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First Regular Session of the 124th General Assembly (2025)
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 2024 Regular Session of the General Assembly.
HOUSE ENROLLED ACT No. 1427
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 4-12-1-20, AS AMENDED BY HEA 1001-2025,
SECTION 48, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 20. (a) As used in this section, "fund" refers to the
Pokagon Band Tribal-state compact fund established by subsection (c).
(b) As used in this section, "Tribal-state compact" refers to the
compact between the state and the Pokagon Band of Potawatomi
Indians pursuant to IC 4-29.
(c) The Pokagon Band Tribal-state compact fund is established for
the purposes set forth in subsection (f). The fund shall be administered
by the budget agency. The fund consists of the following:
(1) Money transferred to the fund as a result of the Tribal-state
compact.
(2) Appropriations, if any, made by the general assembly.
(3) Grants and gifts intended for deposit in the fund.
(4) Any earnings on money in the fund.
(d) The expenses of administering the fund shall be paid from
money in the fund.
(e) Money in the fund at the end of the state fiscal year does not
revert to the state general fund.
(f) Money in the fund may be used only for the following program
areas:
(1) Economic and workforce development.
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(2) Tourism promotion.
(3) Public health.
(4) Education.
(g) Subject to subsection (h), there is appropriated two million
dollars ($2,000,000) per state fiscal year from the fund to the Midwest
continental divide commission fund established under IC 36-10-16-28
for a period of twenty (20) state fiscal years beginning July 1, 2026,
and ending June 30, 2046.
(h) Money in the fund is continuously appropriated for the
purposes of the fund. This subsection expires June 30, 2027.
SECTION 2. IC 4-13.6-5-4, AS AMENDED BY P.L.252-2015,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 4. (a) If the estimated cost of a public works
project is less than three hundred thousand dollars ($300,000), the
division may perform the public work without awarding a public works
contract under section 2 of this chapter. In performing the public work,
the division may authorize use of equipment owned, rented, or leased
by the state, may authorize purchase of materials in the manner
provided by law, and may authorize performance of the public work
using employees of the state.
(b) The workforce of a state agency 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 works project under subsection (a) whose cost is
estimated to be more than one hundred thousand dollars
($100,000), the agency:
(A) publishes a notice under IC 5-3-1 that:
(i) describes the public work that the agency 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 agency's own
workforce.
A public works project performed by an agency's own workforce must
be inspected and accepted as complete in the same manner as a public
works project performed under a contract awarded after receiving bids.
(c) If a public works project involves a structure, an improvement,
or a facility under the control of an agency, the agency may not
artificially divide the project to bring any part of the project under this
section.
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(d) If a public works project involves a structure, improvement, or
facility under the control of the department of natural resources, the
department of natural resources may purchase materials for the project
in the manner provided by law and without a contract being awarded,
and may use its employees to perform the labor and supervision, if:
(1) the department of natural resources uses equipment owned or
leased by it; and
(2) the division of engineering of the department of natural
resources estimates the cost of the public works project will be
less not more than three six hundred thousand dollars
($300,000). ($600,000).
(e) If a public works project involves a structure, improvement, or
facility under the control of the department of correction, the
department of correction may purchase materials for the project in the
manner provided by law and use inmates in the custody of the
department of correction to perform the labor and use its own
employees for supervisory purposes, without awarding a contract, if:
(1) the department of correction uses equipment owned or leased
by it; and
(2) the estimated cost of the public works project using employee
or inmate labor is less than the greater of:
(A) fifty thousand dollars ($50,000); or
(B) the project cost limitation set by IC 4-13-2-11.1.
All public works projects covered by this subsection must comply with
the remaining provisions of this article, and all plans and specifications
for the public works project must be approved by a licensed architect
or engineer.
SECTION 3. IC 5-1-11-1, AS AMENDED BY P.L.236-2023,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 1. (a) Except as otherwise provided in this chapter
or in the statute authorizing their issuance, all bonds issued by or in the
name of counties, townships, cities, towns, school corporations, and
special taxing districts, agencies or instrumentalities thereof, or by
entities required to sell bonds pursuant to this chapter, whether the
bonds are general obligations or issued in anticipation of the collection
of special taxes or are payable out of revenues, may be sold:
(1) at a public sale; or
(2) alternatively, at a negotiated sale, after June 30, 2018, and
before July 1, 2025, in the case of:
(A) counties;
(B) townships;
(C) cities;
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(D) towns;
(E) taxing districts;
(F) special taxing districts; and
(G) school corporations.
(b) The word "bonds" as used in this chapter means any obligations
issued by or in the name of any of the political subdivisions or bodies
referred to in subsection (a), except obligations payable in the year in
which they are issued, obligations issued in anticipation of the
collection of delinquent taxes, and obligations issued in anticipation of
the collection of frozen bank deposits.
(c) Notwithstanding any of the provisions of subsection (a) or any
of the provisions of section 2 of this chapter, any bonds may be sold to
the federal government or any agency thereof, at private sale and
without a public offering.
SECTION 4. IC 5-1-11-6, AS AMENDED BY P.L.236-2023,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 6. (a) In cases where other statutes authorize the
issuance and exchange of new bonds for the purpose of refunding or
redeeming outstanding bonds for the payment of which no funds are
available, it shall be the duty of the officers charged with issuance and
exchange of the new bonds to cause the bonds to be offered:
(1) at a public sale as provided in this chapter; or
(2) alternatively, at a negotiated sale, after June 30, 2018, and
before July 1, 2025, in the case of:
(A) counties;
(B) townships;
(C) cities;
(D) towns;
(E) taxing districts;
(F) special taxing districts; and
(G) school corporations.
(b) In cases where it is necessary to provide for the refunding of
bonds or interest coupons maturing at various times over a period not
exceeding six (6) months, the bodies and officials charged with the
duty of issuing and selling the refunding bonds may, for the purpose of
reducing the cost of issuance of the bonds, issue and sell one (1) issue
of bonds in an amount sufficient to provide for the refunding of all of
the bonds and interest coupons required to be refunded during the six
(6) month period.
SECTION 5. IC 5-13-8-9 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 9. (a) All public funds of all
political subdivisions shall be deposited in the designated depositories
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located in the respective territorial limits of the political subdivisions,
except as provided in this section.
(b) Each board of finance of a political subdivision:
(1) that is not a city or town; or school corporation; and
(2) whose jurisdiction crosses one (1) or more county lines;
may limit its boundaries for the purpose of this section to that portion
of the political subdivision within the county where its principal office
is located.
(c) If there is no principal office or branch of a financial institution
located in the county or political subdivision, or if no financial
institution with a principal office or branch in the county or political
subdivision will accept public funds under this chapter, the board of
finance of the county and the boards of finance of the political
subdivisions in the county shall designate one (1) or more financial
institutions with a principal office or branch outside of the county or
political subdivision, and in the state, as a depository or depositories.
(d) The board of trustees for a hospital organized or operated under
IC 16-22-1 through IC 16-22-5 or IC 16-23-1 may invest any money in
the hospital fund anywhere in the state with any financial institution
designated by the state board of finance as depositories for state
deposits.
(e) If only one (1) two (2) or fewer financial institution institutions
that has have a branch or principal office in a county or political
subdivision is are willing to accept public funds, the board of finance
for the county or political subdivision may:
(1) treat the financial institution institutions that is are located
within the county or political subdivision as if the financial
institution institutions were not located within the county or
political subdivision; and
(2) designate one (1) or more financial institutions to receive
public funds under the requirements of subsection (c).
(f) The investing officer shall maintain the deposits as follows:
(1) In one (1) or more depositories designated for the political
subdivision, if the sum of the monthly average balances of all the
transaction accounts for the political subdivision does not exceed
one hundred thousand dollars ($100,000).
(2) In each depository designated for the political subdivision, if
subdivision (1) does not apply and fewer than three (3) financial
institutions are designated by the local board of finance as a
depository.
(3) In at least two (2) depositories designated for the political
subdivision, if subdivision (1) does not apply and at least three (3)
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financial institutions are designated by the local board of finance
as a depository.
(g) Subject to subsections (c) and (e), a board of finance of a
political subdivision that is not a city, town, or hospital described
in subsection (d) shall invest the public funds of the political
subdivision in a designated depository located anywhere in the
county in which the political subdivision is located. For purposes
of this section, the territorial limits of a political subdivision that
is not a city, town, or local hospital authority or corporation are
the territorial limits of the county in which the principal office of
the board of finance is located.
SECTION 6. IC 5-13-9-4, AS AMENDED BY HEA 1001-2025,
SECTION 61, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 4. (a) Each officer designated in section 1 of this
chapter may, subject to the restrictions provided in IC 5-13-8-9(a)
through IC 5-13-8-9(e), IC 5-13-8-9, deposit, invest, or reinvest any
funds that are held by the officer and available for investment in
transaction accounts issued or offered by a designated depository of a
political subdivision for the rates and terms agreed upon periodically
by the officer making the investment and the designated depository.
(b) The investing officer making a deposit in a certificate of deposit
shall obtain quotes of the specific rates of interest for the term of that
certificate of deposit that each designated depository will pay on the
certificate of deposit. Quotes may be solicited and taken by telephone.
A memorandum of all quotes solicited and taken shall be retained by
the investing officer as a public record of the political subdivision
under IC 5-14-3. If the deposit is not placed in the designated
depository quoting the highest rate of interest, the investing officer
shall:
(1) place the deposit in the depository quoting the second or third
highest rate of interest; and
(2) note the reason for placing the deposit on the memorandum of
quotes.
(c) If all of the designated depositories of a political subdivision
decline to issue or receive any deposit account, or to issue or receive
the deposit account at a rate of interest equal to the highest rate being
offered other investors, investments may be made in the deposit
accounts of any financial institution designated for state deposits as a
depository by the state board of finance under IC 5-13-9.5.
(d) Counties and political subdivisions subject to the requirements
of IC 5-13-8 and this chapter shall treat the local government
investment pool established by section 11 of this chapter as a financial
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institution located within the state but not located in the county or
political subdivision nor in a contiguous county.
(e) The seven (7) day yield published weekly by the treasurer of
state shall act as a quote for purposes of this chapter.
SECTION 7. IC 5-13-9-5, AS AMENDED BY P.L.117-2018,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 5. (a) The board of county commissioners of each
county, and the fiscal body of each political subdivision other than a
county, may, subject to the restrictions provided in IC 5-13-8-9(a)
through IC 5-13-8-9(e), IC 5-13-8-9, by ordinance or resolution
authorize the investing officer of each, respectively, to invest in
certificates of deposit of depositories that have not been designated by
the local board of finance of either but have been designated by the
state board of finance as a depository for state deposits under
IC 5-13-9.5. An ordinance or a resolution adopted under this subsection
must provide that the authority granted in the ordinance or resolution
expires on a date that is not later than one (1) year after the date the
ordinance or resolution is adopted.
(b) With respect to any money to be invested in a deposit account
under subsection (a), the investing officer shall solicit quotes for the
certificates of deposit from at least three (3) depositories. If only one
(1) depository has been designated for the political subdivision by its
local board of finance, a quote must be solicited from that depository.
If two (2) or more depositories have been designated for the political
subdivision by its local board of finance, at least two (2) quotes must
be solicited from the depositories thus designated. The quotes may be
solicited and taken by telephone. A memorandum of all quotes solicited
and taken shall be retained by the investing officer as a public record
of the political subdivision under IC 5-14-3.
(c) If a deposit is not placed in the designated depository quoting the
highest rate of interest, the investing officer shall follow the procedures
and priority for placing deposits that are set forth in section 4 of this
chapter and note the reason for placing the deposit on the memorandum
of quotes.
SECTION 8. IC 5-13-9-11, AS AMENDED BY HEA 1001-2025,
SECTION 62, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 11. (a) The following definitions apply throughout
this section:
(1) "Clearinghouse" refers to the clearinghouse registered with the
department of state revenue under IC 6-8.1-9.5-3.5.
(2) "Investment pool" means the local government investment
pool established by subsection (b).
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(3) "Board" refers to the Indiana local government investment
pool board established by section 12 of this chapter.
(b) The local government investment pool is established within the
office and custody of the treasurer of state.
(c) An officer designated in section 1 of this chapter may pay any
funds held by the officer into the investment pool, subject to the
requirements provided in section 4 of this chapter, for the purpose of
deposit, investment, and reinvestment of the funds by the treasurer of
state on behalf of the unit of government paying the funds into the
investment pool.
(d) The treasurer of state may pay state funds into the investment
pool for the purpose of deposit, investment, and reinvestment of the
state funds.
(e) The treasurer of state shall establish an account in the investment
pool for the operator of the clearinghouse. The treasurer shall hold
amounts paid by the department of state revenue for deposit in the
clearinghouse operator's account in the investment pool.
(f) Upon signed written request of the operator of the clearinghouse,
the treasurer of state shall distribute the money in the operator's
account established under subsection (e):
(1) to the operator of the clearinghouse; or
(2) to specific investment pool accounts of political subdivisions
represented by the clearinghouse, if the written request submitted
under this subsection specifies:
(A) the political subdivision to which the funds are to be
disbursed;
(B) the specific amount of the funds to be disbursed; and
(C) the specific investment pool account to which the
disbursement is owed.
The clearinghouse shall assume liability for any legal or administrative
claims filed against a disbursement made by the treasurer of state that
complies with this section.
(g) Any interest accrued by the investment pool on funds held in the
operator's account shall be distributed to the political subdivisions at a
rate equal to the percentage owed to that political subdivision based on
the overall setoff paid by the department of state revenue. No interest
shall accrue under this subsection on any fees owed to the
clearinghouse under IC 6-8.1-9.5-10(b).
(h) The treasurer of state shall invest the funds in the investment
pool in the same manner, in the same type of instruments, and subject
to the same limitations provided for the deposit and investment of state
funds by the treasurer of state under IC 5-13-10.5.
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(i) The treasurer of state:
(1) shall administer the investment pool in accordance with the
policies of the board; and
(2) with the permission of the board, may contract with
accountants, attorneys, regulated investment advisors, money
managers, and other finance and investment professionals to
make investments and provide for the public accounting and legal
compliance necessary to ensure and maintain the safety, liquidity,
and yield of the investment pool.
(j) The treasurer of state shall follow the policies established by the
board. The treasurer of state must ensure the following:
(1) The administrative expenses of the investment pool shall be
accounted for by the treasurer of state and shall be paid from the
earnings of the investment pool.
(2) The earnings of the investment pool in excess of the
administrative expenses of the investment pool shall be credited
to the state and each unit of government participating in the
investment pool in a manner that equitably reflects the different
amounts and terms of the state's investment and each unit's
investment in the investment pool.
(3) The state and each unit of government participating in the
investment pool shall receive electronic or paper reports,
including:
(A) a daily transaction confirmation, reflecting any activity in
the state's or unit's account; and
(B) a monthly report showing:
(i) the state's or unit's investment activity in the investment
pool; and
(ii) the performance and composition of the investment pool.
(4) Publish the seven (7) day yield of the local government
investment pool every week to serve as a bid required for
investment under section 4 of this chapter.
(k) A unit of government participating in the investment pool may
elect to have any funds due from the state wired directly to the
custodian bank of the investment pool for credit to the unit's investment
pool account by submitting in writing a request to the state comptroller
to wire the funds as directed. An election made by a unit of government
under this subsection may be revoked at any time by the unit by
submitting in writing a request to the state comptroller to cease wiring
the funds as previously directed by the unit.
SECTION 9. IC 5-14-3.7-2, AS ADDED BY P.L.172-2011,
SECTION 17, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
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JULY 1, 2025]: Sec. 2. As used in this chapter, "public school" has the
meaning set forth in IC 20-18-2-15. The term includes a charter
school (as defined in IC 20-24-1-4).
SECTION 10. IC 5-14-3.8-3.5, AS AMENDED BY P.L.156-2024,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 3.5. (a) This section applies only to contracts that
a political subdivision that is a taxing unit (as defined in IC 6-1.1-1-21)
enters into after June 30, 2016.
(b) As used in this section, "contract" means a contract, agreement,
or similar arrangement by any other name. The term includes all pages
of a contract, any attachments to the contract, and any amendments,
addendums, or extensions.
(c) Subject to subsection (d), a political subdivision shall upload a
digital copy of a contract to the Indiana transparency website one (1)
time if the total cost of the contract to the political subdivision exceeds
fifty thousand dollars ($50,000) during the term of the contract. This
subsection applies to all contracts for any subject, purpose, or term,
except that a political subdivision is not required to upload a copy of
an employment contract between the political subdivision and an
employee of the political subdivision. In the case of a collective
bargaining agreement, the political subdivision shall upload a copy of
the collective bargaining agreement and a copy of a blank or sample
individual employment contract. A political subdivision shall upload
the contract not later than sixty (60) days after the date the contract is
executed. If a political subdivision enters into a contract that the
political subdivision reasonably expects when entered into will not
exceed fifty thousand dollars ($50,000) in cost to the political
subdivision but at a later date determines or expects the contract to
exceed fifty thousand dollars ($50,000) in cost to the political
subdivision, the political subdivision shall upload a copy of the
contract within sixty (60) days after the date on which the political
subdivision makes the determination or realizes the expectation that the
contract will exceed fifty thousand dollars ($50,000) in cost to the
political subdivision.
(d) The executive fiscal officer of a political subdivision shall
upload a digital copy to the Indiana transparency website of any
contract, regardless of the total cost, that is:
(1) related to the provision of fire services or emergency medical
services; or
(2) entered into with another unit or entity that provides fire
services or emergency medical services.
A political subdivision shall upload the contract not later than sixty
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(60) days after the date the contract is executed. If a participating unit
of a fire protection territory submits the agreement to establish the fire
protection territory as required under this subsection, each of the
participating units of the fire protection territory shall be considered to
have complied with the requirements of this subsection.
(e) The executive body of a political subdivision may, by ordinance
or resolution, identify another an individual other than the fiscal
officer of the political subdivision that is required to upload contracts
as required under subsection (d) this section and complete the
attestation required under IC 6-1.1-17-5.4.
(f) Any ordinance or resolution adopted by the executive body of a
political subdivision shall be submitted to the department of local
government finance not later than five (5) days after the ordinance or
resolution is passed.
(g) Nothing in this section prohibits the political subdivision from
withholding any information in the contract that the political
subdivision shall or may withhold from disclosure under IC 5-14-3. A
political subdivision may redact or obscure signatures on a contract.
The political subdivision is solely responsible for redacting information
in the contract.
SECTION 11. IC 5-14-9-6 AS ADDED BY HEA 1509-2025,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Except as provided in section 8 of this chapter, any
board meeting notice or agenda must provide the following information
regarding each appointed officer serving on the board:
(1) The officer's name.
(2) The appointing authority.
(3) The beginning and expiration date of the officer's term of
appointment.
SECTION 12. IC 5-14-9-8 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2025]: Sec. 8. (a) This section applies to an appointed board that
is a committee, subcommittee, or other subgroup of an elected
body appointed entirely:
(1) from the body's elected members; and
(2) by a member or members of the elected body.
(b) The requirements of section 6 of this chapter are satisfied if
the appointed board's meeting notice or agenda provides both of
the following:
(1) Each appointed officer's:
(A) name; and
(B) title of elected office.
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(2) If the meeting notice or agenda is in:
(A) electronic form, the link to the website; or
(B) printed form, the web address of the website;
under section 7 of this chapter where the information set forth
in section 6 of this chapter is published.
SECTION 13. IC 6-1.1-3-7, AS AMENDED BY P.L.174-2022,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2026]: Sec. 7. (a) Except as provided in subsections (b),
(c), and (f), a taxpayer shall, on or before the filing date of each year,
file a personal property return: with:
(1) the assessor of each township in which the taxpayer's personal
property is subject to assessment;
(2) the county assessor if there is no township assessor for a
township in which the taxpayer's personal property is subject to
assessment; or
(3) after 2020 and before 2026, the personal property online
submission portal developed and maintained by the department
under section 26 of this chapter (before its repeal).
(b) The township assessor or county assessor may grant a taxpayer
an extension of not more than thirty (30) days to file the taxpayer's
return if:
(1) the taxpayer submits a written or an electronic application for
an extension prior to the filing date; and
(2) the taxpayer is prevented from filing a timely return because
of sickness, absence from the county, or any other good and
sufficient reason.
(c) If a taxpayer:
(1) has personal property subject to assessment in more than one
(1) township in a county; or
(2) has personal property that is subject to assessment and that is
located in two (2) or more taxing districts within the same
township;
the taxpayer shall file a single return with the county assessor and
attach a schedule listing, by township, all the taxpayer's personal
property and the property's assessed value. The taxpayer shall provide
the county assessor with the information necessary for the county
assessor to allocate the assessed value of the taxpayer's personal
property among the townships listed on the return and among taxing
districts, including the street address, the township, and the location of
the property. The taxpayer may, in the alternative, submit the taxpayer's
personal property information and the property's assessed value
through the personal property online submission portal developed
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under section 26 of this chapter (before its repeal).
(d) The county assessor shall provide to each affected township
assessor (if any) in the county all information filed by a taxpayer under
subsection (c) that affects the township.
(e) The county assessor may refuse to accept a personal property tax
return that does not comply with subsection (c). For purposes of
IC 6-1.1-37-7, a return to which subsection (c) applies is filed on the
date it is filed with the county assessor with the schedule required by
subsection (c) attached.
(f) This subsection applies to a church or religious society that:
(1) has filed a personal property tax return under this section for
each of the five (5) years preceding a year; and
(2) on each of the returns described in subdivision (1) has not
owed any tax liability due to exemptions under IC 6-1.1 for which
the church or religious society has been deemed eligible.
Notwithstanding any other law, a church or religious society is not
required to file a personal property tax return for a year after the five
(5) year period described in subdivision (1) unless there is a change in
ownership of any personal property included on a return described in
subdivision (1), or any other change that results in the personal
property no longer being eligible for an exemption under IC 6-1.1, or
the church or religious society would otherwise be liable for property
tax imposed on personal property owned by the church or religious
society.
SECTION 14. IC 6-1.1-3-7.2, AS AMENDED BY SEA 1-2025,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]: Sec. 7.2. (a) This section
applies to assessment dates occurring after December 31, 2015.
(b) As used in this section, "affiliate" means an entity that
effectively controls or is controlled by a taxpayer or is associated with
a taxpayer under common ownership or control, whether by
shareholdings or other means.
(c) As used in this section, "business personal property" means
personal property that:
(1) is otherwise subject to assessment and taxation under this
article;
(2) is used in a trade or business or otherwise held, used, or
consumed in connection with the production of income; and
(3) was:
(A) acquired by the taxpayer in an arms length transaction
from an entity that is not an affiliate of the taxpayer, if the
personal property has been previously used in Indiana before
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being placed in service in the county; or
(B) acquired in any manner, if the personal property has never
been previously used in Indiana before being placed in service
in the county.
The term does not include mobile homes assessed under IC 6-1.1-7,
personal property held as an investment, or personal property that is
assessed under IC 6-1.1-8 and is owned by a public utility subject to
regulation by the Indiana utility regulatory commission. However, the
term does include the personal property of a telephone company or a
communications service provider if that personal property meets the
requirements of subdivisions (1) through (3), regardless of whether that
personal property is assessed under IC 6-1.1-8 and regardless of
whether the telephone company or communications service provider is
subject to regulation by the Indiana utility regulatory commission.
(d) Notwithstanding section 7 of this chapter, if the acquisition cost
of a taxpayer's total business personal property in a county is less than:
(1) eighty thousand dollars ($80,000) for assessment dates before
2025; 2026; and
(2) one million dollars ($1,000,000) for the 2025 assessment date;
and
(3) (2) two million dollars ($2,000,000) for the 2026 assessment
date, and each assessment date thereafter;
the taxpayer's business personal property in the county for that
assessment date is exempt from taxation.
(e) Subject to subsection (f), a taxpayer that is eligible for the
exemption under this section for an assessment date shall include the
following information on the taxpayer's personal property tax return:
(1) A declaration that the taxpayer's business personal property in
the county is exempt from property taxation.
(2) Whether the taxpayer's business personal property within the
county is in one (1) location or multiple locations.
(3) An address for the location of the property.
If the business personal property is in multiple locations within a
county, the taxpayer shall provide an address for the location where the
sum of acquisition costs for business personal property is greatest. If
two (2) or more addresses contain the greatest equivalent sum of
acquisition costs for business personal property within a given county,
the taxpayer shall choose only one (1) address to list on the return.
(f) Beginning after December 31, 2022, a taxpayer that has included
the information required under subsection (e) on the taxpayer's
personal property tax return to claim the exemption under this section
is not required to file a personal property return for the taxpayer's
HEA 1427 — CC 1
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business personal property for an assessment date that occurs after the
assessment date for which the information is first provided under
subsection (e), unless or until the taxpayer no longer qualifies for the
exemption under subsection (d) for a subsequent assessment date.
(g) This subsection applies to a taxpayer who filed a business
personal property tax return on or after April 15, 2025, in which
the taxpayer claimed an exemption under this section for the 2025
assessment date of more than eighty thousand dollars ($80,000)
under provisions enacted in SEA 1-2025, but before those
provisions were repealed in HEA 1427-2025. A taxpayer described
in this subsection is not entitled to an exemption under this section
that exceeds the amount as amended in HEA 1427-2025, and the
taxpayer must file an amended return not later than May 31, 2025.
SECTION 15. IC 6-1.1-3-26 IS REPEALED [EFFECTIVE
JANUARY 1, 2026]. Sec. 26. The department, in collaboration with
county assessors, shall develop and maintain a personal property online
submission portal through which a taxpayer is able to submit
information through a single point of contact to accomplish the
following:
(1) Completing and submitting a personal property return with:
(A) the assessor of each township in which the taxpayer's
personal property is subject to assessment; or
(B) the county assessor if there is no township assessor for a
township in which the taxpayer's personal property is subject
to assessment.
(2) Filing a complete disclosure of all information required by the
department that is related to the value, nature, or location of
personal property:
(A) that the taxpayer owned on the assessment date of that
year; or
(B) that the taxpayer held, possessed, or controlled on the
assessment date of that year.
(3) Reviewing information submitted with a personal property
return during previous years.
(4) Calculating the payment for any fee to be included with the
tax statement that must be paid to the department for a taxpayer
to submit a personal property return.
The department shall make the portal available for taxpayer use no
later than January 1, 2021.
SECTION 16. IC 6-1.1-3-27 IS REPEALED [EFFECTIVE
JANUARY 1, 2026]. Sec. 27. (a) The department shall adopt rules
under IC 4-22-2 to set a fee for the submission of a personal property
HEA 1427 — CC 1
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return using the personal property online submission portal described
in section 26 of this chapter.
(b) A person filing a personal property return using the personal
property online submission portal shall pay a fee established under
subsection (a) to the county auditor.
(c) All revenue collected under this section shall be transferred by
the county auditor to the treasurer of state for deposit in the personal
property online submission portal fund established by section 28 of this
chapter.
SECTION 17. IC 6-1.1-3-28, AS ADDED BY P.L.108-2019,
SECTION 104, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2026]: Sec. 28. (a) The personal property
online submission portal fund is established for the purpose of
receiving fees deposited under section 27 of this chapter (before its
repeal). The fund shall be administered by the department of local
government finance.
(b) Money in the fund may be used by the department:
(1) to cover expenses incurred in the development, maintenance,
and administration of the personal property online submission
portal;
(2) for data base management expenses; and
(3) to cover any other expenses related to property tax
administration.
(c) 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 money may be invested.
(d) Money in the fund at the end of a state fiscal year does not revert
to the state general fund.
SECTION 18. IC 6-1.1-3-29, AS ADDED BY SEA 1-2025,
SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]: Sec. 29. (a) This subsection
applies only to a taxpayer's assessable depreciable personal property
that is placed in service on or before January 1, 2025. Except as
provided in subsections (b) and (c), for each assessment date, the total
valuation of a taxpayer's assessable depreciable personal property in a
single taxing district may not be less than thirty percent (30%) of the
adjusted cost of all the taxpayer's assessable depreciable personal
property in the taxing district.
(b) The limitation set forth in subsection (a) is to be applied before
any special adjustment for abnormal obsolescence. The limitation does
not apply to equipment not placed in service, special tooling, and
permanently retired depreciable personal property.
HEA 1427 — CC 1
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(c) Depreciable personal property that is placed in service after
January 1, 2025, is not subject to the minimum valuation limitation
under this section. However, if depreciable personal property is placed
in service after January 1, 2025, and
(1) is located in an existing tax increment allocation area for
which the base assessed value is determined before January 1,
2025, or
(2) property tax revenue that is attributable to the depreciable
personal property is pledged as payment for bonds, leases, or
other obligations;
the depreciable personal property remains subject to the minimum
valuation limitations under this section.
SECTION 19. IC 6-1.1-4-4.5, AS AMENDED BY SEA 1-2025,
SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]: 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
HEA 1427 — CC 1
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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
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, 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, eight percent (8%);
shall be used to determine the final base rate.
(B) If the preliminary base rate for the assessment date would
HEA 1427 — CC 1
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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
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 20. IC 6-1.1-4-13.6, AS AMENDED BY P.L.236-2023,
SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 13.6. (a) The county assessor shall determine the
values of all classes of commercial, industrial, and residential land
(including farm homesites) in the county using guidelines determined
by the department of local government finance. The assessor
determining the values of land shall submit the values and any
supporting document to the county property tax assessment board of
appeals and the department of local government finance by the dates
specified in the county's reassessment plan under section 4.2 of this
chapter.
(b) If the county assessor fails to determine land values under
subsection (a) before the deadlines in the county's reassessment plan
under section 4.2 of this chapter, the county property tax assessment
HEA 1427 — CC 1
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board of appeals shall determine the values. If the county property tax
assessment board of appeals fails to determine the values before the
land values become effective, the department of local government
finance shall determine the values.
(c) The county assessor shall notify all township assessors in the
county (if any) of the values. Assessing officials shall use the values
determined under this section.
(d) A petition for the review of the land values determined by a
county assessor under this section may be filed with the department of
local government finance county auditor not later than forty-five (45)
days after the county assessor makes the determination of the land
values. The petition must set forth the property owners' objections
and be signed by at least the lesser of:
(1) one hundred (100) property owners in the county; or
(2) five percent (5%) of the property owners in the county.
(e) Upon the filing of a petition, the county auditor shall certify
a copy of the petition, together with any other data that is
necessary in order to present the property owners' objections, to
the department of local government finance.
(e) (f) Upon receipt of a petition for review under subsection (d), the
department of local government finance:
(1) shall review the land values determined by the county
assessor; and
(2) after a public hearing, shall:
(A) approve;
(B) modify; or
(C) disapprove;
the land values.
Notice of the hearing shall be given by the department of local
government finance to the assessor and to the first ten (10)
petitioners at least five (5) days before the date of the hearing.
SECTION 21. IC 6-1.1-4-47 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2025]: Sec. 47. (a) This section applies to assessment dates
occurring after December 31, 2025.
(b) As used in this section, "affordability restrictions" means
restrictions set forth in a ground lease concerning the future sale
or transfer of the community land trust improvement owned by a
qualified owner that are intended to maintain the continued
affordability of the community land trust improvement, including
at least the following:
(1) The community land trust improvement may only be sold
HEA 1427 — CC 1
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to another qualified owner who intends to:
(A) use the community land trust improvement as the
qualified owner's primary place of residence; and
(B) enter into a ground lease with the community land
trust.
(2) A formula to be used to calculate the sale or transfer price
that preserves the continued affordability of the community
land trust improvement.
(3) A purchase option for the community land trust intended
to preserve the continued affordability of the community land
trust improvement.
(4) The maximum amount for which the community land trust
improvement located on the community land trust land may
be sold or transferred.
