled to
a distribution of property taxes on taxable property in the allocation
area be allocated and distributed as follows:
(1) Except as otherwise provided in this section, the proceeds of
the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made;
or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
the respective taxing units.
(2) The excess of the proceeds of the property taxes imposed for
the assessment date with respect to which the allocation and
distribution is made that are attributable to taxes imposed after
being approved by the voters in a referendum or local public
question conducted after April 30, 2010, not otherwise included
in subdivision (1) shall be allocated to and, when collected, paid
into the funds of the taxing unit for which the referendum or local
public question was conducted.
(3) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivisions (1) and (2)
shall be allocated to the development authority and, when
collected, paid into an allocation fund for that allocation area that
may be used by the development authority and only to do one (1)
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or more of the following:
(A) Pay the principal of and interest and redemption premium
on any obligations incurred by the development authority or
any other entity for the purpose of financing or refinancing
military base development or reuse activities in or directly
serving or benefiting that allocation area.
(B) Establish, augment, or restore the debt service reserve for
bonds payable solely or in part from allocated tax proceeds in
that allocation area or from other revenues of the development
authority, including lease rental revenues.
(C) Make payments on leases payable solely or in part from
allocated tax proceeds in that allocation area.
(D) Reimburse any other governmental body for expenditures
made for local public improvements (or structures) in or
directly serving or benefiting that allocation area.
(E) For property taxes first due and payable before 2009, pay
all or a part of a property tax replacement credit to taxpayers
in an allocation area as determined by the development
authority. This credit equals the amount determined under the
following STEPS for each taxpayer in a taxing district (as
defined in IC 6-1.1-1-20) that contains all or part of the
allocation area:
STEP ONE: Determine that part of the sum of the amounts
under IC 6-1.1-21-2(g)(1)(A), IC 6-1.1-21-2(g)(2),
IC 6-1.1-21-2(g)(3), IC 6-1.1-21-2(g)(4), and
IC 6-1.1-21-2(g)(5) (before their repeal) that is attributable to
the taxing district.
STEP TWO: Divide:
(i) that part of each county's eligible property tax
replacement amount (as defined in IC 6-1.1-21-2 (before its
repeal)) for that year as determined under IC 6-1.1-21-4
(before its repeal) that is attributable to the taxing district;
by
(ii) the STEP ONE sum.
STEP THREE: Multiply:
(i) the STEP TWO quotient; by
(ii) the total amount of the taxpayer's taxes (as defined in
IC 6-1.1-21-2 (before its repeal)) levied in the taxing district
that have been allocated during that year to an allocation
fund under this section.
If not all the taxpayers in an allocation area receive the credit
in full, each taxpayer in the allocation area is entitled to
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receive the same proportion of the credit. A taxpayer may not
receive a credit under this section and a credit under section
32 of this chapter (before its repeal) in the same year.
(F) Pay expenses incurred by the development authority for
local public improvements or structures that were in the
allocation area or directly serving or benefiting the allocation
area.
(G) Reimburse public and private entities for expenses
incurred in training employees of industrial facilities that are
located:
(i) in the allocation area; and
(ii) on a parcel of real property that has been classified as
industrial property under the rules of the department of local
government finance.
However, the total amount of money spent for this purpose in
any year may not exceed the total amount of money in the
allocation fund that is attributable to property taxes paid by the
industrial facilities described in this clause. The
reimbursements under this clause must be made not more than
three (3) years after the date on which the investments that are
the basis for the increment financing are made.
(H) Expend money and provide financial assistance as
authorized in section 15(26) of this chapter.
The allocation fund may not be used for operating expenses of the
development authority.
(4) Except as provided in subsection (g), before July 15 of each
year the development authority shall do the following:
(A) Determine the amount, if any, by which property taxes
payable to the allocation fund in the following year will exceed
the amount of property taxes necessary to make, when due,
principal and interest payments on bonds described in
subdivision (3) plus the amount necessary for other purposes
described in subdivisions (2) and (3).
(B) Provide a written notice to the appropriate county auditors
and the fiscal bodies and other officers who are authorized to
fix budgets, tax rates, and tax levies under IC 6-1.1-17-5 for
each of the other taxing units that is wholly or partly located
within the allocation area. The notice must:
(i) state the amount, if any, of the excess property taxes that
the development authority has determined may be paid to
the respective taxing units in the manner prescribed in
subdivision (1); or
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(ii) state that the development authority has determined that
there is no excess assessed value that may be allocated to the
respective taxing units in the manner prescribed in
subdivision (1).
The county auditors shall allocate to the respective taxing units
the amount, if any, of excess assessed value determined by the
development authority. The development authority may not
authorize a payment to the respective taxing units under this
subdivision if to do so would endanger the interest of the
holders of bonds described in subdivision (3) or lessors under
section 24 of this chapter. Property taxes received by a taxing
unit under this subdivision before 2009 are eligible for the
property tax replacement credit provided under IC 6-1.1-21
(before its repeal).
(c) For the purpose of allocating taxes levied by or for any taxing
unit or units, the assessed value of taxable property in a territory in the
allocation area that is annexed by a taxing unit after the effective date
of the allocation provision of the declaratory resolution is the lesser of:
(1) the assessed value of the property for the assessment date with
respect to which the allocation and distribution is made; or
(2) the base assessed value.
(d) Property tax proceeds allocable to the military base development
district under subsection (b)(3) may, subject to subsection (b)(4), be
irrevocably pledged by the military base development district for
payment as set forth in subsection (b)(3).
(e) Notwithstanding any other law, each assessor shall, upon
petition of the development authority, reassess the taxable property
situated upon or in or added to the allocation area, effective on the next
assessment date after the petition.
(f) Notwithstanding any other law, the assessed value of all taxable
property in the allocation area, for purposes of tax limitation, property
tax replacement, and the making of the budget, tax rate, and tax levy
for each political subdivision in which the property is located is the
lesser of:
(1) the assessed value of the property as valued without regard to
this section; or
(2) the base assessed value.
(g) If any part of the allocation area is located in an enterprise zone
created under IC 5-28-15, the development authority shall create funds
as specified in this subsection. A development authority that has
obligations, bonds, or leases payable from allocated tax proceeds under
subsection (b)(3) shall establish an allocation fund for the purposes
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specified in subsection (b)(3) and a special zone fund. The
development authority shall, until the end of the enterprise zone phase
out period, deposit each year in the special zone fund any amount in the
allocation fund derived from property tax proceeds in excess of those
described in subsection (b)(1) and (b)(2) from property located in the
enterprise zone that exceeds the amount sufficient for the purposes
specified in subsection (b)(3) for the year. The amount sufficient for
purposes specified in subsection (b)(3) for the year shall be determined
based on the pro rata part of such current property tax proceeds from
the part of the enterprise zone that is within the allocation area as
compared to all such current property tax proceeds derived from the
allocation area. A development authority that does not have
obligations, bonds, or leases payable from allocated tax proceeds under
subsection (b)(3) shall establish a special zone fund and deposit all the
property tax proceeds in excess of those described in subsection (b)(1)
and (b)(2) that are derived from property in the enterprise zone in the
fund. The development authority that creates the special zone fund
shall use the fund (based on the recommendations of the urban
enterprise association) for programs in job training, job enrichment,
and basic skill development that are designed to benefit residents and
employers in the enterprise zone or for other purposes specified in
subsection (b)(3), except that where reference is made in subsection
(b)(3) to an allocation area it shall refer for purposes of payments from
the special zone fund only to that part of the allocation area that is also
located in the enterprise zone. The programs shall reserve at least
one-half (1/2) of their enrollment in any session for residents of the
enterprise zone.
(h) After each reassessment of real property in an area under a
reassessment plan prepared under IC 6-1.1-4-4.2, the department of
local government finance county auditor shall, on forms prescribed
by the department of local government finance, adjust the base
assessed value one (1) time to neutralize any effect of the reassessment
of the real property in the area on the property tax proceeds allocated
to the military base development district under this section. After each
annual adjustment under IC 6-1.1-4-4.5, the department of local
government finance county auditor shall, on forms prescribed by the
department of local government finance, adjust the base assessed
value to neutralize any effect of the annual adjustment on the property
tax proceeds allocated to the military base development district under
this section. However, the adjustments under this subsection may not
include the effect of property tax abatements under IC 6-1.1-12.1, and
these adjustments may not produce less property tax proceeds allocable
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376
to the military base development district under subsection (b)(3) than
would otherwise have been received if the reassessment under the
county's reassessment plan or annual adjustment had not occurred. The
department of local government finance may prescribe procedures for
county and township officials to follow to assist the department in
making the adjustments. The county auditor shall, in the manner
prescribed by the department of local government finance, submit
the forms required by this subsection to the department of local
government finance no later than July 15 of each year.
(i) If the development authority adopts a declaratory resolution or
an amendment to a declaratory resolution that contains an allocation
provision and the development authority makes either of the filings
required under section 17(e) or 18(f) of this chapter after the first
anniversary of the effective date of the allocation provision, the auditor
of the county in which the military base development district is located
shall compute the base assessed value for the allocation area using the
assessment date immediately preceding the later of:
(1) the date on which the documents are filed with the county
auditor; or
(2) the date on which the documents are filed with the department
of local government finance.
(j) For an allocation area established after June 30, 2024,
"residential property" refers to the assessed value of property that is
allocated to the one percent (1%) homestead land and improvement
categories in the county tax and billing software system. along with the
residential assessed value as defined for purposes of calculating the
rate for the local income tax property tax relief credit designated for
residential property under IC 6-3.6-5-6(d)(3).
SECTION 258. IC 36-7-30.5-30, AS AMENDED BY P.L.68-2025,
SECTION 238, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 30. (a) The following
definitions apply throughout this section:
(1) "Allocation area" means that part of a military base
development area to which an allocation provision of a
declaratory resolution adopted under section 16 of this chapter
refers for purposes of distribution and allocation of property taxes.
(2) "Base assessed value" means, subject to subsection (i):
(A) the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
adoption date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A) or (C), the
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net assessed value of any and all parcels or classes of parcels
identified as part of the base assessed value in the declaratory
resolution or an amendment to the declaratory resolution, as
finally determined for any subsequent assessment date; plus
(C) to the extent that it is not included in clause (A) or (B), the
net assessed value of property that is assessed as residential
property under the rules of the department of local government
finance, within the allocation area, as finally determined for
the current assessment date.
(3) "Property taxes" means taxes imposed under IC 6-1.1 on real
property.
(b) A declaratory resolution adopted under section 16 of this chapter
before the date set forth in IC 36-7-14-39(b) pertaining to declaratory
resolutions adopted under IC 36-7-14-15 may include a provision with
respect to the allocation and distribution of property taxes for the
purposes and in the manner provided in this section. A declaratory
resolution previously adopted may include an allocation provision by
the amendment of that declaratory resolution in accordance with the
procedures set forth in section 18 of this chapter. The allocation
provision may apply to all or part of the military base development
area. The allocation provision must require that any property taxes
subsequently levied by or for the benefit of any public body entitled to
a distribution of property taxes on taxable property in the allocation
area be allocated and distributed as follows:
(1) Except as otherwise provided in this section, the proceeds of
the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made;
or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
the respective taxing units.