(c) As used in this section, "community land trust" means a
nonprofit corporation that meets the following requirements:
(1) The nonprofit corporation is exempt from taxation under
Section 501(c)(3) of the Internal Revenue Code.
(2) A primary purpose of the nonprofit corporation is the
creation and maintenance of permanently affordable single
family or multi-family residences.
(3) The nonprofit corporation leases community land trust
land on which a community land trust improvement is located
to a qualified owner under a ground lease that provides for
the qualified owner's use of the community land trust
improvement as the qualified owner's primary place of
residence.
(d) As used in this section, "community land trust
improvement" means a dwelling unit and associated improvements
located on community land trust land that is occupied by a
qualified owner as the qualified owner's primary place of residence
according to the terms of a ground lease.
(e) As used in this section, "community land trust land" means
land owned by a community land trust for the purposes described
in subsection (c)(2) and (c)(3).
(f) As used in this section, "ground lease" means a lease entered
into between a community land trust and a qualified owner that
allows the qualified owner to occupy a community land trust
improvement located on community land trust land and includes
at least the following:
(1) Affordability restrictions.
(2) Restrictions for resale or transfer of the community land
HEA 1427 — CC 1
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trust improvement.
(3) A provision stating that the community land trust retains
an interest in the community land trust land.
(4) The initial appraised value of the community land trust
improvement at the time the lease is entered into or at the
time otherwise specified.
(5) The monthly fee that the qualified owner must pay to the
community land trust for use of the community land trust
land.
(6) A term of ninety-nine (99) years that may be renewed.
(g) As used in this section, "qualified owner" means an
individual who is a member of a household with annual household
income that is not more than eighty percent (80%) of the median
household income in the community land trust land's surrounding
area, as determined according to the median household income
amounts published by the United States Department of Housing
and Urban Development at the time the ground lease is entered
into.
(h) The assessed value of the land held by a community land
trust in an assessment year is equal to the assessed value of the land
at the time land was acquired by the community land trust.
(i) For purposes of making a reassessment of a community land
trust improvement under section 4.2 of this chapter or an annual
adjustment under section 4.5 of this chapter, the assessed value of
a community land trust improvement after the initial assessment
under this section may not exceed the maximum amount for which
the community land trust improvement may be sold or transferred
as set forth in the affordability restrictions of the ground lease to
which the community land trust improvement is subject.
SECTION 22. IC 6-1.1-8-24.5, AS ADDED BY P.L.191-2021,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2026]: 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 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
HEA 1427 — CC 1
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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 23. IC 6-1.1-8-28, AS AMENDED BY P.L.156-2024,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 28. (a) Each year the department of local
government finance shall notify each public utility company of:
(1) the department's tentative assessment of the company's
distributable property; and
(2) the value of the company's distributable property used by the
department to determine the tentative assessment.
(b) The department of local government finance shall give the notice
required by subsection (a) not later than:
(1) September 1 in the case of railcar companies; and
(2) June 1 in the case of all other public utility companies.
(c) The department of local government finance shall notify the
county assessor of the department's tentative assessment, or
information related to tentative valuation changes, of each utility
company's distributable property located in that county not later than
June 1.
(d) Not later than ten (10) fifteen (15) days after a public utility
company receives the department of local government finance sends
the notice required by subsection (a), the company may:
(1) file with the department its objections to the tentative
assessment; and
(2) request that the department hold a preliminary conference on
the tentative assessment.
(e) If the public utility company does not file its objections under
subsection (d)(1) within the time allowed:
(1) the tentative assessment is considered final; and
(2) the company may appeal the assessment under section 30 of
this chapter.
SECTION 24. IC 6-1.1-8-45, AS ADDED BY SEA 1-2025,
SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]: Sec. 45. (a) This subsection
applies only to a taxpayer's assessable depreciable personal property
that is placed in service on or before January 1, 2025. Except as
provided in subsections (b) and (c), for each assessment date, the total
valuation of a taxpayer's assessable depreciable personal property in a
single taxing district may not be less than thirty percent (30%) of the
adjusted cost of all the taxpayer's assessable depreciable property in the
HEA 1427 — CC 1
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taxing district.
(b) The limitation set forth in subsection (a) is to be applied before
any special adjustment for abnormal obsolescence. The limitation does
not apply to equipment not placed in service, special tooling, and
permanently retired depreciable personal property.
(c) Depreciable personal property that is placed in service after
January 1, 2025, is not subject to the minimum valuation limitation
under this section. However, if depreciable personal property is placed
in service after January 1, 2025, and
(1) is located in an existing tax increment allocation area for
which the base assessed value is determined before January 1,
2025, or
(2) property tax revenue that is attributable to the depreciable
personal property is pledged as payment for bonds, leases, or
other obligations;
the depreciable personal property remains subject to the minimum
valuation limitations under this section.
SECTION 25. IC 6-1.1-8.5-3, AS AMENDED BY P.L.11-2023,
SECTION 22, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 3. As used in this chapter, "qualifying county"
means a county having a population of more than four hundred
thousand (400,000) four hundred fifty thousand (450,000) and less
than seven hundred thousand (700,000).
SECTION 26. IC 6-1.1-10-16, AS AMENDED BY P.L.85-2019,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2024 (RETROACTIVE)]: Sec. 16. (a) All or part of a
building is exempt from property taxation if it is owned, occupied, and
used by a person for educational, literary, scientific, religious, or
charitable purposes.
(b) A building is exempt from property taxation if it is owned,
occupied, and used by a town, city, township, or county for educational,
literary, scientific, fraternal, or charitable purposes.
(c) A tract of land, including the campus and athletic grounds of an
educational institution, is exempt from property taxation if:
(1) a building that is exempt under subsection (a) or (b) is situated
on it;
(2) a parking lot or structure that serves a building referred to in
subdivision (1) is situated on it; or
(3) the tract:
(A) is owned by a nonprofit entity established for the purpose
of retaining and preserving land and water for their natural
characteristics;
HEA 1427 — CC 1
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(B) does not exceed five hundred (500) acres; and
(C) is not used by the nonprofit entity to make a profit.
(d) A tract of land is exempt from property taxation if:
(1) it is purchased for the purpose of erecting a building that is to
be owned, occupied, and used in such a manner that the building
will be exempt under subsection (a) or (b); and
(2) not more than four (4) years after the property is purchased,
and for each year after the four (4) year period, the owner
demonstrates substantial progress and active pursuit towards the
erection of the intended building and use of the tract for the
exempt purpose. To establish substantial progress and active
pursuit under this subdivision, the owner must prove the existence
of factors such as the following:
(A) Organization of and activity by a building committee or
other oversight group.
(B) Completion and filing of building plans with the
appropriate local government authority.
(C) Cash reserves dedicated to the project of a sufficient
amount to lead a reasonable individual to believe the actual
construction can and will begin within four (4) years.
(D) The breaking of ground and the beginning of actual
construction.
(E) Any other factor that would lead a reasonable individual to
believe that construction of the building is an active plan and
that the building is capable of being completed within eight (8)
years considering the circumstances of the owner.
If the owner of the property sells, leases, or otherwise transfers a tract
of land that is exempt under this subsection, the owner is liable for the
property taxes that were not imposed upon the tract of land during the
period beginning January 1 of the fourth year following the purchase
of the property and ending on December 31 of the year of the sale,
lease, or transfer. The county auditor of the county in which the tract
of land is located may establish an installment plan for the repayment
of taxes due under this subsection. The plan established by the county
auditor may allow the repayment of the taxes over a period of years
equal to the number of years for which property taxes must be repaid
under this subsection.
(e) Personal property is exempt from property taxation if it is owned
and used in such a manner that it would be exempt under subsection (a)
or (b) if it were a building.
(f) A hospital's property that is exempt from property taxation under
subsection (a), (b), or (e) shall remain exempt from property taxation
HEA 1427 — CC 1
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even if the property is used in part to furnish goods or services to
another hospital whose property qualifies for exemption under this
section.
(g) Property owned by a shared hospital services organization that
is exempt from federal income taxation under Section 501(c)(3) or
501(e) of the Internal Revenue Code is exempt from property taxation
if it is owned, occupied, and used exclusively to furnish goods or
services to a hospital whose property is exempt from property taxation
under subsection (a), (b), or (e).
(h) This section does not exempt from property tax an office or a
practice of a physician or group of physicians that is owned by a
hospital licensed under IC 16-21-2 or other property that is not
substantially related to or supportive of the inpatient facility of the
hospital unless the office, practice, or other property:
(1) provides or supports the provision of charity care (as defined
in IC 16-18-2-52.5), including providing funds or other financial
support for health care services for individuals who are indigent
(as defined in IC 16-18-2-52.5(b) and IC 16-18-2-52.5(c)); or
(2) provides or supports the provision of community benefits (as
defined in IC 16-21-9-1), including research, education, or
government sponsored indigent health care (as defined in
IC 16-21-9-2).
However, participation in the Medicaid or Medicare program alone
does not entitle an office, practice, or other property described in this
subsection to an exemption under this section.
(i) A tract of land or a tract of land plus all or part of a structure on
the land is exempt from property taxation if:
(1) the tract is acquired for the purpose of erecting, renovating, or
improving a single family residential structure that is to be given
away or sold:
(A) in a charitable manner;
(B) by a nonprofit organization; and
(C) to low income individuals who will:
(i) use the land as a family residence; and
(ii) not have an exemption for the land under this section;
(2) the tract does not exceed three (3) acres; and
(3) the tract of land or the tract of land plus all or part of a
structure on the land is not used for profit while exempt under this
section.
(j) An exemption under subsection (i) terminates when the property
is conveyed by the nonprofit organization to another owner.
(k) When property that is exempt in any year under subsection (i) is
HEA 1427 — CC 1
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conveyed to another owner, the nonprofit organization receiving the
exemption must file a certified statement with the auditor of the county,
notifying the auditor of the change not later than sixty (60) days after
the date of the conveyance. The county auditor shall immediately
forward a copy of the certified statement to the county assessor. A
nonprofit organization that fails to file the statement required by this
subsection is liable for the amount of property taxes due on the
property conveyed if it were not for the exemption allowed under this
chapter.
(l) If property is granted an exemption in any year under subsection
(i) and the owner:
(1) fails to transfer the tangible property within eight (8) years
after the assessment date for which the exemption is initially
granted; or
(2) transfers the tangible property to a person who:
(A) is not a low income individual; or
(B) does not use the transferred property as a residence for at
least one (1) year after the property is transferred;
the person receiving the exemption shall notify the county recorder and
the county auditor of the county in which the property is located not
later than sixty (60) days after the event described in subdivision (1) or
(2) occurs. The county auditor shall immediately inform the county
assessor of a notification received under this subsection.
(m) If subsection (l)(1) or (l)(2) applies, the owner shall pay, not
later than the date that the next installment of property taxes is due, an
amount equal to the sum of the following:
(1) The total property taxes that, if it were not for the exemption
under subsection (i), would have been levied on the property in
each year in which an exemption was allowed.
(2) Interest on the property taxes at the rate of ten percent (10%)
per year.
(n) The liability imposed by subsection (m) is a lien upon the
property receiving the exemption under subsection (i). An amount
collected under subsection (m) shall be collected as an excess levy. If
the amount is not paid, it shall be collected in the same manner that
delinquent taxes on real property are collected.
(o) Property referred to in this section shall be assessed to the extent
required under IC 6-1.1-11-9.
(p) This subsection applies to assessment dates occurring before
January 1, 2026. A for-profit provider of early childhood education
services to children who are at least four (4) but less than six (6) years
of age on the annual assessment date may receive the exemption
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provided by this section for property used for educational purposes
only if all the requirements of section 46 of this chapter are satisfied.
A for-profit provider of early childhood education services that
provides the services only to children younger than four (4) years of
age may not receive the exemption provided by this section for
property used for educational purposes.
(q) This subsection applies to assessment dates occurring after
December 31, 2025. Property used by a for-profit provider of early
childhood education services to children who are less than six (6)
years of age on the annual assessment date may receive the
exemption provided by this section for property used for
educational purposes only if all the requirements of section 46 of
this chapter are satisfied.
(r) This subsection applies only to property taxes that are first
due and payable in calendar years 2025 and 2026. All or part of a
building is deemed to serve a charitable purpose and is exempt
from property taxation if it is owned by a nonprofit entity that is:
(1) registered as a continuing care retirement community
under IC 23-2-4 and charges an entry fee of not more than
five hundred thousand dollars ($500,000) per unit;
(2) defined as a small house health facility under
IC 16-18-2-331.9;
(3) licensed as a health care or residential care facility under
IC 16-28; or
(4) licensed under IC 31-27 and designated as a qualified
residential treatment provider that provides services under a
contract with the department of child services.
This subsection expires January 1, 2027.
SECTION 27. IC 6-1.1-10-18.5, AS AMENDED BY P.L.197-2011,
SECTION 33, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2024 (RETROACTIVE)]: Sec. 18.5. (a) This section
does not exempt from property tax an office or a practice of a physician
or group of physicians that is owned by a hospital licensed under
IC 16-21-2 or other property that is not substantially related to or
supportive of the inpatient facility of the hospital unless the office,
practice, or other property:
(1) provides or supports the provision of charity care (as defined
in IC 16-18-2-52.5), including funds or other financial support for
health care services for individuals who are indigent (as defined
in IC 16-18-2-52.5(b) and IC 16-18-2-52.5(c)); or
(2) provides or supports the provision of community benefits (as
defined in IC 16-21-9-1), including research, education, or
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government sponsored indigent health care (as defined in
IC 16-21-9-2).
However, participation in the Medicaid or Medicare program, alone,
does not entitle an office, a practice, or other property described in this
subsection to an exemption under this section.
(b) Tangible property is exempt from property taxation if it is:
(1) owned by an Indiana nonprofit corporation; and
(2) used by that an Indiana nonprofit corporation in the
operation of a hospital licensed under IC 16-21, a health facility
licensed under IC 16-28, or in the operation of a residential care
facility for the aged and licensed under IC 16-28, or in the
operation of a Christian Science home or sanatorium.
(c) This subsection applies only to property taxes first due and
payable in calendar years 2025 and 2026. Tangible property that
is not otherwise exempt from property taxation under subsection
(b) is exempt from property taxation if it is:
(1) owned by an Indiana nonprofit corporation; and
(2) used by an Indiana nonprofit corporation in the operation
of a continuing care retirement community under IC 23-2-4
that charges an entry fee of not more than five hundred
thousand dollars ($500,000) per unit as described in section
16(r)(1) of this chapter, a small house health facility under
IC 16-18-2-331.9, or a qualified residential treatment provider
listed in section 16(r)(4) of this chapter.
This subsection expires January 1, 2027.
(c) (d) Property referred to in this section shall be assessed to the
extent required under IC 6-1.1-11-9.
SECTION 28. IC 6-1.1-10-36.5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 36.5. (a) Tangible
property is not exempt from property taxation under sections 16
through 28 of this chapter or under section 33 of this chapter if it is
used by the exempt organization in a trade or business, not
substantially related to the exercise or performance of the
organization's exempt purpose.
(b) Property referred to in sections 16 through 28 of this chapter or
under section 33 of this chapter shall be assessed to the extent required
under IC 6-1.1-11-9.
(c) The department of local government finance shall may adopt
rules under IC 4-22-2 to carry out this section.
SECTION 29. IC 6-1.1-10-46, AS AMENDED BY P.L.130-2018,
SECTION 22, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2026]: Sec. 46. (a) Tangible property owned, occupied,
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or used by a for-profit provider of early childhood education services
to children who are at least four (4) but less than six (6) years of age is
exempt from property taxation under section 16 of this chapter only if
all the following requirements are satisfied:
(1) The primary purpose of the provider is educational.
(2) (1) The provider, or a parent company, subsidiary, or
affiliate company of the provider, is the property owner. and
(2) The provider also predominantly occupies and uses the
tangible property for providing early childhood education services
to children who are at least four (4) but less than six (6) years of
age.
(3) The provider meets the standards of quality recognized by a
Level 3 or Level 4 Paths to QUALITY program rating under
IC 12-17.2-2-14.2 or has a comparable rating from a nationally
recognized accrediting body.
(4) The provider offers age appropriate curriculum for all
children who are less than six (6) years of age, including
infants, who attend the child care facility. The curriculum
offered must include reading to the children.
However, the exemption provided by this section does not apply to
tangible property that has been granted a homestead standard
deduction under IC 6-1.1-12-37.
If the property owner provides early childhood education services to
children who are at least four (4) but less than six (6) years of age and
to children younger than four (4) years of age, the amount of the
exemption must be on that part of the assessment of the property that
bears the same proportion to the total assessment of the property as the
percentage of the property owner's enrollment count of children who
are at least four (4) but less than six (6) years of age compared to the
property owner's total enrollment count of children of all ages.
(b) For purposes of this section, the annual assessment date or, if the
annual assessment date is not a business day for the property owner, the
business day closest to the annual assessment date, must be used for the
enrollment count under this section. However, a property owner that
believes that the enrollment count on this date for a particular year does
not accurately represent the property owner's normal enrollment count
for that year may appeal to the county assessor for a change in the date
to be used under this section for that year. The appeal must be filed on
or before the deadline for filing an exemption under section 16 of this
chapter. If the county assessor finds that the property owner's appeal
substantiates that the property owner's normal enrollment count is not
accurately represented by using the required date, the assessor shall
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establish an alternate date to be used for that year that represents the
property owner's normal enrollment count for that year.
SECTION 30. IC 6-1.1-10-51 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2026]: Sec. 51. (a) As used in this
section, "child care" has the meaning set forth in IC 12-7-2-28.2.
(b) As used in this section, "early learning advisory committee"
refers to the early learning advisory committee established by
IC 12-17.2-3.8-5.
(c) As used in this section, "employer" means any person,
corporation, limited liability company, partnership, or other entity
with employees employed at a physical location in Indiana. The
term includes a pass through entity. However, the term does not
include an employer who is in the business of operating a child care
facility.
(d) As used in this section, "office" refers to the office of the
secretary of family and social services established by IC 12-8-1.5-1.
(e) The part of the gross assessed value of tangible property that
is attributable to tangible property owned and used by an
employer, or a parent company, subsidiary, or affiliate company
of an employer, to provide child care for children of the employer's
employees and children of the employees of another business in
accordance with an agreement entered into under subsection (g) is
exempt from property taxation if the following conditions are met:
(1) The child care is provided in a facility located on the
employer's property.
(2) Subject to subsection (g), the child care is provided only
for children of the employer's employees.
(3) The child care facility is licensed by the division of family
resources under IC 12-17.2.
(4) The part of the employer's property used to provide child
care meets standards established by the office and the early
learning advisory committee for the number of children to be
served by the child care facility.
(f) The child care facility may be operated by the employer or
under a contract described in Section 45F(c)(1)(A)(iii) of the
Internal Revenue Code to provide child care services to the
employer's employees.
(g) An employer may provide child care in a facility described
in subsection (e)(1) for the children of the employees of another
business if the employer and the other business enter into an
agreement that outlines the terms under which the child care is to
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be provided to the children of the employees of the other business.
SECTION 31. IC 6-1.1-12-13, AS AMENDED BY SEA 1-2025,
SECTION 24, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (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
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.
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(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, 2025.
(f) This section expires January 1, 2027.
SECTION 32. IC 6-1.1-12-14, AS AMENDED BY SEA 1-2025,
SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (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) 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)
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
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
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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) 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.
(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,
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).
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(e) 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.
(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.
(g) This section applies only to property taxes imposed for an
assessment date before January 1, 2025.
(h) This section expires January 1, 2027.
SECTION 33. IC 6-1.1-12-14.5, AS AMENDED BY SEA 1-2025,
SECTION 26, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (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;
(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
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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 or 14
of this chapter (before their expiration) 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.
SECTION 34. IC 6-1.1-12-15, AS AMENDED BY SEA 1-2025,
SECTION 27, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (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. 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
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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) 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) 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
required by this section must contain the record number and page
where the contract or memorandum of the contract is recorded.
(e) This section applies only to property taxes imposed for an
assessment date before January 1, 2025.
(f) This section expires January 1, 2027.
SECTION 35. IC 6-1.1-12-17.8, AS AMENDED BY SEA 1-2025,
SECTION 30, 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,
(before its expiration), 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
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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, 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, (before its expiration), 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, (before its expiration), 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, (before its expiration), 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
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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
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,
(before its expiration), 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, (before its
expiration), 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
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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.
(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
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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.
SECTION 36. IC 6-1.1-12-17.9, AS AMENDED BY SEA 1-2025,
SECTION 31, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]: Sec. 17.9. (a) A trust is
entitled 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), 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.
(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 37. IC 6-1.1-12-43, AS AMENDED BY SEA 1-2025,
SECTION 49, IS 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
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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 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.
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(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
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 38. IC 6-1.1-12-46, AS AMENDED BY SEA 1-2025,
SECTION 51, 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
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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
(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. (before its expiration).
(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 39. IC 6-1.1-15-3, AS AMENDED BY P.L.154-2020,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 3. (a) A taxpayer may obtain a review by the
Indiana board of:
(1) a county board's action with respect to a claim under section
1.1 of this chapter; or
(2) a denial by the county auditor, the county assessor, or the
county treasurer of a claim for refund under IC 6-1.1-9-10(c)(2)
that is appealed to the Indiana board as authorized in
IC 6-1.1-26-2.1(d)(2).
(b) The county assessor is the party to a review under subsection
(a)(1) to defend the determination of the county board. The county
auditor may appear as an additional party to the review if the
determination concerns a matter that is in the discretion of the county
auditor. At the time the notice of that determination is given to the
taxpayer, the taxpayer shall also be informed in writing of:
HEA 1427 — CC 1
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(1) the taxpayer's opportunity for review under subsection (a)(1);
and
(2) the procedures the taxpayer must follow in order to obtain
review under this section.
(c) A county assessor who dissents from the determination of the
county board may obtain a review by the Indiana board. A county
auditor who dissents from the determination of the county board
concerning a matter that is in the discretion of the county auditor may
obtain a review by the Indiana board.
(d) In order to obtain a review by the Indiana board under
subsection (a)(1), the party must, not later than forty-five (45) days
after the date of the notice given to the party or parties of the
determination of the county board:
(1) file a petition for review with the Indiana board; and
(2) mail serve a copy of the petition to on the other party.
(e) The Indiana board shall prescribe the form of the petition for
review under this chapter. The Indiana board shall issue instructions for
completion of the form. The form and the instructions must be clear,
simple, and understandable to the average individual. A petition for
review of such a determination must be made on the form prescribed
by the Indiana board. The form must require the petitioner to specify
the reasons why the petitioner believes that the determination by the
county board is erroneous.
(f) If the action for which a taxpayer seeks review under this section
is the assessment of tangible property, the taxpayer is not required to
have an appraisal of the property in order to do the following:
(1) Initiate the review.
(2) Prosecute the review.
(g) If an owner petitions the Indiana board under IC 6-1.1-11-7(d),
the Indiana board is authorized to approve or disapprove an exemption
application:
(1) previously submitted to a county board under IC 6-1.1-11-6;
and
(2) that is not approved or disapproved by the county board within
one hundred eighty (180) days after the owner filed the
application for exemption under IC 6-1.1-11.
The county assessor is a party to a petition to the Indiana board under
IC 6-1.1-11-7(d).
(h) This subsection applies only to the review by the Indiana board
of a denial of a refund claim described in subsection (a)(2). The county
assessor is the party to a review under subsection (a)(2) to defend the
denial of the refund under IC 6-1.1-26-2.1. In order to obtain a review
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by the Indiana board under subsection (a)(2), the taxpayer must, within
forty-five (45) days of the notice of denial under IC 6-1.1-26-2.1(d):
(1) file a petition for review with the Indiana board; and
(2) mail serve a copy of the petition to on the county auditor.
SECTION 40. IC 6-1.1-15-4, AS AMENDED BY P.L.156-2020,
SECTION 17, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 4. (a) After receiving a petition for review which
is filed under section 3 of this chapter, the Indiana board shall conduct
a hearing at its earliest opportunity. The Indiana board may correct any
errors related to a claim under section 1.1 of this chapter that is within
the jurisdiction of the Indiana board under IC 6-1.5-4-1.
(b) If the Indiana board conducts a site inspection of the property as
part of its review of the petition, the Indiana board shall give notice to
all parties of the date and time of the site inspection. The Indiana board
is not required to assess the property in question. The Indiana board
shall give notice of the date fixed for the hearing, by mail, to the parties
or a party's representative. The Indiana board shall give these notices
at least thirty (30) days before the day fixed for the hearing unless the
parties agree to a shorter period. With respect to a petition for review
filed by a county assessor, the county board that made the
determination under review under this section may file an amicus
curiae brief in the review proceeding under this section. The expenses
incurred by the county board in filing the amicus curiae brief shall be
paid from the property reassessment fund under IC 6-1.1-4-27.5 of the
county in which the property is located. The executive of a taxing unit
may file an amicus curiae brief in the review proceeding under this
section if the property that is the subject of the appeal is subject to
assessment by that taxing unit.
(c) If a petition for review does not comply with the Indiana board's
instructions for completing the form prescribed under section 3 of this
chapter, the Indiana board shall return the petition to the petitioner and
include serve a notice describing the defect in the petition. The
petitioner then has thirty (30) days from the date on the notice to cure
the defect and file a corrected petition. The Indiana board shall deny a
corrected petition for review if it does not substantially comply with the
Indiana board's instructions for completing the form prescribed under
section 3 of this chapter.
(d) After the hearing, the Indiana board shall give the parties and
any entity that filed an amicus curiae brief, or their representatives:
(1) notice by mail, of its final determination; and
(2) for parties entitled to appeal the final determination, notice of
the procedures they must follow in order to obtain court review
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under section 5 of this chapter.
(e) The Indiana board shall conduct a hearing not later than one (1)
year after a petition in proper form is filed with the Indiana board.
(f) The Indiana board shall issue a determination not later than the
later of:
(1) ninety (90) days after the hearing; or
(2) the date set in an extension order issued by the Indiana board.
The board may not extend the date by more than one hundred
eighty (180) days.
(g) The time periods described in subsections (e) and (f) do not
include any period of time that is attributable to a party's:
(1) request for a continuance, stay, extension, or summary
disposition;
(2) consent to a case management order, stipulated record, or
proposed hearing date;
(3) failure to comply with the board's orders or rules; or
(4) waiver of a deadline.
(h) If the Indiana board fails to take action required under
subsection (e) or (f), the entity that initiated the petition may:
(1) take no action and wait for the Indiana board to hear the
matter and issue a final determination; or
(2) petition for judicial review under section 5 of this chapter.
(i) This subsection applies when the board has not held a hearing.
A person may not seek judicial review under subsection (h)(2) until:
(1) the person requests a hearing in writing; and
(2) sixty (60) days have passed after the person requests a hearing
under subdivision (1) and the matter has not been heard or
otherwise extended under subsection (g).
(j) A final determination must include separately stated findings of
fact for all aspects of the determination. Findings of ultimate fact must
be accompanied by a concise statement of the underlying basic facts of
record to support the findings. Findings must be based exclusively
upon the evidence on the record in the proceeding and on matters
officially noticed in the proceeding. Findings must be based upon a
preponderance of the evidence.
(k) The Indiana board may limit the scope of the appeal to the issues
raised in the petition and the evaluation of the evidence presented to
the county board in support of those issues only if all parties
participating in the hearing required under subsection (a) agree to the
limitation. A party participating in the hearing required under
subsection (a) is entitled to introduce evidence that is otherwise proper
and admissible without regard to whether that evidence has previously
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been introduced at a hearing before the county board.
(l) The Indiana board may require the parties to the appeal:
(1) to file not more than five (5) business days before the date of
the hearing required under subsection (a) documentary evidence
or summaries of statements of testimonial evidence; and
(2) to file not more than fifteen (15) business days before the date
of the hearing required under subsection (a) lists of witnesses and
exhibits to be introduced at the hearing.
(m) A party to a proceeding before the Indiana board shall provide
to all other parties to the proceeding the information described in
subsection (l) if the other party requests the information in writing at
least ten (10) days before the deadline for filing of the information
under subsection (l).
(n) The Indiana board may base its final determination on a
stipulation between the respondent and the petitioner. If the final
determination is based on a stipulated assessed valuation of tangible
property, the Indiana board may order the placement of a notation on
the permanent assessment record of the tangible property that the
assessed valuation was determined by stipulation. The Indiana board
may:
(1) order that a final determination under this subsection has no
precedential value; or
(2) specify a limited precedential value of a final determination
under this subsection.
(o) If a party to a proceeding, or a party's authorized representative,
elects to receive any notice under this section by electronic mail,
electronically, the notice is considered effective in the same manner
as if the notice had been sent by United States mail, with postage
prepaid, to the party's or representative's mailing address of record.
(p) At a hearing under this section, the Indiana board shall admit
into evidence an appraisal report, prepared by an appraiser, unless the
appraisal report is ruled inadmissible on grounds besides a hearsay
objection. This exception to the hearsay rule shall not be construed to
limit the discretion of the Indiana board, as trier of fact, to review the
probative value of an appraisal report.
SECTION 41. IC 6-1.1-17-1, AS AMENDED BY P.L.156-2024,
SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: 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
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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; or
(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. If the
county auditor makes the amendment as a result of information
provided to the county auditor by an assessor, the county auditor shall
give notice of the public hearing 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
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.
SECTION 42. IC 6-1.1-17-5.4, AS ADDED BY P.L.156-2024,
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SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 5.4. (a) Not later than March 2 of each year, the
executive 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 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
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 43. IC 6-1.1-17-20, AS AMENDED BY P.L.257-2013,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 20. (a) This section applies to each governing
body of a taxing unit that is not comprised of a majority of officials
who are elected to serve on the governing body. For purposes of this
section, an individual who qualifies to be appointed to a governing
body or serves on a governing body because of the individual's status
as an elected official of another taxing unit shall be treated as an
official who was not elected to serve on the governing body.
(b) As used in this section, "taxing unit" has the meaning set forth
in IC 6-1.1-1-21, except that the term does not include a public library
or an entity whose tax levies are subject to review and modification by
a city-county legislative body under IC 36-3-6-9.
(c) If:
(1) the assessed valuation of a taxing unit is entirely contained
within a city or town; or
(2) the assessed valuation of a taxing unit is not entirely contained
within a city or town but:
(A) the taxing unit was originally established by the city or
town; or
(B) the majority of the individuals serving on the governing
body of the taxing unit are appointed by the city or town;
the governing body shall submit its proposed budget and property tax
levy to the city or town fiscal body. The proposed budget and levy shall
be submitted to the city or town fiscal body in the manner prescribed
by the department of local government finance before September 2 of
a year.
(d) If subsection (c) does not apply, the governing body of the taxing
unit shall submit its proposed budget and property tax levy to the
county fiscal body in the county where the taxing unit has the most
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assessed valuation. The proposed budget and levy shall be submitted
to the county fiscal body in the manner prescribed by the department
of local government finance before September 2 of a year.
(e) The fiscal body of the city, town, or county (whichever applies)
shall review each budget and proposed tax levy and adopt a final
budget and tax levy for the taxing unit. The fiscal body may reduce or
modify but not increase the proposed budget or tax levy.