(2) The excess of the proceeds of the property taxes imposed for
the assessment date with respect to which the allocation and
distribution is made that are attributable to taxes imposed after
being approved by the voters in a referendum or local public
question conducted after April 30, 2010, not otherwise included
in subdivision (1) shall be allocated to and, when collected, paid
into the funds of the taxing unit for which the referendum or local
public question was conducted.
(3) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivisions (1) and (2)
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shall be allocated to the development authority and, when
collected, paid into an allocation fund for that allocation area that
may be used by the development authority and only to do one (1)
or more of the following:
(A) Pay the principal of and interest and redemption premium
on any obligations incurred by the development authority or
any other entity for the purpose of financing or refinancing
military base development or reuse activities in or directly
serving or benefiting that allocation area.
(B) Establish, augment, or restore the debt service reserve for
bonds payable solely or in part from allocated tax proceeds in
that allocation area or from other revenues of the development
authority, including lease rental revenues.
(C) Make payments on leases payable solely or in part from
allocated tax proceeds in that allocation area.
(D) Reimburse any other governmental body for expenditures
made for local public improvements (or structures) in or
directly serving or benefiting that allocation area.
(E) For property taxes first due and payable before 2009, pay
all or a part of a property tax replacement credit to taxpayers
in an allocation area as determined by the development
authority. This credit equals the amount determined under the
following STEPS for each taxpayer in a taxing district (as
defined in IC 6-1.1-1-20) that contains all or part of the
allocation area:
STEP ONE: Determine that part of the sum of the amounts
under IC 6-1.1-21-2(g)(1)(A), IC 6-1.1-21-2(g)(2),
IC 6-1.1-21-2(g)(3), IC 6-1.1-21-2(g)(4), and
IC 6-1.1-21-2(g)(5) (before their repeal) that is attributable to
the taxing district.
STEP TWO: Divide:
(i) that part of each county's eligible property tax
replacement amount (as defined in IC 6-1.1-21-2 (before its
repeal)) for that year as determined under IC 6-1.1-21-4
(before its repeal) that is attributable to the taxing district;
by
(ii) the STEP ONE sum.
STEP THREE: Multiply:
(i) the STEP TWO quotient; by
(ii) the total amount of the taxpayer's taxes (as defined in
IC 6-1.1-21-2 (before its repeal)) levied in the taxing district
that have been allocated during that year to an allocation
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fund under this section.
If not all the taxpayers in an allocation area receive the credit
in full, each taxpayer in the allocation area is entitled to
receive the same proportion of the credit. A taxpayer may not
receive a credit under this section and a credit under section
32 of this chapter (before its repeal) in the same year.
(F) Pay expenses incurred by the development authority for
local public improvements or structures that were in the
allocation area or directly serving or benefiting the allocation
area.
(G) Reimburse public and private entities for expenses
incurred in training employees of industrial facilities that are
located:
(i) in the allocation area; and
(ii) on a parcel of real property that has been classified as
industrial property under the rules of the department of local
government finance.
However, the total amount of money spent for this purpose in
any year may not exceed the total amount of money in the
allocation fund that is attributable to property taxes paid by the
industrial facilities described in this clause. The
reimbursements under this clause must be made not more than
three (3) years after the date on which the investments that are
the basis for the increment financing are made.
(H) Expend money and provide financial assistance as
authorized in section 15(26) of this chapter.
The allocation fund may not be used for operating expenses of the
development authority.
(4) Except as provided in subsection (g), before July 15 of each
year the development authority shall do the following:
(A) Determine the amount, if any, by which property taxes
payable to the allocation fund in the following year will exceed
the amount of property taxes necessary to make, when due,
principal and interest payments on bonds described in
subdivision (3) plus the amount necessary for other purposes
described in subdivisions (2) and (3).
(B) Provide a written notice to the appropriate county auditors
and the fiscal bodies and other officers who are authorized to
fix budgets, tax rates, and tax levies under IC 6-1.1-17-5 for
each of the other taxing units that is wholly or partly located
within the allocation area. The notice must:
(i) state the amount, if any, of the excess property taxes that
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the development authority has determined may be paid to
the respective taxing units in the manner prescribed in
subdivision (1); or
(ii) state that the development authority has determined that
there is no excess assessed value that may be allocated to the
respective taxing units in the manner prescribed in
subdivision (1).
The county auditors shall allocate to the respective taxing units
the amount, if any, of excess assessed value determined by the
development authority. The development authority may not
authorize a payment to the respective taxing units under this
subdivision if to do so would endanger the interest of the
holders of bonds described in subdivision (3) or lessors under
section 24 of this chapter. Property taxes received by a taxing
unit under this subdivision before 2009 are eligible for the
property tax replacement credit provided under IC 6-1.1-21
(before its repeal).
(c) For the purpose of allocating taxes levied by or for any taxing
unit or units, the assessed value of taxable property in a territory in the
allocation area that is annexed by a taxing unit after the effective date
of the allocation provision of the declaratory resolution is the lesser of:
(1) the assessed value of the property for the assessment date with
respect to which the allocation and distribution is made; or
(2) the base assessed value.
(d) Property tax proceeds allocable to the military base development
district under subsection (b)(3) may, subject to subsection (b)(4), be
irrevocably pledged by the military base development district for
payment as set forth in subsection (b)(3).
(e) Notwithstanding any other law, each assessor shall, upon
petition of the development authority, reassess the taxable property
situated upon or in or added to the allocation area, effective on the next
assessment date after the petition.
(f) Notwithstanding any other law, the assessed value of all taxable
property in the allocation area, for purposes of tax limitation, property
tax replacement, and the making of the budget, tax rate, and tax levy
for each political subdivision in which the property is located is the
lesser of:
(1) the assessed value of the property as valued without regard to
this section; or
(2) the base assessed value.
(g) If any part of the allocation area is located in an enterprise zone
created under IC 5-28-15, the development authority shall create funds
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as specified in this subsection. A development authority that has
obligations, bonds, or leases payable from allocated tax proceeds under
subsection (b)(3) shall establish an allocation fund for the purposes
specified in subsection (b)(3) and a special zone fund. The
development authority shall, until the end of the enterprise zone phase
out period, deposit each year in the special zone fund any amount in the
allocation fund derived from property tax proceeds in excess of those
described in subsection (b)(1) and (b)(2) from property located in the
enterprise zone that exceeds the amount sufficient for the purposes
specified in subsection (b)(3) for the year. The amount sufficient for
purposes specified in subsection (b)(3) for the year shall be determined
based on the pro rata part of such current property tax proceeds from
the part of the enterprise zone that is within the allocation area as
compared to all such current property tax proceeds derived from the
allocation area. A development authority that does not have
obligations, bonds, or leases payable from allocated tax proceeds under
subsection (b)(3) shall establish a special zone fund and deposit all the
property tax proceeds in excess of those described in subsection (b)(1)
and (b)(2) that are derived from property in the enterprise zone in the
fund. The development authority that creates the special zone fund
shall use the fund (based on the recommendations of the urban
enterprise association) for programs in job training, job enrichment,
and basic skill development that are designed to benefit residents and
employers in the enterprise zone or for other purposes specified in
subsection (b)(3), except that where reference is made in subsection
(b)(3) to an allocation area it shall refer for purposes of payments from
the special zone fund only to that part of the allocation area that is also
located in the enterprise zone. The programs shall reserve at least
one-half (1/2) of their enrollment in any session for residents of the
enterprise zone.
(h) After each reassessment of real property in an area under a
reassessment plan prepared under IC 6-1.1-4-4.2, the department of
local government finance county auditor shall, on forms prescribed
by the department of local government finance, adjust the base
assessed value one (1) time to neutralize any effect of the reassessment
of the real property in the area on the property tax proceeds allocated
to the military base development district under this section. After each
annual adjustment under IC 6-1.1-4-4.5, the department of local
government finance county auditor shall, on forms prescribed by the
department of local government finance, adjust the base assessed
value to neutralize any effect of the annual adjustment on the property
tax proceeds allocated to the military base development district under
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this section. However, the adjustments under this subsection may not
include the effect of property tax abatements under IC 6-1.1-12.1, and
these adjustments may not produce less property tax proceeds allocable
to the military base development district under subsection (b)(3) than
would otherwise have been received if the reassessment under the
county's reassessment plan or annual adjustment had not occurred. The
department of local government finance may prescribe procedures for
county and township officials to follow to assist the department in
making the adjustments. The county auditor shall, in the manner
prescribed by the department of local government finance, submit
the forms required by this subsection to the department of local
government finance no later than July 15 of each year.
(i) If the development authority adopts a declaratory resolution or
an amendment to a declaratory resolution that contains an allocation
provision and the development authority makes either of the filings
required under section 17(e) or 18(f) of this chapter after the first
anniversary of the effective date of the allocation provision, the auditor
of the county in which the military base development district is located
shall compute the base assessed value for the allocation area using the
assessment date immediately preceding the later of:
(1) the date on which the documents are filed with the county
auditor; or
(2) the date on which the documents are filed with the department
of local government finance.
(j) For an allocation area established after June 30, 2024,
"residential property" refers to the assessed value of property that is
allocated to the one percent (1%) homestead land and improvement
categories in the county tax and billing software system. along with the
residential assessed value as defined for purposes of calculating the
rate for the local income tax property tax relief credit designated for
residential property under IC 6-3.6-5-6(d)(3) (before its expiration).
SECTION 259. IC 36-7-30.5-30.3, AS ADDED BY P.L.123-2024,
SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 30.3. (a) Notwithstanding any other law, if the
Indiana economic development corporation subsequently designates
territory that is located in an existing allocation area under this chapter
as an innovation development district under IC 36-7-32.5, the
allocation area may not be renewed or extended under this chapter until
the term of the innovation development district expires.
(b) Notwithstanding any other law, for taxing districts that
include multiple tax increment financing districts under this
chapter, the original tax increment financing district does not
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expire and stays active only for the purpose of satisfying
outstanding bonds issued by the subsequent tax increment
financing district, only if the development authority completes the
following requirements:
(1) Provides a written appeal to and receives the approval of
the department of local government finance.
(2) Provides written notice to the state board of accounts of
the appeal.
SECTION 260. IC 36-7-30.5-31.5, AS ADDED BY P.L.249-2015,
SECTION 30, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 31.5. (a) The development authority may enter
into a written agreement with a taxpayer who owns, or is otherwise
obligated to pay property taxes on, tangible property that is or will be
located in an allocation area established under this chapter in which the
taxpayer waives review of any assessment of the taxpayer's tangible
property that is located in the allocation area for an assessment date
that occurs during the term of any specified bond or lease obligations
that are payable from property taxes in accordance with an allocation
provision for the allocation area and any applicable statute, ordinance,
or resolution. An agreement described in this section may precede the
establishment of the allocation area or the determination to issue bonds
or enter into leases payable from the allocated property taxes.