(f) If a taxing unit fails to file the information required in subsection
(c) or (d), whichever applies, with the appropriate fiscal body by the
time prescribed by this section, the most recent annual appropriations
and annual tax levy of that taxing unit are continued for the ensuing
budget year. when calculating the maximum ad valorem property
tax levy under IC 6-1.1-18.5-3(a) for the taxing unit for the ensuing
budget year, instead of multiplying the maximum levy growth
quotient determined under IC 6-1.1-18.5-2(b) or IC 6-1.1-18.5-2(e)
(as applicable) for the year by the taxing unit's maximum
permissible ad valorem property tax levy for the preceding
calendar year as prescribed in STEP TWO of IC 6-1.1-18.5-3(a),
for purposes of STEP TWO of IC 6-1.1-18.5-3(a), the taxing unit's
maximum permissible ad valorem property tax levy for the
preceding calendar year must instead be multiplied by the result
of the following:
STEP ONE: Determine:
(A) the result of STEP FOUR of IC 6-1.1-18.5-2(b) or
STEP FIVE of IC 6-1.1-18.5-2(e) (as applicable); minus
(B) one (1).
STEP TWO: Multiply:
(A) the STEP ONE result; by
(B) eight-tenths (0.8).
STEP THREE: Add one (1) to the STEP TWO result.
However, if the taxing unit files the information as required in
subsection (c) or (d), whichever applies, for the budget year
immediately following the budget year for which the formula
under this subsection is applied, when calculating the maximum ad
valorem property tax levy under IC 6-1.1-18.5-3(a) for the taxing
unit for the subsequent budget year, the taxing unit's maximum
permissible ad valorem property tax levy must be calculated as if
the formula under this subsection had not been applied for the
affected budget year.
(g) If the appropriate fiscal body fails to complete the requirements
of subsection (e) before the adoption deadline in section 5 of this
chapter for any taxing unit subject to this section, the most recent
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annual appropriations and annual tax levy of the city, town, or county,
whichever applies, are continued for the ensuing budget year. when
calculating the maximum ad valorem property tax levy under
IC 6-1.1-18.5-3(a) for the city, town, or county for the ensuing
budget year, instead of multiplying the maximum levy growth
quotient determined under IC 6-1.1-18.5-2(b) or IC 6-1.1-18.5-2(e)
(as applicable) for the year by the city's, town's, or county's
maximum permissible ad valorem property tax levy for the
preceding calendar year as prescribed in STEP TWO of
IC 6-1.1-18.5-3(a), for purposes of STEP TWO of
IC 6-1.1-18.5-3(a), the city's, town's, or county's maximum
permissible ad valorem property tax levy for the preceding
calendar year must instead be multiplied by the result of the
following:
STEP ONE: Determine:
(A) the result of STEP FOUR of IC 6-1.1-18.5-2(b) or
STEP FIVE of IC 6-1.1-18.5-2(e) (as applicable); minus
(B) one (1).
STEP TWO: Multiply:
(A) the STEP ONE result; by
(B) eight-tenths (0.8).
STEP THREE: Add one (1) to the STEP TWO result.
However, if the city, town, or county files the information as
required in subsection (e) for the budget year immediately
following the budget year for which the formula under this
subsection is applied, when calculating the maximum ad valorem
property tax levy under IC 6-1.1-18.5-3(a) for the city, town, or
county for the subsequent budget year, the unit's maximum
permissible ad valorem property tax levy must be calculated as if
the formula under this subsection had not been applied for the
affected budget year.
SECTION 44. IC 6-1.1-17-20.3, AS AMENDED BY P.L.38-2021,
SECTION 29, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 20.3. (a) Except as provided in section 20.4 of this
chapter, this section applies only to the governing body of a public
library that:
(1) is not comprised of a majority of officials who are elected to
serve on the governing body; and
(2) has a percentage increase in the proposed budget for the
taxing unit for the ensuing calendar year that is more than the
result of:
(A) the maximum levy growth quotient determined under
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IC 6-1.1-18.5-2 for the ensuing calendar year, rounded to the
nearest thousandth (0.001); minus
(B) one (1).
For purposes of this section, an individual who qualifies to be
appointed to a governing body or serves on a governing body because
of the individual's status as an elected official of another taxing unit
shall be treated as an official who was not elected to serve on the
governing body.
(b) This section does not apply to an entity whose tax levies are
subject to review and modification by a city-county legislative body
under IC 36-3-6-9.
(c) If:
(1) the assessed valuation of a public library's territory is entirely
contained within a city or town; or
(2) the assessed valuation of a public library's territory is not
entirely contained within a city or town but more than fifty
percent (50%) of the assessed valuation of the public library's
territory is contained within the city or town;
the governing body shall submit its proposed budget and property tax
levy to the city or town fiscal body in the manner prescribed by the
department of local government finance before September 2 of a year.
However, the governing body shall submit its proposed budget and
property tax levy to the county fiscal body in the manner provided in
subsection (d), rather than to the city or town fiscal body, if more than
fifty percent (50%) of the parcels of real property within the
jurisdiction of the public library are located outside the city or town.
(d) If subsection (c) does not apply or the public library's territory
covers more than one (1) county, the governing body of the public
library shall submit its proposed budget and property tax levy to the
county fiscal body in the county where the public library has the most
assessed valuation. The proposed budget and levy shall be submitted
to the county fiscal body in the manner prescribed by the department
of local government finance before September 2 of a year.
(e) The fiscal body of the city, town, or county (whichever applies)
shall review each budget and proposed tax levy and adopt a final
budget and tax levy for the public library. The fiscal body may reduce
or modify but not increase the proposed budget or tax levy.
(f) If a public library fails to file the information required in
subsection (c) or (d), whichever applies, with the appropriate fiscal
body by the time prescribed by this section, the most recent annual
appropriations and annual tax levy of that public library are continued
for the ensuing budget year. when calculating the maximum ad
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valorem property tax levy under IC 6-1.1-18.5-3(a) for the public
library for the ensuing budget year, instead of multiplying the
maximum levy growth quotient determined under
IC 6-1.1-18.5-2(b) or IC 6-1.1-18.5-2(e) (as applicable) for the year
by the public library's maximum permissible ad valorem property
tax levy for the preceding calendar year as prescribed in STEP
TWO of IC 6-1.1-18.5-3(a), for purposes of STEP TWO of
IC 6-1.1-18.5-3(a), the public library's maximum permissible ad
valorem property tax levy for the preceding calendar year must
instead be multiplied by the result of the following:
STEP ONE: Determine:
(A) the result of STEP FOUR of IC 6-1.1-18.5-2(b) or
STEP FIVE of IC 6-1.1-18.5-2(e) (as applicable); minus
(B) one (1).
STEP TWO: Multiply:
(A) the STEP ONE result; by
(B) eight-tenths (0.8).
STEP THREE: Add one (1) to the STEP TWO result.
However, if the public library files the information as required in
subsection (c) or (d), whichever applies, for the budget year
immediately following the budget year for which the formula
under this subsection is applied, when calculating the maximum ad
valorem property tax levy under IC 6-1.1-18.5-3(a) for the public
library for the subsequent budget year, the public library's
maximum permissible ad valorem property tax levy must be
calculated as if the formula under this subsection had not been
applied for the affected budget year.
(g) If the appropriate fiscal body fails to complete the requirements
of subsection (e) before the adoption deadline in section 5 of this
chapter for any public library subject to this section, the most recent
annual appropriations and annual tax levy of the city, town, or county,
whichever applies, are continued for the ensuing budget year. when
calculating the maximum ad valorem property tax levy under
IC 6-1.1-18.5-3(a) for the city, town, or county for the ensuing
budget year, instead of multiplying the maximum levy growth
quotient determined under IC 6-1.1-18.5-2(b) or IC 6-1.1-18.5-2(e)
(as applicable) for the year by the city's, town's, or county's
maximum permissible ad valorem property tax levy for the
preceding calendar year as prescribed in STEP TWO of
IC 6-1.1-18.5-3(a), for purposes of STEP TWO of
IC 6-1.1-18.5-3(a), the city's, town's, or county's maximum
permissible ad valorem property tax levy for the preceding
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calendar year must instead be multiplied by the result of the
following:
STEP ONE: Determine:
(A) the result of STEP FOUR of IC 6-1.1-18.5-2(b) or
STEP FIVE of IC 6-1.1-18.5-2(e) (as applicable); minus
(B) one (1).
STEP TWO: Multiply:
(A) the STEP ONE result; by
(B) eight-tenths (0.8).
STEP THREE: Add one (1) to the STEP TWO result.
However, if the city, town, or county files the information as
required in subsection (e) for the budget year immediately
following the budget year for which the formula under this
subsection is applied, when calculating the maximum ad valorem
property tax levy under IC 6-1.1-18.5-3(a) for the city, town, or
county for the subsequent budget year, the unit's maximum
permissible ad valorem property tax levy must be calculated as if
the formula under this subsection had not been applied for the
affected budget year.
SECTION 45. IC 6-1.1-18.5-31 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 31. (a) This section applies
only to counties that contain at least four (4) municipalities each
with a population greater than forty thousand (40,000), as
determined by the most recent federal decennial census.
(b) As used in this section, "maximum levy to assessed value
comparison" refers to the maximum property tax levy to property
assessed value comparison determined under subsection (e).
(c) As used in this section, "municipality" means a city or town.
(d) As used in this section, "qualifying municipality" means a
municipality that meets the condition set forth in subsection (f).
(e) The department of local government finance shall, before
August 1, determine a maximum property tax levy to property
assessed value comparison for all municipalities statewide using the
following formula:
STEP ONE: For each municipality, determine the
municipality's maximum permissible ad valorem property tax
levy for taxes first due and payable in 2024.
STEP TWO: For each municipality, determine the total
property assessed value of the municipality, as certified by the
county auditor, for taxes first due and payable in 2024.
STEP THREE: For each municipality, determine the quotient
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of:
(A) STEP ONE; divided by
(B) STEP TWO;
expressed as a percentage.
(f) This section applies only to a municipality in which for taxes
first due and payable in 2025, the municipality has a maximum
levy to assessed value comparison that is in the lowest twentieth
percentile of municipalities under STEP THREE of subsection (e)
when compared to all municipalities statewide.
(g) If this section applies, the executive of a qualifying
municipality may, not later than July 1, 2025, and after receiving
approval by the legislative body, submit a petition to the
department of local government finance to increase the maximum
permissible ad valorem property tax levy of a qualifying
municipality under this subsection. If a petition is submitted under
this subsection, the department of local government finance shall
increase the maximum permissible ad valorem property tax levy
of the qualifying municipality for property taxes first due and
payable in 2025 to include all debt service levies of the qualifying
municipality for property taxes first due and payable in 2025.
(h) An adjustment under this section is a one (1) time and
permanent increase. The qualifying municipality's ad valorem
property tax levy for property taxes first due and payable in 2025,
as adjusted under this section, shall be used in the determination
of the qualifying municipality's maximum permissible ad valorem
property tax levy under this chapter for property taxes first due
and payable in 2026 and thereafter.
(i) Notwithstanding STEP ONE of section 3(a) of this chapter,
for purposes of determining a qualifying municipality's maximum
permissible ad valorem property tax levy for property taxes first
due and payable in 2026, the amount determined in STEP ONE of
section 3(a) of this chapter shall be the result determined in STEP
TWO of the following calculation:
STEP ONE: Determine a qualifying municipality's maximum
permissible ad valorem property tax levy for property taxes
first due and payable in 2025 without regard to the
adjustment under this section.
STEP TWO: Determine the sum of:
(A) STEP ONE; plus
(B) the amount of the adjustment under this section.
This calculation only applies to determining a qualifying
municipality's maximum ad valorem property tax levy for
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property taxes first due and payable in 2026 and not to a
determination for any other tax year.
(j) This section expires June 30, 2030.
SECTION 46. IC 6-1.1-18.5-31.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 31.5. (a) This section applies
only to Shelby County.
(b) The executive of the county may, after approval by the fiscal
body of the county, submit a petition to the department of local
government finance requesting an increase in the county's
maximum permissible ad valorem property tax levy for property
taxes first due and payable in 2026. A petition must be submitted
not later than September 1, 2025.
(c) If the executive of the county submits a petition under
subsection (b), the department of local government finance shall
increase the county's maximum permissible ad valorem property
tax levy for property taxes first due and payable in 2026. The
amount of the increase under this section is equal to the difference
between:
(1) the lesser of:
(A) the county's maximum permissible ad valorem
property tax levy for property taxes first due and payable
in 2025; or
(B) the ad valorem property tax levy adopted by the county
fiscal body for property taxes first due and payable in
2025; and
(2) the county's ad valorem property tax levy as certified by
the department of local government finance for property
taxes first due and payable in 2025.
(d) The adjustment under this section is a temporary, one (1)
time increase to the county's maximum permissible ad valorem
property tax levy for purposes of this chapter.
(e) This section expires June 30, 2028.
SECTION 47. IC 6-1.1-18.5-32 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 32. (a) This section applies
only to the Shelby County solid waste management district.
(b) The board of directors of the solid waste management
district may, upon approval by the county executive, submit a
petition to the department of local government finance for an
increase in the solid waste management district's maximum
permissible ad valorem property tax levy for property taxes due
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and payable in 2026. A petition must be submitted not later than
September 1, 2025.
(c) If a petition is submitted under subsection (b), the
department of local government finance shall increase the solid
waste management district's maximum permissible ad valorem
property tax levy for property taxes due and payable in 2026. The
amount of the increase under this section is equal to the difference
between:
(1) the lesser of:
(A) the solid waste management district's maximum
permissible ad valorem property tax levy for property
taxes first due and payable in 2025; or
(B) the ad valorem property tax levy adopted for the solid
waste management district by the county fiscal body for
property taxes first due and payable in 2025; and
(2) the solid waste management district's ad valorem property
tax levy as certified by the department of local government
finance for property taxes first due and payable in 2025.
(d) The adjustment under this section is a temporary, one (1)
time increase to the solid waste management district's maximum
permissible ad valorem property tax levy.
(e) This section expires June 30, 2028.
SECTION 48. IC 6-1.1-22-8.1, AS AMENDED BY P.L.159-2020,
SECTION 44, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 8.1. (a) The county treasurer shall:
(1) except as provided in subsection (h), mail to the last known
address of each person liable, as described in subsection (o), 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; and
(2) transmit by written, electronic, or other means to a mortgagee
maintaining an escrow account for a person who is liable for any
property taxes or special assessments, as shown on the tax
duplicate or special assessment records;
a statement in the form required under subsection (b).
(b) The department of local government finance shall prescribe a
form, subject to the approval of the state board of accounts, for the
statement under subsection (a) that includes at least the following:
(1) A statement of the taxpayer's current and delinquent taxes and
special assessments.
(2) A breakdown showing the total property tax and special
assessment liability and the amount of the taxpayer's liability that
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will be distributed to each taxing unit in the county.
(3) An itemized listing for each property tax levy, including:
(A) the amount of the tax rate;
(B) the entity levying the tax owed; and
(C) the dollar amount of the tax owed.
(4) Information designed to show the manner in which the taxes
and special assessments billed in the tax statement are to be used.
(5) Information regarding how a taxpayer can obtain information
regarding the taxpayer's notice of assessment or reassessment
under IC 6-1.1-4-22.
(6) A comparison showing any change in the assessed valuation
for the property as compared to the previous year.
(7) A comparison showing any change in the property tax and
special assessment liability for the property as compared to the
previous year. The information required under this subdivision
must identify:
(A) the amount of the taxpayer's liability distributable to each
taxing unit in which the property is located in the current year
and in the previous year; and
(B) the percentage change, if any, in the amount of the
taxpayer's liability distributable to each taxing unit in which
the property is located from the previous year to the current
year.
(8) An explanation of the following:
(A) Homestead credits under IC 6-1.1-20.4, IC 6-3.6-5, or
another law that are available in the taxing district where the
property is located.
(B) All property tax deductions that are available in the taxing
district where the property is located.
(C) The procedure and deadline for filing for any available
homestead credits under IC 6-1.1-20.4, IC 6-3.6-5, or another
law and each deduction.
(D) The procedure that a taxpayer must follow to:
(i) appeal a current assessment; or
(ii) petition for the correction of an error related to the
taxpayer's property tax and special assessment liability.
(E) The forms that must be filed for an appeal or a petition
described in clause (D).
(F) The procedure and deadline that a taxpayer must follow
and the forms that must be used if a credit or deduction has
been granted for the property and the taxpayer is no longer
eligible for the credit or deduction.
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(G) Notice that an appeal described in clause (D) requires
evidence relevant to the true tax value of the taxpayer's
property as of the assessment date that is the basis for the taxes
payable on that property.
The department of local government finance shall provide the
explanation required by this subdivision to each county treasurer.
(9) A checklist that shows:
(A) homestead credits under IC 6-1.1-20.4, IC 6-3.6-5, or
another law and all property tax deductions; and
(B) whether each homestead credit and property tax deduction
applies in the current statement for the property transmitted
under subsection (a).
(10) A remittance coupon indicating the payment amounts due at
each payment due date and other information determined by the
department of local government finance.
(c) The county treasurer shall mail or transmit the statement one (1)
time each year on or before April 15. Whenever a person's tax liability
for a year is due in one (1) installment under IC 6-1.1-7-7 or section 9
of this chapter, a statement that is mailed must include the date on
which the installment is due and denote the amount of money to be
paid for the installment. Whenever a person's tax liability is due in two
(2) installments, a statement that is mailed must contain the dates on
which the first and second installments are due and denote the amount
of money to be paid for each installment. If a statement is returned to
the county treasurer as undeliverable and the forwarding order is
expired, the county treasurer shall notify the county auditor of this fact.
Upon receipt of the county treasurer's notice, the county auditor may,
at the county auditor's discretion, treat the property as not being eligible
for any deductions under IC 6-1.1-12 or any homestead credits under
IC 6-1.1-20.4 and IC 6-3.6-5.
(d) All payments of property taxes and special assessments shall be
made to the county treasurer. The county treasurer, when authorized by
the board of county commissioners, may open temporary offices for the
collection of taxes in cities and towns in the county other than the
county seat.
(e) The county treasurer, county auditor, and county assessor shall
cooperate to generate the information to be included in the statement
under subsection (b).
(f) The information to be included in the statement under subsection
(b) must be simply and clearly presented and understandable to the
average individual.
(g) After December 31, 2007, a reference in a law or rule to
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IC 6-1.1-22-8 (expired January 1, 2008, and repealed) shall be treated
as a reference to this section.
(h) Transmission of statements and other information under this
subsection applies in a county only if the county legislative body adopts
an authorizing ordinance. Subject to subsection (i), in a county in
which an ordinance is adopted under this subsection for property taxes
and special assessments, a person may, in any manner permitted by
subsection (n), direct the county treasurer and county auditor to
transmit the following to the person by electronic mail:
(1) A statement that would otherwise be sent by the county
treasurer to the person by regular mail under subsection (a)(1),
including a statement that reflects installment payment due dates
under section 9.5 or 9.7 of this chapter.
(2) A provisional tax statement that would otherwise be sent by
the county treasurer to the person by regular mail under
IC 6-1.1-22.5-6.
(3) A reconciling tax statement that would otherwise be sent by
the county treasurer to the person by regular mail under any of the
following:
(A) Section 9 of this chapter.
(B) Section 9.7 of this chapter.
(C) IC 6-1.1-22.5-12, including a statement that reflects
installment payment due dates under IC 6-1.1-22.5-18.5.
(4) Any other information that:
(A) concerns the property taxes or special assessments; and
(B) would otherwise be sent:
(i) by the county treasurer or the county auditor to the person
by regular mail; and
(ii) before the last date the property taxes or special
assessments may be paid without becoming delinquent.
The information listed in this subsection may be transmitted to a person
by using electronic mail that provides a secure Internet link to the
information.
(i) For property with respect to which more than one (1) person is
liable for property taxes and special assessments, subsection (h) applies
only if all the persons liable for property taxes and special assessments
designate the electronic mail address for only one (1) individual
authorized to receive the statements and other information referred to
in subsection (h).
(j) The department of local government finance shall create a form
to be used to implement subsection (h). The county treasurer and
county auditor shall:
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(1) make the form created under this subsection available to the
public;
(2) transmit a statement or other information by electronic mail
under subsection (h) to a person who files, on or before March 15,
the form created under this subsection:
(A) with the county treasurer; or
(B) with the county auditor; and
(3) publicize the availability of the electronic mail option under
this subsection through appropriate media in a manner reasonably
designed to reach members of the public.
(k) The form referred to in subsection (j) must:
(1) explain that a form filed as described in subsection (j)(2)
remains in effect until the person files a replacement form to:
(A) change the person's electronic mail address; or
(B) terminate the electronic mail option under subsection (h);
and
(2) allow a person to do at least the following with respect to the
electronic mail option under subsection (h):
(A) Exercise the option.
(B) Change the person's electronic mail address.
(C) Terminate the option.
(D) For a person other than an individual, designate the
electronic mail address for only one (1) individual authorized
to receive the statements and other information referred to in
subsection (h).
(E) For property with respect to which more than one (1)
person is liable for property taxes and special assessments,
designate the electronic mail address for only one (1)
individual authorized to receive the statements and other
information referred to in subsection (h).
(l) The form created under subsection (j) is considered filed with the
county treasurer or the county auditor on the postmark date or on the
date it is electronically submitted. If the postmark is missing or
illegible, the postmark is considered to be one (1) day before the date
of receipt of the form by the county treasurer or the county auditor.
(m) The county treasurer shall maintain a record that shows at least
the following:
(1) Each person to whom a statement or other information is
transmitted by electronic mail under this section.
(2) The information included in the statement.
(3) Whether the county treasurer received a notice that the
person's electronic mail was undeliverable.
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(n) A person may direct the county treasurer and county auditor to
transmit information by electronic mail under subsection (h) on a form
prescribed by the department submitted:
(1) in person;
(2) by mail; or
(3) in an online format developed by the county and approved by
the department.
(o) Liability, for purposes of subsection (a), means property
taxes or special assessments that are greater than zero dollars ($0).
(p) The county treasurer is not required to mail or transmit a
statement for property that is exempt from taxation and does not
have a reported assessed value.
SECTION 49. IC 6-1.1-22-8.1, AS AMENDED BY HEA
1427-2025, SECTION 48, AND AS AMENDED BY SEA 1-2025,
SECTION 76, IS CORRECTED AND AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2026]: Sec. 8.1. (a) The county
treasurer shall:
(1) except as provided in subsection (h), mail to the last known
address of each person liable, as described in subsection (o), 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; and
(2) transmit by written, electronic, or other means to a mortgagee
maintaining an escrow account for a person who is liable for any
property taxes or special assessments, as shown on the tax
duplicate or special assessment records;
a statement in the form required under subsection (b).
(b) The department of local government finance shall prescribe a
form, subject to the approval of the state board of accounts, for the
statement under subsection (a) that includes at least the following:
(1) A statement of the taxpayer's current and delinquent taxes and
special assessments.
(2) A breakdown showing the total property tax and special
assessment liability and the amount of the taxpayer's liability that
will be distributed to each taxing unit in the county.
(3) An itemized listing for each property tax levy, including:
(A) the amount of the tax rate;
(B) the entity levying the tax owed; and
(C) the dollar amount of the tax owed.
(4) Information designed to show the manner in which the taxes
and special assessments billed in the tax statement are to be used.
(5) Information regarding how a taxpayer can obtain information
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regarding the taxpayer's notice of assessment or reassessment
under IC 6-1.1-4-22.
(6) A comparison showing any change in the assessed valuation
for the property as compared to the previous year.
(7) A comparison showing any change in the property tax and
special assessment liability for the property as compared to the
previous year. The information required under this subdivision
must identify:
(A) the amount of the taxpayer's liability distributable to each
taxing unit in which the property is located in the current year
and in the previous year; and
(B) the percentage change, if any, in the amount of the
taxpayer's liability distributable to each taxing unit in which
the property is located from the previous year to the current
year.
(8) An explanation of the following:
(A) Homestead credits under IC 6-1.1-20.4, IC 6-3.6-5 (before
its expiration), or another law that are available in the taxing
district where the property is located.
(B) All property tax deductions that are available in the taxing
district where the property is located.
(C) The procedure and deadline for filing for any available
homestead credits under IC 6-1.1-20.4, IC 6-3.6-5 (before its
expiration), or another law and each deduction.
(D) The procedure that a taxpayer must follow to:
(i) appeal a current assessment; or
(ii) petition for the correction of an error related to the
taxpayer's property tax and special assessment liability.
(E) The forms that must be filed for an appeal or a petition
described in clause (D).
(F) The procedure and deadline that a taxpayer must follow
and the forms that must be used if a credit or deduction has
been granted for the property and the taxpayer is no longer
eligible for the credit or deduction.
(G) Notice that an appeal described in clause (D) requires
evidence relevant to the true tax value of the taxpayer's
property as of the assessment date that is the basis for the taxes
payable on that property.
The department of local government finance shall provide the
explanation required by this subdivision to each county treasurer.
(9) A checklist that shows:
(A) homestead credits under IC 6-1.1-20.4, IC 6-3.6-5 (before
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its expiration), or another law and all property tax deductions;
and
(B) whether each homestead credit and property tax deduction
applies in the current statement for the property transmitted
under subsection (a).
(10) A remittance coupon indicating the payment amounts due at
each payment due date and other information determined by the
department of local government finance.
(c) The county treasurer shall mail or transmit the statement one (1)
time each year on or before April 15. Whenever a person's tax liability
for a year is due in one (1) installment under IC 6-1.1-7-7 or section 9
of this chapter, a statement that is mailed must include the date on
which the installment is due and denote the amount of money to be
paid for the installment. Whenever a person's tax liability is due in two
(2) installments, a statement that is mailed must contain the dates on
which the first and second installments are due and denote the amount
of money to be paid for each installment. If a statement is returned to
the county treasurer as undeliverable and the forwarding order is
expired, the county treasurer shall notify the county auditor of this fact.
Upon receipt of the county treasurer's notice, the county auditor may,
at the county auditor's discretion, treat the property as not being eligible
for any deductions under IC 6-1.1-12 or any homestead credits under
IC 6-1.1-20.4 and IC 6-3.6-5 (before its expiration).
(d) All payments of property taxes and special assessments shall be
made to the county treasurer. The county treasurer, when authorized by
the board of county commissioners, may open temporary offices for the
collection of taxes in cities and towns in the county other than the
county seat.
(e) The county treasurer, county auditor, and county assessor shall
cooperate to generate the information to be included in the statement
under subsection (b).
(f) The information to be included in the statement under subsection
(b) must be simply and clearly presented and understandable to the
average individual.
(g) After December 31, 2007, a reference in a law or rule to
IC 6-1.1-22-8 (expired January 1, 2008, and repealed) shall be treated
as a reference to this section.
(h) Transmission of statements and other information under this
subsection applies in a county only if the county legislative body adopts
an authorizing ordinance. Subject to subsection (i), in a county in
which an ordinance is adopted under this subsection for property taxes
and special assessments, a person may, in any manner permitted by
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subsection (n), direct the county treasurer and county auditor to
transmit the following to the person by electronic mail:
(1) A statement that would otherwise be sent by the county
treasurer to the person by regular mail under subsection (a)(1),
including a statement that reflects installment payment due dates
under section 9.5 or 9.7 of this chapter.
(2) A provisional tax statement that would otherwise be sent by
the county treasurer to the person by regular mail under
IC 6-1.1-22.5-6.
(3) A reconciling tax statement that would otherwise be sent by
the county treasurer to the person by regular mail under any of the
following:
(A) Section 9 of this chapter.
(B) Section 9.7 of this chapter.
(C) IC 6-1.1-22.5-12, including a statement that reflects
installment payment due dates under IC 6-1.1-22.5-18.5.
(4) Any other information that:
(A) concerns the property taxes or special assessments; and
(B) would otherwise be sent:
(i) by the county treasurer or the county auditor to the person
by regular mail; and
(ii) before the last date the property taxes or special
assessments may be paid without becoming delinquent.
The information listed in this subsection may be transmitted to a person
by using electronic mail that provides a secure Internet link to the
information.
(i) For property with respect to which more than one (1) person is
liable for property taxes and special assessments, subsection (h) applies
only if all the persons liable for property taxes and special assessments
designate the electronic mail address for only one (1) individual
authorized to receive the statements and other information referred to
in subsection (h).
(j) The department of local government finance shall create a form
to be used to implement subsection (h). The county treasurer and
county auditor shall:
(1) make the form created under this subsection available to the
public;
(2) transmit a statement or other information by electronic mail
under subsection (h) to a person who files, on or before March 15,
the form created under this subsection:
(A) with the county treasurer; or
(B) with the county auditor; and
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(3) publicize the availability of the electronic mail option under
this subsection through appropriate media in a manner reasonably
designed to reach members of the public.
(k) The form referred to in subsection (j) must:
(1) explain that a form filed as described in subsection (j)(2)
remains in effect until the person files a replacement form to:
(A) change the person's electronic mail address; or
(B) terminate the electronic mail option under subsection (h);
and
(2) allow a person to do at least the following with respect to the
electronic mail option under subsection (h):
(A) Exercise the option.
(B) Change the person's electronic mail address.
(C) Terminate the option.
(D) For a person other than an individual, designate the
electronic mail address for only one (1) individual authorized
to receive the statements and other information referred to in
subsection (h).
(E) For property with respect to which more than one (1)
person is liable for property taxes and special assessments,
designate the electronic mail address for only one (1)
individual authorized to receive the statements and other
information referred to in subsection (h).
(l) The form created under subsection (j) is considered filed with the
county treasurer or the county auditor on the postmark date or on the
date it is electronically submitted. If the postmark is missing or
illegible, the postmark is considered to be one (1) day before the date
of receipt of the form by the county treasurer or the county auditor.
(m) The county treasurer shall maintain a record that shows at least
the following:
(1) Each person to whom a statement or other information is
transmitted by electronic mail under this section.
(2) The information included in the statement.
(3) Whether the county treasurer received a notice that the
person's electronic mail was undeliverable.
(n) A person may direct the county treasurer and county auditor to
transmit information by electronic mail under subsection (h) on a form
prescribed by the department submitted:
(1) in person;
(2) by mail; or
(3) in an online format developed by the county and approved by
the department.
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(o) Liability, for purposes of subsection (a), means property taxes
or special assessments that are greater than zero dollars ($0).
(p) The county treasurer is not required to mail or transmit a
statement for property that is exempt from taxation and does not have
a reported assessed value.
SECTION 50. IC 6-1.1-22-19 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: 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 available to certain eligible
taxpayers:
(1) The deduction for a veteran with a partial disability under
IC 6-1.1-12-13.
(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
under IC 6-1.1-51.3-1.
SECTION 51. IC 6-1.1-24-0.9 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 0.9. A tract or item of real
property that a political subdivision owns may not be sold at a tax
sale conducted under this chapter.
SECTION 52. IC 6-1.1-24-17.5, AS AMENDED BY P.L.159-2023,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 17.5. (a) This section does not apply to real
property:
(1) used as a principal place of residence and receiving a
homestead standard deduction under IC 6-1.1-12-37 for the most
recent assessment date; or
(2) for which a set off has been obtained under IC 6-8.1-9.5
against the delinquent debt owed on the real property.
This subsection includes any real property adjacent to and under the
same ownership as the homestead real property described in
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subdivision (1).
(b) This section applies only to real property that has been offered
for sale by the county at two (2) or more public tax sales held under
this chapter.
(c) For purposes of this section, "county executive" refers to:
(1) in a county containing a consolidated city, the board of
commissioners as provided in IC 36-3-3-10; and
(2) in all other counties, the board of commissioners.
(d) For purposes of this section, "eligible nonprofit entity" means an
organization exempt from federal income tax under 26 U.S.C.
501(c)(3) that is either:
(1) an entity that:
(A) acquires real property to stabilize and provide future home
ownership opportunities to those who would not otherwise be
financially capable of purchasing a home;
(B) has the organizational capacity and community experience
necessary to successfully undertake community development
projects;
(C) has been organized and in operation for at least five (5)
years; and
(D) has each year of the immediately preceding two (2) years,
rehabilitated and transferred at least one (1) single family
dwelling to a low or moderate income household for use as a
residence; or
(2) a community development corporation (as defined in
IC 4-4-28-2).