(b) The original owner of each nonowner occupied residential
property subject to the two percent (2%) tax cap, that is located in
the tax increment financing area and is excluded from the base
assessed value, shall upon completion of construction enter into a
written agreement with the development authority indicating the
owner shall be obligated to pay the property tax for the portion of
outstanding bonds in the tax increment financing district
attributable to the property until the term length of the original
outstanding bond is retired. The written agreement with the
development authority shall be considered a lien on the property
and shall be included as part of the residential real estate sales
disclosure under IC 32-21-5. If the property is subsequently sold as
a homestead property and becomes subject to the one percent (1%)
tax cap, the new owner shall be responsible for the lien on the
property attributable to the written agreement with the
development authority, and the new homestead property owner
shall be obligated to fulfill the terms of the written agreement
including the payment of the property tax liability included in the
agreement. This subsection does not apply to multi-family
apartments.
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SECTION 261. IC 36-7-32-19, AS AMENDED BY P.L.86-2018,
SECTION 349, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 19. (a) The state board of
accounts and department of local government finance shall make the
rules and prescribe the forms and procedures that the state board of
accounts and department of local government finance consider
appropriate for the implementation of an allocation area under this
chapter.
(b) After each reassessment of real property in an area under a
reassessment plan prepared under IC 6-1.1-4-4.2, the department of
local government finance county auditor shall, on forms prescribed
by the department of local government finance, adjust the base
assessed value one (1) time to neutralize any effect of the reassessment
of the real property in the area on the property tax proceeds allocated
to the certified technology park fund under section 17 of this chapter.
After each annual adjustment under IC 6-1.1-4-4.5, the department of
local government finance county auditor shall, on forms prescribed
by the department of local government finance, adjust the base
assessed value to neutralize any effect of the annual adjustment on the
property tax proceeds allocated to the certified technology park fund
under section 17 of this chapter.
(c) The county auditor shall, in the manner prescribed by the
department of local government finance, submit the forms
required by this section to the department of local government
finance no later than July 15 of each year.
SECTION 262. IC 36-7-32.5-16, AS ADDED BY P.L.135-2022,
SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 16. (a) The state board of accounts, the
department of state revenue, and the department of local government
finance may adopt rules under IC 4-22-2 and prescribe the forms and
procedures that the state board of accounts, the department of state
revenue, and the department of local government finance consider
appropriate for the implementation of an innovation development
district under this chapter. However, before adopting rules under this
section, the state board of accounts, the department of state revenue,
and the department of local government finance shall submit a report
to the budget committee that:
(1) describes the rules proposed by the state board of accounts,
the department of state revenue, and the department of local
government finance; and
(2) recommends statutory changes necessary to implement the
provisions of this chapter.
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(b) After each reassessment of real property in an area under a
county's reassessment plan prepared under IC 6-1.1-4-4.2, the
department of local government finance county auditor shall, on
forms prescribed by the department of local government finance,
adjust the base assessed value one (1) time to neutralize any effect of
the reassessment of the real property in the area on the property tax
proceeds allocated to the local innovation development district fund
established by section 19 of this chapter.
(c) After each annual adjustment under IC 6-1.1-4-4.5, the
department of local government finance county auditor shall, on
forms prescribed by the department of local government finance,
adjust the base assessed value to neutralize any effect of the annual
adjustment on the property tax proceeds allocated to the local
innovation development district fund established by section 19 of this
chapter.
(d) The county auditor shall, in the manner prescribed by the
department of local government finance, submit the forms
required by this section to the department of local government
finance no later than July 15 of each year.
SECTION 263. IC 36-7.5-4.5-18, AS AMENDED BY
P.L.236-2023, SECTION 194, IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 18. If a district is
established, the following apply to the administration and use of
incremental property tax revenue by the development authority, or a
redevelopment commission in the case of a district located in a cash
participant county, in the district:
(1) The department of local government finance county auditor
shall, on forms prescribed by the department of local
government finance, adjust the base assessed value to neutralize
any effect of a reassessment and the annual adjustment of the real
property in the district in the same manner as provided in
IC 36-7-14-39(h). The county auditor shall, in the manner
prescribed by the department of local government finance,
submit the forms required by this subdivision to the
department of local government finance no later than July 15
of each year.
(2) Proceeds of the property taxes approved by the voters in a
referendum or local public question shall be allocated to and,
when collected, paid into the funds of the taxing unit for which
the referendum or local public question was conducted in the
same manner as provided in IC 36-7-14-39(b)(3).
(3) Incremental property tax revenue may be used only for one (1)
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or more of the following purposes for a district:
(A) To finance the improvement, construction, reconstruction,
renovation, and acquisition of real and personal property
improvements within a district.
(B) To pay the principal of and interest on any obligations that
are incurred for the purpose of financing or refinancing
development in the district, including local public
improvements that are physically located in or physically
connected to the district.
(C) To establish, augment, or restore the debt service reserve
for bonds payable solely or in part from incremental property
tax revenue from the district.
(D) To pay premiums on the redemption before maturity of
bonds payable solely or in part from incremental property tax
revenue from the district.
(E) To make payments on leases payable from incremental
property tax revenue from the district.
(F) To reimburse a municipality in which a district is located
for expenditures made by the municipality for local public
improvements that are physically located in or physically
connected to the district.
(G) To reimburse a municipality for rentals paid by the
municipality for a building or parking facility that is physically
located in or physically connected to the district under any
lease entered into under IC 36-1-10.
(H) To pay expenses incurred by the development authority for
local public improvements that are in the district or serving the
district.
SECTION 264. IC 36-7.5-6-4, AS ADDED BY P.L.195-2023,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 4. (a) The blighted property demolition fund
is established to provide grants to the city of Gary to demolish qualified
properties.
(b) The fund consists of:
(1) appropriations from the general assembly;
(2) available federal funds;
(3) transfers of money under IC 4-33-13-2.5(b)(1);
IC 4-33-13-5(a)(3)(B);
(4) deposits required under section 5(a) and 5(b) of this chapter;
and
(5) gifts, grants, donations, or other contributions from any other
public or private source.
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(c) The development authority shall administer the fund.
(d) The treasurer of state shall invest the money in the fund not
currently needed to meet the obligations of the fund in the same
manner as other public funds may be invested.
(e) The money remaining in the fund at the end of a state fiscal year
does not revert to the state general fund.
(f) Money in the fund is continuously appropriated for the purposes
of this chapter.
SECTION 265. IC 36-7.5-7-5, AS ADDED BY P.L.195-2023,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 5. (a) The Lake County economic
development and convention fund is established. The fund shall be
administered by the development authority.
(b) The convention fund consists of:
(1) deposits under IC 4-33-13-2.5(b)(2); IC 4-33-13-5(a)(2)(C)
and IC 4-33-13-5(a)(3)(A);
(2) deposits under subsection (c);
(3) appropriations to the fund;
(4) gifts, grants, loans, bond proceeds, and other money received
for deposit in the fund; and
(5) other deposits or transfers of funds from local units located in
Lake County.
(c) If a proposal is approved as provided under this chapter, each
state fiscal year, beginning with the first state fiscal year that begins
after the proposal is approved, the approved entity shall deposit up to
five million dollars ($5,000,000) in the convention fund. The
obligation of the city of Gary, as the approved entity, for each state
fiscal year under this subsection is satisfied by the distributions
made by the state comptroller on behalf of the city of Gary under
IC 4-33-13-5(a)(2)(C). However, if the total amount distributed
under IC 4-33-13-5(a)(2)(C) on behalf of the city of Gary with
respect to a particular state fiscal year is less than the amount
required by this subsection, the fiscal officer of the city of Gary
shall transfer the amount of the shortfall to the convention fund
from any source of revenue available to the city of Gary other than
property taxes. The state comptroller shall certify the amount of
any shortfall to the fiscal officer of the city of Gary after making
the distribution required by IC 4-33-13-5(a)(2)(C) on behalf of the
city of Gary with respect to a particular state fiscal year.
(d) The development authority shall administer money, including
determining amounts to be used and the specific purposes, from the
convention fund.
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(e) Except as provided in section 8(d) of this chapter, the money
remaining in the convention fund at the end of a state fiscal year does
not revert to the state general fund.
(f) Money in the convention fund is continuously appropriated for
the purposes of this chapter.
(g) Subject to budget committee review, but except as provided in
subsection (i), the development authority may receive reimbursement
for expenses incurred and a reasonable and customary amount for
providing administrative services from money in the convention fund.
(h) The development authority shall quarterly report to the budget
committee on all uses of money in the convention fund and the status
of the convention and event center project.
(i) The development authority shall conduct an updated feasibility
study related to a potential convention and event center located in Lake
County. The development authority shall be reimbursed for the costs
of obtaining the updated feasibility study from money in the fund.
Budget committee review is not required for reimbursement under this
subsection.
SECTION 266. IC 36-7.5-7-9, AS ADDED BY P.L.195-2023,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 9. (a) If a proposal is approved under section
8 of this chapter, following the approval of the proposal, and when the
construction of the convention and event center is substantially
completed so that the convention and event center can be used for
its intended purpose, the Lake County convention center authority is
established for the purpose of holding an equal share of ownership of
the Lake County convention and event center with the entity whose
proposal is approved and for providing general oversight of the upkeep,
improvements, and management team as outlined in the accepted
proposal. Subject to subsection (e), the convention center authority
consists of seven (7) members, appointed as follows:
(1) Three (3) members appointed by the entity whose proposal is
approved under section 8 of this chapter.
(2) Three (3) members appointed by the Lake County board of
commissioners.
(3) One (1) member appointed by the governor.
Individuals appointed to the convention center authority must be
Indiana residents and have professional experience in commercial
facility management. An appointing authority may not appoint an
attorney in active standing as a member of the authority.
(b) The term of office for a member of the board is two (2) years.
The term begins July 1 of the year in which the member is appointed
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and ends on June 30 of the second year following the member's
appointment. A member may be reappointed after the member's term
has expired.
(c) A vacancy in membership must be filled in the same manner as
the original appointment. Appointments made to fill a vacancy that
occurs before the expiration of a term are for the remainder of the
unexpired term.
(d) The member appointed under subsection (a)(3) shall serve as the
chairperson of the convention center authority. The convention center
authority shall meet at the call of the chairperson.
(e) An individual may not be appointed to the convention center
authority if the individual is a party to a contract or agreement with the
entity whose proposal is approved, is employed by the entity whose
proposal is approved, or otherwise has a direct or indirect financial
interest in the entity whose proposal is approved under this chapter.
SECTION 267. IC 36-7.5-7-10, AS ADDED BY P.L.195-2023,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 10. (a) A local county fund known as the Lake
County convention and event center reserve fund is established to pay
for:
(1) additions;
(2) refurbishment; and
(3) budget shortfalls or other unusual costs;
of a convention and event center that is constructed using money from
the convention fund under this chapter.
(b) The reserve fund consists of:
(1) transfers under IC 6-9-2-1.5(c); and
(2) gifts, grants, donations, or other contributions from any other
public or private source.
(c) The Lake County commissioners shall administer the reserve
fund until the convention center authority is established.