(e) For purposes of this section, "low or moderate income
household" means a household having an income equal to or less than
the Section 8 low income limit established by the United States
Department of Housing and Urban Development.
(f) A county treasurer may, as a separate part of a regularly
scheduled sale conducted under section 5 of this chapter, offer for sale
a tract or item of real property, subject to the right of redemption, to an
eligible nonprofit entity for purposes of a project for the development
of low or moderate income housing, using either:
(1) the sale process under section 5 of this chapter; or
(2) a procedure developed and implemented by resolution of the
county executive that conforms in all material respects to the
procedures under section 5 of this chapter.
(g) Not more than five percent (5%) of the number of parcels listed
for sale under section 5 of this chapter may be made available for sale
to eligible nonprofit entities under subsection (f). However, an eligible
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nonprofit entity may acquire not more than ten (10) parcels made
available for sale under subsection (f).
(h) To participate in a sale under subsection (f), an eligible nonprofit
entity must file, not later than forty-five (45) days prior to the
advertised date of the sale under section 5 of this chapter:
(1) an application to the county executive, signed by an officer or
member of the eligible nonprofit entity, that includes:
(A) the address or parcel number of the tract or item of real
property the entity desires to acquire;
(B) the intended use of the tract or item of real property;
(C) the time period anticipated for implementation of the
intended use; and
(D) any additional information required by the county
executive and communicated to potential applicants in
advance that demonstrates the entity meets the definition of an
eligible nonprofit entity under subsection (d); and
(2) documentation verifying:
(A) the entity's federal tax exempt status; and
(B) the entity's good standing in Indiana as determined by the
secretary of state.
(i) If an eligible nonprofit entity takes possession of a tax sale
certificate under this section, the eligible nonprofit entity acquires the
same rights and obligations as a purchaser under section 6.1 of this
chapter. However, if an eligible nonprofit entity obtains a tax deed after
the expiration of the redemption period specified under IC 6-1.1-25, the
eligible nonprofit entity shall first offer an occupant of the parcel the
opportunity to purchase the parcel.
(j) If an eligible nonprofit entity uses a tract or item of real property
obtained under this section for a purpose other than the development
of low or moderate income housing, the tract or item of real property
is subject to forfeiture.
(k) Before January 1, 2023, and before each January 1 thereafter, the
county executive shall provide an annual report to the legislative
council in an electronic format under IC 5-14-6 concerning the tax sale
program established by this section.
SECTION 53. IC 6-1.1-28-1, AS AMENDED BY SEA 187-2025,
SECTION 3, AND AS AMENDED BY THE TECHNICAL
CORRECTIONS BILL OF THE 2025 GENERAL ASSEMBLY, IS
AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]:
Sec. 1. (a) This section applies only to a county that is not participating
in a multiple county property tax assessment board of appeals.
(b) Each county shall have a county property tax assessment board
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of appeals. Each member of the county property tax assessment board
of appeals must meet all of the following requirements:
(1) Be a resident of Indiana during the member's entire term. If a
person ceases to be a resident of Indiana, the person may not
continue to serve as a member.
(2) Be at least eighteen (18) years of age.
(3) Be knowledgeable in the valuation of property.
At the election of the board of commissioners of the county, a county
property tax assessment board of appeals may consist of three (3) or
five (5) members appointed in accordance with this section.
(c) This subsection applies to a county in which the board of
commissioners elects to have a five (5) member county property tax
assessment board of appeals. In addition to the county assessor, only
one (1) other individual who is an officer or employee of a county or
township may serve on the board of appeals in the county in which the
individual is an officer or employee. Subject to subsections (h) and (i),
the fiscal body of the county shall appoint two (2) individuals to the
board. At least one (1) of the members appointed by the county fiscal
body must be a certified level two or level three assessor-appraiser. The
fiscal body may waive the requirement in this subsection that one (1)
of the members appointed by the fiscal body must be a certified level
two or level three assessor-appraiser. Subject to subsections (h) and (i),
the board of commissioners of the county shall appoint three (3)
freehold members so that not more than three (3) of the five (5)
members may be of the same political party and so that at least three
(3) of the five (5) members are residents of the county. At least one (1)
of the members appointed by the board of county commissioners must
be a certified level two or level three assessor-appraiser. The board of
county commissioners may waive the requirement in this subsection
that one (1) of the freehold members appointed by the board of county
commissioners must be a certified level two or level three
assessor-appraiser.
(d) This subsection applies to a county in which the board of
commissioners elects to have a three (3) member county property tax
assessment board of appeals. In addition to the county assessor, only
one (1) other individual who is an officer or employee of a county or
township may serve on the board of appeals in the county in which the
individual is an officer or employee. Subject to subsections (h) and (i),
the fiscal body of the county shall appoint one (1) individual to the
board. The member appointed by the county fiscal body must be a
certified level two or level three assessor-appraiser. The fiscal body
may waive the requirement in this subsection that the member
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appointed by the fiscal body must be a certified level two or level three
assessor-appraiser. Subject to subsections (e) and (f), the board of
commissioners of the county shall appoint two (2) freehold members
so that not more than two (2) of the three (3) members may be of the
same political party and so that at least two (2) of the three (3)
members are residents of the county. At least one (1) of the members
appointed by the board of county commissioners must be a certified
level two or level three assessor-appraiser. The board of county
commissioners may waive the requirement in this subsection that one
(1) of the freehold members appointed by the board of county
commissioners must be a certified level two or level three
assessor-appraiser.
(e) A person appointed to a property tax assessment board of
appeals may serve on the property tax assessment board of appeals of
another county at the same time. The members of the board shall elect
a president. The employees of the county assessor shall provide
administrative support to the property tax assessment board of appeals.
The county assessor is a nonvoting member of the property tax
assessment board of appeals. The county assessor shall serve as
secretary of the board. The secretary shall keep full and accurate
minutes of the proceedings of the board. A majority of the board
constitutes a quorum for the transaction of business. Any question
properly before the board may be decided by the agreement of a
majority of the whole board.
(f) The county assessor, county fiscal body, and board of county
commissioners may agree to waive the requirement in subsection (c)
or (d) that not more than three (3) of the five (5) or two (2) of the three
(3) members of the county property tax assessment board of appeals
may be of the same political party if it is necessary to waive the
requirement due to the absence of certified level two or level three
Indiana assessor-appraisers:
(1) who are willing to serve on the board; and
(2) whose political party membership status would satisfy the
requirement in subsection (c) or (d).
(g) If the board of county commissioners is not able to identify at
least two (2) prospective freehold members of the county property tax
assessment board of appeals who are:
(1) residents of the county;
(2) certified level two or level three Indiana assessor-appraisers;
and
(3) willing to serve on the county property tax assessment board
of appeals;
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it is not necessary that at least three (3) of the five (5) or two (2) of the
three (3) members of the county property tax assessment board of
appeals be residents of the county.
(h) Except as provided in subsection (i), the term of a member of the
county property tax assessment board of appeals appointed under either
subsection (c) or (d) shall:
(1) be staggered so that the appointment of a majority of the board
does not expire in any single year; and
(2) last two (2) years; and
(2) (3) begin January 1.
(i) If:
(1) the term of a member of the county property tax assessment
board of appeals appointed under this section expires;
(2) the member is not reappointed; and
(3) a successor is not appointed;
the term of the member continues until a successor is appointed.
(j) An:
(1) employee of the township assessor or county assessor; or
(2) appraiser, as defined in IC 6-1.1-31.7-1;
may not serve as a voting member of a county property tax assessment
board of appeals in a county where the employee or appraiser is
employed.
(k) Notwithstanding subsections (h) and (i), the term of an
individual serving as a member of a county property tax assessment
board of appeals on June 30, 2025, who is not a resident of Indiana,
expires July 1, 2025. The county fiscal body or board of county
commissioners, whichever applies, that appointed the individual whose
term expires shall appoint a member to serve the remainder of the
individual's unexpired term.
SECTION 54. IC 6-1.1-30-18, AS ADDED BY P.L.236-2023,
SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 18. (a) Before March 1, 2024, and before March
1 of every year thereafter, each local unit that imposes a food and
beverage tax under IC 6-9 shall provide a report to the state board of
accounts that includes:
(1) a consolidated financial statement that at a minimum
contains total collections, total expenditures, the beginning
year fund balance, and the end of year fund balance;
(1) (2) every expenditure of funds by the local unit;
(2) (3) each local governmental entity, or instrumentality of a
local governmental entity, that received a distribution; and
(3) (4) every expenditure of funds by each local governmental
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entity described in subdivision (2); (3);
from amounts received from the food and beverage tax imposed by the
local unit during the previous calendar year.
(b) The report required under subsection (a) must include for each
check, expenditure, distribution, or payment:
(1) the date and amount of the check, expenditure, distribution, or
payment;
(2) the payee or recipient;
(3) the specific purpose, including whether the check,
expenditure, distribution, or payment was for an employee salary
or a capital project; and
(4) if applicable, a description of the project for which the check,
expenditure, distribution, or payment was made; and
(5) a consolidated financial statement for the previous
calendar year that at a minimum contains total collections,
total expenditures, the beginning year fund balance, and the
end of year fund balance.
(c) The report required under subsection (a) must be in a format and
on a form prescribed by the state board of accounts.
(d) The state board of accounts shall post a report received under
subsection (a) on the department of local government finance's
computer gateway.
(e) The requirements under subsection (a) do not apply to taxes
collected under:
(1) IC 6-9-12 that are distributed to the capital improvement
board of managers created by IC 36-10-9-3;
(2) IC 6-9-35 that are distributed to the capital improvement
board of managers created by IC 36-10-9-3; and
(3) IC 6-9-33 that are distributed to the capital improvement
board of managers created by IC 36-10-8.
SECTION 55. IC 6-1.1-30-18.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 18.5. (a) The state board of
accounts shall, for each local unit that imposes a food and beverage
tax under IC 6-9 and is subject to the reporting requirement in
section 18(a) of this chapter, determine the following:
(1) Whether or not the local unit has provided a report to the
state board of accounts as required under section 18(a) of this
chapter before March 1, 2025.
(2) Whether or not:
(A) the local unit; and
(B) each local governmental entity, or instrumentality of a
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local governmental entity, that receives a distribution of
food and beverage tax revenue;
is or has been making expenditures of the food and beverage
tax revenue in compliance with the applicable statutory
requirements under IC 6-9 and according to the report
submitted under section 18(a) of this chapter, if a report has
been submitted.
(b) If the state board of accounts concludes that a local unit has
not provided a report as required under section 18(a) of this
chapter, the state board of accounts shall make a finding of
noncompliance by the local unit based on that fact.
(c) If the state board of accounts concludes that a local unit,
local governmental entity, or instrumentality of a local
governmental entity has not complied with the applicable statutory
requirements under IC 6-9 for the expenditure of the food and
beverage tax revenue or has failed to make the expenditures
contained in the report under section 18(a) of this chapter, the state
board of accounts shall make a finding of noncompliance by the
local unit, local governmental entity, or instrumentality of a local
governmental entity (as applicable), based on that fact.
(d) The state board of accounts shall compile and submit a
report containing all of its conclusions and findings under this
section to the legislative council, in an electronic format under
IC 5-14-6, before October 1, 2025.
SECTION 56. IC 6-1.1-37-4, AS AMENDED BY SEA 1-2025,
SECTION 81, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (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 or IC 6-1.1-12-14 (before their
expiration), when the person is not entitled to the deduction, commits
a Class B misdemeanor.
SECTION 57. IC 6-1.1-37-10, AS AMENDED BY P.L.95-2021,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 10. (a) If property taxes due and payable are not
completely paid on or before the due date, a penalty shall be added to
the unpaid portion in the year of the initial delinquency. The penalty is
equal to an amount determined as follows:
(1) If:
(A) subject to subsection (g), the real property taxes due and
payable are completely paid on or before the date thirty (30)
days after the due date; and
(B) the taxpayer is not liable for:
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(i) delinquent property taxes first due and payable in a
previous tax payment for the same parcel; or
(ii) a penalty that is owed from a previous tax payment for
the same parcel;
the amount of the penalty is equal to five percent (5%) of the
amount of delinquent taxes.
(2) If:
(A) subject to subsection (g), personal property taxes due and
payable are not completely paid on or before the date thirty
(30) days after the due date; and
(B) the taxpayer is not liable for:
(i) delinquent property taxes first due and payable in a
previous tax payment for a personal property tax return for
property in the same taxing district; or
(ii) a penalty that is owed from a previous tax payment;
the amount of the penalty is equal to five percent (5%) of the
amount of delinquent taxes.
(3) If subdivision (1) or (2) does not apply, the amount of the
penalty is equal to ten percent (10%) of the amount due and
payable as of the tax date.
A payment received under this subsection shall be applied first to the
delinquent tax amount and then to any associated penalties.
(b) With respect to property taxes due in two (2) equal installments
under IC 6-1.1-22-9(a), on the day immediately following the due dates
of the first and second installments in each year following the year of
the initial delinquency, an additional penalty equal to ten percent (10%)
of any taxes remaining unpaid shall be added. With respect to property
taxes due in installments under IC 6-1.1-22-9.5, an additional penalty
equal to ten percent (10%) of any taxes remaining unpaid shall be
added on the day immediately following each date that succeeds the
last installment due date by:
(1) six (6) months; or
(2) a multiple of six (6) months.
(c) The penalties under subsection (b) are imposed only on the
principal amount of the delinquent taxes.
(d) If the department of local government finance determines that
an emergency has occurred which precludes the mailing of the tax
statement in any county at the time set forth in IC 6-1.1-22-8.1, the
department shall establish by order a new date on which the installment
of taxes in that county is due and no installment is delinquent if paid by
the date so established.
(e) If any due date falls on a Saturday, a Sunday, a national legal
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holiday recognized by the federal government, or a statewide holiday,
the act that must be performed by that date is timely if performed by
the next succeeding day that is not a Saturday, a Sunday, or one (1) of
those holidays.
(f) Subject to subsections (h) and (i), a payment to the county
treasurer is considered to have been paid by the due date if the payment
is:
(1) received on or before the due date by the county treasurer or
a collecting agent appointed by the county treasurer;
(2) deposited in United States first class mail:
(A) properly addressed to the principal office of the county
treasurer;
(B) with sufficient postage; and
(C) postmarked by the United States Postal Service as mailed
on or before the due date;
(3) deposited with a nationally recognized express parcel carrier
and is:
(A) properly addressed to the principal office of the county
treasurer; and
(B) verified by the express parcel carrier as:
(i) paid in full for final delivery; and
(ii) received by the express parcel carrier on or before the
due date;
(4) deposited to be mailed through United States registered mail,
United States certified mail, or United States certificate of
mailing:
(A) properly addressed to the principal office of the county
treasurer;
(B) with sufficient postage; and
(C) with a date of registration, certification, or certificate, as
evidenced by any record authenticated by the United States
Postal Service, on or before the due date;
(5) deposited in United States first class mail:
(A) properly addressed to the principal office of the county
treasurer;
(B) with sufficient metered postage from a meter postage
provider approved by the United States Postal Service; and
(C) with a postage meter stamp affixed to the envelope that
must bear the actual date the postage meter stamp was affixed
to the envelope, which must be on or before the due date;
and the payment is received by the county treasurer not later than
five (5) business days after the due date; or
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(6) made by an electronic funds transfer and the taxpayer's bank
account is charged on or before the due date; or
(7) made by a check processing company without:
(A) a postmark; or
(B) another method of verification;
allowed under subdivisions (1) through (6) but for which the
taxpayer provides the county treasurer with reasonable
evidence that the payment was made for the taxpayer on or
before the due date.
For purposes of subdivision (7), reasonable evidence includes a
statement from a ledger of payments maintained by the check
processing company showing the date the payment was made for
the taxpayer.
(g) As used in this subsection, "initial penalty period" means the
period after the due date and not later than thirty (30) days after the due
date. A person who makes a payment within the initial penalty period
is subject to a penalty equal to five percent (5%) of the amount of the
delinquent taxes as provided in subsection (a)(1) or (a)(2). A payment
to the county treasurer is considered to have been paid within the initial
penalty period and subject to the five percent (5%) penalty if the
payment is:
(1) received within the penalty period by the county treasurer or
a collecting agent appointed by the county treasurer;
(2) deposited in United States first class mail:
(A) properly addressed to the principal office of the county
treasurer;
(B) with sufficient postage; and
(C) postmarked by the United States Postal Service as mailed
on or before the thirtieth day after the due date;
(3) deposited with a nationally recognized express parcel carrier
and is:
(A) properly addressed to the principal office of the county
treasurer; and
(B) verified by the express parcel carrier as:
(i) paid in full for final delivery; and
(ii) received by the express parcel carrier on or before the
thirtieth day after the due date;
(4) deposited to be mailed through United States registered mail,
United States certified mail, or United States certificate of
mailing:
(A) properly addressed to the principal office of the county
treasurer;
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(B) with sufficient postage; and
(C) with a date of registration, certification, or certificate, as
evidenced by any record authenticated by the United States
Postal Service, on or before the thirtieth day after the due date;
or
(5) deposited in United States first class mail:
(A) properly addressed to the principal office of the county
treasurer;
(B) with sufficient metered postage from a meter postage
provider approved by the United States Postal Service; and
(C) with a postage meter stamp affixed to the envelope that
must bear the actual date the postage meter stamp was affixed
to the envelope, which must be on or before the thirtieth day
after the due date;
and the payment is received by the county treasurer not later than
five (5) business days after the thirtieth day after the due date.
(h) As used in this subsection, "initial penalty period" has the
meaning set forth in subsection (g). If a payment is mailed through the
United States mail and is physically received after the due date or after
the initial penalty period without a legible correct postmark, the person
who mailed the payment is considered to have made the payment:
(1) on or before the due date if the person can show by reasonable
evidence that the payment was deposited in the United States mail
on or before the due date; or
(2) within the initial penalty period, if the person can show by
reasonable evidence that the payment was deposited in the United
States mail on or before the thirtieth day after the due date.
(i) As used in this subsection, "initial penalty period" has the
meaning set forth in subsection (g). This section applies if a payment
is sent via the United States mail or a nationally recognized express
parcel carrier but is not received by the designated recipient, the person
who sent the payment is considered to have made the payment:
(1) on or before the due date if the person:
(A) can show by reasonable evidence that the payment was
deposited in the United States mail, or with the express parcel
carrier, on or before the due date; and
(B) makes a duplicate payment within thirty (30) days after the
date the person is notified that the payment was not received;
or
(2) within the initial penalty period, if the person:
(A) can show by reasonable evidence that the payment was
deposited in the United States mail, or with the express parcel
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carrier, on or before the thirtieth day after the due date; and
(B) makes a duplicate payment within thirty (30) days after the
date the person is notified that the payment was not received.
SECTION 58. IC 6-1.1-50.1 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]:
Chapter 50.1. Credit for Community Land Trust Property
Sec. 1. The credit provided by this chapter applies to assessment
dates occurring after December 31, 2025.
Sec. 2. As used in this chapter, "net property tax" means
liability for the tax imposed on property under this article
determined after the application of all credits and deductions
under this article but does not include any interest or penalty
imposed under this article.
Sec. 3. As used in this chapter, "qualified owner" has the
meaning set forth in IC 6-1.1-4-47(g).
Sec. 4. A qualified owner whose property is assessed under
IC 6-1.1-4-47 is entitled to a credit in an amount equal to thirty
percent (30%) of the qualified owner's net property tax due.
Sec. 5. The department of local government finance shall
prescribe a form on which a qualified owner may claim the credit
provided under this chapter.
SECTION 59. IC 6-1.1-51 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2019 (RETROACTIVE)]:
Chapter 51. Deduction for Aircraft
Sec. 1. This chapter applies only to the following:
(1) Aircraft that:
(A) have a seating capacity of not more than ninety (90)
passengers;
(B) are used in the air transportation of passengers or
passengers and property; and
(C) are owned or operated by a person that is:
(i) an air carrier certificated under Federal Air
Regulation Part 121; or
(ii) a scheduled air taxi operator certified under Federal
Air Regulation Part 135.
(2) Aircraft that:
(A) are used to transport only property, regardless of
whether the aircraft is operated as a common carrier for
compensation; and
(B) are owned or operated by a person that is:
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(i) an air carrier certificated under Federal Air
Regulation Part 121; or
(ii) a scheduled air taxi operator certified under Federal
Air Regulation Part 135.
Sec. 2. As used in this chapter, "abatement property" refers to
aircraft described in section 1 of this chapter.
Sec. 3. As used in this chapter, "aircraft" has the meaning set
forth in 49 U.S.C. 40102.
Sec. 4. As used in this chapter, "air transportation" means
transportation of passengers or property by aircraft as a common
carrier for compensation.
Sec. 5. As used in this chapter, "business entity" refers to a
corporation (as defined in IC 6-3-1-10) or partnership (as defined
in IC 6-3-1-19).
Sec. 6. As used in this chapter, "Indiana corporate
headquarters" means a physical presence in Indiana of a domestic
business entity that results in Indiana being the regular or
principal place of business of its chief executive, operating, and
financial officers.
Sec. 7. As used in this chapter, "subsidiary" means a business
entity in which another business entity with an Indiana corporate
headquarters has at least an eighty percent (80%) ownership
interest.
Sec. 8. As used in this chapter, "taxpayer" means a business
entity that:
(1) has an Indiana corporate headquarters; or
(2) is a subsidiary of a business entity with an Indiana
corporate headquarters;
and that is liable under IC 6-1.1-2-4, as applied under IC 6-1.1-3
or IC 6-1.1-8, for ad valorem property taxes on abatement
property.
Sec. 9. A taxpayer is entitled to a deduction from the assessed
value of abatement property in each year in which the abatement
property is subject to taxation for ad valorem property taxes.
Sec. 10. The amount of the deduction is equal to one hundred
percent (100%) of the assessed value of the abatement property.
Sec. 11. The deduction includes ad valorem property taxes
calculated using aircraft ground times.
Sec. 12. To qualify for the deduction, the taxpayer must claim
the deduction, in the manner prescribed by the department of local
government finance, on the taxpayer's personal property tax
return filed under IC 6-1.1-3 or IC 6-1.1-8 (or an amended return
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filed within the time allowed under this article) for the abated
property to which the deduction applies.
Sec. 13. (a) Notwithstanding any other law, a taxpayer may file
an amended return claiming the deduction under this chapter for
taxable years 2019 through 2024 during which the chapter
previously providing the deduction under this chapter was
repealed.
(b) If a taxpayer files an amended return under this section, a
county auditor may carry a deduction to which the taxpayer is
entitled forward to the immediately succeeding year or years, as
applicable, and use the deduction against the taxpayer's property
taxes on personal property.
(c) The deduction is reduced each time the deduction amount is
applied to the taxpayer's property taxes on personal property in
succeeding years by the amount applied.
SECTION 60. IC 6-1.1-51.3-2, AS ADDED BY SEA 1-2025,
SECTION 84, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]: Sec. 2. (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 blind or the individual has a disability;
(2) the real property, mobile home, or manufactured home is
principally used and occupied by the individual as the individual's
residence; and
(3) 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 one hundred twenty-five
dollars ($125).
(c) For purposes of this section, "blind" has the same meaning as the
definition contained in IC 12-7-2-21(1).
(d) For purposes of this section, "individual with a disability" means
a person unable to engage in any substantial gainful activity by reason
of a medically determinable physical or mental impairment which:
(1) can be expected to result in death; or
(2) has lasted or can be expected to last for a continuous period of
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not less than twelve (12) months.
(e) An individual with a disability filing a claim under this section
shall submit proof of the disability. Proof that a claimant is eligible to
receive disability benefits under the federal Social Security Act (42
U.S.C. 301 et seq.) shall constitute proof of disability for purposes of
this section.
(f) An individual with a disability not covered under the federal
Social Security Act shall be examined by a physician and the
individual's status as an individual with a disability determined by
using the same standards as used by the Social Security Administration.
The costs of this examination shall be borne by the claimant.
(g) An individual who receives the credit provided by this section
may not receive the credit provided by IC 6-1.1-20.6-8.5. However, the
individual may receive any other property tax credit that the individual
is entitled to by law.
(h) (g) 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 credit provided under
this section against that real property, mobile home, or manufactured
home.
(i) (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 61. IC 6-1.1-51.3-3, AS ADDED BY SEA 1-2025,
SECTION 84, IS REPEALED [EFFECTIVE JANUARY 1, 2025
(RETROACTIVE)]. Sec. 3. (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:
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(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 of age 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
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 one hundred fifty dollars
($150).
(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 not receive the credit provided by section 1 of this chapter.
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However, the individual 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 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 62. IC 6-1.1-51.3-4, AS ADDED BY SEA 1-2025,
SECTION 84, IS REPEALED [EFFECTIVE JANUARY 1, 2025
(RETROACTIVE)]. Sec. 4. (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 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
credit under this section; and
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(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 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 not receive the credit provided by section 1 of this chapter.
However, the individual 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 notify the auditor of the county in
which the homestead is located of the individual's ineligibility not later
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than sixty (60) days after the individual becomes ineligible.
SECTION 63. IC 6-1.5-5-2, AS AMENDED BY P.L.146-2008,
SECTION 308, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 2. (a) After receiving a petition for
review that is filed under a statute listed in section 1(a) of this chapter,
the Indiana board shall, at its earliest opportunity:
(1) conduct a hearing; or
(2) cause a hearing to be conducted by an administrative law
judge.
The Indiana board may determine to conduct the hearing under
subdivision (1) on its own motion or on request of a party to the appeal.
(b) In its resolution of a petition, the Indiana board may correct any
errors that may have been made and adjust the assessment in
accordance with the correction.
(c) The Indiana board shall give notice of the date fixed for the
hearing by mail to:
(1) the taxpayer;
(2) the department of local government finance; and
(3) the appropriate:
(A) township assessor (if any);
(B) county assessor; and
(C) county auditor.
(d) With respect to an appeal of the assessment of real property or
personal property filed after June 30, 2005, the notices required under
subsection (c) must include the following:
(1) The action of the department of local government finance with
respect to the appealed items.
(2) A statement that a taxing unit receiving the notice from the
county auditor under subsection (e) may:
(A) attend the hearing;
(B) offer testimony; and
(C) file an amicus curiae brief in the proceeding.
(e) If, after receiving notice of a hearing under subsection (c), the
county auditor determines that the assessed value of the appealed items
constitutes at least one percent (1%) of the total gross certified assessed
value of a particular taxing unit for the assessment date immediately
preceding the assessment date for which the appeal was filed, the
county auditor shall send a copy of the notice to the affected taxing
unit. A taxing unit that receives a notice from the county auditor under
this subsection is not a party to the appeal. Failure of the county auditor
to send a copy of the notice to the affected taxing unit does not affect
the validity of the appeal or delay the appeal.
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(f) The Indiana board shall give the notices required under
subsection (c) at least thirty (30) days before the day fixed for the
hearing.
SECTION 64. IC 6-1.5-5-5, AS AMENDED BY P.L.146-2008,
SECTION 309, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 5. After the hearing, the Indiana
board shall give the petitioner, the township assessor (if any), the
county assessor, the county auditor, and the department of local
government finance:
(1) notice by mail, of its final determination, findings of fact, and
conclusions of law; and
(2) notice of the procedures the petitioner or the department of
local government finance must follow in order to obtain court
review of the final determination of the Indiana board.
The county auditor shall provide copies of the documents described in
subdivisions (1) and (2) to the taxing units entitled to notice under
section 2(e) of this chapter.
SECTION 65. IC 6-2.5-5-58 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2025]: Sec. 58. (a) The following definitions apply throughout
this section:
(1) "Agricultural commodity" means:
(A) dairy products, pork products, beef products, poultry
products, and products from other livestock; and
(B) crops;
that are raised and harvested to provide food and food
ingredients. The term includes items described in section
20(c)(1), 20(c)(3), 20(c)(4), 20(c)(5), and 20(c)(6) of this
chapter.
(2) "Agricultural commodity trade association" means:
(A) an agricultural or horticultural organization exempt
from federal income taxation under Section 501(c)(5) of
the Internal Revenue Code; or
(B) an organization exempt from federal income taxation
under Section 501(c)(6) of the Internal Revenue Code as a
business league for agricultural commodity or
horticultural interests.
(b) Sales of agricultural commodities by an agricultural
commodity trade association are exempt from the state gross retail
tax if:
(1) the transaction is conducted at the state fair; and
(2) the transaction is conducted to make money to carry on
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the agricultural commodity trade association's nonprofit
purpose.
(c) To obtain the exemption provided by this section, an
agricultural commodity trade association must:
(1) be registered as a retail merchant under IC 6-2.5-8-1; or
(2) establish that the agricultural commodity trade association
is not required to be registered as a retail merchant under this
article;
at the time of the transaction.
SECTION 66. IC 6-3-1-41 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2026]: Sec. 41. The term "investment partnership"
means a partnership for federal income tax purposes that meets
the following requirements:
(1) Not less than ninety percent (90%) of the partnership's
cost of its total assets consists of qualifying investment
securities, deposits at banks or other financial institutions,
and office space and equipment reasonably necessary to carry
on its activities as an investment partnership.
(2) Not less than ninety percent (90%) of the partnership's
gross income consists of interest, dividends, gains from the
sale or exchange of qualifying investment securities, and the
distributive share of partnership income from lower-tier
partnership interests meeting the definition of qualifying
investment security. For purposes of this subdivision, gross
income does not include income from partnerships that are
operating at a federal taxable loss. For purposes of this
subdivision, a partnership shall be treated as meeting the
percentage test set forth in this subdivision if the partnership
met the percentage test in three (3) of the five (5) most recent
taxable years, including the current taxable year.
(3) The partnership is not a dealer in qualifying investment
securities.
SECTION 67. IC 6-3-1-42 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2026]: Sec. 42. The term "qualifying investment
securities" means the following:
(1) Common stock, including preferred or debt securities
convertible into common stock, and preferred stock.
(2) Bonds, debentures, and other debt securities.
(3) Foreign and domestic currency deposits secured by
federal, state, or local governmental agencies.
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(4) Mortgage or asset-backed securities secured by federal,
state, or local governmental agencies.
(5) Repurchase agreements and loan participations.
(6) Foreign currency exchange contracts and forward and
futures contracts on foreign currencies.
(7) Stock and bond index securities and futures contracts and
other similar financial securities and futures contracts on
those securities.
(8) Options for the purchase or sale of any of the securities,
currencies, contracts, or financial instruments described in
subdivisions (1) through (7).
(9) Regulated futures contracts.
(10) Commodities (not described in Section 1221(a)(1) of the
Internal Revenue Code) or futures, forwards, and options
with respect to such commodities, provided, however, that any
item of a physical commodity to which title is actually
acquired in the partnership's capacity as a dealer in such
commodity shall not be a qualifying investment security.
(11) Derivatives.
(12) A partnership interest in another partnership that is an
investment partnership.
(13) A partnership interest that, in the hands of the
partnership, qualifies as a security within the meaning of 15
U.S.C. 77b(a)(1).
SECTION 68. IC 6-3-1-43 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2026]: Sec. 43. The term "qualifying investment
partnership income" means the adjusted gross income from
qualifying investment securities, excluding any income or loss from
an asset described in section 42(13) of this chapter.
SECTION 69. IC 6-3-2-3.3 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2026]: Sec. 3.3. (a) As used in this section,
"nonresident partner" has the meaning set forth in IC 6-3-4-12(n).