Thereafter, the convention center authority shall administer the
reserve fund.
SECTION 268. IC 36-7.5-7-11.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 11.5. (a) Notwithstanding any
other law:
(1) the northwest Indiana regional development authority is
authorized to issue and sell bonds to the Indiana finance
authority under chapter 4 of this article for the purpose of
financing the Lake County convention and event center, to
pay such bonds from lease rental payments received from the
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City of Gary, and to construct the Lake County convention
and event center for lease to the City of Gary and the Lake
County convention center authority;
(2) the City of Gary is authorized to lease the Lake County
convention and event center from the northwest Indiana
regional development authority for construction of the Lake
County convention and event center and pledge amounts for
payment of lease rentals;
(3) the Indiana finance authority is authorized to purchase
bonds of the northwest Indiana regional development
authority for the Lake County convention and event center;
and
(4) the northwest Indiana regional development authority, the
City of Gary, and the Indiana finance authority are
authorized to enter into a governance agreement for the Lake
County convention and event center.
(b) No action may be brought challenging any:
(1) lease;
(2) resolution;
(3) ordinance;
(4) contract;
(5) issuance of bonds;
(6) issuance of notes;
(7) issuance of obligations;
(8) decision; or
(9) other action taken under this article;
more than fifteen (15) days after the adoption of a resolution or
ordinance approving an item described under this subsection.
(c) Upon the expiration of the fifteen (15) day period described
in subsection (b), any item described in subsection (b) shall be
conclusively presumed to be fully authorized under the laws of the
state and any person shall be estopped from challenging the
authorization, validity, execution of, delivery of, or issuance of any
of the items described in subsection (b).
SECTION 269. IC 36-7.5-7-11.7 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 11.7. (a) All bonds, notes,
evidences of indebtedness, leases, or other written obligations
issued, incurred, or executed under this article for the Lake County
convention and event center, and subject to budget committee
review, by or in the name of the:
(1) Indiana finance authority;
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(2) the northwest Indiana regional development authority; or
(3) the City of Gary;
are hereby legalized and declared valid after budget committee
review.
(b) Any pledge, dedication, or designation of revenues,
conveyance, or mortgage securing the bonds, notes, evidence of
indebtedness, leases, or other written legal obligations issued,
incurred or executed under this article for the Lake County
convention and event center, and subject to budget committee
review, by or in the name of the:
(1) Indiana finance authority;
(2) the northwest Indiana regional development authority; or
(3) the City of Gary;
are hereby legalized and declared valid after budget committee
review.
(c) Any resolutions, proceedings, or actions taken or adopted
under this article or IC 5-1.2 under which the bonds, notes,
evidence of indebtedness, leases, or other written legal obligations
were or will be issued or incurred or under which the pledge,
dedication, or designation of revenues, conveyance, or mortgage
was or will be granted for the financing, construction, or operation
of the Lake County convention and event center, and subject to
budget committee review, by or in the name of the:
(1) Indiana finance authority;
(2) the northwest Indiana regional development authority; or
(3) the City of Gary;
are hereby legalized and declared valid after budget committee
review.
SECTION 270. IC 36-7.5-8-3, AS ADDED BY P.L.195-2023,
SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 3. (a) The Gary Metro Center station
revitalization fund is established to provide funding for the Gary Metro
Center station revitalization project.
(b) The fund consists of:
(1) appropriations from the general assembly;
(2) available federal funds;
(3) transfers of money under IC 4-33-13-2.5(b)(3);
IC 4-33-13-5(a)(3)(C);
(4) deposits required under section 4 of this chapter; and
(5) gifts, grants, donations, or other contributions from any other
public or private source.
(c) The development authority shall administer the fund.
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(d) The money remaining in the fund at the end of a state fiscal year
does not revert to the state general fund.
(e) Money in the fund is continuously appropriated for the purposes
of this chapter.
(f) Subject to budget committee review, the development authority
may receive reimbursement for expenses incurred and a reasonable and
customary amount for providing administrative services from money
in the fund.
SECTION 271. IC 36-8-11-12, AS AMENDED BY P.L.236-2023,
SECTION 197, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 12. (a) This section does not apply
to the appointment of a governing board under section 12.5 of this
chapter.
(b) Within thirty (30) days after the ordinance or resolution
establishing the district becomes final, the county legislative body shall
appoint a board of fire trustees. The trustees must be qualified by
knowledge and experience in matters pertaining to fire protection and
related activities in the district. A person who:
(1) is a party to a contract with the district; or
(2) is a member, an employee, a director, or a shareholder of any
corporation or association that has a contract with the district; or
(3) does not reside in the district;
may not be appointed or serve as a trustee. The legislative body shall
appoint one (1) trustee from each township or part of a township
contained in the district and one (1) trustee from each municipality
contained in the district. If the number of trustees selected by this
method is an even number, the legislative body shall appoint one (1)
additional trustee so that the number of trustees is always an odd
number. If the requirements of this section do not provide at least three
(3) trustees, the legislative body shall make additional appointments so
that there is a minimum of three (3) trustees.
(c) The original trustees shall be appointed as follows:
(1) One (1) for a term of one (1) year.
(2) One (1) for a term of two (2) years.
(3) One (1) for a term of three (3) years.
(4) All others for a term of four (4) years.
The terms expire on the first Monday of January of the year their
appointments expire. As the terms expire, each new appointment is for
a term of four (4) years.
(d) If a vacancy occurs on the board, the county legislative body
shall appoint a trustee with the qualifications specified in subsection
(b) for the unexpired term.
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(e) On December 31, 2026, the term of any person serving as a
trustee who does not reside in the district for which the person
serves as a trustee is terminated. The county legislative body shall
make new appointments as soon as possible after December 31,
2026, to serve for the remainder of the unexpired term.
SECTION 272. IC 36-8-11-12.1 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 12.1 (a) This section applies
to a county having a population of more than three hundred fifty
thousand (350,000) and less than four hundred thousand (400,000)
(b) This section is an alternative to section 12 of this chapter if
the appointment of the governing board under section 12 of this
chapter would exceed nine (9) members. The county legislative
body may instead opt to appoint the governing board under this
section.
(c) The board of trustees appointed under this section is
composed of nine (9) members appointed as follows:
(1) Six (6) trustees appointed by the county commissioners,
with not more than two (2) appointments coming from each
original fire protection district or fire protection territory.
(2) Three (3) trustees appointed by the county council with not
more than one (1) appointment coming from each original fire
protection district or fire protection territory.
The county commissioners shall select their initial six (6)
appointments before July 1, 2026. The county council shall select
their initial three (3) appointments after July 1, 2026, but before
August 1, 2026. All future appointments shall be made by the
county commissioners before the county council.
(d) The initial term of a trustee appointed under subsection (c)
is as follows:
(1) Two (2) county commissioner appointments and one (1)
county council appointment for a term of one (1) year.
(2) Two (2) county commissioner and one (1) county council
appointment for a term of two (2) years.
(3) Two (2) county commissioner appointments and one (1)
county council appointment for a term of three (3) years.
(e) The terms expire on the first Monday of January of the year
their appointments expire. As the terms expire, each new
appointment is for a term of four (4) years.
(f) If a vacancy occurs on the board, the county legislative body
shall appoint a trustee with the qualifications specified in section
12(b) of this chapter for the unexpired term. Members appointed
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must comply with section 12 of this chapter.
SECTION 273. IC 36-8-11-16 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2026 (RETROACTIVE)]:
Sec. 16. (a) All the real property within a fire protection district
constitutes a taxing district for the purpose of levying taxes to pay for
the construction, operation, and maintenance of district programs and
facilities. A tax levied must be levied at a uniform rate upon all taxable
property within the district. A fire protection district is a municipal
corporation within the meaning of the Constitution of Indiana and all
general statutes.
(b) This subsection applies to a fire protection district
established by an ordinance or a resolution adopted under this
chapter after December 31, 2025. The district may not impose a tax
rate on the taxable property within the district that exceeds forty
cents ($0.40) per one hundred dollars ($100) of assessed valuation.
SECTION 274. IC 36-8-12-16, AS AMENDED BY P.L.186-2025,
SECTION 258, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2027]: Sec. 16. (a) A volunteer fire department
that provides service within a jurisdiction served by the department
may establish a schedule of charges for the services that the department
provides not to exceed the state fire marshal's recommended schedule
for services. The volunteer fire department or its agent may collect a
service charge according to this schedule from the owner of property
that receives service if the following conditions are met:
(1) At the following times, the department gives notice under
IC 5-3-1-4(d) IC 5-3-1-1.5 in each political subdivision served by
the department of the amount of the service charge for each
service that the department provides:
(A) Before the schedule of service charges is initiated.
(B) When there is a change in the amount of a service charge.
(2) The property owner has not sent written notice to the
department to refuse service by the department to the owner's
property.
(3) The bill for payment of the service charge:
(A) is submitted to the property owner in writing within thirty
(30) days after the services are provided;
(B) includes a copy of a fire incident report in the form
prescribed by the state fire marshal, if the service was
provided for an event that requires a fire incident report;
(C) must contain verification that the bill has been approved
by the chief of the volunteer fire department; and
(D) must contain language indicating that correspondence
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from the property owner and any question from the property
owner regarding the bill should be directed to the department.
(4) Payment is remitted directly to the governmental unit
providing the service.
(b) A volunteer fire department shall use the revenue collected from
the fire service charges under this section:
(1) for the purchase of equipment, buildings, and property for
firefighting, fire protection, or other emergency services;
(2) for deposit in the township firefighting and emergency
services fund established under IC 36-8-13-4(a)(1) or the
township firefighting fund established under
IC 36-8-13-4(a)(2)(A); or
(3) to pay principal and interest on a loan made by the department
of homeland security established by IC 10-19-2-1 or a division of
the department for the purchase of new or used firefighting and
other emergency equipment or apparatus.
(c) Any administrative fees charged by a fire department's agent
must be paid only from fees that are collected and allowed by Indiana
law and the fire marshal's schedule of fees.
(d) An agent who processes fees on behalf of a fire department shall
send all bills, notices, and other related materials to both the fire
department and the person being billed for services.
(e) All fees allowed by Indiana law and the fire marshal's fee
schedule must be itemized separately from any other charges.
(f) If at least twenty-five percent (25%) of the money received by a
volunteer fire department for providing fire protection or emergency
services is received under one (1) or more contracts with one (1) or
more political subdivisions (as defined in IC 34-6-2.1-155), the
legislative body of a contracting political subdivision must approve the
schedule of service charges established under subsection (a) before the
schedule of service charges is initiated in that political subdivision.
(g) A volunteer fire department that:
(1) has contracted with a political subdivision to provide fire
protection or emergency services; and
(2) charges for services under this section;
must submit a report to the legislative body of the political subdivision
before April 1 of each year indicating the amount of service charges
collected during the previous calendar year and how those funds have
been expended.
(h) The state fire marshal shall annually prepare and publish a
recommended schedule of service charges for fire protection services.
(i) The volunteer fire department or its agent may maintain a civil
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action to recover an unpaid service charge under this section and may,
if it prevails, recover all costs of the action, including reasonable
attorney's fees.