(b) For all taxable years beginning after December 31, 2025, in
the case of an investment partnership:
(1) any qualifying investment partnership income that is
distributable to a nonresident partner shall be allocated to the
partner's state of residence (in the case of an individual,
estate, or trust) or commercial domicile (in the case of any
corporation or other entity) for purposes of section 2 of this
chapter; and
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(2) any qualifying investment partnership income that is
distributable to a nonresident partner shall be treated as
business income and apportioned as if such income had been
received directly by the partner if such income is from
investment activity:
(A) that is directly or integrally related to any other
business activity conducted in this state by the nonresident
partner (or another corporation or entity that is unitary
with the partner);
(B) that serves an operational function to any other
business activity of the nonresident partner (or another
corporation or entity that is unitary with the partner); or
(C) where assets of the investment partnership were
acquired with working capital from a trade or business
activity conducted in this state in which the nonresident
partner (or another corporation or entity that is unitary
with the partner) owns an interest.
(c) For purposes of this section, the following apply:
(1) If an entity is permitted to allocate qualifying investment
partnership income under subsection (b)(1), the entity shall
exclude the receipts derived from the investment partnership
and attributable to the investment partnership income from
the denominator of the sales factor in section 2(e) of this
chapter.
(2) If an entity is required to treat qualifying investment
partnership income as apportionable income, the entity's
share of receipts from the investment partnership and
attributable to the investment partnership shall be included
in the denominator of the sales factor and attributed to the
entity's state of domicile for purposes of section 2(e) of this
chapter.
(3) For purposes of subsection (b)(2), a corporation or other
entity shall be treated as unitary with the partner if the
partner and the corporation or other entity would be required
to be included in a combined income tax return under this
article, determined as if all relevant entities are subject to tax
under this article as corporations and are not corporations
described in section 2.4 of this chapter. However, in the case
of a partner and a corporate partnership, a unitary
relationship shall be determined without regard to the
corporate partner's percentage of ownership of the
partnership.
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(4) Nothing in this section shall affect the apportionment and
allocation of income and receipts derived from partnerships
other than qualified investment partnership income from
investment partnerships.
(5) If a nonresident person, corporation, or other entity
reasonably determines that it received qualified investment
partnership income from an investment partnership and the
partnership is determined to not be an investment
partnership, the person, corporation, or entity shall be
relieved of any penalty under IC 6-3-4-4.1, IC 6-5.5-7-1, or
IC 6-8.1-10-2.1(b) resulting from the underpayment.
SECTION 70. IC 6-3-2.1-4, AS AMENDED BY P.L.118-2024,
SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]: Sec. 4. (a) A tax shall be
imposed on the adjusted gross income of an electing entity for the
taxable year of the election. The adjusted gross income of the electing
entity shall be the aggregate of the direct owners' share of the electing
entity's adjusted gross income. For purposes of this section:
(1) the electing entity shall determine each nonresident direct
owner's share after allocation and apportionment pursuant to
IC 6-3-2-2; and
(2) the electing entity shall determine the resident direct owner's
share either:
(A) before allocation and apportionment pursuant to
IC 6-3-2-2; or
(B) after allocation and apportionment pursuant to IC 6-3-2-2.
The electing entity must use the same method for all resident
direct owners.
(b) The tax rate shall be the tax rate specified in IC 6-3-2-1(a)
(before July 1, 2025) or IC 6-3-2-1(b) (after June 30, 2025) as of the
last day of the electing entity's taxable year, and the tax shall be due on
the same date as the entity return for the taxable year is due under this
article, without regard to extensions.
(c) On its return for the taxable year, the electing entity shall attach
a schedule showing the calculation of the tax and the credit for each
direct owner, and remit the tax with the return, taking into account
prior estimated tax payments and other tax payments by the electing
entity, along with other payments that are credited to the electing entity
as tax paid under this chapter or as tax withheld under IC 6-3-4 or
IC 6-5.5-2-8. The department may prescribe the form for providing the
information required by this section.
(d) If a pass through entity makes estimated tax payments, makes
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other tax payments, or has other payments that are credited to the
electing entity as tax paid under this chapter or a tax withheld under
IC 6-3-4 or IC 6-5.5-2-8, and the pass through entity does not make the
election under section 3 of this chapter, the pass through entity:
(1) may treat pass through entity tax remitted on its behalf under
this chapter as pass through entity tax to its direct owners,
provided that:
(A) the tax is designated on a schedule similar to the schedule
required under subsection (c) and is reported to the direct
owners in the manner provided in section 5 of this chapter; and
(B) the pass through entity credits an amount to a direct owner
no greater than the tax that otherwise would be due under this
chapter on their share of the adjusted gross income from the
pass through entity or the direct owner's portion (as
determined under subsection (a)) of the pass through entity tax
passed through to the pass through entity, whichever is greater
(for purposes of this clause, a trust or estate shall compute the
tax in the same manner as an electing entity);
(2) shall treat any payment other than a payment designated under
subdivision (1) as a withholding tax payment under IC 6-3-4-12,
IC 6-3-4-13, IC 6-3-4-15, or IC 6-5.5-2-8 to the extent the pass
through entity otherwise has not remitted or been credited with
such withholding; and
(3) may request a refund of any payment in excess of the amounts
credited or designated under subdivision (1) or (2).
(e) If a pass through entity elects to be subject to tax under this
chapter and the pass through entity determines that its tax is less than
the pass through entity tax that is paid on its behalf, the pass through
entity may treat the tax paid on its behalf in a manner similar to
subsection (d). However, the pass through entity may not treat an
amount less than its own liability under this chapter as pass through
entity tax under subsection (d)(1).
SECTION 71. IC 6-3-2.1-5, AS ADDED BY P.L.1-2023, SECTION
5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY
1, 2025 (RETROACTIVE)]: Sec. 5. (a) Each electing entity shall
compute each direct owner's share of the tax imposed by section 4 of
this chapter and reflect that amount in the form and manner prescribed
by the department.
(b) Each entity owner shall be entitled to a refundable credit in an
amount equal to the amount of tax under this chapter credited to the
entity owner.
(c) All other credits arising from the operations of the electing
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entity, or which are passed through to or assigned to the electing entity,
shall pass through to the entity owners as provided in this article or
IC 6-3.1 and shall not apply to the tax imposed in section 4 of this
chapter. All such other credits shall apply before the application of the
pass through entity tax credit. This subsection also applies to pass
through entities that pass the tax under this chapter through to their
owners. However, this subsection shall not limit the ability of an
electing entity or pass through entity to claim credit for taxes withheld
or paid on the entity's behalf.
(c) An electing entity or pass through entity shall be permitted
to claim a credit for taxes withheld or paid on the entity's behalf.
(d) An electing entity that has direct owners that would be
permitted to claim a credit under IC 6-3-3-3 for taxes paid to
another state with regard to a taxable year may elect to claim a
credit under this chapter for:
(1) an amount equal to the income of a resident direct owner
attributable to a state other than Indiana multiplied by the
rate imposed by IC 6-3-2-1(a) (before July 1, 2025) or
IC 6-3-2-1(b) (after June 30, 2025) or maximum individual
income tax rate imposed by that other state, whichever rate is
less, if:
(A) the electing entity makes an election to tax resident
direct owners in the manner prescribed in section
4(a)(2)(A) of this chapter; and
(B) the other state grants a credit to the Indiana residents
substantially similar to the credit as provided under
IC 6-3-3-3; and
(2) an amount equal to the income attributable to Indiana
multiplied by the rate imposed by IC 6-3-2-1(a) (before July
1, 2025) or IC 6-3-2-1(b) (after June 30, 2025) or the
maximum individual income tax rate by the nonresident
direct owner's state of residence, whichever rate is less, if the
nonresident direct owner would be permitted a credit under
IC 6-3-3-3(b) for the income attributable to Indiana and
derived from the electing entity.
(e) An electing entity may elect to claim a credit for any credit
under IC 6-3-3 or IC 6-3.1, other than the credits under
subsections (b) through (d), and arising from the operations of the
electing entity, or which are passed through to or assigned to the
electing entity for the taxable year. For purposes of this subsection,
the following apply:
(1) The credit must be allowable to pass through to the direct
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owners of the electing entity under the provisions of the
credit.
(2) The credit must be first allowable to the direct owners of
the pass through entity in a taxable year ending on or after
the taxable year of the electing entity.
(3) The amount of the credit that the entity may claim against
the tax attributable to any direct owner under subsection (a)
may not exceed the credit that is available to be passed
through to the direct owner.
(f) For purposes of subsections (d) and (e), the following apply:
(1) The elections under subsections (d) and (e) are separate
elections to which the following apply:
(A) An election under subsection (e) applies to all credits
other than the credits described in subsections (b) through
(d). No allowance for an election to apply to one (1) or
more credits and to not apply to one (1) or more credits is
permitted.
(B) The election to claim the credits under subsections (d)
and (e) must be made on the original return filed by the
electing entity. A failure to claim a credit shall be treated
as if the credit was not allowable to the electing entity.
(C) An election to apply a credit applies to the tax for all
direct owners of the electing entity, provided that an
election under subsection (d) applies only to direct owners
that are individuals, estates, or trusts.
(2) If an electing entity claims credits under both subsections
(d) and (e), the electing entity shall apply the credit under
subsection (d) first, then any amount allowable under
subsection (e).
(3) The sum of the credits attributable to a direct owner of an
electing entity shall not exceed the tax computed by the
electing entity for the direct owner under this chapter.
(4) A provision under IC 6-3-3 or IC 6-3.1 requiring a credit
to be passed through shall not prevent an electing entity from
applying the credit against the tax imposed under this
chapter.
(5) An entity owner shall be permitted to claim any credit
otherwise allowable to the owner to the extent otherwise
permitted by IC 6-3-3 or IC 6-3.1.
SECTION 72. IC 6-3.1-40-3 IS REPEALED [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]. Sec. 3. As used in this
chapter, "primary care physician" refers to a physician practicing in one
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(1) or more of the following:
(1) Family medicine.
(2) General pediatric medicine.
(3) General internal medicine.
(4) The general practice of medicine.
SECTION 73. IC 6-3.1-40-5, AS ADDED BY P.L.203-2023,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]: Sec. 5. As used in this
chapter, "taxpayer" means an individual who:
(1) is a physician practicing as a primary care physician; engaged
in the practice of medicine;
(2) has an ownership interest in a corporation, limited liability
company, partnership, or other legal entity organized to provide
primary health care services as a physician owned entity;
(3) is not employed by a health system (as defined in
IC 16-18-2-168.5); and
(4) has any state income tax liability.
SECTION 74. IC 6-3.1-40-6, AS ADDED BY P.L.203-2023,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]: Sec. 6. If a taxpayer:
(1) has an ownership interest in a physician owned medical
practice described in section 5(2) of this chapter that:
(1) (A) is established as a legal entity under Indiana law after
December 31, 2023;
(2) (B) opens and begins to provide primary health care
services to patients in a particular taxable calendar year
beginning after December 31, 2023; and
(3) (C) has billed for health care services described in
subdivision (2) for at least six (6) months of that taxable a
calendar year;
(2) has an ownership interest in the income of the physician
owned medical practice that is at least:
(A) for a physician owned medical practice with not more
than ten (10) owners, five percent (5%) of the physician
owned medical practice's income; and
(B) for a physician owned medical practice with more than
ten (10) owners, fifty percent (50%) of the physician owned
medical practice's income divided by the number of
physicians who own an interest in the physician owned
medical practice; and
(3) provided health care services in the physician owned
medical practice for at least six (6) months of a calendar year;
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the taxpayer may, subject to section sections 7 and 9.5 of this chapter,
claim a credit against the taxpayer's state income tax liability. Subject
to section sections 8 and 11 of this chapter, the amount of the credit
allowed under this chapter for a taxpayer in the particular taxable
calendar year is twenty thousand dollars ($20,000).
SECTION 75. IC 6-3.1-40-7, AS ADDED BY P.L.203-2023,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]: Sec. 7. A taxpayer may claim
a tax credit under this chapter for the a taxable year described in
section 6 of this chapter and the two (2) immediately following taxable
years.
SECTION 76. IC 6-3.1-40-9 IS REPEALED [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]. Sec. 9. To obtain a credit
under this chapter, a taxpayer must claim the credit on the taxpayer's
annual state income tax return in the manner prescribed by the
department. The taxpayer shall submit to the department all
information that the department determines is necessary to verify the
taxpayer's eligibility for the credit provided by this chapter.
SECTION 77. IC 6-3.1-40-9.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2025 (RETROACTIVE)]: Sec. 9.5. (a) To
receive a credit under this chapter:
(1) the physician owned medical practice must apply for the
department's approval of the tax credit for its owners for a
calendar year in the manner prescribed by the department
after June 30 of that calendar year, but not later than June 30
of the subsequent calendar year;
(2) the physician owned medical practice must submit with
the application a certified list of each of the physicians who
has an ownership interest in the legal entity described in
section 6 of this chapter and any additional information that
the department determines is necessary for the calculation of
the credit under this chapter;
(3) the taxpayer must attach proof of the department's
approval of the tax credit to the taxpayer's state tax return or
returns; and
(4) the taxpayer must claim the approved tax credit on the
taxpayer's state tax return or returns in the manner
prescribed by the department.
(b) The department shall record the time of filing of each
application for the department's approval of a tax credit and shall,
except as provided in subsection (c), approve granting the credit to
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the taxpayer, if the taxpayer otherwise qualifies for a credit under
this chapter, in the chronological order in which the application for
the department's approval is filed in the year.
(c) If the total credits approved under this section equal the
maximum amount allowable in the year, the department may not
approve an application for the credit filed later in that year.
SECTION 78. IC 6-3.1-40-11 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2025 (RETROACTIVE)]: Sec. 11. (a)
Subject to subsection (b), the total amount of tax credits awarded
under this chapter may not exceed ten million dollars ($10,000,000)
in the state fiscal year beginning July 1, 2025, and ending June 30,
2026, and in each state fiscal year thereafter.
(b) For a taxable year beginning after December 31, 2024, and
before January 1, 2026, only that part of a taxpayer's tax credit
that is attributable to the period of time beginning after June 30,
2025, and before January 1, 2026, is subject to the maximum
amount provided in subsection (a).
SECTION 79. IC 6-3.1-40-12 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2025 (RETROACTIVE)]: Sec. 12. The
department, on a website used by the department to provide
information to the public, shall provide the following information:
(1) The application for the credit provided in this chapter.
(2) A timeline for receiving the credit provided in this chapter.
(3) The total amount of credits awarded under this chapter
during the current state fiscal year.
SECTION 80. IC 6-3.6-6-8, AS AMENDED BY P.L.101-2024,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 8. (a) This section applies to the allocation of
additional revenue from a tax under this chapter to public safety
purposes. Funding dedicated for a PSAP under a former tax continues
to apply under this chapter until it is rescinded or modified. If funding
was not dedicated for a PSAP under a former tax, the adopting body
may adopt a resolution providing that all or part of the additional
revenue allocated to public safety is to be dedicated for a PSAP. The
resolution first applies in the following year and then thereafter until it
is rescinded or modified. Funding dedicated for a PSAP shall be
allocated and distributed as provided in IC 6-3.6-11-4.
(b) Except as provided in subsections (c) and (d), the amount of the
certified distribution that is allocated to public safety purposes, and
after making allocations under IC 6-3.6-11, shall be allocated to the
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county and to each municipality in the county that is carrying out or
providing at least one (1) public safety purpose. For purposes of this
subsection, in the case of a consolidated city, the total property taxes
imposed by the consolidated city include the property taxes imposed by
the consolidated city and all special taxing districts (except for a public
library district, a public transportation corporation, and a health and
hospital corporation), and all special service districts. The amount
allocated under this subsection to a county or municipality is equal to
the result of:
(1) the amount of the remaining certified distribution that is
allocated to public safety purposes; multiplied by
(2) a fraction equal to:
(A) in the case of a county that initially imposed a rate for
public safety under IC 6-3.5-6 (repealed), the result of the total
property taxes imposed in the county by the county or
municipality for the calendar year preceding the distribution
year, divided by the sum of the total property taxes imposed in
the county by the county and each municipality in the county
that is entitled to a distribution under this section for that
calendar year; or
(B) in the case of a county that initially imposed a rate for
public safety under IC 6-3.5-1.1 (repealed) or a county that did
not impose a rate for public safety under either IC 6-3.5-1.1
(repealed) or IC 6-3.5-6 (repealed), the result of the attributed
allocation amount of the county or municipality for the
calendar year preceding the distribution year, divided by the
sum of the attributed allocation amounts of the county and
each municipality in the county that is entitled to a distribution
under this section for that calendar year.
(c) A fire department, volunteer fire department, or emergency
medical services provider that:
(1) provides fire protection or emergency medical services within
the county; and
(2) is operated by or serves a political subdivision that is not
otherwise entitled to receive a distribution of tax revenue under
this section;
may, before July 1 of a year, apply to the adopting body for a
distribution of tax revenue under this section during the following
calendar year. The adopting body shall review an application submitted
under this subsection. However, after giving notice under IC 5-3-1, the
adopting body shall review an application by a township that provided
fire protection or emergency medical services in the most recent
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calendar year and imposed a property tax levy for the provision of fire
protection or emergency medical services within the county in the most
recent calendar year at a public hearing. The adopting body may review
multiple applications submitted under this subsection at one (1) public
hearing. If applicable, a township shall present and explain its
application at the public hearing. Not later than ten (10) days after the
public hearing, if applicable, but before September 1 of a year, the
adopting body may adopt a resolution requiring that one (1) or more of
the applicants shall receive a specified amount of the tax revenue to be
distributed under this section during the following calendar year. The
adopting body shall provide a copy of the resolution to the county
auditor and the department of local government finance not more than
fifteen (15) days after the resolution is adopted. A resolution adopted
under this subsection and provided in a timely manner to the county
auditor and the department applies only to distributions in the
following calendar year. Any amount of tax revenue distributed under
this subsection to a fire department, volunteer fire department, or
emergency medical services provider shall be distributed before the
remainder of the tax revenue is allocated under subsection (b).
(d) A township fire department, volunteer fire department, fire
protection territory, or fire protection district that:
(1) provides fire protection or emergency medical services within
a county; and
(2) is operated by or serves a political subdivision;
may, before July 1 of a year, apply to the adopting body for a
distribution of tax revenue under this section during the following
calendar year. The adopting body shall review an application submitted
under this subsection. However, after giving notice under IC 5-3-1, the
adopting body shall review an application submitted by a township that
provided fire protection or emergency medical services in the most
recent calendar year and that imposed a property tax levy for the
provision of fire protection or emergency medical services within the
county in the most recent calendar year at a public hearing. The
adopting body may review multiple applications submitted under this
subsection at one (1) public hearing. If applicable, a township shall
present and explain its application at the public hearing. From the
amount of the certified distribution that is allocated to public safety
purposes, and after making allocations under IC 6-3.6-11, the adopting
body may adopt a resolution that one (1) or more township fire
departments, volunteer fire departments, fire protection territories, or
fire protection districts shall receive an amount of the tax revenue to be
distributed under this section during the following calendar year up to
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one hundred percent (100%) of the revenue collected from that portion
of the tax rate imposed for allocations for public safety purposes that
does not exceed a rate of five one-hundredths of one percent (0.05%).
A resolution adopted under this subsection must include information
on the service area for each township fire department, volunteer fire
department, fire protection territory, or fire protection district, as
applicable. Any distribution under this subsection must be based on the
assessed value of real property, not including land, that is served by
each township fire department, volunteer fire department, fire
protection territory, or fire protection district, as applicable. The
adopting body shall provide a copy of the resolution to the county
auditor and the department of local government finance not more than
fifteen (15) days after the resolution is adopted. A resolution adopted
under this subsection and provided in a timely manner to the county
auditor and the department applies only to distributions in the
following calendar year. Any amount of tax revenue distributed under
this subsection to a township fire department, volunteer fire
department, fire protection territory, or fire protection district, as
applicable, shall be distributed before the remainder of the tax revenue
is allocated under subsection (b). In the case of a volunteer fire
department, the application under this subsection must be made to
the adopting body by the fiscal officer of the unit served by the
volunteer fire department.
SECTION 81. IC 6-3.6-6-8, AS AMENDED BY HEA 1427-2025,
SECTION 80, AND AS AMENDED BY SEA 1-2025, SECTION 130,
IS CORRECTED AND AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2027]: Sec. 8. (a) This section applies to the
allocation of additional revenue from a tax under this chapter to public
safety purposes. Funding dedicated for a PSAP under a former tax
continues to apply under this chapter until it is rescinded or modified.
If funding was not dedicated for a PSAP under a former tax, the
adopting body may adopt a resolution providing that all or part of the
additional revenue allocated to public safety is to be dedicated for a
PSAP. The resolution first applies in the following year and then
thereafter until it is rescinded or modified. Funding dedicated for a
PSAP shall be allocated and distributed as provided in IC 6-3.6-11-4.
(b) Except as provided in subsections (c) and (d), the amount of the
certified distribution that is allocated to public safety purposes, and
after making allocations under IC 6-3.6-11, shall be allocated to the
county and to each municipality in the county that is carrying out or
providing at least one (1) public safety purpose. For purposes of this
subsection, in the case of a consolidated city, the total property taxes
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imposed by the consolidated city include the property taxes imposed
by the consolidated city and all special taxing districts (except for a
public library district, a public transportation corporation, and a
health and hospital corporation), and all special service districts. The
amount allocated under this subsection to a county or municipality is
equal to the result of:
(1) the amount of the remaining certified distribution that is
allocated to public safety purposes; multiplied by
(2) a fraction equal to:
(A) in the case of a county that initially imposed a rate for
public safety under IC 6-3.5-6 (repealed), the result of the
total property taxes imposed in the county by the county or
municipality for the calendar year preceding the distribution
year, divided by the sum of the total property taxes imposed in
the county by the county and each municipality in the county
that is entitled to a distribution under this section for that
calendar year; or
(B) in the case of a county that initially imposed a rate for
public safety under IC 6-3.5-1.1 (repealed) or a county that
did not impose a rate for public safety under either
IC 6-3.5-1.1 (repealed) or IC 6-3.5-6 (repealed), the result of
the attributed allocation amount of the county or municipality
for the calendar year preceding the distribution year, divided
by the sum of the attributed allocation amounts of the county
and each municipality in the county that is entitled to a
distribution under this section for that calendar year.
(c) (a) A fire department, volunteer fire department, or emergency
medical services provider that:
(1) provides fire protection or emergency medical services within
the county; and
(2) is operated by or serves a political subdivision that is not
otherwise entitled to receive a distribution of tax revenue under
this section;
may, before July 1 of a year, apply to the adopting body for a
distribution of tax revenue under this section 4.3 of this chapter during
the following calendar year. The adopting body shall review an
application submitted under this subsection. However, after giving
notice under IC 5-3-1, the adopting body shall review an application by
a township that provided fire protection or emergency medical services
in the most recent calendar year and imposed a property tax levy for the
provision of fire protection or emergency medical services within the
county in the most recent calendar year at a public hearing. The
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adopting body may review multiple applications submitted under this
subsection at one (1) public hearing. If applicable, a township shall
present and explain its application at the public hearing. Not later than
ten (10) days after the public hearing, if applicable, but before
September 1 of a year, the adopting body may adopt a resolution
requiring that one (1) or more of the applicants shall receive a specified
amount of the tax revenue to be distributed under this section 4.3 of
this chapter during the following calendar year. The adopting body
shall provide a copy of the resolution to the county auditor and the
department of local government finance not more than fifteen (15) days
after the resolution is adopted. A resolution adopted under this
subsection and provided in a timely manner to the county auditor and
the department applies only to distributions in the following calendar
year. Any amount of tax revenue distributed under this subsection to a
fire department, volunteer fire department, or emergency medical
services provider shall be distributed before the remainder of the tax
revenue is allocated under subsection (b).
(d) (b) A township fire department, volunteer fire department, fire
protection territory, or fire protection district that:
(1) provides fire protection or emergency medical services within
a county; and
(2) is operated by or serves a political subdivision;
may, before July 1 of a year, apply to the adopting body for a
distribution of tax revenue under this section 4.3 of this chapter during
the following calendar year. The adopting body shall review an
application submitted under this subsection. However, after giving
notice under IC 5-3-1, the adopting body shall review an application
submitted by a township that provided fire protection or emergency
medical services in the most recent calendar year and that imposed a
property tax levy for the provision of fire protection or emergency
medical services within the county in the most recent calendar year at
a public hearing. The adopting body may review multiple applications
submitted under this subsection at one (1) public hearing. If applicable,
a township shall present and explain its application at the public
hearing. From the amount of the certified distribution that is allocated
to public safety purposes, and after making allocations under
IC 6-3.6-11, the adopting body may adopt a resolution that one (1) or
more township fire departments, volunteer fire departments, fire
protection territories, or fire protection districts shall receive an amount
of the tax revenue to be distributed under this section 4.3 of this
chapter during the following calendar year up to one hundred percent
(100%) of the revenue collected from that portion of the tax rate
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imposed for allocations for public safety purposes that does not exceed
a rate of five one-hundredths of one percent (0.05%). A resolution
adopted under this subsection must include information on the service
area for each township fire department, volunteer fire department, fire
protection territory, or fire protection district, as applicable. Any
distribution under this subsection must be based on the assessed value
of real property, not including land, that is served by each township fire
department, volunteer fire department, fire protection territory, or fire
protection district, as applicable. The adopting body shall provide a
copy of the resolution to the county auditor and the department of local
government finance not more than fifteen (15) days after the resolution
is adopted. A resolution adopted under this subsection and provided in
a timely manner to the county auditor and the department applies only
to distributions in the following calendar year. Any amount of tax
revenue distributed under this subsection to a township fire
department, volunteer fire department, fire protection territory, or fire
protection district, as applicable, shall be distributed before the
remainder of the tax revenue is allocated under subsection (b). In the
case of a volunteer fire department, the application under this
subsection must be made to the adopting body by the fiscal officer of
the unit served by the volunteer fire department.
SECTION 82. IC 6-3.6-6-12, AS AMENDED BY P.L.247-2017,
SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 12. (a) Except as provided in this chapter and
IC 6-3.6-11, this section applies to an allocation of certified shares in
all counties.
(b) The allocation amount of a civil taxing unit during a calendar
year must be based on the amounts for the calendar year preceding the
distribution year and is equal to the amount determined using the
following formula:
STEP ONE: Determine the sum of the total property taxes being
imposed by the civil taxing unit.
STEP TWO: Determine the sum of the following:
(A) Amounts appropriated from property taxes to pay the
principal of or interest on any debenture or other debt
obligation issued after June 30, 2005, other than an obligation
described in subsection (c).
(B) Amounts appropriated from property taxes to make
payments on any lease entered into after June 30, 2005, other
than a lease described in subsection (d).
STEP THREE: Subtract the STEP TWO amount from the STEP
ONE amount.
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STEP FOUR: In the case of a qualifying municipality as
defined in IC 6-1.1-18.5-31(d) that is located in a county
described in IC 6-1.1-18.5-31(a), and only for the allocation of
certified shares in 2027 and 2028, STEP THREE multiplied
by seventy percent (70%).
STEP FOUR: FIVE: Determine the sum of:
(A) the:
(i) STEP THREE amount; or
(ii) STEP FOUR amount in the case of a qualifying
municipality as defined in IC 6-1.1-18.5-31(d) that is
located in a county described in IC 6-1.1-18.5-31(a); plus
(B) the civil taxing unit's certified shares plus the amount
distributed under section 3(a)(2) of this chapter for the
previous calendar year; plus
(C) in the case of a qualifying municipality as defined in
IC 6-1.1-18.5-31(d) that is located in a county described in
IC 6-1.1-18.5-31(a), and only for the allocation of certified
shares in 2026, the amount of the levy for the
municipality's debt service and lease rental funds that was
certified in 2025 multiplied by fifty-four and five-tenths
percent (54.5%). This clause expires January 1, 2027.
The allocation amount is subject to adjustment as provided in
IC 36-8-19-7.5.
(c) Except as provided in this subsection, an appropriation for the
calendar year preceding the distribution year from property taxes to
repay interest and principal of a debt obligation is not deducted from
the allocation amount for a civil taxing unit if:
(1) the debt obligation was issued; and
(2) the proceeds were appropriated from property taxes;
to refund or otherwise refinance a debt obligation or a lease issued
before July 1, 2005. However, an appropriation from property taxes
related to a debt obligation issued after June 30, 2005, is deducted if
the debt extends payments on a debt or lease beyond the time in which
the debt or lease would have been payable if the debt or lease had not
been refinanced or increases the total amount that must be paid on a
debt or lease in excess of the amount that would have been paid if the
debt or lease had not been refinanced. The amount of the deduction is
the annual amount for each year of the extension period or the annual
amount of the increase over the amount that would have been paid.
(d) Except as provided in this subsection, an appropriation for the
calendar year preceding the distribution year from property taxes to
make payments on a lease is not deducted from the allocation amount
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for a civil taxing unit if:
(1) the lease was issued; and
(2) the proceeds were appropriated from property taxes;
to refinance a debt obligation or lease issued before July 1, 2005.
However, an appropriation from property taxes related to a lease
entered into after June 30, 2005, is deducted if the lease extends
payments on a debt or lease beyond the time in which the debt or lease
would have been payable if the debt or lease had not been refinanced
or increases the total amount that must be paid on a debt or lease in
excess of the amount that would have been paid if the debt or lease had
not been refinanced. The amount of the deduction is the annual amount
for each year of the extension period or the annual amount of the
increase over the amount that would have been paid.
SECTION 83. IC 6-3.6-7-8.5, AS ADDED BY P.L.255-2017,
SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 8.5. (a) This section applies to Fountain
County.
(b) The county council may, by ordinance, determine that additional
local income tax revenue is needed in the county to do the following:
(1) Finance, construct, acquire, improve, renovate, and equip the
county jail and related buildings and parking facilities, including
costs related to the demolition of existing buildings, the
acquisition of land, and any other reasonably related costs.
(2) Repay bonds issued or leases entered into for the purposes
described in subdivision (1).
(c) If the county council makes the determination set forth in
subsection (b), the county council may adopt an ordinance to impose
a local income tax rate of not more than fifty-five hundredths percent
(0.55%). However, the tax rate may not be greater than the rate
necessary to pay for the purposes described in subsection (b).
(d) The tax rate may be imposed only until the later of the following
dates:
(1) The date on which the financing, construction, acquisition,
improvement, renovation, and equipping of the facilities as
described in subsection (b) are completed.
(2) The date on which the last of any bonds issued (including
refunding bonds) or leases entered into to finance the
construction, acquisition, improvement, renovation, and
equipping of the facilities described in subsection (b) are fully
paid.
(e) The term of a bond issued (including any refunding bond) or a
lease entered into under subsection (b) may not exceed twenty-five (25)
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years.
(f) The county treasurer shall establish a county jail revenue fund to
be used only for the purposes described in this section. Local income
tax revenues derived from the tax rate imposed under this section shall
be deposited in the county jail revenue fund.
(g) Local income tax revenues derived from the tax rate imposed
under this section:
(1) may be used only for the purposes described in this section;
(2) may not be considered by the department of local government
finance in determining the county's maximum permissible
property tax levy limit under IC 6-1.1-18.5; and
(3) may be pledged to the repayment of bonds issued or leases
entered into for the purposes described in subsection (b).
(h) Subject to subsection (i), if the county council determines
that the county jail revenue fund established under subsection (f)
contains excess reserves, the county council may, before January
1, 2026, adopt a resolution to make a one (1) time transfer from the
county jail revenue fund to the county general fund to be used only
for emergency management services within the county. The
resolution must include the following:
(1) A determination that the county jail revenue fund contains
excess reserves and that a transfer from the county jail
revenue fund to the county general fund is necessary.