SECTION 275. IC 36-8-12-17, AS AMENDED BY P.L.186-2025,
SECTION 259, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2027]: Sec. 17. (a) If a political subdivision has
not imposed its own false alarm fee or service charge, a volunteer fire
department that provides service within the jurisdiction may establish
a service charge for responding to false alarms. The volunteer fire
department may collect the false alarm service charge from the owner
of the property if the volunteer fire department dispatches firefighting
apparatus or personnel to a building or premises in the township in
response to:
(1) an alarm caused by improper installation or improper
maintenance; or
(2) a drill or test, if the fire department is not previously notified
that the alarm is a drill or test.
However, if the owner of property that constitutes the owner's residence
establishes that the alarm is under a maintenance contract with an
alarm company and that the alarm company has been notified of the
improper installation or maintenance of the alarm, the alarm company
is liable for the payment of the fee or service charge.
(b) Before establishing a false alarm service charge, the volunteer
fire department must provide notice under IC 5-3-1-4(d) IC 5-3-1-1.5
in each political subdivision served by the department of the amount of
the false alarm service charge. The notice required by this subsection
must be given:
(1) before the false alarm service charge is initiated; and
(2) before a change in the amount of the false alarm service
charge.
(c) A volunteer fire department may not collect a false alarm service
charge from a property owner or alarm company unless the
department's bill for payment of the service charge:
(1) is submitted to the property owner in writing within thirty (30)
days after the false alarm; and
(2) includes a copy of a fire incident report in the form prescribed
by the state fire marshal.
(d) A volunteer fire department shall use the money collected from
the false alarm service charge imposed under this section:
(1) for the purchase of equipment, buildings, and property for fire
fighting, fire protection, or other emergency services;
(2) for deposit in the township firefighting and emergency
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services fund established under IC 36-8-13-4(a)(1) or the
township firefighting fund established under
IC 36-8-13-4(a)(2)(A); or
(3) to pay principal and interest on a loan made by the department
of homeland security established by IC 10-19-2-1 or a division of
the department for the purchase of new or used firefighting and
other emergency equipment or apparatus.
(e) If at least twenty-five percent (25%) of the money received by a
volunteer fire department for providing fire protection or emergency
services is received under one (1) or more contracts with one (1) or
more political subdivisions (as defined in IC 34-6-2.1-155), the
legislative body of a contracting political subdivision must approve the
false alarm service charge established under subsection (a) before the
service charge is initiated in that political subdivision.
(f) A volunteer fire department that:
(1) has contracted with a political subdivision to provide fire
protection or emergency services; and
(2) imposes a false alarm service charge under this section;
must submit a report to the legislative body of the political subdivision
before April 1 of each year indicating the amount of false alarm
charges collected during the previous calendar year and how those
funds have been expended.
(g) The volunteer fire department may maintain a civil action to
recover unpaid false alarm service charges imposed under this section
and may, if it prevails, recover all costs of the action, including
reasonable attorney's fees.
SECTION 276. IC 36-8-19-7, AS AMENDED BY P.L.68-2025,
SECTION 240, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2026 (RETROACTIVE)]: Sec. 7. (a)
Subject to subsection (d), subsections (d), (e), and (f), a tax levied
under this chapter may be levied at:
(1) a uniform rate upon all taxable property within the territory;
or
(2) different rates for the participating units included within the
territory, so long as a tax rate applies uniformly to all of a unit's
or fire protection district's taxable property within the territory.
(b) If a uniform tax rate is levied upon all taxable property within a
territory upon the formation of the territory, different tax rates may be
levied for the participating units included within the territory in
subsequent years.
(c) This subsection applies to a territory established by an ordinance
or a resolution adopted under this chapter after December 31, 2022. A
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total tax rate levied under this chapter upon taxable property within a
territory upon the formation of the territory may be implemented over
a number of years, not exceeding five (5), and in a manner subject to
review and approval by the department of local government finance.
(d) This subsection applies to a territory established by an ordinance
or a resolution adopted under this chapter after December 31, 2024.
The provider unit and each participating unit in a territory may not
impose a tax rate:
(1) in the case of property taxes first due and payable in 2027,
on the unit's or fire protection district's taxable property within the
territory for the fire protection territory fund established
under section 8 of this chapter that exceeds forty cents ($0.40)
per one hundred dollars ($100) of assessed valuation; and
(2) in the case of property taxes first due and payable in 2028
and each calendar year thereafter, on the unit's or fire
protection district's taxable property within the territory for
the fire protection territory fund established under section 8
of this chapter and the equipment replacement fund
established under section 8.5 of this chapter that in aggregate
exceeds forty cents ($0.40) per one hundred dollars ($100) of
assessed valuation.
(e) This subsection applies to an existing fire protection territory
that changes the boundaries of the fire protection territory by an
ordinance or a resolution adopted under this chapter after
December 31, 2025. The provider unit and each participating unit
in a fire protection territory may not impose a tax rate for the fire
protection territory fund established under section 8 of this chapter
on taxable property located within the fire protection territory that
exceeds forty cents ($0.40) per one hundred dollars ($100) of
assessed valuation.
(f) This subsection applies only to an existing fire protection
territory that changes the boundaries of the fire protection
territory by an ordinance or a resolution adopted under this
chapter after December 31, 2024, and before January 1, 2026. The
provider unit and each participating unit in a fire protection
territory may not impose a tax rate for the fire protection territory
fund established under section 8 of this chapter on taxable
property located within the fire protection territory that exceeds
the certified tax rate imposed for the fire protection territory fund
established under section 8 for property taxes first due and payable
in 2026.
SECTION 277. IC 36-8-19-7.5, AS AMENDED BY P.L.68-2025,
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SECTION 241, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2025 (RETROACTIVE)]: Sec. 7.5. (a)
This section applies to:
(1) local income tax distributions; and
(2) excise tax distributions;
made after December 31, 2009.
(b) Except as provided in subsection (c), for purposes of allocating
local income tax distributions that are based on a taxing unit's
allocation amount before January 1, 2028, 2029, or that an adopting
body allocates under IC 6-3.6-6 to economic development before
January 1, 2028, 2029, or excise tax distributions that are distributed
based on the amount of a taxing unit's property tax levies, each
participating unit in a territory is considered to have imposed a part of
the property tax levy imposed for the territory. The part of the property
tax levy imposed for the territory for a particular year that shall be
attributed to a participating unit is equal to the amount determined in
the following STEPS:
STEP ONE: Determine the total amount of all property taxes
imposed by the participating unit in the year before the year in
which a property tax levy was first imposed for the territory.
STEP TWO: Determine the sum of the STEP ONE amounts for
all participating units.
STEP THREE: Divide the STEP ONE result by the STEP TWO
result.
STEP FOUR: Multiply the STEP THREE result by the property
tax levy imposed for the territory for the particular year.
(c) This subsection applies to a determination under subsection (b)
made in calendar years 2018, 2019, and 2020. The department of local
government finance may, for distributions made in calendar year 2022,
adjust the allocation amount determined under subsection (b) to correct
for any clerical or mathematical errors made in any determination for
calendar year 2018, 2019, or 2020, as applicable, including the
allocation amount for any taxing unit whose distribution was affected
by the clerical or mathematical error in those years. The department of
local government finance may apply the adjustment to the allocation
amount for a taxing unit over a period not to exceed ten (10) years in
order to offset the effect of the adjustment on the distribution.
(d) This subsection applies to a territory established by an ordinance
or a resolution adopted under this chapter after December 31, 2024.
Before additional revenue from a local income tax rate may be
allocated to the provider unit of a new territory due to an increased
property tax levy resulting from the establishment of the territory, the
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county fiscal body must adopt an ordinance or resolution approving the
allocation.
SECTION 278. IC 36-8-19-8.5, AS AMENDED BY P.L.255-2017,
SECTION 47, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 8.5. (a) Participating units may agree to establish
an equipment replacement fund under this section to be used to
purchase fire protection equipment, including housing, that will be
used to serve the entire territory. To establish the fund, the legislative
bodies of each participating unit must adopt an ordinance (in the case
of a county or municipality) or a resolution (in the case of a township
or fire protection district), and the following requirements must be met:
(1) The ordinance or resolution is identical to the ordinances and
resolutions adopted by the other participating units under this
section.
(2) Before adopting the ordinance or resolution, each participating
unit must comply with the notice and hearing requirements of
IC 6-1.1-41-3.
(3) The ordinance or resolution authorizes the provider unit to
establish the fund.
(4) The ordinance or resolution includes at least the following:
(A) The name of each participating unit and the provider unit.
(B) An agreement to impose a uniform tax rate upon all of the
taxable property within the territory for the equipment
replacement fund.
(C) The contents of the agreement to establish the fund.
An ordinance or a resolution adopted under this section takes effect as
provided in IC 6-1.1-41.
(b) If a fund is established, the participating units may agree to:
(1) impose a property tax to provide for the accumulation of
money in the fund to purchase fire protection equipment;
(2) incur debt to purchase fire protection equipment and impose
a property tax to retire the loan; or
(3) transfer an amount from the fire protection territory fund to
the fire equipment replacement fund not to exceed five percent
(5%) of the levy for the fire protection territory fund for that year;
or any combination of these options.
(c) The property tax rate for the levy imposed under this section is
considered part of the maximum permissible ad valorem property
tax levy and may not exceed three and thirty-three hundredths cents
($0.0333) per one hundred dollars ($100) of assessed value. Before
debt may be incurred, the fiscal body of a participating unit must adopt
an ordinance (in the case of a county or municipality) or a resolution
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(in the case of a township or fire protection district) that specifies the
amount and purpose of the debt. The ordinance or resolution must be
identical to the other ordinances and resolutions adopted by the
participating units. Except as provided in subsection (d), if debt is to be
incurred for the purposes of a fund, the provider unit shall negotiate for
and hold the debt on behalf of the territory. However, the participating
units and the provider unit of the territory are jointly liable for any debt
incurred by the provider unit for the purposes of the fund. The most
recent adjusted value of taxable property for the entire territory must be
used to determine the debt limit under IC 36-1-15-6. A provider unit
shall comply with all general statutes and rules relating to the
incurrence of debt under this subsection.
(d) A participating unit of a territory may, to the extent allowed by
law, incur debt in the participating unit's own name to acquire fire
protection equipment or other property that is to be owned by the
participating unit. A participating unit that acquires fire protection
equipment or other property under this subsection may afterward enter
into an interlocal agreement under IC 36-1-7 with the provider unit to
furnish the fire protection equipment or other property to the provider
unit for the provider unit's use or benefit in accomplishing the purposes
of the territory. A participating unit shall comply with all general
statutes and rules relating to the incurrence of debt under this
subsection.
(e) Money in the fund may be used by the provider unit only for
those purposes set forth in the agreement among the participating units
that permits the establishment of the fund.