(2) The total amount of excess reserves contained in the
county jail revenue fund as of the date the determination is
made that the county jail revenue fund contains excess
reserves.
(3) The total amount to be transferred from the county jail
revenue fund to the county general fund.
(4) The date on which the transfer from the county jail
revenue fund to the county general fund will occur.
(i) Prior to adopting a resolution under subsection (h), the
county council must adopt a new ordinance under subsection (c)
that adjusts the local income tax rate to a rate that:
(1) complies with the limitations described in subsection (c);
and
(2) is not greater than the rate necessary to pay for the
expenditures incurred for the purposes described in
subsection (b).
(h) (j) Fountain County possesses unique governmental and
economic development challenges and opportunities related to:
(1) the current county jail; and
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(2) a limited industrial and commercial assessed valuation in the
county.
The use of local income tax revenues as provided in this section is
necessary for the county to provide adequate jail capacity in the county
and to maintain low property tax rates essential to economic
development. The use of local income tax revenues as provided in this
section to pay any bonds issued or leases entered into to finance the
construction, acquisition, improvement, renovation, and equipping of
the facilities described in subsection (b), rather than the use of property
taxes, promotes those purposes.
(i) (k) Money accumulated from the local income tax rate imposed
under this section after the termination of the tax under this section
shall be transferred to the county rainy day fund under IC 36-1-8-5.1.
SECTION 84. IC 6-3.6-7-21, AS ADDED BY P.L.243-2015,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]: Sec. 21. (a) This section
applies only to Starke County.
(b) Starke County possesses unique governmental and economic
development challenges due to:
(1) the county's predominantly rural geography, demography, and
economy;
(2) the county's relatively low tax base and relatively high
property tax rates;
(3) the current maximum capacity of the county jail, which was
constructed in 1976; and
(4) pending federal class action litigation seeking a mandate to
address capacity and living conditions in the county jail.
The use of a tax under this section is necessary for the county to
address jail capacity and appropriate inmate living conditions and to
maintain low property tax rates essential to economic development.
The use of a tax under this section for the purposes described in this
section promotes these purposes.
(c) 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) Sixty-five hundredths percent (0.65%).
(2) The rate necessary to carry out the purposes described in this
section.
(d) Revenue from a tax under this section may be used only for the
following purposes:
(1) To finance, construct, acquire, and equip the county jail and
related buildings and parking facilities, including costs related to
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the demolition of existing buildings, the acquisition of land, and
any other reasonably related costs.
(2) To repay bonds issued or leases entered into for constructing,
acquiring, and equipping the county jail and related buildings and
parking facilities, including costs related to the demolition of
existing buildings, the acquisition of land, and any other
reasonably related costs.
(3) To operate and maintain the facilities described in
subdivision (1).
(e) 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 (d)(1)
are completed.
(2) The date on which the last of any bonds issued (including any
refunding bonds) or leases described in subsection (d)(2) are fully
paid.
The term of the bonds issued (including any refunding bonds) or a
lease entered into under subsection (d)(2) may not exceed twenty-five
(25) years.
SECTION 85. IC 6-3.6-9-15, AS AMENDED BY P.L.239-2023,
SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 15. (a) If the budget agency determines that
the balance in a county trust account exceeds fifteen percent (15%) (or
the percentage set forth in subsection (g), if applicable) of the
certified distributions to be made to the county in the determination
year, the budget agency shall make a supplemental distribution to the
county from the county's trust account. The budget agency shall use the
trust account balance as of December 31 of the year that precedes the
determination year by two (2) years (referred to as the "trust account
balance year" in this section).
(b) A supplemental distribution described in subsection (a) must be:
(1) made at the same time as the determinations are provided to
the county auditor under subsection (d)(3); and
(2) allocated in the same manner as certified distributions for the
purposes described in this article.
(c) The amount of a supplemental distribution described in
subsection (a) is equal to the amount by which:
(1) the balance in the county trust account; minus
(2) the amount of any supplemental or special distribution that has
not yet been accounted for in the last known balance of the
county's trust account;
exceeds fifteen percent (15%) (or the percentage set forth in
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subsection (g), if applicable) of the certified distributions to be made
to the county in the determination year.
(d) For a county that qualifies for a supplemental distribution under
this section in a year, the following apply:
(1) Before February 15, the budget agency shall update the
information described in section 9 of this chapter to include the
excess account balances to be distributed under this section.
(2) Before May 2, the budget agency shall provide the amount of
the supplemental distribution for the county to the department of
local government finance and to the county auditor.
(3) The department of local government finance shall determine
for the county and each taxing unit within the county:
(A) the amount and allocation of the supplemental distribution
attributable to the taxes that were imposed as of December 31
of the trust account balance year, including any specific
distributions for that year; and
(B) the amount of the allocation for each of the purposes set
forth in this article, using the allocation percentages in effect
in the trust account balance year.
The department of local government finance shall provide these
determinations to the county auditor before May 16 of the
determination year.
(4) Before June 1, the county auditor shall distribute to each
taxing unit the amount of the supplemental distribution that is
allocated to the taxing unit under subdivision (3). However, for a
county with a former tax to provide for a levy freeze under
IC 6-3.6-11-1, the supplemental distribution shall first be
distributed as determined in any resolution adopted under
IC 6-3.6-11-1(d).
For determinations before 2019, the tax rates in effect under and the
allocation methods specified in the former income tax laws shall be
used for the determinations under subdivision (3).
(e) For any part of a supplemental distribution attributable to
property tax credits under a former income tax or IC 6-3.6-5, the
adopting body for the county may allocate the supplemental
distribution to property tax credits for not more than the three (3) years
after the year the supplemental distribution is received.
(f) Any income earned on money held in a trust account established
for a county under this chapter shall be deposited in that trust account.
(g) This subsection applies only to counties that contain at least
four (4) municipalities (cities or towns) each with a population
greater than forty thousand (40,000), as determined by the most
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recent federal decennial census, in which at least one (1) of those
municipalities meets the definition of a qualifying municipality
under IC 6-1.1-18.5-31(d). The following percentages apply for
purposes of the determinations under subsections (a) and (c):
(1) For the determination year beginning after December 31,
2025, and ending before January 1, 2027, twelve and
five-tenths percent (12.5%).
(2) For the determination year beginning after December 31,
2026, and ending before January 1, 2028, ten percent (10%).
(3) For a determination year beginning after December 31,
2027, and ending before January 1, 2029, seven and
five-tenths percent (7.5%).
(4) For the determination year beginning after December 31,
2028, and ending before January 1, 2030, five percent (5%).
(5) For the determination year beginning after December 31,
2029, and ending before January 1, 2031, two and one-half
percent (2.5%).
(6) For the determination year beginning after December 31,
2030, one percent (1%).
SECTION 86. IC 6-3.6-9-17.6 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 17.6. (a) Notwithstanding any
other provision, funds from the state general fund shall not be used
to make up a shortfall in the:
(1) reserve account; or
(2) certified distribution.
(b) If a county reserve account runs out of funds for making a
certified distribution, funds may not be transferred from the state
general fund to the reserve account.
SECTION 87. IC 6-6-5-5, AS AMENDED BY SEA 1-2025,
SECTION 186, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE 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, IC 6-1.1-12-14, or IC 6-1.1-12-16
(before their 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
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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 88. IC 6-6-5-5.2, AS AMENDED BY SEA 1-2025,
SECTION 187, 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
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
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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. (before its
expiration).
(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,
IC 6-1.1-12-14, or IC 6-1.1-12-16 (before their 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
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, IC 6-1.1-12-14, or IC 6-1.1-12-16
(before their its expiration).
SECTION 89. IC 6-6-6.5-13, AS AMENDED BY SEA 1-2025,
SECTION 188, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2025 (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:
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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 or IC 6-1.1-12-14 (before their expiration) is entitled to
a credit against the tax imposed on the person's aircraft under this
chapter. The credit equals the amount of the property tax deduction to
which the person is entitled under IC 6-1.1-12-13 and IC 6-1.1-12-14
(before their expiration) 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.
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SECTION 90. IC 6-8.1-9.5-10, AS AMENDED BY P.L.236-2023,
SECTION 92, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 10. (a) The department of state revenue may
charge a debtor a fee of ten percent (10%) of any debts collected under
this chapter as a collection fee for the department's services, not
including any local collection assistance fees charged under subsection
(b).
(b) This subsection applies to a debt collected for a claimant agency
that is a political subdivision described in section 1(1)(B) of this
chapter. A local collection assistance fee not to exceed twenty dollars
($20) twenty-five dollars ($25) shall be imposed on each debt
submitted by the claimant agency and collected through a set off under
this chapter. The board of the nonprofit organization that operates the
clearinghouse registered under section 3.5 of this chapter shall
determine the amount of the fee by resolution. Notwithstanding any law
concerning delinquent accounts, charges, fees, loans, taxes, or other
indebtedness, the local collection assistance fee shall be added to the
amount due the claimant agency when the collection is made, not
including any fee charged by the department of state revenue under
subsection (a). A fee collected under this subsection shall be
distributed by the department to:
(1) the nonprofit entity with which the department has entered
into a contract under section 3.5(b) of this chapter; or
(2) at the direction of the nonprofit entity, the nonprofit entity's
account held by the investment pool.
SECTION 91. IC 6-8.1-10-2.1, AS AMENDED BY P.L.137-2022,
SECTION 88, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 2.1. (a) Except as provided in IC 6-3-4-12(k)
and IC 6-3-4-13(l), a person that:
(1) fails to file a return for any of the listed taxes;
(2) fails to pay the full amount of tax shown on the person's return
on or before the due date for the return or payment;
(3) incurs, upon examination by the department, a deficiency that
is due to negligence;
(4) fails to timely remit any tax held in trust for the state;
(5) fails to file a return in the electronic manner required by the
department if such return is required to be filed electronically; or
(6) is required to make a payment by electronic funds transfer (as
defined in IC 4-8.1-2-7), overnight courier, personal delivery, or
any other electronic means and the payment is not received by the
department by the due date in such manner and in funds
acceptable to the department;
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is subject to a penalty.
(b) Except as provided in subsection (g), the penalty described in
subsection (a) is ten percent (10%) of:
(1) the full amount of the tax due if the person failed to file the
return or, in the case of a return required to be filed electronically,
the return is not filed in the electronic manner required by the
department;
(2) the amount of the tax not paid, if the person filed the return
but failed to pay the full amount of the tax shown on the return;
(3) the amount of the tax held in trust that is not timely remitted;
(4) the amount of deficiency as finally determined by the
department; or
(5) the amount of tax due if a person failed to make payment
required to be made by electronic funds transfer, overnight
courier, personal delivery, or any other electronic means by the
due date in such manner.
(c) For purposes of this section, the filing of a substantially blank or
unsigned return does not constitute a return.
(d) If a person subject to the penalty imposed under this section can
show that the failure to file a return, pay the full amount of tax shown
on the person's return, timely remit tax held in trust, or pay the
deficiency determined by the department was due to reasonable cause
and not due to willful neglect, the department shall waive the penalty.
(e) A person who wishes to avoid the penalty imposed under this
section must make an affirmative showing of all facts alleged as a
reasonable cause for the person's failure to file the return, pay the
amount of tax shown on the person's return, pay the deficiency, or
timely remit tax held in trust, in a written statement containing a
declaration that the statement is made under penalty of perjury. The
statement must be filed with the return or payment within the time
prescribed for protesting departmental assessments. A taxpayer may
also avoid the penalty imposed under this section by obtaining a ruling
from the department before the end of a particular tax period on the
amount of tax due for that tax period.
(f) The department shall adopt rules under IC 4-22-2 to prescribe the
circumstances that constitute reasonable cause and negligence for
purposes of this section.
(g) A person who fails to file a return for a listed tax that shows no
tax liability for a taxable year, other than an information return (as
defined in section 6 of this chapter), on or before the due date of the
return shall pay a penalty of ten dollars ($10) for each day that the
return is past due, up to a maximum of two hundred fifty dollars
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($250).
(h) A:
(1) corporation which otherwise qualifies under IC 6-3-2-2.8(2);
(2) partnership; or
(3) trust;
that fails to withhold and pay any amount of tax required to be withheld
under IC 6-3-4-12, IC 6-3-4-13, or IC 6-3-4-15 shall pay a penalty
equal to twenty percent (20%) of the amount of tax required to be
withheld under IC 6-3-4-12, IC 6-3-4-13, or IC 6-3-4-15. This penalty
shall be in addition to any penalty imposed by section 6 of this chapter.
(i) Subsections (a) through (c) do not apply to a motor carrier fuel
tax return.
(j) If a pass through entity (as defined in IC 6-3-1-35) fails to
include all nonresident partners, nonresident shareholders, or
nonresident beneficiaries in a composite return as required by
IC 6-3-4-12(i), IC 6-3-4-13(j), or IC 6-3-4-15(h), a penalty of five
hundred dollars ($500) per pass through entity is imposed on the pass
through entity.
(k) If a person subject to the penalty imposed under this section
provides the department with documentation showing that the person
is or has been subject to incarceration for a period of a least one
hundred eighty (180) days, the department shall waive any penalty
under this section and interest that accrues during the time the person
was incarcerated, but not to an extent greater than the penalty or
interest relief to which a person would otherwise have been entitled
under the federal Servicemembers Civil Relief Act (50 U.S.C.
3901-4043), if the person was in military service. Nothing in this
subsection shall preclude the department from issuing a proposed
assessment, demand notice, jeopardy proposed assessment, jeopardy
demand notice, or warrant otherwise permitted by law.
(l) Beginning after December 31, 2024, reasonable cause under
this section for failure to file a timely and complete form IT-65
partnership return will be presumed if the partnership (or any of
its partners) is able to show that all of the following conditions have
been met:
(1) The partnership had no more than ten (10) partners for
the taxable year. (A husband and wife filing a joint return
count as one (1) partner.)
(2) Each partner during the tax year was a natural person
(other than a nonresident alien), or the estate of a natural
person.
(3) Each partner's proportionate share of any partnership
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item is the same as the partner's proportionate share of any
other partnership item.
(4) The partnership did not elect to be subject to the rules for
federal consolidated audit proceedings under Sections 6221
through 6234 of the Internal Revenue Code.
(5) All partners reported their distributive share of
partnership items on their timely filed income tax returns.
SECTION 92. IC 6-8.1-10-6, AS AMENDED BY P.L.234-2019,
SECTION 38, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 6. (a) As used in this section, "information
return" means the following when a statute or rule requires the
following to be filed with the department:
(1) Schedule K-1 of form IT-20S, IT-41, or IT-65.
(2) Any form, statement, or schedule required to be filed with the
department with respect to an amount from which tax is required
to be deducted and withheld under IC 6 or from which tax would
be required to be deducted and withheld but for an exemption
under IC 6.
(3) Any form, statement, or schedule required to be filed with the
Internal Revenue Service under 26 C.F.R. 301.6721-1(g) (1993).
The term does not include form IT-20FIT, IT-20S, IT-20SC, IT-41, or
IT-65.
(b) If a person fails to file an information return required by the
department, or fails to electronically file an information return that is
required by the department to be filed in an electronic format, a penalty
of ten dollars ($10) for:
(1) each failure to file a timely return; or
(2) each failure to electronically file a timely return required by
the department to be in an electronic format;
not to exceed twenty-five thousand dollars ($25,000) in any one (1)
calendar year, is imposed.
(c) For purposes of this section, the filing of a substantially blank or
unsigned return does not constitute a return.
(d) Beginning after December 31, 2024, a person that has been
granted penalty relief under section 2.1(l) of this chapter for failure
to file a timely and complete form IT-65 partnership return shall
not be subject to a penalty under this section for failure to file the
information return Schedule K-1 of form IT-65 for which penalty
relief was granted.
SECTION 93. IC 6-9-2.5-7, AS AMENDED BY P.L.168-2005,
SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 7. (a) The county treasurer shall establish a
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convention and visitor promotion fund.
(b) The county treasurer shall deposit in the convention and visitor
promotion fund the amount of money received under section 6 of this
chapter as follows:
(1) Before January 1, 2026, the county treasurer shall deposit
in the convention and visitor promotion fund the amount of
money received under section 6 of this chapter that is
generated by a two and one-half percent (2.5%) rate.
(2) After December 31, 2025, the county treasurer shall
deposit in the convention and visitor promotion fund the
amount of money received under section 6 of this chapter that
is generated by a three percent (3%) rate.
(c) Money in this fund shall be expended only as provided in this
chapter.
(d) The commission may transfer money in the convention and
visitor 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. Transfers
shall be made quarterly or less frequently under this section.
SECTION 94. IC 6-9-2.5-7.5, AS AMENDED BY P.L.290-2019,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 7.5. (a) The county treasurer shall establish a
tourism capital improvement fund.
(b) The county treasurer shall deposit money in the tourism capital
improvement fund as follows:
(1) Before January 1, 2026, the county treasurer shall deposit in
the tourism capital improvement fund the amount of money
received under section 6 of this chapter that is generated by a
three and one-half percent (3.5%) rate.
(2) After December 31, 2025, and before January 1, 2029, the
county treasurer shall deposit in the tourism capital improvement
fund the amount of money received under section 6 of this chapter
that is generated by a four and one-half percent (4.5%) three
percent (3%) rate.
(3) After December 31, 2028, the county treasurer shall
deposit in the tourism capital improvement fund the amount
of money received under section 6 of this chapter that is
generated by a four percent (4%) rate.
(c) The commission may transfer money in the tourism capital
improvement fund to:
(1) the county government, a city government, or a separate body
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corporate and politic in a county described in section 1 of this
chapter; or
(2) any Indiana nonprofit corporation;
for the purpose of making capital improvements in the county that
promote conventions, tourism, or recreation. The commission may
transfer money under this section only after approving the transfer.
Transfers shall be made quarterly or less frequently under this section.
SECTION 95. IC 6-9-2.5-7.7, AS AMENDED BY P.L.290-2019,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 7.7. (a) As used in this section, "fund" refers to the
convention center operating, capital improvement, and financial
incentive fund established under subsection (b).
(b) The county treasurer shall establish a convention center
operating, capital improvement, and financial incentive fund.
(c) Before January 1, 2026, 2029, the county treasurer shall deposit
in the fund the amount of money received under section 6 of this
chapter that is generated by a two percent (2%) rate.
(d) After December 31, 2025, 2028, the county treasurer shall
deposit in the fund the amount of money received under section 6 of
this chapter that is generated by a one percent (1%) rate.
(e) Money in the fund may be expended only for the following:
(1) Operating expenses of a convention center located in the
county.
(2) Capital improvements to a convention center located in the
county.
(3) Financial incentives to attract, promote, or encourage new
business conventions, trade shows, or special events held at a
convention center located in the county.
(f) A financial incentive described in subsection (e)(3) may not be
distributed to a new business for at least thirty (30) days after the
conclusion of a convention, trade show, or special event that is held by
the new business at a convention center located in the county.
SECTION 96. IC 6-9-14-6, AS AMENDED BY P.L.9-2024,
SECTION 232, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 6. (a) The county council 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 hotel, motel, inn, conference center, retreat
center, or tourist cabin located in the county. However, the county
council may not levy the tax on a person for engaging in the business
of providing campsites within a state or federal park or forest. The tax
may be imposed at any rate up to and including five that does not
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exceed eight percent (5%). (8%). The tax shall be imposed on the
gross retail income derived from lodging income only and shall be in
addition to the state gross retail tax imposed on those persons by
IC 6-2.5.
(b) 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 pursuant to IC 6-2.5.
(c) All of the provisions of IC 6-2.5 relating to rights, duties,
liabilities, procedures, penalties, definitions, exemptions, and
administration apply 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. Specifically and not in
limitation of the foregoing sentence, the terms "person" and "gross
retail income" shall have the same meaning in this section as they have
in IC 6-2.5. If the tax is paid to the department of state revenue, the
returns 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 or regulation, determine.
(d) If the tax is paid to the department of state revenue, the amounts
received from the tax shall be paid quarterly by the treasurer of state to
the county treasurer upon warrants issued by the state comptroller.
(e) The tax imposed under subsection (a) does not apply to the
renting or furnishing of rooms, lodgings, or accommodations to a
person for a period of thirty (30) days or more.
SECTION 97. IC 6-9-14-9 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2025]: Sec. 9. This chapter expires January 1, 2047.
SECTION 98. IC 6-9-18-3, AS AMENDED BY P.L.136-2024,
SECTION 31, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: 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;
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(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);
(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. or
(4) after June 30, 2023, the rate of eight percent (8%) in Parke
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.
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(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.
SECTION 99. IC 6-9-18-6, AS AMENDED BY P.L.122-2021,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 6. (a) The commission may:
(1) accept and use gifts, grants, and contributions from any public
or private source, under terms and conditions that the commission
considers necessary and desirable;
(2) sue and be sued;
(3) enter into contracts and agreements;
(4) make rules necessary for the conduct of its business and the
accomplishment of its purposes;
(5) receive and approve, alter, or reject requests and proposals for
funding by corporations qualified under subdivision (6);
(6) after its approval of a proposal, transfer money, quarterly or
less frequently, from the fund established under section 4(a) of
this chapter, or from money transferred from that fund to the
commission's treasurer under section 4(b) of this chapter, to any
Indiana not-for-profit corporation to promote and encourage
conventions, visitors, or tourism in the county; and
(7) require financial or other reports from any corporation that
receives funds under this chapter.
(b) This subsection applies only to Boone County. In addition to the
powers of the commission under subsection (a), and subject to adoption
of a resolution by the county fiscal body under section 6.5 of this
chapter, the commission may enter into an agreement under which
amounts deposited in, or to be deposited in, the fund established under
section 4(a) of this chapter are pledged toward the payment of
obligations (including bonds and leases) issued or entered into by any
political subdivision located in the county to finance the construction,
acquisition, enlargement, and equipping of a sports and recreation
facility to promote and encourage conventions, trade shows, tourism,
visitors, or special events within the county.
(c) (b) All expenses of the commission shall be paid from the fund
established under section 4(a) of this chapter or from money transferred
from that fund to the commission's treasurer under section 4(b) of this
chapter. The commission shall annually prepare a budget, taking into
consideration the recommendations made by a corporation qualified
under subsection (a)(6) and submit it to the county fiscal body for its
review and approval. Except for payments made under an agreement
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that is authorized in a resolution adopted by the county fiscal body
under section 6.5 of this chapter, An expenditure may not be made
under this chapter unless it is in accordance with an appropriation
made by the county fiscal body in the manner provided by law.
SECTION 100. IC 6-9-18-6.5 IS REPEALED [EFFECTIVE JULY
1, 2025]. Sec. 6.5. (a) This section applies only to Boone County.
(b) The county fiscal body may adopt a resolution authorizing an
agreement described in section (6)(b) of this chapter that pledges all or
part of the amounts received from the tax imposed under section 3 of
this chapter toward the payment of obligations of a political subdivision
located in the county only after a public hearing:
(1) for which notice has been given in accordance with IC 5-3-1;
and
(2) at which all interested parties are provided the opportunity to
be heard.
Upon adoption of a resolution under this subsection, the county fiscal
body shall publish notice of the adoption of the resolution in
accordance with IC 5-3-1. An action to contest the validity of the
resolution or agreement described in section (6)(b) of this chapter must
be brought not later than thirty (30) days after notice of the adoption of
the resolution.
(c) With respect to obligations to which amounts received from a tax
imposed under section 3 of this chapter have been pledged in an
agreement described in section (6)(b) of this chapter, the general
assembly covenants with the commission and the purchasers or owners
of the obligations that this chapter will not be repealed or amended in
any manner that will adversely affect the collection of the tax imposed
under section 3 of this chapter, or the money deposited in the fund
established under section 4(a) of this chapter, as long as the obligations
are unpaid.
SECTION 101. IC 6-9-27-3, AS AMENDED BY P.L.214-2005,
SECTION 35, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 3. (a) The fiscal body of the municipality may
adopt an ordinance to impose an excise tax, known as the municipal
food and beverage tax, on transactions described in section 4 of this
chapter. The fiscal body of a municipality described in section 1(2)
of this chapter may adopt an ordinance under section 5(b) of this
chapter to increase the tax rate of the municipality's food and
beverage tax.
(b) If a fiscal 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.
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(c) If a fiscal body adopts an ordinance under subsection (a), the
municipal food and beverage tax applies to transactions that occur after
the last day of the month that succeeds the month in which the
ordinance was adopted.
SECTION 102. IC 6-9-27-5, AS AMENDED BY P.L.214-2005,
SECTION 37, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 5. (a) Except as provided in subsection (b), the
municipal food and beverage tax imposed on a food or beverage
transaction described in section 4 of this chapter equals one percent
(1%) of the gross retail income received by the merchant from the
transaction.
(b) This subsection applies to a municipality described in section
1(2) of this chapter. The fiscal body of the municipality may adopt
an ordinance to increase the rate of the municipality's food and
beverage tax to a rate that may not exceed two percent (2%) of the
gross retail income received by a retail merchant from a taxable
transaction. An ordinance adopted under this subsection to
increase the rate of the municipality's food and beverage tax rate
expires January 1, 2047.
(c) For purposes of this chapter, the gross retail income received by
the a retail merchant from a transaction does not include the amount of
tax imposed on the transaction under IC 6-2.5.
SECTION 103. IC 6-9-27-5.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 5.5. (a) This section applies to a
municipality described in section 1(2) of this chapter.
(b) If a fiscal body adopts an ordinance under section 5(b) of
this chapter, the fiscal body shall immediately send a certified copy
of the ordinance to the department of state revenue.
(c) A municipal food and beverage tax rate increase imposed by
an ordinance adopted under section 5(b) of this chapter applies to
transactions that occur after the last day of the month that
succeeds the month in which the ordinance was adopted.
SECTION 104. IC 6-9-29-8 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2025]: Sec. 8. (a) As used in this section, "innkeeper's tax fund"
refers to any fund established pursuant to an innkeeper's tax
chapter of this article regardless of its title.
(b) Each county that imposes an innkeeper's tax may not:
(1) deposit or transfer money in its innkeeper's tax fund into
any other fund; or
(2) deposit or transfer money in any other fund into its
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innkeeper's tax fund.
SECTION 105. IC 6-9-29.5-5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 5. (a) As used in this section,
"food and beverage tax fund" refers to any fund established
pursuant to a food and beverage tax chapter of this article
regardless of its title.
(b) Each political subdivision that imposes a food and beverage
tax may not:
(1) deposit or transfer money in its food and beverage tax
fund into any other fund; or
(2) deposit or transfer money in any other fund into its food
and beverage tax fund.
SECTION 106. IC 6-9-38 IS REPEALED [EFFECTIVE JULY 1,
2025]. (Food and Beverage Taxes in Wayne County).
SECTION 107. IC 6-9-47.5-4, AS ADDED BY P.L.254-2015,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: 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 county; 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 county food and beverage tax does not apply to the
furnishing, preparing, or serving of a food or beverage in the following
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transactions:
(1) 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.
(2) A transaction that occurs at a historic hotel (as defined in
IC 4-33-2-11.1), the riverboat operated under IC 4-33-6.5, and
other properties operated in conjunction with the historic hotel
enterprise located in Orange County, including golf courses.
SECTION 108. IC 6-9-47.5-9, AS ADDED BY P.L.254-2015,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 9. Money in the food and beverage tax receipts
fund must be used by the county 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 the following purposes:
(A) Storm water, sidewalk, street, park, Parks and parking
improvements necessary to support tourism in the county.
(B) Public safety.
(C) The pledge of money under IC 5-1-14-4 for bonds, leases,
or other obligations incurred for a purpose described in clauses
(A) through (B).
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.
SECTION 109. IC 6-9-60 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]:
Chapter 60. LaGrange County Innkeeper's Tax
Sec. 1. (a) This chapter applies to LaGrange County, if the
county had adopted an innkeeper's tax under IC 6-9-18 before July
1, 2025.
(b) The:
(1) convention, visitor, and tourism promotion fund;
(2) convention and visitor commission;
(3) innkeeper's tax rate; and
(4) tax collection procedures;
established under IC 6-9-18 before July 1, 2025, 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, 2025, shall serve a full
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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.
Sec. 2. As used in this chapter:
(1) "executive" and "fiscal body" have the meanings set forth
in IC 36-1-2; and
(2) "gross retail income" and "person" have the meanings set
forth in IC 6-2.5-1.
Sec. 3. (a) The fiscal body of the 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) Subject to section 4 of this chapter, 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.
(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,
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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.
Sec. 4. (a) After June 30, 2025, the county fiscal body may adopt
an ordinance to increase the tax rate imposed under section 3 of
this chapter to a tax rate that exceeds five percent (5%) but does
not exceed eight percent (8%). If the county imposes a tax rate that
exceeds five percent (5%), the portion that exceeds five percent
(5%) terminates January 1, 2047.
(b) If the county fiscal body adopts an ordinance for an increase
under this section:
(1) it shall immediately send a certified copy of the ordinance
to the department of state revenue; and
(2) the increase applies to transactions after the last day of the
month in which the ordinance is adopted, if the county fiscal
body adopts the ordinance on or before the fifteenth day of a
month. If the county fiscal body adopts the ordinance after
the fifteenth day of a month, the tax applies to transactions
after the last day of the month following the month in which
the ordinance is adopted.
Sec. 5. (a) The county treasurer shall establish a convention,
visitor, and tourism promotion fund. The county treasurer shall
deposit in this fund all amounts the county treasurer receives
under this chapter.
(b) The county auditor shall issue a warrant directing the
county treasurer to transfer money from the convention, visitor,
and tourism promotion fund to the treasurer of the commission
established under section 6 of this chapter if the commission
submits a written request for the transfer.
(c) Money in a convention, visitor, and tourism promotion fund,
or money transferred from such a fund under subsection (b), may
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be expended to promote and encourage conventions, visitors, and
tourism within the county. Expenditures may include, but are not
limited to, expenditures for advertising, promotional activities,
trade shows, special events, and recreation.
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. 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
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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.
Sec. 7. (a) The commission may:
(1) accept and use gifts, grants, and contributions from any
public or private source, under terms and conditions that the
commission considers necessary and desirable;
(2) sue and be sued;
(3) enter into contracts and agreements; and
(4) make rules necessary for the conduct of its business and
the accomplishment of its purposes.
(b) All expenses of the commission shall be paid from the fund
established under section 5(a) of this chapter or from money
transferred from that fund to the commission's treasurer under
section 5(b) of this chapter. The commission shall annually prepare
a budget and submit it to the county fiscal body for its review and
approval. An expenditure may not be made under this chapter
unless it is in accordance with an appropriation made by the
county fiscal body in the manner provided by law.
Sec. 8. All money coming into possession of the commission shall
be deposited, held, secured, invested, and paid in accordance with
statutes relating to the handling of public funds. The handling and
expenditure of money coming into possession of the commission is
subject to audit and supervision by the state board of accounts.
Sec. 9. (a) A member of the commission who knowingly:
(1) approves the transfer of money to any person or
corporation not qualified under law for that transfer; or
(2) approves a transfer for a purpose not permitted under
law;
commits a Level 6 felony.
(b) A person who receives a transfer of money under this
chapter and knowingly uses that money for any purpose not
permitted under this chapter commits a Level 6 felony.
Sec. 10. (a) If the county imposes the tax authorized by this
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chapter, the tax terminates on January 1, 2047.
(b) This chapter expires January 1, 2047.
SECTION 110. IC 6-9-61 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]:
Chapter 61. Marion Food and Beverage Tax
Sec. 1. This chapter applies to the city of Marion.
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
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) 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
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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 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
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
a 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) For economic development purposes, including the pledge
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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 city imposes the tax authorized by this chapter,
the tax terminates on January 1, 2047.