(f) The requirements and procedures specified in IC 6-1.1-41
concerning the establishment or reestablishment of a cumulative fund,
the imposing of a property tax for a cumulative fund, and the increasing
of a property tax rate for a cumulative fund apply to:
(1) the establishment or reestablishment of a fund under this
section;
(2) the imposing of a property tax for a fund under this section;
and
(3) the increasing of a property tax rate for a fund under this
section.
(g) Notwithstanding IC 6-1.1-18-12, if a fund established under this
section is reestablished in the manner provided in IC 6-1.1-41, the
property tax rate imposed for the fund in the first year after the fund is
reestablished may not exceed three and thirty-three hundredths cents
($0.0333) per one hundred dollars ($100) of assessed value.
SECTION 279. IC 36-9-27-79.1, AS AMENDED BY P.L.164-2019,
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SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 79.1. Notwithstanding sections 77 and 78 of this
chapter, the following provisions apply whenever the board estimates
that the amount of the contracts to be let is not more than one hundred
fifty thousand dollars ($150,000): the threshold for public bidding of
a public works project under IC 36-1-12-4:
(1) The board need not advertise in the manner provided by
section 78 of this chapter. If the board does not advertise, it shall
mail or send by electronic means written invitations for bids to at
least three (3) persons believed to be interested in bidding on the
work. The invitations shall be mailed or sent by electronic means
at least seven (7) days before the date the board will receive bids,
and must state the nature of the contracts to be let and the date,
time, and place bids will be received.
(2) The board may authorize the county surveyor to contract for
the work in the name of the board.
(3) The contracts may be for a stated sum or may be for a variable
sum based on per unit prices or on the hiring of labor and the
purchase of material.
(4) The contracts shall be let in accordance with the statutes
governing public purchase, including IC 5-22.
(5) The board may for good cause waive any requirement for the
furnishing by the bidder of a bid bond or surety and the furnishing
by a successful bidder of a performance bond.
SECTION 280. IC 36-9-27-97.5, AS AMENDED BY P.L.255-2017,
SECTION 55, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 97.5. (a) Whenever the board determines by
resolution spread upon its minutes that the cost of constructing or
reconstructing a particular drain is an amount that the owners of land
to be assessed may conveniently pay in installments over a five (5) ten
(10) year period, it may ask the county fiscal body to:
(1) obtain a loan from a bank, trust company, savings association,
or savings bank authorized to engage in business in the county; or
(2) obtain funds in the manner prescribed by IC 36-2-6-18,
IC 36-2-6-19, and IC 36-2-6-20;
to finance that construction or reconstruction.
(b) A loan obtained under this section:
(1) must have a fixed or variable interest rate;
(2) must mature within six (6) eleven (11) years after the day it is
obtained;
(3) shall be repaid from installments collected from assessments
of landowners over a five (5) ten (10) year period;
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(4) is not subject to the provisions of section 94 of this chapter
that concern interest; and
(5) is not subject to the penalty provisions under IC 6-1.1-37-10
if the installments are timely paid.
(c) A construction loan fund is established for each construction or
reconstruction project loan that the board and the county fiscal body
authorize under this section. A construction loan fund consists of all
payments received from the owners assessed for the construction or
reconstruction project and may be used only to repay the associated
loan. If money remains in a construction loan fund after the associated
loan is paid in full, the remaining money in the fund may be transferred
to the general drain improvement fund.
(d) A county auditor shall maintain a separate ledger sheet for each
construction loan fund established under subsection (c) and record on
the separate ledger sheet all payments of principal and interest received
from the owners assessed for the associated construction or
reconstruction project.
(e) A county auditor shall deposit all payments of principal and
interest received from the owners assessed for a construction or
reconstruction project in the associated construction loan fund.
(f) The board shall determine whether interest on the loan is to be
a part of the final assessment under section 84(a) of this chapter.
(g) Notwithstanding section 85(c) of this chapter, interest on the
loan may be charged back to the benefited landowner at a rate that is
set in accordance with subsection (b).
SECTION 281. IC 36-9-37-14 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2026 (RETROACTIVE)]:
Sec. 14. (a) With respect to a property owner who has secured the
right to pay the property owner's assessments in deferred installments
by the filing of a waiver, may, the municipal works board shall
establish a policy to permit an owner of real property in the
municipality to prepay the property owner's assessment in full by
either of the following methods:
(1) At any time after the expiration of the first year after the filing,
pay the entire balance of the assessment and be relieved of the
lien on the property owner's property. A property owner may not
pay the property owner's entire balance under this subsection
unless at the same time the property owner pays all interest due
at the next interest paying period.
(2) At any time, including within the year of the filing, pay the
entire balance of the assessment and be relieved of the lien on
the property owner's property. A property owner may not
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pay the property owner's entire balance under this subsection
unless at the same time the property owner pays all interest
due at the next interest paying period.
(b) If a person who exercises the right to prepay the person's
assessment fully pays the assessment and interest, all interest and
liability as to the assessed property ceases.
SECTION 282. IC 36-10-4-5, AS AMENDED BY P.L.152-2021,
SECTION 41, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 5. (a) In a second class city, the board may adopt
a resolution to extend the boundaries of the district to the county
boundaries unless the county has already established a park district
under IC 36-10-3. The board must file a certified copy of the resolution
with the county auditor and county treasurer. Notice of the adoption of
the resolution shall be given by publication once each week for two (2)
weeks in accordance with IC 5-3-1:
(1) with each publication of notice in a newspaper in accordance
with IC 5-3-1 in the county; or
(2) with the first publication of notice in a newspaper described
in subdivision (1) and the second publication of notice:
(A) in accordance with IC 5-3-5; and
(B) on the official web site of the county.
(b) Whenever the board has adopted a resolution under subsection
(a), remonstrances may be filed by the affected voters within ninety
(90) days after the last publication under subsection (a). Remonstrances
must be signed in ink by the voter in person and state the address of
each signer and that the signer is a registered voter. A person who signs
a remonstrance when the person is not a registered voter commits a
Level 6 felony. More than one (1) voter may sign the same
remonstrance.
(c) A vote on the public question shall be held if at least the number
of the registered voters of the county required under IC 3-8-6-3 to place
a candidate on the ballot file remonstrances under subsection (b) with
the county clerk protesting the extension of the district.
(d) The county clerk shall certify to the county election board in
accordance with IC 3-10-9-3 whether or not the required number of
registered voters of the county have filed remonstrances. If sufficient
remonstrances have been filed, the county election board shall publish
a notice of the election once a week for two (2) consecutive weeks in
accordance with IC 5-3-1-4: IC 5-3-1-1.5:
(1) with each publication of notice in a newspaper in accordance
with IC 5-3-1 in the county; or
(2) with the first publication of notice in a newspaper described
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in subdivision (1) and the second publication of notice:
(A) in accordance with IC 5-3-5; and
(B) on the official web site of the county.
The first publication of the notice must be at least thirty (30) days
before the date of the election. The question presented to the voters at
the election shall be placed on the ballot in the form prescribed by
IC 3-10-9-4 and must state "Shall the county park district be
established?". The election is governed by IC 3 whenever not in
conflict with this chapter. The county election board shall make a
return of the votes cast at the referendum.
(e) If a majority of the votes cast are against the extension of the
district, the district is not extended. If sufficient remonstrances are not
filed or if a majority of the votes cast support the extension of the
district, the district is extended.
(f) The extension of the district is effective on January 1 of the year
following the adoption of the resolution or, if an election is held, on
January 1 of the year following the date of the election.
(g) A municipality that becomes part of a district by reason of the
extension of the district under this section may continue to establish,
maintain, and operate parks and other recreational facilities under any
other law. The parks and other recreational facilities shall be operated
by the municipality separate from the parks and other recreational
facilities under the jurisdiction of the board in the same manner as they
would be operated by the municipality if it was not within the district.
(h) The operation of separate parks or recreational facilities by a
municipality does not affect the obligation of property owners within
the municipality to pay all taxes imposed on property within the
district.
(i) The legislative body of a municipality may elect that the separate
parks or other recreational facilities of the municipality be maintained
or operated as a part of the district by adopting a resolution or an
ordinance to that effect. The separate park or other recreational facility
comes under the jurisdiction of the board at the time specified in the
resolution or ordinance.
SECTION 283. [EFFECTIVE JANUARY 1, 2024
(RETROACTIVE)] (a) This SECTION applies notwithstanding
IC 6-1.1-10, IC 6-1.1-11, or any other law or administrative rule or
provision.
(b) This SECTION applies to assessment dates after December
31, 2023, and before January 1, 2026.
(c) As used in this SECTION, "eligible property" means any
real property:
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(1) that is owned, occupied, and used by a taxpayer that:
(A) is exempt from federal income taxation under Section
501(c)(3) of the Internal Revenue Code; and
(B) has a mission focused on preserving Indiana
landmarks;
(2) that is used for one (1) or more of the purposes described
in IC 6-1.1-10-16;
(3) that is a parcel that:
(A) was transferred to the taxpayer before January 1,
2024; and
(B) is located in Vanderburgh County;
(4) on which property taxes were imposed for the 2024 and
2025 assessment dates; and
(5) that would have been eligible for an exemption under
IC 6-1.1-10-16 for the 2024 and 2025 assessment dates if an
exemption application had been properly and timely filed
under IC 6-1.1 for the property.
(d) Before September 1, 2026, the owner of eligible property
may file a property tax exemption application and supporting
documents claiming a property tax exemption under this
SECTION for the eligible property for the 2024 and 2025
assessment dates.
(e) A property tax exemption application filed as provided in
subsection (d) is considered to have been properly and timely filed
for each assessment date.
(f) The following apply if the owner of eligible property files a
property tax exemption application as provided in subsection (d):
(1) The property tax exemption for the eligible property shall
be allowed and granted for the applicable assessment date by
the county assessor and county auditor of the county in which
the eligible property is located.
(2) The owner of the eligible property is not required to pay
any property taxes, penalties, or interest with respect to the
eligible property for the applicable assessment date.
(g) The exemption allowed by this SECTION shall be applied
without the need for any further ruling or action by the county
assessor, the county auditor, or the county property tax assessment
board of appeals of the county in which the eligible property is
located or by the Indiana board of tax review.
(h) To the extent the owner of the eligible property has paid any
property taxes, penalties, or interest with respect to the eligible
property for an applicable date and to the extent that the eligible
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property is exempt from taxation as provided in this SECTION,
the owner of the eligible property is entitled to a refund of the
amounts paid. The owner is not entitled to any interest on the
refund under IC 6-1.1 or any other law to the extent interest has
not been paid by or on behalf of the owner. Notwithstanding the
filing deadlines for a claim under IC 6-1.1-26, any claim for a
refund filed by the owner of eligible property under this SECTION
before September 1, 2026, is considered timely filed. The county
auditor shall pay the refund due under this SECTION in one (1)
installment.
(i) This SECTION expires June 30, 2027.
SECTION 284. [EFFECTIVE JANUARY 1, 2026
(RETROACTIVE)] (a) IC 6-1.1-10.2, as added by this act, applies to
assessment dates occurring after December 31, 2025, for property
taxes first due and payable in 2027.
(b) This SECTION expires July 1, 2030.