(b) This chapter expires January 1, 2047.
SECTION 111. IC 6-9-62 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]:
Chapter 62. Shelbyville Food and Beverage Tax
Sec. 1. This chapter applies to the city of Shelbyville.
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 fiscal body has previously held at least one (1) separate public
hearing in which a 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 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
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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 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
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
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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) Rehabilitation, renovation, repurposing, improvement, or
maintenance of historic property.
(2) Park and recreation purposes, including the purchase of
land for park and recreation purposes.
(3) Economic development purposes.
(4) The pledge of money under IC 5-1-14-4 for bonds, leases,
or other obligations incurred for a purpose described in
subdivisions (1) through (3).
Revenue derived from the imposition of a tax under this chapter
may be treated by the city as additional revenue for the purpose of
fixing its budget for the budget year during which the revenues are
to be distributed to the city.
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, 2047.
(b) This chapter expires January 1, 2047.
SECTION 112. IC 6-9-63 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]:
Chapter 63. New Haven Food and Beverage Tax
Sec. 1. This chapter applies to the city of New Haven.
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
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of the city may adopt an ordinance under this subsection only after
the fiscal body has previously held at least one (1) separate public
hearing in which a 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 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;
(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 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:
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(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 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) Tourism related purposes or facilities, including the
purchase of land for 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).
Revenue derived from the imposition of a tax under this chapter
may be treated by the city as additional revenue for the purpose of
fixing its budget for the budget year during which the revenues are
to be distributed to the city.
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
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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, 2047.
(b) This chapter expires January 1, 2047.
SECTION 113. IC 6-9-64 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]:
Chapter 64. Richmond Food and Beverage Tax
Sec. 1. This chapter applies to the city of Richmond.
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
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
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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 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
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
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be used by the city only for the following purposes:
(1) Parks and recreation, including trails.
(2) Activation of the Whitewater Gorge.
(3) The pledge of money under IC 5-1-14-4 for bonds, leases,
or other obligations incurred for a purpose described in
subdivision (1) or (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, 2047.
(b) This chapter expires January 1, 2047.
SECTION 114. IC 6-9-65 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]:
Chapter 65. Centerville Food and Beverage Tax
Sec. 1. This chapter applies to the town of Centerville.
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
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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) 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 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
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143
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) Community and economic development projects that are
listed in the Wayne County Strategic Plan, excluding
infrastructure.
(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).
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, 2047.
(b) This chapter expires January 1, 2047.
SECTION 115. IC 6-9-66 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]:
Chapter 66. Cambridge City Food and Beverage Tax
Sec. 1. This chapter applies to the town of Cambridge City.
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
HEA 1427 — CC 1
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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) 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 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
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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) Community and economic development projects that are
listed in the Wayne County Strategic Plan, excluding
infrastructure.
(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).
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, 2047.
(b) This chapter expires January 1, 2047.
SECTION 116. IC 6-9-67 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]:
Chapter 67. Hagerstown Food and Beverage Tax
Sec. 1. This chapter applies to the town of Hagerstown.
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146
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) 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
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147
include a container or package used to transport 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) Community and economic development projects that are
listed in the Wayne County Strategic Plan, excluding
infrastructure.
(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).
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
HEA 1427 — CC 1
148
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, 2047.
(b) This chapter expires January 1, 2047.
SECTION 117. IC 6-9-68 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]:
Chapter 68. Fountain City Food and Beverage Tax
Sec. 1. This chapter applies to the town of Fountain City.
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) sold in a heated state or heated by a retail merchant;
HEA 1427 — CC 1
149
(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 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.
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150
Sec. 9. Money in the food and beverage tax receipts fund must
be used by the town only for the following purposes:
(1) Community and economic development projects that are
listed in the Wayne County Strategic Plan, excluding
infrastructure.
(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).
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, 2047.
(b) This chapter expires January 1, 2047.
SECTION 118. IC 6-9-69 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]:
Chapter 69. Greens Fork Food and Beverage Tax
Sec. 1. This chapter applies to the town of Greens Fork.
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.
HEA 1427 — CC 1
151
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) 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 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
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152
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) Community and economic development projects that are
listed in the Wayne County Strategic Plan, excluding
infrastructure.
(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).
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, 2047.
(b) This chapter expires January 1, 2047.
SECTION 119. IC 6-9-70 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]:
Chapter 70. Milton Food and Beverage Tax
Sec. 1. This chapter applies to the town of Milton.
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
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153
(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) 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 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%);
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154
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) Community and economic development projects that are
listed in the Wayne County Strategic Plan, excluding
infrastructure.
(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).
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, 2047.
(b) This chapter expires January 1, 2047.
SECTION 120. IC 6-9-71 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]:
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155
Chapter 71. Dublin Food and Beverage Tax
Sec. 1. This chapter applies to the town of Dublin.
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) 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,
HEA 1427 — CC 1
156
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 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) Community and economic development projects that are
listed in the Wayne County Strategic Plan, excluding
infrastructure.
(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).
Sec. 10. With respect to obligations for which a pledge has been
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157
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, 2047.
(b) This chapter expires January 1, 2047.
SECTION 121. IC 6-9-72 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]:
Chapter 72. Mount Auburn Food and Beverage Tax
Sec. 1. This chapter applies to the town of Mount Auburn.
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:
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(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 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.
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(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) Community and economic development projects that are
listed in the Wayne County Strategic Plan, excluding
infrastructure.
(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).
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, 2047.
(b) This chapter expires January 1, 2047.
SECTION 122. IC 6-9-73 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]:
Chapter 73. Madison Food and Beverage Tax
Sec. 1. This chapter applies to the city of Madison.
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 fiscal body has previously held at least one (1) separate public
hearing in which a 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 later of the following:
(1) The day specified in the ordinance.
(2) The last day of the month that succeeds the month in
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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 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
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
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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).
Revenue derived from the imposition of a tax under this chapter
may be treated by the city as additional revenue for the purpose of
fixing its budget for the budget year during which the revenues are
to be distributed to the city.
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, 2047.
(b) This chapter expires January 1, 2047.
SECTION 123. IC 6-9-74 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]:
Chapter 74. Boone County Innkeeper's Tax
Sec. 1. (a) This chapter applies to Boone County, if the county
had adopted an innkeeper's tax under IC 6-9-18 before July 1,
2025.
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(b) The:
(1) convention, visitor, and tourism promotion fund;
(2) convention and visitor commission;
(3) innkeeper's tax rate; and
(4) tax collection procedures;
established under IC 6-9-18 before July 1, 2025, 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, 2025, 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.
Sec. 2. As used in this chapter:
(1) "executive" and "fiscal body" have the meanings set forth
in IC 36-1-2; and
(2) "gross retail income" and "person" have the meanings set
forth in IC 6-2.5-1.
Sec. 3. (a) The fiscal body of the 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) Subject to section 4 of this chapter, 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
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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.
Sec. 4. (a) After June 30, 2025, the county fiscal body may adopt
an ordinance to increase the tax rate imposed under section 3 of
this chapter to a tax rate that exceeds five percent (5%) but does
not exceed eight percent (8%). If the county imposes a tax rate that
exceeds five percent (5%), the portion that exceeds five percent
(5%) terminates January 1, 2047.
(b) If the county fiscal body adopts an ordinance for an increase
under this section:
(1) it shall immediately send a certified copy of the ordinance
to the department of state revenue; and
(2) the increase applies to transactions after the last day of the
month in which the ordinance is adopted, if the county fiscal
body adopts the ordinance on or before the fifteenth day of a
month. If the county fiscal body adopts the ordinance after
the fifteenth day of a month, the tax applies to transactions
after the last day of the month following the month in which
the ordinance is adopted.
Sec. 5. (a) The county treasurer shall establish a convention,
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visitor, and tourism promotion fund. The county treasurer shall
deposit in this fund all amounts the county treasurer receives
under section 3 of this chapter that are attributable to a rate that
does not exceed eight percent (8%).
(b) The county auditor shall issue a warrant directing the
county treasurer to transfer money from the convention, visitor,
and tourism promotion 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 fund,
or money transferred from such a fund under subsection (b), may
be expended only to promote and encourage conventions, visitors,
and tourism within the county. Expenditures under this subsection
may include expenditures for advertising, promotional activities,
trade shows, special events, and recreation.
(d) If before July 1, 2025, the county:
(1) issued a bond with a pledge of revenues from the tax
imposed under IC 6-9-18-3; or
(2) pledged all or part of the amounts received from the tax
imposed under IC 6-9-18-3 in accordance with a resolution
adopted under IC 6-9-18-6.5 (before its repeal) to the payment
of obligations (including bonds and leases) of a political
subdivision located in the county;
the county shall continue to expend money from the fund for that
purpose until any bonds, leases, or other obligations are paid.
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. 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)
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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 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.
Sec. 7. (a) The commission may:
(1) accept and use gifts, grants, and contributions from any
public or private source, under terms and conditions that the
commission considers necessary and desirable;
(2) sue and be sued;
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(3) enter into contracts and agreements; and
(4) make rules necessary for the conduct of its business and
the accomplishment of its purposes.
(b) In addition to the powers of the commission under
subsection (a), and subject to adoption of a resolution by the county
fiscal body under section 8 of this chapter, the commission may
enter into an agreement under which amounts deposited in, or to
be deposited in, the fund established under section 5(a) of this
chapter are pledged toward the payment of obligations (including
bonds and leases) issued or entered into by any political subdivision
located in the county to finance the construction, acquisition,
enlargement, and equipping of a sports and recreation facility to
promote and encourage conventions, trade shows, tourism, visitors,
or special events within the county.
(c) All expenses of the commission shall be paid from the fund
established under section 5 of this chapter or from money
transferred from that fund to the commission's treasurer under
section 5(b) of this chapter. The commission shall annually prepare
a budget and submit it to the county fiscal body for its review and
approval. Except for payments made under an agreement that is
authorized in a resolution adopted by the county fiscal body under
section 8 of this chapter, an expenditure may not be made under
this chapter unless it is in accordance with an appropriation made
by the county fiscal body in the manner provided by law.
Sec. 8. (a) The county fiscal body may adopt a resolution
authorizing an agreement described in section 7(b) of this chapter
that pledges all or part of the amounts received from the tax
imposed under section 3 of this chapter toward the payment of
obligations of a political subdivision located in the county only
after a public hearing:
(1) for which notice has been given in accordance with
IC 5-3-1; and
(2) at which all interested parties are provided the
opportunity to be heard.
Upon adoption of a resolution under this subsection, the county
fiscal body shall publish notice of the adoption of the resolution in
accordance with IC 5-3-1. An action to contest the validity of the
resolution or agreement described in section 7(b) of this chapter
must be brought not later than thirty (30) days after notice of the
adoption of the resolution.
(b) With respect to obligations to which amounts received from
a tax imposed under section 3 of this chapter have been pledged in
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an agreement described in section 7(b) of this chapter, the general
assembly covenants with the commission and the purchasers or
owners of the obligations that this chapter will not be repealed or
amended in any manner that will adversely affect the collection of
the tax imposed under section 3 of this chapter, or the money
deposited in the fund established under section 5 of this chapter, as
long as the obligations are unpaid.
Sec. 9. All money coming into possession of the commission shall
be deposited, held, secured, invested, and paid in accordance with
statutes relating to the handling of public funds. The handling and
expenditure of money coming into possession of the commission is
subject to audit and supervision by the state board of accounts.
Sec. 10. (a) A member of the commission who knowingly:
(1) approves the transfer of money to any person or
corporation not qualified under law for that transfer; or
(2) approves a transfer for a purpose not permitted under
law;
commits a Level 6 felony.
(b) A person who receives a transfer of money under this
chapter and knowingly uses that money for any purpose not
permitted under this chapter commits a Level 6 felony.
Sec. 11. (a) If the county imposes the tax authorized by this
chapter, the tax terminates on January 1, 2047.
(b) This chapter expires January 1, 2047.
SECTION 124. IC 6-9-75 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]:
Chapter 75. Parke County Innkeeper's Tax
Sec. 1. (a) This chapter applies to Parke County, if the county
had adopted an innkeeper's tax under IC 6-9-18 before July 1,
2025.
(b) The:
(1) convention, visitor, and tourism promotion fund;
(2) convention and visitor commission;
(3) innkeeper's tax rate; and
(4) tax collection procedures;
established under IC 6-9-18 before July 1, 2025, 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, 2025, shall serve a full
term of office. If a vacancy occurs, the appointing authority shall
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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.
Sec. 2. As used in this chapter:
(1) "executive" and "fiscal body" have the meanings set forth
in IC 36-1-2; and
(2) "gross retail income" and "person" have the meanings set
forth in IC 6-2.5-1.
Sec. 3. (a) The fiscal body of the 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.
Sec. 4. (a) 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.
(b) 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.
(c) 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
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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.
(d) 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.
Sec. 5. (a) The county treasurer shall establish a convention,
visitor, and tourism promotion fund. The county treasurer shall
deposit in this fund all amounts the county treasurer receives
under this chapter.
(b) The county auditor shall issue a warrant directing the
county treasurer to transfer money from the convention, visitor,
and tourism promotion fund to the treasurer of the commission
established under section 6 of this chapter if the commission
submits a written request for the transfer.
(c) Money in a convention, visitor, and tourism promotion fund,
or money transferred from such a fund under subsection (b), may
be expended to:
(1) promote and encourage conventions, visitors, and tourism
within the county; and
(2) pay for public safety related to tourism.
Expenditures may include, but are not limited to, expenditures for
advertising, promotional activities, trade shows, special events,
recreation, and public safety related to tourism.
(d) If before July 1, 2025, the county issued a bond with a pledge
of revenues from the tax imposed under IC 6-9-18-3, the county
shall continue to expend money from the fund for that purpose
until the bond is paid.
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. Each of the members must be:
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(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.
Sec. 7. (a) The commission may:
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(1) accept and use gifts, grants, and contributions from any
public or private source, under terms and conditions that the
commission considers necessary and desirable;
(2) sue and be sued;
(3) enter into contracts and agreements; and
(4) make rules necessary for the conduct of its business and
the accomplishment of its purposes.
(b) All expenses of the commission shall be paid from the fund
established under section 5(a) of this chapter or from money
transferred from that fund to the commission's treasurer under
section 5(b) of this chapter. The commission shall annually prepare
a budget and submit it to the county fiscal body for its review and
approval. An expenditure may not be made under this chapter
unless it is in accordance with an appropriation made by the
county fiscal body in the manner provided by law.
Sec. 8. All money coming into possession of the commission shall
be deposited, held, secured, invested, and paid in accordance with
statutes relating to the handling of public funds. The handling and
expenditure of money coming into possession of the commission is
subject to audit and supervision by the state board of accounts.
Sec. 9. (a) A member of the commission who knowingly:
(1) approves the transfer of money to any person or
corporation not qualified under law for that transfer; or
(2) approves a transfer for a purpose not permitted under
law;
commits a Level 6 felony.
(b) A person who receives a transfer of money under this
chapter and knowingly uses that money for any purpose not
permitted under this chapter commits a Level 6 felony.
Sec. 10. (a) If the county imposes the tax authorized by this
chapter, the tax terminates on January 1, 2047.
(b) This chapter expires January 1, 2047.
SECTION 125. IC 6-9-76 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]:
Chapter 76. Switzerland County Innkeeper's Tax
Sec. 1. (a) This chapter applies to Switzerland County, if the
county had adopted an innkeeper's tax under IC 6-9-18 before July
1, 2025.
(b) The:
(1) convention, visitor, and tourism promotion fund;
(2) convention and visitor commission;
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(3) innkeeper's tax rate; and
(4) tax collection procedures;
established under IC 6-9-18 before July 1, 2025, 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, 2025, 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.
Sec. 2. As used in this chapter:
(1) "executive" and "fiscal body" have the meanings set forth
in IC 36-1-2; and
(2) "gross retail income" and "person" have the meanings set
forth in IC 6-2.5-1.
Sec. 3. (a) The fiscal body of the 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) Subject to section 4 of this chapter, 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.
(d) The county fiscal body may adopt an ordinance to require
that the tax shall be paid monthly to the county treasurer. If such
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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.
Sec. 4. (a) After June 30, 2025, the county fiscal body may adopt
an ordinance to increase the tax rate imposed under section 3 of
this chapter to a tax rate that exceeds five percent (5%) but does
not exceed eight percent (8%). If the county imposes a tax rate that
exceeds five percent (5%), the portion that exceeds five percent
(5%) terminates January 1, 2047.
(b) If the county fiscal body adopts an ordinance for an increase
under this section:
(1) it shall immediately send a certified copy of the ordinance
to the department of state revenue; and
(2) the increase applies to transactions after the last day of the
month in which the ordinance is adopted, if the county fiscal
body adopts the ordinance on or before the fifteenth day of a
month. If the county fiscal body adopts the ordinance after
the fifteenth day of a month, the tax applies to transactions
after the last day of the month following the month in which
the ordinance is adopted.
Sec. 5. (a) The county treasurer shall establish a convention,
visitor, and tourism promotion fund. The county treasurer shall
deposit in this fund all amounts the county treasurer receives
under section 3 of this chapter that are attributable to a rate that
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does not exceed five percent (5%).
(b) The county auditor shall issue a warrant directing the
county treasurer to transfer money from the convention, visitor,
and tourism promotion fund to the treasurer of the commission
established under section 7 of this chapter if the commission
submits a written request for the transfer.
(c) Money in a convention, visitor, and tourism promotion fund,
or money transferred from such a fund under subsection (b), may
be expended to promote and encourage conventions, visitors, and
tourism within the county. Expenditures may include, but are not
limited to, expenditures for advertising, promotional activities,
trade shows, special events, and recreation.
(d) If before July 1, 2025, the county issued a bond with a pledge
of revenues from the tax imposed under IC 6-9-18-3, the county
shall continue to expend money from the fund for that purpose
until the bond is paid.
Sec. 6. (a) If the county fiscal body adopts an ordinance to
increase the tax rate to a rate that exceeds five percent (5%), the
county treasurer shall establish a tourism capital fund. The county
treasurer shall deposit in the tourism capital fund the amount of
money received under section 3 of this chapter attributable to a tax
rate that exceeds five percent (5%).
(b) The county auditor shall issue a warrant directing the
county treasurer to transfer money from the tourism capital fund
to the commission's treasurer if the commission submits a written
request for the transfer.
(c) Money deposited in the tourism capital fund shall be
transferred or expended only as provided in this section and may
be used as follows:
(1) To fund a riverfront park and festival grounds.
(2) Economic development and 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. 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. Each of the members must be:
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(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.
Sec. 8. (a) The commission may:
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(1) accept and use gifts, grants, and contributions from any
public or private source, under terms and conditions that the
commission considers necessary and desirable;
(2) sue and be sued;
(3) enter into contracts and agreements; and
(4) make rules necessary for the conduct of its business and
the accomplishment of its purposes.
(b) All expenses of the commission shall be paid from the fund
established under section 5(a) of this chapter or from money
transferred from that fund to the commission's treasurer under
section 5(b) of this chapter. The commission shall annually prepare
a budget and submit it to the county fiscal body for its review and
approval. An expenditure may not be made under this chapter
unless it is in accordance with an appropriation made by the
county fiscal body in the manner provided by law.
Sec. 9. All money coming into possession of the commission shall
be deposited, held, secured, invested, and paid in accordance with
statutes relating to the handling of public funds. The handling and
expenditure of money coming into possession of the commission is
subject to audit and supervision by the state board of accounts.
Sec. 10. (a) A member of the commission who knowingly:
(1) approves the transfer of money to any person or
corporation not qualified under law for that transfer; or
(2) approves a transfer for a purpose not permitted under
law;
commits a Level 6 felony.
(b) A person who receives a transfer of money under this
chapter and knowingly uses that money for any purpose not
permitted under this chapter commits a Level 6 felony.
Sec. 11. (a) If the county imposes the tax authorized by this
chapter, the tax terminates on January 1, 2047.
(b) This chapter expires January 1, 2047.
SECTION 126. IC 6-9-77 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]:
Chapter 77. Ellettsville Food and Beverage Tax
Sec. 1. This chapter applies to the town of Ellettsville.
Sec. 2. The definitions in IC 6-9-12-1 and IC 36-1-2 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
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body of the town may adopt an ordinance under this subsection
only after the fiscal body has previously 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 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;
(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) 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 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:
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(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 and IC 6-9-41.
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 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 deposited in the town food and beverage tax
receipts fund may be used only for:
(1) transit related purposes;
(2) tourism and infrastructure related purposes; and
(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).
Revenue derived from the imposition of a tax under this chapter
may be treated by the town as additional revenue for the purpose
of fixing its budget for the budget year during which the revenues
are to be distributed to the town.
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.
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Sec. 11. (a) If the town imposes the tax authorized by this
chapter, the tax terminates on July 1, 2047.
(b) This chapter expires July 1, 2047.
SECTION 127. IC 8-1-34-24, AS AMENDED BY P.L.6-2012,
SECTION 64, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 24. (a) Subject to subsection (e), (f), not later than
forty-five (45) days after the end of each calendar quarter, the holder
shall pay to each unit included in the holder's service area under a
certificate issued under this chapter a franchise fee equal to:
(1) the amount of gross revenue received from providing video
service in the unit during the most recent calendar quarter, as
determined under section 23 of this chapter; multiplied by
(2) except as provided in subsection (c) or (d), whichever
applies, a percentage equal to one (1) of the following:
(A) If a local franchise has never been in effect in the unit
before July 1, 2006, five percent (5%).
(B) If no local franchise is in effect in the unit on July 1, 2006,
but one (1) or more local franchises have been in effect in the
unit before July 1, 2006, the percentage of gross revenue paid
by the holder of the most recent local franchise in effect in the
unit, unless the unit elects to impose a different percentage,
which may not exceed five percent (5%).
(C) If there is one (1) local franchise in effect in the unit on
July 1, 2006, the percentage of gross revenue paid by the
holder of that local franchise as a franchise fee to the unit,
unless the unit elects to impose a different percentage, which
may not exceed five percent (5%). Upon the expiration of a
local franchise described in this clause, the percentage shall be
determined by the unit but may not exceed five percent (5%).
(D) If there is more than one (1) local franchise in effect with
respect to the unit on July 1, 2006, a percentage determined by
the unit, which may not exceed the greater of:
(i) five percent (5%); or
(ii) the percentage paid by a holder of any local franchise in
effect in the unit on July 1, 2006.
(b) If the holder provides video service to an unincorporated area in
Indiana, as described in section 23(e) of this chapter, the holder shall:
(1) calculate the franchise fee with respect to the unincorporated
area in accordance with subsection (a); and
(2) remit the franchise fee to the county in which the
unincorporated area is located.
If an unincorporated area served by the provider is located in one (1)
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or more contiguous counties, the provider shall remit part of the
franchise fee calculated under subdivision (1) to each county having
territory in the unincorporated area served. The part of the franchise fee
remitted to a county must bear the same proportion to the total
franchise fee for the area, as calculated under subdivision (1), that the
number of subscribers in the county bears to the total number of
subscribers in the unincorporated area served.
(c) In the case of a franchise issued before January 1, 2026, the
percentage applied under subsection (a)(2) to the holder's gross
revenue for calendar years beginning on or after January 1, 2026,
shall be the percentage that applied under subsection (a)(2) on
December 31, 2025, less one percent (1%). However, the
percentage applied to the gross revenue of a holder subject to this
subsection may not be reduced to an amount that is less than one
percent (1%).
(d) In the case of a franchise that is initially issued by the
commission after December 31, 2025, the percentage applied under
subsection (a)(2) to the gross revenue of a holder subject to this
subsection may not exceed four percent (4%).
(c) (e) With each payment of a franchise fee to a unit under this
section, the holder shall include a statement explaining the basis for the
calculation of the franchise fee. A unit may review the books and
records of:
(1) the holder; or
(2) an affiliate of the holder, if appropriate;
to the extent necessary to ensure the holder's compliance with section
23 of this chapter in calculating the gross revenue upon which the
remitted franchise fee is based. Each party shall bear the party's own
costs of an examination under this subsection. If the holder and the unit
cannot agree on the amount of gross revenue on which the franchise fee
should be based, either party may petition the commission to determine
the amount of gross revenue on which the franchise fee should be
based. A determination of the commission under this subsection is
final, subject to the right of direct appeal by either party.
(d) (f) A franchise fee owed by a holder to a unit under this section
may be passed through to, and collected from, the holder's subscribers
in the unit. To the extent allowed under 47 U.S.C. 542(c), the holder
may identify as a separate line item on each regular bill issued to a
subscriber:
(1) the amount of the total bill assessed as a franchise fee under
this section; and
(2) the identity of the unit to which the franchise fee is paid.
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(e) (g) A holder that elects under section 21(b)(1) of this chapter to
continue providing video service under a local franchise is not required
to pay the franchise fee prescribed under this section, but shall pay any
franchise fee imposed under the terms of the local franchise.
SECTION 128. IC 12-15-1.3-18.7 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 18.7. (a) Before September 1,
2025, the office of the secretary shall apply to the United States
Department of Health and Human Services for an amendment to
each home and community based services Medicaid waiver to,
when determining eligibility for an individual and the individual's
spouse who have both applied for a home and community based
services Medicaid waiver, use an asset limit threshold that equals
the asset limit for a single individual multiplied by two (2).
(b) The office of the secretary shall implement the changes in
determining eligibility for a home and community based services
Medicaid waiver specified in subsection (a) beginning on the date
on which the United States Department of Health and Human
Services approves the request for changes by the office of the
secretary under this section.
SECTION 129. IC 14-27-6-40, AS AMENDED BY P.L.236-2023,
SECTION 127, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 40. The provisions of IC 5-1 and
IC 6-1.1-20 relating to the following apply to proceedings under this
chapter:
(1) The filing of a petition requesting the issuance of bonds and
giving notice of the petition.
(2) The giving of notice of determination to issue bonds.
(3) The giving of notice of hearing on the appropriation of the
proceeds of bonds and the right of taxpayers to appeal and be
heard on the proposed appropriation.
(4) The approval of the appropriation by the department of local
government finance.
(5) The right of:
(A) taxpayers and voters to remonstrate against the issuance of
bonds in the case of a proposed bond issue described by
IC 6-1.1-20-3.1(a); or
(B) voters to vote on the issuance of bonds in the case of a
proposed bond issue described by IC 6-1.1-20-3.5(a).
(6) The sale of bonds at:
(A) a public sale for not less than the par value; or
(B) alternatively, a negotiated sale. after June 30, 2018, and
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before July 1, 2025.
SECTION 130. IC 16-46-10-3, AS AMENDED BY HEA
1001-2025, SECTION 155, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 3. (a) Funding provided a local
board of health under section 2.2 or 2.3 of this chapter may be used by
the local board to provide any of the following services:
(1) Core public health services.
(2) Any statutorily required actions for a local health department.
(3) Evidence based programs to prevent or reduce the prevalence
of health issues or improve the health and behavioral health of
Indiana residents as outlined in the plan described in
IC 16-30-3-2.
(b) Money granted a local board of health from the local public
health fund may not be used for any purpose other than for the services
listed in this section.
(c) A county may not use more than ten percent (10%) of the funds
received under section 2.2 or 2.3 of this chapter during a fiscal year for
capital expenditures, including:
(1) the purchase, construction, or renovation of buildings or other
structures;
(2) land acquisition; and
(3) the purchase of vehicles and other transportation equipment.
(d) Funds used for capital expenditures under subsection (c) must
be included on the annual financial report required under section 2.2(f)
or 2.3(c) of this chapter and posted on the local health department's
website.
(e) Before funds may be used to hire or contract for the provision or
administration of core public health services, the local health
department shall post the position or contract to the public for at least
thirty (30) days.
(f) Funds may only be used for Indiana residents who are legal
citizens of lawfully present in the United States.
SECTION 131. IC 20-24-7-6, AS AMENDED BY SEA 1-2025,
SECTION 203, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 6. With the approval of a
majority of the members of the governing body, a school
corporation may distribute a proportionate share of the school
corporation's operations fund to a charter school. A charter school
may elect to distribute a proportionate share of the charter school's
operations fund to the school corporation in whose district the charter
school is located.
SECTION 132. IC 20-24-8-5, AS AMENDED BY P.L.5-2024,
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SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 5. The following statutes and rules and guidelines
adopted under the following statutes apply to a charter school:
(1) IC 5-11-1-9 (required audits by the state board of accounts).
(2) IC 5-14-3.7 (access to financial data for local schools).
(2) (3) IC 20-39-1-1 (unified accounting system).
(3) (4) IC 20-35 (special education).
(4) (5) IC 20-26-5-10 (criminal history).
(5) (6) IC 20-26-5-6 (subject to laws requiring regulation by state
agencies).
(6) (7) IC 20-28-10-12 (nondiscrimination for teacher marital
status).
(7) (8) IC 20-28-10-14 (teacher freedom of association).
(8) (9) IC 20-28-10-17 (school counselor immunity).
(9) (10) For conversion charter schools only if the conversion
charter school elects to collectively bargain under
IC 20-24-6-3(b), IC 20-28-6, IC 20-28-7.5, IC 20-28-8,
IC 20-28-9, and IC 20-28-10.
(10) (11) IC 20-33-2 (compulsory school attendance).
(11) (12) IC 20-33-8-19, IC 20-33-8-21, and IC 20-33-8-22
(student due process and judicial review).
(12) (13) IC 20-33-8-16 (firearms and deadly weapons).
(13) (14) IC 20-34-3 (health and safety measures).
(14) (15) IC 20-33-9 (reporting of student violations of law).
(15) (16) IC 20-30-3-2 and IC 20-30-3-4 (patriotic
commemorative observances).
(16) (17) IC 20-31-3, IC 20-32-4, IC 20-32-5 (for a school year
ending before July 1, 2018), IC 20-32-5.1 (for a school year
beginning after June 30, 2018), IC 20-32-8, and IC 20-32-8.5, as
provided in IC 20-32-8.5-2 (academic standards, accreditation,
assessment, and remediation).
(17) (18) IC 20-33-7 (parental access to education records).
(18) (19) IC 20-31 (accountability for school performance and
improvement).
(19) (20) IC 20-30-5-19 (personal financial responsibility
instruction).
(20) (21) IC 20-26-5-37.3, before its expiration (career and
technical education reporting).
(21) (22) IC 20-35.5 (dyslexia screening and intervention).
(22) IC 22-2-18, before its expiration on June 30, 2021
(limitations on employment of minors).
(23) IC 20-26-12-1 (curricular material purchase and provision;
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public school students).
(24) IC 20-26-12-2 (curricular material purchase and rental).
SECTION 133. IC 20-46-1-23 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 23. Notwithstanding any
other provision of this chapter or any other law to the contrary,
including any amendments made to this chapter and IC 3-10-9-3 in
the 2025 regular session of the general assembly, the governing
body of a school corporation that adopts a resolution to place a
referendum on the ballot under section 8 of this chapter on or
before June 30, 2025, is eligible to place the referendum question
on the ballot in an election held in the fall of calendar year 2025.
SECTION 134. IC 20-48-1-4, AS AMENDED BY P.L.236-2023,
SECTION 157, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 4. (a) Bonds issued by a school
corporation shall be sold:
(1) at a public sale; or
(2) alternatively, at a negotiated sale. after June 30, 2018, and
before July 1, 2025.
(b) If the bonds are sold at a public sale, the bonds must be sold at:
(1) not less than par value;
(2) a public sale as provided by IC 5-1-11; and
(3) any rate or rates of interest determined by the bidding.
(c) This subsection does not apply to bonds for which a school
corporation:
(1) after June 30, 2008, makes a preliminary determination as
described in IC 6-1.1-20-3.1 or IC 6-1.1-20-3.5 or a decision as
described in IC 6-1.1-20-5; or
(2) in the case of bonds not subject to IC 6-1.1-20-3.1,
IC 6-1.1-20-3.5, or IC 6-1.1-20-5, adopts a resolution or ordinance
authorizing the bonds after June 30, 2008.
If the net interest cost exceeds eight percent (8%) per year, the bonds
must not be issued until the issuance is approved by the department of
local government finance.
SECTION 135. IC 35-52-6-85 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 85. IC 6-9-60-9 defines a crime
concerning innkeeper's taxes.
SECTION 136. IC 35-52-6-85.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 85.5. IC 6-9-74-10 defines a crime
concerning innkeeper's taxes.
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SECTION 137. IC 35-52-6-85.6 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 85.6. IC 6-9-75-9 defines a crime
concerning innkeeper's taxes.
SECTION 138. IC 35-52-6-85.7 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 85.7. IC 6-9-76-10 defines a crime
concerning innkeeper's taxes.
SECTION 139. IC 36-2-2-4, AS AMENDED BY P.L.201-2023,
SECTION 265, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 4. (a) This subsection does not
apply to the following counties:
(1) A county having a population of more than four hundred
thousand (400,000) four hundred fifty thousand (450,000) and
less than seven hundred thousand (700,000).
(2) A county having a population of more than one hundred
eighty-five thousand (185,000) and less than three hundred
thousand (300,000).
The executive shall divide the county into three (3) districts that are
composed of contiguous territory and are reasonably compact. The
district boundaries drawn by the executive must not cross precinct
boundary lines and must divide townships only when a division is
clearly necessary to accomplish redistricting under this section. If
necessary, the county auditor shall call a special meeting of the
executive to establish or revise districts.
(b) This subsection applies to a county having a population of more
than four hundred thousand (400,000) four hundred fifty thousand
(450,000) and less than seven hundred thousand (700,000). A county
redistricting commission shall divide the county into three (3)
single-member districts that comply with subsection (d). The
commission is composed of:
(1) the members of the Indiana election commission;
(2) two (2) members of the senate selected by the president pro
tempore, one (1) from each political party; and
(3) two (2) members of the house of representatives selected by
the speaker, one (1) from each political party.
The legislative members of the commission have no vote and may act
only in an advisory capacity. A majority vote of the voting members is
required for the commission to take action. The commission may meet
as frequently as necessary to perform its duty under this subsection.
The commission's members serve without additional compensation
above that provided for them as members of the Indiana election
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commission, the senate, or the house of representatives.
(c) This subsection applies to a county having a population of more
than one hundred eighty-five thousand (185,000) and less than three
hundred thousand (300,000) that opts in to the system of county
government described in subsection (d), sections 4.7(c) and 5(d)(2) of
this chapter, IC 36-2-3-2(b), IC 36-2-3-4(c), and IC 36-2-3.5-1(2) by
passing a resolution by a majority vote of its executive body not later
than September 1, 2023. In the event the executive body of a county
described in this subsection does not opt in by September 1, 2023, the
county shall be governed by the general provisions of this chapter. The
executive shall divide the county into three (3) single-member districts
that comply with subsection (d).
(d) Single-member districts established under subsection (b) or (c)
must:
(1) be compact, subject only to natural boundary lines (such as
railroads, major highways, rivers, creeks, parks, and major
industrial complexes);
(2) contain, as nearly as is possible, equal population; and
(3) not cross precinct lines.
(e) Except as provided by subsection (f), a division under subsection
(a), (b), or (c) shall be made only at times permitted under IC 3-5-10.
(f) If the county executive or county redistricting commission
determines that a division under subsection (e) is not required, the
county executive or county redistricting commission shall adopt an
ordinance recertifying that the districts as drawn comply with this
section.
(g) Each time there is a division under subsection (e) or a
recertification under subsection (f), the county executive or county
redistricting commission shall file with the circuit court clerk of the
county, not later than thirty (30) days after the division or
recertification occurs, a map of the district boundaries:
(1) adopted under subsection (e); or
(2) recertified under subsection (f).
(h) The limitations set forth in this section are part of the ordinance,
but do not have to be specifically set forth in the ordinance. The
ordinance must be construed, if possible, to comply with this chapter.
If a provision of the ordinance or an application of the ordinance
violates this chapter, the invalidity does not affect the other provisions
or applications of the ordinance that can be given effect without the
invalid provision or application. The provisions of the ordinance are
severable.
(i) IC 3-5-10 applies to a plan established under this section.
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SECTION 140. IC 36-2-2-5, AS AMENDED BY P.L.201-2023,
SECTION 267, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 5. (a) To be eligible for election to
the executive, a person must meet the qualifications prescribed by
IC 3-8-1-21.
(b) A member of the executive must reside within:
(1) the county as provided in Article 6, Section 6 of the
Constitution of the State of Indiana; and
(2) the district from which the member was elected.
(c) If the person does not remain a resident of the county and district
after taking office, the person forfeits the office. The county fiscal body
shall declare the office vacant whenever a member of the executive
forfeits office under this subsection.
(d) In a county having a population of:
(1) more than four hundred thousand (400,000) four hundred
fifty thousand (450,000) and less than seven hundred thousand
(700,000); or
(2) more than one hundred eighty-five thousand (185,000) and
less than three hundred thousand (300,000) that opts in to the
system of county government as described in section 4(c) of this
chapter;
one (1) member of the executive shall be elected by the voters of each
of the three (3) single-member districts established under section 4(b)
or 4(c) of this chapter. In other counties, all three (3) members of the
executive shall be elected by the voters of the whole county.
SECTION 141. IC 36-2-3.5-1, AS AMENDED BY P.L.201-2023,
SECTION 270, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 1. This chapter applies to the
following counties:
(1) A county having a population of more than four hundred
thousand (400,000) four hundred fifty thousand (450,000) and
less than seven hundred thousand (700,000).
(2) A county having a population of more than one hundred
eighty-five thousand (185,000) and less than three hundred
thousand (300,000) that opts in to the system of county
government as described in IC 36-2-2-4(c).
(3) Any other county not having a consolidated city, if both the
county executive and the county fiscal body adopt identical
ordinances providing for the county to be governed by this
chapter beginning on a specified effective date.
SECTION 142. IC 36-2-6-18, AS AMENDED BY P.L.244-2017,
SECTION 125, IS AMENDED TO READ AS FOLLOWS
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[EFFECTIVE JULY 1, 2025]: Sec. 18. (a) The county fiscal body may,
by ordinance:
(1) make loans for the purpose of procuring money to be used in
the exercise of county powers and for the payment of county debts
other than current running expenses, and, subject to IC 5-1-11.5
and IC 5-11-1-4(c), issue bonds or other county obligations to
refund those loans;
(2) make temporary loans to meet current running expenses, in
anticipation of and not in excess of county revenues for the
current fiscal year, which shall be evidenced by tax anticipation
warrants of the county; and
(3) make loans and issue notes under subsection (d).
(b) An ordinance authorizing the issuance of bonds under this
section must state the purpose for which the bonds are issued and may
provide that the bonds:
(1) are or are not negotiable;
(2) bear interest at any rate;
(3) run not longer than twenty (20) years; and
(4) mature by installments payable annually or otherwise.
(c) An ordinance authorizing the issuance of tax anticipation
warrants under this section must:
(1) state the total amount of the issue;
(2) state the denomination of the warrants;
(3) state the time and place payable;
(4) state the rate of interest;
(5) state the funds and revenues in anticipation of which the
warrants are issued and out of which they are payable; and
(6) appropriate and pledge a sufficient amount of those revenues
to the punctual payment of the warrants.
The warrants are exempt from taxation for all purposes.
(d) The county fiscal body may, by ordinance, make loans of money
for not more than five (5) ten (10) years and issue notes for the purpose
of refunding those loans. The loans may be made only for the purpose
of procuring money to be used in the exercise of the powers of the
county, and the total amount of outstanding loans under this subsection
may not exceed five percent (5%) of the county's total tax levy in the
current year (excluding amounts levied to pay debt service and lease
rentals). Loans under this subsection shall be made in the same manner
as loans made under subsection (a)(1), except that:
(1) the ordinance authorizing the loans must pledge to their
payment a sufficient amount of tax revenues over the ensuing five
(5) ten (10) years to provide for refunding the loans;
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(2) the loans must be evidenced by notes of the county in terms
designating the nature of the consideration, the time and place
payable, and the revenues out of which they will be payable; and
(3) the interest accruing on the notes to the date of maturity may
be added to and included in their face value or be made payable
periodically, as provided in the ordinance.
Notes issued under this subsection are not bonded indebtedness for
purposes of IC 6-1.1-18.5.
(e) If a deficit is incurred for the current running expenses of the
county because the total of county revenues for the fiscal year is less
than the anticipated total, the county fiscal body shall provide for the
deficit in the next county tax levy.
SECTION 143. IC 36-3-5-8, AS AMENDED BY P.L.236-2023,
SECTION 167, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 8. (a) This section applies whenever
a special taxing district of the consolidated city has the power to issue
bonds, notes, or warrants.
(b) Before any bonds, notes, or warrants of a special taxing district
may be issued, the issue must be approved by resolution of the
legislative body of the consolidated city.
(c) Any bonds of a special taxing district must be issued in the
manner prescribed by statute for that district, and the board of the
department having jurisdiction over the district shall:
(1) hold all required hearings;
(2) adopt all necessary resolutions; and
(3) appropriate the proceeds of the bonds;
in that manner. However, the legislative body shall levy each year the
special tax required to pay the principal of and interest on the bonds
and any bank paying charges.
(d) Notwithstanding any other statute, bonds of a special taxing
district may:
(1) be dated;
(2) be issued in any denomination;
(3) except as otherwise provided by IC 5-1-14-10, mature at any
time or times not exceeding fifty (50) years after their date; and
(4) be payable at any bank or banks;
as determined by the board. If the bonds are sold at a public sale, the
interest rate or rates that the bonds will bear must be determined by
bidding, notwithstanding IC 5-1-11-3.
(e) Bonds of a special taxing district are subject to the provisions of
IC 5-1 and IC 6-1.1-20 relating to the following:
(1) The filing of a petition requesting the issuance of bonds and
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giving notice of the petition.
(2) The giving of notice of a hearing on the appropriation of the
proceeds of bonds.
(3) The right of taxpayers to appear and be heard on the proposed
appropriation.
(4) The approval of the appropriation by the department of local
government finance.
(5) The right of:
(A) taxpayers and voters to remonstrate against the issuance of
bonds in the case of a proposed bond issue described by
IC 6-1.1-20-3.1(a); or
(B) voters to vote on the issuance of bonds in the case of a
proposed bond issue described by IC 6-1.1-20-3.5(a).
(6) The sale of bonds at a public sale or at a negotiated sale. after
June 30, 2018, and before July 1, 2025.
(7) The maximum term or repayment period provided by
IC 5-1-14-10.
SECTION 144. IC 36-7-18-31, AS AMENDED BY P.L.236-2023,
SECTION 187, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 31. (a) Issues of bonds, notes, or
warrants of a housing authority must be approved by the fiscal body of
the unit after a public hearing, with notice of the time, place, and
purpose of the hearing given by publication in accordance with
IC 5-3-1. The bonds, notes, or warrants must then be authorized by
resolution of the authority.
(b) After the bonds, notes, or warrants have been approved under
subsection (a), they may be issued in one (1) or more series, with the:
(1) dates;
(2) maturities;
(3) denominations;
(4) form, either coupon or registered;
(5) conversion or registration privileges;
(6) rank or priority;
(7) manner of execution;
(8) medium of payment;
(9) places of payment; and
(10) terms of redemption, with or without premium;
provided by the resolution or its trust indenture or mortgage.
(c) The bonds, notes, or warrants shall be sold at a public sale under
IC 5-1-11, for not less than par value, after notice published in
accordance with IC 5-3-1. However, they may be sold at not less than
par value to the federal government:
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(1) at private sale without any public advertisement; or
(2) alternatively, at a negotiated sale. after July 1, 2018, and
before June 30, 2025.
(d) If any of the commissioners or officers of the housing authority
whose signatures appear on any bonds, notes, or warrants or coupons
cease to be commissioners or officers before the delivery, exchange, or
substitution of the bonds, notes, or warrants, their signatures remain
valid and sufficient for all purposes, as if they had remained in office
until the delivery, exchange, or substitution.
(e) Subject to provision for registration and notwithstanding any
other law, any bonds, notes, or warrants issued under this chapter are
fully negotiable.
(f) In any proceedings involving the validity or enforceability of any
bond, note, or warrant of a housing authority or of its security, if the
instrument states that it has been issued by the authority to aid in
financing a housing project to provide dwelling accommodations for
persons of low income, it shall be conclusively presumed to have been
issued for that purpose and the project shall be conclusively presumed
to have been planned, located, and constructed in accordance with this
chapter.
SECTION 145. IC 36-7-40-6.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 6.5. A person who is:
(1) engaged in the business of renting or furnishing, for
periods of less than thirty (30) days, any lodgings:
(A) in any hotel, motel, inn, tourist camp, tourist cabin, or
any other place in which lodgings are regularly furnished
for a consideration; and
(B) that are located in an economic enhancement district
established under this chapter; and
(2) liable for a special benefits assessment under this chapter
for the property described in subdivision (1);
may charge a fee of not more than one dollar ($1) per night to each
person who rents the lodgings described in subdivision (1) to be
used toward payment of the special benefits assessment.
SECTION 146. IC 36-7.5-6-5, AS ADDED BY P.L.195-2023,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 5. (a) In each state fiscal year beginning after June
30, 2023, the city of Gary shall transfer up to three million dollars
($3,000,000) to the development authority for deposit in the fund.
(b) In each state fiscal year beginning after June 30, 2023, and
ending before July 1, 2025, the development authority shall deposit
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three million dollars ($3,000,000) in the fund from reserve amounts
held by the development authority.
(c) After June 30, 2025, but not later than July 1, 2026, 2027, the
development authority shall be reimbursed for all amounts deposited
under subsection (b) using money in the fund. Budget committee
review is not required for reimbursement under this subsection.
SECTION 147. IC 36-8-28 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]:
Chapter 28. Fire Service Reports
Sec. 1. As used in this chapter, "local unit" means any:
(1) unit as defined in IC 36-1-2-23;
(2) fire protection district established under IC 36-8-11; or
(3) fire protection territory established under IC 36-8-19.
Sec. 2. As used in this chapter, "state fire marshal" means the
state fire marshal appointed under IC 22-14-2-2.
Sec. 3. Any local unit that provides fire service shall make
semiannual fire service reports to the state fire marshal as follows:
(1) For the six (6) month period from July 1 through
December 31 of a year, by January 31 of the following year.
(2) For the six (6) month period from January 1 through June
30 of a year, by July 31 of the year.
Sec. 4. (a) The state fire marshal shall subsequently report:
(1) the data reported by January 31 under section 3(1) of this
chapter to the legislative council by the following March 1;
and
(2) the data reported by July 31 under section 3(2) of this
chapter to the legislative council by the following September
1.
(b) The reports under this section shall be in an electronic
format under IC 5-14-6.
Sec. 5. A fire service report under this chapter shall include data
on the following:
(1) The number of separate fire runs made during the
reporting period. A single fire run requiring multiple vehicles
shall be considered one (1) fire run for purposes of a report.
(2) The number of vehicles that participated in each fire run.
(3) Information on whether a fire run consisted of:
(A) a fire;
(B) a vehicle accident;
(C) the provision of emergency medical services; or
(D) any other type of fire run.
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(4) Information on whether or not a fire was extinguished as
part of the fire run, regardless of whether or not the report
indicates that the fire run consisted of a fire under subdivision
(3).
SECTION 148. IC 36-10-3-24, AS AMENDED BY P.L.236-2023,
SECTION 212, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 24. (a) In order to raise money to
pay for land to be acquired for any of the purposes named in this
chapter, to pay for an improvement authorized by this chapter, or both,
and in anticipation of the special benefit tax to be levied as provided in
this chapter, the board shall cause to be issued, in the name of the unit,
the bonds of the district. The bonds may not exceed in amount the total
cost of all land to be acquired and all improvements described in the
resolution, including all expenses necessarily incurred in connection
with the proceedings, together with a sum sufficient to pay the costs of
supervision and inspection during the period of construction of a work.
The expenses to be covered in the bond issue include all expenses of
every kind actually incurred preliminary to acquiring the land and the
construction of the work, such as the cost of the necessary record,
engineering expenses, publication of notices, preparation of bonds, and
other necessary expenses. If more than one (1) resolution or proceeding
of the board under section 23 of this chapter is confirmed whereby
different parcels of land are to be acquired, or more than one (1)
contract for work is let by the board at approximately the same time,
the cost involved under all of the resolutions and proceedings may be
included in one (1) issue of bonds.
(b) The bonds may be issued in any denomination not less than one
thousand dollars ($1,000) each, in not less than five (5) nor more than
forty (40) annual series. The bonds are payable one (1) series each
year, beginning at a date after the receipt of taxes from a levy made for
that purpose. The bonds are negotiable. The bonds may bear interest at
any rate, payable semiannually. After adopting a resolution ordering
bonds, the board shall certify a copy of the resolution to the unit's fiscal
officer. The fiscal officer shall prepare the bonds, and the unit's
executive shall execute them, attested by the fiscal officer.
(c) The bonds and the interest on them are exempt from taxation as
prescribed by IC 6-8-5-1. Bonds issued under this section are subject
to the provisions of IC 5-1 and IC 6-1.1-20 relating to:
(1) the filing of a petition requesting the issuance of bonds;
(2) the right of:
(A) taxpayers and voters to remonstrate against the issuance of
bonds in the case of a proposed bond issue described by
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IC 6-1.1-20-3.1(a); or
(B) voters to vote on the issuance of bonds in the case of a
proposed bond issue described by IC 6-1.1-20-3.5(a);
(3) the appropriation of the proceeds of the bonds and approval by
the department of local government finance; and
(4) the sale of bonds at:
(A) a public sale for not less than their par value; or
(B) a negotiated sale. after June 30, 2018, and before July 1,
2025.
(d) The board may not have bonds of the district issued under this
section that are payable by special taxation when the total issue for that
purpose, including the bonds already issued or to be issued, exceeds
two percent (2%) of the adjusted value of the taxable property in the
district as determined under IC 36-1-15. All bonds or obligations
issued in violation of this subsection are void. The bonds are not
obligations or indebtedness of the unit, but constitute an indebtedness
of the district as a special taxing district. The bonds and interest are
payable only out of a special tax levied upon all the property of the
district as prescribed by this chapter. The bonds must recite the terms
upon their face, together with the purposes for which they are issued.
SECTION 149. IC 36-10-8-16, AS AMENDED BY P.L.236-2023,
SECTION 213, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 16. (a) A capital improvement may
be financed in whole or in part by the issuance of general obligation
bonds of the county or, if the board was created under IC 18-7-18
(before its repeal on February 24, 1982), also of the city, if the board
determines that the estimated annual net income of the capital
improvement, plus the estimated annual tax revenues to be derived
from any tax revenues made available for this purpose, will not be
sufficient to satisfy and pay the principal of and interest on all bonds
issued under this chapter, including the bonds then proposed to be
issued.
(b) If the board desires to finance a capital improvement in whole
or in part as provided in this section, it shall have prepared a resolution
to be adopted by the county executive authorizing the issuance of
general obligation bonds, or, if the board was created under IC 18-7-18
(before its repeal on February 24, 1982), by the fiscal body of the city
authorizing the issuance of general obligation bonds. The resolution
must set forth an itemization of the funds and assets received by the
board, together with the board's valuation and certification of the cost.
The resolution must state the date or dates on which the principal of the
bonds is payable, the maximum interest rate to be paid, and the other
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terms upon which the bonds shall be issued. The board shall submit the
proposed resolution to the proper officers, together with a certificate to
the effect that the issuance of bonds in accordance with the resolution
will be in compliance with this section. The certificate must also state
the estimated annual net income of the capital improvement to be
financed by the bonds, the estimated annual tax revenues, and the
maximum amount payable in any year as principal and interest on the
bonds issued under this chapter, including the bonds proposed to be
issued, at the maximum interest rate set forth in the resolution. The
bonds issued may mature over a period not exceeding forty (40) years
from the date of issue.
(c) Upon receipt of the resolution and certificate, the proper officers
may adopt them and take all action necessary to issue the bonds in
accordance with the resolution. An action to contest the validity of
bonds issued under this section and sold at a public sale may not be
brought after the fifteenth day following the receipt of bids for the
bonds.
(d) The provisions of all general statutes relating to:
(1) the filing of a petition requesting the issuance of bonds and
giving notice;
(2) the right of:
(A) taxpayers and voters to remonstrate against the issuance of
bonds in the case of a proposed bond issue described by
IC 6-1.1-20-3.1(a); or
(B) voters to vote on the issuance of bonds in the case of a
proposed bond issue described by IC 6-1.1-20-3.5(a);
(3) the giving of notice of the determination to issue bonds;
(4) the giving of notice of a hearing on the appropriation of the
proceeds of bonds;
(5) the right of taxpayers to appear and be heard on the proposed
appropriation;
(6) the approval of the appropriation by the department of local
government finance; and
(7) the sale of bonds at a public sale or at a negotiated sale; after
June 30, 2018, and before July 1, 2025;
apply to the issuance of bonds under this section.
SECTION 150. IC 36-10-9-15, AS AMENDED BY P.L.236-2023,
SECTION 214, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 15. (a) A capital improvement may
be financed in whole or in part by the issuance of general obligation
bonds of the county.
(b) If the board desires to finance a capital improvement in whole
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or in part as provided in this section, it shall have prepared a resolution
to be adopted by the board of commissioners of the county authorizing
the issuance of general obligation bonds. The resolution must state the
date or dates on which the principal of the bonds is payable, the
maximum interest rate to be paid, and the other terms upon which the
bonds shall be issued. The board shall submit the proposed resolution
to the city-county legislative body for approval under IC 36-3-6-9,
together with a certificate to the effect that the issuance of bonds in
accordance with the resolution will be in compliance with this section.
The certificate must also state the estimated annual net income of the
capital improvement to be financed by the bonds, the estimated annual
tax revenues, and the maximum amount payable in any year as
principal and interest on the bonds issued under this chapter, including
the bonds proposed to be issued, at the maximum interest rate set forth
in the resolution. The bonds issued may mature over a period not
exceeding forty (40) years from the date of issue.
(c) If the city-county legislative body approves the issuance of
bonds under IC 36-3-6-9, the board shall submit the resolution to the
executive of the consolidated city, who shall review the resolution. If
the executive approves the resolution, the board shall take all action
necessary to issue the bonds in accordance with the resolution. An
action to contest the validity of bonds issued under this section and sold
at a public sale may not be brought after the fifteenth day following the
receipt of bids for the bonds.
(d) The provisions of all general statutes relating to:
(1) the filing of a petition requesting the issuance of bonds and
giving notice;
(2) the right of:
(A) taxpayers and voters to remonstrate against the issuance of
bonds in the case of a proposed bond issue described by
IC 6-1.1-20-3.1(a); or
(B) voters to vote on the issuance of bonds in the case of a
proposed bond issue described by IC 6-1.1-20-3.5(a);
(3) the giving of notice of the determination to issue bonds;
(4) the giving of notice of a hearing on the appropriation of the
proceeds of bonds;
(5) the right of taxpayers to appear and be heard on the proposed
appropriation;
(6) the approval of the appropriation by the department of local
government finance; and
(7) the sale of bonds at a public sale for not less than par value or
at a negotiated sale; after June 30, 2018, and before July 1, 2025;
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are applicable to the issuance of bonds under this section.
SECTION 151. IC 36-10-10-20, AS AMENDED BY P.L.236-2023,
SECTION 215, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 20. (a) The bonds shall be executed
by the president of the board, and the corporate seal of the authority
shall be affixed and attested by the secretary of the board. The interest
coupons attached to the bonds shall be executed by placing the
facsimile signature of the treasurer on them. The bonds shall be sold by
the board:
(1) at a public sale for not less than the par value; or
(2) alternatively, at a negotiated sale. after June 30, 2018, and
before July 1, 2025.
Notice of sale shall be published in accordance with IC 5-3-1.
(b) If the bonds are sold at a public sale, the board shall award the
bonds to the highest bidder as determined by computing the total
interest on the bonds from the date of issue to the dates of maturity and
deducting the premium bid, if any, unless the board determines that no
acceptable bid has been received. In that case the sale may be
continued from day to day, not to exceed thirty (30) days. A bid may
not be accepted that is lower than the highest bid received at the time
fixed for sale in the bond sale notice.
(c) Any premium received from the sale of the bonds shall be used
solely for the payment of principal and interest on the bonds. The board
may also issue refunding bonds under IC 5-1-5.
SECTION 152. IC 36-10-11-21, AS AMENDED BY P.L.236-2023,
SECTION 216, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 21. (a) The bonds shall be executed
by the president of the board, and the corporate seal of the authority
shall be affixed and attested by the secretary of the board. The interest
coupons attached to the bonds shall be executed by placing the
facsimile signature of the treasurer on them. The bonds shall be sold by
the board:
(1) at public sale for not less than the par value; or
(2) alternatively, at a negotiated sale. after June 30, 2018, and
before July 1, 2025.
Notice of sale shall be published in accordance with IC 5-3-1.
(b) If the bonds are sold at a public sale, the board shall award the
bonds to the highest bidder as determined by computing the total
interest on the bonds from the date of issue to the dates of maturity and
deducting the premium bid, if any. If the bonds are not sold on the date
fixed for the sale, the sale may be continued from day to day until a
satisfactory bid has been received.
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(c) Any premium received from the sale of the bonds shall be used
solely for the payment of principal and interest on the bonds.
(d) Before the preparation of definitive bonds, temporary bonds may
under like restrictions be issued with or without coupons, exchangeable
for definitive bonds upon the issuance of the latter. The total amount
of bonds issued by the authority under this section, when added to any
loan or loans negotiated under section 22 of this chapter, may not
exceed three million dollars ($3,000,000).
SECTION 153. IC 36-10-13-8, AS AMENDED BY P.L.11-2023,
SECTION 134, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 8. (a) This section applies to school
corporations in a county:
(1) containing a consolidated city; or
(2) as of the 2020 federal decennial census, having a population
of more than four hundred thousand (400,000) one hundred
seventy-five thousand (175,000) and less than seven hundred
thousand (700,000).
(b) Subject to subsection (c), the governing body of a school
corporation may annually appropriate sums to be paid to cultural
institutions that are reasonably commensurate with the educational and
cultural contributions made by the institutions to the school corporation
and the school corporation's students.
(c) Before a cultural institution may receive payments under this
section, the president and secretary of the cultural institution must file
with the school corporation an affidavit stating that the cultural
institution meets the following requirements:
(1) The governing board body has adopted a resolution that
entitles a representative of the school corporation to attend and
speak at all meetings of the governing body.
(2) The cultural institution:
(A) admits the public to galleries, museums, and facilities at
reasonable times and allows public use of those facilities free
of charge; or
(B) provides alternative services free of charge to the public
instead of admission to those facilities.
The governing body of the school corporation shall judge whether
the alternative services are conducive to the education or cultural
development of the public.
(3) The cultural institution has a permanent location in the
municipality where the cultural institution conducts the cultural
institution's principal educational or cultural purpose.
(4) The cultural institution has no general taxing authority.
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The affidavit must be filed at least thirty (30) days before a request for
an appropriation under this section.
(d) To provide for a cultural institution under this section, the
governing body of a school corporation may impose a tax of not
more than five-tenths of one cent ($0.005) on each one hundred
dollars ($100) of assessed valuation in the school corporation and
do the following:
(1) The school corporation shall deposit the proceeds of the
tax in a cultural institution fund. The cultural institution fund
shall be separate and distinct from the school corporation's
operation and education funds and may be used only to
provide funds for a cultural institution under this section.
(2) Subject to section 6 of this chapter, the governing body of
a school corporation may annually appropriate money in the
cultural institution fund to be paid in semiannual installments
to a cultural institution having facilities in the county.
(d) (e) A cultural institution that complies with this section may
continue to receive payments under this section as long as the school
corporation appropriates sums for that purpose.
(f) In the case of a school corporation with territory in more
than one (1) county, the governing body of the school corporation
may impose the property tax levy under this section only on real
and personal property in the school corporation's territory that is
located in the county described in subsection (a).
(g) The property tax rate and levy imposed under this chapter:
(1) must be certified by the department of local government
finance under IC 6-1.1-17-16; and
(2) are not considered part of the maximum permissible ad
valorem property tax levy under IC 20-46-8-1 for the school
corporation's operations fund.
SECTION 154. [EFFECTIVE JANUARY 1, 2026] (a)
IC 6-1.1-8-24.5 and IC 6-1.1-10-46, both as amended by this act,
apply to assessment dates after December 31, 2025.
(b) IC 6-1.1-10-51, as added by this act, applies to assessment
dates after December 31, 2025.
(c) This SECTION expires July 1, 2028.
SECTION 155. [EFFECTIVE JULY 1, 2025] (a) The legislative
council is urged to assign to the appropriate interim study
committee the task of studying the effects of the provision
implemented under IC 6-1.1-10-16(r), as added by this act,
regarding various buildings owned by nonprofit entities.
(b) This SECTION expires January 1, 2028.
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SECTION 156. [EFFECTIVE JULY 1, 2025] (a) IC 6-2.5-5-58, as
added by this act, applies only to retail transactions occurring after
June 30, 2025.
(b) Except as provided in subsection (c), a retail transaction is
considered to have occurred after June 30, 2025, if the property
whose transfer constitutes selling at retail is delivered to the
purchaser or to the place of delivery designated by the purchaser
after June 30, 2025.
(c) Notwithstanding the delivery of the property constituting
selling at retail after June 30, 2025, a transaction is considered to
have occurred before July 1, 2025, to the extent that:
(1) the agreement of the parties to the transaction is entered
into before July 1, 2025; and
(2) payment for the property furnished in the transaction is
made before July 1, 2025.
(d) This SECTION expires January 1, 2028.
SECTION 157. [EFFECTIVE JANUARY 1, 2025
(RETROACTIVE)] (a) IC 6-3-2.1-4 and IC 6-3-2.1-5, both as
amended by this act, apply to taxable years beginning after
December 31, 2024.
(b) This SECTION expires January 1, 2027.
SECTION 158. [EFFECTIVE JANUARY 1, 2025
(RETROACTIVE)] (a) IC 6-3.1-40-9.5, IC 6-3.1-40-11, and
IC 6-3.1-40-12, all as added by this act, apply to taxable years
beginning after December 31, 2024.
(b) IC 6-3.1-40-5, IC 6-3.1-40-6, and IC 6-3.1-40-7, all as
amended by this act, apply to taxable years beginning after
December 31, 2024.
(c) IC 6-3.1-40-3 and IC 6-3.1-40-9, both as repealed by this act,
apply to taxable years beginning after December 31, 2024.
(d) This SECTION expires July 1, 2028.
SECTION 159. [EFFECTIVE JULY 1, 2025] (a) IC 36-7-40-6.5,
as added by this act, applies only to transactions occurring after
June 30, 2025.
(b) Except as provided in subsection (c), a transaction is
considered to have occurred after June 30, 2025, if the renting of
the property or payment furnished in the transaction is made after
June 30, 2025.
(c) Notwithstanding subsection (b), a transaction is considered
to have occurred before July 1, 2025, to the extent that:
(1) the agreement of the parties to the transaction is entered
into before July 1, 2025; and
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(2) payment furnished in the transaction is made before July
1, 2025.
(d) This SECTION expires January 1, 2028.
SECTION 160. 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 1427 — CC 1Every fact on this page links to its source, starting with the official bill record.