SECTION 285. [EFFECTIVE JANUARY 1, 2026
(RETROACTIVE)] (a) The amendments made by this act to:
(1) IC 6-1.1-12.6-2;
(2) IC 6-1.1-12.6-4;
(3) IC 6-1.1-12.6-8;
(4) IC 6-1.1-12.8-3;
(5) IC 6-1.1-12.8-4;
(6) IC 6-1.1-12.8-9; and
(7) IC 6-1.1-12.8-10;
apply to assessment dates occurring after December 31, 2025.
(b) This SECTION expires January 1, 2028.
SECTION 286. [EFFECTIVE UPON PASSAGE] (a) IC 6-3.6-6-3
was amended by P.L.137-2024, SECTION 9, effective July 1, 2024,
until July 1, 2027, and by P.L.68-2025, SECTION 124, effective
July 1, 2027, and the effective date of the amendment made by
P.L.68-2025, SECTION 124 is delayed by this act until July 1, 2028.
The general assembly recognizes that this act amends, effective
July 1, 2026, the version of IC 6-3.6-6-3 amended by P.L.137-2024,
SECTION 9. The general assembly intends for the version of
IC 6-3.6-6-3:
(1) as amended effective July 1, 2026, to expire July 1, 2028;
and
(2) as amended by P.L.68-2025, SECTION 124, to take effect
July 1, 2028.
(b) This SECTION expires December 31, 2028.
SECTION 287. [EFFECTIVE JANUARY 1, 2026
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(RETROACTIVE)] (a) IC 6-3.1-38-4 and IC 6-3.1-38-7, both as
amended by this act, and IC 6-3.1-38-4.5, as added by this act,
apply to taxable years beginning after December 31, 2025.
(b) This SECTION expires January 1, 2028.
SECTION 288. [EFFECTIVE JANUARY 1, 2026
(RETROACTIVE)] (a) IC 6-1.1-51.3-5 and IC 6-1.1-51.3-6, both as
added by this act, apply to property taxes imposed for assessment
dates after December 31, 2025.
(b) This SECTION expires January 1, 2028.
SECTION 289. [EFFECTIVE JANUARY 1, 2026
(RETROACTIVE)] (a) IC 6-1.1-12-14, as amended by this act,
applies to property taxes for assessment dates after December 31,
2025.
(b) This SECTION expires January 1, 2028.
SECTION 290. [EFFECTIVE UPON PASSAGE] (a)
Notwithstanding the effective date of the following sections
amended by P.L.68-2025 (SEA 1-2025), the effective date for these
sections is July 1, 2028, and not July 1, 2027:
(1) IC 5-1-14-14, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 2.
(2) IC 5-16-9-3, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 4.
(3) IC 6-1.1-10.3-3, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 16 and as amended by this act.
(4) IC 6-1.1-10.3-5, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 17.
(5) IC 6-1.1-10.3-7, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 18.
(6) IC 6-3-2-27.5, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 86.
(7) IC 6-3.5-4-1, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 87.
(8) IC 6-3.5-4-1.1, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 88.
(9) IC 6-3.5-5-1, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 89.
(10) IC 6-3.5-5-1.1, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 90.
(11) IC 6-3.6-1-1, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 91.
(12) IC 6-3.6-1-1.5, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 92 and as amended by this act.
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(13) IC 6-3.6-1-3, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 93 and as amended by this act.
(14) IC 6-3.6-1-4, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 94.
(15) IC 6-3.6-2-5, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 97.
(16) IC 6-3.6-3-1, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 102.
(17) IC 6-3.6-3-3, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 103 and as amended by this act.
(18) IC 6-3.6-3-4, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 105 and as amended by this act.
(19) IC 6-3.6-3-5, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 106 and as amended by this act.
(20) IC 6-3.6-6-2, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 118 and as amended by this act.
(21) IC 6-3.6-6-3, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 124.
(22) IC 6-3.6-6-4, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 126 and as amended by this act.
(23) IC 6-3.6-6-8, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 130.
(24) IC 6-3.6-6-8.5, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 131.
(25) IC 6-3.6-6-9.5, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 133.
(26) IC 6-3.6-6-17, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 140.
(27) IC 6-3.6-6-18, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 141.
(28) IC 6-3.6-6-19, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 142.
(29) IC 6-3.6-6-21, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 144.
(30) IC 6-3.6-6-21.3, as amended by P.L.68-2025 (SEA
1-2025), SECTION 146 and as amended by this act.
(31) IC 6-3.6-7-9, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 149 and as amended by this act.
(32) IC 6-3.6-7-28, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 150.
(33) IC 6-3.6-8-4, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 152.
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(34) IC 6-3.6-9-1, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 154 and as amended by this act.
(35) IC 6-3.6-9-4, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 156.
(36) IC 6-3.6-9-4.1, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 157.
(37) IC 6-3.6-9-5, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 158 and as amended by this act.
(38) IC 6-3.6-9-6, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 159.
(39) IC 6-3.6-9-7, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 160.
(40) IC 6-3.6-9-9, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 163.
(41) IC 6-3.6-9-10, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 164 and as amended by this act.
(42) IC 6-3.6-9-11, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 165.
(43) IC 6-3.6-9-12, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 166 and as amended by this act.
(44) IC 6-3.6-9-13, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 167 and as amended by this act.
(45) IC 6-3.6-9-16, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 170.
(46) IC 6-3.6-11-3, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 180 and as amended by this act.
(47) IC 6-9-10.5-8, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 190.
(48) IC 8-18-22-6, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 195.
(49) IC 8-22-3.5-9, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 196.
(50) IC 12-20-25-34, as amended by P.L.68-2025 (SEA
1-2025), SECTION 197.
(51) IC 12-20-25-35, as amended by P.L.68-2025 (SEA
1-2025), SECTION 198.
(52) IC 36-7-15.1-26, as amended by P.L.68-2025 (SEA
1-2025), SECTION 235 and as amended by this act.
(53) IC 36-7-15.1-53, as amended by P.L.68-2025 (SEA
1-2025), SECTION 236 and as amended by this act.
(54) IC 36-7-30-25, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 237 and as amended by this act.
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(55) IC 36-7-30.5-30, as amended by P.L.68-2025 (SEA
1-2025), SECTION 238 and as amended by this act.
(56) IC 36-7.5-4-2.5, as amended by P.L.68-2025 (SEA
1-2025), SECTION 239.
(57) IC 36-8-19-8, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 242.
(b) Notwithstanding the effective date of the following sections
amended by P.L.68-2025 (SEA 1-2025), the effective date for these
sections is January 1, 2029, and not January 1, 2028:
(1) IC 6-1.1-18.5-3, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 60.
(2) IC 6-3.6-2-2, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 95 and as amended by this act.
(3) IC 6-3.6-2-13, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 100 and as amended by this act.
(4) IC 6-3.6-2-15, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 101 and as amended by this act.
(5) IC 6-3.6-4-1, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 113.
(6) IC 6-3.6-4-2, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 114.
(7) IC 6-3.6-4-3, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 115.
(8) IC 6-3.6-8-3, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 151 and as amended by this act.
(9) IC 6-3.6-8-5, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 153.
(10) IC 6-3.6-10-2, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 174.
(11) IC 6-3.6-10-3, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 175.
(12) IC 6-3.6-10-5, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 176.
(13) IC 6-3.6-10-6, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 177.
(14) IC 6-3.6-11-4, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 181.
(15) IC 6-3.6-11-5.5, as amended by P.L.68-2025 (SEA
1-2025), SECTION 182.
(16) IC 6-3.6-11-6, as amended by P.L.68-2025 (SEA 1-2025),
SECTION 183.
(17) IC 6-3.6-11-7, as amended by P.L.68-2025 (SEA 1-2025),
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SECTION 184.
(18) IC 6-3.6-11-7.5, as amended by P.L.68-2025 (SEA
1-2025), SECTION 185.
(c) Notwithstanding the effective date of the following sections
added by P.L.68-2025 (SEA 1-2025), the effective date for these
sections is July 1, 2028, and not July 1, 2027:
(1) IC 6-3.6-3-3.3, as added by P.L.68-2025 (SEA 1-2025),
SECTION 104.
(2) IC 6-3.6-5-7, as added by P.L.68-2025 (SEA 1-2025),
SECTION 116 and as amended by this act.
(3) IC 6-3.6-6-0.5, as added by P.L.68-2025 (SEA 1-2025),
SECTION 117.
(4) IC 6-3.6-6-4.3, as added by P.L.68-2025 (SEA 1-2025),
SECTION 127 and as amended by this act.
(5) IC 6-3.6-6-4.5, as added by P.L.68-2025 (SEA 1-2025),
SECTION 128 and as amended by this act.
(6) IC 6-3.6-6-6.1, as added by P.L.68-2025 (SEA 1-2025),
SECTION 129 and as amended by this act.
(7) IC 6-3.6-6-22, as added by P.L.68-2025 (SEA 1-2025),
SECTION 147 and as amended by this act.
(8) IC 6-3.6-6-23, as added by P.L.68-2025 (SEA 1-2025),
SECTION 148 and as amended by this act.
(9) IC 6-3.6-9-1.1, as added by P.L.68-2025 (SEA 1-2025),
SECTION 155.
(10) IC 6-3.6-9-17.5, as added by P.L.68-2025 (SEA 1-2025),
SECTION 171 and as amended by this act.
(11) IC 6-3.6-9-20, as added by P.L.68-2025 (SEA 1-2025),
SECTION 172.
(12) IC 6-3.6-9-21, as added by P.L.68-2025 (SEA 1-2025),
SECTION 173 and as amended by this act.
(d) Notwithstanding the effective date of the following sections
repealed by P.L.68-2025 (SEA 1-2025), the effective date for these
sections is July 1, 2028, and not July 1, 2027:
(1) IC 6-1.1-10.3-2, as repealed by P.L.68-2025 (SEA 1-2025),
SECTION 15.
(2) IC 6-3.6-2-4, as repealed by P.L.68-2025 (SEA 1-2025),
SECTION 96.
(3) IC 6-3.6-2-12, as repealed by P.L.68-2025 (SEA 1-2025),
SECTION 99.
(4) IC 6-3.6-3-6, as repealed by P.L.68-2025 (SEA 1-2025),
SECTION 107.
(5) IC 6-3.6-3-7, as repealed by P.L.68-2025 (SEA 1-2025),
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SECTION 108.
(6) IC 6-3.6-3-8, as repealed by P.L.68-2025 (SEA 1-2025),
SECTION 109.
(7) IC 6-3.6-3-9, as repealed by P.L.68-2025 (SEA 1-2025),
SECTION 110.
(8) IC 6-3.6-3-10, as repealed by P.L.68-2025 (SEA 1-2025),
SECTION 112.
(9) IC 6-3.6-6-9, as repealed by P.L.68-2025 (SEA 1-2025),
SECTION 132.
(10) IC 6-3.6-6-10, as repealed by P.L.68-2025 (SEA 1-2025),
SECTION 134.
(11) IC 6-3.6-6-11, as repealed by P.L.68-2025 (SEA 1-2025),
SECTION 135.
(12) IC 6-3.6-6-12, as repealed by P.L.68-2025 (SEA 1-2025),
SECTION 136.
(13) IC 6-3.6-6-14, as repealed by P.L.68-2025 (SEA 1-2025),
SECTION 137.
(14) IC 6-3.6-6-15, as repealed by P.L.68-2025 (SEA 1-2025),
SECTION 138.
(15) IC 6-3.6-6-16, as repealed by P.L.68-2025 (SEA 1-2025),
SECTION 139.
(16) IC 6-3.6-6-20, as repealed by P.L.68-2025 (SEA 1-2025),
SECTION 143.
(17) IC 6-3.6-6-21.2, as repealed by P.L.68-2025 (SEA 1-2025),
SECTION 145.
(18) IC 6-3.6-9-8, as repealed by P.L.68-2025 (SEA 1-2025),
SECTION 161.
(19) IC 6-3.6-9-8.5, as repealed by P.L.68-2025 (SEA 1-2025),
SECTION 162.
(20) IC 6-3.6-9-14, as repealed by P.L.68-2025 (SEA 1-2025),
SECTION 168.
(e) Notwithstanding the effective date of the following sections
repealed by P.L.68-2025 (SEA 1-2025), the effective date for these
sections is January 1, 2029, and not January 1, 2028:
(1) IC 6-3.6-6-2.5, as repealed by P.L.68-2025 (SEA 1-2025),
SECTION 119.
(2) IC 6-3.6-6-2.6, as repealed by P.L.68-2025 (SEA 1-2025),
SECTION 120.
(3) IC 6-3.6-6-2.7, as repealed by P.L.68-2025 (SEA 1-2025),
SECTION 121.
(4) IC 6-3.6-6-2.8, as repealed by P.L.68-2025 (SEA 1-2025),
SECTION 122.
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(5) IC 6-3.6-6-2.9, as repealed by P.L.68-2025 (SEA 1-2025),
SECTION 123.
(6) IC 6-3.6-9-15, as repealed by P.L.68-2025 (SEA 1-2025),
SECTION 169.
(7) IC 6-3.6-11-1, as repealed by P.L.68-2025 (SEA 1-2025),
SECTION 179.
(f) The revisor of statutes shall print the Indiana Code to
incorporate the effective date changes to the sections of
P.L.68-2025 (SEA 1-2025) as provided in this SECTION and as
amended by this act.
SECTION 291. P.L.68-2025, SECTION 246, IS REPEALED
[EFFECTIVE UPON PASSAGE]. SECTION 246. [EFFECTIVE JUNE
30, 2027]. (a) Notwithstanding the July 1, 2027, effective date for
IC 6-3.6-6-0.5, IC 6-3.6-6-4.3, IC 6-3.6-6-4.5, and IC 6-3.6-6-6.1, all
as added by this act; the July 1, 2027, effective date for IC 6-3.6-6-2,
IC 6-3.6-6-3, IC 6-3.6-6-4, IC 6-3.6-6-8, IC 6-3.6-6-8.5, IC 6-3.6-6-9.5,
IC 6-3.6-6-17, IC 6-3.6-6-18, IC 6-3.6-6-19, and IC 6-3.6-6-21, all as
amended by this act; and the July 1, 2027, or January 1, 2028, repeal
of IC 6-3.6-6-2.5, IC 6-3.6-6-2.6, IC 6-3.6-6-2.7, IC 6-3.6-6-2.8,
IC 6-3.6-6-2.9, IC 6-3.6-6-9, IC 6-3.6-6-10, IC 6-3.6-6-11,
IC 6-3.6-6-12, IC 6-3.6-6-14, IC 6-3.6-6-15, IC 6-3.6-6-16, and
IC 6-3.6-6-20, all as repealed by this act; the method used to determine
the amount of a particular distribution of revenue before July 1, 2027,
shall continue to be used for these determinations for all of 2027.
(b) Notwithstanding the adoption of different tax rates by a county
applicable after 2027 or the adoption of municipal tax rates under
IC 6-3.6-6-22, as added by this act, applicable after 2027, or any other
provision of law, the certified distribution methodology calculation for
local income tax distributions made in 2027 shall continue for local
income tax distributions made in 2028 and 2029 to account for the
transition to any new tax rates.
(c) This SECTION expires June 30, 2030.
SECTION 292. [EFFECTIVE JUNE 30, 2028] (a) Notwithstanding
the effective date for:
(1) the amendment of sections in IC 6-3.6-6 by this act or by
P.L.68-2025;
(2) the addition of sections in IC 6-3.6-6 by this act or by
P.L.68-2025; or
(3) the repeal of sections in IC 6-3.6-6 by P.L.68-2025;
the method used to determine the amount of a particular
distribution of revenue before July 1, 2028, shall continue to be
used for these determinations for all of 2028.
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(b) Notwithstanding the adoption of different tax rates by a
county applicable after 2028 or the adoption of municipal tax rates
under IC 6-3.6-6-22, applicable after 2028, or any other provision
of law, the certified distribution methodology calculation for local
income tax distributions made in 2028 shall continue for local
income tax distributions made in 2029 and 2030 to account for the
transition to any new tax rates.
(c) This SECTION expires June 30, 2031.
SECTION 293. [EFFECTIVE JANUARY 1, 2024
(RETROACTIVE)] (a) This SECTION applies notwithstanding
IC 6-1.1-10, IC 6-1.1-11, or any other law or administrative rule or
provision.
(b) This SECTION applies to an assessment date occurring after
December 31, 2023, and before January 1, 2026.
(c) As used in this SECTION, "eligible property" means real
property:
(1) on which property taxes were imposed for the 2024 and
2025 assessment dates; and
(2) that is identified as follows:
(A) Parcel 1017913 located at 2237 Station Street,
Indianapolis, IN, 46218.
(B) Parcel 1022147 located at 2226 North Sherman Drive,
Indianapolis, IN, 46218.
(C) Parcel 1057962 located at 2202 North Sherman Drive,
Indianapolis, IN, 46218.
(D) Parcel 1021121 located at 2182 North Olney Street,
Indianapolis, IN, 46218.
(E) Parcel 1003672 located at 3429 Massachusetts Avenue,
Indianapolis, IN, 46218.
(F) Parcel 1011976 located at 2178 North Olney Street,
Indianapolis, IN, 46218.
(d) As used in this SECTION, "qualified taxpayer" refers to a
nonprofit organization that owns eligible property as described
under subsection (c).
(e) A qualified taxpayer may, before September 1, 2026, file a
property tax exemption application and supporting documents
claiming a property tax exemption under IC 6-1.1-10-16 for any
assessment date described in subsection (b).
(f) A property tax exemption application filed under subsection
(e) by a qualified taxpayer is considered to have been properly and
timely filed.
(g) If a qualified taxpayer files the property tax exemption
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applications under subsection (e), the following apply:
(1) The property tax exemption for the eligible property is
allowed and granted for the 2024 and 2025 assessment dates
by the county assessor and county auditor of the county in
which the eligible property is located.
(2) The qualified taxpayer is not required to pay any property
taxes, penalties, interest, or tax sale reimbursement expenses
with respect to the eligible property exempted under this
SECTION for the 2024 and 2025 assessment dates.
(3) If the eligible property was placed on the list certified
under IC 6-1.1-24-1 or IC 6-1.1-24-1.5 or was otherwise
subject to a tax sale under IC 6-1.1-24 and IC 6-1.1-25
because one (1) or more installments of property taxes due for
the eligible property for the 2024 or 2025 assessment dates
were not timely paid:
(A) the county auditor shall remove the eligible property
from the list certified under IC 6-1.1-24-1 or
IC 6-1.1-24-1.5; and
(B) a tax deed may not be issued under IC 6-1.1-25 for the
eligible property for any tax sale of the eligible property
under IC 6-1.1-24 and IC 6-1.1-25 that was held because
one (1) or more installments of property taxes due for the
eligible property for the 2024 or 2025 assessment dates
were not timely paid.
(h) A taxpayer is entitled to the exemption from real property
tax as claimed on a property tax exemption application filed under
this SECTION, regardless of whether:
(1) a property tax exemption application was previously filed
for the same or similar property for the assessment date;
(2) the county property tax assessment board of appeals has
issued a final determination regarding any previously filed
property tax exemption application for the assessment date;
(3) the taxpayer appealed any denial of a previously filed
property tax exemption application for the assessment date;
or
(4) the records of the county in which the property subject to
the property tax exemption application is located identified
the taxpayer as the owner of the property on the assessment
date described in subsection (b) for which the property tax
exemption is claimed.
(i) The exemption allowed by this SECTION shall be applied
and considered approved without the need for any further ruling
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or action by the county assessor, the county auditor, or the county
property tax assessment board of appeals of the county in which
the eligible property is located or by the Indiana board of tax
review. The exemption approval is final and may not be appealed
by the county assessor, the county property tax assessment board
of appeals, or any member of the county property tax assessment
board of appeals.
(j) To the extent the qualified taxpayer has paid any property
taxes, penalties, or interest with respect to the eligible property for
the 2024 or 2025 assessment dates, the eligible taxpayer is entitled
to a refund of the amounts paid. Notwithstanding the filing
deadlines for a claim in IC 6-1.1-26, any claim for a refund filed by
an eligible taxpayer under this subsection before September 1,
2026, is considered timely filed. The county auditor shall pay the
refund due under this SECTION in one (1) installment.
(k) This SECTION expires July 1, 2027.
SECTION 294. [EFFECTIVE JULY 1, 2025 (RETROACTIVE)]
For purposes of IC 6-9-47.5:
(1) the imposition and collection of tax after June 30, 2025,
under that chapter with regard to a taxpayer that also is
subject to a tax under IC 6-9-45.5 is permitted as if
IC 6-9-45.5-13 had been repealed by P.L.230-2025; and
(2) no refund shall be permitted for the tax imposed under
IC 6-9-47.5 after June 30, 2025, based on the imposition of tax
under IC 6-9-45.5 on the same transaction.
SECTION 295. [EFFECTIVE JULY 1, 2025 (RETROACTIVE)] (a)
Notwithstanding any other provision and in addition to the uses for
the state agency contingency fund appropriations in P.L.213-2025
(HEA 1001-2025), the budget agency, subject to budget committee
review, may augment the state agency contingency fund
appropriations in P.L.213-2025 (HEA 1001-2025) through the state
fiscal year ending before July 1, 2027, in an amount that does not
exceed forty million dollars ($40,000,000) for Indiana office of
technology contracts.
(b) This SECTION expires July 1, 2027.
SECTION 296. [EFFECTIVE UPON PASSAGE] (a) The
legislative council is urged to assign to the appropriate interim
study committee during the 2026 legislative interim the task of
studying the application of property use and ownership with
respect to property tax deductions and exemptions.
(b) This SECTION expires December 31, 2026.
SECTION 297. An emergency is declared for this act.
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Speaker of the House of Representatives
President of the Senate
President Pro Tempore
Governor of the State of Indiana
Date: Time:
HEA 1210 — CC 1Every fact on this page links to its source, starting with the official bill record.